Document:

Exhibit 4.23

EXECUTION COPY

AMENDMENT TO SECURITY HOLDERS AGREEMENT

          THIS
AMENDMENT TO SECURITY HOLDERS AGREEMENT (the “Amendment”) dated as of           , 2009 amends that
certain
Security Holders Agreement by and among FriendFinder Networks Inc., f/k/a
Penthouse Media Group Inc., a Nevada corporation, (the “Company”), the holders
of the Series A Convertible Preferred Stock of the Company listed on Exhibit A
thereto, and certain of the remaining holders of any capital stock of the
Company listed on Exhibit B thereto (the “Security Holders Agreement”).

          WHEREAS, Post and its affiliated funds, as
the Required Holders (as such term is defined in the Purchase Agreement) have
agreed to amend the Purchase Agreement and that certain Securities Purchase
Agreement (15.0% Senior Secured Notes Due 2010) dated as of August 28, 2006,
among the Issuer, the “Guarantors” defined therein and party thereto, the
Holders as “Holders” defined therein and party thereto, and the Agent, as
“Administrative Agent” and “Collateral Agent” defined therein and party thereto
by entering into that certain Third Amendment and Limited Waiver dated as of
October 8, 2009 by and among the Company, the guarantors party thereto, the
Agent and Post and its affiliated funds as the Required Holders.

          WHEREAS, the Company, the Majority Equity
Sponsors and the additional signatories hereto representing holders of a
majority of the shares of Common Stock (including shares of Common Stock
issuable upon conversion of the Series A Preferred or exercise of the Warrants)
held by the New Series A Investors and their Affiliates originally issued to
the New Series A Investors pursuant to the Purchase Agreement (the “Required
Investors”) desire to amend the Security Holders Agreement.

          NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

          1.
Definitions. All capitalized terms used herein and not otherwise defined
herein shall have the respective meanings set forth in the Security Holders
Agreement.

          2.
Amendments. The Security Holders Agreement is hereby amended as follows:

	
   

  	
   

  
	
   

  	
            (a)
  All references to “Penthouse Media Group Inc.” in the Security Holders
  Agreement are hereby deleted and replaced with “FriendFinder Networks Inc.”

  
	
   

  	
   

  
	
   

  	
            (b)
  Section 3.1.2 of the Security Holders Agreement is hereby amended by
  replacing the first word “Beginning” with the phrase “Except as set forth in
  Section 3.1.2(b), beginning” and restating it in its entirety as Section
  3.1.2(a).

  
	
   

  	
   

  
	
   

  	
            (c)
  Section 3.1.2 of the Registration Rights Agreement is further hereby amended
  by adding the following new clause at the end thereof:

  

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Early Demand
  Registration.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  Notwithstanding
  the provisions in Section 3.1.2(a) above, so long as Section 7.01(v) of the
  Purchase Agreement remains in effect and has not been waived, upon receipt of
  a written request from the Required New Series A Investors on behalf of the
  New Series A Investors and their Affiliates, as applicable, within 20 days
  after the consummation of a Qualified IPO (the “Early Demand Request”),
  pursuant to section 3.1.2(b)(ii) below, the Company shall cause the first
  Demand Registration Statement to be filed with the SEC no later than four
  months after the consummation of a Qualified IPO (the “Early Demand
  Registration Statement”) and use its best efforts to cause such Early Demand
  Registration Statement to be declared effective by the SEC for all
  Registrable Securities that the Company has been requested to register no
  later than 180 days after the consummation of a Qualified IPO.
  Notwithstanding the foregoing, the declaration of effectiveness of the Early
  Demand Registration Statement may be delayed to provide for any customary
  lock-up period and extension required by the underwriters of the Qualified
  IPO, which delay shall not constitute a breach of this Section 3.1.2(b). For
  the avoidance of doubt, the Early Demand Registration Statement filed
  pursuant to this Section 3.1.2(b) shall constitute one of the three Demand
  Registrations permitted under Section 3.1.2(a) and shall be subject to all
  procedural requirements of and provisions relating to a Demand Registration
  and Demand Registration Statement under this Agreement except as explicitly
  set forth otherwise in this Section 3.1.2(b). 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  Upon receipt
  of an Early Demand Request in accordance with Section 2.2(b)(i) above, the
  Company will promptly give written notice to all Series A Investors who
  beneficially own any Registrable Securities of its intention file the Early
  Demand Registration Statement, of the registration form of the SEC that has
  been selected by the Company and of such Series A Investors’ rights to
  request that any Registrable Securities they hold be included (the “Early
  Piggyback Notice”). The Company will use commercially reasonable efforts to
  include, and to cause the underwriter or underwriters to include, in the
  proposed offering, on the same terms and conditions as the securities of the
  Company included in such offering, all Registrable Securities that the
  company has been requested in writing, within 15 calendar days after the
  Early Piggyback Notice is given, to register by the Warrant Rights Holders
  entitled to receive an Early Piggyback Notice. In the case of any
  registration of Registrable Securities in an underwritten offering pursuant
  to this Section 3.1.2(b) all Series A Investors proposing to distribute their
  securities pursuant to this Section 3.1.2(b)(ii) shall, at the request of the
  Company, enter into an agreement in customary form with the underwriter or
  underwriters.

  

	
   

  	
   

  
	
   

  	
            (d)
  Section 3.4 of the Security Holders Agreement is hereby amended by adding the
  words “or 3.2(b)” after “3.1” in the first sentence thereof.

  
	
   

  	
   

  
	
   

  	
            (e)
  Section 6 of the Security Holders Agreement is hereby amended by adding the
  following new Section 6.17 at the end thereof:

  
	
   

  	
   

  
	
   

  	
  “6.17 Disposition
  of Series A Preferred. Notwithstanding the disposition by a Series A
  Investor of all of its Series A Preferred, such person or entity shall remain
  a Series A Investor for purposes of this agreement.”

  

          3.
Counterparts; Facsimile Signatures. This Amendment may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but one and the
same instrument; signature pages may be detached from multiple separate
counterparts and attached to a single counterpart so that all signature pages
are physically attached to the same document. Facsimile signatures shall be
considered originals for all purposes.

          4.
Security Holders Agreement Remains in Effect. Except as amended hereby,
the Security Holders Agreement remains in full force and effect. 

[Remainder of page left blank intentionally.]

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

	
   
  	
   
  	
   
  	
   
  
	
   
  	
  COMPANY:
  
	
   
  	
   
  	
   
  
	
   
  	
  FRIENDFINDER NETWORKS INC.
  
