Document:

EX-4.53

EXHIBIT
4.53

CREDIT AGREEMENT

among

XINHUA FINANCE MEDIA LIMITED

as Borrower,

THE SUBSIDIARIES OF THE BORROWER

FROM TIME TO TIME GUARANTORS HEREUNDER

as Guarantors,

THE LENDERS PARTY HERETO,

and

PATRIARCH PARTNERS AGENCY SERVICES, LLC

as Agent

Dated as of October 21, 2008

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I Defined Terms
	 	 	1	 
	 
	 	 	 	 
	Section 1.1 Definitions
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II Loans
	 	 	22	 
	 
	 	 	 	 
	Section 2.1 Term Loans
	 	 	22	 
	 
	 	 	 	 
	Section 2.2 [Reserved]
	 	 	23	 
	 
	 	 	 	 
	Section 2.3 Borrowing Mechanics
	 	 	23	 
	 
	 	 	 	 
	Section 2.4 Lenders’ Loan Amounts
	 	 	23	 
	 
	 	 	 	 
	Section 2.5 Use of Proceeds
	 	 	23	 
	 
	 	 	 	 
	Section 2.6 Evidence of Debt; Register; Notes
	 	 	24	 
	 
	 	 	 	 
	Section 2.7 Interest on Loans
	 	 	25	 
	 
	 	 	 	 
	Section 2.8 Fees
	 	 	25	 
	 
	 	 	 	 
	Section 2.9 Priority of Payments
	 	 	26	 
	 
	 	 	 	 
	Section 2.10 Repayment
	 	 	26	 
	 
	 	 	 	 
	Section 2.11 Optional Prepayments
	 	 	26	 
	 
	 	 	 	 
	Section 2.12 Mandatory Prepayments
	 	 	27	 
	 
	 	 	 	 
	Section 2.13 Changed Circumstances
	 	 	28	 
	 
	 	 	 	 
	Section 2.14 General Provisions Regarding Payments
	 	 	29	 
	 
	 	 	 	 
	Section 2.15 Ratable Sharing
	 	 	30	 
	 
	 	 	 	 
	Section 2.16 Termination of Commitments
	 	 	30	 
	 
	 	 	 	 
	Section 2.17 Increase in Commitment
	 	 	30	 
	 
	 	 	 	 
	ARTICLE III Conditions Precedent; Conditions Subsequent
	 	 	31	 
	 
	 	 	 	 
	Section 3.1 Conditions Precedent; Closing Date
	 	 	31	 
	 
	 	 	 	 
	Section 3.2 Conditions to Each Borrowing
	 	 	33	 
	 
	 	 	 	 
	Section 3.3 Conditions Subsequent
	 	 	35	 
	 
	 	 	 	 
	ARTICLE IV Representations and Warranties
	 	 	35	 
	 
	 	 	 	 
	Section 4.1 Representations and Warranties of the Credit Parties
	 	 	35	 
	 
	 	 	 	 
	Section 4.2 Representations and Warranties of Lenders
	 	 	48	 
	 
	 	 	 	 
	ARTICLE V Affirmative Covenants
	 	 	50	 
	 
	 	 	 	 
	Section 5.1 Affirmative Covenants
	 	 	50	 
	 
	 	 	 	 
	ARTICLE VI Negative Covenants and Financial Covenants
	 	 	56	 
	 
	 	 	 	 
	Section 6.1 Negative Covenants
	 	 	56	 
	 
	 	 	 	 
	Section 6.2 Financial Covenants
	 	 	61	 

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TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page	 
	ARTICLE VII Increased Costs, Taxes, Indemnification; Set Off; Etc
	 	 	62	 
	 
	 	 	 	 
	Section 7.1 Increased Costs; Capital Adequacy
	 	 	62	 
	 
	 	 	 	 
	Section 7.2 Taxes; Withholding, Etc
	 	 	63	 
	 
	 	 	 	 
	Section 7.3 Indemnification
	 	 	64	 
	 
	 	 	 	 
	Section 7.4 Right of Set Off
	 	 	64	 
	 
	 	 	 	 
	Section 7.5 Funding Breakage
	 	 	65	 
	 
	 	 	 	 
	Section 7.6 Mitigation
	 	 	65	 
	 
	 	 	 	 
	ARTICLE VIII Events of Default
	 	 	65	 
	 
	 	 	 	 
	Section 8.1 Events of Default
	 	 	65	 
	 
	 	 	 	 
	Section 8.2 Remedies
	 	 	68	 
	 
	 	 	 	 
	ARTICLE IX The Agent
	 	 	70	 
	 
	 	 	 	 
	Section 9.1 Appointment of Agent
	 	 	70	 
	 
	 	 	 	 
	Section 9.2 Powers and Duties
	 	 	70	 
	 
	 	 	 	 
	Section 9.3 Delegation of Duties
	 	 	70	 
	 
	 	 	 	 
	Section 9.4 General Immunity
	 	 	70	 
	 
	 	 	 	 
	Section 9.5 Agent Entitled to Act with the Borrower
	 	 	71	 
	 
	 	 	 	 
	Section 9.6 Lenders’ Representations, Warranties and Acknowledgment
	 	 	72	 
	 
	 	 	 	 
	Section 9.7 Right to Indemnity
	 	 	72	 
	 
	 	 	 	 
	Section 9.8 Successor Agent
	 	 	72	 
	 
	 	 	 	 
	Section 9.9 Collateral Documents
	 	 	73	 
	 
	 	 	 	 
	Section 9.10 Notice of Default
	 	 	74	 
	 
	 	 	 	 
	Section 9.11 Delivery of Documents, Notices, Etc
	 	 	74	 
	 
	 	 	 	 
	ARTICLE X Conversion
	 	 	74	 
	 
	 	 	 	 
	Section 10.1 Conversion Privilege
	 	 	74	 
	 
	 	 	 	 
	Section 10.2 Conversion Procedure
	 	 	76	 
	 
	 	 	 	 
	Section 10.3 Conversion Price Adjustments
	 	 	76	 
	 
	 	 	 	 
	Section 10.4 Notice of Conversion Price Adjustments
	 	 	86	 
	 
	 	 	 	 
	Section 10.5 Effect of Reclassification, Consolidation, Merger or Sale on Conversion
Privilege
	 	 	87	 
	 
	 	 	 	 
	Section 10.6 Additional Covenants
	 	 	88	 
	 
	 	 	 	 
	ARTICLE XI Miscellaneous
	 	 	90	 
	 
	 	 	 	 
	Section 11.1 Amendments and Waivers; Release of Collateral
	 	 	90	 

ii

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page	 
	Section 11.2 Notices
	 	 	91	 
	 
	Section 11.3 Expenses
	 	 	92	 
	 
	Section 11.4 Enforceability; Successors and Assigns
	 	 	93	 
	 
	Section 11.5 Lenders’ Obligations Several; Independent Nature of Lenders’ Rights
	 	 	94	 
	 
	Section 11.6 Integration
	 	 	95	 
	 
	Section 11.7 No Waiver Remedies
	 	 	95	 
	 
	Section 11.8 Execution in Counterparts
	 	 	95	 
	 
	Section 11.9 Waiver of Jury
	 	 	95	 
	 
	Section 11.10 Severability
	 	 	95	 
	 
	Section 11.11 Survival
	 	 	96	 
	 
	Section 11.12 Maximum Lawful Interest
	 	 	96	 
	 
	Section 11.13 Interpretation
	 	 	97	 
	 
	Section 11.14 Ambiguities
	 	 	97	 
	 
	Section 11.15 Agent for Service of Process
	 	 	97	 
	 
	Section 11.16 Governing Law
	 	 	97	 
	 
	Section 11.17 Arbitration
	 	 	98	 
	 
	Section 11.18 Jurisdiction
	 	 	98	 
	 
	Section 11.19 Judgment Currency
	 	 	99	 
	 
	Section 11.20 Waiver of Immunities
	 	 	99	 
	 
	Section 11.21 No Short Sales
	 	 	99	 
	 
	Section 11.22 Confidentiality
	 	 	99	 
	 
	Section 11.23 No Advisory or Fiduciary Relationship
	 	 	100	 

	 	 	 
	Exhibit A

	 	[Reserved]
	Exhibit B

	 	Form of Funding Notice
	Exhibit C

	 	Form of Term Note
	Exhibit D

	 	Form of Guaranty
	Exhibit E

	 	Form of Director’s Certificate
	Exhibit F

	 	Form of Closing Date Certificate
	Exhibit G

	 	Form of Joinder
	Exhibit H

	 	Form of Assignment Agreement
	Exhibit I

	 	Form of Opinion
	Exhibit J

	 	Form of Investor and Registration Rights Agreement
	 

	 	 
	SCHEDULE I

	 	Commitments

iii

 

     CREDIT AGREEMENT, dated as of October 21, 2008, among XINHUA FINANCE MEDIA LIMITED, a Cayman
Islands limited company (the “Borrower”), the Subsidiaries of the Borrower that from time
to time become guarantors hereunder (collectively, the “Guarantors”), the persons listed in
Schedule I hereto and other financial institutions and investors from time to time lenders
hereunder (each a “Lender” and, collectively, the “Lenders”), and PATRIARCH
PARTNERS AGENCY SERVICES, LLC, a Delaware limited liability company (“PPAS”), as agent for
the Lenders (in such capacity, the “Agent”).

RECITALS

     WHEREAS, Borrower has purchased and/or invested in certain companies with television
operations in the PRC and desires to purchase and/or invest in certain additional companies with
television operations in the PRC, and has entered into and desires to enter into certain long term
television content license agreements and exclusive television distributions rights agreements with
respect to televisions operations in the PRC;

     WHEREAS, the Borrower has requested and Lenders have agreed to finance the foregoing actions,
but only upon the terms and conditions set forth in this Agreement;

     WHEREAS, each Guarantor is willing to guaranty all of the obligations of the Borrower under
the Credit Documents on the terms and conditions set forth in the Guaranty (as defined herein), and
is willing to secure its guaranty obligations by granting to the Agent, for the benefit of the
Agent and the Lenders, security interests in and liens upon certain of its property; and

     NOW THEREFORE, in consideration of the premises and the mutual covenants and the agreements
herein set forth, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as
follows:

ARTICLE I

Defined Terms

     Section 1.1 Definitions. As used in this Agreement, including, without limitation,
the preamble, recitals, exhibits and schedules hereto, the following terms have the meanings
stated:

“Action” against a Person means an action, suit, litigation, arbitration,
investigation, complaint, contest, hearing, inquiry, inquest, audit, examination or other
proceeding threatened or pending against or affecting such Person or its property, whether
civil, criminal, administrative, investigative or appellate, in law or equity before any
arbitrator or Governmental Body.

“ADRs” means the American Depositary Receipts evidencing the ADSs.

“ADSs” means the American Depositary Shares of the Borrower, each representing two
Borrower Common Shares.

“Affiliate” means, with respect to a specified Person, any other Person that
directly or indirectly, through one or more intermediaries, controls, is controlled by or is
under

 

 

common control with, such Person or any of its Subsidiaries, and without limiting the
generality of the foregoing, includes (i) any Person that directly or indirectly
beneficially owns or holds five percent (5%) or more of any class of equity Security or
other similar interests of such Person or any of its Subsidiaries, (ii) any Person of which
such Person directly or indirectly beneficially owns or holds five percent (5%) or more of
the equity Securities or other similar interests or in which such Person directly or
indirectly beneficially owns or holds five percent (5%) or more of the equity Securities or
other similar interests or (iii) any director or executive officer of such Person. For
purposes of this definition, the term “control” (including with correlative meanings, the
terms “controlled by” or “under common control with”), as used with respect
to any Person, means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of such Person, whether through the ownership
of voting securities, by contract, agreement or otherwise. Notwithstanding the foregoing,
none of the Agent, any Lender or any Affiliate of any Lender shall be deemed to be an
Affiliate of the Parent, the Borrower or any of their Subsidiaries for purposes of the
Credit Documents.

“Affiliate Assignee” means any Affiliate of any Lender or any Related Fund (any two
or more Related Funds being treated as a single Affiliate Assignee for all purposes hereof);
provided, however, that none of the Parent, the Borrower or any of their
Affiliates shall be an Affiliate Assignee.

“Agent” means initially PPAS and thereafter any successor Agent appointed pursuant
to Section 9.8.

“Agent Fee” has the meaning stated in Section 2.8(a).

“Aggregate Amounts Due” has the meaning stated in Section 2.15.

“Agreement” means this Agreement, as it may be amended, restated, supplemented,
increased, extended or otherwise modified from time to time.

“Applicable Margin” means 6%.

“Approved Media Assets” means (i) the investment in the Tianjing Pay TV Channels
through the purchase of Starease Limited, (ii) the investment in ASN Holdings Limited and
the related license agreement regarding All Sports Network, and (iii) the Media Rights
Agreement dated August 15, 2008, between the Borrower and Union des Associations Europeenes
de Football, each as set out in Part II of Annex A of the Disclosure Schedule.

“Articles of Association” means the Amended and Restated Memorandum and Articles of
Association of the Borrower.

“Asset Sale” means a sale, lease or sublease (as lessor or sublessor), sale and
leaseback, assignment, conveyance, transfer or other disposition to, or any exchange of
property with, any Person, in one transaction or a series of transactions, of all or any
part of the businesses of the Borrower or any of its Subsidiaries, assets or properties of
any kind,

2

 

whether real, personal, or mixed and whether tangible or intangible, whether now owned or
hereafter acquired, including, without limitation, the Capital Stock of any Subsidiary of
the Borrower, but excluding (i) the sale or lease of assets in the ordinary course of
business, (ii) disposals of obsolete, worn out or surplus property in the ordinary course of
business, (iii) licenses and sublicenses by the Borrower or any of its Subsidiaries of
software or intellectual property in the ordinary course of business, (iv) any surrender or
waiver of contract rights or settlement, release, recovery on or surrender of contract, tort
or other claims in the ordinary course of business, and (v) the granting of Permitted Liens
and dispositions in connection with Permitted Liens.

“Assignee” means an Affiliate Assignee or an Eligible Assignee.

“Assignment” has the meaning stated in Section 11.4(b).

“Assignment Agreement” has the meaning stated in Section 11.4(b).

“Assignment Fee” has the meaning stated in Section 11.4(b).

“Authorized Officer” means, as applied to any Person, any individual holding the
position of chairman of the board (if an office), chief executive officer, president or one
of its vice presidents (or the equivalent thereof), and such Person’s chief financial
officer or treasurer.

“Authorized Share Failure” has the meaning stated in Section 10.6(b).

“Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy,” as
now and hereafter in effect, or any successor statute.

“Base Rate” means, for any day, a fluctuating rate per annum equal to the “prime
rate” of interest in effect for such day as published in the Wall Street Journal, such rate
to be adjusted by the Agent on the effective date of any change thereafter.

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

“Borrower” has the meaning stated in the Preamble of this Agreement.

“Borrower Common Shares” means Class A common shares of the Borrower, par value
$0.00l per share.

“Borrower Security Agreement” means the Security Agreement dated as of the date
hereof, between the Borrower and the Agent.

“Borrowing” means the making of any Loan.

“Borrowing Date” means the date of a Borrowing.

“Business Day” means a day other than Saturday or Sunday or other day on which
commercial banks in New York City, New York, Charlotte, North Carolina, Hong Kong,

3

 

or Tokyo, Japan, are authorized or required by law or other governmental action to close and
a day on which dealings are carried on for deposits in Dollars by and among banks in the
London interbank market.

“Capital Expenditures” means, for any Person for any period, amounts paid or
Indebtedness incurred by such Person or any of its Subsidiaries in connection with the
purchase or lease by such Person or any of its Subsidiaries of any fixed asset, real
property or improvements that would be treated as capital expenditures and reflected as
additions to property, plant or equipment on the balance sheet of such Person in accordance
with GAAP.

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

“Capital Stock” means any and all shares, interests, participations or other
equivalents (however designated) of capital stock or capital shares of a company or a
corporation, any and all equivalent ownership interests in a Person (other than a
corporation), including, without limitation, partnership interests and membership interests,
and any and all warrants, rights, options or other equity-linked securities or instruments
to purchase or other arrangements or rights to acquire any of the foregoing.

“Cash” means money, currency or a credit balance in any Deposit Account.

“Change of Control” means any one or more of the following events:

     (i) Any individual, corporation, partnership, trust, association, pool, syndicate, or
any other entity or any group of persons acting in concert (other than the Lenders, the
Agent, the Parent or any of their respective Affiliates) shall acquire, take control of
(whether by merger, consolidation, sale or otherwise, in one transaction or in a related
series of transactions) or otherwise beneficially own voting securities of the Borrower (or
any successor entity in a merger or consolidation involving the Borrower) representing more
than thirty-five percent (35%) of the total voting power of all outstanding voting
securities of the Borrower unless the Parent and its Affiliates then beneficially own voting
securities of the Borrower representing a higher percentage of the voting power of all such
outstanding voting securities of the Borrower (or such successor entity) or (ii) any Person
or “group”, other than the Lenders, the Agent, the Parent or any of their respective
Affiliates, shall obtain the ability to Control the Borrower; provided that any
transaction or series of transactions where the Parent and its Subsidiaries retain Control
(whether directly or indirectly) over the Borrower shall be deemed not to be a “Change of
Control” of the Borrower;

     (ii) During any period of two (2) consecutive years, individuals who at the beginning
of such period constitute the directors of the Borrower cease for any reason other than
voluntary resignation, death, disability, retirement or as otherwise provided in the Credit
Documents to constitute at least a majority thereof unless the election, or the nomination
for election by the Borrower’s shareholders, of each new director of the

4

 

Borrower was approved by (A) a vote of at least two thirds (2/3) of the directors of
the Borrower then still in office who were directors of the Borrower at the beginning of any
such period or (B) the Required Lenders;

     (iii) There shall be consummated any sale, lease, exchange, or other transfer (in one
transaction or a series of related transactions) of assets representing all or substantially
all of the assets of the Borrower, Parent or any Guarantor (on a consolidated basis) to a
party which is not controlled by or under common control with the Borrower either before or
after such transaction or series of related transactions;

     (iv) The liquidation or dissolution of the Borrower or any Guarantor or the adoption of
a plan by the equity holders of the Borrower or any Guarantor relating to the dissolution or
liquidation of the Borrower or such Guarantor; or

     (v) Fredy Bush shall cease to be the Chief Executive Officer of the Borrower.

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

“Closing Date” means the date on which all of the conditions set forth in
Section 3.1 are satisfied or otherwise waived by the Lenders and the Agent.

“Closing Date Certificate” has the meaning stated in Section 3.1(e).

“Closing Price” has the meaning stated in Section 10.3(g)(ii).

“Collateral” means the items defined as “Collateral” in each Security Agreement.

“Collateral Documents” means the Security Agreements, the Pledge Agreement, and all
other instruments, documents and agreements delivered by any Credit Party pursuant to this
Agreement or any of the other Credit Documents (including, without limitation, all UCC
financing statements) in order to grant to the Agent, for the benefit of the Lenders, a Lien
on any property of that Credit Party as security for the Obligations.

“Commitment Fee” has the meaning stated in Section 2.8(c).

“Commitment Period” means the period from the date of this Agreement to but
excluding December 31, 2008.

“Commitments” means the Term Loan Commitments.

“Consented Court” has the meaning stated in Section 11.18.

“Consents” means any approval, consent, authorization or order of, notice to or
registration or filing with, or any other action by, any Governmental Body or other Person.

5

 

“Consolidated EBITDA” means, as to any Person, with respect to any period, an amount
equal to: (i) the Consolidated Net Income of such Person and its Subsidiaries for such
period, plus (ii) depreciation and amortization and other non-cash charges including imputed
interest and deferred compensation for such period (to the extent deducted in the
computation of Consolidated Net Income of such Person), all in accordance with GAAP, plus
(iii) Interest Expense for such period (to the extent deducted in the computation of
Consolidated Net Income of such Person), plus (iv) Taxes for such period (to the extent
deducted in the computation of Consolidated Net Income of such Person).

“Consolidated Net Income” means, with respect to any Person for any period, the
aggregate of the net income (loss) of such Person, for such period (excluding to the extent
included therein (i) any extraordinary and/or one time or unusual and non-recurring gains or
any non-cash losses and restructuring and professional expenses with respect to the periods
, such restructuring and professional expenses not to exceed amounts as are reasonably
satisfactory to the Agent and (ii) any non-operating income or gains and any interest
income) after deducting all charges which should be deducted before arriving at the net
income (loss) for such period and, without duplication, after deducting the Taxes for such
period, all as determined in accordance with GAAP. For the purposes of this definition, net
income excludes any gain or non-cash loss, together with any related Taxes for such gain or
non-cash loss, realized upon the sale or other disposition of any assets that are not sold
in the ordinary course of business (including, without limitation, dispositions pursuant to
sale and leaseback transactions) or of any Capital Stock of such Person and any net income
realized or loss incurred as a result of changes in accounting principles or the application
thereof to such Person.

“Contract Rate” has the meaning stated in Section 11.13(a).

“Control” means, with respect to any Person, the possession, directly or indirectly,
of the power to direct or cause the direction of management or policies of such Person or
any of its Subsidiaries (whether through ownership of more than 50% of the voting power of
voting securities of such Person or any of the Subsidiaries, through the power to appoint a
majority of the members of the board of directors or similar governing body of such Person
or any of its Subsidiaries, or through contractual arrangements or otherwise).

“Conversion Amount” has the meaning stated in Section 10.1.

“Conversion Date” has the meaning stated in Section 10.2.

“Conversion Notice” has the meaning stated in Section 10.2.

“Conversion Price” has the meaning stated in Section 10.6.

“Conversion Rate” has the meaning stated in Section 10.1.

“Conversion Securities” has the meaning stated in Section 10.5.

“Convertible Securities” means any securities or other rights to acquire securities
directly or indirectly convertible into or exchangeable for Borrower Common Shares.

6

 

“Convey Companies” means, collectively, Xinhua Finance Media (Convey) Limited, a
British Virgin Islands company, and its Subsidiaries, Convey Advertising (China) Limited, a
Hong Kong company, Convey Advertising Company Limited, a Hong Kong company, Convey Media
Advertising Limited, a Hong Kong company, and Giant Whale Financial Advisory (Shenzhen) Co.
Ltd., a PRC company.

“Credit Document” means any of this Agreement (including the Disclosure Schedule),
the Term Notes (if any), the Collateral Documents, the Guaranty, the Investor and
Registration Rights Agreement, the Subordination Agreement and all other documents,
instruments or agreements executed and delivered by a Credit Party for the benefit of Agent
or any Lender in connection herewith.

“Credit Party” means each Person (other than the Agent or any Lender or any
Affiliate or representative thereof or the Parent) from time to time party to a Credit
Document.

“Current Market Price” has the meaning stated in Section 10.3(g)(i).

“Determination Date” has the meaning stated in Section 10.3(e).

“Default” means a condition or event that, after notice or lapse of time or both,
would constitute an Event of Default.

“Default Rate” means LIBOR plus 8.0% per annum.

“Deposit Account” means a demand, time, savings, passbook or like account with a
bank, savings and loan association, credit union or like organization, other than an account
evidenced by a negotiable certificate of deposit.

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

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

“Disclosure Schedule” means the Credit Parties’ Disclosure Schedule delivered to the
Agent at Closing.

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

“Domestic Subsidiary” means any Subsidiary organized under the laws of the PRC.

“DTC” means The Depository Trust Company or any successor entity or organization.

“Earn-Out Consideration” means any and all sums payable, in cash or stock, by the
Borrower or any of its Affiliates to the former owners or any of their respective Affiliates
of JCBN Hong Kong (f/k/a Profitown Development Limited), JCBN China (f/k/a Profitown
Development Limited), Beijing Mobile Interactive Co., Ltd (f/k/a East Alliance Limited),
Convey Advertising Group, Singshine (Holdings) Hong Kong Limited

7

 

and Hyperlink E-date International Ltd. pursuant to the respective purchase agreements
between the Borrower, such entities and their respective Affiliates or representatives. For
the avoidance of doubt, the Borrower shall provide to the Lender a schedule of all Earn-Out
Consideration payments as soon as commercially practicable after any such payments have been
calculated.

“Eligible Assignee” means (i) any Lender or any Affiliate of any Lender, (ii) any
commercial bank, insurance company, investment or mutual fund or other entity that is an
“accredited investor” (as defined in Regulation D under the Securities Act) and that
extends credit or buys loans as one of its businesses and/or (iii) any other Person approved
by the Agent; provided, however, that none of the Parent, the Borrower or
any of their Affiliates shall be an Eligible Assignee.

“Employee Share Options” means any share options, warrants, awards, restricted
shares or other rights granted pursuant to the Share Option and Share Grant Plan.

“Environmental Laws” means all national, state, regional, provincial, foreign and
local laws (including without limitation common law), statutes, regulations and rules
whether now or hereinafter in effect relating in any way to the environment, the
preservation or reclamation of natural resources, the management, release or threatened
release of any Hazardous Material or health and safety matters.

“Environmental Liability” means any actual, alleged or contingent liability or
obligations of the Borrower, any of its Subsidiaries or any other Credit Party directly or
indirectly resulting from or based on (i) the violations or alleged violations of any
Environmental Law, (ii) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Material, (iii) the exposure to any Hazardous Material, (iv) the
release or threatened release of any Hazardous Material into the environment or (v) any
contract, agreement or other consensual arrangement pursuant to which liability is assumed
or imposed with any of the foregoing.

“Environmental Permits” means all permits, licenses, authorizations, registrations
and other governmental consents required by applicable Environmental Laws for the use,
storage, treatment, transportation, release, emission and disposal of raw materials,
by-products, wastes and other substances used or produced by or otherwise relating to the
operations of the Borrower, any of its Subsidiaries or any other Credit Party.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time, and any successor thereto.

“Event of Default” means each of the conditions or events set forth in Section 8.1.

“Exchange Act” means the United States Securities Exchange Act of 1934, as amended
from time to time, and any successor statute.

“Exempt Issuance” has the meaning stated in Section 10.3(d).

“Expiration Date” has the meaning stated in Section 10.3(f).

8

 

“Expiration Time” has the meaning stated in Section 10.3(f).

“Fair Market Value” means the value that would be paid by a willing buyer to an
unaffiliated willing seller in a transaction not involving distress or necessity of either
party, determined in good faith by the Board (unless otherwise provided in this Agreement).

“FCPA” has the meaning stated in Section 4.1(ee).

“Financial Officer Certification” means, with respect to the financial statements
for which such certification is required, the certification of the chief financial officer
of the Borrower that such financial statements fairly present, in all material respects, the
financial condition of the Borrower and its Subsidiaries on a consolidated basis as at the
dates indicated and the results of their operations and their cash flows for the periods
indicated, subject to the absence of footnotes and changes resulting from audit and normal
year-end adjustments.

“Financials” means, with respect to any Person for any period, the balance sheet of
such Person as at the end of such period, and the related statement of income and expense
and statement of cash flow of such Person for such period, each setting forth in comparative
form the figures for the previous comparable fiscal period, together with the related notes,
if any, thereto, all in reasonable detail and prepared in accordance with GAAP.

“First Anniversary” has the meaning stated in Section 10.1(a).

“Fiscal Quarter” means a fiscal quarter of any Fiscal Year.

“Fiscal Year” means the fiscal year of the Borrower and its Subsidiaries ending on
December 31 of each calendar year.

“Foreign Lender” has the meaning stated in Section 7.2(a).

“Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.

“Fully-Diluted Common Shares” means, as of the time of determination, all issued and
outstanding common shares of the Borrower and all common shares of the Borrower issuable
upon conversion or exercise of any outstanding rights, options, warrants or other securities
convertible into or exercisable for common shares, including, without limitation, the Series
B Preferred Shares.

“Funding Notice” means a notice substantially in the form of Exhibit B.

“GAAP” means generally accepted accounting principles in the United States of
America as in effect from time to time, consistently applied throughout the periods to which
reference is made.

“Governmental Action” has the meaning stated in Section 4.1(g).

9

 

“Governmental Body” means any agency, bureau, commission, court, department,
official, political subdivision, tribunal or other instrumentality of any administrative,
judicial, legislative, executive, regulatory, police or taxing authority of any government,
whether supranational, national, federal, state, regional, provincial, local, domestic or
foreign.

“Group Service Agreement” means the group service agreement, dated as of September
13, 2006, as amended on January 25, 2007, between the Borrower and the Parent.

“Guaranty” means the Guaranty, in the form attached hereto as Exhibit D.

“Guarantor Security Agreement” means the Security Agreement, dated as of the date
hereof, among the Guarantors and the Agent.

“Guarantors” has the meaning stated in the Preamble to this Agreement.

“Hazardous Materials” means any hazardous or toxic substance, waste, contaminant,
pollutant, gas or material, including, without limitation, radioactive materials, oil,
petroleum and petroleum products and constituents thereof, which are regulated under any
Environmental Law, including, without limitation, any substance, waste or material which is
(i) designated a “pollutant”, “hazardous substance”, “extremely hazardous substance” or
“toxic chemical” under any Environmental Law, or (ii) regulated in any way under the
Regulations of any state or country where the Borrower or any of its Subsidiaries conducts
its business or owns any real property or has any leasehold or in which any Relevant
Property is located.

“HK Dollar” and the sign “HK$” mean the lawful money of Hong Kong.

“HKIAC” has the meaning stated in Section 11.17.

“Hong Kong” means the Hong Kong Special Administrative Region of the People’s
Republic of China.

“Increase Effective Date” has the meaning stated in Section 2.17(b).

“Indebtedness” means, with respect to any Person, without duplication, the
following: (i) all indebtedness of such Person for borrowed money, (ii) all obligations of
such Person for the deferred purchase price of property or services other than accounts
payable and accrued liabilities that would be classified as current liabilities under GAAP
which payables and expenses are incurred in respect of property or services purchased in the
ordinary course of business, (iii) all obligations of such Person evidenced by notes, bonds,
debentures or similar borrowing or securities instruments, (iv) all obligations of such
Person created or arising under any conditional sale or other title retention agreement with
respect to property acquired by such Person, (v) all obligations of such Person as lessee
under Capital Leases, (vi) all obligations of such Person in respect of banker’s acceptances
and letters of credit, (vii) all obligations of such Person secured by Liens on the assets
and property of such Person, (viii) all obligations of such Person to purchase, redeem,
retire, defease or otherwise make any payment in respect of any capital stock or

10

 

other ownership or profit interest in such Person or any other Person or any warrants,
rights or options to acquire such capital stock, (ix) all obligations of such Person in
respect of any guaranty by such Person of any obligation of another Person of the type
described in clauses (i) through (viii) of this definition and (x) all obligations of
another Person of the type described in clauses (i) through (ix) secured by a Lien on the
property or assets of such Person (whether or not such Person is otherwise liable for such
obligations of such other Person).

“Indemnified Agent Person” has the meaning stated in Section 9.7.

“Indemnified Persons” has the meaning stated in Section 7.3(a).

“Intellectual Property” means, collectively, all copyrights, all patents and all
trademarks, together with: (i) all inventions, processes, production methods, proprietary
information, know-how and trade secrets; (ii) all licenses or user or other agreements
granted to the Borrower or any of its Subsidiaries with respect to any of the foregoing, in
each case owned or used including the licenses or other agreements with respect to any
Collateral; (iii) all customer lists, identification of suppliers, data, plans, blueprints,
specifications, designs, drawings, recorded knowledge, surveys, engineering reports, test
reports, manuals, materials standards, processing standards, performance standards,
catalogs, computer and automatic machinery software and programs; (iv) all field repair
data, sales data and other information relating to sales or service of products now or
hereafter manufactured; (v) all accounting information and all media in which or on which
any information or knowledge or data or records may be recorded or stored and all computer
programs used for the compilation or printout of such information, knowledge, records or
data, and (vi) all causes of action, claims and warranties, in each case, owned or acquired
by the Borrower or any of its Subsidiaries in respect of any of the items listed above.

“Interest Coverage Ratio” means, for any period, the ratio of (i) (A) Consolidated
EBITDA of the Borrower and its Subsidiaries for such period to (ii) Interest Expense of the
Borrower and its Subsidiaries for such period, as determined in accordance with GAAP.

“Interest Expense” shall mean, for any period, as to any Person, as determined in
accordance with GAAP, the total interest expense of such Person, whether paid or accrued
during such period (including the interest component of Capital Leases for such period, but
excluding the amortization of loan origination or structuring fees), including, without
limitation, discounts in connection with the sale of any accounts and bank fees,
commissions, discounts and other fees and charges owed with respect to letters of credit,
banker’s acceptances or similar instruments.

“Interest Period” means consecutive one-month periods, beginning on the date hereof
and ending on the Maturity Date; provided that:

     (i) the initial Interest Period shall begin on the Closing Date and end on the last day
of October 2008, thereafter, each subsequent Interest Period will begin on the

11

 

day following the last day of the preceding Interest Period (with such last day of such
preceding Interest Period determined with reference to clauses (ii) through (v) below;

     (ii) any Interest Period that would otherwise end on a day that is not a Business Day
shall, subject to the provisions of clause (iv) below, be extended to the next succeeding
Business Day unless such Business Day falls in the next calendar month, in which case such
Interest Period shall end on the immediately preceding Business Day;

     (iii) any Interest Period that begins on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the calendar month at the
end of such Interest Period) shall, subject to clause (iv) below, end on the last Business
Day of a calendar month;

     (iv) any Interest Period that would otherwise end after the Maturity Date shall end on
the Maturity Date; and

     (v) except as otherwise provided under clause (i), (iii) or (iv) above, no Interest
Period shall have a duration of less than one month and if any applicable Interest Period
would be for a shorter period, such Interest Period shall not be available hereunder.

“Internal Control Agreement” means (i) any appointment or indemnification
arrangement or agreement with respect to any Media Asset with a natural Person, who is a
citizen of the PRC, designated by the Parent or the Borrower or any Affiliate or Subsidiary
of the Parent or the Borrower to act as nominee shareholder and legal representative of any
Domestic Subsidiary, and any action, arrangement, declaration, or agreement undertaken by
such Person, or caused to be undertaken by such Person, in connection with the fulfillment
of such role, including, without limitation, the acquisition of any beneficial interest or
the holding of record in the Securities (including Capital Stock) of such Domestic
Subsidiary and the execution, either with the Parent, the Borrower, any Affiliate or
Subsidiary of the Parent or the Borrower or any other third party whether or not affiliated
with the Parent or the Borrower, of any secured promissory note, equity pledge agreement,
equity purchase option agreement, subrogation agreement, declaration of waiver of
pre-emption rights, and declaration of waiver of spousal communal rights or (ii) any
arrangement or agreement (including, without limitation, any consulting or service
arrangements or agreements) pursuant to which the Borrower or any Subsidiary of the Borrower
indirectly receives the economic benefit of revenue generated by any Media Asset.

“Internal Revenue Code” means the Internal Revenue Code of 1986, as amended to the
date hereof and from time to time hereafter, and any successor statute.

“Investment” means (i) any direct or indirect purchase or other acquisition by the
Borrower or any of its Subsidiaries of, or of a beneficial interest in, any of the
Securities (including any Capital Stock) of any other Person, (ii) any direct or indirect
redemption, retirement, purchase or other acquisition for value, by the Borrower or any of
its Subsidiaries from any Person, of any Capital Stock of such Person, and (iii) any direct
or indirect loan, advance (other than advances to employees for moving, entertainment and

12

 

travel expenses, drawing accounts and similar expenditures in the ordinary course of
business) or capital contribution by the Borrower or any of its Subsidiaries to any other
Person, including all indebtedness and accounts receivable from that other Person that are
not current assets or did not arise from sales to that other Person in the ordinary course
of business. The amount of any Investment shall be the original cost of such Investment
plus the cost of all additions thereto, without any adjustments for increases or decreases
in value, or write-ups, write-downs or write-offs with respect to such Investment.

“Investor and Registration Rights Agreement” means the Investor and Registration
Rights Agreement, dated as of the date hereof, among the Borrower, the Parent and the
Lenders, substantially in the form of Exhibit J hereto.

“Joint Venture” means a joint venture, partnership or other similar arrangement,
whether in corporate, partnership or other legal form; provided, in no event shall
any corporate Subsidiary of any Person be considered to be a Joint Venture to which such
Person is a party.

“Judgment Currency” has the meaning stated in Section 11.19.

“Knowledge” means, with respect to the Borrower or any Credit Party as the context
requires, the knowledge of the Borrower’s or such Credit Party’s Authorized Officers, after
reasonable inquiry by such Authorized Officers.

“Leasehold Property” means any leasehold interest of any Credit Party as lessee
under any lease of real property.

“Lender” and “Lenders” have the meanings stated in the Preamble to this
Agreement.

“Leverage Ratio” means, for any period, the ratio of (i) Total Debt of the Borrower
and its Subsidiaries outstanding on the last day of such period, on a consolidated basis, to
(ii) Consolidated EBITDA of the Borrower and its Subsidiaries for such period, as determined
in accordance with GAAP.

“LIBOR” means, as to any Loan for any Interest Period, the rate quoted by Bloomberg
Information Service (or by any successor or substitute for such Service, or any successor to
or substitute for such Service, providing rate quotations comparable to those currently
provided by such Service, as determined by the Agent from time to time for purposes of
providing quotations of interest rates applicable to Dollar deposits in the London interbank
market) at approximately 11:00 a.m., London time, two Business Days before the beginning of
such Interest Period, as the rate for Dollar deposits with a maturity comparable to such
Interest Period. If such rate is not available at such time for any reason, LIBOR as to any
LIBOR Loan for any Interest Period shall be the arithmetic mean (rounded upward, if
necessary, to the next 1/16 of 1%) of the offered quotations of at least two Reference Banks
to the prime banks in the London interbank market for dollar deposits with a maturity
comparable to such Interest Period at approximately 11:00 a.m., London time, two Business
Days before the beginning of such Interest Period. For purposes of this definition,
“Reference Banks” shall mean major banks in the London

13

 

interbank market selected by the Agent. For all purposes hereunder, LIBOR shall never be
below 2.0% per annum.

“LIBOR Loans” means Loans bearing interest at a rate determined by reference to
LIBOR.

“License Agreement” and “License Agreements” have the meanings stated in
Section 4.1(x).

“Lien” means any encumbrance, mortgage, pledge, hypothecation, charge, assignment,
lien, claim, restriction, preference, priority, right or other security interest or
preferential arrangement of any kind or nature (excluding preferred share and equity related
preferences), including, without limitation, those created by, arising under or evidenced by
any conditional sale or other title retention agreement, or any financing lease having
substantially the same economic effect as any of the foregoing.

“Limitation” has the meaning stated in Section 10.1(e).

“Loans” means the Term Loans.

“Loan Payment Amount” means, with respect to each Lender, as of any date of
determination, the sum of (i) all accrued and unpaid interest due under such Lender’s Loans
on such date of determination, plus (ii) the outstanding principal amount of such Lender’s
Loans on such date of determination.

“Loan Shares” has the meaning stated in Section 4.1(a).

“Losses” has the meaning stated in Section 7.3(a).

“Margin Stock” means “margin stock” as defined in Regulation U of the Board of
Governors of the Federal Reserve System as in effect from time to time.

“Material Adverse Effect” means any (i) material adverse effect on the business,
operations, properties, assets or condition (financial or otherwise) of the Borrower and its
Subsidiaries taken as a whole that may affect the ability of any Credit Party to perform its
material obligations under the Credit Documents to which it is a party, (ii) material
impairment of the ability of the Credit Parties to perform their obligations hereunder or
under of any of the other Credit Documents, (iii) material adverse effect on the legality,
validity, binding effect or enforceability of the Credit Documents against the Credit
Parties or (iv) material adverse effect on the rights or remedies available to the Agent or
the Lenders under any Credit Document, excluding any written waivers or releases by the
Agent or any Lender.

“Material Contracts” means, with respect to any Person, each contract listed in
Section 4.1(aa) of the Disclosure Schedule, each contract which is a replacement or a
substitute for any contract listed on such Schedule and each other contract to which such
Person is a party which is material to the business, financial condition, operations,
performance, properties or reasonably foreseeable business prospects of such Person, and in
each case

14

 

which requires in excess of an aggregate of $500,000 per annum in liability, benefit or
payment to or from such Person; provided, however, that Material Contracts
shall include in any event all credit and loan agreements and other financing arrangements
and all license agreements, media rights agreements, distribution agreements, consent
agreements, syndication agreements, simulcast agreements, transmission agreements and other
similar agreements relating to television (including analogue terrestrial, digital
terrestrial, cable, satellite, internet and mobile wireless) operations.

“Maturity Date” means the earlier of (i) October 21, 2012 and (ii) the date that the
Loans shall become due and payable in full hereunder, whether by acceleration or otherwise.

“Maximum Rate” means the highest rate of interest permissible under applicable law.

“Media Assets” means all companies with direct or indirect television (including
analogue terrestrial, digital terrestrial, cable, satellite, internet and mobile wireless)
operations in the PRC, including all assets of such companies and the equity interests in
such companies, and all license agreements, media rights agreements, distribution
agreements, content agreements, program agreements, broadcast arguments, syndication
agreements, simulcast agreements, transmission agreements and other similar agreements with
respect to television (including analogue terrestrial, digital terrestrial, cable,
satellite, internet and mobile wireless) operations in the PRC, including those assets set
forth on Annex A of the Disclosure Schedule.

“Media Companies” means those companies who directly or indirectly own, hold or
otherwise have rights in, to or under Media Assets.

“Member” means the person registered in the Register of Members as the holder of
shares in the Borrower and, when two or more Persons are so registered as joint holders of
shares, means the Person whose name stands first in the Register of Members as one of such
joint holders or all of such Persons, as the context so requires.

“MNPI” has the meaning stated in Section 5.1(q).

“Net Cash Proceeds” means with respect to the issuance or incurrence of any
Indebtedness by an Person or any of its Subsidiaries, or the sale or issuance by any Person
or any of its Subsidiaries of any shares of its Capital Stock, the aggregate amount of cash
received (directly or indirectly) from time to time (whether as initial consideration or
through the payment or disposition of deferred consideration) by or on behalf of such Person
or such Subsidiary in connection therewith, net of underwriting discounts and after
deducting therefrom only (i) reasonable expenses related thereto incurred by such Person or
such Subsidiary in connection therewith, and (ii) transfer taxes paid by such Person or such
Subsidiary in connection therewith; in each case of clauses (i) and (ii) to the extent, but
only to the extent, that the amounts so deducted are (x) actually paid to a Person that,
except in the case of reasonable out-of-pocket expenses, is not an Affiliate of such Person
or any of its Subsidiaries and (y) properly attributable to such transaction or to the asset
that is the subject thereof.

