Document:

EX-4.55

EXHIBIT
4.55

Execution Version

SECURITY AGREEMENT

     THIS SECURITY AGREEMENT, dated as of October 21, 2008 (as amended, restated, supplemented,
extended or otherwise modified from time to time, this “Agreement”), between XINHUA FINANCE
MEDIA LIMITED, a Cayman Islands limited company (the “Grantor”), and PATRIARCH PARTNERS
AGENCY SERVICES, LLC, a Delaware limited liability company, as agent for itself and for the benefit
of the Lenders (as defined in the Credit Agreement referenced below) (in such capacity, the
“Agent”).

W I T N E S S E T H:

     WHEREAS, the Grantor has entered into that certain Credit Agreement, dated as of the date
hereof, among the Grantor, the Subsidiaries of the Grantor from time to time guarantors thereunder,
the lenders from time to time party thereto (the “Lenders”) and Agent, as agent for the
Lenders (as amended, amended and restated, supplemented, increased, extended or otherwise modified
from time to time, the “Credit Agreement”; capitalized terms used but not defined herein
shall have the meanings ascribed to them in the Credit Agreement);

     WHEREAS, it is a condition precedent to the Credit Agreement that the Grantor shall have
entered into this Agreement in order to grant to the Agent for the benefit of the Agent and the
Lenders (collectively, the “Secured Parties”) a security interest in the Collateral (as
defined herein); and

     WHEREAS, the Grantor will derive substantial direct and indirect benefit from the transactions
contemplated by the Credit Documents;

     NOW, THEREFORE, in consideration of the mutual agreements contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor
hereby agrees with the Agent for the benefit of the Secured Parties as follows:

     Section 1. Definitions.

     (a) Capitalized terms used but not defined herein shall have the meanings ascribed to them in
the Credit Agreement.

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

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

 

 

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

     (e) Unless otherwise defined in this Agreement or in the Credit Agreement, terms defined in
Article 8 or 9 of the UCC are used in this Agreement as such terms are defined in such Article 8 or
9.

     Section 2. Grant of Security Interest. To secure the due and prompt payment and
performance by the Grantor of the Obligations (as defined below), the Grantor hereby pledges,
charges, assigns and grants to the Agent, for itself and for the benefit of the other Secured
Parties, a continuing security interest in and valid Lien upon all of the Grantor’s right, title
and interest in and to the following, in each case, as to each type of property described below,
whether now owned or hereafter acquired by the Grantor, wherever located and whether now or
hereafter existing or arising, to the extent and only to the extent such property is attributable
to Media Assets (collectively, the “Collateral”):

     (a) all license agreements, media rights agreements, distribution agreements, content
agreements, program agreements, broadcast agreements, syndication agreements, simulcast agreements,
transmission agreements, and similar agreements with respect to television (including analogue
terrestrial, digital terrestrial, cable, satellite, internet and mobile wireless) operations in the
PRC, including, without limitation those contracts, agreements and documents described on
Schedule X hereto;

     (b) the following (collectively, the “Security Collateral”):

     (i) (A) all Capital Stock of whatever class of any Media Company (including (x) the
Capital Stock set forth on and as otherwise described on Schedule I hereto and
issued by the Media Company named therein and (y) all additional Capital Stock of any Media
Company acquired by the Grantor),(B)  the certificates and instruments, if any, representing
or evidencing the same and (D) all dividends, distributions, return of capital, interest,
distributions, value, cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all of such
Capital Stock and all subscription warrants, rights and options issued thereon or with
respect thereto (collectively, the “Pledged Equity”);

     (ii) the indebtedness owed to the Grantor (including (A) the indebtedness set forth on
Schedule II hereto and issued by the obligors named therein and (B) all additional
indebtedness from time to time owed to the Grantor), and the instruments, if any, evidencing
such indebtedness, and all interest, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for any or all of
such indebtedness (collectively, the “Pledged Debt”);

     (c) all accounts, chattel paper (including, without limitation, tangible chattel paper and
electronic chattel paper), instruments (including, without limitation, promissory notes), deposit
accounts, letter-of-credit rights and general intangibles (as such term is defined in the UCC and
including, without limitation, payment intangibles), and other obligations of any kind, whether or
not arising out of or in connection with the sale, lease, license or assignment of goods

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or the rendering of services and whether or not earned by performance, and all rights now or
hereafter existing in and to all supporting obligations and in and to all security agreement,
mortgages, Liens, leases, letters of credit and other contracts securing or otherwise relating to
the foregoing property (collectively, the “Receivables”);

     (d) the following (collectively, the “Intellectual Property Collateral”):

     (i) all United States, international and foreign patent, patent application, utility
models, and statutory invention registrations, including, without limitation, the patents
and patent applications set forth in Schedule III hereto (as such
Schedule III may be supplemented from time to time by supplements to this Agreement
(each, an “IP Security Agreement Supplement”), executed and delivered by the Grantor
to the Agent from time to time), together with all reissues, divisions, continuations,
continuations-in-part, extensions and reexaminations thereof, all inventions therein, all
rights therein provided by international treaties or conventions and all improvements
thereto, and all other rights of any kind whatsoever of the Grantor accruing thereunder or
pertaining thereto (collectively, the “Patents”);