	
   
  	
  By:
  	
  /s/ Ezra
  Shashoua
  
	
   
  	
   
  	   	 	 
	
   
  	
  Name:
  	
  Ezra
  Shashoua
  
	
   
  	
  Title:
  	
  Chief
  Financial Officer
  

[Signatures continue on following page.]

	
   
  	
   
  	
   
  	
   
  
	
   
  	
  /s/ Marc H.
  Bell
  
	
   
  	   	 	 	 
	
   
  	
  MARC H. BELL
  
	
   
  	
   
  	
   
  	
   
  
	
   
  	
  PET CAPITAL
  PARTNERS LLC, as Agent
  
	
   
  	
  By:
  	
  NAFT Ventures
  I, LLC, Managing Member
  
	
   
  	
   
  	
   
  	
   
  
	
   
  	
   
  	
  By:
  	
  /s/ Marc H.
  Bell
  
	
   
  	
   
  	
   
  	   	 
	
   
  	
   
  	
  Name: Marc
  H. Bell
  
	
   
  	
   
  	
  Title:
  Managing Member
  
	
   
  	
   
  	
   
  	
   
  
	
   
  	
  PET CAPITAL PARTNERS II LLC
  
	
   
  	
   
  	
   
  	
   
  
	
   
  	
  By:
  	
  /s/ Marc H.
  Bell
  
	
   
  	
   
  	   	 	 
	
   
  	
  Name: Marc H. Bell
  
	
   
  	
  Title: Managing Member
  
	
   
  	
   
  	
   
  	
   
  
	
   
  	
  NAFT
  VENTURES I, LLC
  
	
   
  	
   
  	
   
  	
   
  
	
   
  	
  By:
  	
  /s/ Marc H.
  Bell
  
	
   
  	
   
  	   	 	 
	
   
  	
  Name: Marc
  H. Bell
  
	
   
  	
  Title:
  Managing Member
  

[Signatures continue on following page.]

	
   
  	
   
  	
   
  	
   
  
	
   
  	
  /s/ Daniel
  C. Staton
  
	
   
  	   	 	 	 
	
   
  	
  DANIEL C.
  STATON
  
	
   
  	
   
  	
   
  
	
   
  	
  STATON
  FAMILY INVESTMENTS, LTD
  
	
   
  	
   
  	
   
  
	
   
  	
  By: 
  	
  /s/ Daniel
  C. Staton
  
	
   
  	
   
  	   	 	 
	
   
  	
  Name:
  	
  Daniel C. Staton
  
	
   
  	
  Title:
  	
  Managing Member
  
	
   
  	
   
  	
   
  
	
   
  	
  STATON MEDIA
  LLC
  
	
   
  	
   
  	
   
  
	
   
  	
  By: 
  	
  /s/ Daniel
  C. Staton
  
	
   
  	
   
  	   	 	 
	
   
  	
  Name:
  	
  Daniel C. Staton
  
	
   
  	
  Title:
  	
  Managing Member
  
	
   
  	
   
  	
   
  
	
   
  	
  ABSOLUTE
  RETURN EUROPE FUND
  
	
   
  	
   
  	
   
  
	
   
  	
  By: 
  	
   
  
	
   
  	
   
  	   	 	 
	
   
  	
  Name:
  
	
   
  	
  Title:
  

[Signature Page to Amendment to Security
Holders Agreement]Exhibit 4.24

Exhibit 4.24

EXECUTION
COPY

SECURITY HOLDERS AGREEMENT

SECURITY
HOLDERS AGREEMENT, dated as of December 6, 2007 (the “Agreement”), by and
among Penthouse Media Group Inc., a Nevada corporation (the “Company”),
the holders of the Warrants to purchase Common Stock of the Company (the
“Warrants”) listed on Exhibit A and Exhibit B hereto
(collectively with their Permitted Transferees, the “Warrant Holders”),
and certain of the remaining holders of any capital stock of the Company, all of
whom hold common stock of the Company (the “Common Stock”) listed on
Exhibit C hereto (collectively with their Permitted Transferees, the
“Other Equity Holders”).  The parties hereto (other than the
Company) and any other Person who shall hereafter become a party to this
Agreement are sometimes hereafter referred to, individually, as a “Security
Holder” and, collectively, as the “Security Holders.”
 Capitalized terms used herein and not otherwise defined shall have the
meanings ascribed to them in ARTICLE V.

RECITALS

WHEREAS,
the holders listed in Schedule I hereto (collectively with their Permitted
Transferees, the “First Lien Note Holders”), U.S. Bank National
Association, as administrative agent and collateral agent, Interactive Network,
Inc, a Nevada corporation and wholly-owned subsidiary of the Company
(“Interactive”), the Company and the subsidiaries of the Company and of
Interactive entered into that certain Securities Purchase Agreement (the
“First Lien Notes Purchase Agreement”) for the sale and purchase of
Interactive’s Senior Secured Notes due 2011 (the “First Lien Notes”) and
a portion of the Warrants; and

WHEREAS,
the holders listed in Schedule II hereto (collectively with their Permitted
Transferees, the “Sellers’ Secured Note Holders”), U.S. Bank National
Association, as administrative agent and collateral agent, Interactive, the
Company and the subsidiaries of the Company and Interactive entered into that
certain Sellers’ Securities Agreement (the “Sellers’ Securities
Agreement”) for the sale and purchase of Interactive’s Subordinated
Secured Notes due 2011 (the “Sellers’ Secured Notes”) and the balance of
the Warrants; and

WHEREAS,
the Security Holders own or may be issued or acquire shares of Common Stock,
Warrants or other equity securities of the Company (such Common Stock and
Warrants, together with any other equity securities of the Company being
referred to herein as the “Company Stock”) from time to time in the
discretion of the Board;

WHEREAS,
in connection with the First Lien Notes Purchase Agreement and the Sellers’
Securities Agreement, the parties hereto desire to restrict the sale,
assignment, transfer, encumbrance or other disposition of Company Stock that the
parties hereto own or may hereafter acquire, and to provide for the voting of
shares of Company Stock on the terms and conditions as set forth below; 

NOW,
THEREFORE, in consideration of the premises and of the terms and conditions
contained herein, the parties hereto agree as follows:

			
	
 
	
 
	
 

 

ARTICLE I
VOTING

1.1

Shares
Governed.  Each Security Holder agrees to hold all shares of Company
Stock now owned or hereinafter acquired by it registered in its name or
beneficially owned by it subject to, and to vote the shares of Company Stock in
accordance with, the provisions of this Agreement.