“New Securities” has the meaning stated in Section 10.3(a).

15

 

“Notes” means the Term Notes.

“Notices” has the meaning stated in Section 11.2.

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

“Obligations” means all indebtedness, obligations and liabilities of each Credit
Party from time to time owed to the Agent, the Lenders or any of them or their respective
Affiliates direct or indirect, joint or several, absolute or contingent, matured or
unmatured, liquidated or unliquidated, secured or unsecured, arising by contract, operation
of law or otherwise, arising or incurred under this Agreement or any other Credit Document
or in respect of any of the Loans, the Notes or any other instruments at any time evidencing
any thereof.

“Officers’ Certificate” means a certificate signed on behalf of the Borrower by two
Authorized Officers of the Borrower, one of whom must be the principal executive officer,
the principal financial officer, the treasurer or the principal accounting officer of the
Borrower, stating that, in the opinion of the signers, a brief statement as to the nature
and scope of the examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based; a statement that, in the opinion of such
Person, he or she has made such examination or investigation as is necessary to enable him
to express an informed opinion as to whether or not such covenant or condition has been
satisfied; and a statement as to whether or not, in the opinion of such Person, such
condition or covenant has been satisfied; and all conditions precedent and covenants, if
any, provided for in this Agreement relating to the proposed action have been satisfied.

“Operating Leases” means, as applied to any Person, any lease of any property
(whether real, personal or mixed) by that Person as lessee, other than Capital Leases.

“Opinion of Counsel” means an opinion from legal counsel who is reasonably
acceptable to the Agent to the effect that all conditions precedent and covenants, if any,
provided for in this Agreement relating to the proposed action have been satisfied. The
counsel may be internal or external to the Borrower.

“Optional Prepayment Date” means the optional prepayment date defined in Section
2.11.

“Options” means any securities or other rights to subscribe for or purchase,
directly or indirectly, Borrower Common Shares or Convertible Securities.

“Parent” means Xinhua Finance Limited, a company incorporated in the Cayman Islands.

“Participant” has the meaning stated in Section 11.4(c).

“Participation” has the meaning stated in Section 11.4(c).

“Patriot Act” has the meaning stated in Section 4.1(ee).

16

 

“Payment in Full” means either payment in full in cash of all of the Obligations
(including principal, interest, fees and expenses) relating to the Loans or full conversion
of all of the Loans into Borrower Common Shares.

“Permit” means any permit, license, approval, consent, permission, notice,
franchise, confirmation, endorsement, waiver, certification, registration, qualification,
clearance or other authorization issued, granted, given or otherwise made available by or
under the authority of any Governmental Body or pursuant to any federal, state, local or
foreign Regulation.

“Permitted Indebtedness” means the Indebtedness permitted pursuant to Section
6.1(a).

“Permitted Investments” has the meaning stated in Section 6.1(e).

“Permitted Liens” means each of the Liens permitted pursuant to Section 6.1(b).

“Person” means and includes natural persons, corporations, limited partnerships,
general partnerships, limited liability companies, limited liability partnerships, joint
stock companies, Joint Ventures, associations, companies, trusts, banks, trust companies,
land trusts, business trusts or other organizations, whether or not legal entities, other
legal entities and Governmental Bodies.

“Pledge Agreement” means the Pledge Agreement and Irrevocable Proxy, dated as of the
date hereof, among the Parent, the Borrower, the Guarantors and the Agent.

“PPAS” has the meaning stated in the Preamble to this Agreement.

“PRC” means the People’s Republic of China excluding Hong Kong, Macau Special
Administrative Region and Taiwan.

“Projections” has the meaning stated in Section 4.1(hh).

“Principal Office” means, for the Agent, its office located at 227 West Trade
Street, Suite 1400, Charlotte, North Carolina, 28202, Attention: Loan Administration/XFM,
or such other office as the Agent may from time to time designate in writing to the Borrower
and each Lender.

“Pro Rata Share” means, with respect to all payments, computations and other matters
relating to the Term Loan of any Lender, other than fees, the percentage obtained by
dividing (a) the Term Loan Exposure of such Lender by (b) the aggregate Term Loan Exposure
of all Lenders and, with respect to fees payable to any Lender, the percentage obtained by
dividing (a) the Term Loan Commitment of such Lender by (b) the aggregate Term Loan
Commitments of all Lenders.

“Purchased Shares” has the meaning stated in Section 10.3(f)(ii).

17

 

“Qualified Exchange” means any Designated Offshore Securities Market as defined in
Section 230.902(b) of Regulation S of the Securities Act or any securities exchanges or
inter-dealer quotation systems in the United States.

“Register” has the meaning stated in Section 2.6(b).

“Register of Members” means the book or books with the name and address of each
Member, the number, and (where appropriate) the class of shares held by such Member and the
amount paid or agreed to be considered as paid on such shares; the date on which each Person
was entered in the Register of Members; and the date on which any Person ceased to be a
Member.

“Regulation” means each applicable U.S. and non-U.S. law, rule, regulation, order,
guidance or recommendation (or any change in its interpretation or administration) by any
U.S. and non-U.S. Governmental Body, central bank or comparable agency and any request or
directive (whether or not having the force of law) of any of those Persons and each
judgment, injunction, order, writ, decree or award of any U.S. and non-U.S. Governmental
Body, arbitrator or other Person.

“Regulation M” has the meaning stated in Section 4.1(qq).

“Related Fund” means, with respect to any Lender that is an investment fund, any
other investment fund that invests in commercial loans and that is managed or advised by the
same investment advisor as such Lender or by an Affiliate of such investment advisor.

“Related Proceedings” has the meaning stated in Section 11.16.

“Relevant Property” means, for the Borrower, its Subsidiaries and/or any other
Credit Party, all sites, facilities, locations, real property and leaseholds (i) presently
or formerly owned, leased, used or operated by the Borrower, any of its Subsidiaries or any
other Credit Party (whether or not such properties are currently owned, leased, used or
operated by the Borrower, any of its Subsidiaries or any other Credit Party), (ii) at which
any Hazardous Material has been transported, disposed, treated, stored or released by the
Borrower, any of its Subsidiaries or any other Credit Party, or (iii) that are directly
adjacent to any sites, facilities, locations, real property or leaseholds presently or
formerly owned, leased, used or operated by the Borrower, any of its Subsidiaries or any
other Credit Party.

“Required Lenders” means, at any time, one or more Lenders having or holding a Loan,
and representing more than 50% of the sum of the aggregate outstanding principal amount of
the Loans of all Lenders.

“Required Reserve Amount” has the meaning stated in Section 10.6(b).

“Restricted Junior Payment” means, for the Borrower and/or any of its Subsidiaries,
(i) any dividend or other distribution, direct or indirect, on account of any shares of any
class of Capital Stock of the Borrower or such Subsidiary now or hereafter outstanding,
except a dividend payable solely in shares of that class of Capital Stock to the holders of

18

 

that class; (ii) any redemption, retirement, sinking fund or similar payment, purchase or
other acquisition for value, direct or indirect, of any shares of any class of stock of the
Borrower or such Subsidiary now or hereafter outstanding, and (iii) any payment made to
retire, or to obtain the surrender of, any outstanding warrants, options or other rights to
acquire shares of any class of Capital Stock of the Borrower or such Subsidiary now or
hereafter outstanding; provided, however, Restricted Junior Payments shall
not include any dividends paid under the Series B Preferred Shares (unless, upon the
occurrence of an Event of Default, the Agent provides notice to the Borrower that dividends
under the Series B Preferred Shares may no longer be paid) and shall not include any cash
payment in lieu of any shares of any class of Capital Stock of the Borrower payable in
respect of Earn-Out Consideration; provided, further, with respect to
subclauses (i), (ii) and (iii) above, Restricted Junior Payments shall not include any
dividends or other distributions by a Subsidiary which are made pro rata to all of its
shareholders or members.

“Rights” has the meaning stated in Section 10.3(d)(ii).

“Rights Plan” has the meaning stated in Section 10.3(d)(ii).

“RMB” means the lawful money of the PRC.

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

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

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

“Second Anniversary” has the meaning stated Section 10.1(a).

“SEC Reports” has the meaning stated in Section 4.1(p)(ii).

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

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“Securities Act” means the United States Securities Act of 1933, as amended from
time to time, and any successor statute.

“Securities Litigation” means the class action complaint filed against the Borrower,
its Chief Executive Officer and others in the United States District Court for the Southern
District of New York, for alleged violations of United States federal securities laws for
allegedly failing to disclose in its initial public offering registration statement and
prospectus certain background information concerning the former Chief Financial Officer of
the Borrower.

“Security Agreements” means collectively the Borrower Security Agreement and the
Guarantor Security Agreement.

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

“Shareholder Approval” has the meaning stated in Section 10.6(b).

“Share Option and Share Grant Plan” means the Borrower’s Share Option and Share
Grant Plan, as such plan may be amended, restated and replaced by the Borrower from time to
time.

“Significant Person” means (i) any holder of 5% or more of any class of Capital
Stock of the Parent, any Credit Party or any of their Subsidiaries, (ii) any Person holding
a senior management or executive position in the Parent, any Credit Party or any of their
Subsidiaries, or (iii) any Person who is a member of the board of directors of the Parent,
any Credit Party or any of their Subsidiaries. For purposes of clarification, “Significant
Person” does not include the Parent.

“Solvent” means, with respect to any Person, that as of the date of determination
both (i)(A) the sum of such Person’s debt (including contingent liabilities) does not exceed
all of its property, at a fair valuation, (B) the present fair saleable value of the
property of such Person is not less than the amount that will be required to pay the
probable liabilities on such Person’s then existing debts as they become absolute, and
matured, (C) such Person’s capital is not unreasonably small in relation to its business or
any contemplated or undertaken transaction, and (D) such Person does not intend to incur, or
believe (nor should it reasonably believe) that it will incur, debts beyond its ability to
pay such debts as they become due, and (ii) such Person is “solvent” within the meaning
given that term and similar terms under applicable laws relating to fraudulent transfers and
conveyances. For purposes of this definition, the amount of any contingent liability at any
time shall be computed as the amount that, in light of all of the facts and circumstances
existing at such time, represents the amount that can reasonably be expected to become an
actual or matured liability.

“Specified Courts” has the meaning stated in Section 11.16.

“Spinoff Valuation Period” has the meaning stated in Section 10.3(d)(i)(B).

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“Structuring Fee” has the meaning stated in Section 2.8(b).

“Sub-Agent” has the meaning stated in Section 9.3.

“Subject Securities” has the meaning stated in Section 10.3(i).

“Subordination Agreement” means that certain Subordination Agreement, dated as of
the date hereof, among the Borrower, the Parent and the Agent.

“Subsidiary” means (i) with respect to any Person, any corporation, partnership,
limited liability company, association, joint venture or other business entity of which more
than 50% of the total voting power of shares of stock or other ownership interests entitled
(without regard to the occurrence of any contingency) to vote in the election of the Person
or Persons (whether directors, managers, trustees or other Persons performing similar
functions) having the power to direct or cause the direction of the management and policies
thereof is at the time owned or controlled, directly or indirectly, by that Person or one or
more of the other Subsidiaries of that Person or a combination thereof.

“Tax” means any present or future tax, levy, impost, duty, assessment, charge, fee,
deduction or withholding of any nature and whatever called, by whomsoever, on whomsoever and
wherever imposed, levied, collected, withheld or assessed, and includes any interest and
penalties thereon and any other additions thereto, provided, “Tax on the overall net
income” of a Person shall be construed as a reference to a tax imposed by the jurisdiction
in which that Person is organized or in which that Person’s applicable principal office
(and/or, in the case of a Lender, its lending office) is located or in which that Person
(and/or, in the case of a Lender, its lending, office) is deemed to be doing business on all
or part of the net income, profits or gains (whether worldwide, or only insofar as such
income, profits or gains are considered to arise in or to relate to a particular
jurisdiction, or otherwise) of that Person (and/or, in the case of a Lender, its applicable
lending office).

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

“Term Loan” means a Term Loan made by a Lender to the Borrower pursuant to
Section 2.1.

“Term Loan Exposure” means, with respect to any Lender, as of any date of
determination, the outstanding principal amount of the Term Loan of such Lender.

“Term Note” has the meaning stated in Section 2.6(c).

“Third Anniversary” has the meaning stated in Section 10.1(a).

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“Total Debt” means, as to any Person, with respect to any period, all indebtedness
for borrowed money, including the Loans, together with all accrued interest in respect
thereof and all interest paid in respect thereof.

     “Trading Day” means:

(i) if the Borrower Common Shares are listed or admitted for trading on any national or
regional securities exchange, days on which such national or regional securities exchange is
open for business; or

(ii) if the Borrower Common Shares are quoted on any system of automated dissemination of
quotations of securities prices, days on which trades may be effected through such system;
or

(iii) if the Borrower Common Shares are not listed on a national or regional securities
exchange or quoted on any system of automated dissemination of quotation of securities
prices, days on which the Borrower Common Shares are traded regular way in the
over-the-counter market and for which a closing bid and a closing asked price for the
Borrower Common Shares are available.

     “Trigger Event” has the meaning stated in Section 10.3(d)(iii).

     “Triggering Distribution” has the meaning stated in Section 10.3(e).

“UBS Loan” means, collectively, the loans UBS AG, acting through its New York
branch, extended to the Borrower pursuant to the General Terms and Conditions of Credit
Arrangements, dated July 11, 2008, between UBS AG and the Borrower, as modified by Schedule
I thereto, dated July 11, 2008, and the Promissory Note, dated July 1, 2008, executed by the
Borrower in favor of UBS AG.

“UCC” means the Uniform Commercial Code (or any similar or equivalent legislation)
as in effect in any applicable jurisdiction.

“UNCITRAL” has the meaning stated in Section 11.17.

“Undesignated Shares” has the meaning stated in Section 4.1(m)(i).

“WFOE” means a direct or indirect wholly owned Domestic Subsidiary of the Borrower.

ARTICLE II

Loans

     Section 2.1 Term Loans.

     (a) During the Commitment Period, subject to the terms and conditions hereof and
relying on the representations and warranties herein set forth, subject to Section 2.4, each
Lender severally, and not jointly, agrees to make a Term Loan to the Borrower in

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one or more advances in an amount up to but not exceeding such Lender’s Term Loan
Commitment.

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

     (c) Any amount borrowed under this Section 2.1 shall (i) bear interest as provided in
Section 2.7(a) hereof and (ii) be entitled to the security interests, collateral and other
rights and benefits provided pursuant to this Agreement and the other Credit Documents.

     Section 2.2 [Reserved]

     Section 2.3 Borrowing Mechanics.

     (a) Whenever the Borrower desires that the Lenders make Loans, the Borrower shall
deliver to the Agent a fully executed Funding Notice no later than 10:00 a.m. (New York City
time) at least three Business Days in advance of the proposed Borrowing Date, which
Borrowing Date shall be a Business Day.

     (b) Notice of receipt of each Funding Notice, together with the amount of each Lender’s
share of the Loan pursuant to Section 2.4, together with the applicable interest rate, shall
be provided by the Agent to the Lenders by facsimile with reasonable promptness, but
(provided, the Agent shall have received such notice by 10:00 a.m. (New York City
time)) not later than 4:00 p.m. (New York City time) on the same day as the Agent’s receipt
of such Funding Notice from the Borrower.

     (c) Subject to Section 2.4, each Lender shall make the amount of its Loans available to
the Agent no later than 2:00 p.m. (New York City time) on the applicable Borrowing Date by
wire transfer of same day funds in Dollars, at the Agent’s Principal Office. Except as
provided herein, upon satisfaction or waiver of the conditions precedent specified herein,
the Agent shall make the proceeds of such Loans available to the Borrower on the applicable
Borrowing Date by causing an amount of same day funds in Dollars equal to the proceeds of
all such Loans received by the Agent from the Lenders to be deposited by wire transfer to
the account of the Borrower designated in writing to the Agent by the Borrower.

     Section 2.4 Lenders’ Loan Amounts. All Loans shall be made by the Lenders
simultaneously and proportionately to their respective Pro Rata Shares, it being understood that no
Lender shall be responsible for any default by any other Lender in such other Lender’s obligation
to make the Loans hereunder nor shall any Commitment of any Lender be increased or decreased as a
result of a default by any other Lender in such other Lender’s obligation to make a Loan requested
hereunder.

     Section 2.5 Use of Proceeds. The proceeds of the Term Loans shall be used by the
Borrower and its Subsidiaries solely (i) to pay the costs and expenses related to the transactions

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contemplated by this Agreement and (ii) to finance the purchase price of and/or investments in
the Approved Media Assets set forth on, and pursuant to the terms and conditions summarized in,
Part II of Annex A of the Disclosure Schedule (including the repayment of any acquisition
financings) and other Media Assets reasonably satisfactory to the Agent that will be directly or
indirectly owned or held by the Borrower and not to finance any other businesses or assets or to
pay the Earn-Out Consideration. No portion of the proceeds of any Borrowing shall be used by the
Borrower or any of its Subsidiaries in any manner that might cause such Borrowing or the
application of such proceeds to violate Regulation T, Regulation U or Regulation X of the Board of
Governors of the Federal Reserve System or any other regulation thereof or to violate the Exchange
Act, in each case as in effect on the date or dates of such Borrowing and such use of proceeds.

     Section 2.6 Evidence of Debt; Register; Notes.

     (a) Lenders’ Evidence of Debt. Each Lender shall maintain on its internal
records an account or accounts evidencing the Indebtedness of the Borrower to such Lender,
including the amounts of the Loans owed to it and each repayment and prepayment in respect
thereof. Any such recordation shall be conclusive and binding on the Borrower, absent
manifest error; provided, failure to make any such recordation, or any error in such
recordation, shall not affect any Lender’s Commitments, Loans or any of the Borrower’s
Obligations in respect of any applicable Loans; and provided, further, in
the event of any inconsistency between the Register and any Lender’s records, the
recordations in the Register shall govern.

     (b) Register. The Agent shall maintain, as the Borrower’s agent, at the
Agent’s Principal Office a register for the recordation of the names and addresses of each
Lender and such Lender’s Commitments and the fees, interest and principal amount of Loans
owed to each Lender (the “Register”). The Register shall be available for
inspection by the Borrower or any Lender at any reasonable time and from time to time upon
reasonable prior notice. The Agent shall record in the Register the Commitments, and the
fees, interest and the outstanding balance of the Loans, and each repayment or prepayment in
respect of the principal amount of and interest, fees and other amounts with respect to the
Loans, and any such recordation shall be conclusive and binding on the Borrower and each
Lender, absent manifest error; provided, failure to make any such recordation, or
any error in such recordation, shall not affect any Lender’s Commitments or the Borrower’s
Obligations in respect of any Loan. No transfer of the Commitments, the Loans and/or any
interests therein shall be effective until such transfer is recorded in the Register.

     (c) Notes. If so requested by any Lender by written notice to the Borrower
(with a copy to the Agent) at least two (2) Business Days prior to the Closing Date or
Borrowing Date, as applicable, or at any time thereafter, the Borrower shall execute and
deliver to such Lender (and/or, if applicable and if so specified in such notice, to any
Person who is an assignee of such Lender pursuant to Section 11.4) on the Closing Date or
Borrowing Date (or, if such request is delivered after the Closing Date or Borrowing Date,
promptly after the Borrower’s receipt of such request) a promissory note, in the form of
Exhibit C (each, a “Term Note”), to evidence such Lender’s Term Loan.

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     Section 2.7 Interest on Loans.

     (a) Applicable Rate. Except as otherwise set forth herein, each Loan shall
bear interest on the unpaid principal amount thereof from the date made through repayment
(whether by acceleration or otherwise) at a rate per annum equal to LIBOR plus the
Applicable Margin.

     (b) Calculation of Interest Rates. Interest payable pursuant to this Section
2.7 shall be computed on the basis of a 360-day year for the actual number of days elapsed
in the period during which it accrues. In computing interest on any Loan, the date of the
making of such Loan or the first day of an interest period applicable to such Loan shall be
included, and the date of payment of such Loan or the expiration date of an interest period
applicable to such Loan shall be excluded; provided, if such Loan is repaid on the
same day on which it is made, one day’s interest shall be paid on such Loan.

     (c) Payment of Interest. Interest on the Loans shall be payable to the Agent
on behalf of the Lenders in arrears on (i) the first day of each calendar month, (ii) the
date of any prepayment of the Loans, whether voluntary or mandatory, to the extent accrued
on the amount being prepaid, and (iii) the Maturity Date, including final maturity.

     (d) Default Interest. Upon the occurrence and during the continuance of an
Event of Default described in Section 8.1, the principal amount of the Loans and, to the
extent permitted by applicable law, any interest payments on the Loans or any fees or other
amounts owed hereunder not paid when due, in each case whether at stated maturity, by notice
of prepayment, by acceleration or otherwise, shall thereafter bear interest (including,
without limitation, interest, as provided in this Agreement, accruing after the filing of a
petition initiating any insolvency proceedings, whether or not such interest accrues or is
recoverable against the Borrower after the filing of such petition for purposes of the
Bankruptcy Code or is an allowed claim in such proceeding) payable on demand at the Default
Rate. Payment or acceptance of the increased rates of interest provided for in this Section
2.7 is not a permitted alternative to timely payment and shall not constitute a waiver of
any Event of Default or otherwise prejudice or limit any rights or remedies of the Agent or
any Lender.

     Section 2.8 Fees.

     (a) The Borrower shall to pay to the Agent a non-refundable fee (the “Agent
Fee”) in an amount equal to $75,000 per annum. The Agent Fee shall be payable quarterly
in arrears on the first Business Day of each March, June, September and December, commencing
on December 1, 2008, and continuing until the earlier of (i) the date on which the Loans are
repaid in full in cash or fully converted into Common Shares and (ii) the Maturity Date.

     (b) No later than five (5) days after the Closing Date, the Borrower shall pay to the
Agent a non-refundable structuring fee (the “Structuring Fee”) in an amount equal to
(i) the sum of all Term Loan Commitments as of the Closing Date, times (ii) a rate
equal to 2.0% per annum, which Structuring Fee shall be deemed fully earned and due

25

 

and payable on the Closing Date and in addition to any other fee from time to time
payable under the Credit Documents. Upon receipt of the Structuring Fee, the Agent shall
promptly distribute to each Lender its Pro Rata Share thereof.

     (c) The Borrower shall pay to the Lenders an unused commitment fee (the “Commitment
Fee”) equal to (i) the average of the daily difference between (A) the Term Loan
Commitment, and (B) the aggregate principal amount of outstanding Term Loans times
(ii) a rate equal to 1.0% per annum. The Commitment Fee shall be payable monthly in arrears
on the first Business Day of each calendar month, commencing on the first such date to occur
after the Closing Date, and continuing until the earlier of (i) the date on which the Loans
are repaid in full in cash or fully converted into Borrower Common Shares and (ii) the
Maturity Date.

     (d) All fees referred to in this Section 2.8 shall be calculated on the basis of a 360
day year for the actual number of days elapsed and shall be paid to the Agent at its
Principal Office.

     Section 2.9 Priority of Payments. Notwithstanding anything to the contrary, any and
all payments received by the Agent or any Lender from the Borrower or any Credit Party pursuant to
the Credit Documents shall be applied in the order of priority determined by the Agent in its sole
discretion.

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

     Section 2.11 Optional Prepayments. The Borrower is not permitted to voluntarily
prepay the Loans (i) at any time during the first year following the Closing Date or (ii) after the
first year following the Closing Date, if the Current Market Price, determined six (6) days in
advance of the proposed prepayment, of the Borrower Common Shares is less than 110% of the then
applicable Conversion Price. Subject to the foregoing sentence, the Borrower may voluntarily
prepay the Loans, in whole but not in part, at any time, with five (5) Business Days advance
written notice of the date of prepayment (the “Optional Prepayment Date”) being provided to
the Agent, by paying to each Lender an amount in cash equal to the Loan Payment Amount (determined
as of the Optional Prepayment Date) for such Lender; provided, that such Lender may reject
any such payment of the Loan Payment Amount and instead elect to convert

26

 

its Loans into Borrower Common Shares pursuant to Article X hereof at the then applicable
Conversion Price. Borrower shall provide five (5) Business Days prior written notice to the Agent
of its intent pursuant to this Section 2.11 to pay the Loan Payment Amount and the Agent shall have
three (3) Business Days from the date it receives such notice from the Borrower to elect to convert
into Borrower Common Shares pursuant to Article X hereof. For purposes of clarification, if any
Lender elects to convert to Borrower Common Shares pursuant to Article X hereof, the Borrower shall
not have the option of paying the Loan Payment Amount in cash to such Lender. If the Borrower
fails to pay the Loan Payment Amount in cash or deliver the Borrower Common Shares, as the case may
be, to each Lender on the Optional Prepayment Date, then (in addition to all other remedies)
interest shall accrue on the Loan Payment Amount and the Loans, respectively, at the Default Rate,
and all amounts due shall thereafter be payable on demand.

     Section 2.12 Mandatory Prepayments.

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

     (b) Change of Control. No later than the first Business Day following a Change
of Control, the Borrower shall make an offer to prepay in full the outstanding

27

 

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

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

     Section 2.13 Changed Circumstances. If the introduction of or any change in or in the
interpretation of (in each case, after the date hereof) any law or regulation applicable to any
Lender makes it unlawful, or any Governmental Body asserts, after the date hereof, that it is
unlawful, for any Lender to perform its obligations hereunder to maintain the Loans at LIBOR, such
Lender shall notify the Agent of such event and the Agent shall notify the Borrower of such event,
and the right of the Borrower to apply LIBOR to any subsequent Interest Period in respect of Loans
to such Lender or its Affiliates shall be suspended until the Agent shall notify the Borrower that
the circumstances causing such suspension no longer exist, and the Borrower shall forthwith prepay
in full the Loans then outstanding to such Lender and its Affiliates, and shall pay all interest
accrued thereon through the date of such prepayment, unless the Borrower, within three (3) Business
Days after such notice from the Agent, requests that the interest rate applicable to such Loans be
converted from LIBOR plus the Applicable Margin to the Base Rate as in effect from time to time
plus 4.5%; provided, that if the date of such repayment or proposed

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conversion is not the last day of an Interest Period applicable to such Loans, the Borrower
shall also pay any amount due pursuant to Section 7.5.

     Section 2.14 General Provisions Regarding Payments.

     (a) Payments. All payments by the Borrower of principal, interest, fees and
other Obligations shall be made to the Agent for the benefit of the Lenders in Dollars in
same day funds, without defense, setoff or counterclaim, free of any restriction or
condition, and delivered to the Agent not later than 12:00 p.m. (New York City time) on the
date due at the Agent’s Principal Office without presentment, demand, protest or notice or
any kind, all of which are expressly waived by the Borrower. All funds received by the
Agent after that time on such due date shall be deemed to have been paid by the Borrower on
the next succeeding Business Day.

     (b) Non-Conforming Payments. The Agent shall deem any payment by or on behalf
of the Borrower that is not made to the Agent in same day funds prior to 12:00 p.m. (New
York City time) to be a non-conforming payment. Any such payment shall not be deemed to
have been received by the Agent until the later of (i) the time such funds become available
funds and (ii) the applicable next Business Day. The Agent shall give prompt telephonic
notice to the Borrower and each applicable Lender (confirmed in writing) if any payment is
non-conforming. To the extent any non-conforming payment may be deemed to have been
received on a date after the date such payment was due hereunder pursuant to the provisions
of this Section 2.14(b), such failure of such payment to have been made when due will
constitute or become a Default or Event of Default to the extent so provided under the terms
of Section 8.1. Interest shall continue to accrue on any principal as to which a
non-conforming payment is made until such funds become available funds (but in no event less
than the period from the date of such payment to the next succeeding applicable Business
Day) at the rate determined pursuant to Section 2.7 from the date such amount was due and
payable until the date such amount is paid in full.

     (c) Payments to Include Accrued Interest. All payments in respect of the
principal amount of any Loan (whether mandatory or optional) shall include payment of
accrued interest on the principal amount being, repaid or prepaid, and all such payments
(and, in any event, any payments in respect of any Loan on a date when interest is due and
payable with respect to such Loan) shall be applied to the payment of interest before
application to principal.

     (d) Distributions by the Agent. The Agent shall promptly distribute to each
Lender by wire transfer, such Lender’s applicable Pro Rata Share of all payments and
prepayments of principal and interest due hereunder, together with all other amounts due
thereto, including, without limitation, all fees payable with respect thereto, to the extent
received by the Agent. If and to the extent that the Agent has not forwarded to any Lender
such Lender’s share of any such payment on the same Business Day as such payment is received
(or deemed received) from the Borrower, the Agent shall pay to such Lender interest on such
amount at LIBOR for each day until payment is received by such Lender.

29

 

     (e) Business Days. Whenever any payment to be made hereunder shall be stated
to be due on a day that is not a Business Day, such payment shall be made on the next
succeeding Business Day and such extension of time shall be included in the computation of
the payment of interest hereunder.

     Section 2.15 Ratable Sharing. Lenders hereby agree among themselves that, except as
otherwise provided in the Collateral Documents with respect to amounts realized from the exercise
of rights with respect to Liens on the Collateral, if any of them shall, whether by voluntary
payment (other than a voluntary prepayment of Loans made and applied in accordance with the terms
hereof), through the exercise of any right of set-off or banker’s lien, by counterclaim or cross
action or by the enforcement of any right under the Credit Documents or otherwise, or as adequate
protection of a deposit treated as cash collateral under the Bankruptcy Code, receive payment or
reduction of a proportion of the aggregate amount of principal, interest, fees and other amounts
then due and owing to such Lender hereunder or under the other Credit Documents (collectively, the
“Aggregate Amounts Due” to such Lender) which is greater than the proportion received by
any other Lender in respect of the Aggregate Amounts Due to such other Lender, then the Lender
receiving such proportionately greater payment shall (a) notify the Agent and each other Lender of
the receipt of such payment and (b) apply a portion of such payment to purchase participations
(which it shall be deemed to have purchased from each seller of a participation simultaneously upon
the receipt by such seller of its portion of such payment) in the Aggregate Amounts Due to the
other Lenders so that all such recoveries of Aggregate Amounts Due shall be shared by all Lenders
in proportion to the Aggregate Amounts Due to them; provided, if all or part of such
proportionately greater payment received by such purchasing Lender is thereafter recovered from
such Lender upon the bankruptcy or reorganization of the Borrower or otherwise, those purchases
shall be rescinded and the purchase prices paid for such participations shall be returned to such
purchasing Lender ratably to the extent of such recovery, but without interest. The Borrower
expressly consents to the foregoing arrangement and agrees that any holder of a participation so
purchased may exercise any and all rights of banker’s lien, set-off or counterclaim with respect to
any and all monies owing by the Borrower to that holder with respect thereto as fully as if that
holder were owed the amount of the participation held by that holder.

     Section 2.16 Termination of Commitments. Unless previously terminated, the Term Loan
Commitment will terminate on December 31, 2008. Upon the making of any Term Loan, each Lender’s
Term Loan Commitment shall be permanently reduced by an amount equal to the principal amount of
such Term Loan.

     Section 2.17 Increase in Commitment.

     (a) Request for Increase. Provided there exists no Default or Event of
Default, upon written notice to the Agent and the Lenders, the Borrower may during the
Commitment Period request an increase in the Term Loan Commitment by an amount not to exceed
$40,000,000 and the Borrower may make a maximum of one such request. Subject to Section
2.17(c) below, the Commitments shall be increased by the amount of such increase, so long as
the Borrower requests a Loan in the amount of such increase in accordance with this
Agreement (including, without limitation, Sections 2.3, 2.5, 3.2 and 5.1(o) hereof) within 5
Business Days of the Increase Effective Date.

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     (b) Effective Date and Allocations. If the Commitments are increased in
accordance with this Section, the Agent and the Borrower shall determine the effective date
(the “Increase Effective Date”), which date shall in no event be later than ten (10)
Business Days after the date the Borrower makes such request, and the final allocation among
the Lenders of such increase. The Agent shall promptly notify the Borrower and the Lenders
of the final allocation of such increase and the Increase Effective Date.

     (c) Conditions to Effectiveness of Increase. As a condition precedent to such
increase, (i) the Borrower shall deliver to the Agent a certificate of the Borrower and each
Guarantor dated as of the Increase Effective Date signed by an Authorized Officer of such
Credit Party (A) certifying and attaching the resolutions adopted by such Credit Party
approving or consenting to such increase, and (B) in the case of the Borrower, certifying
that, before and after giving effect to such increase, (1) the representations and
warranties contained in Article IV of this Agreement and the other Credit Documents
are true and correct in all material respects on and as of the Increase Effective Date,
except to the extent that such representations and warranties specifically refer to an
earlier date, in which case they are true and correct in all material respects as of such
earlier date, and (2) no Default or Event of Default exists, (ii) the Borrower and the
Lenders shall otherwise have executed and delivered such other instruments and documents as
the Agent shall have reasonably requested in connection with such increase, including
without limitation, an amendment to this Agreement and new Term Notes reflecting such
increased commitment, and (iii) the Borrower shall pay to the Agent (for distribution to
each Lender based upon its Pro Rata Share thereof) a non-refundable commitment increase fee
in an amount equal to (A) the sum of the increase in the Term Loan Commitment as of the
Increase Effective Date, times (B) a rate equal to 2.0% per annum, which fee shall be deemed
fully earned and due and payable on the Increase Effective Date and in addition to any other
fee from time to time payable under the Credit Documents.

ARTICLE III

Conditions Precedent; Conditions Subsequent

     Section 3.1 Conditions Precedent; Closing Date. The obligation of any Lender to
consummate the transactions herein and to make the initial Loan and the other financial
accommodations described herein shall not become effective until each of the following conditions
is satisfied, the satisfaction of each of such conditions to be satisfactory to the Agent and the
Lenders, in their sole discretion, or waived in accordance with Section 11.1:

     (a) Director’s Certificates. The Lenders shall have received a certificate of
the director of each Credit Party, each substantially in the form of Exhibit E, with
respect to (i) the articles of incorporation or certificate of formation, as the case may
be, of such Credit Party, (ii) the regulations, bylaws, operating agreement or limited
partnership agreement, as the case may be, of such Credit Party, (iii) the resolutions of
the board of directors, manager or general partner, as the case may be, of such Credit Party
approving each Credit Document to which such Credit Party is a party and the other documents
to be delivered by such Credit Party under the Credit Documents and the performance of the
obligations of such Credit Party thereunder, and (iv) the names and true signatures of the
officers of such Credit Party or such other persons authorized to sign each Credit

31

 

Document to which such Credit Party is a party and the other documents to be delivered
by it under the Credit Documents.

     (b) Organizational and Capital Structure. The organizational structure and the
capital structure of the Borrower and its Subsidiaries, shall be as set forth in Section
4.1(m) and Section 4.1(m) of the Disclosure Schedule.

     (c) Good Standing Certificates. The Lenders shall have received a good
standing certificate from the applicable Governmental Body of each Credit Party’s
jurisdiction of incorporation, organization or formation and in each jurisdiction in which
it is qualified as a foreign corporation or other entity to do business, each dated a recent
date prior to the Closing Date.

     (d) Proceedings. All corporate and, to the extent necessary, shareholder
proceedings of the Borrower and the other Credit Parties approving this Agreement and the
transactions contemplated hereby and by the other Credit Documents shall be reasonably
satisfactory to the Agent and the Lenders and their counsel. The Audit Committee of the
Board shall have approved the Credit Documents and the entering into and performing by the
Credit Parties of the transactions contemplated by the Credit Documents.

     (e) Closing Date Certificate. The Agent shall have received an originally
executed Closing Date Certificate, in the form of Exhibit F (the “Closing Date
Certificate”), from the Borrower, together with any attachments thereto.

     (f) UCC Financing Statements. The Agent shall have received UCC financing
statements duly authorized by each applicable Credit Party with respect to all personal
property Collateral of such Credit Party, for filing in all jurisdictions as may be
necessary or, in the opinion of the Lenders, desirable, to perfect the security interests
created in such Collateral pursuant to the Collateral Documents.

     (g) Credit Documents. The Agent shall have received duly executed original
copies of each Credit Document, including without limitation the Disclosure Schedule, from
each applicable Credit Party. The financing statements and other Credit Documents related
to perfection of the security interest of the Agent and the Lenders in the Collateral shall
have been filed in all appropriate jurisdictions.

     (h) Security Collateral. The Agent shall have received the Pledge Agreement
(including the stocks pledged thereunder), certificates, instruments and promissory notes
(which certificates, instruments and promissory notes shall be accompanied by instruments of
transfer or assignment duly endorsed in blank and otherwise in form and substance
satisfactory to Agent and Lenders) representing or evidencing all negotiable documents,
instruments, tangible chattel paper, certificated securities and certificates of title
covering goods included in the Collateral and pledged pursuant to the Collateral Documents.

     (i) Waivers. The Agent shall have received a duly executed waiver dated as of
the date hereof from Active Advertising Agency Limited, with respect to the loan

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agreement dated as of September 11, 2008, between the Borrower and Active Advertising
Agency Limited.

     (j) Other Information. The Agent and the Lenders shall have received any other
financial or non-financial information regarding the Borrower and its Subsidiaries as the
Agent or any Lender may reasonably request.

     (k) Opinions. The Lenders and their counsel shall have received originally
executed copies of the favorable written opinions of Latham & Watkins, special U.S. counsel
for the Credit Parties, Conyers Dill & Pearman, special Cayman and British Virgin Islands
counsel to the Credit Parties, and K&L Gates, special Hong Kong counsel to the Credit
Parties, in the forms attached as Exhibit I and as to such other matters as Agent
may reasonably request, dated as of the Closing Date and otherwise in form and substance
reasonably satisfactory to Agent (and each Credit Party hereby instructs such counsel to
deliver such opinions to Agent and Lenders).

     (l) Fees and Expenses. The Borrower shall have paid all fees and expenses
(including reasonable attorneys’ fees) and out of pocket expenses of the Lenders and the
Agent incurred in connection with this Agreement and the other Credit Documents.

     Section 3.2 Conditions to Each Borrowing. The obligation of each Lender to make any
Loan on any Borrowing Date, including the Closing Date, is subject to the satisfaction, or waiver
in accordance with Section 11.1, of the following conditions precedent:

     (a) Funding Notice. The Agent and Lenders shall have received a fully executed
and delivered Funding Notice, in accordance with Section 2.3. Each Funding Notice shall be
executed by an Authorized Officer of the Borrower in a writing delivered to the Agent and
the Lenders on a Business Day. In lieu of delivering a Funding Notice, the Borrower may
give the Agent and the Lenders telephonic notice by the required time of any proposed
Borrowing; provided, each such notice shall be promptly confirmed in writing by delivery of
the Funding Notice to the Agent and the Lenders on or before the applicable date of
Borrowing. The Agent shall not incur any liability to the Borrower in acting upon any
telephonic notice referred to above that the Agent believes in good faith to have been given
by a duly authorized officer or other Person authorized on behalf of the Borrower or for
otherwise acting in good faith.

     (b) Representations and Warranties. As of such Borrowing Date, the
representations, warranties and covenants of the Credit Parties contained in the Credit
Documents (including, without limitation, any updated Disclosure Schedule) shall be true,
correct and complied with on and as of that Borrowing Date, except as to the extent such
representations and warranties specifically relate to an earlier date, in which case such
representations and warranties shall be true, correct and complied with on and as of such
earlier date.

     (c) No Default or Event of Default. As of such Borrowing Date, no event shall
have occurred and be continuing or would result from the consummation of the applicable
Borrowing that would constitute an Event of Default or a Default.

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     (d) Consents. The Lenders shall have received such Consents and other
information, approvals, opinions or documents reasonably requested by the Agent or the
Lenders or otherwise required in connection with such Borrowing and the granting of any
security interest, as may be required under any Credit Document or any other agreements.

     (e) Available Commitment. After making the Loans requested on such Borrowing
Date, the aggregate outstanding principal amount of Term Loans shall not exceed the
aggregate amount of Term Loan Commitments.

     (f) No Material Adverse Effect. No Material Adverse Effect shall have
occurred, or shall reasonably be expected to occur, after giving effect to the making of
such Loans.

     (g) No Order. No court or other Governmental Body having jurisdiction over the
Borrower or any of the other Credit Parties or the Lenders shall have instituted, enacted,
issued, promulgated, enforced or entered any U.S. or non-U.S. Regulation (whether temporary,
preliminary or permanent) that is then in effect and that (i) has the effect of making
illegal or otherwise prohibiting or invalidating consummation of any of the transactions
contemplated by the Credit Documents or any provision of any Credit Document or results or
could reasonably be expected to result in a Material Adverse Effect or (ii) seeks to
restrain, prohibit or invalidate the consummation of any of the transactions contemplated by
the Credit Documents or to invalidate any provision of any Credit Document.

     (h) Actions to Perfect Security Interests. The Lenders shall have received
evidence that each Credit Party shall have taken or caused to be taken any other action,
executed and delivered or caused to be executed and delivered any other agreement, document
and instrument, and made or caused to be made any other filing and recording (other than as
set forth herein) reasonably required by the Lenders, including the entering of the Lien of
the Agent in the register of members or share register of the Subsidiary whose equity is
being pledged in accordance with the constitutive documents of such Subsidiary and the law
of the jurisdiction of organization of such Subsidiary.