     (ii) all trademarks (including, without limitation, service marks), certification
marks, collective marks, trade dress, logos, internet domain names, product configurations,
trade names, business names, corporate names and other source identifiers, whether or not
registered, whether currently in use or not, including, without limitation, all common law
rights and registrations and application for registration thereof, including, without
limitation, the trademark registrations and trademark applications set forth in Schedule
IV hereto (as such Schedule IV may be supplemented form time to time by IP
Security Agreement Supplements executed and delivered by the Grantor to the Agent from time
to time), and all other marks registered in the U.S. Patent and Trademark Office or in any
office or agency of any state or territory of the United States or any foreign country (but
excluding any United States intent-to-use trademark application prior to the filing and
acceptance of a Statement of Use or an Amendment to allege use in connection therewith to
the extent that a valid security interest may not be taken in such an intent-to-use-
trademark application under applicable law), and all rights therein provided by
international treaties or conventions, all renewals of any of the foregoing, together in
each case with the goodwill of the business connected therewith and symbolized thereby, and
all rights corresponding thereto throughout the world and all other rights of any kind
whatsoever of the Grantor accruing thereunder or pertaining thereto (collectively, the
“Trademarks”);

     (iii) all copyrights, copyright applications, copyright registrations and like
protections in each work of authorship, whether statutory or common law, whether published
or unpublished, any renewals or extensions thereof, all copyrights of works based on,
incorporated in, derived from, or relating to works covered by such copyrights, including,
without limitation, the copyright registrations and copyright applications set forth in
Schedule V hereto (as such Schedule V may be supplemented from time to time
by IP Security Agreement Supplements executed and delivered by the Grantor to the Agent from
time to time), together with all rights corresponding thereto throughout the

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world and all other rights of any kind whatsoever of the Grantor accruing thereunder or
pertaining thereto (collectively, the “Copyrights”);

     (iv) all proprietary information, including, without limitation, know-how, trade
secrets, manufacturing and production processes and techniques, inventions, research and
development information, technical data, plans, blueprints, designs, models, recorded
knowledge, surveys, architectural, structural, mechanical and engineering plans and
specifications, studies, reports and drawing, test reports, manuals, financial, marketing
and business data, pricing and cost information, business and marketing plans and customer
and supplier lists and information (collectively, the “Trade Secrets”);

     (v) all software, including, without limitation, computer software programs and
databases (including, without limitation, source code, object code and all related
applications and data files), firmware, and documentations and materials relating thereto,
and all rights with respect to the foregoing, together with any and all options, warranties,
service contracts, program services, test rights, maintenance rights, improvement rights,
renewal rights and indemnifications and any substitutions, replacements, additions or model
conversions of any of the foregoing (collectively, the “Computer Software”);

     (vi) all names, including, without limitation, combinations of words and abbreviations,
that represent a uniquely identifiable internet protocol address of a World Wide Web
internet location and all registrations thereof, including, without limitation, those names
set forth on Schedule VI hereto (as such Schedule VI may be supplemented
from time to time by IP Security Agreement Supplements executed and delivered by the Grantor
to the Agent from time to time), together with all rights corresponding thereto throughout
the world and all other rights of any kind whatsoever of the Grantor accruing thereunder or
pertaining thereto (collectively, the “Domain Names”);

     (vii) all license agreements, permits, authorizations and franchises, whether with
respect to the Patents, Trademarks, Copyrights, Trade Secrets, Computer Software or Domain
Names, or with respect to the patents, trademarks, copyrights, trade secrets, computer
software or other proprietary right of any other Person, and all income, royalties and other
payments now or hereafter due and/or payable to the Grantor with respect thereto, subject,
in each case, to the terms of such license agreements, permits, authorizations and
franchises, including, without limitation, those licenses set forth on Schedule IX
(collectively, the “Licenses”); provided, however, that to the
extent that the consent of any other party to any of the Licenses is required, under the
terms thereof, for the collateral assignment thereof, then this Agreement shall not affect
any collateral assignment of (or otherwise be applied so as to cause a default under) such
Licenses;

     (viii) any and all claims for damages for past, present and future infringement,
misappropriation or breach with respect to the Patents, Trademarks, Copyrights, Trade
Secrets, Computer Software, Domain Names or Licenses, with the right, but not the
obligation, to sue for and collect, or otherwise recover, such damages; and

     (ix) any and all other Intellectual Property.

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     (e) all commercial tort claims described in Schedule VII hereto (collectively, the
“Commercial Tort Claims”);

     (f) all books and records (including, without limitation, customer lists, credit files,
computer programs, software, printouts and other computer materials and records) of the Grantor
pertaining to any of the Collateral; and

     (g) all proceeds (as such term is defined in the UCC), products, offspring, rents, profits,
royalties, revenues, issues, income, benefits, accessions, additions, substitutions and
replacements of and to any of the property of the Grantor described in the preceding clause (a)
through (e) of this Section (including, without limitation, all causes of action, claims,
warranties and guaranties now or hereafter held by the Grantor in respect of any of the items
listed above).

     Notwithstanding anything to the contrary contained herein, in no event shall the Collateral
include or the security interest granted under Section 2 hereof attach to (a) any lease, license,
contract, property right or agreement to which the Grantor is a party or any of its rights or
interests thereunder if and for so long as the grant of such security interest shall constitute or
result in (i) the abandonment, invalidation or unenforceability of any right, title or interest of
the Grantor therein or (ii) in a breach or termination pursuant to the terms of, or a default
under, any such lease, license, contract property right or agreement (other than to the extent that
any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of
the UCC (or any successor provision or provisions) or any relevant jurisdiction or any other
applicable law (including the Bankruptcy Code) or principles of equity), provided,
however, that the Collateral shall include and such security interest shall attach
immediately at such time as the condition causing such abandonment, invalidation or
unenforceability shall be remedied and to the extent severable, shall attach immediately to any
portion of such lease, license, contract, property right or agreement that does not result in any
of the consequences specified in clauses (i) or (ii) above and the foregoing exclusion shall in no
way be construed so as to limit, impair or otherwise affect the Agent’s continuing security
interest in and Liens upon any rights or interests of the Grantor in or to monies due or to become
due under any such lease, license, contract, property right or agreement; or (b) any outstanding
Capital Stock of a Subsidiary organized under the laws of the PRC; provided that
immediately upon (i) an amendment of the laws of the PRC which allows the pledge of Capital Stock
of a Person organized under the laws of the PRC without the consent of any Governmental Body of the
PRC or (ii) obtaining such consent from a Governmental Body of the PRC, the Collateral shall
include, and the security interest granted by the Grantor shall attach to, such Capital Stock of a
Subsidiary organized under the laws of the PRC.