1.2

Board
Composition.  During the term of this Agreement, if each of the Required
Holders of the First Lien Notes and Required Holders of the Sellers’ Secured
Notes designate their respective Board Designee (as defined in each of the First
Lien Note Holders Purchase Agreement and Sellers’ Securities Agreement), in any
and all elections of directors of the Company (whether at a meeting or by
written consent in lieu of a meeting), each Security Holder agrees to vote all
shares of Company Stock by him, her or it in such manner as may be necessary to
elect (and maintain in office) such Board Designee as a member of the Board (and
every committee thereof).  The parties hereto agree that (i) the Board will
meet at least one (1) time per quarter, (ii) if the Board Designee has been
elected to the Board, he or she will be entitled to receive copies of all
materials distributed at all meetings of the Board (and every committee thereof)
and (iii) if the Board Observer (as defined in the First Lien Notes Purchase
Agreement and Sellers’ Securities Agreement) has also been designated, he or she
will be entitled to receive copies of all materials distributed at all meetings
of the Board (and every committee thereof).

1.3

Other
Rights.  Except as provided by this Agreement, or any other agreement
entered into in connection with the First Lien Notes Purchase Agreement, each
Security Holder shall exercise the full rights of a stockholder of the Company
with respect to its shares of Company Stock.

ARTICLE II
RESTRICTIONS ON
TRANSFERS

2.1

Permitted
Transfers.  Any Transfer of shares of Company
Stock by any Security Holder shall comply with Sections 2.2, 2.3,
2.4 and 2.5; provided, however, that Section
2.5 shall not apply to:  (a) the Transfer of shares by any Warrant
Holder to or among any Affiliate of such Warrant Holder or any Person holding
(as of the date hereof) an investment or other equity interest or interest as a
beneficiary in such Warrant Holder, directly or indirectly, (b) the Transfer of shares by the Majority Equity Sponsor to
or among any Affiliate of the Majority Equity Sponsor or any shareholders,
members or directors of any Majority Equity Sponsor, and the Transfer of shares
by any Majority Equity Sponsor to a spouse, children, grandchildren or other
living descendants of any shareholder, member or director of any Majority Equity
Sponsor, or to a trust of which there are no principal (i.e., corpus)
beneficiaries other than the shareholder, member or director and/or his or her
spouse, children, grandchildren or other living descendants, and provided that
the existing beneficiaries and/or trustee(s) and/or grantor(s) of such trust
have the power to act with respect to the trust’s assets without court approval,
(c) the Transfer of shares by any Security Holder to or among his or her spouse,
children, grandchildren or other living descendants, or 

			
	
 
	
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to
a trust of which there are no principal (i.e., corpus) beneficiaries other than
the grantor and/or his or her spouse, grandchildren or other living descendants,
and provided that the existing beneficiaries and/or trustee(s) and/or grantor(s)
of such trust have the power to act with respect to the trust’s assets without
court approval, (d) the Transfer of shares to the Company in connection with the
Company’s exercise of a “call” or repurchase right by the Company in connection
with the termination of an employment relationship or otherwise and (e) the
Transfer of any shares by a Warrant Holder to any other Warrant Holder.  Transferees to whom Transfers are permitted
pursuant to this Section 2.1 are referred to herein as “Permitted
Transferees.”  Unless in compliance with this Section 2.1 and
with Sections 2.2, 2.3, 2.4 and 2.5, no Permitted Transferee may further effect
or allow a Transfer of such shares to any Person other than the Person from whom
the shares were received or another Permitted Transferee of the Person from whom
the shares were received.

2.2

Compliance
with Securities Laws.  No Security Holder shall Transfer any shares of
Company Stock unless the Transfer is pursuant to an effective registration
statement under the Securities Act or a valid exemption from registration under
the Securities Act and in compliance with any other applicable federal
securities laws and state securities or “blue sky” laws.

2.3

Recordation.
 The Company shall not record upon its books any Transfer of shares of
Company Stock held or owned by any of the Security Holders to any other Person
except Transfers in accordance with this Agreement.

2.4

Obligations
of Transferees.  No Transfer of shares of Company Stock by Security
Holders otherwise permitted pursuant to this Agreement shall be effective unless
(x) the Transferee (including a Permitted Transferee pursuant to Section
2.1) shall have executed an appropriate document in form and substance
reasonably satisfactory to the Company confirming that (i) the Transferee takes
such shares subject to all the terms and conditions of this Agreement to the
same extent as its Transferor was bound by and entitled to the benefits of such
provisions and (ii) such shares shall bear legends, substantially in the forms
required by Section 2.6, and (y) such document shall have been delivered
to and approved by the Company prior to such Transferee’s acquisition of such
shares.

2.5

Tag-Along
Rights.

2.5.1

Sale
Notice.  If, prior to the consummation of a Qualified IPO, any Security
Holder (an “Offeror Security Holder”) proposes to sell any of the Company
Stock owned by it to any Person or group as defined in Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended (a “Proposed Transferee”) in
any case other than a Transfer to a Permitted Transferee, then the Offeror
Security Holder shall first give written notice (the “Sale Notice”) to
the Warrant Holders and their Affiliates, as applicable, that hold Company Stock
(each, an “Eligible Holder”) and to the Company.  Each such notice
shall state that the Offeror Security Holder desires to make such sale,
referring to Section 2.5 of this Agreement, and shall specify (x) the
number of shares of Company Stock proposed to be sold by the Offeror Security
Holder pursuant to the offer (the “Offer Shares”), and (y) the identity
of the proposed purchaser, the price, the form of consideration and the material
terms (collectively, the “Offer Terms”) pursuant to which such sale is
proposed to be made, 

			
	
 
	
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including,
without limitation, any indemnification obligations of the Offeror Security
Holder.  

2.5.2

Elections.  Within fourteen (14) days of the date of receipt of
the Sale Notice, each Eligible Holder electing to sell shares to the Proposed
Transferee on the Offer Terms (a “Tag-Along Seller”) shall deliver to the
Offeror Security Holder and the Company a written notice making such election
and specifying the number of shares sought to be sold (such Tag-Along Seller’s
“Tag-Along Shares”).