     (i) Approval of Acquisition. The proceeds of the Loan requested shall be used
solely to fund the acquisition of or investment in the Media Assets, which, in the case of
the Approved Media Assets, must be on substantially the same terms as set forth in Part II
in Annex A of the Disclosure Schedule, and in the case of other Media Assets, must be on
terms and conditions reasonably satisfactory to the Agent, and the Agent shall have received
simultaneously with the Funding Notice for such acquisition or investment (i) a description
of the pro forma cash flow to the Borrower from such Media Assets, (ii) a copy of the
resolutions of the Board or Audit Committee thereof, approving the acquisition or
investment, (iii) a certificate of an Authorized Officer of the Borrower as required by
Section 5.1(o), and (iv) complete executed copies of all of the documents relating to such
acquisition; provided, however, that to the extent any acquisition directly
involves a PRC Governmental Body, the Borrower shall not be required to deliver complete
executed copies of the acquisition documents to the Agent prior to funding, but shall
provide to the Agent for approval the executed term sheet and memorandum of

34

 

understanding setting forth the significant terms of the acquisition, which shall
include a description of the Media Asset to be acquired or invested in and the amount of the
purchase price therefor.

     Section 3.3 Conditions Subsequent. No later than 30 days after the Closing Date, the
Agent shall have received the following:

     (a) Deposit Accounts. Executed copies of all documents required to perfect a
security interest in and Lien upon all Deposit Accounts of the Guarantors, and each
Guarantor shall have taken or cause to be taken any other action, executed or delivered or
caused to be executed and delivered any other agreement, document and instrument, made or
cause to be made any other filing or recording, and obtained or caused to be obtained all
consents and approvals related thereto.

     (b) Appointment of Process Agent. Evidence in form and substance reasonably
satisfactory to the Agent, of the appointment of the agents for service of process by the
Credit Parties under the Credit Documents.

ARTICLE IV

Representations and Warranties

     Section 4.1 Representations and Warranties of the Credit Parties. In order to induce
the Agent and the Lenders to enter into this Agreement and to make each Borrowing to be made
thereby, each Credit Party hereby represents and warrants to the Agent and each Lender, on the
Closing Date and on each Borrowing Date as follows:

     (a) Corporate Status; Corporate Authorization. Each Credit Party, the Parent
and each of their Subsidiaries is duly organized, validly existing, and in good standing
under the laws of its jurisdiction of organization. Each such Person is duly qualified and
licensed in every jurisdiction where it is doing business and in good standing in every
jurisdiction where such qualification is required, except where the failure to so qualify
could not reasonably be expected to have a Material Adverse Effect on such Credit Party or
its Subsidiaries, and has all requisite power and authority to carry on its business as now
conducted. The execution, delivery and performance by each Credit Party of the Credit
Documents to which it is a party, and by the Borrower of the Deposit Agreement (i) are
within its respective power and authority, (ii) have been duly authorized, and (iii) do not
conflict with or contravene its respective constitutive documents. The execution, delivery
and performance by the Borrower of its obligations under the Deposit Agreement, and by each
of the Credit Parties and the Parent of its respective obligations, and exercise of its
respective rights under the Credit Documents, including, without limitation, the making of
the Loans under this Agreement and the issuance of Borrower Common Shares (if any) upon
conversion of Loans (such shares, the “Loan Shares”), (i) do not require any
Consents other than those that have been obtained or will be obtained pursuant to the Credit
Documents, (ii) are not and will not be in conflict with or prohibited or prevented by, or
result in a breach of, constitute (with or without due notice or lapse of time or both) a
default under, result in the acceleration of, create in any Person any right to accelerate,
terminate, modify or cancel, or require any notice, consent or

35

 

waiver under, (A) any applicable Regulation or (B) any corporate governance document,
corporate minute or resolution of any Credit Party or (C) any instrument, agreement or
provision thereof, in each case binding on any of them or affecting any of their property,
(iii) except under the Collateral Documents, result in the imposition of any Lien upon any
properties or assets of any Credit Party or any of its Subsidiaries, (iv) result in the
Borrower being required to redeem, repurchase or otherwise acquire any outstanding equity or
debt interests, securities or obligations of the Borrower or any of its Subsidiaries or any
options or other rights exercisable for any of same or (v) cause the accelerated vesting of
any Employee Share Options or other employee benefits or result in any obligations on the
part of the Borrower or any of its Subsidiaries to pay any additional severance benefits
upon the termination of the employment of any employee.

     (b) Execution and Binding Effect. The Credit Documents have been duly executed
and delivered by each Credit Party which is a party thereto and, assuming the due execution
and delivery by the other parties thereto, each Credit Document constitutes the legal, valid
and binding obligation of each Credit Party which is a party thereto, enforceable in
accordance with its terms, except as the enforceability thereof may be limited by
bankruptcy, insolvency or other similar laws relating to the enforcement of creditors’
rights generally and by general equitable principles and, with respect to the Investor and
Registration Rights Agreement, principles of public policy regarding the indemnification
provisions contained therein. The Deposit Agreement has been duly executed and delivered by
the Borrower and, assuming the due execution and delivery by the other parties thereto,
constitutes the legal, valid and binding obligation of the Borrower, enforceable in
accordance with its terms, except as the enforceability thereof may be limited by
bankruptcy, insolvency or other similar laws relating to the enforcement of creditors’
rights generally and by general equitable principles.

     (c) Tangible Assets. Except as could not reasonably be expected, individually
or in the aggregate, to have a Material Adverse Effect, the Borrower and each of its
Subsidiaries have good and marketable title to, or have valid rights to lease or otherwise
use, all items of real and tangible personal property that are material to their respective
businesses, free and clear of all Liens other than Permitted Liens.

     (d) Senior Indebtedness. The Obligations of each Credit Party under this
Agreement and each other Credit Document ranks and shall continue to rank senior in priority
of payment to all other Indebtedness of such Credit Party, other than the Indebtedness
listed in Part I on Section 4.1(ii) of the Disclosure Schedule and Section 6.1(a) of the
Disclosure Schedule, and ranks and shall continue to rank at least pari passu with the
Indebtedness described in Part I of Section 4.1(ii) of the Disclosure Schedule and Section
6.1(a) of the Disclosure Schedule, ordinary course trade payables, capital leases and
ordinary course financings to facilitate conversion of Dollars into RMB required for working
capital purposes in the PRC.

     (e) Laws. Each Credit Party and its Subsidiaries is in compliance with all
applicable Regulations, except where the failure to do so could not reasonably be expected
to have a Material Adverse Effect. No Credit Party is in default under or in violation of
any provision of its constitutive documents, including without limitation the

36

 

Borrower’s Articles of Association, and no defaults or violations have occurred in the
past that could reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect.

     (f) Litigation. Except as set forth in Section 4.1(f) of the Disclosure
Schedule, there are no legal or other proceedings or investigations pending or threatened
against any Credit Party or any of its Subsidiaries before any court, tribunal or regulatory
authority which could, if adversely determined, alone or together, reasonably be expected to
have a Material Adverse Effect on such Credit Party or such Subsidiary.

     (g) Governmental Approvals and Filings. No approval, order, Consent,
authorization, certificate, license, permit or validation of, or exemption or other action
by, or filing, recording or registration with, or notice to, any Governmental Body
(collectively, “Governmental Action”) is or will be necessary in connection with the
execution and delivery of this Agreement or any other Credit Document, consummation by the
Credit Parties of the transactions herein or therein contemplated, or performance of or
compliance with the terms and conditions hereof or thereof, other than (i) the filings and
recordations contemplated by the Collateral Documents and (ii) the registration and other
transactions contemplated by the registration rights contained in the Investor and
Registration Rights Agreement. None of the Credit Parties is subject to regulation under
any Regulation limiting the Borrower’s ability to incur Indebtedness for money borrowed.
None of the Credit Parties is an “investment company” or a company “controlled” by an
“investment company”, with the meaning of the United States Investment Company Act of 1940,
as amended.

     (h) [Reserved]

     (i) Collateral. From and after the execution and delivery of the Collateral
Documents and the filing of the documents thereby required, the Agent, on behalf of the
Lenders, shall have, subject only to Permitted Liens, a first-priority perfected security
interest in and to all of the Collateral, free and clear of any Liens other than the
Permitted Liens, and entitled to priority under applicable law, with no financing
statements, hypothecations, chattel mortgages, real estate mortgages, charges or similar
filings on record anywhere other than such filings in connection with this Agreement, the
Collateral Documents or the Permitted Liens. Each of the representations and warranties
made by each Credit Party in each Collateral Document to which it is a party is true and
correct in all material respects as of each date made or deemed made.

     (j) Partnerships, Etc. Except as could not reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect, no Credit Party is a
partner (general or limited) of any partnership, is a party to any Joint Venture or owns
(beneficially or of record) any equity or similar interest in any similar Person (including,
without limitation, any interest pursuant to which such Credit Party has or may in any
circumstance have an obligation to make capital contributions to, or be generally liable for
or on account of the liabilities, acts or omissions of such other Person).

37

 

     (k) Fiscal Year. Each fiscal year of the Credit Parties and their Subsidiaries
begins on January 1 of each calendar year and ends on December 31 of each calendar year.

     (l) Subsidiaries.

     (i) Section 4.l(l) of the Disclosure Schedule sets forth a
true, correct and complete list, as of the Closing Date, of each Media Company (including
each Credit Party), showing as to each entity (A) the jurisdiction of its organization and
jurisdictions in which it is qualified to do business, if applicable, (B) the number of
shares of Capital Stock of each class (1) authorized and (2) issued and outstanding, (C) the
percentage of the outstanding shares of Capital Stock of such entity owned directly or
indirectly by the Borrower, (D) the names of the record holders of each class of outstanding
shares of Capital Stock of such entity and the number of such shares held by each such
holder, (E) the number of shares of Capital Stock of such entity covered by all outstanding
options, warrants, rights of conversion or purchase, and similar rights, if applicable, (F)
the percentage of those options, warrants or rights owned directly or indirectly by the
Borrower or such other Persons, if applicable, and (G) the names of the record holders of
such options, warrants and rights and the number of such options, warrants and rights held
by each such holder.

     (ii) All material Subsidiaries of the Borrower are described in Section 4.1(m)
of the Disclosure Schedule. Except as set forth in Section 4.1(m) of the Disclosure
Schedule: (i) all of the outstanding shares or registered capital or other equity
capital in each of such Subsidiaries are duly authorized, validly issued, fully paid
and nonassessable; (ii) all of the outstanding shares or registered capital of, or
other ownership interest in each of such Subsidiaries are owned by the Borrower or a
wholly-owned Subsidiary of the Borrower, free and clear of any Liens; (iii) there
are no outstanding subscriptions, rights, options, warrants, convertible securities
or other agreements or commitments obligating the Borrower or any such Subsidiary to
issue, transfer or sell any securities of any such Subsidiary; and (iv) neither the
Borrower nor any of its Subsidiaries owns, of record or beneficially, any material
direct or indirect equity or other interest in any other Person.

     (m) Capitalization.

     (i) As of the date hereof, the authorized capital of the Borrower consists of
343,822,874 Borrower Common Shares, 50,054,619 Class B Common Shares, 320,000 Series
B Preferred Shares and 605,802,507 shares not yet designated as to class or series
(the “Undesignated Shares”). As of the date hereof, of the Borrower Common
Shares currently authorized, 96,860,049 shares are currently outstanding, 19,530,205
shares are reserved for issuance under the Share Option and Share Grant Plan and the
remainder are unissued. Of the Class B Common Shares, 50,054,618 are currently
outstanding and the remainder are unissued. Of the Series B Preferred Shares,
314,000 are currently outstanding and the remainder are unissued.

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     (ii) Except as disclosed therein, the Borrower, each Guarantor and each other
Credit Party is the record and beneficial owner of all of the issued and outstanding
shares of Capital Stock of each of the Subsidiaries of the Borrower, each Guarantor
and each other Credit Party listed in Section 4.1(l)(i) of the Disclosure Schedule
as being owned by the Borrower, such Guarantor or such other Credit Party and there
are no proxies, irrevocable or otherwise, with respect to such shares. Except as
disclosed in Section 4.1(l)(ii) of the Disclosure Schedule, no equity securities of
any of the Media Companies are or may become required to be issued by reason of any
options, warrants, rights to subscribe to, calls or commitments of any kind or
nature and there are no contracts, commitments, understandings or arrangements by
which any Media Company is or may become bound to issue additional shares of its
Capital Stock or securities convertible into or exchangeable for such shares.

     (iii) As of the Closing Date, the issued and outstanding shares of Capital
Stock of the Borrower and each of the other Media Companies are directly and
beneficially owned and held by the persons indicated in Section 4.1(l)(iii) of the
Disclosure Schedule. In each case all of such shares have been duly authorized,
validly issued, are fully paid and non-assessable, without violation of the
preemptive rights, rights of first refusal or other similar rights and in compliance
with U.S. federal and state, and non-U.S., securities laws. Except as set forth in
Section 4.1(l)(iii) of the Disclosure Schedule, no equity securities of the Borrower
or any of the other Media Companies is or may become required to be issued by reason
of any options, warrants, rights to subscribe to, calls or commitments of any kind
or nature and there are no contracts, commitments, understandings or arrangements by
which the Borrower or any of the other Media Companies is or may become bound to
issue additional shares of its Capital Stock or securities convertible into or
exchangeable for such shares.

     (iv) Except as set forth in Section 4.1(l)(iv) of the Disclosure Schedule,
there are no authorized or outstanding bonds, debentures, notes or other obligations
or equity-linked securities of the Credit Parties, the holders of which have the
right to vote with the holders of Borrower Common Shares on any matter.

     (v) All outstanding Employee Share Options have been issued without violation
of any preemptive rights of any Person, and all Borrower Common Shares issued upon
exercise thereof will have been, upon such issuance, duly authorized and validly
issued and will be fully-paid and nonassessable, free and clear of all Liens without
violation of preemptive rights, rights of first refusal or other similar rights and
in compliance with U.S. federal and state, and non-U.S., securities laws.

     (n) Loan Shares. Loan Shares issuable pursuant to this Agreement have been
duly reserved for issuance, have been duly authorized and, upon issuance in accordance with
the terms of this Agreement, will be validly issued, fully-paid and nonassessable, free and
clear of all Liens, without violation of preemptive rights, rights of first refusal or

39

 

other similar rights and in compliance with U.S. federal and state, and non-U.S.,
securities laws.

     (o) Deposit Agreement; Issuance of ADSs. The Borrower Common Shares may be
deposited by the holders thereto with the Depositary’s agent acting as custodian under the
Deposit Agreement in accordance with the Deposit Agreement. Upon the due issuance by the
Depositary to Lenders of ADRs evidencing the ADSs against the deposit of Borrower Common
Shares in accordance with the provisions of the Deposit Agreement, such ADRs will be duly
authorized and validly issued, free and clear of all Liens without violation of preemptive
rights, rights of first refusal or other similar rights and in compliance with U.S. federal
and state, and non-U.S., securities laws and the Deposit Agreement, and the Lenders will be
entitled to the rights of a registered holder of ADRs evidencing the ADSs specified therein
and in the Deposit Agreement. The Common Shares may be freely deposited by the Borrower
with the Depositary against issuance of ADRs evidencing the ADSs. The ADSs are freely
transferable by the Company to or for the account of the Lenders. There are no restrictions
on subsequent transfers of the Borrower Common Shares or ADSs under the laws of the Cayman
Islands or the United States. The Borrower has not breached any of its material obligations
under the Deposit Agreement, and, to the knowledge of the Borrower, the Depositary has not
breached any of its material obligations under the Deposit Agreement. The Borrower has not
received any notice of resignation or termination from the Depositary.

     (p) No Material Misstatements and Omissions.

     (i) To the Knowledge of each Credit Party, there are no facts pertaining to any
Credit Party or its Subsidiaries, their assets or properties or their businesses
which, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect and which have not been disclosed in this Agreement, the
other Credit Documents or in any other documents, certificates and statements
(including, without limitation, contract summaries and translations) furnished to
the Agent or the Lenders for use in connection with the transactions contemplated
hereby and by the other Credit Documents. To the Knowledge of each Credit Party,
there is no information which would contradict or is inconsistent in any material
respect with any representation or warranty of any Credit Party contained in the
Credit Documents.

     (ii) From March 9, 2007, the Borrower has timely filed all reports, schedules,
forms, statements and other documents required to be filed by it with the SEC
pursuant to the reporting requirements of the Exchange Act (all the foregoing filed
prior to the date hereof and all exhibits included or incorporated by reference
therein and financial statements and schedules thereto and documents included or
incorporated by reference therein being sometimes herein collectively referred to as
the “SEC Reports”). As of their respective filing dates, the SEC Reports
complied in all material respects with the requirements of the Exchange Act
applicable to the SEC Reports (as amended or supplemented), and none of the SEC
Reports, at the time they were filed with the SEC, contained any untrue statement of
a material fact or omitted to state a material fact required to be

40

 

stated therein or necessary in order to make the statements therein, in light
of the circumstances under which they were made, not misleading.

     (iii) As of their respective dates, except as set forth therein or in the notes
thereto, the Financials contained in the SEC Reports and the related notes, where
applicable, complied as to form in all material respects with all applicable
accounting requirements and the published rules and regulations of the SEC with
respect thereto. The Financials: (A) were prepared in accordance with GAAP,
consistently applied during the periods involved (except (1) as may be otherwise
indicated in the notes thereto or (2) in the case of unaudited interim statements,
to the extent that they may not include footnotes or may be condensed or summary
statements), (B) give a true and fair view of the consolidated financial position of
the Borrower and its consolidated Subsidiaries as of the dates thereof and the
consolidated results of their operations and cash flows for the periods then ended
(subject, in the case of unaudited statements, to normal year-end audit adjustments)
and (C) are in all material respects in accordance with the books of account and
records of the Borrower and its consolidated Subsidiaries (except as may be
otherwise noted therein).

     (q) Independent Accountants. Deloitte Touche Tohmatsu, who have expressed
their opinion with respect to the Financials, are (i) independent public or certified public
accountants as required by the Exchange Act, (ii) in compliance with the applicable
requirements relating to the qualification of accountants under Rule 2-01 of Regulation S-X
and (iii) a registered public accounting firm as defined by the Public Company Accounting
Oversight Board whose registration has not been suspended or revoked and who has not
requested such registration to be withdrawn.

     (r) No Undisclosed Liabilities; No Debt. Except as disclosed in Section 4.1(r)
of the Disclosure Schedule, neither the Borrower nor any of its Subsidiaries has any
material liability (whether absolute or contingent, whether liquidated or unliquidated,
whether due or to become due), except for the following: (i) liabilities reflected in or
reserved for in the consolidated balance sheet of the Borrower and its Subsidiaries as of
December 31, 2007, (ii) liabilities that have arisen since the date of the consolidated
balance sheet of the Borrower and its Subsidiaries as of December 31, 2007 in the ordinary
course of the businesses of the Borrower and its Subsidiaries consistent with past practice
that would have been required under GAAP to be reflected in the consolidated balance sheet
of the Borrower and its Subsidiaries as of December 31, 2007 had such liabilities existed as
of the date of the consolidated balance sheet of the Borrower and its Subsidiaries as of
December 31, 2007, (iii) liabilities that would not be required under GAAP to be reflected
in an audited consolidated balance sheet of the Borrower and its consolidated Subsidiaries
and that are not in the aggregate material and (iv) liabilities incurred in connection with
the Transactions. The Borrower has not, since December 31, 2007, incurred any short-term or
long-term debt, issued any equity or equity-linked securities or made any dividends or
distributions other than in the ordinary course, except as disclosed in Section 4.1(r) of
the Disclosure Schedule.

     (s) Solvency. Each Credit Party and each of its Subsidiaries is Solvent.

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     (t) Labor Practices. No Credit Party or any of its Subsidiaries is engaged in
any unfair labor practice that could reasonably be expected to have a Material Adverse
Effect. Except as disclosed in the Disclosure Schedule, there is (i) no complaint of unfair
labor practice pending against any Credit Party or any of its Subsidiaries or threatened
against any of them before any Governmental Body and no grievance or arbitration proceeding
arising out of or under any collective bargaining agreement that is so pending against any
Credit Party or any if its Subsidiaries or threatened against any of them, (ii) no strike or
work stoppage in existence or threatened involving any Credit Party or any of its
Subsidiaries, and (iii) no union representation question existing with respect to the
employees of any Credit Party or any of its Subsidiaries, as the case may be, and no union
organization activity that is taking place, except (with respect to any matter specified in
clause (i), (ii) or (iii) above, either individually or in the aggregate) such as could not
reasonably be expected to have a Material Adverse Effect.

     (u) Employee Benefits. Except as disclosed in Section 4.1(u) of the Disclosure
Schedule, no Credit Party or any Affiliate thereof sponsors, maintains, contributes to or
has any obligation under any employee benefit plan, pension plan or any other plan
maintained for employees which are subject to ERISA or the Internal Revenue Code or where
the aggregate liability of such Credit Party or Subsidiary is in excess of $100,000 per
year. Except as disclosed in Section 4.1(u) of the Disclosure Schedule, each Credit Party
is in compliance with all Regulations governing plans maintained for employees in the
jurisdictions in which they do business.

     (v) Environmental Matters.

     (i) Except as disclosed in Section 4.1(v)(i) of the Disclosure Schedule, no
Credit Party or any of its Subsidiaries has any Environmental Liabilities at any
Relevant Property, which individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.

     (ii) Except as disclosed in Section 4.1(v)(ii) of the Disclosure Schedule, each
Credit Party and each of its Subsidiaries: (A) has operated its business in
compliance with all applicable Environmental Laws; (B) has obtained all
Environmental Permits required by applicable Environmental Laws for the ownership
and operation of its properties, and all such Environmental Permits are in full
force and effect or such Person has made all appropriate filings for issuance or
renewal of such Environmental Permits; (C) is not aware of any acts, omissions,
events or circumstances that may interfere with or prevent continued compliance with
the Environmental Laws and Environmental Permits referred to in the preceding
clauses (A) and (B); (D) has not received notice of any asserted or threatened
claim, action, suit, proceeding, hearing, investigation or request for information
relating to any environmental matter; and (E) has not received notice from any
Governmental Body that any Credit Party or any of its Subsidiaries is a potentially
responsible party under any Environmental Law at any disposal site containing
Hazardous Materials, nor received any notice that any Lien under any Environmental
Law against any property of any Credit Party or any of its Subsidiaries exists, in
the case of each of clauses (A) through (E), except for

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matters, which individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect.

     (w) Insurance. Except as disclosed in Section 4.1(w) of the Disclosure
Schedule, the policies, binders or self-insurance programs for fire, liability, product
liability, workmen’s compensation, vehicular and other insurance currently held by or on
behalf of each Credit Party and each of its Subsidiaries insure its material properties and
business activities against such losses and risks as are adequate to protect is properties
in accordance with customary industry practice when entered into or renewed. As of the date
hereof, all such policies, binders and self-insurance programs are in full force and effect,
except such as could not be reasonably be expected to have a Material Adverse Effect To the
Knowledge of each Credit Party, as of the date hereof, none of the Credit Parties or any of
their Subsidiaries has received notice from any insurer or agent of such insurer that
substantial capital improvements or other expenditures are required or notice of
cancellation of any material insurance policy or binder.

     (x) Intellectual Property. Each Credit Party and each of its Subsidiaries
owns, or is licensed or otherwise has the right to use, all Intellectual Property necessary
to own and operate its properties and to carry on its business as presently conducted and
presently planned to be conducted without conflict with the rights or otherwise, except for
such instances of non-compliance that, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect. None of the former or present
employees, officers or directors of any Credit Party or any of its Subsidiaries holds any
material right, title or interest, directly or indirectly, in or to any such Intellectual
Property (including moral rights). As of the date hereof, the Borrower and the other Media
Companies do not have any Intellectual Property registered, or subject to pending
applications, in the United States Patent and Trademark Office or any similar office or
agency in the United States, any State thereof, any political subdivision thereof or in any
other country that are material to the conduct of the business of the Borrower or of the
other Media Companies, taken as a whole, other than those described in Section 4.1(x) of the
Disclosure Schedule and has not granted any licenses with respect thereto other than as set
forth in Section 4.1(x) of the Disclosure Schedule. No event has occurred which permits or
would permit after notice or passage of time or both, the revocation, suspension or
termination of such rights. Except as set forth in Section 4.1(x) of the Disclosure
Schedule, to the best of the Borrower’s and its Subsidiaries’ knowledge, no slogan or other
advertising device, product, process, method, substance or other Intellectual Property or
goods bearing or using any Intellectual Property presently contemplated to be sold by or
employed by the Borrower or any of the other Media Companies infringes any patent,
trademark, servicemark, tradename, copyright, license or other Intellectual Property owned
by any other Person presently and no claim or litigation is pending or threatened against or
affecting the Borrower or any of the other Media Companies contesting its right to sell or
use any such Intellectual Property, in each case except as could not reasonably be expected
to result in a Material Adverse Effect. Section 4.1(x) of the Disclosure Schedule sets
forth all of the material agreements or other material arrangements of the Borrower and each
of the other Media Companies pursuant to which the Borrower or such other Media Company has
a license or other right to use any trademarks, logos, designs, representations or other
Intellectual Property

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owned by another Person as in effect on the date hereof and the dates of the expiration
of such agreements or other arrangements of the Borrower or such other Media Company as in
effect on the date hereof (collectively, together with such agreements or other arrangements
as may be entered into by the Borrower or any of the other Media Companies after the date
hereof, collectively, the “License Agreements” and individually, a “License
Agreement”). As of the date hereof, all material license and related rights are in full
force and effect, no default or event of default exists with respect thereto in respect of
the obligations of licensor or with respect to any royalty or other payment obligations of
the Borrower or any of the other Media Companies or any obligations of the Borrower or any
of the other Media Companies with respect to manufacturing standards, quality control or
specifications and the Borrower or any of its Subsidiaries thereto is in compliance with the
terms thereof in all material respects and no owner, licensor or other party thereto has
sent any notice of termination or its intention to terminate such license or rights.

     (y) Absence of Events of Default. No event has occurred and is continuing and
no condition exists which constitutes an Event of Default.

     (z) Absence of Other Defaults. Except as disclosed in Section 4.1(z) of the
Disclosure Schedule, no Credit Party or any of its Subsidiaries is in default under any
agreement, ordinance, resolution, decree, bond, note, indenture, order or judgment to which
it is a party (by successor in interest or otherwise) or by which it is bound, or any other
agreement or other instrument by which any of the properties or assets owned by it or used
in the conduct of its business is affected, which individually or in the aggregate could
reasonably be expected to have a Material Adverse Effect.

     (aa) Material Contracts. Part I of Section 4.1(aa) of the Disclosure Schedule
sets forth a true, correct and complete list and description of all the Material Contracts,
as of the Closing Date, to which any Credit Party or any of its Subsidiaries is a party, and
all such Material Contracts are in full force and effect in accordance with their terms as
of the Closing Date. No Credit Party or any of its Subsidiaries is in default in the
performance, observance or fulfillment of any of the obligations, covenants or conditions
contained in any of the Material Contracts, and no condition exists which, with the giving
of notice or the lapse of time or both, could constitute such a default, except where the
consequences, direct or indirect, of such default or defaults, if any, could not reasonably
be expected to have a Material Adverse Effect.

     (bb) Brokerage Fees. No broker’s or finder’s fee or commission will be payable
with respect to the execution and delivery of this Agreement and the other Credit Documents,
and no other similar fees or commissions will be payable by the Credit Parties for any other
services rendered to the Credit Parties ancillary to the credit transactions contemplated
herein.

     (cc) Margin Regulations. No part of the proceeds of the Loans issued hereunder
will be used for the purpose of buying or carrying any Margin Stock or to extend credit to
others for the purpose of buying or carrying any Margin Stock, in either case in a manner
which would violate or conflict with Regulations T, U or X of the Board

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Governors of the Federal Reserve System. No Credit Party is engaged in the business of
extending credit to others for the purpose of buying or carrying Margin Stock. Neither the
making of the Loans nor any use of proceeds of any such Loans will violate or conflict with
the provisions of Regulations T, U or X of the Board of Governors of the Federal Reserve
System, as amended from time to time.

     (dd) Taxes.

     (i) Each Credit Party and each of its Foreign Subsidiaries has timely filed all
Tax returns required by any jurisdiction in which the Credit Party or Foreign
Subsidiary does business and has not failed to pay any material Taxes on or before
the due dates thereof except for Taxes not yet due and except for those the amount
or validity of which is currently being contested in good faith by appropriate
proceedings. Except to the extent that reserves therefor are reflected in the
Financials, (i) there are no material Tax liabilities of any Credit Party or any of
their Foreign Subsidiaries due or to become due for any tax year ended on or prior
to the date hereof relating to such Credit Party or any of its Foreign Subsidiaries,
which are not properly reflected in the consolidated Financials of the Borrower, and
(ii) there are no material claims pending, proposed or threatened against any Credit
Party or any of its Foreign Subsidiaries for past Taxes, except those, if any, as to
which proper reserves in accordance with GAAP are reflected in such Financials.

     (ii) Each Domestic Subsidiary of the Credit Parties has filed all Tax returns
required by any jurisdiction in which such Domestic Subsidiary does business and has
not failed to pay any material Taxes, or interest and penalties relating thereto, on
or before the due dates thereof except for Taxes not yet due and except for those
the amount or validity of which is currently being contested in good faith by
appropriate proceedings and except where such failure, individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.
Except to the extent that reserves therefor are reflected in the Financials, (i)
there are no material Tax liabilities of any Domestic Subsidiary of the Credit
Parties due or to become due for any tax year ended on or prior to the date hereof
relating to such Domestic Subsidiary, which are not properly reflected in the
consolidated Financials of the Borrower, and (ii) there are no material claims
pending, proposed or threatened against any Domestic Subsidiary of the Credit
Parties for past Taxes, except those, if any, as to which proper reserves in
accordance with GAAP are reflected in such Financials and, in each case, except
where such liabilities and claims, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.

     (ee) USA Patriot Act; Etc. Each Credit Party and each of its Subsidiaries is
in compliance in all material respects with the USA Patriot Act (Title III of Pub.L. 107-56
(signed into law October 26, 2001)) (the “Patriot Act”). No part of the proceeds of
the extensions of credit hereunder will be used, directly or indirectly, for any payments to
any governmental official or employee, political party, official of a political party,
candidate for political office or anyone else acting in an official capacity, in order to

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obtain, retain or direct business or obtain any improper advantage, in violation of the
federal Foreign Corrupt Practices Act of 1977 as amended (the “FCPA”). No Credit
Party or any of its Subsidiaries has used any corporate funds for any unlawful contribution
gift, entertainment or other unlawful expense relating to political activity or otherwise
violated the FCPA.

     (ff) OFAC. None of the Parent, any Credit Party, any Subsidiary of the Parent
or any Credit Party or any Affiliate of the Parent or any Credit Party: (i) is in violation
of the Regulations administered by the U.S. Treasury Department’s Office of Foreign Asset
Control (including Executive Order No. 13224 on Terrorist Financing, effective 24 September
2001) and the Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56), (ii) is a Sanctioned
Person, (iii) has more than 10% of its assets in Sanctioned Entities, or (iv) derives more
than 10% of its operating income from investments in, or transactions with Sanctioned
Persons or Sanctioned Entities. The proceeds of any Loans will not be used and have not
been used to fund any operations in, finance any investments or activities in, or make any
payments to, a Sanctioned Person or a Sanctioned Entity.

     (gg) No Material Adverse Change. Since December 31, 2007, no event,
circumstance or change has occurred that has had, or could reasonably be expected to have,
either in any case or in the aggregate, a Material Adverse Effect.

     (hh) Financial Projections. On and as of the Closing Date, the financial
projections for the Borrower previously provided to the Agent for the period of Fiscal Year
2008 through and including Fiscal Year 2010 (the “Projections”) (i) are consistent
with the organizational and capital structure of the Credit Parties and their Subsidiaries
described in Sections 4.1(1) and 4.1(m) and set forth in Section 4.1(m) of the Disclosure
Schedule, (ii) are consistent with the ownership of the Media Assets, (iii) are based on
good faith estimates and assumptions made by the management of Borrower (in light of
circumstances known to management at such time), and (iv) reflect all agreements to which
the Borrower or any of its Subsidiaries is a party that contain earn out or other deferred
payments or payments in stock and, as of the Closing Date, management of the Borrower
believed that the Projections were reasonable in light of circumstances known at such time
and taken as a whole, it being recognized by the Lenders and the Agent that the Projections
as they relate to future events are not to be viewed as fact and that actual results during
the periods covered by the Projections may differ from the projected results as set forth
therein by a material amount.

     (ii) Indebtedness. Section 4.1(ii)(1) of the Disclosure Schedule contains a
complete and correct listing of all Indebtedness of the Borrower and its Subsidiaries in
excess of $100,000 as of the Closing Date. Except as set forth in note (11) in Part I of
Section 4.1(ii)(1) of the Disclosure Schedule, each Credit Party and its Subsidiaries has
performed and is in compliance with all of the material terms of such Indebtedness and all
instruments and agreements relating thereto, and no default or event of default, or event or
condition which with notice or lapse of time or both would constitute such a default or
event of default on the part of any Credit Party or any of its Subsidiaries, exists with
respect to any such Indebtedness. There is no Indebtedness outstanding or amounts

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owing to the Parent or any Subsidiary of the Parent (other than Xinhua Financial
Network Limited, a Hong Kong company) by any Credit Party or any Subsidiary of any Credit
Party, and there is no commitment by the Parent or any Subsidiary of the Parent to loan or
advance any funds to any Credit Party or any Subsidiary of any Credit Party, except in
connection with the Group Service Agreement.

     (jj) Liens. None of the properties and assets of any Credit Party or any of
its Subsidiaries is subject to any Lien, except Permitted Liens. No Credit Party or any of
its Subsidiaries has signed any mortgage, financing statement or any security agreement
authorizing any secured party thereunder to file any financing statement, except in
connection with any Permitted Lien.

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

     (ll) Internal Control Agreements. Each of the Internal Control Agreements that
has been duly executed by the parties thereto is in full force and effect and constitutes a
legal, valid and binding obligation of the parties thereto, enforceable in accordance with
its terms, except (1) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, and other laws of general application affecting enforcement of creditors’ rights
generally, and (2) as limited by laws relating to the availability of specific performance,
injunctive relief, or other equitable principle.

     (mm) Deposit Accounts. Section 4.1(mm) of the Disclosure Schedule contains a
complete and correct listing of all demand, time, savings, passbook or like accounts with a
bank, savings and loan association, credit union or like organization of the Borrower and
the other Media Companies as of the Closing Date.

     (nn) Exchange Listing. The ADSs are listed on the Nasdaq Global Market and, to
the knowledge of the Borrower, there are no proceedings to revoke or suspend such listing.
The Borrower is in compliance with the requirements of the Nasdaq Global Market for
continued listing of the ADSs thereon and any other applicable Nasdaq Global Market listing
and maintenance requirements. Trading in the ADSs has not been suspended by the SEC or the
Nasdaq Global Market.

     (oo) Registration, Information and Special Voting Rights. Except as disclosed
in the Disclosure Schedule, the Borrower has not granted or agreed to grant any registration
rights, information rights or special voting rights to any Person.

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     (pp) Securities Law Compliance. Assuming the accuracy of the Lenders’
representations and warranties contained in Section 4.2, the incurrence of the Loans and the
issuance of Loan Shares, if any, is and will be in compliance with Section 4(2) of and/or
Regulation D under the Securities Act and is exempt from the registration and prospectus
delivery requirements of the Securities Act and all applicable state and foreign securities
laws. Neither the Borrower nor any agent of the Borrower has offered the Loans or Loan
Shares by any form of general solicitation or general advertising, including any
advertisement, article, notice or other communication published in any newspaper, magazine
or similar media or broadcast over television or radio or any seminar or meeting whose
attendees have been invited by any general solicitation or general advertising.

     (qq) No Price Stabilization or Manipulation; Compliance with Regulation M, Etc.
The Borrower has not taken, directly or indirectly, any action designed to or that might be
reasonably expected to cause or result in stabilization or manipulation of the price of the
Borrower Common Shares or ADSs or any other “reference security” (as defined in Rule 100 of
Regulation M under the 1934 Act (“Regulation M”)), whether to facilitate the sale or
resale of Loans or otherwise, and has taken no action which would directly or indirectly
violate Regulation M or facilitate any short-selling of the securities offered or the
underlying securities by the Lenders.

     (rr) Passive Foreign Investment Company. The Borrower believes that it will
not be considered for a previous taxable year or the current taxable year a “passive foreign
investment company” as defined in Section 1296 of the Internal Revenue Code.

     Section 4.2 Representations and Warranties of Lenders. Each Lender hereby represents
and warrants to the Borrower, on the Closing Date and on each Borrowing Date as follows:

     (a) Purchase Entirely for Own Account. The Borrower Common Shares issuable
upon conversion of the Loans (if any) will be acquired for investment for such Lender’s own
account, not as a nominee or agent, and not with a view to the resale or distribution of any
part thereof, and that such Lender has no present intention of selling, granting any
participation in, or otherwise distributing the same. Such Lender further represents that
it does not have any contract, undertaking, agreement or arrangement with any person to
sell, transfer or grant participations to such person or to any third person, with respect
to the Borrower Common Shares.

     (b) Accredited Investor. Such Lender is an “accredited investor” within the
meaning of Rule 501(a)(l), (2), (3) under the Securities Act.

     (c) Investment Experience. Such Lender is able to bear the economic risk of
its investment and has such knowledge and experience in financial or business matters that
it is capable of evaluating the merits and risks of the investment in the Borrower Common
Shares.

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     (d) Acknowledgement of Risks. Such Lender understands and accepts the
following risks that may be associated with the Borrower Common Shares:

     (i) Country Risk. Substantially all of the Borrower’s assets will be
located in the PRC and enforcement of existing laws and regulations may be uncertain
and sporadic, and implementation and interpretation thereof may be inconsistent.
The outcome of litigation in PRC courts may be uncertain. Further, it may be
difficult to obtain swift and equitable enforcement or to obtain enforcement of a
judgment by a court of another jurisdiction. The introduction of new PRC laws and
regulations and the interpretation of existing ones may be subject to policy changes
reflecting domestic political or social changes. As the PRC legal system develops,
there can be no assurance that changes in such regulation or interpretation will not
have a material adverse effect on the business, financial condition, results of
operations and future prospects of the Borrower.

     (ii) Regulatory Environment. PRC laws relating to foreign investments,
media and financial markets are relatively new compared with those in more mature
markets. New laws and regulations continue to be promulgated. There are
substantial uncertainties regarding the interpretation, application and
administration of current PRC laws and regulations and the impact of any new laws
and regulations is unknown.

     (iii) Currency Restrictions. As a holding company for operations in
the PRC, the Borrower will depend on dividends and other payments from its
subsidiaries and related entities in the PRC for its revenues. The remittance of
funds out of the PRC as well as the exchange rate of the RMB to other currencies are
highly regulated. Changes to the exchange rate regime as well as the regulations
affecting the remittance of funds out of the PRC may have an adverse impact on the
Borrower’s ability to fund its expenses outside of the PRC or to issue dividends to
its shareholders. Furthermore, any change in the exchange rates between the RMB and
other currencies may also have an impact on the amount of proceeds in other
currencies the Borrower receives from the PRC and, ultimately, the value of the
Purchaser’s investment in the Borrower. The value of the Purchaser’s investment in
the Borrower will also be affected by the foreign exchange rate between the HK
Dollar and other currencies.

     (e) Execution and Binding Effect. Each Credit Document constitutes the legal,
valid and binding obligation of such Lender which is a party thereto, enforceable in
accordance with its terms, except as the enforceability thereof may be limited by
bankruptcy, insolvency or other similar laws relating to the enforcement of creditors’
rights generally and by general equitable principles.

     (f) Resale Restrictions. Such Lender understands that the Loans and the
Borrower Common Shares issuable upon conversion of the Loans may not be sold, transferred,
or otherwise disposed of without registration under the Securities Act, and that in the
absence of an effective registration statement covering the Loans and the Borrower Common
Shares or an available exemption from registration under the

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Securities Act, sale, transfer or otherwise dispose of such Notes and Borrower Common
Shares is unlawful.

ARTICLE V

Affirmative Covenants

     Section 5.1 Affirmative Covenants. Each Credit Party covenants and agrees that until
Payment in Full, each Credit Party shall perform all the covenants in this Article V:

     (a) Basic Reporting Requirements. The Borrower shall furnish to the Agent and
the Lenders upon, but only upon, the request of a Lender or the Agent:

     (i) if the Borrower at any time ceases to timely file periodic reports pursuant
to Section 13 of the Exchange Act, as soon as available but in any event within
ninety (90) days after the close of each Fiscal Year, the audited consolidated
Financials of the Borrower and its Subsidiaries for such Fiscal Year, certified by
the Borrower’s accountants;

     (ii) if the Borrower at any time ceases to timely file periodic reports
pursuant to Section 13 of the Exchange Act, as soon as available but in any event
within sixty (60) days after the end of each Fiscal Quarter, the unaudited
consolidated Financials of the Borrower and its Subsidiaries for such quarter;

     (iii) as soon as available but in any event within thirty (30) Business Days
after the end of each fiscal month the unaudited consolidated Financials of the
Borrower and its Subsidiaries for such month, certified by its chief financial
officer pursuant to a Financial Officer Certification;

     (iv) together with the quarterly and annual audited consolidated Financials, a
certificate of the Borrower setting forth computations demonstrating compliance with
the financial covenants set forth in Section 6.2 and certifying that no Default or
Event of Default has occurred, or if a Default or an Event of Default has occurred,
the actions taken by the Borrower with respect thereto;

     (v) promptly upon Borrower obtaining knowledge of (i) the institution of, or
non frivolous written threat of, any Action not previously disclosed in writing by
Borrower to Lenders, or (ii) any material development in any Action that, in the
case of either clause (i) or (ii), if adversely determined could be reasonably
expected to have a Material Adverse Effect, or seeks to enjoin or otherwise prevent
the consummation of, or to recover any material damages or obtain relief as a result
of, the transactions contemplated hereby, written notice thereof together with such
other information as may be reasonably available to Borrower to enable Lenders and
their counsel to evaluate such matters;

     (vi) as soon as available but in no event later than the end of each Fiscal
Year an updated financial projection for the succeeding Fiscal Year;

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     (vii) promptly upon their becoming available, all minutes and written
resolutions of the Board of Directors of the Borrower; and

     (viii) promptly upon their becoming available, copies of all statements,
reports, releases, notices and any other information or data sent or made available
generally or required to be disclosed by the Borrower to its shareholders.