     Section 3. Obligations Secured. The Collateral hereunder constitutes and will
constitute continuing security for all of the indebtedness, obligations and liabilities of the
Credit Parties to the Agent and/or the Lenders and their permitted successors and assigns under the
Credit Agreement and the other Credit Documents, in each case as such instrument is originally
executed on the date hereof or as modified, amended, restated, supplemented, increased or extended
hereafter, whether such obligations are now existing or hereafter arising, direct or indirect,
absolute or contingent, due or to become due whether at stated maturity, by required prepayment,
declaration, acceleration, demand or otherwise (including the payment of amounts that would become
due but for the operation of the automatic stay under Section 362(a) of the

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Bankruptcy Code), matured or unmatured, liquidated or unliquidated, arising by contract,
operation of law or otherwise, whether for principal, interest (including interest which, but for
the filing of a petition in bankruptcy with respect to each Credit Party, would have accrued on any
obligation, whether or not a claim is allowed against such Credit Party for such interest in the
related bankruptcy proceeding), fees, expenses, indemnification or otherwise and all obligations of
each Credit Party to the Agent and/or the Lenders arising out of any extension, increase,
refinancing or refunding of any of the foregoing obligations (collectively, the
“Obligations”).

     Section 4. Grantor Remain Liable. Anything herein to the contrary notwithstanding,
(a) the Grantor shall remain liable under the contracts and agreements included in the Collateral
to the extent set forth therein to perform all of its duties and obligations thereunder to the same
extent as if this Agreement had not been executed, (b) the exercise by the Agent of any of the
rights hereunder shall not release the Grantor from any of its duties or obligations under the
contracts and agreements included in the Collateral and (c) neither the Agent nor any Lender shall
have any obligation or liability under the contracts and agreements included in the Collateral by
reason of this Agreement or any other Credit Document and (d) neither the Agent nor any Lender be
obligated to perform any of the obligations or duties of the Grantor thereunder or to take any
action to collect or enforce any claim for payment assigned hereunder.

     Section 5. Pro Rata Security; Application of Proceeds of Collateral. All amounts
owing with respect to the Obligations shall be secured pro rata by the Collateral without
distinction as to whether some Obligations are then due and payable and other Obligations are not
then due and payable. Upon any realization upon the Collateral by the Agent and/or the Lenders,
whether by receipt of insurance proceeds pursuant to Section 6(d) hereof or upon foreclosure and
sale of all or part of the Collateral pursuant to Section 11 hereof or otherwise, the Grantor, the
Agent and the Lenders agree that the proceeds thereof shall be applied (i) first, to the
payment of expenses incurred with respect to maintenance and protection of the Collateral and of
expenses incurred pursuant to Section 15 hereof with respect to the sale of or realization upon any
of the Collateral or the perfection, enforcement or protection of the rights of the Agent and/or
the Lenders (including reasonable attorneys’ fees and expenses of every kind), (ii) second,
to all amounts of interest, expenses and fees outstanding which constitute the Obligations;
(iii) third, to all amounts of principal outstanding under the Obligations; and
(iv) fourth, any proceeds remaining after the repayment of all of the Obligations to be
paid over to the Grantor or such other Person or Persons as may be entitled thereto. The Grantor
shall remain liable for any deficiency remaining unpaid after the application of proceeds in
accordance with the foregoing provisions. The Grantor agrees that all amounts received with
respect to any of the Obligations, whether by realization on the Collateral or otherwise, shall be
applied to the payment of the Obligations in accordance with the provisions of this Section 5.

     Section 6. Representations and Covenants of the Grantor.

     (a) Location of Chief Executive Offices; Domicile; Organizational Identification
Number. The Grantor represents that set forth on Schedule VIII are (i) the location of
its chief executive office and the location where its books and records are kept, (ii) the
jurisdiction of its organization or formation, (iii) its organizational identification number (if
any), (iv) a true and correct list of all localities where the property of the Grantor comprising
the Collateral is located.

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The Grantor agrees that it will not change its name, organizational identification number (if
any), the jurisdiction of its organization or the location of its chief executive office or the
location where its books and records are kept without providing at least thirty (30) days’ prior
written notice to the Agent.

     (b) Ownership of Collateral.

     (i) The Grantor represents that it is the owner of the Collateral free from any adverse
Lien, security interest or encumbrance, except as expressly permitted by the Credit
Agreement. No effective financing statement or other instrument similar in effect covering
all or any part of such Collateral or listing the Grantor or any trade name of the Grantor
as debtor is on file in any recording office (including, without limitation, the United
States Patent and Trademark Office and the United States Copyright Office), except such as
may have been filed in favor of the Agent relating to the Credit Documents or as otherwise
permitted under the Credit Agreement.

     (ii) Except for the security interests herein granted and except as expressly permitted
by Section 6.1(b) of the Credit Agreement, the Grantor shall be the owner of the Collateral
free of any Liens, charges or other encumbrances, and the Grantor shall defend the same
against all claims and demands of all Persons at any time claiming the same or any interest
therein adverse to the Agent and/or the Lenders. Except as otherwise expressly permitted by
the Credit Agreement, the Grantor shall not pledge, mortgage or create or suffer to exist a
security interest in, Lien on or charge against the Collateral (other than the Permitted
Liens) of the Grantor in favor of any Person other than the Agent and the Lenders.