2.5.3

Allocations.
 If the sum of the number of Offer Shares and the number of all Tag-Along
Shares (such sum, the “Total Offer Shares”) is less than or equal to the
actual number of shares that the Proposed Transferee agrees to purchase, then
each Eligible Holder making a Tag-Along Election may sell all of its Tag-Along
Shares, and the Offeror Security Holder may sell all of its Offer Shares, to the
Proposed Transferee on the Offer Terms.  If the number of Total Offer
Shares exceeds the actual number of shares that the Proposed Transferee agrees
to purchase, then (a) the right of each Tag-Along Seller and the Offeror
Security Holder to sell shares to the Proposed Transferee on the Offer Terms
shall be allocated according to its respective Pro Rata Portion (measured as of
the date of the Sale Notice) and (b) the transaction with the Proposed
Transferee shall not proceed unless the Proposed Transferee agrees to purchase
shares from the Tag-Along Sellers and the Offeror Security Holder in accordance
with such allocation. “Pro
Rata Portion” shall mean, with respect to the Offeror Security Holder or a
Tag-Along Seller, a fraction, (x) the numerator of which is the number of shares
of Common Stock (including shares of Common Stock issuable upon conversion of
any convertible securities or exercise of warrants) held by the Offeror Security
Holder or Tag-Along Seller, as applicable, and (y) the denominator of which is
the sum of the number of shares of Common Stock (including shares of Common
Stock issuable upon conversion of any convertible securities or exercise of
warrants) held by all Tag-Along Sellers plus the number of shares of
shares of Common Stock (including shares of Common Stock issuable upon
conversion of convertible securities or exercise of warrants) held by the
Offeror Security Holder.

2.5.4

Seller’s
Rights to Transfer.  A sale to a Proposed Transferee pursuant to
Section 2.5 shall only be consummated if the Proposed Transferee shall
purchase, on the Offer Terms, not later than 90 days following the date of the
Sale Notice, a number of shares equal to or exceeding the number of Offer
Shares.  After such 90 day period, any such sale will again be subject to
the notice and other requirements of this Section 2.5. 

2.6

Additional
Provisions Relating to Restrictions on Transfers.

2.6.1

Legends.
 Each of the Security Holders hereby agrees that each outstanding
certificate representing shares of Company Stock held or owned by such Security
Holder or its Transferee, and issued prior to the date when the applicable
restrictions are terminated pursuant to Section 2.6.3, shall bear
endorsements reading substantially as follows:

(a)

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR UNDER SECURITIES LAWS OF ANY STATE AND
MAY NOT BE 

			
	
 
	
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TRANSFERRED,
SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SAID ACT AND
APPLICABLE STATE SECURITIES LAWS.

(b)

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND
CONDITIONS SET FORTH IN A SECURITY HOLDERS AGREEMENT DATED AS OF DECEMBER 6,
2007 AND A REGISTRATION RIGHTS AGREEMENT DATED AS OF DECEMBER 6, 2007, AS EITHER
MAY BE AMENDED FROM TIME TO TIME.  COPIES OF EACH AGREEMENT MAY BE OBTAINED
FROM THE ISSUER OR FROM THE HOLDER OF THIS SECURITY.  NO TRANSFER OF SUCH
SECURITIES WILL BE MADE ON THE BOOKS OF THE ISSUER UNLESS ACCOMPANIED BY
EVIDENCE OF COMPLIANCE WITH THE TERMS OF SUCH AGREEMENTS.

2.6.2

Copy
of Agreement.  A copy of this Agreement shall be filed with the
corporate secretary of the Company and kept with the records of the Company and
shall be made available for inspection by any Security Holder of the Company at
the principal executive offices of the Company.

2.6.3

Termination
of Restrictions.  The restrictions referred to in the endorsement
required pursuant to Section 2.6.1(a) shall cease and terminate as to any
particular shares of Company Stock when the Company determines that such
restriction is no longer required in order to assure compliance with the
Securities Act. The restriction referred to in the endorsement required pursuant
to Section 2.6.1(b) shall cease and terminate as to any particular shares
of Company Stock when the Company reasonably determines that the provisions of
this Agreement are no longer applicable to such shares or this Agreement shall
have terminated in accordance with its terms.

ARTICLE III 

PREEMPTIVE RIGHTS

3.1

Preemptive
Rights.  Prior to a Qualified IPO and for so long as a Warrant Holder
and/or its Affiliates (or its or their Permitted Transferees, as applicable)
collectively own at least 20 percent (20%) of the Warrants issued to the Warrant
Holder on the date hereof or a corresponding amount of Company Stock, each time
the Company proposes to offer any shares of, or any securities convertible into
or exercisable for any shares of any class of its capital stock (“New Stock”),
the Company shall first make an offering of such New Stock to such Warrant
Holder and its Affiliates (or its or their Permitted Transferees, as applicable)
in accordance with the following provisions:

3.1.1

Notice
to Holders of Intention to Sell.  The Company shall deliver a notice
(the “Investor Notice”) to such Warrant Holder and its Affiliates, as
applicable, (or its or their Permitted Transferees, as applicable) stating (i)
its bona fide intention to offer such New Stock, (ii) the number of shares of
such New Stock to be offered, and (iii) the terms upon which it proposes to
offer such New Stock.  The Investor Notice shall be 

			
	
 
	
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delivered
by the Company no less than 15 business days prior to the proposed date of the
sale of New Stock.

3.1.2

 Election
to Purchase and Consummation.  Within 15 business days after delivery
of the Investor Notice, such Warrant Holder and/or its Affiliates (or its or
their Permitted Transferees, as applicable) may elect to purchase its pro rata
portion, on a fully diluted, as converted basis, of such New Stock on the same
terms and conditions offered or provided by the Company to third-party
purchasers of the New Stock.  If such Warrant Holder and/or its Affiliates
(or its or their Permitted Transferees, as applicable) elects to purchase any
such New Stock, such Warrant Holder and its Affiliates, as applicable (or its or
their Permitted Transferees, as applicable), and the Company shall enter into a
stock purchase agreement containing the same terms and conditions as the stock
purchase agreement to be entered into between the Company and the third-party
purchasers.  The Warrant Holder and any of its Affiliates (or its or their
Permitted Transferees, as applicable) electing to purchase shares of New Stock
shall deliver payment (or other consideration) for such shares, and the Company
shall issue and deliver such shares in consideration of such payment at the
closing of the sale of the New Stock to the third-party purchasers.  The
rights set out in this Section 3.1.2 will terminate immediately prior to
the closing of a Qualified IPO.

3.1.3

Sale
of the Remaining Portion.  The Company may, during the forty-five (45)
calendar day period following the expiration of the period provided in Section
3.1.2 offer any remaining unsubscribed portion of the New Stock (the
“Available Shares”) to any Person or Persons upon terms not more
favorable to the offeree than those specified in the Investor Notice.  If
the Company does not enter into an agreement for the sale of such portion of the
New Stock within such period, or if such agreement is not consummated within 60
calendar days of the execution thereof, the rights provided in this Section
3.1.3 shall be deemed to be revived and such New Stock shall not be offered
unless first reoffered to the such Warrant Holder and its Affiliates, as
applicable, (or its or their Permitted Transferees, as applicable), in
accordance herewith.