     (b) Visitation; Verification. The Borrower and each of the other Credit
Parties shall keep true and accurate books of account in accordance with GAAP and shall
permit the Agent and/or any Lender and or any of their designated representatives, upon
reasonable notice and at the expense of the Borrower, to visit and inspect the premises of
the Borrower and/or other Credit Party, to examine the books of account of any such Persons
and their Affiliates (and to make copies and/or extracts therefrom) and to discuss the
affairs, finances and accounts of such Persons and their Affiliates with, and to be advised
as to the same by, the managers, executives and officers of such Persons and to be advised
as to such or other business records upon the request of the Agent and/or Lender.

     (c) Maintenance of Properties. The Borrower and each of the other Credit
Parties shall maintain its corporate/legal existence and business, maintain its assets in
good operating conditions and repair (subject to ordinary wear and tear and casualty damage
and to all provisions of this Agreement permitting sales of certain of Borrower’s assets),
keep its business and assets adequately insured.

     (d) Notice of Material Events. The Borrower and each of the other Credit
Parties shall notify the Agent and the Lenders promptly in writing upon an Authorized
Officer becoming aware of any of the following: (i) the occurrence of any Default or Event
of Default, (ii) any noncompliance with any Environmental Law or proceeding in respect
thereof which could have a Material Adverse Effect, (iii) any change of address of the
Borrower or any other Credit Party, (iv) any threatened or pending litigation or similar
proceeding affecting the Borrower or any other Credit Party involving claims in excess of
$500,000 in the aggregate or any material change in any such litigation or proceeding
previously reported, (v) claims in excess of $500,000 in the aggregate against any assets or
properties of the Borrower or any other Credit Party encumbered in favor of the Agent and/or
the Lenders and (vi) any other development that results in, or could reasonably be expected
to result in, a Material Adverse Effect.

     (e) Use of Proceeds. The Borrower and each other Credit Party shall use the
proceeds of the Loans only as permitted by Section 2.5 hereof (for the avoidance of doubt,
the proceeds of the Loans shall not be used for the purpose of purchasing or carrying of
“margin security” or “margin stock” within the meaning of Regulations U and X of the Board
of Governors of the Federal Reserve System, 12 C.F.R. Parts 221 and 224). The Borrower
shall not transfer any of the proceeds of the Loans to, nor use any such proceeds for the
benefit of, any of its Subsidiaries that is not a Guarantor hereunder.

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     (f) Further Assurances.

     (i) The Borrower and each of the other Credit Parties shall cooperate with the
Agent, take such action, execute such documents, and provide such information as the
Agent may from time to time reasonably request in order further to effect the
transactions contemplated by and the purposes of the Credit Documents.

     (ii) The Borrower and each of the other Credit Parties shall promptly, upon
request by any Lender, correct, and cause each of the other parties to the Credit
Documents to promptly correct, any defect or error that may be discovered in any
Credit Document or in the execution, acknowledgment or recordation of the Credit
Document. Promptly upon request by the Agent or the Required Lenders, the Borrower
and each other Credit Party shall execute, authorize, acknowledge, deliver, record,
file and register, any and all such further acts, deeds, conveyances, documents,
security agreements, pledge agreements, mortgages, deeds of trust, trust deeds,
assignments, financing statements and continuations, notices of assignment,
transfers, certificates, assurances, resolutions, opinions of counsel, secretary’s
certificates, and other instruments as the Agent or the Required Lenders may require
from time to time in order to carry out more effectively the purposes of each Credit
Document. Without limiting the foregoing, the Borrower and/or each other Credit
Party shall (A) authorize the filing by Agent of UCC-l financing statements for all
jurisdictions requested by the Agent, and (B) take such action from time to time
(including, without limitation, authorizing, filing, executing and/or delivering
such assignments, security agreement and other instruments) as shall be reasonably
requested by the Agent to create, in favor of the Lenders, to the extent required
under the respective Collateral Documents and to the maximum extent permitted under
applicable law, a first-priority perfected Lien in all of the Collateral, subject
only to Permitted Liens.

     (g) Insurance. The Borrower and each of the other Credit Parties shall
maintain, at its respective expense, and keep in effect with responsible insurance
companies, such liability insurance for bodily injury and third-party property damage as is
customary in the case of companies engaged in the same or similar business or having similar
properties, similarly situated. The Borrower and each of the other Credit Parties shall
keep and maintain, at its expense, its material real and personal property insured against
loss or damage by fire, theft, explosion, spoilage and all other risks ordinarily insured
against by other owners or users of such properties in similar businesses in an amount equal
to the full replacement or cash value thereof, subject to deductible amounts which the
Borrower, in its reasonable judgment, deems prudent.

     (h) Information Regarding Collateral. The Borrower and each of the other
Credit Parties will furnish to the Agent prompt written notice of any change in (i) any
Credit Party’s corporate name or any trade name used to identify it in the conduct of its
business or any Credit Party’s chief executive office, its principal place of business or
its jurisdiction of organization, (ii) any Credit Party’s identity or corporate structure or
(iii)

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any Credit Party’s federal Taxpayer Identification Number (if any). The Borrower and
each of the other Credit Parties will not effect or permit any change referred to in the
preceding sentence unless all filings have been made under the UCC and all other actions
have been taken that are required so that such change will not at any time adversely affect
the validity, perfection or priority of any Lien established under any Credit Document on
the Collateral.

     (i) Existence; Conduct of Business. The Borrower and each of the other Credit
Parties will do or cause to be done all things necessary to preserve, renew and keep in full
force and effect its legal existence and the rights, licenses, permits (including, without
limitation, Environmental Permits) privileges, franchises and Intellectual Property material
to the conduct of its business; provided that the foregoing shall not prohibit any
merger, consolidation, liquidation or dissolution permitted under Section 6.1(g).

     (j) Payment of Obligations. The Borrower and each of the other Credit Parties
will pay their Indebtedness and other obligations, including Tax liability, before the same
shall become delinquent or in default, except where (a) the validity or amount thereof is
being contested in good faith by appropriate proceedings, (b) the Borrower or such Credit
Party has set aside on its books adequate reserves with respect thereto in accordance with
GAAP, (c) such contest effectively suspends collection of the contested obligation and the
enforcement of any Lien securing such obligation and (d) the failure to make payment pending
such contest could not reasonably be expected to result in a Material Adverse Effect.

     (k) Compliance with Regulations. The Borrower and each of the other Credit
Parties will comply with all Regulations (including, without limitation, all Environmental
Laws), applicable to it or its property, except where failure to do so, whether individually
or in the aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

     (l) Compliance with Material Contracts. The Borrower and each of the other
Credit Parties will comply with all Material Contracts (including, without limitation, all
Material Contracts constituting Media Assets), except where the failure to do so, whether
individually or in the aggregate, could not reasonably be expected to have a Material
Adverse Effect.

     (m) Guarantors. If any Foreign Subsidiary is formed or acquired after the
Closing Date which directly or indirectly holds any Media Assets or any outstanding shares
of Capital Stock of a WFOE which is party to an Internal Control Agreement with respect to
such Media Assets, the Borrower and each of the other Credit Parties will, within three
Business Days after such Foreign Subsidiary is formed or acquired, notify the Agent and the
Lenders thereof and the Borrower and each of the other Credit Parties shall cause such
Foreign Subsidiary to become a Guarantor hereunder by (i) executing a joinder to this
Agreement in the form of Exhibit G hereto, (ii) executing a guaranty in the form of
Exhibit D hereto, and (iii) executing a joinder to the Guarantor Security Agreement
of the Guarantors in the form of Exhibit B thereto. Upon delivery of any such

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joinders and such guaranty to Agent, notice of which is hereby waived by the parties
hereto, each such Guarantor shall be as fully a party hereto as if such Guarantor were an
original signatory hereof. In addition, each Credit Party will cause any equity interest in
such Foreign Subsidiary and Indebtedness owned by or on behalf of such Foreign Subsidiary to
be added to the Collateral. The Borrower shall deliver all certificates, documents,
instruments and agreements, including all constitutive documents, resolutions, secretary’s
certificates, opinions of counsel, and financing statements, and take all such action,
reasonably requested by the Agent in furtherance of the foregoing. Each Guarantor expressly
agrees that its obligations arising hereunder shall not be affected or diminished by the
addition or release of any other Guarantor hereunder, nor by any election of Agent not to
cause any such Foreign Subsidiary of the Borrower and each of the other Credit Parties to
become a Guarantor hereunder.

     (n) Reserved Shares. The Borrower shall reserve a sufficient number of
authorized Borrower Common Shares for issuance such that at all times there are enough
Borrower Common Shares to fully convert the Loan Conversion Amount upon election by the
Lenders to convert into Borrower Common Shares in accordance with Article X hereof.

     (o) Additional Media Assets. No Media Asset shall be acquired after the date
hereof unless (i) it (A) is held by Starease Limited, Upper Step Holdings Limited or any
other wholly owned Foreign Subsidiary of the Borrower that has fully complied with the
provisions of Section 5.1(m) and (B) is subject to an Internal Control Agreement with any
Credit Party or any Subsidiary of any Credit Party; (ii) (A) the Borrower shall be in pro
forma compliance with the financial covenants set forth in Section 6.2 before and after
giving effect to such acquisition, (B) no Default or Event of Default shall have occurred
and be continuing (or would occur after giving effect thereto), and (C) such acquisition
shall not be reasonably expected to cause a Material Adverse Effect; (iii) the acquisition
of or investment in the Media Assets, in the case of the Approved Media Assets, must be on
substantially the same terms as set forth in Part II in Annex A of the Disclosure Schedule,
and in the case of other Media Assets, must be on terms and conditions reasonably
satisfactory to the Agent; (iv) the Borrower shall have provided the Agent and the Lenders
with notice thereof, not less than five (5) days prior to the proposed closing thereof, and
the Agent shall have received (A) a description of the pro forma cash flow to the Borrower
from such Media Assets, (B) a copy of the resolutions of the Board or Audit Committee
thereof, approving the acquisition or investment, (C) an updated Disclosure Schedule to
reflect such acquisition, if necessary, and (D) complete executed copies of all of the
documents relating to such acquisition; provided, however, that to the
extent any acquisition directly involves a PRC Governmental Body, the Borrower shall not be
required to deliver complete executed copies of the acquisition documents to the Agent prior
to funding, but shall provide to the Agent for approval the executed term sheet and
memorandum of understanding setting forth the significant terms of the acquisition, which
shall include a description of the Media Asset to be acquired or invested in and the amount
of the purchase price therefor; and (v) the Borrower shall have provided the Agent with a
certificate signed by an Authorized Officer of the Borrower, certifying (A)the Borrower’s
pro forma compliance with the covenants listed in clauses (i), (ii), (iii) and (iv) of this
Section 5.1(o), together with any calculations

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necessary to demonstrate such compliance; and (B) the Borrower’s compliance with
Sections 5.1(m) and 6.1(k).

     (p) Blue Sky Compliance. The Borrower shall qualify or register the Loan
Shares or ADSs or obtain exemptions from the application of the state securities or blue sky
laws or other foreign laws of those jurisdictions designated by the Agent, shall comply with
such laws and shall continue such qualifications, registrations and exemptions in effect so
long as required for the distribution of the Loan Shares or ADSs. The Borrower shall not be
required to qualify as a foreign corporation or to take any action that would subject it to
general service of process in any such jurisdiction where it is not presently qualified or
where it would be subject to taxation as a foreign corporation. The Borrower will advise
the Agent promptly of the suspension of the qualification or registration of (or any such
exemption relating to) the Loan Shares for offering, sale or trading in any jurisdiction or
any initiation or threat of any proceeding for any such purpose, and in the event of the
issuance of any order suspending such qualification, registration or exemption, the Borrower
shall use its best efforts to obtain the withdrawal thereof at the earliest possible moment.

     (q) Disclosure; Other Material, Nonpublic Information. (i) On or before the
fourth (4th) Business Day following the date of this Agreement, the Borrower
shall furnish the SEC with a Current Report on Form 6-K disclosing the terms of the
transactions contemplated by the Credit Documents in the form required by the Exchange Act.
(ii) If this Agreement requires any Credit Party to deliver or disclose material, nonpublic
information (within the meaning of U.S. federal securities laws or “MNPI”) to the
Agent or Lenders, the applicable Credit Party will not deliver or disclose such information
without the consent of the Agent and Lenders, will request whether the Agent and the Lenders
want to have such information delivered or disclosed and shall comply with the response of
the Agent and the Lenders to such request; it being understood that, if any Credit Party
provides or delivers information to any Lender or the Agent in response to the request of
such Lender or Agent pursuant to Section 5.1(a) or Section 5.1(b), then such Credit Party
will have complied with the agreement contained in this clause (ii) and will not be required
to take any further action to comply with this clause (ii), unless and until the Lender or
Agent shall have given notice that it no longer is requesting information pursuant to
Section 5.1(a) or Section 5.1(b). (iii) If the Agent or any Lender has, or believes it has,
received any such MNPI regarding the Borrower or any of its Subsidiaries from the Borrower,
any of its Subsidiaries or any of their officers, directors, employees or agents in
contravention of the agreement contained in clause (ii) of this paragraph, it shall provide
the Borrower with written notice thereof and the Borrower shall within three (3) Business
Days thereafter, make public disclosure of such MNPI if permitted under applicable law or
without breach or violation of any agreement, contract or other obligation of the Borrower;
provided, that if the Borrower shall fail to make such public disclosure within such
three (3) Business Day period, the Agent or such Lender shall be entitled to make public
disclosure of such information to the extent permitted under applicable law or without
breach or violation of any agreement, contract or other obligation of the Borrower.

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     (r) Listing. Neither the Borrower nor any of its Subsidiaries shall take any
action which would be reasonably expected to result in the delisting or suspension of the
ADSs on the Nasdaq Global Market and shall use commercially reasonable efforts to maintain
the listing of the ADSs on the Nasdaq Global Market, including without limitation,
exhausting all available remedies, appeal reviews and other similar mechanisms and
procedures provided for under the rules and regulations of the Nasdaq Global Market to
permit such continued listing of the ADSs. Upon the issuance of the Conversion Securities,
the Borrower will submit notification to the Nasdaq Global Market relating to the ADSs
issuance under the Deposit Agreement relating to Conversion Securities.

     (s) Issuance of ADSs. Upon the request of a Lender at any time, and subject to
applicable securities Regulations and the provisions of the Deposit Agreement, the Borrower
shall arrange for any Loan Shares issued or issuable to the Lender to be deposited with the
Depositary and for corresponding ADSs to be issued in the name of the Lender, and the
Borrower shall pay any fees or expense reimbursements required to be paid to the Depositary
in connection therewith.

ARTICLE VI

Negative Covenants and Financial Covenants

     Section 6.1 Negative Covenants. Each Credit Party covenants and agrees that until
Payment in Full, each Credit Party shall perform all covenants in this Section 6.1:

     (a) Indebtedness. No Credit Party or any of its Subsidiaries shall create,
incur, permit to exist or assume any Indebtedness other than (i) Indebtedness to the Agent
and/or the Lenders arising under the Credit Documents, (ii) Indebtedness of Credit Parties
and their Subsidiaries existing as of the date hereof set forth in Section 6.1(a) of the
Disclosure Schedule hereto and any refinancings, renewals, or extensions (but not increases)
thereof, (iii) Indebtedness in respect of taxes or other governmental charges contested in
good faith by appropriate proceedings and for which such Credit Party or Subsidiary has made
appropriate reserves, (iv) Indebtedness of the Credit Parties and their Subsidiaries
incurred under Capital Leases entered into in the ordinary course of business in an
aggregate amount not to exceed, together with all amounts under all Operating Leases,
$8,000,000 on any date of determination, (v) Indebtedness in RMB which is entirely secured
by a Dollar deposit and which is incurred solely for the purpose of converting Dollars into
RMB required for working capital purposes in the PRC, (vi) unsecured Indebtedness of a
Credit Party owing to a Subsidiary of any Credit Party which is subordinated to the
Obligations pursuant to a subordination agreement in form and substance satisfactory to the
Agent in its reasonable discretion; (vii) unsecured Indebtedness of any Credit Party owing
to any other Credit Party which is subordinated to the Obligations pursuant to a
subordination agreement in form and substance satisfactory to the Agent in its reasonable
discretion; (viii) unsecured Indebtedness of any Subsidiary that is not a Credit Party or a
Subsidiary of a Credit Party owing to any other Subsidiary that is not a Credit Party or a
Subsidiary of a Credit Party; (ix) Indebtedness of the Credit Party’s Subsidiaries that are
not Media Companies constituting ordinary course working capital lines of credit not to
exceed in the aggregate $5,000,000 for all such

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Subsidiaries, and which is not guaranteed by, or secured by any assets of, any of the
Credit Parties or Media Companies, or (x) trade or other similar Indebtedness on normal
commercial terms incurred in the ordinary course of business and payable within 90 days (the
Indebtedness described in clauses (i) through (x) of this paragraph, collectively, the
“Permitted Indebtedness”).

     (b) Liens. No Credit Party or any of its Subsidiaries shall create or incur
any Liens on any of the property or assets of such Credit Party or Subsidiary, except (i)
Liens securing the Obligations, (ii) Liens securing taxes or other governmental charges not
yet due or due but contested in good faith by appropriate proceedings and for which such
Credit Party or Subsidiary has made appropriate reserves (so long as the holder of any such
Lien is not taking any active steps to enforce or foreclose on such Lien), (iii) Liens of
landlords, carriers, warehousemen, mechanics and materialmen and other similar statutory
Liens arising in the ordinary course of such Credit Party’s or Subsidiary’s business, less
than 120 days old as to obligations not yet due or due but contested in good faith by
appropriate proceedings and for which such Credit Party or Subsidiary has made appropriate
reserves (so long as the holder of any such Lien is not taking any active steps to enforce
or foreclose on such Lien), (iv) easements, rights of way, zoning restrictions and similar
minor Liens which individually and in the aggregate could not reasonably be expected to have
a Material Adverse Effect on the Borrower and/or any Credit Party or Subsidiary, (v) Liens
existing as of the date hereof set forth in Section 6.1(b) of the Disclosure Schedule hereto
and (vi) Liens securing Indebtedness permitted under Section 6.1(a)(vii) so long as such
Liens do not cover any assets of any Credit Party or Media Company (the liens described in
clauses (i) through (vi) of this paragraph, the “Permitted Liens”).

     (c) Sales and Lease-Backs. No Credit Party shall directly or indirectly,
become or remain liable as lessee or as a guarantor or other surety with respect to any
lease of any property where the market value of such property or the aggregate obligations
are in excess of $250,000 (whether real, personal or mixed), whether now owned or hereafter
acquired, which such Credit Party (i) has sold or transferred or is to sell or to transfer
to any other Person (other than the Borrower or any other Credit Party), or (ii) intends to
use for substantially the same purpose as any other property which has been or is to be sold
or transferred by such Credit Party to any Person (other than the Borrower or any other
Credit Party) in connection with such lease.

     (d) Transactions with Shareholders and Affiliates. No Credit Party shall
directly or indirectly, enter into or permit to exist any transaction (including the
purchase, sale, lease or exchange of any property or the rendering of any service, but
excluding the transactions contemplated by this Agreement and purchase agreements in
connection therewith) between a Significant Person and the Borrower or any of its
Subsidiaries except (i) transactions between the Borrower and any of its wholly owned
Subsidiaries, (ii) transactions between any wholly-owned Subsidiaries of the Borrower and
(iii) those transactions that are (A) on terms no less favorable to the Borrower or such
Credit Party, as the case may be, than those that generally might be obtained at the time
from a Person who is not such a holder or an Affiliate and (B) approved by the board of
directors of the Borrower or such Credit Party; provided, the foregoing restriction
shall not apply to

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compensation and expense reimbursement arrangements for directors, officers and other
employees of the Credit Parties entered into in the ordinary course of business.

     (e) Investments. No Credit Party or any of its Subsidiaries shall make any
Investments other than Investments in:

     (i) Cash and Cash equivalents;

     (ii) ownership by the Borrower or any of its Subsidiaries of the Capital Stock
of their existing or hereafter created or, with the prior written consent of the
Agent, acquired Subsidiaries;

     (iii) Indebtedness owing to the Borrower from any of its Subsidiaries;

     (iv) existing Investments set forth in Section 6.1(e) of the Disclosure
Schedule hereto;

     (v) Investments consisting of accounts and promissory notes created, acquired
or made and trade credit extended in the ordinary course of business and payable or
dischargeable in accordance with customary trade terms consistent with past
practice, provided, that upon receipt of such Investments, such Credit Party shall
take all actions reasonably necessary to ensure that such Investment is subject to
the first priority Lien of the Agent;

     (vi) Investments consisting of stock, obligations, securities or other property
received in settlement of accounts from financially troubled obligors in the
ordinary course of business in an aggregate amount not to exceed $1,000,000 at the
time when such Investments were made; provided, that upon receipt of such
Investments, such Credit Party shall take all actions reasonably necessary to ensure
that such Investment is subject to the first priority Lien of the Agent;

     (vii) Investments consisting of non-cash consideration received in connection
with a disposition permitted under Section 6.1(g) hereof; and

     (viii) such other Investments as the Agent may from time to time approve in
writing (each of (i) through (viii) above, a “Permitted Investment”).

     (f) Certain Agreements. If any of the Credit Parties shall create or assume
any Lien upon any of its properties or assets, whether now owned or hereafter acquired,
other than Permitted Liens, it shall make or cause to be made effective provision whereby
the Obligations will be secured by such Lien equally and ratably with any and all other
Indebtedness secured thereby as long as any such Indebtedness shall be so secured;
provided, notwithstanding the foregoing, this covenant shall not be construed as a
consent by the Lenders to the creation or assumption of any such Lien not otherwise
permitted hereby. Except with respect to (i) specific property encumbered to secure payment
of particular Indebtedness or to be sold pursuant to an executed agreement with respect to a
permitted Asset Sale and (ii) restrictions by reason of customary provisions restricting
assignments, subletting or other transfers contained in leases, licenses and similar

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agreements entered into in the ordinary course of business (provided, that such
restrictions are limited to the property or assets secured by such Liens or the property or
assets subject to such leases, licenses or similar agreements, as the case may be), neither
the Borrower nor any of its Subsidiaries shall enter into any agreement prohibiting the
creation or assumption of any Lien upon any of its properties or assets, whether now owned
or hereafter acquired.

     (g) Mergers; Asset Sales. Neither the Borrower nor any other Credit Party
shall (i) become party to a merger or consolidation, (ii) sell, lease or otherwise dispose
of assets, other than (A) disposals (other than those described in clauses (C) and (D)
below) of assets that do not constitute Media Assets, not to exceed in the aggregate
$1,000,000 per Fiscal Year and (B) disposals of obsolete, worn-out or surplus property, (C)
the sale of all of the Borrower’s equity interest in Hyperlink E-data International Ltd., a
British Virgin Islands company, so long as the Borrower receives Net Cash Proceeds from such
sale in excess of $10,000,000, and such Net Cash Proceeds are used to pay the Earn-Out
Consideration, and (D) the sale of all of the Borrower’s equity interest in, or the sale of
all or substantially all of the assets of, the Convey Companies, so long as the Borrower
receives Net Cash Proceeds from such sale in excess of $50,000,000 and such Net Cash
Proceeds are used to pay the Earn-Out Consideration, (iii) make any changes in the corporate
structure or identity of the Borrower or any other Credit Party which has a Material Adverse
Effect on the Borrower and/or such Credit Party or (iv) enter into any agreement to do any
of the foregoing; provided, that, any Credit Party (other than the Borrower) may
merge with and into the Borrower or any other Credit Party upon not less than twenty (20)
days’ prior written notice to the Agent of such merger. For the avoidance of doubt, sales
and other dispositions of assets which either are not prohibited by this Section 6.1(g) or
are expressly consented to by the Agent shall be deemed permitted sales of assets for all
purposes of this Agreement, including, without limitation, Section 11.1(e)

     (h) Fiscal Year; Fiscal Quarter. Neither the Borrower nor any of its
Subsidiaries shall change its or any of its Subsidiaries’ fiscal year or fiscal quarter
without the prior written consent of the Required Lenders, which consent shall not be
unreasonably withheld.

     (i) Restricted Payments. Neither the Borrower nor any other Credit Party
shall, directly or indirectly, declare, order, pay, make or set apart any sum for (i) any
Restricted Junior Payment or (ii) Indebtedness owed to any Affiliate of a Credit Party other
than payments made to the Borrower or a wholly-owned Subsidiary in respect of Permitted
Indebtedness.

     (j) Operating Leases. Neither the Borrower nor any of its Subsidiaries shall
enter into Operating Leases, except Operating Leases incurred is the ordinary course of
business in an aggregate amount not to exceed, together with all amounts under all Capital
Leases, $8,000,000 on any date of determination.

     (k) Subsidiaries. Neither the Borrower nor any other Credit Party shall form,
cause or permit to be formed or cause or permit to exist, any other Foreign Subsidiary,

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unless (i) such Foreign Subsidiary does not (directly or indirectly) hold any Media
Asset and does not (directly or indirectly) hold any outstanding shares of Capital Stock of
a Subsidiary which is party to an Internal Control Agreement or (ii) if such Foreign
Subsidiary directly or indirectly holds any Media Assets or directly or indirectly holds any
outstanding shares of Capital Stock of a Subsidiary which is party to an Internal Control
Agreement, such Foreign Subsidiary is wholly-owned by a Credit Party and (x) all property
and assets of such newly formed Foreign Subsidiary and (y) all stock of any class of such
newly formed Foreign Subsidiary, in each case, are pledged to the Agent for the benefit of
the Agent and Lenders in accordance with the terms hereof and of the Collateral Documents.

     (l) [Reserved]

     (m) Organizational Documents. From and after the Closing Date, neither the
Borrower nor any other Credit Party shall agree to any material amendment, restatement,
supplement or other modification to, or waiver of any provision in the Articles of
Association in a manner adverse to the rights of any Lender, without in each case obtaining
the prior written consent of Requisite Lenders to such amendment, restatement, supplement or
other modification or waiver.

     (n) Bankruptcy. Neither the Borrower nor any other Credit Party shall
institute any proceeding seeking to adjudicate it bankrupt or insolvent, or seeking
liquidation, winding up, reorganization, arrangement, adjustment, protection, relief or
composition of it or its debts under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seek the entry of an order for relief or the
appointment of a receiver, trustee, custodian or other similar official for it or for any of
its assets, or make a general assignment for the benefit of creditors.

     (o) Liquidation or Dissolution. No Credit Party shall seek, or cause or
permit, the liquidation, dissolution or winding up of such Credit Party.

     (p) Restrictions on Subsidiary Distributions. Except as provided herein, none
of the Borrower, or any other Credit Party shall, nor shall it permit any of the Media
Companies to, create or otherwise cause or suffer to exist or become effective any
consensual encumbrance or restriction of any kind on the ability of any Media Company to
(i) pay dividends or make any other distributions on any of such Media Company’s Capital
Stock owned by the Borrower or any other Subsidiary of the Borrower, (ii) repay or prepay
any Indebtedness owed by such Media Company to the Borrower or any other Subsidiary of the
Borrower, (iii) make loans or advances to the Borrower or any other Subsidiary of any
Borrower, or (iv) transfer any of its property or assets to the Borrower or any other
Subsidiary of the Borrower, other than restrictions (A) in agreements evidencing
Indebtedness permitted by Section 6.1(a)(ii) that impose restrictions on the property so
acquired, (B) by reason of customary provisions restricting assignments, subletting or other
transfers contained in leases, licenses, joint venture agreements and similar agreements
entered into in the ordinary course of business, (C) any Permitted Lien or any document or
instrument governing any Permitted Lien; provided that any such restriction contained
therein relates only to the asset or assets subject to such

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Permitted Lien or (D) that are or were created by virtue of any transfer of, agreement
to transfer or option or right with respect to any property, assets or Capital Stock not
otherwise prohibited under this Agreement.

     (q) Media Assets. To the extent any of the Media Assets are held by a Domestic
Subsidiary, such Domestic Subsidiary shall not incur any Indebtedness other than Permitted
Indebtedness or Liens against its assets other than Permitted Liens.

     Section 6.2 Financial Covenants. The Borrower covenants and agrees that so long as
any Loan is outstanding and until the payment in full of the Obligations, it shall perform and
shall cause of each of its Subsidiaries to perform, all covenants in this Section 6.2.

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

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Minimum	 	 	 	 
	 	 	Consolidated	 	Minimum Interest	 	Maximum Leverage
	                      Fiscal Quarter Ending	 	EBITDA	 	Coverage Ratio	 	Ratio
	4th
Fiscal Quarter
ending in Fiscal
Year 2008
	 	$	25,480,000	 	 	 	5.03 : 1	 	 	 	3.23 : 1	 
	1st Fiscal Quarter
ending in Fiscal
Year 2009
	 	$	25,603,000	 	 	 	3.48 : 1	 	 	 	4.61 : 1	 
	2nd Fiscal Quarter
ending in Fiscal
Year 2009
	 	$	26,031,000	 	 	 	2.72 : 1	 	 	 	4.54 : 1	 
	3rd Fiscal Quarter
ending in Fiscal
Year 2009
	 	$	29,417,000	 	 	 	2.72 : 1	 	 	 	4.02 : 1	 
	4th Fiscal Quarter
ending in Fiscal
Year 2009
	 	$	33,298,000	 	 	 	2.85 : 1	 	 	 	3.55 : 1	 
	1st Fiscal Quarter
ending in Fiscal
Year 2010
	 	$	33,555,000	 	 	 	2.87 : 1	 	 	 	3.52 : 1	 
	2nd Fiscal
Quarter ending in Fiscal
Year 2010
	 	$	34,450,000	 	 	 	2.94 : 1	 	 	 	3.43 : 1	 
	3rd Fiscal Quarter
ending in Fiscal
Year 2010
	 	$	35,464,000	 	 	 	3.03 : 1	 	 	 	3.33 : 1	 
	4th Fiscal
Quarter ending in Fiscal
Year 2010
	 	$	36,627,000	 	 	 	3.13 : 1	 	 	 	3.23 : 1	 
	1st Fiscal Quarter
ending in Fiscal
Year 2011
	 	$	36,911,000	 	 	 	3.15 : 1	 	 	 	3.20 : 1	 

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	 	 	Minimum	 	 	 	 
	 	 	Consolidated	 	Minimum Interest	 	Maximum Leverage
	                      Fiscal Quarter Ending	 	EBITDA	 	Coverage Ratio	 	Ratio
	2nd Fiscal Quarter
ending in Fiscal
Year 2011
	 	$	37,895,000	 	 	 	3.24 : 1	 	 	 	3.12 : 1	 
	3rd Fiscal Quarter
ending in Fiscal
Year 2011
	 	$	39,010,000	 	 	 	3.33 : 1	 	 	 	3.03 : 1	 
	4th Fiscal Quarter
ending in Fiscal
Year 2011
	 	$	39,650,000	 	 	 	3.39 : 1	 	 	 	2.98 : 1	 
	1st Fiscal Quarter
ending in Fiscal
Year 2012
	 	$	39,806,000	 	 	 	3.40 : 1	 	 	 	2.97 : 1	 
	2nd Fiscal Quarter
ending in Fiscal
Year 2012
	 	$	40,347,000	 	 	 	3.45 : 1	 	 	 	2.93 : 1	 
	3rd Fiscal Quarter
ending in Fiscal
Year 2012
	 	$	40,961,000	 	 	 	3.50 : 1	 	 	 	2.88 : 1	 

     (b) Minimum Cash Balance. The Borrower shall not permit the amount of cash and
cash equivalents for the Borrower and its Subsidiaries, determined on a consolidated basis
and in accordance with GAAP, to be less than $5,000,000 at any time.

     (c) Certain Calculations. With respect to any period during which Permitted
Investment or an Asset Sale has occurred, for purposes of determining compliance with the
financial covenants set forth in this Section 6.2, Consolidated EBITDA shall be calculated
with respect to such period on a pro forma basis (including pro forma adjustments arising
out of events which are directly attributable to a specific transaction, are factually
supportable and are expected to have a continuing impact, in each case determined on a basis
consistent with Article 11 of Regulation S-X promulgated under the Securities Act and as
interpreted by the staff of the Securities and Exchange Commission, which would include cost
savings resulting from head count reduction, closure of facilities and similar restructuring
charges, which pro forma adjustments shall be certified by the chief financial officer of
the Borrower) using the historical audited financial statements of any business so acquired
or to be acquired or sold or to be sold and the consolidated financial statements of the
Borrower and its Subsidiaries which shall be reformulated as if such Permitted Investment or
Asset Sale and any Indebtedness incurred or repaid in connection therewith, had been
consummated or incurred or repaid at the beginning of such period (and assuming that such
Indebtedness bears interest during any portion of the applicable measurement period prior to
the relevant acquisition at the weighted average of the interest rates applicable to
outstanding Loans incurred during such period).

ARTICLE VII

Increased Costs, Taxes, Indemnification; Set Off; Etc.

     Section 7.1 Increased Costs; Capital Adequacy. In the event that the adoption,
effectiveness, phase in or applicability after the Closing Date of any law, rule or Regulation (or
any provision thereof) regarding capital adequacy, or any change therein or in the interpretation
or administration thereof by any Governmental Body, central bank or comparable agency charged with
the interpretation or administration thereof has or would have the effect of reducing the rate of
return on the capital of such Lender or any company controlling such Lender as a consequence of, or
with reference to, such Lender’s Loans or Commitments or other obligations

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hereunder with respect to the Loans to a level below that which such Lender or such
controlling company could have achieved but for such adoption, effectiveness, phase in,
applicability, change or compliance (taking into consideration the policies of such Lender or such
controlling corporation with regard to capital adequacy), then from time to time, within five (5)
Business Days after receipt by the Borrower from such Lender of the statement referred to in the
next sentence, the Borrower shall pay to such Lender such additional amount or amounts as will
compensate such Lender or such controlling, corporation on an after Tax basis for such reduction.
Such Lender shall deliver to the Borrower (with a copy to Agent) a written statement, setting forth
in reasonable detail the basis for calculating the additional amounts owed to Lender under this
Section 7.1, which statement shall be conclusive and binding, upon all parties hereto absent
manifest error. This provision shall not apply to the extent any such increased cost is
attributable to the willful breach or gross negligence by the Lender or its Affiliates in respect
of any law or regulation.

     Section 7.2 Taxes; Withholding, Etc.

     (a) Payments to Be Free and Clear. All sums payable by any Credit Party
hereunder and under the other Credit Documents shall (except to the extent required by law)
be paid free and clear of, and without any deduction or withholding on account of, any Tax
(other than a Tax on the overall net income of any Lender) imposed, levied, collected,
withheld or assessed by or within the United States of America or any political subdivision
in or of the United States of America or any other jurisdiction from or to which a payment
is made by or on behalf of any Credit Party or by any federation or organization of which
the United States of America or any such jurisdiction is a member at the time of payment.

     (b) Withholding of Taxes. If any Credit Party or any other Person is required
by law to make any deduction or withholding on account of any such Tax from any sum paid or
payable by any Credit Party to the Agent or any Lender under any of the Credit Documents:
(i) the Borrower shall notify the Agent of any such requirement or any change in any such
requirement as soon as the Borrower becomes aware of it, (ii) the Borrower shall pay any
such Tax before the date on which penalties attach thereto, such payment to be made (if the
liability to pay is imposed on any Credit Party) for its own account or (if that liability
is imposed on the Agent or such Lender, as the case may be) on behalf of and in the name of
the Agent or such Lender, (iii) the sum payable by such Credit Party in respect of which the
relevant deduction, withholding or payment is required shall be increased to the extent
necessary to ensure that, after the making of that deduction, withholding or payment, the
Agent or such Lender, as the case may be, receives on the due date a net sum equal to what
it would have received had no such deduction, withholding or payment been required or made,
and (iv) within thirty (30) days after paying any sum from which it is required by law to
make any deduction or withholding, and within thirty (30) days after the due date of payment
of any Tax which it is required by clause (ii) above to pay, the Borrower shall deliver to
the Agent evidence satisfactory to the other affected parties of such deduction, withholding
or payment and of the remittance thereof to the relevant taxing or other authority.

     (c) [Reserved]

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Section 7.3 Indemnification.

     (a) Indemnification by the Borrower. The Borrower and each Credit Party will
indemnify and defend the Agent, the Lenders and each of their respective shareholders,
partners, members, managers, directors, officers, employees, agents, attorneys and
Affiliates (collectively, the “Indemnified Persons”) against and hold each
Indemnified Person harmless from any and all liabilities, obligations, losses, damages,
costs, expenses, claims, penalties, Actions, judgments, disbursements of any kind or nature
whatsoever, interest, fines, cleanup costs, settlements, costs of preparation and
investigation, costs incurred in enforcing this indemnity and reasonable attorneys’ fees and
expenses (collectively, “Losses”), that the Indemnified Persons may incur, suffer,
sustain or become subject to arising out of, relating to, or due to (i) any inaccuracy or
breach of any of the representations and warranties of any Credit Party contained in any
Credit Document or in any certificate delivered thereunder, (ii) the nonfulfillment or
breach of any covenant, undertaking, agreement or other obligation of any Credit Party
contained in any Credit Document or in any certificate delivered thereunder, (iii) any
Environmental Liability, and/or (iv) any use of proceeds of any Loans; provided that such
indemnity shall not, as to any Indemnified Person, be available to the extent such Losses
arise out of the gross negligence or willful misconduct of such Indemnified Person. Upon
request of an Indemnified Person, the Borrower shall retain counsel reasonably satisfactory
to the Indemnified Person to represent the Indemnified Person in connection with any Losses
or threatened Losses and shall pay the reasonable fees and disbursements of such counsel.
The Indemnified Person shall have the right to employ its own counsel at the expense of the
Borrower if (i) the employment of counsel by the Indemnified Person at the Borrower’s
expense has been authorized in writing by the Borrower, (ii) the Borrower has not in fact
employed counsel to represent the Indemnified Person within a reasonable time after
receiving notice of a request for the retention of counsel or (iii) both the Indemnified
Person and the Borrower are implicated with respect to the Losses or the threatened Losses,
and representation of both parties by the same counsel would be inappropriate due to actual
or potential differing interests between them, in each of which cases the reasonable fees
and expenses of counsel (including local counsel) will be at the expense of the Borrower,
and all such fees and expenses will be reimbursed promptly as they are incurred.

     (b) Contribution. If the indemnification provided for in this Section 7.3 is
prohibited under applicable Regulations to an Indemnified Person, then the Borrower and each
Credit Party, in lieu of indemnifying the Indemnified Person, will contribute to the amount
paid or payable by the Indemnified Person as a result of the Losses in such proportion as is
appropriate to reflect the relative fault of Borrower, on the one hand, and of the
Indemnified Person, on the other, in connection with the events or circumstances which
resulted in the Losses as well as any other relevant equitable considerations.

     Section 7.4 Right of Set Off. In addition to any rights now or hereafter granted
under applicable law and not by way of limitation of any such rights, upon the occurrence of any
Event of Default each Lender and the Agent are hereby authorized by each Credit Party at any time
or from time to time, without notice to any Credit Party or to any other Person, any such notice
being hereby expressly waived, to set off and to appropriate and to apply any and all deposits

64

 

(general or special, including Indebtedness evidenced by certificates of deposit, whether
matured or unmatured, but not including trust accounts) and any other Indebtedness at any time held
or owing by such Lender or the Agent to or for the credit or the account of any Credit Party
against and on account of the Obligations of any Credit Party to such Lender or the Agent
hereunder, irrespective of whether or not (a) such Lender or the Agent shall have made any demand
hereunder or (b) the principal of or the interest on the Loans or any other amounts due hereunder
or the other Credit Documents shall have become due and payable and although such obligations and
liabilities, or any of them, may be contingent or unmatured.

     Section 7.5 Funding Breakage. In addition to the compensation required under Section
7.1, the Borrower shall pay all reasonable administrative fees charged by Lender and indemnify each
Lender against any loss or expense (including loss of margin) which such Lender has incurred as a
consequence of any payment or prepayment of any Loan on a day other than the last day of the
corresponding Interest Period (whether or not such payment is mandatory or automatic and whether or
not such payment or prepayment is then due).

     If any Lender sustains or incurs any such loss or expense or if any Lender has charged the
Borrower for an administrative expense it shall from time to time promptly notify the Borrower and
the Agent in writing setting forth in reasonable detail the amount determined in good faith by such
Lender (such determination shall be conclusive absent manifest error) to be necessary to indemnify
such Lender for such loss or expense and the amount of such administrative expense. Such amount
shall be due and payable by the Borrower to the Agent for the account of such Lender, five (5)
Business Days after such notice is given.

     Section 7.6 Mitigation. The Lenders shall, in consultation with the Borrower, take
reasonable steps to mitigate any circumstances which arise and which would result in any amount
becoming payable under or pursuant to, or cancelled pursuant to, any of Section 2.13 (Changed
Circumstances), Section 7.1 (Increased Costs; Capital Adequacy), Section 7.2 (Taxes; Withholding,
etc.) or Section 7.5 (Funding Breakage) including (but not limited to) transferring its rights and
obligations under the Credit Documents to another then-existing Affiliate of Lender;
provided, that no Lender shall be required to take any action that would require such
Lender to incur or increase any cost or would have any adverse economic effect on such Lender.