     (c) Transfers and Other Liens. The Grantor agrees that it will not (i) sell or offer
to sell, assign or otherwise transfer, or grant any option with respect to, the Collateral, any
portion thereof, or any interest therein except as expressly permitted by the Credit Agreement or
(ii) create or suffer to exist any Lien or charge upon or with respect to any of the Collateral of
the Grantor except for the pledge, assignment and security interest created under this Agreement
and the Permitted Liens.

     (d) Insurance. The Grantor shall have and maintain at all times with respect to the
Collateral such insurance as is required by the Credit Agreement.

     (e) Maintenance of Collateral. The Grantor shall keep the Collateral in good order
and repair, ordinary and reasonable wear and tear excepted, and will not use the same in violation
of law or any policy of insurance thereon. The Agent and any Lender may inspect the Collateral at
any reasonable time, wherever located. Except as otherwise provided in the Credit Agreement, the
Grantor shall pay promptly when due all taxes and assessments upon the Collateral or for its use or
operation or upon this Agreement. In its discretion, the Agent may discharge taxes and other
encumbrances at any time levied or placed on the Collateral, which remain unpaid in violation of
the Credit Agreement, make repairs thereof and pay any necessary filing fees incurred in connection
with the perfection, protection or enforcement of Agent’s rights hereunder. The Grantor agrees to
reimburse the Agent on demand for any and all expenditures so made, and until paid, the amount
thereof shall be a debt secured by the Collateral. The Agent

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shall have no obligation to the Grantor to make any such expenditures, nor shall the making
thereof relieve the Grantor of any default.

     (f) Creation and Perfection of Lien. The Grantor represents and warrants to the Agent
and the Lenders and covenants with the Agent and the Lenders that this Agreement creates a valid
Lien and charge upon and security interest in the Collateral as security for the payment and
performance of the Obligations, subject to no other encumbrances, charges, security interests or
Liens other than Permitted Liens. Upon (i) the filing of UCC-l financing statements in the form
attached hereto as Exhibit A (the “Financing Statement”) (A) in the jurisdiction of
organization of the Grantor under the UCC or (B) if the Grantor is a Person organized outside of
the United States of America, in Washington D.C., against the Grantor as the same may be in effect
from time to time in the jurisdiction of organization of the Grantor, (ii) the taking of possession
by the Agent of any certificates constituting the Security Collateral, to the extent such Security
Collateral are represented by certificates, together with undated powers endorsed in blank by the
Grantor, in each case naming the Grantor as debtor and the Agent, for itself and for the benefit of
the Lenders, as secured party, (iii) with respect to the Accounts, delivery of account control
agreements in favor of the Agent and notice and agreement of the depository bank to be bound by the
terms thereof, (iv) the filing of the Intellectual Property Security Agreement in the form attached
hereto as Exhibit B with the United States Patent and Trademark Office and the United
States Copyright Office, as applicable, and (v) all other filings required under the laws of the
jurisdiction of organization of the Grantor, including the entering of the Lien of the Agent in the
register of members or the share register of the entity whose equity is being pledged in accordance
with the constitutive documents of such entity and the laws of the jurisdiction of organization of
such entity and the registration of the charge against each Grantor’s assets in the appropriate
office of the jurisdiction of organization of the Grantor, all filings, assignments, pledges and
deposits of documents or instruments will have been made and all other actions will have been taken
that are necessary or advisable, under applicable law, to establish and perfect the Agent’s
security interest, Lien and charge for itself and for the benefit of the Lenders in such of the
Collateral as to which a security interest may be perfected by filing or possession under the UCC
and under the laws of the jurisdiction of organization of the Grantor, and such security interest,
Lien and charge shall remain senior and prior to all other Liens, except for Permitted Liens. No
further filings, recordings or other actions are or will be necessary to maintain the priority of
such security interest with respect to such Collateral other than the filing of UCC continuation
statements within six months prior to the expiration of a period of five years after the original
filing and any amendments that may be required from time to time to maintain the validity and/or
sufficiency of such filing under the UCC and under the laws of the jurisdiction of organization of
the Grantor. The Collateral and the Agent’s and Lenders’ rights with respect to the Collateral are
not subject to any setoff, claims, withholdings or other defenses.

     (g) No Further Actions. Except for the filings and agreements referred to in
paragraph (f) above, no consent, authorization, approval or other action by, and no notice of
filing with, any governmental authority or regulatory body or other Person that has not been
received, taken or made is required (i) for the grant by the Grantor of the security interest
granted hereby or for the execution, delivery or performance of this Agreement by the Grantor,
(ii) for the perfection and maintenance of the security interest referred to in paragraph (f) above
(including the first priority nature of such security interest) to the extent such security
interest

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may be perfected by such filings or possession referred to in paragraph (f) above, or
(iii) for the exercise by the Agent and/or the Lenders of the rights or the remedies in respect of
the Collateral pursuant to this Agreement.

     (h) Accounts Receivable. The Grantor shall keep or cause to be kept separate records
of accounts which are complete and accurate in all material respects, and from time to time upon
the request of the Agent, at reasonable intervals and upon reasonable notice, shall deliver to the
Agent and the Lenders a list of the names, addresses, face value, and dates of invoices for each
debtor obligated on an account receivable (which records may be provided in an electronic format
reasonably acceptable to the Agent); provided, however, that except after the
occurrence of an Event of Default and during the continuation thereof, neither the Agent nor any
Lender shall contact the Grantor’s account debtors without five (5) Business Days’ written notice
to the Grantor.