3.2

Excluded
Transactions.  The rights set forth in this Section 3.2 shall
not be applicable to: (i) up to an aggregate of 26,879,946 shares (as such
shares are presently constituted, subject to proportional adjustment for any
stock split or combination or reclassification) of Common Stock (or options,
warrants or rights therefor) issued or issuable to employees, officers or
directors of, or contractors, consultants or advisers to, the Company pursuant
to the Company’s equity incentive or benefits plan approved by the Board, (ii)
up to an aggregate of 13,439,973 shares (as such shares are presently
constituted, subject to proportional adjustment for any stock split or
combination or reclassification) of Common Stock (or options, warrants or rights
therefor) issued to financial institutions or lessors in connection with
commercial credit arrangements, equipment financings or similar transactions
approved by the Board, (iii) shares of Common Stock issued or issuable upon the
conversion of shares of the Company’s Series A Convertible Preferred Stock, (iv)
up to an aggregate of 13,439,973 shares (as such shares are presently
constituted, subject to proportional adjustment for any stock split or
combination or reclassification) of Common Stock (or options, warrants or rights
therefor) issued to in connection with strategic collaborations, development
agreements or licensing transactions, the terms of which are approved by the
Board, (v) the issuance of capital stock or rights to acquire capital stock 

			
	
 
	
-
6 -
	
 

 

(provided
that such issuance does not result in a Change of Control of the Company) issued
in connection with the acquisition by the Company of substantially all of the
assets or capital stock of another Person, the terms of which are approved by
the Board, (vi) stock splits, stock dividends or other similar transactions and
(vii) participation in a Qualified IPO.

ARTICLE IV
INFORMATION
OBLIGATIONS

4.1

Basic
Financial Information.  The Company covenants and agrees that,
commencing on the date of this Agreement, for so long as the Warrant Holders,
their Permitted Transferees and/or their respective Affiliates hold Company
Stock or any other securities of the Company, it will furnish to the Warrant
Holders, their Permitted Transferees and their respective Affiliates, as
applicable:

4.1.1

as
soon as available and in any event within 45 days after the end of each fiscal
quarter of the Company and its subsidiaries commencing with the first fiscal
quarter of the Company ending after the date of this Agreement, (A) consolidated
balance sheets, consolidated statements of operations and retained earnings and
consolidated statements of cash flows of the Company and its subsidiaries, (B)
consolidating balance sheets, consolidating statements of operations and
retained earnings and consolidating statements of cash flows of the Company and
each of its subsidiaries, and (C) management’s narrative discussing the results
for such period and forecasting any identifiable trend, in each case, as at the
end of such quarter, and for the period commencing at the end of the immediately
preceding fiscal year and ending with the end of such quarter, setting forth in
each case in comparative form the figures for the corresponding date or period
of the immediately preceding fiscal year, all in reasonable detail, certified by
an authorized officer of the Company as fairly presenting, in all material
respects, the financial position of the Company and its subsidiaries, as of the
end of such quarter and the results of operations and cash flows of the Company
and its subsidiaries, for such quarter;

4.1.2

as
soon as available, and in any event within 90 days after the end of each fiscal
year, consolidated balance sheets, consolidated statements of operations and
retained earnings and consolidated statements of cash flows of the Company and
its subsidiaries as at the end of such fiscal year, setting forth in comparative
form the corresponding figures for the immediately preceding fiscal, all in
reasonable detail and prepared in accordance with generally accepted accounting
principles, including management’s discussion and analysis, and accompanied by a
report and an unqualified opinion, prepared in accordance with generally
accepted auditing standards of the Company’s independent accountants (which
opinion shall be without (A) a “going concern” or like qualification,
modification or exception, or (B) any qualification or exception as to the scope
of such audit);

4.1.3

as
soon as available, and in any event within 30 days after the end of each
calendar month commencing with the first calendar month of the Company and its
subsidiaries ending after the date of this Agreement, a “flash report” for such
month setting forth in reasonable detail revenue, expenses (itemizing operating
expenses and SG&A), 

			
	
 
	
-
7 -
	
 

 

capital
expenditures and EBITDA, consolidated for the Company and its subsidiaries and
by segment; and

4.1.4

(A)
as soon as available, and in any event at least 30 days prior to the
commencement of each fiscal year, an annual operating plan and budget for such
fiscal year for the Company and its subsidiaries and (B) promptly upon
preparation, any amendments to such annual operating plans and budgets.

ARTICLE V
DEFINITIONS

As
used in this Agreement, the following terms shall have the meanings ascribed to
them below:

“Affiliate”
of a Person shall mean a Person directly or indirectly controlled by,
controlling or under common control with such Person, including, without
limitation, managed accounts.

“Agreement”
shall have the meaning ascribed to it in Introduction hereto.

“Board”
shall mean the Board of Directors of the Company.

“Common
Stock” shall have the meaning ascribed to it in the Introduction hereto.

“Company”
shall have the meaning ascribed to it in the Introduction hereto.

“Company
Stock” shall have the meaning ascribed to it in the Recitals hereto.

“Eligible
Holder” shall have the meaning ascribed to it in Section 2.5.1
hereof.

 “First
Lien Note” shall have the meaning ascribed to it in the Introduction
hereto.

“First
Lien Notes Purchase Agreement” shall have the meaning ascribed to it in the
Recitals hereto. 

 “Majority
Equity Sponsor” means, collectively, PET Capital Partners LLC, PET Capital
Partners II LLC, Absolute Europe Fund, NAFT Ventures I, LLC and their respective
managers, principals and Affiliates.

“Offer
Shares” shall have the meaning ascribed to it in Section 2.5.1
hereof.

“Offer
Terms” shall have the meaning ascribed to it in Section 2.5.1
hereof.

“Offeror
Security Holder” shall have the meaning ascribed to it in Section
2.5.1 hereof.

“Other
Equity Holders” shall have the meaning ascribed to it in the Introduction
hereto.

			
	
 
	
-
8 -
	
 

 

“Permitted
Transferees” shall have the meaning ascribed to it in Section 2.1
hereof.

“Person”
shall mean an individual, corporation, limited liability company, partnership,
joint venture, trust, unincorporated organization, government (or any department
or agency thereof) or other entity.

“Pro
Rata Portion” shall have the meaning ascribed to it in Section 2.5.2
hereof.

“Proposed
Transferee” shall have the meaning ascribed to it in Section 2.5.1
hereof.

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

“Required
First Lien Note Holders” shall have the meaning set forth in Section 1.01 of
the First Lien Notes Purchase Agreement.