ARTICLE VIII

Events of Default

     Section 8.1 Events of Default. Any one or more of the following events which shall
occur and be continuing shall constitute an “Event of Default”:

     (a) Failure to Make Payments When Due. Failure by the Borrower to pay when due
any installment of principal of, or interest on, the Loans, whether at stated maturity, by
acceleration, by notice of voluntary prepayment, by mandatory prepayment or otherwise, or
any fee or any other amount due hereunder, and such failure, except in respect of principal,
is continuing two (2) Business Days after the date due therefor unless both (i) such failure
to pay is caused by administrative or technical error and (ii) payment is made within ten
(10) Business Days of its due date;

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     (b) Breach of Certain Covenants. Failure of any Credit Party to perform or
comply with any term or condition contained in Section 2.5 or Article VI;

     (c) Breach of Representations, Etc. Any representation, warranty,
certification or other statement made or deemed made by any Credit Party in any Credit
Document or in any statement or certificate at any time given by any Credit Party or any of
its Subsidiaries in writing, pursuant hereto or thereto or in connection herewith or
therewith shall be false in any material respect as of the date made or deemed made or, if
the circumstances giving rise to the false representation, warranty, certification or other
statement are capable of modification or rectification such that thereafter the
representation, warranty, certification or other statement would be correct, the
representation, warranty, certification or other statement shall be false in any material
respect as of the date that is thirty (30) days from the date when originally made or deemed
made;

     (d) Other Defaults Under Credit Documents. Any Credit Party shall default in
the performance of or compliance with any term contained herein or any of the other Credit
Documents, other than any such term referred to in any other section of this Section 8.1,
and such default shall not have been remedied or waived within ten (10) days after the
earlier of (i) the date upon which an Authorized Officer of the Borrower had Knowledge of
such default and (ii) the date upon which written notice thereof is given to the Borrower by
the Agent or any Lender;

     (e) Default Under Other Indebtedness. (i) Failure of any Credit Party to pay
when due any principal of or interest on or any other amount payable in respect of one or
more items of Indebtedness beyond the grace period, if any, provided therefor, (ii) breach
or default by any Credit Party with respect to one or more items of Indebtedness, without
cure or waiver within the grace period, if any, provided therefor, if the effect of such
breach or default is to cause, or permit the holder or holders of such Indebtedness (or a
trustee on behalf of such holder or holders) to cause, such Indebtedness to be declared or
otherwise become due and payable (or redeemable) prior to its scheduled maturity or the
stated maturity of any underlying obligation or (iii) any creditor of any Credit Party
declares any Indebtedness of any Credit Party due and payable prior to its scheduled
maturity as a result of an event of default (however described); provided,
however, that (A) no Event of Default shall occur under this Section 8.1(e) if the
aggregate amounts payable under subsections (i) to (iii) above is less than $500,000 (or its
equivalent in any other currency or currencies) and (B) the asserted failure of, breach or
default by the Borrower under, or declaration by UBS AG under, the UBS Loan solely as a
result of the lending value of the $25 million unsecured principal protected note due
January 30, 2009 issued by Lehman Brothers Holdings Inc. to the Borrower, which is pledged
as collateral for the UBS Loan, falling (or being asserted to fall) below the lending value
required by UBS AG shall not be an Event of Default under this Section 8.1(e);

     (f) Involuntary Bankruptcy, Appointment of Receiver, Etc. (i) A court of
competent jurisdiction shall enter a decree or order for relief in respect of the Parent,
the Borrower or any of Borrower’s Subsidiaries in an involuntary case under the Bankruptcy
Code or under any other applicable bankruptcy, insolvency or similar law now or

66

 

hereafter in effect, which decree or order is not stayed, or any other similar relief
shall be granted under any applicable federal or state law, or (ii) an involuntary case
shall be commenced against the Parent, the Borrower or any of Borrower’s Subsidiaries under
the Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law now
or hereafter in effect, or a decree or order of a court having jurisdiction in the premises
for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other
officer having similar powers over the Parent, the Borrower or any of Borrower’s
Subsidiaries, or over all or a substantial part of its property, shall have been entered; or
there shall have occurred the involuntary appointment of an interim receiver, trustee or
other custodian of the Parent, the Borrower or any of Borrower’s Subsidiaries for all or a
substantial part of its property or a warrant of attachment, execution or similar process
shall have been issued against any substantial part of the property of the Parent, the
Borrower or any of Borrower’s Subsidiaries, and any such event described in this clause (ii)
shall continue for sixty (60) days without having been dismissed, bonded or discharged;

     (g) Voluntary Bankruptcy, Appointment of Receiver, Etc. (i) The Parent, the
Borrower or any of Borrower’s Subsidiaries shall have an order for relief entered with
respect to it or shall commence a voluntary case under the Bankruptcy Code or under any
other applicable bankruptcy, insolvency or similar law now or hereafter in effect, or shall
consent to the entry of an order for relief in an involuntary case, or to the conversion of
an involuntary case to a voluntary case, under any such law, or shall consent to the
appointment of or taking possession by a receiver, trustee or other custodian for all or a
substantial part of its property; or the Parent, the Borrower or any of Borrower’s
Subsidiaries shall make any assignment for the benefit of creditors, or (ii) the Parent, the
Borrower or any of Borrower’s Subsidiaries shall be unable, or shall fail generally, or
shall admit in writing its inability, to pay its debts as such debts become due; or the
board of directors (or similar governing body) of the Parent, the Borrower or any of
Borrower’s Subsidiaries (or any committee thereof) shall adopt any resolution or otherwise
authorize any action to approve any of the actions referred to herein or in Section 8.1(1);

     (h) Judgments and Attachments. Any money judgment, writ or warrant of
attachment or similar process involving (i) in any individual case an amount in excess of
$500,000 or (ii) in the aggregate at any time an amount in excess of $1,000,000 (in either
case to the extent not adequately covered by insurance as to which a solvent and
unaffiliated insurance company has acknowledged coverage) shall be entered or filed against
the Borrower or any of its Subsidiaries or any of their respective assets and shall remain
undischarged, unvacated, unbonded or unstayed for a period of thirty (30) days (or in any
event later than five (5) days prior to the date of any proposed sale thereunder);

     (i) Dissolution. Any order, judgment or decree shall be entered against any
Credit Party decreeing the dissolution or split up of the Parent, the Borrower or any of
Borrower’s Subsidiaries and such order shall remain undischarged or unstayed for a period in
excess of ten (10) days;

     (j) Collateral Documents and other Credit Documents. At any time after the
execution and delivery thereof, (i) this Agreement or any Credit Document ceases to be

67

 

in full force and effect (other than by reason of a release of Collateral in accordance
with the terms hereof or thereof or the satisfaction in full of the Obligations in
accordance with the terms hereof) or shall be declared null and void, or the Agent shall not
have or shall cease to have a valid and perfected first priority Lien, subject only to
Permitted Liens, in any material portion of Collateral purported to be covered by the
Collateral Documents or (ii) any Credit Party shall contest the validity or enforceability
of any Credit Document in writing or deny in writing that it has any further liability under
any Credit Document to which it is a party;

     (k) UBS Loan. Any circumstance relating to the UBS Loan causes a breach or
default by any Credit Party under any agreement to which any Credit Party is a party, which
agreement requires in excess of an aggregate of $500,000 in liability, benefit or payment to
or from such Credit Party, and the effect of such breach or default is to permit the other
party or parties to such agreement to terminate such agreement, accelerate any payments due
from any Credit Party under such agreement, take away, or lower the amount of, any payments
due to any Credit Party under such agreement, or otherwise exercise its remedies under such
agreement for a breach or default by any Credit Party;

     (l) Securities Litigation. Any Credit Party is required or agrees to make any
payment in an amount either individually or in the aggregate in excess of $1,000,000 (to the
extent not adequately covered by insurance as to which a solvent and unaffiliated insurance
company has acknowledged coverage) with respect to the Securities Litigation, or any
circumstances relating to the Securities Litigation causes a breach or default by any Credit
Party under any agreement to which any Credit Party is a party, which agreement requires in
excess of an aggregate of $500,000 in liability, benefit or payment to or from such Credit
Party, and the effect of such breach or default is to permit the other party or parties to
such agreement to terminate such agreement, accelerate any payments due from any Credit
Party under such agreement, take away, or lower the amount of, any payments due to any
Credit Party under such agreement, or otherwise exercise its remedies under such agreement
for a breach or default by any Credit Party;

     (m) [Reserved]

     (n) Internal Control Agreements. At any time after the execution and delivery
thereof any Internal Control Agreement ceases to be in full force and effect (other than by
its terms) or shall be declared null and void, except where such cessation or declaration
would not result in a Material Adverse Effect; or

     (o) Breach of Conversion, Listing or ADS Insurance Obligation. Failure by the
Borrower to deliver Loan Shares upon conversion (or attempted conversion) by any Lender
pursuant to, and in accordance with Section 10.1, to maintain the listing of the ADSs
pursuant to Section 5.19(r) or to issue in the name of any requesting Lender ADSs pursuant
to Section 5.1(s), in each case, and such failure is continuing and not waived by the
Required Lenders five (5) days after the date such term or condition should have been
performed or complied with.

     Section 8.2 Remedies. Upon and after the occurrence of an Event of Default:

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     (a) Certain Remedies. The Borrower shall immediately pay to each Lender an
amount equal to the Loan Payment Amount (determined as of the date of the Event of Default)
for such Lender, provided, that such Lender may reject any such payment of the Loan
Payment Amount and instead elect to convert its Loans into Borrower Common Shares pursuant
to Article X hereof. The Borrower shall provide five (5) Business Days prior written notice
(if possible) to the Agent of its intent pursuant to this Section 8.2(a) to pay the Loan
Payment Amount, and the Agent shall have three (3) Business Days from the date it receives
such notice from the Borrower to elect to convert into Borrower Common Shares pursuant to
Article X hereof. For purposes of clarification, if any Lender elects to convert to
Borrower Common Shares pursuant to Article X hereof, the Borrower shall not have to pay the
Loan Payment Amount. If the Borrower fails to pay the Loan Payment Amount or deliver the
Borrower Common Shares, as the case may be, to each Lender on the date of the Event of
Default, then (in addition to all other remedies) interest shall accrue on the Loan Payment
Amount and the Loans, respectively, at the Default Rate, and all amounts due shall
thereafter be payable on demand.

     (b) Remedies in All Events of Default. The Agent shall, at the request of or
with the consent of the Required Lenders, (i) exercise all rights and remedies provided in
the Credit Documents, (ii) exercise any right of counterclaim, setoff, banker’s lien or
otherwise which it may have with respect to money or property of the Borrower, (iii) bring
any lawsuit, action or other proceeding permitted by law for the specific performance of, or
injunction against any violation of, any Credit Document and may exercise any power granted
under or to recover judgment under any Credit Document, (iv) enforce any and all Liens and
security interests created pursuant to the Credit Documents, and (v) exercise any other
right or remedy permitted by applicable Regulations or otherwise available to the Agent
and/or the Lenders at law, in equity or otherwise.

     (c) Lenders’ Remedies. Unless otherwise directed by the Required Lenders, in
case any one or more of the Events of Default shall have occurred and be continuing, and
whether or not the Lenders shall have accelerated the maturity of the Loans pursuant to
Section 8.2, the Required Lenders, if owed any amounts with respect to the Loans, may
proceed to protect and enforce their rights by suit in equity, action at law or other
appropriate proceeding, whether for the specific performance of any covenant or agreement
contained in this Credit Agreement and the other Credit Documents or any instrument pursuant
to which the Obligations to the Lenders are evidenced, including as permitted by applicable
law the obtaining of the ex parte appointment of a receiver, and, if such amount shall have
become due, by declaration or otherwise, proceed to enforce the payment thereof or any other
legal or equitable right of the such Lenders, but subject to the provisions of Section
9.9(b).

     (d) Remedies Non-Exclusive. No remedy herein conferred upon any Lender or the
Agent or the holder of any Note is intended to be exclusive of any other remedy and each and
every remedy shall be cumulative and shall be in addition to every other remedy given
hereunder or now or hereafter existing at law or in equity or by statute or any other
provision of law.

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ARTICLE IX

The Agent

     Section 9.1 Appointment of Agent. PPAS is hereby appointed the Agent hereunder, and
each Lender hereby authorizes the Agent to act as its agent in accordance with the terms hereof and
the other Credit Documents. The Agent hereby agrees to act upon the express conditions contained
herein and the other Credit Documents, as applicable. The provisions of this Article IX are solely
for the benefit of the Agent and the Lenders and no Credit Party shall have any rights as a third
party beneficiary of any of the provisions thereof. In performing its functions and duties
hereunder, the Agent shall act solely as an agent of the Lenders and does not assume and shall not
be deemed to have assumed any obligation toward or relationship of agency or trust with or for the
Borrower or any of the Credit Parties. The Agent without consent of or notice to any party hereto,
may assign any and all of its rights or obligations hereunder to any of its Affiliates.

     Section 9.2 Powers and Duties. Each Lender irrevocably authorizes the Agent to take
such action on such Lender’s behalf and to exercise such powers, rights and remedies hereunder and
under the other Credit Documents as are specifically delegated or granted to the Agent by the terms
hereof and thereof, together with such powers, rights and remedies as are reasonably incidental
thereto. The Agent shall have only those duties and responsibilities that are expressly specified
herein and the other Credit Documents. The Agent may execute any of its duties under this
Agreement and the other Credit Documents by or through agents or attorneys in fact, or may assign
such duties to its wholly owned nominee without the consent of the Lenders, and shall be entitled
to rely on advice of counsel concerning all matters pertaining to such duties. The Agent shall not
have, by reason hereof or any of the other Credit Documents, a fiduciary relationship in respect of
any Lender and nothing herein or any of the other Credit Documents, expressed or implied, is
intended to or shall be so construed as to impose upon the Agent any obligations in respect hereof
or any of the other Credit Documents except as expressly set forth herein or therein.

     Section 9.3 Delegation of Duties. The Agent may execute any of its duties under this
Agreement or any other Credit Document by or through third parties, agents, employees or attorneys
in fact (any such entity, a “Sub-Agent”) or may assign such duties to its wholly owned
nominee without the consent of the Lenders, and shall be entitled to advice of counsel concerning
all matters pertaining to such duties. The Agent shall not be responsible for the negligence or
misconduct of any Sub-Agent that it selects as long as such selection was made with reasonable
care. The Borrower and each Lender hereby agree that any Sub-Agent appointed hereunder shall be
entitled to the benefit of the provisions of Sections 7.3, 9.2, 9.4, 9.5, 9.6, 9.7, 9.9, 9.10 and
9.11 of this Agreement as if such Sub-Agent is a party to this Agreement.

     Section 9.4 General Immunity.

     (a) No Responsibility for Certain Matters. The Agent shall not be responsible
to any Lender for the execution, effectiveness, genuineness, validity, enforceability,
collectability or sufficiency hereof or any other Credit Document or for any
representations, warranties, recitals or statements made herein or therein or made in any
written or oral statements or in any financial or other statements, instruments, reports or

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certificates or any other documents furnished or made by the Agent to any Lender or by
or on behalf of any Credit Party to the Agent or any Lender in connection with the Credit
Documents and the transactions contemplated thereby or for the financial condition or
business affairs of any Credit Party or any other Person liable for the payment of any
Obligations, nor shall the Agent be required to ascertain or inquire as to the performance
or observance of any of the terms, conditions, provisions, covenants or agreements contained
in any of the Credit Documents or as to the use of the proceeds of the Loans or as to the
existence or possible existence of any Event of Default or Default. Anything contained
herein to the contrary notwithstanding, the Agent shall not have any liability arising from
confirmations of the amount of outstanding Loans.

     (b) Exculpatory Provisions. None of the Agent or any of its officers,
trustees, partners, members, directors, employees, attorneys or agents shall be liable to
the Lenders for any action taken or omitted by the Agent under or in connection with any of
the Credit Documents except to the extent caused by the Agent’s gross negligence or willful
misconduct. The Agent shall be entitled to refrain from any act or the taking of any action
(including the failure to take an action) in connection herewith or any of the other Credit
Documents or from the exercise of any power, discretion or authority vested in it hereunder
or thereunder unless and until the Agent shall have received instructions in respect thereof
from the Required Lenders (or such other Lenders as may be required to give such
instructions under Section 11.1) and, upon receipt of such instructions from the Required
Lenders (or such other Lenders, as the case may be), the Agent shall be entitled to act or
(where so instructed) refrain from acting, or to exercise such power, discretion or
authority, in accordance with such instructions. Without prejudice to the generality of the
foregoing, (i) the Agent shall be entitled to rely, and shall be fully protected in relying,
upon any communication, instrument or document believed by it to be genuine and correct and
to have been signed or sent by the proper Person or Persons, and shall be entitled to rely
and shall be protected in relying on opinions and judgments of attorneys (who may be
attorneys for the Borrower and the other Credit Parties), accountants, experts and other
professional advisors selected by it, and (ii) no Lender shall have any right of action
whatsoever against the Agent as a result of the Agent acting or refraining from acting
hereunder or any of the other Credit Documents in accordance with the instructions of the
Required Lenders (or such other Lenders as may be required to give such instructions under
Section 11.1). The Agent shall be fully justified in failing or refusing to take any action
under this Agreement or any other Credit Document which involves discretionary
decision-making absent express written instructions from the Required Lenders with respect
thereto.

     Section 9.5 Agent Entitled to Act with the Borrower. The Agent and its Affiliates may
accept deposits from, lend money to and generally engage in any kind of banking, trust, financial
advisory or other business with the Borrower or any of its Affiliates as if it were not performing
the duties specified herein, and may accept fees and other consideration from the Borrower for
services in connection herewith and otherwise without having to account for the same to the
Lenders.

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     Section 9.6 Lenders’ Representations, Warranties and Acknowledgment.

     (a) Each Lender represents and warrants that it has made its own independent
investigation of the financial condition and affairs of the Borrower and its Subsidiaries in
connection with Borrowings hereunder and that it has made and shall continue to make its own
appraisal of the creditworthiness of the Borrower and its Subsidiaries. The Agent shall not
have any duty or responsibility, either initially or on a continuing basis, to make any such
investigation or any such appraisal on behalf of the Lenders or to provide any Lender with
any credit or other information with respect thereto, whether coming into its possession
before the making of the Loans or at any time or times thereafter, and the Agent shall not
have any responsibility with respect to the accuracy of or the completeness of any
information provided to the Lenders.

     (b) Each Lender, by delivering its signature page to this Agreement and funding or
holding any of its Loans and accepting its Commitments on the Closing Date, shall be deemed
to have acknowledged receipt of, and consented to and approved, each Credit Document and
each other document required to be approved by the Agent or the Lenders, as applicable on
the Closing Date.

     Section 9.7 Right to Indemnity. Each Lender, in proportion to its Pro Rata Share,
severally (and not jointly) agrees to indemnify the Agent and its stockholders, directors,
officers, employees, agents, attorneys and Affiliates (each an “Indemnified Agent Person”),
to the extent that the Agent shall not have been reimbursed by any Credit Party, for and against
any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses (including attorneys’ fees and disbursements) or disbursements of any kind or nature
whatsoever which may be imposed on, incurred by or asserted against such Indemnified Agent Person
in exercising its powers, rights and remedies or performing its duties hereunder or under the other
Credit Documents or otherwise in its capacity as the Agent in any way relating to or arising out
hereof or in connection with the Credit Documents; provided, no Lender shall be liable for
any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting from the Agent’s gross negligence or willful
misconduct. If any indemnity furnished to the Agent for any purpose shall, in the opinion of the
Agent, be insufficient or become impaired, the Agent may call for additional indemnity and cease,
or not commence, to do the acts indemnified against until such additional indemnity is furnished;
provided, further, in no event shall this sentence require any Lender to indemnify
the Agent against any liability, obligation, loss, damage, penalty, action, judgment, suit, cost,
expense or disbursement in excess of such Lender’s Pro Rata Share thereof, and provided,
further, this sentence shall not be deemed to require any Lender to indemnify the Agent
against any liability, obligation, loss, damage, penalty, action, judgment, suit, cost, expense or
disbursement described in the proviso in the immediately preceding sentence.

     Section 9.8 Successor Agent.

     (a) The Agent may resign at any time by giving not less than ten (10) Business Days
prior written notice thereof to the Lenders and the Borrower. Upon any such resignation,
the Required Lenders shall have the right to appoint a successor Agent, which shall be (i)
one of the Lenders or an Affiliate of one of the Lenders or (ii) a Person

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who would be an eligible successor agent if appointed by the resigning Agent under
Section 9.8(b).

     (b) If no successor Agent shall have been so appointed by the Lenders within ten (10)
Business Days after the resigning Agent’s giving of notice of resignation, then the
resigning Agent may appoint, on behalf of the Borrower and the Lenders, a successor Agent,
which shall be a commercial bank organized under the laws of the United States of America or
of any state thereof and having a combined capital and surplus of at least $250,000,000. In
the event that the Agent is unable to appoint a replacement successor within ten (10)
Business Days after it is entitled to do so after using reasonable efforts, the Agent may
nonetheless resign by delivering a written resignation to the Lenders and the Borrower,
provided that in such circumstances, and unless and until a successor Agent is
appointed, the Agent shall remain the Agent solely for the purpose of serving as secured
party of record with respect to the Collateral, its sole duty in that capacity shall be to
take such ministerial actions as it shall be directed to take by the Lenders (including,
without limitation, the execution and delivery of documents or instruments relating to the
Collateral), and the Agent shall be entitled to reimbursement from the Borrower for its out
of pocket costs and expenses and reasonable compensation from the Borrower for its services.
If the Agent has resigned and no successor Agent has been appointed, subject to the
preceding sentence, the Lenders shall perform the duties of the Agent hereunder, and the
Borrower shall make all payments in respect of the Obligations to the applicable Lender and
shall deal directly with the Lenders.

     (c) No successor Agent shall be deemed to be appointed hereunder until such successor
Agent has accepted the appointment in writing. Upon the acceptance of any appointment as
the Agent hereunder by a successor Agent and upon the execution and filing of such financing
statements, or amendments thereto, and such other instruments and notices, as may be
necessary or desirable or as the Required Lenders may request, in order to continue the
perfection of the Liens granted or purported to be granted under the Collateral Documents,
such successor Agent shall succeed to and become vested with all the rights, powers,
discretion, privileges and duties of the resigning Agent, and the resignation or termination
of the Agent shall then be effective for all purposes. Upon the effectiveness of the
resignation or termination of the Agent, the resigning Agent shall be discharged from its
duties and obligations under the Credit Documents. After the effectiveness of the
resignation or termination of the Agent, the provisions of Section 7.3, Section 10.3 and
this Article IX shall inure to the former Agent’s benefit as to any actions taken or omitted
to be taken by it while it was acting as the Agent under this Agreement.

     Section 9.9 Collateral Documents.

     (a) Agent as the Agent under Collateral Documents. Each Lender hereby further
authorizes the Agent, on behalf of and for the benefit of the Lenders, to be the agent for
and representative of the Lenders with respect to the Collateral and the Collateral
Documents. Subject to Section 11.1, without further written consent or authorization from
the Lenders, the Agent may execute any documents or instruments necessary to release any
Lien encumbering any item of Collateral that is the subject of a

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sale or other disposition of assets permitted hereby or to which the Lenders have
otherwise consented in the manner provided herein.

     (b) Agent’s Right to Realize on Collateral. Anything contained in any of the
Credit Documents to the contrary notwithstanding the Borrower, the Agent and each Lender
hereby agree that (i) no Lender shall have any right individually to realize upon any of the
Collateral, it being understood and agreed that all powers, rights and remedies hereunder
may be exercised solely by the Agent, on behalf of the Lenders in accordance with the terms
hereof, and (ii) in the event of a foreclosure by the Agent on any of the Collateral
pursuant to a public or private sale, the Agent or any Lender may be the purchaser of any or
all of such Collateral at any such sale and the Agent, as agent for and representative of
the Lenders (but not any Lender or Lenders in its or their respective individual capacities
unless the Required Lenders shall otherwise agree in writing) shall be entitled, for the
purpose of bidding and making settlement or payment of the purchase price for all or any
portion of the Collateral sold at any such public sale, to use and apply any of the
Obligations as a credit on account of the purchase price for any collateral payable by the
Agent at such sale.

     Section 9.10 Notice of Default. The Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default or Event of Default hereunder unless the Agent has received
notice from a Lender or a Borrower referring to this Agreement, describing such Default or Event of
Default and stating that such notice is a “notice of default”. In the event that the Agent
receives such a notice, the Agent shall promptly give notice thereof to the Lenders. The Agent
shall take such action with respect to such Default or Event of Default as shall be reasonably
directed by the Lenders; provided that unless and until the Agent shall have received such
directions, the Agent may (but shall not be obligated to) take such action, or refrain from taking
such action, with respect to such Default or Event of Default as it shall deem advisable in the
best interests of the Lenders.

     Section 9.11 Delivery of Documents, Notices, Etc. In addition to, and in furtherance
of any requirement placed upon the Agent herein to deliver, provide, distribute, notify or
otherwise convey items received from the Borrower to the Lenders, the Agent shall promptly notify
the Lenders of any notices, documents, requests, demands or other items the Agent received from the
Borrower and promptly deliver or convey, to the extent they are in written form, such notices,
documents, requests, demands or items to the Lenders.

ARTICLE X

Conversion

     Section 10.1 Conversion Privilege.

     (a) At any time and from time to time after the first anniversary of the Closing Date
(the “First Anniversary”) until five (5) Business Days prior to the Maturity Date or
the date all Loans have been prepaid or repaid, each Lender shall have the right, at its
option, to convert all or any portion of outstanding Loans held by or owed to it into
validly issued, fully paid and nonassessable Borrower Common Shares at the then applicable
Conversion Rate, free and clear of all Liens without violation of the

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preemptive rights, rights of first refusal or other similar rights and in compliance
with U.S., and non-U.S., federal and state securities laws.

The “Conversion Rate” means, with respect to Loans held by or owed to the applicable
Lender to be converted, the number of Borrower Common Shares determined by dividing (i) the
sum of (A) the aggregate principal amount of outstanding Loans to be converted plus (B) all
accrued and unpaid interest on outstanding Loans, subject to Section 10.1(c) (together, the
“Conversion Amount”), held by each Lender by (ii) the applicable Conversion Price in
effect on the applicable Conversion Date.

The “Conversion Price” shall be as follows:

     (i) for the period from the First Anniversary up and until the second
anniversary of the Closing Date (the “Second Anniversary”), $2.24 per ADS
($1.12 per Borrower Common Share);

     (ii) for the period from the Second Anniversary up and until the third
anniversary of the Closing Date (the “Third Anniversary”), $2.74 per ADS
($1.37 per Borrower Common Share); and

     (iii) for the period from the Third Anniversary through the Maturity Date,
$3.24 per ADS ($1.62 per Borrower Common Share),

     in each case, such Conversion Price may be subject to adjustment from time to time as set
forth herein.

     (b) Portions of Loans. The provisions of this Agreement that apply to the
conversion of all outstanding Loans apply to the conversion of a portion of any Loan.

     (c) Accrued Interest. Notwithstanding any provisions to the contrary in this
Agreement, the Borrower shall have the option to pay the portion of the Conversion Amount to
be converted representing accrued and unpaid interest on outstanding Loans in cash prior to
the date of any conversion.

     (d) No Fractional Shares. No fractional shares shall be issued upon the
conversion of the Loan Conversion Amount and the number of Borrower Common Shares to be
issued shall be rounded to the nearest whole share. The Borrower shall, in lieu of issuance
of such fractional share, pay the Lender otherwise entitled to such fractional share cash
for the outstanding Conversion Amount not converted. If more than one certificate
representing Loans shall be surrendered for conversion at one time by the applicable Lender,
the number of full Borrower Common Shares issuable upon conversion thereof shall be computed
on the basis of the aggregate number of Loans represented by the certificates so surrendered
that are to be converted.

     (e) Limitation on Borrower Common Shares. Notwithstanding any other provisions
to the contrary, the aggregate number of Borrower Common Shares that may be issued to the
Lenders upon conversion shall not exceed 28,440,018 shares (as adjusted for stock splits,
reverse stock splits, combinations, reclassifications and reorganizations,

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including shares issuable pursuant to the antidilution provisions contained therein),
less such number of Borrower Common Shares issued or issuable in connection with the
acquisition of Media Assets, such number not to exceed 3,000,000 shares in the aggregate,
which represents 19.99% of the Borrower’s common shares (including Borrower Common Shares
and Class B Common Shares) outstanding as of the close of the Trading Day immediately
preceding the date of this Agreement (the “Limitation”), unless shareholder approval
is duly obtained to remove the Limitation in accordance with the requirements of the Nasdaq
Stock Market or such other national securities exchange on which the ADSs are then listed.

     Section 10.2 Conversion Procedure. In order to exercise its conversion right, a
Lender shall provide written notice to the Borrower (a “Conversion Notice”), specifying the
Loans to be converted, the name and address of the Person entitled to receive the applicable Loan
Shares and any other relevant details, and shall surrender the certificate or certificates
representing the applicable Loans to be converted. The Conversion Price shall be determined as of
the date of the Conversion Notice and the conversion will be deemed to have been completed
immediately prior to the close of business on the date of the applicable Conversion Notice (the
“Conversion Date”).

     The Borrower will promptly thereafter (but in any event within five (5) Business Days), upon
the receipt of the Conversion Notice, the Borrower shall execute, and shall deliver, to the address
as specified in the Conversion Notice, a certificate registered in the name of the converting
holder or its designee, for the number of Borrower Common Shares to which such holder shall be
entitled. The Person or Persons in whose name or names any Loan Shares or other securities
issuable upon such conversion shall be entered in the Register of Members as the holder or holders
of record of such Loan Shares or other securities at such time on such date and such conversion
shall be at the Conversion Price in effect at such time, unless the Register of Members shall be
closed on such date, in which event such Person or Persons shall be entered in the Register of
Members as the holder or holders of record of such Loan Shares or other securities at the close of
business on the next succeeding day on which such Register of Members is open, and such conversion
shall be at the Conversion Price in effect on the date such Register of Members is open.

     The Person entitled to receive the Borrower Common Shares issuable upon such conversion shall
be treated as the record holder of such Borrower Common Shares as of the applicable Conversion
Date.

     Section 10.3 Conversion Price Adjustments. The Conversion Price shall be subject to
adjustment from time to time as described below, subject to Section 10.3(g)(i) and provided that no
adjustment in the Conversion Price will be made pursuant to this Section 10.3 in connection with
any Exempt Issuance.

     (a) Adjustments for Capital Stock Issuances Below Conversion Price or Current
Market Price. The Conversion Price will be subject to adjustment if and whenever on or
after the Closing Date, the Borrower issues or sells (or in accordance with Section
10.3(a)(i) or 10.3(a)(ii) is deemed to have issued or sold), any Borrower Common Shares,
Capital Stock or Convertible Securities for a consideration per share (“New
Securities”) (or having a conversion, exercise or exchange price per share) which

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is less than either (i) the Conversion Price in effect immediately prior to such
issuance or sale or (ii) the Current Market Price (subject to adjustment for stock splits,
combinations, dividends and the other adjustments contemplated by Section 10.3 herein), at
the time of such issuance or sale. Upon such an event, the Conversion Price shall be
automatically adjusted and reduced to the consideration per share, after giving effect to
the price at which any such Borrower Common Shares, Capital Stock or Convertible Securities
were listed and the number of such securities issued, determined in accordance with the
following formula:

	 	 	 
	CP2 = CP1 x

	 	   (A + B)     

   (A + C)

For purposes of the foregoing formula, the following definitions shall apply: (1)
CP2 shall mean the Conversion Price in effect immediately after such issue of New
Securities; (2) CP1 shall mean the Conversion Price in effect immediately prior
to such issue of New Securities; (3) “A” shall mean the number of Fully-Diluted Common
Shares outstanding immediately prior to such issue of New Securities; (4) “B” shall mean the
number of Fully-Diluted Common Shares that would have been issued if such New Securities had
been issued at a price per share equal to CP1 (determined by dividing the
aggregate consideration received by the Company in respect of such issue by CP1);
and (5) “C” shall mean the number of such New Securities (on a fully-diluted basis) issued
in such transaction. For the avoidance of doubt, there shall be no increase to the
Conversion Price as a result of any issuance of shares for a consideration per share (or
having a conversion, exercise or exchange price per share) that is in excess of the
Conversion Price in effect immediately prior to such issuance. If any adjustment to the
Conversion Price is made upon the issuance of Options or Convertible Securities and such
Options or Convertible Securities expire without being converted or exercised, then the
Conversion Price shall be readjusted to the amount that would have been in effect had such
Options or Convertible Securities never been issued or sold; provided that no
readjustment provided for in this Section 10.3(a) shall have the effect of increasing the
Conversion Price to an amount which exceeds the lower of (x) the Conversion Price that was
in effect immediately prior to the adjustment made in connection with the issuance of such
Options or Convertible Securities or (y) the Conversion Price that results from any actual
issuance of additional Borrower Common Shares between the original adjustment date and such
readjustment date. Conversion Price adjustments under this Section 10.3 shall be calculated
based on the following provisions in the event Options or Convertible Securities are issued.

     (i) Effect of Issuance of Options. If the Borrower in any manner
grants or sells any Options and the price per share for which Borrower Common Shares
are issuable upon the exercise of such Options, or upon the conversion or exchange
of any Convertible Securities issuable upon the exercise of such Options, is less
than the Conversion Price in effect immediately prior to the time of the granting or
sale of such Options, then the maximum number of Borrower Common Shares issuable
upon the exercise of such Options, or upon conversion or exchange of the maximum
amount of such Convertible Securities issuable upon the exercise of such Options,
will be deemed to be outstanding and to have been issued and sold by the Borrower at
the time of the granting or sale of such

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Options for such price per share. For purposes of this Section 10.3(a)(i), the
“price per share for which Borrower Common Shares are issuable upon the exercise of
such Options, or upon conversion or exchange of any Convertible Securities issuable
upon exercise of such Options” will be determined by dividing (1) the total amount,
if any, received or receivable by the Borrower as consideration for the granting or
sale of such Options, plus the minimum aggregate amount of additional consideration
payable to the Borrower upon the exercise of all such Options, plus in the case of
such Options which relate to Convertible Securities, the minimum aggregate amount of
additional consideration, if any, payable to the Borrower upon the issuance or sale
of such Convertible Securities and the conversion or exchange thereof, by (2) the
maximum number of Borrower Common Shares issuable upon the exercise of such Options
or upon the conversion or exchange of all such Convertible Securities issuable upon
the exercise of such Options. No further adjustment of the Conversion Price will be
made upon the actual issuance of Borrower Common Shares or of such Convertible
Securities upon the exercise of such Options or upon the issuance of Borrower Common
Shares upon conversion or exchange of such Convertible Securities.

     (ii) Effect of Issuance of Convertible Securities. If the Borrower in
any manner issues or sells any Convertible Securities and the price per share for
which Borrower Common Shares are issuable upon the conversion or exchange thereof is
less than the Conversion Price in effect immediately prior to the time of such issue
or sale, then the maximum number of Borrower Common Shares issuable upon conversion
or exchange of all such Convertible Securities will be deemed to be outstanding and
to have been issued and sold by the Borrower at the time of the issuance or sale of
such Convertible Securities for such price per share. For the purposes of this
Section 10.3(a)(ii), the “price per share for which Borrower Common Shares are
issuable upon conversion or exchange thereof’ will be determined by dividing (1) the
total amount received or receivable by the Borrower as consideration for the issue
or sale of such Convertible Securities, plus the minimum aggregate amount of
additional consideration, if any, payable to the Borrower upon the conversion or
exchange thereof, by (2) the maximum number of Borrower Common Shares issuable upon
the exchange of all such Convertible Securities. No further adjustment of the
Conversion Price will be made upon the actual issuance of such Borrower Common
Shares upon conversion or exchange of such Convertible Securities, and if any such
issue or sale of such Convertible Securities is made upon exercise of any Options
for which adjustments of the Conversion Price had been or are to be made pursuant to
other provisions of this Section 10.3(a)(ii), no further adjustment of the
Conversion Price will be made by reason of such issue or sale.

     (iii) Integrated Transaction. If Options or Convertible Securities are
issued in connection with the issue or sale of other securities of the Borrower,
together comprising one integrated transaction in which no specific consideration is
allocated to such Options or Convertible Securities by the parties thereto, the

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Options or Convertible Securities will be deemed to have been issued without
consideration.

     (iv) Calculation of Consideration Received. If any Borrower Common
Shares, Options, or Convertible Securities are issued or sold or deemed to have been
issued or sold for cash, then the consideration received therefor will be deemed to
be the net amount received by the Borrower. If any Borrower Common Shares, Options,
or Convertible Securities are issued or sold for a consideration other than cash,
then the amount of the consideration other than cash received by the Borrower will
be the fair value of such consideration as determined in good faith by mutual
agreement between the Borrower and the Required Lenders, except where such
consideration consists of securities traded on a Qualified Exchange, in which case
the amount of consideration received by the Borrower will be the Closing Price
thereof as of the date of receipt. If any Borrower Common Shares, Options, or
Convertible Securities are issued to the owners of the non surviving entity in
connection with any merger in which the Borrower is the surviving entity, then the
amount of consideration therefor will be deemed to be the fair value of such portion
of the net assets of the non surviving entity as is attributable to such Borrower
Common Shares, Options or Convertible Securities, as the case may be.

     (v) For the avoidance of doubt, the adjustment contemplated by Section 10.3(a)
is meant to be based on a “weighted average” or “half ratchet,” rather than a “full
ratchet,” method of calculation.

     (b) Adjustments for Dividend or Split. If there is (i) a split or subdivision
of the outstanding Borrower Common Shares or (ii) a dividend or other distribution payable
in Borrower Common Shares or Options or Convertible Securities without payment of any
consideration, then, as of the record date for such event, the Conversion Price shall be
appropriately decreased so the number of Borrower Common Shares issuable on conversion of
the Loan Conversion Amount shall be increased in proportion to such increase in the
aggregate number of Borrower Common Shares outstanding or issuable with respect to such
Options or Convertible Securities.

     (c) Adjustments for Combinations. If the number of Borrower Common Shares
outstanding is decreased by a combination of the outstanding Borrower Common Shares, then,
as of the record date of such combination, the Conversion Price shall be appropriately
increased so the number of Borrower Common Shares issuable on conversion of each share of
such series shall be decreased in proportion to such decrease in outstanding Borrower Common
Shares.

     (d) Adjustments for Distributions of Capital Stock, Indebtedness or Other Non-Cash
Assets. (i) In case the Borrower shall distribute to all or substantially all holders
of Borrower Common Shares any shares of Capital Stock of the Borrower (other than Borrower
Common Shares), evidences of indebtedness or other non-cash assets (including securities of
any person other than the Borrower but excluding (A) dividends or distributions paid
exclusively in cash or (B) dividends or distributions referred to in

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subsection (a) of this Section 10.3), or shall distribute to all or substantially all
holders of Borrower Common Shares rights or warrants to subscribe for or purchase any of its
securities (excluding those rights and warrants referred to in subsection (2) of this
Section 10.3) and also excluding the distribution of rights to all holders of Borrower
Common Shares pursuant to a Rights Plan (as defined below) adopted before the date of this
Agreement), then in each such case the Conversion Price shall be adjusted so that the same
shall equal the price determined by multiplying the current Conversion Price by a fraction
of which:

     (A) the numerator shall be Current Market Price per Borrower Common
Share on the record date mentioned below less the Fair Market Value on such
record date (as determined by the Board in good faith, whose determination
shall be conclusive evidence of such Fair Market Value and which shall be
evidenced by an Officers’ Certificate delivered to the Agent) of the portion
of the Capital Stock, evidences of indebtedness or other non-cash assets so
distributed or of such rights, options or warrants applicable to one Loan
Share (determined on the basis of the number of Borrower Common Shares
outstanding on the record date); and

     (B) the denominator shall be the Current Market Price per share of
Borrower Common Shares on such record date.

     Such adjustment shall be made successively whenever any such distribution is made and shall
become effective immediately after the record date for the determination of shareholders entitled.

     (i) In the event the then Fair Market Value of the portion of the Capital
Stock, evidences of indebtedness or other non-cash assets so distributed or of such
rights or warrants applicable to one Borrower Common Share is equal to or greater
than the Current Market Price per share of the Borrower Common Shares on such record
date, in lieu of the foregoing adjustment, adequate provision shall be made prior to
the time the foregoing adjustment could otherwise be made in a writing delivered to
the Agent and the Lenders so that each Lender shall have the right to receive upon
conversion the amount of Capital Stock, evidences of indebtedness or other non-cash
assets so distributed or of such rights or warrants such Lender would have received
had such Lender converted each Loan on such record date. In the event that such
dividend or distribution is not so paid or made, the Conversion Price shall again be
adjusted to be the Conversion Price which would then be in effect if such dividend
or distribution had not been declared. If the Board determines the Fair Market
Value of any distribution for purposes of this Section 10.3(d) by reference to the
actual or when issued trading market for any securities, it must in doing so
consider the prices in such market over the same period used in computing the
Current Market Price of the Borrower Common Shares.

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     Notwithstanding the foregoing, if the securities distributed by the Borrower to all or
substantially all holders of Borrower Common Shares consist of Capital Stock of, or similar equity
interests in, a Subsidiary or other business unit, the Conversion Price shall be decreased so that
the same shall be equal to the price determined by multiplying the Conversion Price in effect on
the record date with respect to such distribution by a fraction:

     (A) the numerator of which shall be the average Closing Price (as
defined below) of one Borrower Common Share over the Spinoff Valuation
Period (as defined below), such adjustment to become effective immediately
prior to the opening of business on the fifteenth (15th) Trading
Day after the date on which “ex-dividend trading” commences; and

     (B) the denominator of which shall be the sum of (x) the average
Closing Price of one Borrower Common Share over the ten (10) consecutive
Trading Day period (the “Spinoff Valuation Period”) commencing on
and including the fifth (5th) Trading Day after the date on which
“ex-dividend trading” commences on Borrower Common Shares on the Nasdaq
Global Market or such other national or regional exchange or market on which
Borrower Common Shares are then listed or quoted and (y) the average Closing
Price over the Spinoff Valuation Period of the portion of the securities so
distributed applicable to one Borrower Common Share.

     In lieu of the foregoing, the Borrower may at the time of the public announcement of such
distribution elect in a writing provided to the Agent and the Lenders to reserve the pro rata
portion of such Loans so that each holder of Loans shall have the right to receive upon conversion
the amount of such shares of Capital Stock or similar equity interests of such Subsidiary or
business unit that such Lender would have received if such Lender had converted such Loans on the
record date with respect to such distribution.