     (i) Government Contracts. The Grantor agrees that, at the request of the Agent, it
shall execute all such documents, and take all such actions, as such Person shall reasonably
determine to be necessary or appropriate from time to time under the Federal Assignment of Claims
Act of 1940, as amended, and any other applicable non-U.S. Regulation in order to confirm and
assure to the Agent its rights under this Agreement with respect to any and all Collateral
consisting of the Grantor’s rights to monies due or to become due under any contracts or agreements
with or orders from the United States or any foreign Governmental Body, the assignment of which is
not prohibited by such contract or agreement.

     (j) Delivery of Certificated Security Collateral. The Grantor represents that, as of
the Closing Date, all certificates evidencing any Security Collateral to be delivered hereunder
have been delivered to the Agent. The Grantor agrees that it shall forthwith deliver and pledge
to, and grant a charge against in favor of the Agent, for itself and for the benefit of the
Lenders, all certificates representing securities which it shall acquire on or after the date
hereof, whether by purchase, stock dividend, distribution of capital or otherwise, along with stock
powers or other appropriate instruments of assignment with respect thereto, duly executed in blank.

     (k) Cooperation. The Grantor agrees, after the occurrence and during the continuance
of an Event of Default, to take any actions that the Agent and/or the Required Lenders may
reasonably request in order to enable the Agent and the Lenders to obtain and enjoy the full rights
and benefits granted to them by the Credit Agreement and the other Credit Documents. The Grantor
further consents, after the occurrence and during the continuance of an Event of Default, to the
transfer of control or assignment of all or any portion of the Collateral to a receiver, trustee,
transferee, or similar official or to any purchaser of the Collateral pursuant to any public or
private sale, judicial sale, foreclosure or exercise of other remedies available to the Agent
and/or the Lenders as permitted by the Credit Documents, applicable law or otherwise, subject to
the receipt of any required Governmental Approvals.

     (l) Access to Books and Records and the Collateral. The Grantor shall permit the
Agent’s representatives to have access to its books and records and the Collateral from time to
time (which shall be (i) during regular business hours provided that there is not then a Default or
Event of Default that has occurred and is continuing and (ii) at any time if a Default or Event of
Default has occurred and is continuing), as requested by such Person, for purposes of

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examination, verification, inspection, and appraisal thereof and/or any other purpose
permitted by the Credit Documents. Except after the occurrence of a Default or an Event of
Default, the Agent shall give the Grantor at least one Business Day’s telephonic notice before
exercising the rights granted in the preceding sentence.

     (m) Intellectual Property. As to the Grantor’s Intellectual Property Collateral:

     (i) Grantor’s Rights. The rights of the Grantor in or to any material
Intellectual Property Collateral do not conflict with, misappropriate or infringe the
intellectual property rights or any third party, and no claim has been asserted that the use
of such Intellectual Property Collateral does or may infringe the intellectual property
rights of any third party.

     (ii) Ownership. Without limiting the generality of Section 6(b), the Grantor
is the exclusive owner of the entire and unencumbered right, title and interest in and to
any material Intellectual Property Collateral and is entitled to use all such Intellectual
Property Collateral without limitation, subject only to the license terms of the Licenses.

     (iii) Identification of Intellectual Property Collateral. Set forth on
Schedule III hereto is a complete and accurate list of all Intellectual Property
Collateral consisting of the patents and patent applications owned by the Grantor. Set
forth on Schedule IV hereto is a complete and accurate list of all Intellectual
Property Collateral consisting of the trademark and service mark registrations, all
trademark and service mark applications and all other material trademarks service marks,
trade names and other indicia of origin owned by the Grantor. Set forth on Schedule
V hereto is a complete and accurate list of all copyright registration, copyright
applications and all material common law copyrights and works of authorship owned by the
Grantor. Set forth on Schedule VI hereto is a complete and accurate list of all
Intellectual Property Collateral consisting of the internet domain names and all internet
domain name registrations owned by the Grantor. The Grantor has made all necessary filings
and recordations to protect and maintain its interest in the patents, patent applications,
trademark and service mark recordations, material trademarks, service marks, trade names and
other indicia of origin, copyright registrations and copyrights applications, material
common law copyrights and works of authorship, internet domain names, interest domain name
registrations and Licenses set forth on Schedules III, IV, V and VI hereto
(collectively, the “Scheduled IP Assets”).

     (iv) Validity of Intellectual Property Collateral. Each of the Scheduled IP
Assets (except for Licenses, which are addressed below) is subsisting and has not been
adjudged invalid, unregisterable or unenforceable, in whole or in part, and is valid and
enforceable. Each License of the Grantor is, to the best of the Grantor’s Knowledge,
subsisting and has not been adjudged invalid or unenforceable, in whole or in part, and is,
to the best of the Grantor’s Knowledge, valid and enforceable. The Grantor is not aware of
any uses of any item of Intellectual Property Collateral which would be expected to lead to
such item becoming invalid or unenforceable, including unauthorized uses by third parties
and uses which were not supported by the goodwill of the business connected with such
Intellectual Property Collateral.

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     (v) Proper Notice. The Grantor has used the applicable U.S. and non-U.S.
proper statutory notice in connection with its use of the patents, registered trademarks and
service marks, and copyrights and internet domain names set forth on Schedules III, IV,
V and VI.

     (vi) No Outstanding Claims. No claim has been made, continuing or, to the
Grantor’s Knowledge, threatened to or by the Grantor, that any items of Intellectual
Property Collateral is invalid or unenforceable or that the use by the Grantor of any
Intellectual Property Collateral does or may violate the rights of any Person. There is
currently no infringement or unauthorized use of any item of Intellectual Property
Collateral. There is currently no use of Intellectual Property Collateral that violates the
rights of any Person.