“Required
Sellers’ Secured Note Holders” shall have the meaning set forth in Section
1.01 of the Sellers’ Securities Agreement.

“Sale
Notice” shall have the meaning ascribed to it in Section 2.5.1
hereof.

“SEC”
shall mean the Securities and Exchange Commission.

“Sellers’
Secured Notes” shall have the meaning ascribed to it in the Introduction
hereto.

“Sellers’
Securities Agreement” shall have the meaning ascribed to it in the Recitals
hereto.

“Securities
Act” shall mean the Securities Act of 1933, as amended.

“Security
Holder” and “Security Holders” shall have the meaning ascribed to
such terms in the Introduction hereto.

“Tag-Along
Sellers” shall have the meaning ascribed to it in Section 2.5.1
hereof.

“Tag-Along
Shares” shall have the meaning ascribed to it in Section 2.5.2
hereof.

“Total
Offer Shares” shall have the meaning ascribed to it in Section 2.5.2
hereof.

“Transfer”
shall mean to sell, assign, pledge or encumber or otherwise transfer or convey,
directly or indirectly, whether or not for consideration.

“Transferee”
shall mean any Person to whom a Transfer is made, regardless of the method of
Transfer.

			
	
 
	
-
9 -
	
 

 

“Transferor”
shall mean any Person by whom a Transfer is made, regardless of the method of
Transfer.

“Warrant”
shall have the meaning ascribed to it in the Introduction hereto.

“Warrant
Holders” shall have the meaning ascribed to it in the Introduction
hereto.

ARTICLE VI
MISCELLANEOUS

6.1

Effectiveness;
Term.

(a)

This
Agreement shall become effective simultaneously with the consummation of the
transactions contemplated by the First Lien Notes Purchase Agreement and the
Sellers’ Securities Agreement.

(b)

This
Agreement shall terminate upon the occurrence of a Qualified IPO.

6.2

Ownership.
 Each Security Holder represents and warrants that (a) he, she or it now
owns his, her or its shares of Company Stock free and clear of liens or
encumbrances (except as contemplated by this Agreement and the agreements
referenced herein), and (b) he, she or it has full power and capacity to
execute, deliver and perform this Agreement, which has been duly executed and
delivered by, and evidences the valid and binding obligation of, such Security
Holder enforceable in accordance with its terms.

6.3

No
Voting or Conflicting Agreements.  Other than as set forth herein, no
Security Holder shall grant any proxy or enter into or agree to be bound by any
voting trust with respect to Company Stock nor, at any time, shall any Security
Holder enter into any stockholder agreements or arrangements of any kind with
any Person with respect to the Company Stock inconsistent with the provisions of
this Agreement.  

6.4

Specific
Performance.  The parties hereto acknowledge that there would be no
adequate remedy at law if any party fails to perform any of its obligations
hereunder, and accordingly agree that each party, in addition to any other
remedy to which it may be entitled at law or in equity, shall be entitled to
compel specific performance of the obligations of any other party under this
Agreement in accordance with the terms and conditions of this Agreement.
 Any remedy under this Section 6.4 is subject to certain equitable
defenses and to the discretion of the court before which any proceedings
therefor may be brought.

6.5

Notices.
 All notices, statements, instructions or other documents required to be
given hereunder shall be in writing and shall be given either personally or by
mailing the same in a sealed envelope, by overnight courier or by first-class
mail, postage prepaid and either certified or registered, in either case, return
receipt requested, or by telecopy, addressed to the Company at its principal
offices and to the other parties at their addresses reflected on the signature
pages hereto.  Each party hereto, by written notice given to the other
parties hereto in accordance with this Section 6.5, may change the
address to which 

			
	
 
	
-
10 -
	
 

 

notices,
statements, instructions or other documents are to be sent to such party.
 All notices, statements, instructions and other documents hereunder that
are mailed or telecopied shall be deemed to have been given on the date of
mailing or, in the case of telecopying, upon confirmation of receipt.

6.6

Successors
and Assigns.  This Agreement shall be binding upon and shall inure to
the benefit of the parties, and their respective successors and assigns. The
Company shall not permit the transfer of any shares of Company Stock on its
books or issue a new certificate representing any shares of Company Stock unless
and until the person to whom such shares of Company Stock are transferred shall
have executed a written agreement, substantially in the form of this Agreement,
pursuant to which such person becomes a party to this Agreement and agrees to be
bound by all the provisions hereof as if such person were a Security Holder.
 This Agreement shall be effective and binding upon the parties hereto upon
the execution hereof by PET Capital Partners LLC, PET Capital Partners II LLC,
Marc H. Bell, Daniel C. Staton, Absolute Return Europe Fund, Florescue Family
Corporation and the Warrant Holders.  This Agreement will be binding upon
other holders of the Company Stock only at such time as such holders agree in
writing to become a party to, and be bound by, this Agreement.  

6.7

Recapitalizations
and Exchanges Affecting Company Stock.  The provisions of this
Agreement shall apply, to the full extent set forth herein with respect to
Company Stock, to any and all shares of capital stock or equity securities of
the Company or any successor or assign of the Company (whether by merger,
consolidation, sale of assets or otherwise) which may be issued in respect of,
in exchange for, or in substitution of, the Company Stock, or which may be
issued by reason of any stock dividend, stock split, reverse stock split,
combination, recapitalization, reclassification or otherwise.  Upon the
occurrence of any of such events, numbers of shares and amounts hereunder and
any other appropriate terms shall be appropriately adjusted, as determined in
good faith by the Board.

6.8

Additional
Shares. In the event that subsequent to the date of this Agreement any
shares or other securities are issued on, or in exchange for, any shares of
Company Stock by reason of any stock dividend, stock split, consolidation of
shares, reclassification, reorganization or consolidation involving the Company,
such shares or securities shall be deemed to be Company Stock for purposes of
this Agreement.

6.9

Governing
Law.  This Agreement shall be governed and construed and enforced in
accordance with the laws of the State of New York, without regard to the
principles of conflicts of law thereof.

6.10

Descriptive
Headings, Etc.  The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning of terms
contained herein.  Unless the context of this Agreement otherwise requires,
references to “hereof,” “herein,” “hereby,” “hereunder” and similar terms shall
refer to this entire Agreement.

6.11

Amendment
or Waiver.  This Agreement may be amended (or the provisions of this
Agreement waived) only by an instrument in writing signed by (i) the
Company, (ii)  the Warrant Holders and/or their Permitted Transferees, as
applicable, and (iii) the Majority 

			
	
 
	
-
11 -
	
 

 

Equity
Sponsor.  Notwithstanding the foregoing, this Agreement may be amended with
only the written consent of the Company for the sole purpose of including
additional parties as “Other Equity Holders.”  