     (ii) With respect to any rights (the “Rights”) that may be issued or
distributed pursuant to any rights plan of the Borrower (any Rights that may be
issued pursuant to any rights plan being referred to as, a “Rights Plan”),
upon conversion of the Loans into Borrower Common Shares, to the extent that such
Rights Plan is in effect upon such conversion, the Lenders will receive, in addition
to Borrower Common Shares, the Rights described therein (whether or not the Rights
have separated from Borrower Common Shares at the time of conversion), subject to
the limitations set forth in any such Rights Plan. If the Rights Plan provides that
upon separation of rights under such plan from Borrower Common Shares that the
Lenders would not be entitled to receive any such rights in respect of Borrower
Common Shares issuable upon conversion of the Loans, the Conversion Price will be
adjusted as provided in this Section 10.3 (with such separation deemed to be the
distribution of such rights), subject to readjustment in the event of the
expiration, termination or redemption of the rights. Any distribution of rights or
warrants pursuant to a Rights Plan complying with the requirements set forth in the
immediately preceding sentence of this

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paragraph shall not constitute a distribution of rights or warrants pursuant to
this Section 10.3(d).

     (iii) Rights, options or warrants (other than rights issued pursuant to a
Rights Plan) distributed by Borrower to all or substantially all holders of Borrower
Common Shares entitling the holders thereof to subscribe for or purchase shares of
the Borrower’s Capital Stock (either initially or under certain circumstances),
which rights, options or warrants, until the occurrence of a specified event or
events (a “Trigger Event”): (i) are deemed to be transferred with such
Borrower Common Shares; (ii) are not exercisable; and (iii) are also issued in
respect of future issuances of Common Shares (including issuances of Common Shares
upon conversion of the Loans), shall be deemed not to have been distributed for
purposes of this Section 10.3 (and no adjustment to the Conversion Price under this
Section 10.3 will be required) until the occurrence of the earliest Trigger Event,
whereupon such rights and warrants shall be deemed to have been distributed and an
appropriate adjustment (if any is required) to the Conversion Price shall be made
under this Section 10.3(d). If any such right, option or warrant, including any
such existing rights, options or warrants distributed prior to the date of this
Agreement, are subject to events, upon the occurrence of which such rights, options
or warrants become exercisable to purchase different securities, evidences of
indebtedness or other assets, then the date of the occurrence of any and each such
event shall be deemed to be the date of distribution and record date with respect to
new rights or warrants with such rights (and a termination or expiration of the
existing rights, options or warrants without exercise by any of the holders
thereof). In addition, in the event of any distribution (or deemed distribution) of
rights, options or warrants, or any Trigger Event or other event (of the type
described in the preceding sentence) with respect thereto that was counted for
purposes of calculating a distribution amount for which an adjustment to the
Conversion Price under this Section 10.3 was made, (1) in the case of any such
rights, options or warrants which shall all have been redeemed, purchased by the
Borrower or repurchased without exercise by any holders thereof, the Conversion
Price shall be readjusted upon such final redemption, purchase by the Borrower or
repurchase to give effect to such distribution or Trigger Event, as the case may be,
as though it were a cash distribution, equal to the per share redemption or
repurchase price received by a holder or holders of Borrower Common Shares with
respect to such rights or warrants (assuming such holder had retained such rights or
warrants), made to all or substantially all holders of Borrower Common Shares as of
the date of such redemption or repurchase, and (2) in the case of such rights,
options or warrants which shall have expired or been terminated without exercise by
any holders thereof, the Conversion Price shall be readjusted as if such rights and
warrants had not been issued.

     (e) Adjustments for Distributions of Cash. In case the Borrower shall, by
dividend or otherwise, at any time distribute (a “Triggering Distribution”) to all
or substantially all holders of Borrower Common Shares cash, the Borrower may, at its sole
option, (x) make a payment in cash to each Lender equal to the product of the amount of

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the Triggering Distribution per share of Borrower Common Shares multiplied by the
result of dividing the aggregate principal amount of Loans held by such Lender by the then
applicable Conversion Price or (y) decrease the Conversion Price so that the same shall
equal the price determined by multiplying such Conversion Price in effect immediately prior
to the Business Day immediately preceding the day on which such Triggering Distribution is
declared (a “Determination Date”) by a fraction of which:

     (A) the numerator shall be the Current Market Price per share of
Borrower Common Shares on the Determination Date less the sum of the
Triggering Distribution applicable to one Borrower Common Share (determined
on the basis of the number of Borrower Common Shares outstanding on the
Determination Date); and

     (B) the denominator shall be such Current Market Price per Borrower
Common Share on the Determination Date.

     Such decrease to become effective immediately prior to the opening of business on the day
following the date on which the Triggering Distribution is paid.

     (f) Adjustments for Purchases of Common Shares by Tender Offer. In case the
Borrower or any of its Subsidiaries shall purchase any Borrower Common Shares by means of
tender offer, then immediately prior to the opening of business on the day after the last
date (the “Expiration Date”) tenders could have been made pursuant to such tender
offer (as it may be amended) (the last time at which such tenders could have been made on
the Expiration Date is hereinafter sometimes called the “Expiration Time”), the
Conversion Price shall be decreased so that the same shall equal the price determined by
multiplying the Conversion Price in effect immediately prior to the close of business on the
Expiration Date by a fraction of which:

     (i) the numerator shall be the product of the number of Borrower Common Shares
outstanding (including Purchased Shares (as defined below) but excluding any shares
held in the treasury of the Borrower) immediately prior to the Expiration Time
multiplied by the Current Market Price per Borrower Common Share on the Trading Day
next succeeding the Expiration Date; and

     (ii) the denominator shall be the sum of (x) the aggregate consideration
(determined as aforesaid) payable to shareholders based on the acceptance (up to any
maximum specified in the terms of the tender offer) of all shares validly tendered
and not withdrawn as of the Expiration Time (the shares deemed so accepted, up to
any such maximum, being referred to as the “Purchased Shares”) and (y) the
product of the number of Borrower Common Shares outstanding (less any Purchased
Shares and excluding any shares held in the treasury of the Borrower) immediately
prior to the Expiration Time and the Current Market Price per Borrower Common Share
on the Trading Day next succeeding the Expiration Date.

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     For purposes of this Section 10.3(f), the aggregate consideration in any such tender offer
shall equal the sum of the aggregate amount of cash consideration and the aggregate Fair Market
Value (as determined by the Board, whose determination shall be conclusive evidence thereof and
which shall be evidenced by an Officers’ Certificate delivered to the Agent) of any other
consideration payable in such tender offer. Such decrease will become effective immediately prior
to the opening of business on the day following the Expiration Date. In the event that the
Borrower is obligated to purchase shares pursuant to any such tender offer, but the Borrower is
permanently prevented by applicable law from effecting any or all such purchases or any or all such
purchases are rescinded, the Conversion Price shall again be adjusted to be the Conversion Price
which would have been in effect based upon the number of shares actually purchased. If the
application of this Section 10.3(f) to any tender offer would result in an increase in the
Conversion Price, no adjustment shall be made for such tender offer under this Section 10.3(f).
For purposes of this Section 10.3(f), the term “tender offer” shall mean and include both tender
offers and exchange offers, all references to “purchases” of shares in tender offers (and all
similar references) shall mean and include both the purchase of shares in tender offers and the
acquisition of shares pursuant to exchange offers, and all references to “tendered shares” (and all
similar references) shall mean and include shares tendered in both tender offers and exchange
offers.

     (g) Related Definitions & Interpretations.

     (i) [Reserved]

     (ii) For the purpose of any computation under this Agreement, the current
market price (the “Current Market Price”) per Borrower Common Share on any
date shall be deemed to be the average of the daily closing prices for the ten (10)
consecutive Trading Days commencing eleven (11) Trading Days before (A) the
Determination Date or the Expiration Date, as the case may be, with respect to
distributions or tender offers or (B) the record date with respect to distributions,
issuances or other events requiring such computation under.

     (iii) The closing price (the “Closing Price”) for each day shall be the
last reported sales price or, in case no such reported sale takes place on such
date, the average of the reported closing bid and asked prices in either case on the
Nasdaq Global Market or, if the Borrower Common Shares are not listed or admitted to
trading on the Nasdaq Global Market, on the principal national securities exchange
on which Borrower Common Shares are listed or admitted to trading or, if not listed
or admitted to trading on the Nasdaq Global Market or any national securities
exchange, the average of the closing bid and asked prices as quoted on the Nasdaq
Global Market OTC Bulletin Board System or any comparable system or, if the Borrower
Common Shares are not quoted on the Nasdaq Global Market OTC Bulletin Board System
or any comparable system, the closing sales price or, in case no reported sale takes
place, the average of the closing bid and asked prices, as furnished by any two
members of the National Association of Securities Dealers, Inc. selected from time
to time by the Borrower for that purpose. If no such prices are available, the
Current Market Price per share shall be the fair value of a Borrower Common Share as
reasonably

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determined by the Board (which shall be evidenced by an Officers’ Certificate
delivered to the Agent), in consultation with a financial advisor the Borrower
determines in good faith is reasonably proficient in valuing equity interests.

     (iv) In any case in which this Section 10.3 shall require that an adjustment be
made following a record date or a Determination Date or Expiration Date, as the case
may be, established for purposes of this Section 10.3 the Borrower may elect to
defer (but only until five (5) Business Days following the filing by the Borrower
with the Agent of the certificate described in Section 10.3) issuing to the holder
of any Loan converted after such record date or Determination Date or Expiration
Date Borrower Common Shares and other Capital Stock of the Borrower issuable upon
such conversion over and above Borrower Common Shares and other Capital Stock of the
Borrower issuable upon such conversion only on the basis of the Conversion Price
prior to adjustment; and, in lieu of the shares the issuance of which is so
deferred, the Borrower shall issue or cause its transfer agents to issue due bills
or other appropriate evidence prepared by the Borrower of the right to receive such
shares. If any distribution in respect of which an adjustment to the Conversion
Price is required to be made as of the record date or Determination Date or
Expiration Date therefor is not thereafter made or paid by the Borrower for any
reason, the Conversion Price shall be readjusted to the Conversion Price which would
then be in effect if such record date had not been fixed or such effective date or
Determination Date or Expiration Date had not occurred.

     (v) For purposes of this Section 10.3, “record date” shall mean, with respect
to any dividend, distribution or other transaction or event in which the holders of
Borrower Common Shares have the right to receive any cash, securities or other
property or in which Borrower Common Shares (or other applicable security) are
exchanged or converted into any combination of cash, securities or other property,
the date fixed for determination of shareholders entitled to receive such cash,
security or other property (whether or not such date is fixed by the Board or by
statute, contract or otherwise).

     (h) Exempt Issuances. Notwithstanding anything to the contrary contained in
the foregoing, the provisions of this Section 10.3 shall not apply to the issuance of any of
the following (“Exempt Issuances”): (1) Borrower Common Shares issued upon
conversion of Series B Preferred Shares or upon conversion of Loans; (2) Borrower Common
Shares issued upon conversion or exchange of Capital Stock where the Conversion Price had
been adjusted concurrently with the issue of such Capital Stock in accordance with the
provisions of this Section 10.3; (3) Employee Share Options and any Borrower Common Shares
issued pursuant to the exercise of any such Employee Share Options pursuant the issuance of
which has been approved or ratified by the Board in the ordinary course; and (4) shares of
Borrower Common Stock issued or issuable in connection with a bona fide business acquisition
of or by the Borrower, whether by merger, consolidation, sale of assets, sale or exchange of
stock or otherwise, each as approved by the Board, subject to a maximum amount of 15% of the
outstanding Common Shares at the time of such transaction. Notwithstanding anything herein
to the

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contrary, any downward adjustment of the Conversion Price of may be waived, either
prospectively or retroactively and either generally or in a particular instance by the
Required Lenders. Any such waiver shall be binding upon all current and future holders of
the Loans.

     (i) Amendments. In the event any securities of the Borrower (other than Series
B Preferred Shares) (collectively, the “Subject Securities”), are amended or
otherwise modified by operation of their terms or otherwise (including, without limitation,
by operation of such Subject Securities’ anti-dilution provisions) in any manner whatsoever
that results in (i) the reduction of the exercise, conversion or exchange price of such
Subject Securities payable upon the exercise for, or conversion or exchange into, Borrower
Common Shares or other securities exercisable for, or convertible or exchangeable into,
Borrower Common Shares and/or (ii) such Subject Securities becoming exercisable for, or
convertible or exchangeable into (A) more shares or a greater amount of Subject Securities
which are, in turn exercisable for, or convertible or exchangeable into, Borrower Common
Shares, or (B) more Borrower Common Shares, then such amendment or modification shall be
treated for purposes of Section 10.3 above as if the Subject Securities which have been
amended or modified have been terminated and New Securities have been issued with the
amended or modified terms, the Borrower shall make all necessary adjustments (including
successive adjustments if required) to the Conversion Price in accordance with Section 10.3.
On the expiration or termination of any such amended or modified Subject Securities for
which adjustment has been made pursuant to the operation of the provisions of this Section
10.3, without such Subject Securities having been exercised, converted or exchanged in full
pursuant to their terms, the Conversion Price shall be appropriately readjusted to reverse
such previous adjustment.

     (j) No Adjustments for 1% Changes. No adjustment in the Conversion Price shall
be required unless such adjustment would require a change equal to at least one percent (1%)
in the Conversion Price; provided, however, that any adjustments which by
reason of this Section 10.3(j) are not required to be made shall be carried forward and
taken into account in any subsequent adjustment; and provided, further, that
adjustment shall be required and made in accordance with the provisions of this Section 10.3
(other than this Section 10.3(j)) at the time of any conversion of any Loans pursuant to
Section 10.3(a) above. All calculations shall be made to the nearest cent or to the nearest
one hundredth of a share.

     Section 10.4 Notice of Conversion Price Adjustments. When an adjustment or
readjustment of the Conversion Price is required pursuant to Section 10.3, the Borrower, at its
expense, shall promptly compute such adjustment or readjustment in accordance with the terms of
Section 10.3 and prepare and furnish to each Lender a notice setting forth such adjustment or
readjustment, showing in reasonable detail the facts upon which such adjustment or readjustment is
based the date on which the adjustment becomes effective.

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     Section 10.5 Effect of Reclassification, Consolidation, Merger or Sale on Conversion
Privilege.

     Subject to the further provisions of this Article 10, in the event the Borrower (i)
reclassifies or changes its Borrower Common Shares (other than changes resulting from a subdivision
or combination) or (ii) consolidates or combines with or merges into any Person or sells or conveys
to another Person all or substantially all of its property and assets, and the holders of the
Borrower Common Shares receive stock, other securities or other property or assets (including cash
or any combination thereof) with respect to or in exchange for their Borrower Common Shares, the
Lenders will thereby have the continuing right to convert their Loans into the consideration they
would have received if they had converted their Loans immediately prior to such re-classification,
change, consolidation, merger, sale or conveyance (the “Conversion Securities”).

     If any of the following shall occur, namely: (a) any reclassification or change of shares of
Borrower Common Shares issuable upon conversion of Loans (other than a change in par value, or from
par value to no par value, or from no par value to par value, or as a result of a subdivision or
combination, or any other change for which an adjustment is provided in Section 10.3); (b) any
consolidation or merger or combination to which the Borrower is a party other than a merger in
which the Borrower is the continuing corporation and which does not result in any reclassification
of, or change (other than in par value, or from par value to no par value, or from no par value to
par value, or as a result of a subdivision or combination) in, outstanding Borrower Common Shares;
or (c) any sale or conveyance as an entirety or substantially as an entirety of the property and
assets of the Borrower, directly or indirectly, to any person, then the Borrower, or such
successor, purchasing or transferee corporation, as the case may be, shall, as a condition
precedent to such reclassification, change, combination, consolidation, merger, sale or conveyance,
execute and deliver to the Agent an amendment to this Agreement providing that the holder of each
Loan then outstanding shall have the right to convert such Loan into the kind and amount of shares
of stock and other securities and property (including cash) receivable upon such reclassification,
change, combination, consolidation, merger, sale or conveyance by a holder of the number of
Borrower Common Shares deliverable upon conversion of such Loan immediately prior to such
reclassification, change, combination, consolidation, merger, sale or conveyance. Such amendment
shall provide for adjustments of the Conversion Price which shall be as nearly equivalent as may be
practicable to the adjustments of the Conversion Price provided for in this Article 10. If, in the
case of any such consolidation, merger, combination, sale or conveyance, the stock or other
securities and property (including cash) receivable thereupon by a holder of Borrower Common Shares
include shares of stock or other securities and property of a person other than the successor,
purchasing or transferee corporation, as the case may be, in such consolidation, merger,
combination, sale or conveyance, then such amendment shall also be executed by such other person
and shall contain such additional provisions to protect the interests of the holders of the Loans
as the Board shall reasonably consider necessary by reason of the foregoing. The provisions of
this Section 10.5 shall similarly apply to successive reclassifications, changes, combinations,
consolidations, mergers, sales or conveyances.

     In the event the Borrower shall execute an amendment pursuant to this Section 10.5, the
Borrower shall promptly file with the Agent (x) an Officers’ Certificate briefly stating the

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reasons therefor, the kind or amount of shares of stock or other securities or property
(including cash) receivable by holders of the Loans upon the conversion of their Loans after any
such reclassification, change, combination, consolidation, merger, sale or conveyance, any
adjustment to be made with respect thereto and that all conditions precedent have been complied
with and (y) an Opinion of Counsel that all conditions precedent have been complied with, and shall
promptly mail notice thereof to all holders of Loans.

     Section 10.6 Additional Covenants.

     (a) Reservation of Common Shares. The Borrower shall at all times reserve and
keep available, out of the aggregate of its authorized but unissued Borrower Common Shares,
for the purpose of effecting conversions of the Loans, the full number of Borrower Common
Shares issuable upon the conversion of all outstanding Loans not theretofor converted
including, for purposes of this paragraph, the number of Borrower Common Shares which shall
be issuable upon conversion of all of the outstanding Loans which shall be computed as if,
at the time of computation, all of the outstanding shares were held by a single holder. The
Borrower shall from time to time, subject to the applicable law or any judgment, order
(whether temporary, preliminary or permanent), writ, injunction, decree, statute, rule
regulation, notice, law or ordinance and shall also include any regulations of any
applicable self regulatory organizations, the Articles and the Memorandum of Association of
the Borrower, increase the authorized amount of its Borrower Common Shares if at any time
the number of Borrower Common Shares remaining unissued shall not be sufficient to permit
the conversion of all the then outstanding Loans.

     (b) Requirement to Seek Shareholder Approval. As promptly as is reasonably
practicable after the Closing Date, the Borrower shall call an extraordinary general meeting
of shareholders of the Borrower to take all action necessary to obtain the approval of its
shareholders providing for the Borrower’s issuance of all of the Borrower Common Shares
issuable pursuant to this Agreement, without reference to the limit thereon set forth in
Section 10.1(e), pursuant to the rules or regulations of Nasdaq Stock Market or the rules
and regulations of the national securities market upon which the Borrower Common Shares are
then-listed or quoted (the “Shareholder Approval”). In connection with such action,
the Borrower shall provide each shareholder with a proxy statement and shall use its
reasonable best efforts to solicit and obtain the Shareholder Approval and to cause its
Board to recommend, to the extent possible consistent with its fiduciary duties under
applicable law, to the stockholders that they approve such proposals. If, despite the
Borrower’s reasonable best efforts, such Shareholder Approval is not obtained at the first
meeting at which it is presented for a vote, the Borrower shall seek to obtain such
Shareholder Approval at each subsequent general meeting of stockholders to obtain
Shareholder Approval to the extent permitted under the rules and regulations of the national
securities market on which the Borrower Common Shares are then-listed. So long as the
Borrower has complied with this Section 10.6(b), in no event shall the failure to obtain the
Shareholder Approval constitute a Default or Event of Default.

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     (c) Insufficient Authorized Shares. In addition to the covenant contained in
Section 10.6(b), if at any time while any of the Loans are outstanding, the Borrower does
not have a sufficient number of authorized and unreserved or unissued Borrower Common Shares
to satisfy its obligation to reserve for issuance upon conversion of the Loans at least a
number of Borrower Common Shares equal to the maximum number (the “Required Reserve
Amount”) of Borrower Common Shares issuable upon conversion of Loans at any given time
(an “Authorized Share Failure”), then the Borrower shall immediately take all action
necessary to increase the Borrower’s authorized Borrower Common Shares to an amount
sufficient to allow the Borrower to reserve the Required Reserve Amount for the outstanding
Loans. Without limiting the generality of the foregoing sentence, as soon as practicable
after the date of the occurrence of an Authorized Share Failure, but in no event later than
sixty (60) days after the occurrence of such Authorized Share Failure, the Borrower shall
call a meeting of its shareholders for the approval of an increase in the number of
authorized Borrower Common Shares. In connection with such meeting, the Borrower shall
provide each shareholder with a proxy statement and shall use its reasonable best efforts to
solicit its shareholders’ approval of such increase in authorized Borrower Common Shares
(without reference to the limit thereon set forth in Section 10.1(e), pursuant to the rules
or regulations of Nasdaq Stock Market or the rules and regulations of the national
securities market upon which the Borrower Common Shares are then-listed or quoted) and to
cause its Board to recommend to the shareholders that they approve such proposal.

     (d) Validity. All Borrower Common Shares (or Convertible Securities, as
applicable) delivered upon conversion of the Loans shall be newly issued shares, shall be
duly authorized, validly issued, fully paid and nonassessable, free and clear of all Liens
without violation of the preemptive rights, rights of first refusal or other similar rights
and in compliance with U.S. federal and state, and non-U.S., securities laws.

     (e) Compliance with Applicable Regulations; Additional Listing Application.
The Borrower will comply with all U.S. federal and state, and non-U.S., securities laws
regulating the offer and delivery of Borrower Common Shares (or Convertible Securities, as
applicable) upon conversion of Loans, if any, and will list or cause to have quoted such
Borrower Common Shares (or Convertible Securities, as applicable) on each national
securities exchange or on over-the-counter market or such other market on which Borrower
Common Shares are then listed or quoted.

     (f) Taxes. Except where registration is requested in a name other than the
name of the registered holder, the Borrower will pay any and all documentary stamp or
similar issue or transfer taxes payable in respect of the issue or delivery of Borrower
Common Shares on conversion of the Loans pursuant hereto.

     (g) Protection of Conversion Rights. If any event occurs as to which, in the
mutual opinion of the Borrower and the Required Lenders determined in good faith, the other
provisions of Section 10.3 are not strictly applicable or would not fairly protect the
rights of the Lenders in accordance with the intent of these anti-dilution provisions, then
the Borrower and the Required Lenders shall agree to an adjustment in accordance with the
intent of these provisions to protect the Lenders’ rights under Section 10.3, but in no

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event shall any adjustment have the effect of increasing the Conversion Price (except
in the case of a combination of Borrower Common Shares described in Section 10.3(c)). In
addition, the Borrower will not through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Borrower but will at all times in good faith assist
in the carrying out of all the provisions of this Article 10 and in the taking of all such
action as may be necessary or appropriate in order to protect the conversion rights of the
holders of the Loans against impairment.

     (h) Cancellation of Converted Loans. Upon conversion of any Loans, the Loans
so converted shall be cancelled and shall not be reissued.

ARTICLE XI

Miscellaneous

     Section 11.1 Amendments and Waivers; Release of Collateral.

     (a) General. Subject to Section 11.1(b) and Section 11.1(c) below, no
amendment, modification, termination or waiver of any provision of the Credit Documents, or
consent to any departure by any Credit Party therefrom, shall be effective without the
written consent of the Required Lenders.

     (b) Other Consent. Notwithstanding the provisions of Section 11.1(a) above, no
amendment, modification, termination or waiver of any provision of the Credit Documents, or
consent to any departure by any Credit Party therefrom, shall amend, modify, terminate or
waive any provision of Article IX as the same applies to the Agent, or any other provision
hereof as the same applies to the rights or obligations of the Agent, in each case without
the consent of the Agent.

     (c) Prior Unanimous Written Consent. Without the prior unanimous written
consent of the affected Lenders,

     (i) no amendment, consent or waiver shall (A) affect the amount or extend the
time of the obligation of any Lender to make Loans or (B) extend the originally
scheduled time or times of repayment of the principal of the Loans or (C) alter the
time or times of payment of interest on any Loan or of any fees payable for the
account of the Lenders or (D) alter the amount of the principal of the Loans or the
rate of interest thereon or (E) alter the amount of any fee payable hereunder to the
account of the Lenders or (F) permit any subordination of the principal of or
interest on the Loans or (G) permit the subordination of the Lien created by the
Collateral Documents in any of the Collateral,

     (ii) no Collateral, other than in connection with any Asset Sale made in
accordance with the terms hereof or as otherwise specifically permitted in this
Agreement or the Collateral Documents, shall be released from the Lien of the
Collateral Documents;

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     (iii) none of the provisions of this Section 11.1(c) shall be amended; and

     (iv) None of the conversion rights of the Lenders set forth in Article X may be
adversely amended, modified or received.

     (d) Effect of Notices, Waivers or Consents. Any waiver or consent shall be
effective only in the specific instance and for the specific purpose for which it was given.
No notice to or demand on any Credit Party in any case shall entitle any Credit Party to
any other or further notice or demand in similar or other circumstances. Any amendment,
modification, termination, waiver or consent effected in accordance with this Section 11.1
shall be binding upon each Lender at the time outstanding, each future Lender and, if signed
by a Credit Party, on such Credit Party.

     (e) Certain Collateral Releases. The Borrower is entitled to receive, and the
Agent is authorized to effect, the release of Collateral that is the subject of an Asset
Sale or any other sale made in accordance with the terms hereof or as otherwise specifically
permitted in this Agreement or the Collateral Documents from the Lien of the Collateral
Documents.

     Section 11.2 Notices. All notices, requests, demands and other communications to any
party or given under any Credit Document (collectively, the “Notices”) will be in writing
and delivered personally, by overnight courier or by registered mail to the parties at the
following address or sent by facsimile, with confirmation received, to the facsimile number
specified below (or at such other address or telecopy number as will be specified by a party by
like notice given at least five calendar days prior thereto):

	 	 	 	 	 	 	 
	 	 	(a)	 	If to the Borrower, at:
	 
	 	 	 	 	 	 
	 	 	 	 	Xinhua Finance Media Limited
	 	 	 	 	Suite 2003-5
	 	 	 	 	Vicwood Plaza
	 	 	 	 	199 Des Voeux Road
	 	 	 	 	Central, Hong Kong
	 

	 	 	 	Attention:
	 	John McLean
	 

	 	 	 	Telephone:
	 	+852 3196 3939
	 

	 	 	 	Facsimile:
	 	+852 2541 8266
	 
	 	 	 	 	 	 
	 	 	 	 	With a copy to:
	 
	 	 	 	 	 	 
	 	 	 	 	Latham & Watkins
	 	 	 	 	41st Floor, One Exchange Square
	 	 	 	 	8 Connaught Place, Central
	 	 	 	 	Hong Kong
	 

	 	 	 	Attention:
	 	David Zhang
	 

	 	 	 	Telephone:
	 	+852 2912 2503
	 

	 	 	 	Facsimile:
	 	+852 2522 7006

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	 	 	(b)	 	If to the Agent, at:
	 
	 	 	 	 	 	 
	 	 	 	 	Patriarch Partners Agency Services, LLC
	 	 	 	 	227 West Trade Street, Suite 1400
	 	 	 	 	Charlotte, North Carolina 28202
	 

	 	 	 	Attention:
	 	Loan Administration/XFM
	 

	 	 	 	Telephone:
	 	(704) 227 1200
	 

	 	 	 	Facsimile:
	 	(704) 375 0358
	 
	 	 	 	 	 	 
	 	 	 	 	with a copy to:
	 
	 	 	 	 	 	 
	 	 	 	 	Patriarch Partners, LLC
	 	 	 	 	40 Wall Street, 25th Floor
	 	 	 	 	New York, NY 10005
	 

	 	 	 	Attention:
	 	Fred Shane
	 

	 	 	 	Telephone:
	 	(212) 825-3908
	 

	 	 	 	Facsimile:
	 	(212) 825-2038
	 
	 	 	 	 	 	 
	 	 	 	 	with a copy to:
	 
	 	 	 	 	 	 
	 	 	 	 	Jones Day
	 	 	 	 	2727 North Harwood Street
	 	 	 	 	Dallas, Texas 75201
	 

	 	 	 	Attention:
	 	Michael O. Weinberg, Esq.
	 

	 	 	 	Telephone:
	 	(214) 969-2945
	 

	 	 	 	Facsimile:
	 	(214) 220-3939

     (c) If to the Lenders or the Guarantors, to the address for such Lender or Guarantor
set forth on the signature pages hereto or in the Assignment Agreement delivered by such
Lender.

All Notices will be deemed delivered when actually received. Each of the parties will hereafter
notify the other in accordance with this Section of any change of address or telecopy number to
which notice is required to be mailed.

     Section 11.3 Expenses. Whether or not the transactions contemplated hereby shall be
consummated or any Loans shall be made, the Borrower agrees to pay promptly:

     (a) all the actual and reasonable costs and expenses of preparation of the Credit
Documents and any consents, amendments, waivers or other modifications thereto; the
reasonable fees, expenses and disbursements of counsel to Lenders and Agent (including,
without limitation, following the Closing Date and the closing of the transactions
contemplated by the Credit Documents) in connection with the negotiation, preparation,
execution and administration of the Credit Documents and any consents, amendments,
supplements, waivers or other modifications thereto and any other documents or matters
requested by the Borrower;

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     (b) all the actual costs and reasonable expenses of creating and perfecting Liens in
favor of the Agent, for the benefit of the Lenders and the Agent, pursuant hereto,
including, without limitation, filing and recording fees, expenses and taxes, stamp or
documentary taxes, search fees, title insurance premiums and reasonable fees, expenses and
disbursements of counsel to the Agent and the Lenders;

     (c) all the actual costs and reasonable fees, expenses and disbursements of any
auditors, accountants, consultants or appraisers;

     (d) all the actual costs and reasonable expenses (including, without limitation, the
reasonable fees, expenses and disbursements of any appraisers, consultants, advisors and
agents employed or retained by the Agent and its counsel) in connection with the inspection,
verification, custody or preservation of any of the Collateral, to the extent required or
permitted hereunder;

     (e) after the occurrence of a Default or an Event of Default, all costs and expenses,
including, without limitation, reasonable attorneys’ fees (including allocated costs of
internal counsel) and costs of settlement, incurred by the Agent or any Lender in enforcing
any Obligations of or in collecting any payments due from any Credit Party hereunder or
under the other Credit Documents by reason of such Default or Event of Default (including in
connection with the sale of, collection from, or other realization upon any of the
Collateral or the enforcement of any guaranty) or in connection with any negotiations,
reviews, refinancing or restructuring of the credit arrangements provided hereunder,
including without limitation in the nature of a “work out” or pursuant to any insolvency or
bankruptcy cases or proceedings; and

     (f) the foregoing shall not be in addition to, and shall not be construed to limit, any
other provisions of the Credit Documents regarding costs and expenses to be paid by the
Borrower.

     Section 11.4 Enforceability; Successors and Assigns.

     (a) Enforceability Successors and Assigns. This Agreement will be binding upon
and inure to the benefit of and is enforceable by the respective successors and permitted
assigns of the parties hereto. This Agreement may not be assigned by the Borrower hereto
without the prior written consent of the Agent and each Lender. Any assignment or attempted
assignment in contravention of this Section will be void ab initio and will
not relieve the assigning party of any obligation under this Agreement.

     (b) Assignments. Each Lender may assign (each, an “Assignment”) to one
or more (i) Affiliated Assignees and/or to any other Lender all or a portion of its rights
and obligations under this Agreement (including all or a portion of such Lender’s Loans,
Commitments and Notes, as the case may be) without the consent of the Borrower or the Agent
or (ii) Eligible Assignees all or a portion of its rights and obligations under this
Agreement (including all or a portion of such Lender’s Loans, Commitments and Notes, as the
case may be) only with the prior written consent of the Borrower (not to be unreasonably
withheld or delayed), unless an Event of Default shall have occurred and is

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continuing in which case no consent of the Borrower is required, and the Agent. In
connection with any such Assignment, the assigning Lender and the Assignee shall execute and
deliver to the Agent an Assignment Agreement, in the form of Exhibit H (each, an
“Assignment Agreement”), and a $3,500.00 fee (the “Assignment Fee”) payable
to the Agent. Upon its receipt of a duly executed and completed Assignment Agreement, the
Agent shall record the information contained in such Assignment Agreement in the Register,
shall give prompt notice thereof to the Borrower and shall maintain a copy of such
Assignment Agreement in its Principal Office. From and after the effective date of an
Assignment, the Assignee shall be a party hereto and, to the extent of the interest assigned
pursuant to the Assignment, have the rights and obligations of a lender under this
Agreement, and the assigning Lender shall, to the extent of the interest assigned, be
released from its obligations under this Agreement. The Borrower hereby consents to the
disclosure of any information obtained by Lender in connection with this Agreement to any
Person to which Lender sells, or proposes to sell, its Loans, Commitment or Notes provided
any such Person shall agree to keep any such information confidential.

     (c) Participations. Each Lender may sell participations (each, a
“Participation”) to one or more Persons (each, a “Participant”) in all or a
portion of such Lender’s rights and obligations under this Agreement (including all or a
portion of such Lender’s Loans, Commitment and Notes, as the case may be); provided that (i)
such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender
shall remain solely responsible to the Borrower for the performance of such obligations, and
(iii) the Borrower shall continue to deal solely and directly with the Lender and the Agent
in connection with the Lender’s rights and obligations under this Agreement. Any agreement
or instrument pursuant to which the Lender sells such a participation shall provide that the
Lender shall retain the sole right to enforce the Credit Documents and to approve any
amendment, modification or waiver of any provision of the Credit Documents. The Borrower
hereby consents to the disclosure of any information obtained by a Lender in connection with
this Agreement and/or any other Credit Agreement to any Person to which such Lender
participates, or proposes to participate, its Loans, Commitments or Notes.

     (d) Lenders’ Rights to Pledge Loans. Notwithstanding anything else to the
contrary contained herein, any Lender may any time pledge its Loans and such Lender’s rights
under this Agreement and the other Credit Documents to a Federal Reserve Bank and, in the
case of any Lender that is a fund, to its trustee for the benefit of its investors;
provided, that no such pledge to a Federal Reserve Bank (or in the case of any
Lender that is a fund, to its trustee for the benefit of its investors) shall release such
Lender from such Lender’s obligations hereunder or under any other Credit Document.

     Section 11.5 Lenders’ Obligations Several; Independent Nature of Lenders’ Rights.
The obligation of each Lender hereunder is several and not joint and neither Agent nor any Lender
shall be responsible for the obligation of any other Lender hereunder. Nothing contained in any
Credit Document and no action taken by the Agent or any Lender pursuant hereto or thereto shall be
deemed to constitute the Lenders to be a partnership, an association, a joint venture or any other
kind of entity. The amounts payable at any time hereunder to each Lender

94

 

shall be a separate and independent debt, and, provided the Agent fails or refuses to exercise
any independent debt, and, provided the Agent fails or refuses to exercise any remedies against the
Borrower after receiving the direction of the Lenders, each Lender shall be entitled to protect and
enforce its rights arising out of this Agreement and it shall not be necessary for any other Lender
to be joined as an additional party in any proceeding for such purpose.

     Section 11.6 Integration. This Agreement, the other Credit Documents and the Deposit
Agreement contain and constitute the entire agreement of the parties with respect to the subject
matter hereof and supersede all prior negotiations, agreements and understandings, whether written
or oral, of the parties hereto.

     Section 11.7 No Waiver Remedies. No failure or delay by any party in exercising any
right, power or privilege under this Agreement or any of the other Credit Documents will operate as
a waiver of such right, power or privilege. A single or partial exercise of any right, power or
privilege will not preclude any other or further exercise of the right, power or privilege or the
exercise of any other right, power or privilege. The rights and remedies provided in the Credit
Documents will be cumulative and not exclusive of any rights or remedies provided by law.

     Section 11.8 Execution in Counterparts. This Agreement may be executed in any number
of counterparts and by different parties on separate counterparts, each of which, when executed and
delivered, shall be deemed to be an original, and all of which, when taken together, shall
constitute but one and the same Agreement. Delivery of an executed counterpart of this Agreement
by facsimile or other electronic transmission shall be equally as effective as delivery of an
original executed counterpart of this Agreement.

     Section 11.9 Waiver of Jury. THE PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT THAT THEY MAY HAVE TO TRIAL BY
JURY OF ANY CLAIM OR CAUSE OF ACTION, OR IN ANY LEGAL PROCEEDING, DIRECTLY OR INDIRECTLY BASED UPON
OR ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT (WHETHER BASED
ON CONTRACT, TORT, OR ANY OTHER THEORY). EACH PARTY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT,
OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTIES
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     Section 11.10 Severability. If any term or other provision of this Agreement is
invalid, illegal or incapable of being enforced by any rule of law, or public policy, all other
conditions and provisions of this Agreement will nevertheless remain in full force and effect so
long as the economic or legal substance of the transactions contemplated hereby is not affected in
any manner adverse to any party. Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the parties hereto will negotiate in good faith to
modify this Agreement so as to effect the original intent of the parties as closely as possible in
an

95

 

acceptable manner to the end that the transactions contemplated hereby are fulfilled to the
extent possible.

     Section 11.11 Survival. All representations, warranties, covenants, agreements, and
conditions contained in or made pursuant to this Agreement or the other Credit Documents shall
survive (a) the making of the Loans and the payment of the Obligations and (b) the performance,
observance and compliance with the covenants, terms and conditions, express or implied, of all
Credit Documents, until the due and punctual (i) indefeasible payment of the Obligations and (ii)
performance, observance and compliance with the covenants, terms and conditions, express or
implied, of this Agreement and all of the other Credit Documents; provided,
however, that the provisions of Article VII, Section 9.6 and Section 11.3 shall survive (i)
indefeasible payment of the Obligations and (ii) performance, observance and compliance with the
covenants, terms and conditions, express or implied, of this Agreement and all of the other Credit
Documents.

     Section 11.12 Maximum Lawful Interest.

     (a) Notwithstanding anything to the contrary contained in this Agreement or any other
Credit Document, no interest rate specified in this Agreement or any other Credit Document
shall at any time exceed the Maximum Rate. If at any time the interest rate otherwise (but
for the terms and provisions of this Section 11.12) contracted for in this Agreement or any
other Credit Document (the “Contract Rate”) for any Obligation shall exceed the
Maximum Rate, then any subsequent reduction in the Contract Rate for such Obligation shall
not reduce the rate of interest on such Obligation below the Maximum Rate until the
aggregate amount of interest accrued on such Obligation equals the aggregate amount of
interest which would have accrued on such Obligation if the Contract Rate for such
Obligation had at all time been in effect.

     (b) Notwithstanding anything to the contrary contained in this Agreement or any other
Credit Document, none of the terms and provisions of this Agreement or any other Credit
Document shall ever be construed to create a contract or obligation to pay interest at a
rate in excess of the Maximum Rate; and neither the Agent nor any Lender shall ever charge,
receive, take, collect, reserve or apply, as interest on the Obligations, any amount in
excess of the Maximum Rate. The parties hereto agree that any interest, charge, fee,
expense or other obligation provided for in this Agreement or in the other Credit Documents
which constitutes interest under applicable law shall be, ipso facto and
under any and all circumstances, limited or reduced to an amount equal to the lesser of (i)
the amount of such interest, charge, fee, expense or other obligation that would be payable
in the absence of this Section 11.12(b) or (ii) an amount which, when added to all other
interest payable under this Agreement and the other Credit Documents, equal the Maximum
Rate. If, notwithstanding the foregoing, the Agent or any Lender ever contracts for,
charges, receives, takes, collects, reserves or applies as interest any amount in excess of
the Maximum Rate, such amount which would be deemed excessive interest shall be deemed a
partial payment or prepayment of principal of the Obligations and treated hereunder as such;
and if the Obligations, or applicable portions thereof, are paid in full, any remaining
excess shall promptly be paid to the Borrower or other appropriate Credit Party. In
determining whether the interest paid or payable, under any specific contingency, exceeds
the Maximum Rate, the Borrower, the Agent and the Lenders shall,

96

 

to the maximum extent permitted by law, (a) characterize any nonprincipal payment as an
expense, fee or premium rather than as interest, (b) exclude voluntary prepayments and the
effects thereof, and (c) amortize, prorate, allocate and spread in equal or unequal parts
the total amount of interest throughout the entire contemplated term of the Obligations, or
applicable portions thereof, so that the interest rate does not exceed the Maximum Rate at
any time during the term of the Obligations; provided that, if the unpaid principal
balance is paid and performed in full prior to the end of the full contemplated term
thereof, and if the interest received for the actual period of existence thereof exceeds the
Maximum Rate, the Agent and/or the Lenders, as appropriate, shall refund to the Borrower or
other appropriate Credit Party the amount of such excess and, in such event, the Agent and
the Lenders shall not be subject to any penalties provided for by any laws for contracting
for, charging, receiving, taking, collecting, reserving or applying interest in excess of
the Maximum Rate.

     Section 11.13 Interpretation. As used in this Agreement, references to the singular
will include the plural and vice versa and references to the masculine gender will include the
feminine and neuter genders and vice versa, as appropriate. Unless otherwise expressly provided in
this Agreement (a) the words “hereof’, “herein” and “hereunder” and words of similar import when
used in this Agreement will refer to this Agreement as a whole and not to any particular provision
of this Agreement and (b) article, section, subsection, schedule and exhibit references are
references with respect to this Agreement unless otherwise specified. Unless the context otherwise
requires, the term “including” will mean “including, without limitation.” The headings in this
Agreement and in the Schedules are included for convenience of reference only and will not affect
in any way the meaning or interpretation of this Agreement.

     Section 11.14 Ambiguities. This Agreement and the other Credit Documents were
negotiated between legal counsel for the parties and any ambiguity in this Agreement or the other
Credit Documents shall not be construed against the party who drafted this Agreement or such other
Credit Documents.

     Section 11.15 Agent for Service of Process. The Borrower and each Credit Party
irrevocably appoints Law Debenture Corporate Services Inc., with an office at 400 Madison Avenue,
4th floor, New York, NY 10017 as its agent for service of process for any actions or
proceedings relating to this Agreement or any of the other Credit Documents (other than those
Credit Documents governed by the laws of Hong Kong) and consents to the service of copies of the
summons and complaint and any other process which may be served in any action or proceeding
relating to this Agreement or any of the other Credit Documents (other than those Credit Documents
governed by the laws of Hong Kong) by the mailing of copies of such process to such agent.