     (vii) Quality Control. The Grantor has taken all reasonable steps to use
consistent standards of quality in the manufacture, distribution and sale of all products
sold and the provision of all services provided under or in connection with any of the
Intellectual Property Collateral, and has taken all commercially reasonable steps to ensure
that all licensed users of any of the Intellectual Property Collateral, use such consistent
standards of quality.

     Section 7. Covenants and Further Assurances Regarding Intellectual Property
Collateral.

     (a) The Grantor agrees that it shall not (i) sell, assign (by operation of applicable U.S. and
non-U.S. law or otherwise), transfer or otherwise dispose of, or grant any option with respect to,
any of the Intellectual Property Collateral, or any portion thereof, or any interest therein,
except as expressly permitted by the Credit Agreement, or (ii) create or suffer to exist any Lien
upon or with respect to any of the Intellectual Property Collateral, except for the pledge,
assignment and security interest created by this Agreement and except for Permitted Liens.

     (b) Without limiting the generality of Section 7(a) above, the Grantor will, upon the
reasonable request of the Agent, with respect to the Intellectual Property Collateral, execute and
file such financing or continuation statements, or amendments thereto, and such other instruments
or notices, as may be reasonably necessary, or as the Agent may reasonably request, in order to
perfect and preserve under both applicable U.S. and non-U.S. Regulations the pledge, assignment,
Lien, priority and security interest granted or purported to be granted hereby, including, without
limitation, one or more Intellectual Property Security Agreements in substantially the form
attached hereto as Exhibit B, and any updates or amendments of any such agreements.

     (c) The Grantor will furnish to the Agent from time to time statements and schedules further
identifying and describing the Intellectual Property Collateral and such other reports in
connection with the Intellectual Property Collateral as the Agent may reasonably request, all in
reasonable detail.

     (d) The Grantor acknowledges and agrees that, if it obtains an ownership interest in any
patent, patent application, patentable invention, trademark, service mark, trade name, trade dress,
other indicia of trade origin, trademark or service mark registration, trademark or service

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mark application, copyright, copyright registration, copyright application, work of
authorship, internet domain name, internet domain name registration or any interest in a License or
other intellectual property, which is not now a part of the Intellectual Property Collateral (the
“New IP Collateral”), (i) the provisions of Section 2 will automatically apply thereto, and
(ii) any such New IP Collateral (together with the goodwill of the business connected with the use
of any trademark, service mark, trade name, trade dress, other indicia of trade origin and
symbolized by same that is included in the New IP Collateral) will automatically become part of the
Intellectual Property Collateral; provided, however, that to the extent the consent
of any other party to any such License is required, under the terms thereof, for the collateral
assignment thereof, then this Agreement shall not affect any collateral assignment of (or otherwise
be applied so as to cause a default under) such License for so long as (but only for so long as)
such consent would be required and has not been obtained, but the foregoing shall in no way be
construed so as to limit, impair or otherwise affect the Agent’s security interest and Lien upon
any rights or interests of the Grantor in or to monies due or to become due under such License.
The Grantor authorizes the Agent to modify this Agreement by amending Schedules III, IV, V and
VI hereto (and shall cooperate with the Agent in effecting any such amendment) to include any
patent, patent application, trademark or service mark registration, trademark or service mark
application, material trademark, service mark, trade name and other indicia of origin, copyright
registration and copyright application, material common law copyright and work of authorship,
internet domain name, internet domain name registration, License or other New IP Collateral which
becomes part of the Intellectual Property Collateral.

     (e) With respect to each material patent, patent application, trademark or service mark
registration, trademark or service mark application, copyright registration or copyright
application, internet domain name or internet domain name registration set forth in Schedule
III, IV, V or VI hereto (as amended from time to time), the Grantor agrees to take all
reasonably necessary steps, including, without limitation, in the United States Patent and
Trademark Office and the United States Copyright Office, in any court and in any applicable foreign
jurisdiction, to (i) maintain each such patent, trademark or service mark registration, copyright
registration, internet domain name registration and (ii) pursue each such patent application,
trademark or service mark application and copyright application now or hereafter included in the
Intellectual Property Collateral, including, without limitation, the filing of responses to office
actions issued by the United States Patent and Trademark Office, the filing of affidavits under
Sections 8 and 15 of the United States Trademark Act, the filing of divisional, continuation,
continuation-in-part and substitute applications, the filing of applications for re-issue, renewal
or extensions, the payment of maintenance fees, and the participation in interference,
reexamination, opposition, cancellation, infringement and misappropriation proceedings. The
Grantor agrees to take corresponding steps under applicable U.S. and non-U.S. Regulations with
respect to each new or acquired material patent, patent application, trademark or service mark
registration, trademark or service mark application, material trademark, service mark, trade name
and other indicia of origin, copyright registration and copyright application, material common law
copyright, work of authorship, internet domain name and internet domain name registration, to which
it is now or later becomes entitled. Any and all expenses incurred in connection with such
activities will be borne by the Grantor. The Grantor shall not discontinue use of or otherwise
abandon any patent, patent application, trademark or service mark registration, material trademark,
service mark, trade name and other indicia of origin, copyright registration and copyright
application, material common law copyright, work of authorship, internet domain name and interest
domain name

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registration now or hereafter included in the Intellectual Property Collateral, unless the
Grantor shall have first (x) determined in its sound and reasonable business judgment that such use
or pursuit or maintenance of same is no longer desirable in the conduct of the Grantor’s business
and that such Intellectual Property Collateral is not material to the Grantor’s business,
(y) provided the Agent written notice of its intent to abandon or discontinue, and (z) obtained the
express prior written consent of the Required Lenders.