6.12

Severability.
 If any term or provision of this Agreement shall to any extent be invalid
or unenforceable, the remainder of this Agreement shall not be affected thereby,
and each term and provision of this Agreement shall be valid and enforceable to
the fullest extent permitted by law.  Upon the determination that any term
or other provision is invalid, illegal or incapable of being enforced, the
parties shall negotiate in good faith to modify this Agreement so as to effect
their original intent as closely as possible in an acceptable manner to the end
that transactions contemplated hereby are fulfilled to the extent possible.
 Without limiting the foregoing, to the extent any term or provision of
this Agreement is inconsistent with applicable state laws governing the
qualification or registration of securities, such term or provision shall
automatically be deemed to be amended to the minimum degree necessary to comply
with such laws. 

6.13

Complete
Agreement; Counterparts.  This Agreement constitutes the entire
agreement and supersedes all other agreements and understandings, both written
and oral, among the parties or any of them, with respect to the subject matter
hereof.  Nothing contained in this Agreement shall be interpreted so as to
limit any restrictions on the ownership or Transfer of shares contained in any
other agreement between the Company or any of its Affiliates and any Security
Holder.  This Agreement may be executed by any one or more of the parties
hereto in any number of counterparts, each of which shall be deemed to be an
original, but all such counterparts shall together constitute one and the same
instrument.  

6.14

Attorneys’
Fees.  In the event that any suit or action is instituted to enforce
any provision in this Agreement, the prevailing party shall be entitled to all
costs and expenses of maintaining such suit or action, including reasonable
attorneys’ fees.

6.15

Waiver.
 No waivers of any breach of this Agreement extended by any party hereto to
any other party shall be construed as a waiver of any rights or remedies of any
other party hereto or with respect to any subsequent breach.

6.16

No
Third Party Beneficiaries.  The provisions of this Agreement shall be
only for the benefit of the parties to this Agreement, and no other Person shall
have any third party beneficiary or other right hereunder.

[remainder of page intentionally left blank]

			
	
 
	
-
12 -
	
 

 

 

The
parties below have executed the SECURITY HOLDERS AGREEMENT as of the date set
forth in the first paragraph hereof.

COMPANY:

PENTHOUSE
MEDIA GROUP INC.

6800
Broken Sound Parkway 

Boca
Raton, FL 33487

By:/s/
Daniel C. Staton
                              

Print
Name: 
Daniel C. Staton                     

Title: 
Chairman                                            

SECURITY
HOLDERS:

PET
CAPITAL PARTNERS LLC

6800
Broken Sound Parkway 

Boca
Raton, FL 33487

By:
 NAFT Ventures I LLC, Managing Member

By:/s/
Marc H. Bell
                              

Name:
Marc H. Bell

Title:
Managing Member

[signatures continue on following page]

PET
CAPITAL PARTNERS II LLC

6800
Broken Sound Parkway 

Boca
Raton, FL 33487

By:
/s/ Marc H. Bell
                                      

Name:
Marc H. Bell

Title:
Managing Member

By:
PET Capital Partners LLC, Attorney-in-Fact

By:
NAFT Ventures I LLC, Managing Member

By:
/s/ Marc H. Bell
                               

Name:
 Marc H. Bell

Title:
 Managing Member

/s/
Marc H. Bell
                                             

Marc
H. Bell

6800
Broken Sound Parkway

Boca
Raton, FL 33487

/s/
Daniel C. Staton
                                       

Daniel
C. Staton

6800
Broken Sound Parkway

Boca
Raton, FL 33487

[signatures continue on following page]

PET
CAPITAL PARTNERS II LLC

6800
Broken Sound Parkway 

Boca
Raton, FL 33487

By:
_______________________________

Name:
Marc H. Bell

Title:
Managing Member

ABSOLUTE
RETURN EUROPE FUND LIMITED

By:
/s/ Glenn Kennedy___________________

Name:
Glenn Kennedy

Title:
authorized signatory

FLORESCUE
FAMILY CORPORATION

By:

__________________________________

Name:
Barry Florescue

Title:
President

______________________________________

Marc
H. Bell

6800
Broken Sound Parkway 

Boca
Raton, FL 33487

[signatures continue on following page]

PET
CAPITAL PARTNERS II LLC

6800
Broken Sound Parkway 

Boca
Raton, FL 33487

By:
_______________________________

Name:
Marc H. Bell

Title:
Managing Member

ABSOLUTE
RETURN EUROPE FUND LIMITED

_______________________________

_______________________________

By: PET Capital Partners LLC, Attorney-in-Fact

By: NAFT Ventures I, LLC, Managing Member

By:
___________________

Name: Marc H. Bell

Title:
Managing Member

FLORESCUE
FAMILY CORPORATION

By:

/s/ Barry Florescue                         

Name:
Barry Florescue

Title:
President

______________________________________

Marc
H. Bell

6800
Broken Sound Parkway 

Boca
Raton, FL 33487

[signatures continue on following page]

 

ANDREW B. CONRU TRUST AGREEMENT

116
El Nido

Portola
Valley, CA  94028

By:
/s/ Andrew B. Conru
                              

Name:
 Andrew B. Conru

Title:
  Trustee

[signatures
continue on following page]

[Signature Page to Security Holders Agreement]

MAPSTEAD
TRUST, created on April 16, 

2002

c/o
Lars Mapstead

180
Horizon Way

Aptos,
CA  95003

By:
/s/ Lars Mapstead
                                    

Name:
Lars Mapstead

Title:
 Trustee

By:
/s/ Marin A. Mapstead
                            

Name:
Marin A. Mapstead,

Title:
  Trustee

[signatures
continue on following page]

[Signature Page to
Security Holders Agreement]

MARC
H. BELL

6800
Broken Sound Parkway, Suite 200

Boca
Raton, FL 33487

/s/
Marc H. Bell                                          

[Signature Page to Security Holders
Agreement]

STATON
FAMILY INVESTMENTS, LTD.