     Section 11.16 Governing Law. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of New York applicable to agreements made or to be
performed in such state. Any legal suit, action or proceeding arising out of or based upon this
Agreement or the transactions contemplated hereby (“Related Proceedings”) may be instituted
in the federal courts of the United States of America located in the Borough of Manhattan in the
City of New York or the courts of the State of New York in each case located in the Borough of
Manhattan in the City of New York (collectively, the “Specified Courts”), and each party

97

 

irrevocably submits to the non-exclusive jurisdiction of such courts in any such suit, action
or proceeding. Service of any process, summons, notice or document by mail to such party’s address
set forth above shall be effective service of process for any suit, action or other proceeding
brought in any such court. The parties irrevocably and unconditionally waive any objection to the
laying of venue of any suit, action or other proceeding in the Specified Courts and irrevocably and
unconditionally waive and agree not to plead or claim in any such court that any such suit, action
or other proceeding brought in any such court has been brought in an inconvenient forum. With
respect to any Related Proceeding, each party irrevocably waives, to the fullest extent permitted
by applicable law, all immunity (whether on the basis of sovereignty or otherwise) from
jurisdiction, service of process, attachment (both before and after judgment) and execution to
which it might otherwise be entitled in the Specified Courts.

     Section 11.17 Arbitration. At the option of the Borrower or the Agent, any dispute,
controversy or claim arising out of or relating to this Agreement or any other Credit Document, or
the breach, termination or invalidity thereof, may be settled by arbitration in accordance with the
United Nations Commission on International Trade Law (“UNCITRAL”) Arbitration Rules in
force at the date of this contract. If the parties to this agreement agree to arbitration, the
appointing authority shall be the Hong Kong International Arbitration Centre (the “HKIAC”)
and the place of arbitration shall be in Hong Kong at the HKIAC. There shall be a panel of three
arbitrators and the language of the arbitration shall be English. Any such arbitration shall be
administered by HKIAC in accordance with HKIAC Procedures for the Administration of International
Arbitration in force at the date of this contract, including such additions to the UNCITRAL
Arbitration Rules as are therein contained. Notwithstanding anything in this Agreement or in the
UNCITRAL Rules or otherwise, the arbitration tribunal shall not have the power to award injunctive
relief or any other equitable remedy of any kind unless such award is expressly appealable and
subject to de novo review by the federal courts of the United States of America located in the
Borough of Manhattan in the City of New York or the courts of the State of New York located in the
Borough of Manhattan in the City of New York.

     Section 11.18 Jurisdiction. A judgment on the arbitrators’ award may be entered in
any court having jurisdiction over the parties. The parties hereby consent to the non-exclusive
jurisdiction of the United States District Court for the Southern District of New York, for such
purposes, provided, however, that, if such United States District Court does not
have jurisdiction, the parties hereby consent to the non-exclusive jurisdiction of the courts of
the State of New York in the Borough of Manhattan for such purposes provided,
further, that, if such courts of the State of New York in the Borough of Manhattan do not
have jurisdiction, the parties hereby consent to the non-exclusive jurisdiction of the Hong Kong
International Arbitration Centre (such United States District Court, court of the State of New York
and Hong Kong International Arbitration Centre being herein referred to as a “Consented
Court”). Each party irrevocably waives any objection which it may have at any time to the
laying of venue of any suit, action or proceeding arising out of or relating to the enforcement of
any judgment of the arbitrators brought in a Consented Court, irrevocably waives any claim that any
such suit, action or proceeding brought in such Consented Court has been brought in an inconvenient
forum and further irrevocably waives the right to object, with respect to any claim, suit, action
or proceeding brought in such Consented Court for the enforcement of any judgment of the
arbitrators, that such Consented Court does not have jurisdiction over such party.

98

 

     Section 11.19 Judgment Currency. Each Credit Party agrees to indemnify the Agent
against any loss incurred by the Agent as a result of any judgment or order being given or made for
any amount due hereunder and such judgment or order being expressed and paid in a currency (the
“Judgment Currency”) other than United States dollars and as a result of any variation as
between (i) the rate of exchange at which the United States dollar amount is converted into the
Judgment Currency for the purpose of such judgment or order, and (ii) the rate of exchange at which
the Agent is able to purchase United States dollars with the amount of the Judgment Currency
actually received by the Agent. The foregoing indemnity shall constitute a separate and
independent obligation of the Credit Parties and shall continue in full force and effect
notwithstanding any such judgment or order as aforesaid. The term “rate of exchange” shall include
any premiums and costs of exchange payable in connection with the purchase of, or conversion into,
the relevant currency.

     Section 11.20 Waiver of Immunities. To the extent that any Credit Party or any of its
respective properties, assets or revenues may have or may hereafter become entitled to, or have
attributed to them, any right of immunity, on the grounds of sovereignty, from any legal action,
suit or proceeding, from set-off or counterclaim, from the jurisdiction of any U.S. or non-U.S.
court, from service of process, from attachment upon or prior to judgment, or from attachment in
aid of execution of judgment, or from execution of judgment, or other legal process or proceeding
for the giving of any relief or for the enforcement of any judgment, in any jurisdiction in which
proceedings may at any time be commenced, with respect to their obligations, liabilities or any
other matter under or arising out of or in connection with this Agreement or any additional
agreement, such Credit Party hereby irrevocably and unconditionally, to the extent permitted by
applicable law, waives and agrees not to plead or claim any such immunity and consents to such
relief and enforcement.

     Section 11.21 No Short Sales. Each Lender and its controlled Affiliates shall be
prohibited from engaging, directly or indirectly, in short sales of ADSs or Borrower Common Shares
for so long as such Lender continues to hold any Loans.

     Section 11.22 Confidentiality.

     (a) Each of the Agent and each Lender agrees to keep confidential all material
non-public information provided to it by any Credit Party pursuant to or in connection with
the Credit Agreement that is designated by the provider thereof as confidential; provided
that nothing herein shall prevent the Agent or any Lender from disclosing any such
information (a) to the Agent, any other Lender or any Affiliates thereof, (b) to its
employees, directors, agents, attorneys, accountants and other professional advisors or
those of any of its Affiliates, (c) upon the request or demand of any Governmental
Authority, (d) in response to any order of any court or other Governmental Authority or as
may otherwise be required pursuant to any requirement of Regulation, (e) that has been
publicly disclosed, (f) to the National Association of Insurance Commissioners or any
similar organization or any nationally recognized rating agency that requires access to
information about a Lender’s investment portfolio in connection with ratings issued with
respect to such Lender, (g) in connection with the exercise of any remedy hereunder or under
any other Credit Document, (h) if agreed by the Borrower in its sole discretion, to any
other Person, or (i) in compliance with Section 5.1(q).

99

 

     (b) All information, including requests for waivers and amendments, furnished by the
Borrower or the Agent pursuant to, or in the course of administering, this Agreement or the
other Credit Documents will be syndicate-level information, which may contain material
non-public information about the Borrower and its Affiliates and their related parties or
their respective securities. Accordingly, each Lender represents to the Borrower and the
Agent that it has identified one or several credit contacts who may receive information that
may contain material non-public information in accordance with its compliance procedures and
applicable Regulation, including federal and state securities laws.

     Section 11.23 No Advisory or Fiduciary Relationship. Each of the Borrower and the
other Credit Parties acknowledges and agrees that (a) the entering into, and making Loans pursuant
to, this Agreement, including the determination of the interest rate, the Conversion Price and
Conversion Rate, among other things, is an arm’s-length commercial transaction between the Borrower
and the other Credit Parties, on the one hand, and the Agent and the Lenders, on the other hand,
(b) in connection with the transactions contemplated hereby and the process leading to such
transactions, each of the Agent and the Lenders is and has been acting solely as principal and is
not the agent or fiduciary of the Borrower, the other Credit Parties or their shareholders,
employees or any other party, (c) the Agent and the Lenders have not assumed and will not assume an
advisory or fiduciary responsibility in favor of the Borrower or any of the other Credit Parties
with respect to the transactions contemplated hereby or the process leading thereto and the Agent
and the Lenders have no obligation to the Borrower or the other Credit Parties with respect to the
transactions contemplated hereby except the obligations expressly set forth in this Agreement, (d)
the Agent and the Lenders and their affiliates may be engaged in a broad range of transactions that
involve interests that differ from those of the borrower and the other Credit Parties, and (e) the
Agent and the Lenders have not provided any legal, accounting, regulatory or tax advice with
respect to the transactions contemplated hereby and the Borrower and the other Credit Parties have
consulted their own legal, accounting, regulatory and tax advisors to the extent it deemed
appropriate.

[Remainder of page intentionally left blank; signatures on following pages.]

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

	 	 	 	 	 	 	 
	BORROWER:	 	XINHUA FINANCE MEDIA LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Andrew Chang
 

Name: Andrew Chang
	 	 
	 

	 	 	 	Title: Chief Financial Officer	 	 

Credit Agreement

S-1

 

	 	 	 
	GUARANTORS:
	 
	 	 
	Address for Notices:
	Suite 2003-5
	Vicwood Plaza
	199 Des Voeux Road
	Central, Hong Kong
	Attention:

	 	General Counsel
	Telephone:

	 	+852 3196 3939
	Facsimile:

	 	+852 2541 8266
	 
	 	 
	With a copy to:
	Latham & Watkins
	41st Floor, One Exchange Square
	8 Connaught Place, Central
	Hong Kong
	Attention:

	 	David Zhang, Esq.
	Telephone:

	 	+852 2912 2503
	Facsimile:

	 	+852 2522 7006

	 	 	 	 	 	 	 
	 	 	UPPER STEP HOLDINGS LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Andrew Chang
 

Name: Andrew Chang
	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	CHINA LEAD PROFITS LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Andrew Chang
 

Name: Andrew Chang
	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	STAREASE LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Andrew Chang
 

Name: Andrew Chang
	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	CHINA MEDIA NETWORK LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Andrew Chang
 

Name: Andrew Chang
	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 

Credit Agreement

S-2

 

	 	 	 	 	 	 	 
	AGENT:	 	PATRIARCH PARTNERS AGENCY SERVICES, LLC, as Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lynn Tilton
 

Name: Lynn Tilton
	 	 
	 

	 	 	 	Title: Manager	 	 

Credit Agreement

S-3

 

LENDERS:

	 	 	 	 	 	 	 	 	 
	Address for Notices:	 	ZOHAR CDO 2003-1, LIMITED	 	 
	 
	 	 	 	 	 	 	 	 
	c/o Patriarch Partners XIV, LLC
	 	By:	 	Patriarch Partners VIII, LLC,	 	 
	227 West Trade Street, Suite 1400
	 	 	 	its Collateral Manager	 	 
	Charlotte, North Carolina 28202	 	 	 	 	 	 	 	 
	Telephone: (704) 227-1200	 	 	 	By:
	 	/s/ Lynn Tilton
 

	 	 
	Facsimile: (704) 375-0358
	 	 	 	 	 	Name: Lynn Tilton
	 	 
	 

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

	 	 	 	By:
	 	/s/ Lynn Tilton
 

Name: Lynn Tilton
	 	 
	 

	 	 	 	 	 	Title: Manager	 	 

Credit Agreement

S-4

 

SCHEDULE
I

TERM LOAN AMOUNTS

	 	 	 	 	 
	Lender	 	Term Loan
	ZOHAR CDO 2003-1, LIMITED
	 	$	31,000,000.00	 
	ZOHAR II 2005-1, LIMITED
	 	$	9,000,000.00	 
	Total
	 	$	40,000,000.00EX-4.54

EXHIBIT
4.54

Execution Version

INVESTOR AND REGISTRATION RIGHTS AGREEMENT

among

XINHUA FINANCE MEDIA LIMITED,

THE INVESTORS LISTED HEREIN

and

XINHUA FINANCE LIMITED

Dated as of October 21, 2008

 

 

	 	 	 	 	 
	Article I            Definitions
	 	 	1	 
	 
	Section 1.01. Definitions
	 	 	1	 
	 
	Article II            Covenants of the Company and Parent and Representations of the Parent
	 	 	7	 
	 
	Section 2.01. Certain Affirmative Covenants of the Company
	 	 	7	 
	 
	Section 2.02. Parent Representations
	 	 	9	 
	 
	Section 2.03. Parent Covenant to Support Shareholder Approval
	 	 	10	 
	 
	Section 2.04. Parent Covenant to Vote for Required Reserve Amount
	 	 	10	 
	 
	Article III            Pre-Emptive and Tag-Along Rights
	 	 	10	 
	 
	Section 3.01. Investor Pre-Emptive Rights
	 	 	10	 
	 
	Section 3.02. Tag-Along Rights
	 	 	12	 
	 
	Article IV            Registration Rights
	 	 	14	 
	 
	Section 4.01. Filing of Resale Shelf Registration Statement
	 	 	14	 
	 
	Section 4.02. Piggyback Registration
	 	 	16	 
	 
	Section 4.03. Expenses of Registration
	 	 	17	 
	 
	Section 4.04. Further Obligations of the Company
	 	 	17	 
	 
	Section 4.05. Information from Holder
	 	 	21	 
	 
	Section 4.06. Preparation; Reasonable Investigation; Review by Counsel
	 	 	21	 
	 
	Section 4.07. Indemnification
	 	 	21	 
	 
	Section 4.08. Transfer of Registration Rights
	 	 	24	 
	 
	Section 4.09. Registration in Non-U.S. Jurisdictions
	 	 	24	 
	 
	Section 4.10. Rule 144 Reporting
	 	 	24	 
	 
	Section 4.11. Subsequent Registration Rights
	 	 	25	 
	 
	Article V            Miscellaneous
	 	 	25	 
	 
	Section 5.01. Notices
	 	 	25	 
	 
	Section 5.02. Counterparts
	 	 	26	 
	 
	Section 5.03. Modification or Amendment of Agreement
	 	 	26	 
	 
	Section 5.04. Successors and Assigns
	 	 	27	 
	 
	Section 5.05. Waiver of Jury
	 	 	27	 
	 
	Section 5.06. Integration
	 	 	27	 
	 
	Section 5.07. Severability
	 	 	27	 
	 
	Section 5.08. Interpretation
	 	 	27	 
	 
	Section 5.09. Ambiguities
	 	 	28	 

 

 

	 	 	 	 	 
	Section 5.10. Further Assurances
	 	 	28	 
	 
	Section 5.11. No Third-Party Rights
	 	 	28	 
	 
	Section 5.12. No Waiver; Remedies
	 	 	28	 
	 
	Section 5.13. Governing Law
	 	 	28	 
	 
	Section 5.14. Arbitration
	 	 	29	 
	 
	Section 5.15. Agent for Service of Process
	 	 	29	 
	 
	Section 5.16. Jurisdiction
	 	 	29	 
	 
	Section 5.17. Judgment Currency
	 	 	29	 
	 
	Section 5.18. Waiver of Immunities
	 	 	30	 
	 
	Section 5.19. No Advisory or Fiduciary Relationship
	 	 	30	 
	 
	Section 5.20. Confidentiality
	 	 	30	 
	 
	 	 	 	 
	Schedule I: Investors
	 	 	 	 

- 2 -

 

     INVESTOR AND REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of October 21,
2008, among XINHUA FINANCE MEDIA LIMITED, a company organized under the laws of the Cayman Islands
(the “Company”) and, the Investors listed in Schedule I hereof (each, an
“Investor” and, collectively, the “Investors”), and XINHUA FINANCE LIMITED, a
company organized under the laws of the Cayman Islands corporation (the “Parent”).

RECITALS

     A. The Company and the Investors have entered into that certain Credit Agreement, dated as of
the date hereof (as the same may be amended or modified, the “Credit Agreement”), pursuant
to which the Investors have agreed to make loans to the Company and the Company has agreed, among
other things, to grant to the Investors the right to convert outstanding loans under the Credit
Agreement into Common Shares (as defined below) pursuant to the terms of the Credit Agreement.

     B. The Investors, together with their Affiliates (as defined below) and Related Funds (as
defined below), own other Common Shares in addition to those issuable upon conversion of loans
outstanding under the Credit Agreement (the “Loan Shares”).

     C. In order to induce the Investors to enter into the Credit Agreement and as a condition to
the Investors’ obligations under the Credit Agreement, the Company desires to grant the Investors
certain rights as set forth herein.

AGREEMENT

     In consideration of the premises and the mutual covenants and the agreements herein set forth
and other good and valuable consideration, the receipt and suffïciency of which are hereby
acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.01. Definitions.

     As used in this Agreement, the following terms shall have the following meanings (such
meanings to be equally applicable to both the singular and plural forms of the terms defined):

     “Action” against a Person means an action, suit, litigation, arbitration,
investigation, complaint, contest, hearing, inquiry, inquest, audit, examination or other
proceeding threatened or pending against or affecting such Person or its property, whether civil,
criminal, administrative, investigative or appellate, in law or equity before any arbitrator or
Governmental Body.

     “Adjusted Outstanding Common Shares” means, as of any date, the number of Common
Shares outstanding as of such date other than Common Shares issued after the date of this
Agreement; unless such Common Shares constituted “New Securities” with respect to which the

 

 

Investors (or their respective assignee(s)) had the right to exercise pre-emptive rights
pursuant to Article III of this Agreement.

     “ADRs” means the American Depositary Receipts evidencing the ADSs.

     “ADSs” has the meaning stated in the Credit Agreement.

     “Affiliate” has the meaning stated in the Credit Agreement.

     “Applicable Percentage” has the meaning stated in Section 3.02(a).

     “Articles of Association” means the Amended and Restated Memorandum and Articles of
Association of the Company.

     “Authorized Share Failure” has the meaning stated in Section 2.04.

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

     “Business Day” means a day other than Saturday or Sunday or other day on which
commercial banks in New York City, New York, Charlotte, North Carolina, Hong Kong or Tokyo, Japan,
are authorized or required by law or other governmental action to close and a day on which dealings
are carried on for deposits in Dollars by and among banks in the London interbank market.

     “Capital Stock” means any and all shares, interests, participations or other
equivalents (however designated) of capital stock of a company or a corporation, any and all
equivalent ownership interests in a Person (other than a corporation), including, without
limitation, partnership interests and membership interests, and any and all warrants, rights,
options or other equity-linked securities or instruments to purchase or other arrangements or
rights to acquire any of the foregoing.

     “Common Shares” means the Class A common shares of the Company, with a par value
$0.001 per share.

     “Company Indemnified Persons” has the meaning stated in Section 4.07(b)(i).

     “Consented Court” has the meaning stated in Section 5.16.

     “Convertible Securities” has the meaning stated in the Credit Agreement.

     “Credit Agreement” has the meaning stated in the Recitals.

     “Credit Document” has the meaning stated in the Credit Agreement.

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

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

- 2 -

 

     “Designated Offshore Securities Market” means the Designated Offshore Securities
Market as defined in Section 230.902(b) of Regulation S of the Securities Act.

     “Elected New Securities” has the meaning stated in Section 3.01(d).

     “Elected Shares” has meaning stated in Section 3.02(b).

     “Election Notice” has the meaning stated in Section 3.02(b) .

     “Estimated Price Range” has the meaning stated in Section 3.01(b).

     “Exchange Act” means the United States Securities Exchange Act of 1934, as amended
from time to time, and any successor statute.

     “Exempt Transfer” has the meaning stated in Section 3.02(f).

     “Filing Deadline” has the meaning stated in Section 4.01(a).

     “Fully-Diluted Common Shares” means, as of the time of determination, all issued and
outstanding common shares of the Company and all common shares of the Company issuable upon
conversion or exercise of any rights, options, warrants or other securities convertible into or
exercisable for common shares.

     “GAAP” has the meaning stated in the Credit Agreement.

     “Governmental Body” means any agency, bureau, commission, court, department, official,
political subdivision, tribunal or other instrumentality of any administrative, judicial,
legislative, executive, regulatory, police or taxing authority of any government, whether
supranational, national, federal, state, regional, provincial, local, domestic or foreign.

     “HKIAC” has the meaning stated in Section 5.14.

     “Holder Indemnified Persons” has the meaning listed in Section 4.07(a).

     “Hong Kong” means the Hong Kong Special Administrative Region of the People’s Republic
of China.

     “Indemnitee” has the meaning stated in Section 4.07(c) .

     “Indemnitor” has the meaning stated in Section 4.07(b)(ii)(B).

     “Investor” or “Investors” has the meaning stated in the Preamble. For the
avoidance of ambiguity, an Investor may transfer the Common Shares, including Loan Shares, it owns
and that are the subject of this Agreement to any of its Related Funds.

     “Issuance Notice” has the meaning stated in Section 3.01(b).

     “Loan Shares” has the meaning stated in the Recitals.

- 3 -

 

     “Losses” has the meaning stated in Section 4.07(a).

     “MNPI” has the meaning stated in Section 2.01(d).

     “New Securities” has the meaning stated in Section 3.01(a).

     “Notice of Sale” has the meaning stated in Section 3.02(a).

     “Offered Securities” means the Common Shares proposed to be Transferred by the Parent.

     “Parent” has the meaning stated in the Preamble.

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

     “Parity Registrable Securities Holders” means any holder of Parity Registrable
Securities.

     “Permitted Parity Preferred Shares” means the 300,000 Series B Convertible Preferred
Shares issued pursuant to the Series B Convertible Preferred Shares Purchase Agreement, dated as of
February 18, 2008, by and between Yucaipa Global Partnership Fund L.P., an exempted limited
partnership organized under the laws of the Cayman Islands, and the Company.

     “Person” means and includes natural persons, corporations, limited partnerships,
general partnerships, limited liability companies, limited liability partnerships, joint stock
companies, joint ventures, associations, companies, trusts, banks, trust companies, land trusts,
business trusts or other organizations, whether or not legal entities, other legal entities and
Governmental Bodies.

     “Potential Material Event” means any material engagement or activity by the Company
which would be adversely affected by disclosure in a registration statement at such time, in each
case, which shall be evidenced by a written good faith determination by the Board of Directors that
both (x) disclosure of such information, engagement or activity in a registration statement would
be detrimental to the business and affairs of the Company, and (y) a registration statement would
be materially misleading absent the inclusion of such information, engagement or activity.

     “PRC” means the People’s Republic of China excluding Hong Kong, Macau Special
Administrative Region and Taiwan.

     “Pricing” has the meaning stated in Section 3.01(b).

     “Pro Rata Share” has the meaning stated in Section 3.01(a).

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

- 4 -

 

     “Purchaser” has the meaning stated in Section 3.02(a).

     “Register”, “registered” and “registration” means a registration
effected through the preparation and filing of a registration statement or similar document in
compliance with the Securities Act and the declaration or ordering of effectiveness of such
registration statement or document.

     “Registrable Securities” means and includes all Common Shares held by any Investor as
of the date of this Agreement and Loan Shares issuable pursuant to the Credit Agreement (including
pursuant to any anti-dilution protection provided in the Credit Agreement); provided,
however, that Registrable Securities shall cease to be Registrable Securities upon the
earlier of (i) the date when, with respect to any Registrable Securities Holder, in the reasonable
opinion of counsel to the Company, all Registrable Securities proposed to be sold by such
Registrable Securities Holder may then be sold pursuant to Rule 144 without any volume limitations,
which counsel shall be reasonably satisfactory to such Registrable Securities Holder and (ii) the
date as of which all of the Registrable Securities have been sold pursuant to a Registration
Statement.

     “Registrable Security Holder” means any Person (including any Investor) who holds
Registrable Securities or the rights to hold Registrable Securities, or any Person to whom any
Registrable Security Holder shall Transfer its Registrable Securities.

     “Registration Expenses” means all expenses incurred by the Company in effecting any
registration pursuant to this Agreement, including, without limitation, all registration,
qualification and filing fees, printing expenses, escrow fees, fees and disbursements of counsel
for the Company, U.S. or non-U.S. blue sky fees and expenses, the expense of any accountants or
special audits incident to or required by any such registration and the reasonable fees and
disbursements of one special legal counsel to represent all of the Registrable Security Holders.
Registration Expenses do not include compensation of regular employees of the Company which shall
be paid in any event by the Company, underwriting discounts and commissions and stock transfer
taxes.

     “Registration Statement” means a registration statement on Form F-l, Form F-3 (or such
similar or successor forms as may be appropriate) prepared and filed with the SEC by the Company
pursuant to Article IV of this Agreement.

     “Regulation” means each applicable law, rule, regulation, order, guidance or
recommendation (or any change in its interpretation or administration) by any Governmental Body,
central bank or comparable agency and any request or directive (whether or not having the force of
law) of any of those Persons and each judgment, injunction, order, writ, decree or award of any
Governmental Body, arbitrator or other Person.

     “Related Fund” has the meaning stated in the Credit Agreement.

     “Related Proceedings” has the meaning stated in Section 5.13.

     “Required Reserve Amount” has the meaning stated in Section 2.04.

- 5 -

 

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

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

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

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

     “Securities Act” means the United States Securities Act of 1933, as amended from time
to time, and any successor statute.

     “Selling Holders” means, Registrable Securities Holders and/or Parity Registrable
Securities Holders selling Registrable Securities and/or Parity Registrable Securities pursuant to
such Shelf Registration Statement.

     “Shareholder Approval” has the meaning stated in Section 2.03.

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

     “Specified Courts” has the meaning stated in Section 5.13.

     “Subsidiary” has the meaning stated in the Credit Agreement.

     “Tag-Along Rights” has the meaning stated in Section 3.01(f).

     “Threshold Amount” has the meaning stated in Section 3.02.

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

     “UNCITRAL” has the meaning stated in Section 5.14.

     “Violation” has the meaning stated in Section 4.07(a).

- 6 -

 

     “Yucaipa Registration Rights Agreement” means the Registration Rights Agreement dated
as of February 28, 2008 by and between the Company and Yucaipa Global Partnership Fund, L.P., an
exempted limited partnership organized under the laws of the Cayman Islands.

ARTICLE II

COVENANTS OF THE COMPANY AND PARENT AND REPRESENTATIONS OF THE PARENT

     Section 2.01. Certain Affirmative Covenants of the Company. The Company covenants and
agrees that, from and after the date of this Agreement, the Company shall perform and observe the
following covenants and provisions:

     (a) Information Reporting. Only upon request by an Investor, and, so long as the
Investors and their Affiliates and Related Funds continue to hold at least 5% of the Adjusted
Outstanding Common Shares, the Company shall deliver to such requesting Investor each of the
following:

     (i) if the Company at any time ceases to timely file periodic reports pursuant
to Section 13 of the Exchange Act, as soon as available but in any event within
ninety (90) days after the close of each Fiscal Year (as defined in the Credit
Agreement), the audited consolidated Financials (as defined in the Credit Agreement)
of the Company and its Subsidiaries for such Fiscal Year, certified by the Company’s
accountants;

     (ii) if the Company at any time ceases to timely file periodic reports pursuant
to Section 13 of the Exchange Act, as soon as available but in any event within
sixty (60) days after the end of each Fiscal Quarter (as defined in the Credit
Agreement), the unaudited consolidated Financials of the Company and its
Subsidiaries for such quarter;

     (iii) as soon as available but in any event within thirty (30) Business Days
after the end of each fiscal month the unaudited consolidated Financials of the
Company and its Subsidiaries for such month, certified by its chief financial
officer pursuant to a Financial Officer Certification (as defined in the Credit
Agreement;

     (iv) together with the quarterly and annual audited consolidated Financials, a
certificate of the Company setting forth computations demonstrating compliance with
the financial covenants set forth in Section 6.2 of the Credit Agreement and
certifying that no Default or Event of Default has occurred, or if a Default or an
Event of Default has occurred, the actions taken by the Company with respect
thereto;

     (v) promptly upon the Company obtaining knowledge of (i) the institution of, or
non frivolous written threat of, any Action (as defined in the Credit Agreement) not
previously disclosed in writing by the Company to the Investors, or (ii) any
material development in any Action that, in the case of either

- 7 -

 

clause (i) or (ii), if adversely determined could be reasonably expected to
have a Material Adverse Effect (as defined in the Credit Agreement), or seeks to
enjoin or otherwise prevent the consummation of, or to recover any material damages
or obtain relief as a result of, the transactions contemplated hereby, written
notice thereof together with such other information as may be reasonably available
to the Company to enable each Investor and its counsel to evaluate such matters;

     (vi) as soon as available but in no event later than the end of each Fiscal
Year an updated financial projection for the succeeding Fiscal Year;

     (vii) promptly upon their becoming available, all minutes and written
resolutions of the Board of Directors; and

     (viii) promptly upon their becoming available, copies of all statements,
reports, releases, notices and any other information or data sent or made available
generally or required to be disclosed by the Company to its shareholders.

     (b) Visitation; Verification. The Company and each of the other Credit Parties
(as defined in the Credit Agreement) shall keep true and accurate books of account in
accordance with GAAP and shall permit the agent and/or any Investor and or any of their
designated representatives, upon reasonable notice and at the expense of the Company, to
visit and inspect the premises of the Company and/or other Credit Party, to examine the
books of account of any such Persons and their Affiliates (and to make copies and/or
extracts therefrom) and to discuss the affairs, finances and accounts of such Persons and
their Affiliates with, and to be advised as to the same by, the managers, executives and
officers of such Persons and to be advised as to such or other business records upon the
request of the agent and/or Investor.

     (c) Other Information. So long as the Investors and their Affiliates and Related
Funds continue to hold at least 5% of the Adjusted Outstanding Common Shares, the Company shall
furnish to any requesting Investor with reasonable promptness information relating to the Company
and its Subsidiaries if permitted under applicable law and without breach or violation of any
agreement, contract or either obligation of the Company, as the requesting Investor may from time
to time reasonably request, in addition to the information specified in Section 2.01(a), as
requested by such Investor.

     (d) Disclosure. If this Agreement requires the Company to deliver or disclose
material, nonpublic information (within the meaning of U.S. federal securities laws or
“MNPI”) to any Investor, the Company will not deliver or disclose such information without
the consent of such Investor, will request whether such Investor wants to have such information
delivered or disclosed and shall comply with the response of such Investor to such request; it
being understood that, if the Company provides or delivers information to any Investor in response
to the request of such Investor pursuant to Section 2.01(a), Section 2.01(b) or Section 2.01(c),
then the Company will have complied with the agreement contained in this sentence and will not be
required to take any further action to comply with this sentence, unless and until such Investor
shall have given notice that it no longer is requesting information pursuant to Section 2.01(a),
Section 2.01(b) or Section 2.01(c). If such Investor has, or believes it has, received any such

- 8 -

 

MNPI regarding the Company or any of its Subsidiaries from the Company, any of its
Subsidiaries or any of their officers, directors, employees or agents in contravention of the
agreement contained in the prior sentence, it shall provide the Company with written notice thereof
and the Company shall within three (3) Business Days thereafter, make public disclosure of such
MNPI if permitted under applicable law and without breach or violation of any agreement, contract
or other obligation of the Company; provided, that if the Company shall fail to make such
public disclosure within such three (3) Business Day period, such Investor shall be entitled to
make public disclosure of such information to the extent permitted under applicable law or without
breach or violation of any agreement, contract or other obligation of the Company.

     (e) Listing. Neither the Company nor any of its Subsidiaries shall take any action
which would be reasonably expected to result in the delisting or suspension of the ADSs on the
Nasdaq Global Market and shall use commercially reasonable efforts to maintain the listing of the
ADSs on the Nasdaq Global Market, including without limitation, exhausting all available remedies,
appeal reviews and other similar mechanisms and procedures provided for under the rules and
regulations of the Nasdaq Global Market to permit such continued listing of the ADSs.

     (f) Issuance of ADSs. Upon the request of any Investor at any time, and subject to
applicable securities laws and the provisions of the Deposit Agreement, the Company shall arrange
for any Loan Shares issued or issuable to such Investor to be deposited with the Depositary and for
corresponding ADRs to be issued in the name of such Investor pursuant to the terms and conditions
of the Deposit Agreement, and the Company shall pay any fees or expense reimbursements required to
be paid to the Depositary in connection therewith.

     Section 2.02. Parent Representations. The Parent herby represents and warrants to
each Investor as follows:

     (a) Corporate Status; Corporate Authorization. The Parent is duly organized, validly
existing, and in good standing under the laws of the Cayman Islands. The Parent is duly qualified
and licensed in every jurisdiction where it is doing business and in good standing in every
jurisdiction where such qualification is required, except where the failure to so qualify could not
reasonably be expected to have a Material Adverse Effect, and has all requisite power and authority
to carry on its business as now conducted. The execution, delivery and performance by the Parent
of this Agreement (i) are within its power and authority, (ii) have been duly authorized, and (iii)
do not conflict with or contravene its respective documents.

     (b) Execution and Binding Effect. This Agreement has been duly executed and delivered
by the Parent, and assuming the due execution and delivery by the Investors parties hereto, this
Agreement constitutes the legal, valid and binding obligation of the Parent, enforceable in
accordance with its terms, except as the enforceability thereof may be limited by bankruptcy,
insolvency or other similar laws relating to the enforcement of creditors’ rights generally and by
general equitable principles and principles of public policy regarding the indemnification
provisions contained herein.

     (c) Outstanding Indebtedness. There is no Indebtedness (as defined in the Credit
Agreement) outstanding to the Parent by the Company or any Subsidiary of the Company, other

- 9 -

 

than the Indebtedness listed in Part I on Section 4.1(ii) of the Disclosure Schedule to the
Credit Agreement, and there is no commitment by the Parent to loan funds to the Company or any
Subsidiary of the Company.

     Section 2.03. Parent Covenant to Support Shareholder Approval. As contemplated by
Section 10.6(b) of the Credit Agreement, the Parent covenants that at the next special or annual
meeting of shareholders of the Company with a record date after the date hereof, the Parent shall
vote all of its voting securities of the Company in favor of the proposal, and to take all other
necessary actions within its control, whenever possible (whether in its capacity as shareholder or
otherwise, including without limitation, causing its controlled Affiliates, including directors and
officers, to take all such necessary action), to approve the issuance by the Company of all of the
Common Shares issuable pursuant to the Credit Agreement, without reference to the limit thereon set
forth in Section 10.1(e) of the Credit Agreement (the “Shareholder Approval”), pursuant to
the rules or regulations of the Nasdaq Global Market or the rules and regulations of the national
securities market upon which the Common Shares or the ADSs are then-listed or quoted. The Parent
agrees further to vote all of its voting securities of the Company in favor of such Shareholder
Approval at each subsequent general meeting of shareholders to the extent permitted under the rules
and regulations of the national securities market on which the Common Shares or ADSs are
then-listed, if, despite the Company’s and the Parent’s reasonable best efforts, such Shareholder
Approval is not obtained at the first meeting at which it is presented for a vote.

     Section 2.04. Parent Covenant to Vote for Required Reserve Amount. If at any time
while any of the Loans are outstanding, the Company does not have the Required Reserve Amount (as
defined in the Credit Agreement) and there shall be an Authorized Share Failure (as defined in the
Credit Agreement), then the Parent covenants to vote all of its voting securities of the Company in
favor of the proposal and to take all other actions necessary and within its control whenever
possible (whether in its capacity as shareholder or otherwise, including, without limitation,
causing its controlled Affiliates, including directors and officers, to take all such necessary
actions), to approve the proposal at the shareholders’ meeting or meetings contemplated by Section
10.6(c) of the Credit Agreement (without reference to the limit thereon set forth in Section
10.1(e) of the Credit Agreement, pursuant to the rules or regulations of Nasdaq Stock Market or the
rules and regulations of the national securities market upon which the Borrower Common Shares are
then-listed or quoted) to increase the Company’s authorized Common Shares to an amount sufficient
to allow the Company to reserve the Required Reserve Amount.

ARTICLE III

PRE-EMPTIVE AND TAG-ALONG RIGHTS

     Section 3.01. Investor Pre-Emptive Rights.

     (a) Pre-Emptive Rights. If at any time the Company wishes to issue any Common Shares,
Convertible Securities or Share Purchase Rights or other Capital Stock (collectively, “New
Securities”) to any Person or Persons, any Investor shall have a preemptive right to purchase
its Pro Rata Share (as defined below), of any such New Securities, except as set forth

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Section 3.01(e). “Pro Rata Share” for purposes of this preemptive right means that
number of the New Securities equal to the product of (i) a fraction, the numerator of which is such
Investor’s aggregate ownership of Common Shares (calculated on an as converted and fully-diluted
basis) and the denominator of which is the number of the Company’s total issued and outstanding
Common Shares (calculated on an as converted and fully-diluted basis), multiplied by (ii) the
number of New Securities to be issued. The Company will not issue any New Securities without first
offering such Investor its preemptive right described in this Section 3.01.

     (b) Notice and Response. In the event that the Company proposes to issue New
Securities, it may give each Investor a written notice of its intention to issue New Securities
(the “Issuance Notice”), describing the approximate number and type of New Securities, the
terms of such New Securities, the estimated pricing date, the estimated price range (as may be
modified in accordance with the provisions hereof, the “Estimated Price Range”) and the
other terms upon which the Company proposes to issue and sell such New Securities. Any such
Issuance Notice shall be delivered to each Investor not less than ten (10) Business Days prior to
the date of the pricing or closing of the issuance and sale of such securities if there is no
pricing date as that term is used in a customary sense (the “Pricing”) of such New
Securities. If the estimated pricing date or the Estimated Pricing Range shall change, the Company
shall promptly so notify each Investor prior to the Pricing, provided that in the event of any
change in the Estimated Price Range, each Investor shall be entitled to revoke any agreement to
purchase that it may have delivered as set forth in the following sentence. Following receipt of
an Issuance Notice as set forth in the first two sentences of this paragraph, each Investor shall
have the right, by giving written notice to the Company at least three (3) Business Days prior to
the Pricing, to either (y) agree to purchase up to its Pro Rata Share of such New Securities within
the Estimated Price Range and upon the general terms specified in the Issuance Notice (which shall
not exceed such Investor’s Pro Rata Share) or (z) waive its right to so purchase up to its Pro
Rata Share of such New Securities. If, following receipt of an Issuance Notice as set forth in the
first two sentences of this paragraph, such Investor fails to agree in writing at least three (3)
Business Days prior to the Pricing to purchase such Investor’s full Pro Rata Share of such offering
of New Securities, then (A) except as set forth in Section 3.01(c), such Investor shall forfeit
the right hereunder to purchase that part of its Pro Rata Share of such New Securities that it did
not so agree to purchase, and (B) the Company shall have sixty (60) calendar days thereafter to
sell the New Securities with respect to which such Investor’s preemptive right hereunder was not
exercised, at a price within or above the Estimated Price Range and upon general terms no more
favorable to the purchases thereof than specified in the Company’s Issuance Notice to such
Investor. In the event that the Company has not issued and sold the New Securities within such
sixty (60) calendar day period, then the Company shall not thereafter issue or sell any New
Securities without again first offering such New Securities to such Investor pursuant to this
Section 3.01.

     (c) Note of Noncompliance and Remedy. In the event that the Company proposes to issue
New Securities in a transaction in which (i) it does not provide each Investor with the Issuance
Notice and an opportunity for each Investor to elect to purchase up to its Pro Rata Share of such
New Securities during the period described above, or (ii) it shall have notified (or been required
to notify) each Investor, less than five days prior to the Pricing, of any acceleration in the
estimated pricing date, or a delay in the estimated pricing date of more than ten (10) days, or a
reduction of more than 10% in the Estimated Price Range (and each Investor shall not have purchased
New Securities in connection with such transaction), then no later than five (5) days

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after the issuance of such New Securities, the Company shall provide each Investor with a
written notice of the issuance of such New Securities, setting forth the price and other terms on
which such New Securities were sold, and each Investor shall have thirty (30) days from the date
such notice is effective hereof based upon the manner or method of notice, to deliver to the
Company a written notice indicating its agreement to purchase up to its Pro Rata Share of such New
Securities at the same price and on the same terms and conditions under which such New Securities
were sold in such transaction, by giving written notice to the Company and stating therein the
quantity of New Securities to be purchased (not to exceed each Investor’s Pro Rata Share), and upon
receipt of such written notice from each electing Investor, the Company shall be required to sell
such quantity of the New Securities to each electing Investor.

     (d) Election and Payment. If any Investor gives the Company notice pursuant to
Section 3.01(b) or Section 3.01(c) that such Investor desires to purchase all or any of the New
Securities it is entitled to purchase (the “Elected New Securities”), payment therefor
shall be made by wire transfer, against issuance of such New Securities at the executive offices of
the Company, on the date such securities are issued to such Investor. In the event that the
Issuance Notice specifies that consideration other than cash is to be paid in connection with any
issuance of New Securities, in lieu of such other consideration, such Investor will be entitled to
pay the cash equivalent of such other consideration, as determined by an independent third-party
appraiser jointly appointed by the Company and such Investor.

     (e) Exclusion. The preemptive rights contained in this Section 3.01 shall not apply
to any of the following: any New Securities issued (i) as a share dividend to holders of Capital
Stock or upon any subdivision or combination of such Capital Stock, (ii) upon conversion or
exchange of any Convertible Securities of the Company duly issued on or prior to the date hereof
that are convertible into or exchangeable for Common Shares, (iii) upon the exercise of any Share
Purchase Rights issued prior to the date hereof, (iv) to employees, officers or directors of the
Company or any Subsidiary pursuant to incentive agreements, share purchase or share option plans,
share bonuses or awards, or employment or advisory related warrants, contracts or other
arrangements approved by the Board prior to or following the date hereof or (v) in connection with
any direct or indirect acquisition by the Company of, or a merger with and into the Company of,
another Person or business approved by the Board prior to or following the date hereof.

     (f) Termination of Preemptive Rights. Any Investor’s preemptive rights set forth in
this Section 3.01 shall automatically terminate if the aggregate of the number of Common Shares
held by the Investors and their Affiliates and Related Funds as a group represents less than five
percent (5%) of the Adjusted Outstanding Common Shares.

     Section 3.02. Tag-Along Rights.