     (f) The Grantor agrees to notify the Agent promptly and in writing if it learns (i) that any
item of material Intellectual Property Collateral has been determined to have become abandoned or
dedicated to the public, (ii) of the institution of any proceeding by or against the Grantor
(including, without limitation, the institution of any proceeding in the United States Patent and
Trademark Office, the Copyright Office, any court or any foreign jurisdiction) regarding any
infringement or unauthorized use of (or similar claim with respect to) an item of material
Intellectual Property Collateral, or (iii) of any adverse determination in any such proceeding.

     (g) In the event that any item of material Intellectual Property Collateral is infringed or
misappropriated by a third party, the Grantor shall promptly notify the Agent and will take such
actions as the Grantor or, following the occurrence and during the continuance of a Default of an
Event of Default, the Agent deems reasonable and appropriate under the circumstances to protect
such Intellectual Property Collateral, including, without limitation, suing for infringement or
misappropriation and for an injunction against such infringement or misappropriation. Any expense
incurred in connection with such activities will be borne by the Grantor.

     (h) The Grantor shall use the applicable U.S. and non-U.S. proper statutory notice in
connection with its use of each of its patents, registered trademarks and service marks, copyrights
and internet domain names contained in Schedule III, IV, V or VI.

     Section 8. Securities as Collateral.

     (a) Upon the occurrence and during the continuance of an Event of Default, the Agent may at
any time, at its option, transfer to itself or any nominee any securities constituting Collateral,
receive any income thereon and hold such income as additional Collateral or apply it to the
Obligations. If the Agent so elects to exercise its right herein and gives notice of such election
to the Grantor, upon the occurrence and during the continuance of an Event of Default to the extent
permitted under applicable U.S. and non-U.S. law, the Agent may vote any or all of the securities
constituting Collateral possessing voting rights (whether or not the same shall have been
transferred into its name or the name of its nominee or nominees) and give all consents, waivers
and ratifications in respect of the securities constituting Collateral and otherwise act with
respect thereto as though it were the outright owner thereof, the Grantor hereby constituting and
appointing the Agent the proxy and attorney-in-fact of the Grantor, with full power of
substitution, to do so. This power of attorney is coupled with an interest and may not be revoked
by the Grantor while any Obligations are owing to the Agent and/or Lenders. So long as no Event of
Default is continuing, the Grantor shall be entitled to receive all cash dividends paid in respect
of the securities of which the Grantor is the registered owner, to vote such securities and to give
consents, waivers and ratifications in respect of such securities, provided that no vote

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shall be cast, or consent, waiver or ratification given or action taken which would be
inconsistent with or violate any provisions of any of the Credit Documents or this Agreement.

     (b) Any sums paid upon or with respect to any of the securities constituting Collateral upon
the liquidation or dissolution of the issuer thereof shall be paid over to the Agent to be held by
it as security for the Obligations; and in case any distribution of capital shall be made on or in
respect of any of the securities or any property shall be distributed upon or with respect to any
of the securities pursuant to the recapitalization or reclassification of the capital of the issuer
thereof or pursuant to the reorganization thereof, the property so distributed shall be delivered
to the Agent to be held by it as security for the Obligations. All sums of money and property paid
or distributed in respect of the securities upon such a liquidation, dissolution, recapitalization
or reclassification which are received by the Grantor shall, until paid or delivered to the Agent,
be held in trust for the Agent as security for the Obligations.

     Section 9. Power of Attorney.

     (a) The Grantor acknowledges the Agent’s right, to the extent permitted by applicable law,
singly to execute and/or file financing or continuation statements and similar notices required by
applicable U.S. and non-U.S. law, and amendments thereto, concerning the Collateral without
execution by the Grantor. A copy of this Agreement or any financing statement covering the
Collateral or any part thereof shall be sufficient as a financing statement where permitted by law.

     (b) The Grantor hereby irrevocably appoints the Agent as the Grantor’s attorney-in-fact,
effective at all times subsequent to the occurrence of an Event of Default, and during the
continuance thereof, with full authority in the place and stead of the Grantor and in the name of
the Grantor or otherwise, to take any action and to execute any instrument which the Agent may deem
necessary or advisable to accomplish the purpose of this Agreement, including, without limitation,
the power and right (i) to endorse the Grantor’s name on any checks, notes, acceptances, money
orders, drafts, filings or other forms of payment or security of the Grantor that may come into the
Agent’s possession, and (ii) to do all other things which the Agent then determines to be necessary
to carry out the terms of this Agreement; provided, however, the Agent acknowledges
that applicable law does not permit the grantee of a power of attorney to execute any application,
report, document or other instrument to be filed with the Federal Communications Commission on
behalf of and in place of the party granting such power of attorney, except in the case of the
grantor’s absence from the United States, or in the case of grantor’s physical disability. The
Grantor ratifies and approves all acts of such attorney-in-fact. The power conferred on the Agent
hereunder is solely to protect the Agent’s and the Lenders’ interests in the Collateral and shall
not impose any duty upon the Agent to exercise such power. This power of attorney is coupled with
an interest and may not be revoked by the Grantor while any Obligations are owing to the Agent or
the Lenders.

     Section 10. Special Provisions Relating to Certain Collateral.