312
Walnut Street, Suite 1151

Cincinnati,
OH 45202

By:
/s/ Daniel C. Staton
                                 

Name:
Daniel C. Staton

Title:

[Signature Page to Security Holders
Agreement]

SATELITE
SENIOR INCOME FUND, 

LLC

623
Fifth Avenue, 19th floor

New
York, NY  10022

By:
Satellite Asset Management, LP.,

Its
Investment Manager

By:
/s/ Simon Raykher
                                    

Name:
Simon Raykher

Title:
  General Counsel

 

[signatures
continue on following page]

[Signature
Page to Security Holders Agreement]

ROCK/VIEW
TRADING, LTD.

c/o
RockView Capital

900
Third Avenue

New
York, NY  10022

By:
/s/ Kevin Schweitzer
                                    

Name:
Kevin Schweitzer

Title:
  Chief Investment Officer,

Rock
View Management, LLC

[signatures
continue on following page]

[Signature
Page to Security Holders Agreement]

CAMOFI
MASTER LDC  

350
Madison Ave.

New
York, NY  10017

By:
/s/ Richard Smithline
                              

Name:
Richard Smithline

Title:
  Director 

CAMHZN
MASTER LDC

350
Madison Ave.

New
York, NY  10017

By:
/s/ Richard Smithline
                              

Name:
Richard Smithline

Title:
  Director 

[Signature
Page to Security Holders Agreement]

VISIUM
LONG BIAS OFFSHORE FUND, LTD.

By:
Visium Asset Management, LLC, its Investment Advisor

950
Third Avenue 29th Fl.

New
York, NY  10022

By:
/s/ Mark Gottlieb
                                     

Name:
Mark Gottlieb

Title:
  Member and Chief Compliance Officer of Visium Asset Management,
LLC.

VISIUM
LONG BIAS FUND, LP.

By:
Visium Asset Management, LLC, its Investment Advisor

950
Third Avenue 29th Fl.

New
York, NY  10022

By:
/s/ Mark Gottlieb
                                    

Name:
Mark Gottlieb

Title:
  Member and Chief Compliance Officer of Visium Asset Management,
LLC.

VISIUM
BALANCED OFFSHORE FUND, LTD.

By:
Visium Asset Management, LLC, its Investment Advisor

950
Third Avenue 29th Fl.

New
York, NY  10022

By:
/s/ Mark Gottlieb
                                   

Name:
Mark Gottlieb

Title:
  Member and Chief Compliance Officer of Visium Asset Management,
LLC.

[signatures
continue on following page]

[Signature
Page to Security Holders Agreement]

VISIUM
BALANCED FUND, LP

By:
Visium Asset Management, LLC, its Investment Advisor

950
Third Avenue 29th Fl.

New
York, NY  10022

By:
/s/ Mark Gottlieb
                                      

Name:
Mark Gottlieb

Title:
  Member and Chief Compliance Officer of Visium Asset Management,
LLC

[signatures
continue on following page]

[Signature
Page to Security Holders Agreement]

DEL
MAR MASTER FUND LTD.

By:
 Del Mar Asset Management, L.P.

711
Fifth Avenue, 5th Floor

New
York, NY  10022

By:
/s/ Marc V. Simons
                                

Name:
Marc V. Simons

Title:
  Director

[Signature
Page to Security Holders Agreement]

EPIC
DISTRESSED DEBT OPPORTUNITY MASTER FUND, LTD.

c/o
Epic Asset Management 

One
Bridge Plaza, Suite 265

Fort
Lee, NJ  07024

By:
/s/ Herbert Seif
                                        

Name:
Herbert Seif 

Title:
  Director

By:
/s/ James Duplessie
                                 

Name:
James Duplessie

Title:
  Managing Member, Epic Asset Management

[Signature
Page to Security Holders Agreement]

IMPERIAL
CAPITAL, LLC

By:
/s/ Mark Martis
                                      

Name:
Mark Martis

Title:
  Chief Operating Officer

[Signature Page to Security Holders Agreement]

EXHIBIT A

FIRST
LIEN WARRANT HOLDERS

		
	
Name
	
Shares of Common Stock 

Issuable Upon Exercise

	
Satellite
Senior Income Fund, LLC
	
32,724,439

	
Epic
Distressed Debt Opportunity Master Fund, LTD
	
3,926,933

	
Del
Mar Master Fund, Ltd.
	
3,272,444

	
Rock/View
Trading, Ltd.
	
2,290,711

	
CAMOFI
Master LDC
	
2,536,144

	
CAMHZN
Master LDC
	
409,055

	
Visium
Long Bias Offshore Fund, Ltd.
	
482,847

	
Visium
Long Bias Fund, LP
	
161,656

	
Visium
Balanced Offshore Fund, Ltd.
	
672,507

	
Visium
Balanced Fund, LP
	
319,211

	
Marc
H. Bell
	
1,686,827

	
Staton
Family Investments, Ltd.
	
1,686,827

	
Imperial
Capital, LLC
	
306,159

	
Andrew
B. Conru Trust Agreement
	
30,706,195

	
Mapstead
Trust, created April 16, 2002
	
3,030,340

EXHIBIT B

SECOND LIEN WARRANT HOLDERS

		
	
Name
	
Shares of Common Stock 

Issuable Upon Exercise

	
Andrew
B. Conru Trust Agreement, Andrew B. Conru, Trustee
	
21,625,418

	
Mapstead
Trust, created on April 16, 2002, Lars Mapstead and Marin A. Mapstead,
Trustees
	
2,134,175

EXHIBIT C

STOCK HOLDERS

		
	
Name
	
Shares of Common Stock 

	
PET
Capital Partners LLC
	
29,162,600 voting common stock

	
Marc
H. Bell
	
1,958,500 voting common stock

1,041,400 non-voting common stock

	
Daniel
C. Staton
	
29,668,100 voting common stock

1,041,400 non-voting common stock

	
Absolute
Return Europe Fund
	
5,177,200 voting common stock

7

SCHEDULE I

LIST FIRST LIEN NOTE HOLDERS

	
	
Satellite
Senior Income Fund, LLC

	
Epic
Distressed Debt Opportunity Master Fund, Ltd

	
Del
Mar Master Fund, Ltd.

	
Rock/View
Trading, Ltd.

	
Camofi
Master LDC

	
Camzhn
Master LDC

	
Visium
Long Bias Offshore Fund, Ltd.

	
Visium
Long Bias Fund, LP

	
Visium
Balanced Offshore Fund, Ltd.

	
Visium
Balanced Fund, LP

	
Marc
H. Bell

	
Staton
Family Investments, Ltd.

	
Imperial
Capital, LLC

	
Andrew
B. Conru Trust Agreement

	
Mapstead
Trust, created April 16, 2002

	
Imperial
Capital, LLC

SCHEDULE II

LIST SELLERS’ SECURED NOTE HOLDERS

	
	
Andrew
B. Conru Trust Agreement, Andrew B. Conru Trustee

	
Mapstead
Trust created on April 16, 2002, Lars Mapstead and Marin A. Mapstead
Trustees

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