     In the event of any proposed Transfer by the Parent in a single transaction or series of
related transactions of Common Shares representing twenty-five percent (25%) or more of the Common
Shares held directly or indirectly by the Parent at the time of Transfer (the “Threshold
Amount”), other than in an Exempt Transfer, each Investor will have the tag-along rights (the
“Tag-Along Rights”) set forth below:

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     (a) Notice of Sale. The Parent shall deliver or cause to be delivered a written
notice (the “Notice of Sale”) to each Investor at least ten (10) Business Days prior to
making any such Transfer. The Notice of Sale shall state (i) the number of Common Shares to be
Transferred and the percentage that such Common Shares represent of all Common Shares then held by
the Parent (the “Applicable Percentage”), (ii) the Parent’s bona fide intention to Transfer
such Common Shares, (iii) the name and address of the prospective transferee (the
“Purchaser”), (iv) the terms and conditions of the contemplated Transfer and (v) the
expected closing date of the Transfer. If, subsequent to the date hereof, any Investor assigns any
of its Tag-Along Rights to an Affiliate or a Related Fund in accordance with this Agreement, any
notice to such Investor pursuant to this Section 3.02(a) shall be deemed to also have been duly
delivered to such Affiliate or Related Fund.

     (b) Participation Procedures. By written notice (an “Election Notice”) given
by any Investor to the Company and the Parent within ten (10) Business Days after receipt of such
Notice of Sale, such Investor may elect to include in such proposed Transfer up to the Applicable
Percentage of any Common Shares then owned by such Investor. Promptly after the receipt of such
Election Notice, the Parent shall use its reasonable best efforts to cause the Purchaser to amend
its offer so as to provide for the Purchaser’s purchase, upon the same terms and conditions as
those contained in the Notice of Sale, of all of the Common Shares held by each electing Investor
(the “Elected Shares”) in such Election Notice elected to be sold. In the event that the
Purchaser is unwilling to amend its offer to purchase all of the Elected Shares in addition to or
in substitution for some or all of the Common Shares described in the related Notice of Sale, the
Parent shall not enter into such proposed transaction, unless the Purchaser shall simultaneously
purchase all of the Common Shares from electing Investors on the same terms and conditions as the
proposed sale described in the Notice of Sale, if applicable.

     (c) Single Closing. All Common Shares to be Transferred by the Parent and any
Investor with respect to a single Notice of Sale shall be Transferred to the Purchaser in a single
closing on the terms and conditions described in such Notice of Sale. No Investor shall be
obligated to Transfer any Common Shares to the Purchaser if the Parent defaults in its obligation
to Transfer its Common Shares to the Purchaser. In connection with any such sale of Common Shares
under this Section 3.02(c), each electing Investor agrees to enter into and deliver a purchase and
sale agreement for the benefit of the Purchaser in connection with the Transfer of their Common
Shares under this Section 3.02(c), which purchase and sale agreement shall contain standard and
customary representations, warranties, covenants and indemnities by each electing Investor for the
benefit of the Purchaser; provided, however, that such representations, warranties,
covenants and indemnities shall be substantially similar to those made by the Parent for the
benefit of the Purchaser. If any electing Investor defaults in its obligation to Transfer Common
Shares, the Parent and the other Investors may (but shall not be obligated to) Transfer to the
Purchaser (on a pro-rata basis) an additional number of Common Shares not greater than the number
of shares with respect to which default was made and thereafter the defaulting Investor shall not
be entitled or obligated to Transfer to the proposed Purchasers such shares.

     (d) Parent’s Right to Sell. If the Parent has received one or more Election Notices,
the Parent may not Transfer any Common Shares to the Purchaser unless the Purchaser shall
simultaneously purchase all of the Common Shares for the same consideration (if applicable, on an
as-converted basis) and on the same terms and conditions as the proposed sale described in

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the Notice of Sale. In the event that the material terms or conditions of the Transfer to the
Purchaser set forth in the Notice of Sale shall be modified, or the Purchaser shall refuse to
purchase Common Shares from an Investor exercising its rights of tag-along hereunder, the Parent
shall not Transfer to the Purchaser any Offered Securities without again complying with all of the
terms and provisions of this Section 3.02 hereof. In addition, any Offered Securities referred to
in the Notice of Sale that are not Transferred by the Parent to the proposed Purchaser in
compliance with this Section 3.02 prior to the date which is 90 calendar days following the
termination of the rights of any Investor to elect to participate in such Transfer pursuant to
Section 3.02(b), may not be Transferred by the Parent without complying again with all the
provisions of this Section 3.02.

     (e) Company’s Obligation not to Register Non-Complying Transfers. The Company agrees
not to register any Transfer of Common Shares by the Parent to which any Investor’s Tag-Along
Rights apply unless the Parent is in full compliance with the applicable provisions of this
Agreement.

     (f) Exempt Transfers. Tag-Along Rights shall not apply to: (i) any sale by the Parent
of Common Shares in a registered public offering or in a brokerage transaction on the Nasdaq Stock
Market or in a block sale to a party acting as a market maker or an investment banking firm acting
as underwriter, (ii) any Transfer by the Parent of Common Shares to an Affiliate of the Parent so
long as such Affiliate agrees in writing to be bound by this Agreement with respect to the
Transferred Common Shares or (iii) any Transfer by the Parent in a transaction or series of
transactions (including a reorganization) where the Parent and its Affiliates retain Control
(whether directly or indirectly) over the Company following such transaction or series of
transactions (in any such case, an “Exempt Transfer”). In the event of any such Exempt
Transfer of Common Shares to an Affiliate of the Parent, or any other transferee pursuant to clause
(iii), any holdings or Transfers of Common Shares by such Affiliate or transferee shall be
aggregated with the holdings and Transfers of Common Shares held by the Parent for the purposes of
determining whether the Threshold Amount has been exceeded.

     (g) Termination of Tag-Along Rights. The Tag-Along Rights shall automatically
terminate (i) in the case of any Investor (or any transferee that is an Affiliate or Related Fund),
if the aggregate of (x) the number of Common Shares held by each Investor and its Affiliates and
Related Funds as a group and (y) any Common Shares issuable upon conversion of any Loans (as
defined in the Credit Agreement) held by any Investors and their Affiliates and Related Funds as a
group represents less than five percent (5%) of the Adjusted Outstanding Common Shares.

ARTICLE IV

REGISTRATION RIGHTS 

     Section 4.01. Filing of Resale Shelf Registration Statement.

     (a) Filing. The Company shall file with the SEC within 180 days (the “Filing
Deadline”) prior to the first date on which Loans outstanding under the Credit Agreement will
be issuable into Loan Shares (the “Effectiveness Deadline”) a shelf registration statement
for an

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offering to be made on a continuous or delayed basis pursuant to Rule 415 of the Securities
Act (the “Shelf Registration Statement”) covering the resale from time to time of
Registrable Securities by Registrable Securities Holders in accordance with the methods or
distribution selected by such holders and shall use its reasonable best efforts to cause such Shelf
Registration Statement to be declared effective under the Securities Act as soon as practicable
after such filing, but in any event by the Effectiveness Deadline.

     If for any reason the SEC does not permit all of the Registrable Securities to be included in
a Registration Statement initially filed pursuant to this Agreement, then the Company shall prepare
and file as soon as possible after the date on which the SEC shall indicate as being the first date
or time that such filing may be made, but in any event no later than fifteen (15) days following
such date, or, in the event the SEC does not so indicate, no later than thirty (30) days after the
effective date of the Registration Statement filed pursuant to this Agreement, an additional
Registration Statement covering the resale of all Registrable Securities not already covered by an
existing and effective Registration Statement for an offering to be made on a continuous or delayed
basis pursuant to Rule 415 of the Securities Act. The Company shall use its reasonable best
efforts to cause each such Registration Statement to be declared effective under the Securities Act
as soon as possible, and shall use its reasonable best efforts to keep such Registration Statement
or a subsequent Registration Statement continuously effective under the Securities Act until the
date as of which such Registrable Securities Holders no longer hold any Registrable Securities. To
the extent the staff of the SEC does not permit all of the Registrable Securities that have not yet
been covered on an effective Registration Statement (the “Unregistered Registrable
Securities”) to be registered on such additional Registration Statement, the Company shall file
additional Registration Statements successively trying to register on each such Registration
Statement the maximum number of Unregistered Registrable Securities until all of the Registrable
Securities have been registered with the SEC.

     (b) Continued Effectiveness. Subject to Section 4.01(c), the Company shall use its
reasonable best efforts to have the Shelf Registration Statement declared effective on or prior to
the Effectiveness Deadline. The Company shall thereafter use its reasonable best efforts to
prepare and file with the SEC such amendments and supplements to the Shelf Registration Statement
or a subsequent Registration Statement and the Prospectus as may be necessary to keep the Shelf
Registration Statement or a subsequent Registration Statement current and continuously effective in
order to permit the Prospectus forming a part thereof to be usable by the Registrable Securities
Holders for the offer and sale of Registrable Securities until the date as of which such
Registrable Securities Holders no longer hold any Registrable Securities.

     (c) Suspension of Use of Shelf Registration Statement. The Company may suspend the
use of the Shelf Registration Statement by the Registrable Securities Holders (and any Parity
Registrable Securities Holders) if the Company furnishes to such holders a certificate signed by
the Chief Executive Officer, Chief Financial Officer or General Counsel of the Company stating that
(x) a Potential Material Event exists (and enclosing a copy of the written determination of the
Board referred to in the definition of Potential Material Event) or (y) a Company-initiated
registration statement for an underwritten offering of Capital Stock has become effective, in which
event the Company shall have the right to suspend such use for a period of not more than 90
calendar days after the date of such certificate (a “Shelf Suspension”), provided
that the Company shall not exercise a Shelf Suspension more than twice in any 12-month period with
at

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least a 60 calendar day interval between each Shelf Suspension. In the event of any Shelf
Suspension, no Registrable Securities Holder (or Parity Registrable Securities Holder) may offer or
sell any Registrable Securities (or Parity Registrable Securities) pursuant to the Shelf
Registration Statement during the period of the applicable Shelf Suspension.

     Section 4.02. Piggyback Registration.

     (a) Company Registration. If the Company proposes to register (including for this
purpose a registration effected by the Company for shareholders other than the Registrable
Securities Holders) any of its Capital Stock under the Securities Act in connection with the public
offering of such securities during any time when Loans are convertible under the Credit Agreement
prior to the date the Shelf Registration Statement is effective or during any period in which the
Shelf Registration Statement is not effective, the Company shall promptly give all Registrable
Securities Holders written notice of such registration at least thirty (30) calendar days prior to
the filing of such Registration Statement with the SEC, subject to Section 4.02(b)(iii) below.
Such Registrable Securities Holders shall have a period of twenty (20) calendar days after
receiving such written notice from the Company in which to elect to include some or all of such
Registrable Securities Holders’ Registrable Securities in such Registration Statement. Such
Registrable Securities Holders shall exercise their right to include Registrable Securities in such
Registration Statement by delivering a written notice to the Company within such twenty (20)
calendar day period specifying the number of Registrable Securities such Registrable Securities
Holders wishes to include in such Registration Statement. Subject to the provisions of Section
4.02(b)(ii) hereof, the Company shall use its reasonable best efforts to include the Registrable
Securities requested to be included by such Registrable Securities Holders in the Registration
Statement.

     (b) Underwritten Offerings.

     (i) If the registration for which the Company gives notice to the Registrable
Securities Holders under Section 4.02(a) is an underwritten offering, the Company shall not
be required under this Section 4.02 to include any of such Registrable Securities Holders’
Registrable Securities in such underwriting unless such Registrable Securities Holders
accept the terms of the underwriting as agreed upon between the Company and the
underwriters. In connection with such an underwritten offering, the Company (or other
Persons who may be entitled to select the underwriters) shall have the right to select the
managing underwriter or underwriters. If such Registrable Securities Holders wish to
distribute their Registrable Securities through such underwriting, such Registrable
Securities Holders shall enter into an underwriting agreement in customary form with the
underwriter or underwriters, subject to the limitations set forth in Section 4.07 hereof.
If such Registrable Securities Holders do not approve of the terms of such underwriting,
such Registrable Securities Holders may elect to withdraw from such offering by providing
written notice to the Company and the underwriter.

     (ii) Notwithstanding any other provision of this Section 4.02, if the underwriter
advises the Company that in the opinion of such underwriter, the distribution of all of the
Registrable Securities requested to be registered would materially and adversely affect the
distribution of all of the securities to be underwritten, then (x) the

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Company shall deliver to the Registrable Securities Holders who requested inclusion of
Registrable Securities held by them in the offering a copy of such underwriter’s opinion,
which opinion shall be in writing and shall state the reasons for such opinion and (y) the
number of Capital Stock (including the Registrable Securities) that may be included in such
registration shall be allocated in the order listed below:

     (A) first, to the Company;

     (B) second, to such Registrable Securities Holders and any Parity Registrable
Securities Holders proposing to register securities in such registration (pro rata
based on the respective numbers of Registrable Securities or Parity Registrable
Securities held by them and available for sale); and

     (C) third, to the other Persons proposing to register securities in such
registration, if any.

          If so determined by the underwriter, all Registrable Securities may be excluded from such
registration and underwritten offering so long as all Parity Registrable Securities are similarly
excluded. Any Registrable Securities excluded or withdrawn from such underwriting shall be
withdrawn from the registration.

     (iii) The Company shall have no obligation to register any Registrable Securities under
this Section 4.02 in connection with a registration by the Company (i) relating solely to
the sale of securities to participants in a Company equity incentive plan, or (ii) relating
to a corporate reorganization or other transaction under Rule 145 of the Securities Act (or
comparable provision under the laws of another jurisdiction, as applicable) or (iii) on Form
S-8 or any successor form to such form.

     Section 4.03. Expenses of Registration. All Registration Expenses incurred in
connection with any registration, filing, qualification or compliance pursuant to this Article IV,
shall be borne by the Company. All underwriting discounts, selling commissions and stock transfer
taxes applicable to the Registrable Securities and/or Parity Registrable Securities registered by
the Registrable Security Holders and/or Parity Registrable Securities Holders shall be borne by the
applicable Selling Holders pro rata based on the respective numbers of Registrable Securities
and/or Parity Registrable Securities registered by them.

     Section 4.04. Further Obligations of the Company. Whenever the Company effects the
registration of any Registrable Securities pursuant to this Article IV, the Company shall:

     (a) Filing of Amendments and Supplements to Maintain Effectiveness. Prepare and file
with the SEC such amendments (including post-effective amendments) and supplements to the
Registration Statement and the prospectus used in connection with the Registration Statement as may
be necessary to keep any applicable Registration Statement effective and to comply with the
provisions of the Securities Act with respect to the disposition of all Registrable Securities and
other securities of the Company covered by the Registration Statement at all times during the
period for which the Company is required to maintain the effectiveness of such Registration
Statement pursuant to the terms of this Agreement.

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     (b) Correction and Updating of Registration Statement and Prospectus. Upon the
occurrence of any event or passage of time that makes the financial statements included in a
Registration Statement ineligible for inclusion therein or any statement made in such Registration
Statement or Prospectus or any document incorporated or deemed to be incorporated therein by
reference untrue in any material respect or that requires any revisions to such Registration
Statement, Prospectus or other documents so that, in the case of such Registration Statement or the
Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading, as promptly as
reasonably possible, prepare a supplement or amendment, including a post-effective amendment, to
the affected Registration Statements or a supplement to the related Prospectus or any document
incorporated or deemed to be incorporated therein by reference, and file any other required
document so that, as thereafter delivered, no Registration Statement or any Prospectus will contain
an untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under which they
were made, not misleading.

     (c) Selling Security Holder Information. (i) If requested by an Investor, the
Company shall (i) as soon as practicable, incorporate in a prospectus supplement or post-effective
amendment such information as such Investor reasonably requests to be included therein relating to
the sale and distribution of Registrable Securities and/or Parity Registrable Securities,
including, without limitation, information with respect to the number of Registrable Securities
and/or Parity Registrable Securities being offered or sold, the purchase price being paid therefor
and any other terms of the offering of the Registrable Securities and/or Parity Registrable
Securities to be sold in such offering; (ii) as soon as practicable make all required filings of
such prospectus supplement or post-effective amendment after being notified of the matters to be
incorporated in such prospectus supplement or post-effective amendment; (iii) as soon as
practicable, supplement or make amendments to any Registration Statement if reasonably requested by
such Investor holding any Registrable Securities and/or Parity Registrable Securities; and (iv)
neither the Company nor any Subsidiary or Affiliate thereof shall identify any Investor as an
underwriter in any public disclosure or filing with the SEC without the prior written consent of
such Investor. If the Company is required by law to identify an Investor as an underwriter in any
public disclosure or filing with the SEC, it must notify such Investor in advance and such Investor
shall have the option, in its sole discretion, to consent to such identification as an underwriter
within ten (10) days or such Investor shall be deemed to have consented to have its Registrable
Securities and/or Parity Registrable Securities removed from the applicable Registration Statement.

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

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

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

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

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

     (i) Suspension; Potential Material Event. As promptly as practicable after becoming
aware thereof, notify the applicable Selling Holders (and, in the event of an underwritten
offering, the managing underwriters) of the existence of a Potential Material Event, in which case,
such Selling Holders shall not offer or sell any Registrable Securities or Parity Registrable
Securities, or engage in any other transaction involving or relating to such Registrable Securities
or Parity

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Registrable Securities, from the time of the giving of notice with respect to a Potential
Material Event until such Selling Holders receive written notice from the Company that such
Potential Material Event either has been disclosed to the public or no longer constitutes a
Potential Material Event; provided, however, that such Selling Holders may only be
required to cease offering and selling Registrable Securities and/or Parity Registrable Securities
pursuant to this Section 4.04(i) for a period of not more than ninety (90) calendar days after
receiving notice from the Company that a Potential Material Event exists; provided, further,
however, that the Company may only exercise its rights under this Section 4.04(i) twice in any
12-month period with at least a sixty (60) calendar day interval between such “black-out” periods.

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

     (k) Certificate Preparation. Cooperate with the applicable Selling Holders to
facilitate the timely preparation and delivery of certificates for the Registrable Securities
and/or Parity Registrable Securities to be offered pursuant to the Registration Statement and
enable such certificates for the Registrable Securities and/or Parity Registrable Securities to be
in such denominations or amounts as the case may be, as such Selling Holders may reasonably
request, and, within two (2) Business Days after a Registration Statement which includes
Registrable Securities and/or Parity Registrable Securities is ordered effective by the SEC, the
Company shall deliver, or shall cause legal counsel selected by the Company to deliver, to the
transfer agent for the Registrable Securities (with copies to such Selling Holders) an appropriate
instruction and opinion of such counsel. If the Selling Holders propose to sell Registrable
Securities and/or Parity Registrable Securities in the form of ADSs, the Company shall cooperate
with such Selling Holders to facilitate the timely delivery of the certificates referred to above
to the Depositary and shall (subject to the Deposit Agreement) cause the Depositary to cooperate
with such Selling Holders to facilitate the timely preparation and delivery of the depositary
receipts evidencing such ADSs in such denominations or amounts as the case may be, as such Selling
Holders may reasonably request.

     (l) Underwriting Agreement. In the event of any underwritten public offering, enter
into and perform its obligations under an underwriting agreement, in usual and customary form and
complying with the provisions of Section 4.07, with the managing underwriter of such offering.

     (m) Section 11 Information. Make available to the applicable Selling Holders, as soon
as reasonably practicable, an earnings statement covering the period of at least twelve (12)
months, but not more than eighteen (18) months, beginning with the first month of the first fiscal
quarter after the effective date of such Registration Statement, which earnings statement shall
satisfy the provisions of Section 11(a) of the Securities Act, including, without limitation, Rule
158 promulgated thereunder.

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

     Section 4.05. Information from Holder. It shall be a condition precedent to the
obligations of the Company to take any action pursuant to Section 4.01 and Section 4.02 with
respect to the Registrable Securities or Parity Registrable Securities of any Selling Holder that
such Selling Holder shall furnish to the Company such information regarding itself, the Registrable
Securities or Parity Registrable Securities held by it, and the intended method of disposition of
such securities as shall be required to effect the registration of such securities.

     Section 4.06. Preparation; Reasonable Investigation; Review by Counsel. In connection
with the preparation and filing of each Registration Statement registering Registrable Securities
and/or Parity Registrable Securities under the Securities Act, each Selling Holder, its
underwriters, if any, and counsel for such Selling shall:

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

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

     Section 4.07. Indemnification. In the event any Registrable Securities and/or Parity
Registrable Securities are included in a Registration Statement under this Article IV, the
following indemnification provisions shall apply.

     (a) Indemnification by the Company.

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

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

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

     (C) any violation or alleged violation by the Company of the Securities Act,
the Exchange Act, any state securities law or any rule or regulation promulgated
under the Securities Act, the Exchange Act or any state securities law, or any
applicable securities laws or Regulations of a jurisdiction outside the United
States.

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

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

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

     (b) Indemnification by the Registrable Securities Holders.

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

     (ii) Limitations on Indemnification. Notwithstanding the foregoing, no Selling
Holder shall be liable for:

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

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

     (c) Indemnification Mechanics. If there occurs an event which a Company Indemnified
Person or a Holder Indemnified Person (any such Person being the “Indemnitee”) hereto
asserts is an indemnifiable event pursuant to this Section, the Indemnitee shall promptly notify
the party obligated to provide indemnification hereunder (the “Indemnitor”) in writing of
such event. Delay or failure to so notify the Indemnitor shall only relieve the Indemnitor of its
obligations to the extent, if at all, that it is actually prejudiced by reason of such delay or
failure. The Indemnitor shall have a period of twenty (20) calendar days in which to respond
thereto. If the Indemnitor so elects, within such twenty (20) day period, it shall be entitled to
assume the defense of such claim (such election to be without prejudice to the right of the
Indemnitor to dispute whether such claim constitutes Losses under this Section 4.07). If the
Indemnitor fails to assume the defense of such matter within such twenty (20) calendar day period
or does not respond within such twenty (20) calendar day period, the Indemnitee against which such
matter has been asserted shall (upon delivering notice to such effect to the Indemnitor) have the
right to undertake, at the Indemnitor’s cost and expense, the defense, compromise or settlement of
such matter on behalf of the Indemnitee, provided that the Indemnitee shall not settle such claim
without the consent of the Indemnitor (which consent shall not be unreasonably withheld) and
provided further that the Indemnitor shall have the right to participate in (but not control) at
its own expense the defense of such asserted claim. In any event, the Indemnitee shall have the
right to participate in (but not control) at its own expense the defense of such asserted
liability; provided, however, that the Indemnitor shall pay the expenses of such defense if the
Indemnitee is advised by counsel in writing that there are one or more legal defenses available to
the Indemnitee that are different from or additional to those available to the Indemnitor (in which
case, if the Indemnitee notifies the Indemnitor in writing, the Indemnitor shall not have the right
to assume the defense of such asserted liability on behalf of the Indemnitee).

     (d) Contribution. If the indemnification provided for in this Section is held by a
court of competent jurisdiction to be unavailable to an Indemnitee with respect to any Losses, then
the Indemnitor, in lieu of indemnifying such Indemnitee hereunder, shall contribute to the amount
paid or payable by such Indemnitee as a result of such Losses in such proportion as is appropriate
to reflect the relative fault of the Indemnitor on the one hand and of the Indemnitee on the other
in connection with the Violation that resulted in such Losses, as well as any other relevant
equitable considerations; provided, however, that in no event shall any contribution under this
Section 4.07(d) from any Selling Holder, together with the amount of any indemnification payments
made by such Selling Holder pursuant to Section 4.07(b) above, exceed the net proceeds from the
offering received by such Selling Holder. The relative fault of the Indemnitor and of the
Indemnitee shall be determined by reference to, among other things, whether the Violation relates
to information supplied by the Indemnitor or the Indemnitee and the parties relative intent,
knowledge, access to information, and opportunity to correct or prevent such Violation.

     (e) No Inconsistent Underwriting Agreements. Notwithstanding any provision of this
Agreement to the contrary, the Selling Holders shall not be required to enter into an underwriting

- 23 -

 

agreement that contains indemnification and contribution provisions which, in the sole
discretion of such Selling Holders, materially differ from those contained in this Section 4.07.

     Section 4.08. Transfer of Registration Rights. Each Investor’s rights under this
Article IV may be assigned by such Investor (or any assignee permitted hereunder) to a transferee
or assignee of any of the Registrable Securities held by such Investor (or such assignee), provided
that (x) the Company is furnished a written notice of the name and address of such transferee or
assignee and the Registrable Securities with respect to which such registration rights are being
assigned and (y) such transferee or assignee agrees in writing to be bound by and subject to the
terms and conditions of this Agreement and (z) such assignee acquires Registrable Securities
representing at least one percent (1%) of the outstanding Common Shares.

     Section 4.09. Registration in Non-U.S. Jurisdictions. In the event that the ADSs
cease to be listed on the Nasdaq Global Market and have not been listed on another nationally
recognized securities exchange in the United States, but the Company has listed its Common Shares
(or related depositary shares) on any Designated Offshore Securities Market or other
internationally recognized securities exchange, then the Company shall use its reasonable best
efforts, to the extent permitted by applicable law, to provide the Registrable Securities Holders
with substantially the same rights and benefits in such jurisdiction as are provided for in this
Agreement, and to take such steps, if any, consistent with customary market practice at the time so
that the Registrable Securities are freely transferable in such listed market without transfer
restrictions imposed by the securities or similar laws of such jurisdiction.

     Section 4.10. Rule 144 Reporting. With a view to making available to the Registrable
Security Holders the benefits of Rule 144 and any other rule or regulation of the SEC that may at
any time permit a Registrable Security Holder to sell securities of the Company to the public
without registration or pursuant to a registration on Form F-3, the Company agrees, at any time it
is subject to the reporting requirements of the Securities Act and the Exchange Act, to:

     (a) make and keep public information available as those terms are understood and defined in
Rule 144;

     (b) file with the SEC in a timely manner all reports and other documents required of the
Company under the Securities Act and the Exchange Act;

     (c) furnish to any Registrable Security Holder, so long as the Registrable Security Holder
owns any Registrable Securities, upon request, (i) a written statement by the Company that it has
complied with the reporting requirements of Rule 144, the Securities Act and the Exchange Act, or
that it qualifies as a registrant whose securities may be resold pursuant to Form F-3 (at any time
after it so qualifies), (ii) a copy of the most recent annual or quarterly report of the Company
and such other reports and documents so filed by the Company and (iii) such other information as
may be reasonably requested in availing any Registrable Security Holder of any rule or regulation
of the SEC which permits the selling of any such securities without registration or pursuant to
such form; and

     (d) to take such action as is necessary to enable the Registrable Security Holders to utilize
Form F-3 for the sale of their Registrable Securities.

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     Section 4.11. Subsequent Registration Rights. From and after the date of this
Agreement, the Company shall not, without the prior written consent of Registrable Security Holders
holding a majority of the outstanding Registrable Securities, enter into any agreement with any
holder or prospective holder of any securities of the Company which provides such holder or
prospective holder of securities of the Company the right (a) to include such securities in any
registration filed under this Article IV hereof, unless under the terms of such agreement, such
holder or prospective holder may include such securities in any such registration only to the
extent that the inclusion of such securities shall not reduce the amount of the Registrable
Securities of the Registrable Security Holders that are included or (b) to demand registration of
their securities.

ARTICLE V

MISCELLANEOUS

     Section 5.01. Notices. All notices, requests, demands and other communications to any
party or given under this Agreement shall be in writing and delivered personally, by overnight
delivery or courier, by registered mail or by telecopier (with confirmation received) to the
parties at the address or telecopy number specified for such parties below (or at such other
address or telecopy number as may be specified by a party in writing given at least five business
days prior thereto). All notices, requests, demands and other communications shall be deemed
delivered when actually received:

(a)   If to the Company, at:

Xinhua Finance Media Limited

Suite 2003-5

Vicwood Plaza

199 Des Voeux Road

Central, Hong Kong

Attention: John McLean

Telephone: +852 3196 3939

Facsimile: +852 2541 8266

with a copy to:

Latham & Watkins

41st Floor

One Exchange Square

8 Connaught Place

Central, Hong Kong

Attention: David Zhang

Telephone: +852 2912 2503

Facsimile: +852 2522 7006

- 25 -

 

(b)   If to the Parent, at:

Xinhua Finance Limited

Suite 2003-5

Vicwood Plaza

199 Des Voeux Road

Central, Hong Kong

Attention: John McLean

Telephone: +852 3196 3939

Facsimile: +852 2541 8266

with a copy to:

Latham & Watkins

41st Floor

One Exchange Square

8 Connaught Place

Central, Hong Kong

Attention: David Zhang

Telephone: +852 2912 2503

Facsimile: +852 2522 7006

(c)   If to the Investor, at:

Patriarch Partners Media Holdings, LLC

c/o Patriarch Partners, LLC

40 Wall Street, 25th Floor

New York, NY 10005

Attention: Lynn Tilton; Craig Newman

Facsimile No.: (212) 825-2038

with a copy to:

Jones Day

2727 North Harwood Street

Dallas, TX 75201-1515

Attention: Michael O. Weinberg

Telephone: +214-969-2945

Facsimile: +214-969-5100

     Section 5.02. Counterparts. This Agreement may be executed simultaneously in one or
more counterparts, and by different parties hereto in separate counterparts, each of which when
executed shall be deemed an original, but all of which taken together shall constitute one and the
same instrument.

     Section 5.03. Modification or Amendment of Agreement. This Agreement may not be
modified or amended except by an instrument in writing signed by the Parent, the Company and each
Investor; provided, however, that an Investor and its affiliates may waive any or
all of such Investor’s rights hereunder without obtaining the consent of the Parent, the Company or
any other Investor.

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     Section 5.04. Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of and is enforceable by the respective successors and permitted assigns of the
parties hereto. Subject to Section 4.08, this Agreement shall not be assignable by a party
without the prior written consent of the other parties; provided, however, that
each Investor shall be entitled to assign, without the consent of the Parent and the Company, its
rights hereunder in whole or in part to an Affiliate or a Related Fund in connection with a
Transfer of some or all of the Common Shares held by such Investor to such Affiliate or Related
Fund (provided that such transferee shall first agree in writing to be bound by the terms hereof).
Any purported assignment of rights or obligations in violation of this Section 5.04 shall be null
and void and shall not be recognized by the Company.

     Section 5.05. Waiver of Jury. The parties hereby irrevocably and unconditionally
waive, to the fullest extent permitted by applicable law, any right that they may have to trial by
jury of any claim or cause of action, or in any legal proceeding, directly or indirectly based upon
or arising out of this Agreement or the transactions contemplated by this Agreement (whether based
on contract, tort, or any other theory). Each party (a) certifies that no representative, agent,
or attorney of any other party has represented, expressly or otherwise, that such other parties
would not, in the event of litigation, seek to enforce the foregoing waiver and (b) acknowledges
that it and the other Parties have been induced to enter into this Agreement by, among other
things, the mutual waivers and certifications in this section.

     Section 5.06. Integration. This Agreement, the other Credit Documents and the Deposit
Agreement contains and constitutes the entire agreement of the parties with respect to the subject
matter hereof and supersedes all prior negotiations, agreements and understandings, whether written
or oral, of the parties hereto.

     Section 5.07. Severability. If any term or other provision of this Agreement is
invalid, illegal or incapable of being enforced by any rule of law, or public policy, all other
conditions and provisions of this Agreement shall nevertheless remain in full force and effect so
long as the economic or legal substance of the transactions contemplated hereby is not affected in
any manner adverse to any party. Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith
to modify this Agreement so as to effect the original intent of the parties as closely as possible
in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the
extent possible.

     Section 5.08. Interpretation. As used in this Agreement, references to the singular
shall include the plural and vice versa and references to the masculine gender shall include the
feminine and neuter genders and vice versa, as appropriate. Unless otherwise expressly provided in
this Agreement (a) the words “hereof’, “herein” and “hereunder” and words of similar import when
used in this Agreement shall refer to this Agreement as a whole and not to any particular provision
of this Agreement and (b) article, section, subsection, schedule and exhibit references are
references with respect to this Agreement unless otherwise specified. Unless the context otherwise
requires, the term “including” shall mean “including, without limitation.” The headings in this
Agreement are included for convenience of reference only and shall not affect in any way the
meaning or interpretation of this Agreement.

- 27 -

 

     Section 5.09. Ambiguities. This Agreement was negotiated between legal counsel for
the parties and any ambiguity in this Agreement shall not be construed against the party who
drafted this Agreement.

     Section 5.10. Further Assurances. In order to (a) carry out more effectively the
purposes of this Agreement, (b) enable the parties to exercise and enforce their rights and
remedies hereunder, promptly upon the reasonable request by any party hereto, the Company and the
Investors shall (with the expenses paid by the party responsible as provided in this Agreement)
shall (i) correct any defect or error that may be discovered in this Agreement or in the execution,
delivery, acknowledgment or recordation of this Agreement and (ii) execute, acknowledge, deliver,
record, file and register, any and all such further acts, conveyances, assignments, notices of
assignment, transfers, certificates, assurances and other instruments, in each case, as such
requesting party may require from time to time.

     Section 5.11. No Third-Party Rights. This Agreement is not intended, and shall not be
construed, to create any rights in any parties other than the Company, any Parity Registrable
Securities Holder and the Investors and their Related Funds, and no Person may assert any rights as
third-party beneficiary hereunder, except as provided in Section 4.06(b) and Section 4.07(e).

     Section 5.12. No Waiver; Remedies. No failure or delay by any party in exercising any
right, power or privilege under this Agreement shall operate as a waiver of the right, power or
privilege. A single or partial exercise of any right, power or privilege shall not preclude any
other or further exercise of the right, power or privilege or the exercise of any other right,
power or privilege.

     Section 5.13. Governing Law. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of New York applicable to agreements made or to be
performed in such state. Any legal suit, action or proceeding arising out of or based upon this
Agreement or the transactions contemplated hereby (“Related Proceedings”) may be instituted
in the federal courts of the United States of America located in the Borough of Manhattan in the
City of New York or the courts of the State of New York in each case located in the Borough of
Manhattan in the City of New York (collectively, the “Specified Courts”), and each party
irrevocably submits to the non-exclusive jurisdiction of such courts in any such suit, action or
proceeding. Service of any process, summons, notice or document by mail to such party’s address
set forth above shall be effective service of process for any suit, action or other proceeding
brought in any such court. The parties irrevocably and unconditionally waive any objection to the
laying of venue of any suit, action or other proceeding in the Specified Courts and irrevocably and
unconditionally waive and agree not to plead or claim in any such court that any such suit, action
or other proceeding brought in any such court has been brought in an inconvenient forum.

     With respect to any Related Proceeding, each party irrevocably waives, to the fullest extent
permitted by applicable law, all immunity (whether on the basis of sovereignty or otherwise) from
jurisdiction, service of process, attachment (both before and after judgment) and execution to
which it might otherwise be entitled in the Specified Courts.

- 28 -

 

     Section 5.14. Arbitration. At the option of the Company, the Parent or any Investor,
any dispute, controversy or claim arising out of or relating to this Agreement, or the breach,
termination or invalidity thereof, may be settled by arbitration in accordance with the United
Nations Commission on International Trade Law (“UNCITRAL”) Arbitration Rules in force at
the date of this contract. If the parties to this agreement agree to arbitration, the appointing
authority shall be the Hong Kong International Arbitration Centre (the “HKIAC”) and the
place of arbitration shall be in Hong Kong at the HKIAC. There shall be a panel of three
arbitrators and the language of the arbitration shall be English. Any such arbitration shall be
administered by HKIAC in accordance with HKIAC Procedures for the Administration of International
Arbitration in force at the date of this contract, including such additions to the UNCITRAL
Arbitration Rules as are therein contained. Notwithstanding anything in this Agreement or in the
UNCITRAL Rules or otherwise, the arbitration tribunal shall not have the power to award injunctive
relief or any other equitable remedy of any kind unless such award is expressly appealable and
subject to de novo review by the federal courts of the United States of America located in the
Borough of Manhattan in the City of New York or the courts of the State of New York located in the
Borough of Manhattan in the City of New York.

     Section 5.15. Agent for Service of Process. The Company and Parent irrevocably
appoints Law Debenture Corporate Services Inc. with an office at 400 Madison Avenue, 4th
Floor, New York, NY 10017 as its agent for service of process in any action or proceeding relating
to this Agreement and consents to the service of copies of the summons and complaint and any other
process which may be served in any action or proceeding relating to this Agreement by the mailing
of copies of such process to such agent.

     Section 5.16. Jurisdiction. A judgment on the arbitrators’ award may be entered in
any court having jurisdiction over the parties. The parties hereby consent to the non-exclusive
jurisdiction of the United States District Court for the Southern District of New York, for such
purposes, provided, however, that, if such United States District Court does not have jurisdiction,
the parties hereby consent to the non-exclusive jurisdiction of the courts of the State of New York
in the Borough of Manhattan for such purposes provided, further, that, if such courts of the State
of New York in the Borough of Manhattan do not have jurisdiction, the parties hereby consent to the
non-exclusive jurisdiction of the Hong Kong International Arbitration Centre (such United States
District Court, court of the State of New York and Hong Kong International Arbitration Centre being
herein referred to as a “Consented Court”). Each party irrevocably waives any objection
which it may have at any time to the laying of venue of any suit, action or proceeding arising out
of or relating to the enforcement of any judgment of the arbitrators brought in a Consented Court,
irrevocably waives any claim that any such suit, action or proceeding brought in such Consented
Court has been brought in an inconvenient forum and further irrevocably waives the right to object,
with respect to any claim, suit, action or proceeding brought in such Consented Court for the
enforcement of any judgment of the arbitrators, that such Consented Court does not have
jurisdiction over such party.

     Section 5.17. Judgment Currency. The Company agrees to indemnify each Investor
against any loss incurred by such Investor as a result of any judgment or order being given or made
for any amount due hereunder and such judgment or order being expressed and paid in a currency (the
“Judgment Currency”) other than United States dollars and as a result of any variation as
between (i) the rate of exchange at which the United States dollar amount is

- 29 -

 

converted into the Judgment Currency for the purpose of such judgment or order, and (ii) the
rate of exchange at which such Investor is able to purchase United States dollars with the amount
of the Judgment Currency actually received by such Investor. The foregoing indemnity shall
constitute a separate and independent obligation of the Company and shall continue in full force
and effect notwithstanding any such judgment or order as aforesaid. The term “rate of exchange”
shall include any premiums and costs of exchange payable in connection with the purchase of, or
conversion into, the relevant currency.

     Section 5.18. Waiver of Immunities. To the extent that the Company or any of its
respective properties, assets or revenues may have or may hereafter become entitled to, or have
attributed to them, any right of immunity, on the grounds of sovereignty, from any legal action,
suit or proceeding, from set-off or counterclaim, from the jurisdiction of any U.S. or non-U.S.
court, from service of process, from attachment upon or prior to judgment, or from attachment in
aid of execution of judgment, or from execution of judgment, or other legal process or proceeding
for the giving of any relief or for the enforcement of any judgment, in any jurisdiction in which
proceedings may at any time be commenced, with respect to their obligations, liabilities or any
other matter under or arising out of or in connection with this Agreement or any additional
agreement, the Company hereby irrevocably and unconditionally, to the extent permitted by
applicable law, waives and agrees not to plead or claim any such immunity and consents to such
relief and enforcement.

     Section 5.19. No Advisory or Fiduciary Relationship. The Company and the Parent
acknowledge and agree that (a) entering into this Agreement is an arm’s-length commercial
transaction between the Company and the Parent, on the one hand, and each Investor, on the other
hand, (b) each Investor has not assumed and will not assume an advisory or fiduciary responsibility
in favor of the Company or the Parent with respect to the transactions contemplated hereby or the
process leading thereto, (c) each Investor has no obligation to the Company or the Parent with
respect to the transactions contemplated hereby except the obligations expressly set forth in this
Agreement, (d) each Investor and its respective Affiliates may be engaged in a broad range of
transactions that involve interests that differ from those of the Company and the Parent, and (e)
the Company and the Parent have consulted their own legal, accounting, regulatory and tax advisors
to the extent each deemed appropriate.

     Section 5.20. Confidentiality.

     (a) Each Investor agrees to keep confidential all MNPI information provided to it by
any party hereto pursuant to or in connection with this Agreement that is designated by the
provider thereof as confidential; provided that nothing herein shall prevent any Investor
from disclosing any such information (a) to any other Investor or Affiliates thereof, (b) to
its employees, directors, agents, attorneys, accountants and other professional advisors or
those of any of its Affiliates, (c) upon the request or demand of any Governmental
Authority, (d) in response to any order of any court or other Governmental Authority or as
may otherwise be required pursuant to any requirement of Regulation, (e) that has been
publicly disclosed, (f) to the National Association of Insurance Commissioners or any
similar organization or any nationally recognized rating agency that requires access to
information about a Lender’s investment portfolio in connection with ratings issued with
respect to such Lender, (g) in connection with the

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exercise of any remedy hereunder or under any other Credit Document, (h) if agreed by
the Company in its sole discretion, to any other Person, or (i) in compliance with Section
2.01(d).

     (b) All information, including requests for waivers and amendments, furnished by the
Company pursuant to, or in the course of administering, this Agreement or the other Credit
Documents will be syndicate-level information, which may contain material non-public
information about the Company and its Affiliates and their related parties or their
respective securities. Accordingly, each Investor represents to the Company that it has
identified one or several credit contacts who may receive information that may contain
material non-public information in accordance with its compliance procedures and applicable
Regulation, including federal and state securities laws.

Remainder of page intentionally left blank; signatures on following pages

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

	 	 	 	 	 	 	 
	 	 	XINHUA FINANCE MEDIA LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Andrew Chang	 	 
	 

	 	 	 	 

Name: Andrew Chang
	 	 
	 

	 	 	 	Title: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	ZOHAR CDO 2003-1, LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Patriarch Partners VIII, LLC,	 	 
	 

	 	 	 	its Collateral Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lynn Tilton	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Lynn Tilton	 	 
	 

	 	 	 	Title: Manager	 	 
	 
	 	 	 	 	 	 
	 	 	ZOHAR II 2005-1, LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Patriarch Partners XVI, LLC,	 	 
	 

	 	 	 	its Collateral Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lynn Tilton	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Lynn Tilton	 	 
	 

	 	 	 	Title: Manager	 	 
	 
	 	 	 	 	 	 
	 	 	XINHUA FINANCE LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Andrew Chang	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Andrew Chang	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 

 

 

Schedule I

Investors

	1.	 	ZOHAR CDO 2003-1, LIMITED
	 
	2.	 	ZOHAR II 2005-1, LIMITED

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