     (a) Intellectual Property. For the purpose of enabling the Agent to exercise rights
and remedies under Section 11 of this Agreement at such time as the Agent shall be lawfully
entitled to exercise such rights and remedies, and for no other purpose, the Grantor hereby grants
to the

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Agent, to the extent assignable, an irrevocable, non-exclusive license (exercisable without
payment of royalty or other compensation to the Grantor) to use, assign, license or sublicense any
of the Intellectual Property now owned or hereafter acquired by the Grantor, wherever the same may
be located, including in such license reasonable access to all media in which any of the licensed
items may be recorded or stored and to all computer programs used for the compilation or printout
thereof.

     (b) Accounts Receivable. Until the Agent elects (which election may be made after the
occurrence of an Event of Default and during the continuation thereof) that debtors on accounts
receivable of the Grantor or obligors on accounts, chattel paper or general intangibles of the
Grantor or obligors on instruments for which the Grantor is an obligee or lessees or conditional
vendees under agreements governing the leasing or selling by conditional sale of Collateral by the
Grantor, be notified of the Agent’s and Lenders’ security interest, the Grantor shall continue to
collect payment thereof. Upon the making of such an election by the Agent, the Grantor shall hold
the proceeds received from collection as trustee for the Agent and shall turn the same over to the
Agent, or to such other bank or Person as may be approved by the Agent, immediately upon receipt in
the identical form received. At the election of the Agent, after the occurrence of an Event of
Default and during the continuance thereof, the Grantor shall so notify such account debtors and
obligors that payment thereof is to be made directly to the Agent, and the Agent may itself, at any
time after the occurrence of an Event of Default and during the continuance thereof, without notice
to or demand upon the Grantor, so notify such account debtors and obligors. The making of such an
election or the giving of any such notification shall not affect the duties of the Grantor
described above with respect to proceeds of collection of accounts receivable received by the
Grantor. The Agent shall apply the proceeds of such collection received by the Agent to the
Obligations in accordance with Section 5 of this Agreement. The application of the proceeds of
such collection shall be conditional upon final payment in cash or solvent credits of the items
giving rise to them. If any item is not so paid, the Agent in its discretion, whether or not the
item is returned, may either reverse any credit given for the item or charge it to any deposit
account maintained by the Grantor with the Agent.

     Section 11. Events of Default; Remedies.

     (a) Upon the occurrence of an Event of Default and during the continuation thereof, whether or
not the Obligations are due, the Agent may (on behalf of itself and the Lenders) demand, sue for,
collect, or make any settlement or compromise it deems desirable with respect to the Collateral.

     (b) An “Event of Default” hereunder shall mean an Event of Default as such term is defined in
the Credit Agreement.

     (c) Upon the occurrence and during the continuance of an Event of Default, to the fullest
extent permitted by applicable law, in addition to the remedies set forth elsewhere in this
Agreement:

     (i) The Agent shall have (on behalf of itself and the Lenders), in addition to all
other rights and remedies given it by any instrument or other agreement evidencing, or
executed and delivered in connection with, any of the Obligations and otherwise allowed

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by law, the rights and remedies of a secured party under the Uniform Commercial Code as
enacted in any jurisdiction in which the Collateral and applicable non-U.S. law may be
located and without limiting the generality of the foregoing, the Agent may immediately,
without (to the fullest extent permitted by law) demand of performance or advertisement or
notice of intention to sell or of time or place of sale or of redemption or other notice or
demand whatsoever (except that the Agent shall give to the Grantor at least ten days’ notice
of the time and place of any proposed sale or other disposition), all of which are hereby
expressly waived to the fullest extent permitted by law, sell at public or private sale or
otherwise realize upon, the whole or from time to time any part of the Collateral in or upon
which the Agent and/or the Lenders shall have a security interest or Lien hereunder, or any
interest which the Grantor may have therein, and after deducting from the proceeds of sale
or other disposition of the Collateral all expenses (including all reasonable expenses for
legal services) as provided in Section 15 hereof, shall apply the residue of such proceeds
toward the payment of the Obligations in accordance with Section 5 of this Agreement, the
Grantor remaining liable for any deficiency remaining unpaid after such application. If
notice of any sale or other disposition is required by law to be given to the Grantor, then
the Grantor, the Agent and the Lenders hereby agree that a notice given as provided in this
Agreement shall be reasonable notice of such sale or other disposition. The Grantor also
agrees to assemble the Collateral at such place or places as the Agent reasonably designates
by written notice. At any such sale or other disposition the Agent and/or any Lender may
itself, and any other person or entity owed any Obligation may itself, to the extent
permitted by applicable law, purchase the whole or any part of the Collateral sold, free
from any right of redemption on the part of the Grantor, which right is hereby waived and
released to the fullest extent permitted by law.

     (ii) Furthermore, without limiting the generality of any of the rights and remedies
conferred upon the Agent and/or any Lender under Section 11 (c)(i) hereof, the Agent to the
fullest extent permitted by applicable U.S. and non-U.S. law, may enter upon the premises of
the Grantor, exclude the Grantor or any guarantor therefrom and take immediate possession of
the Collateral, either personally or by means of a receiver appointed by a court therefor,
and may, at its option, use, operate, manage and control the Collateral in any lawful manner
and may collect and receive all rents, income, revenue, earnings, issues and profits
therefrom, and may maintain, repair, renovate, alter or remove the Collateral as the Agent
and/or such Lender may determine in its discretion, and any such monies so collected or
received by such Person shall be remitted to the Agent and shall be applied to, or may be
accumulated for application upon, the Obligations in accordance with Section 5 of this
Agreement.

     (iii) Each of the Agent and the Lenders agrees that such Person will give notice to the
Grantor of any enforcement action taken by it pursuant to this Section 11 promptly after
commencing such action.

     (iv) The Grantor recognizes that the Agent and/or the Lenders may be unable to effect a
public sale of securities constituting Collateral by reason of certain prohibitions
contained in the Securities Act and may be compelled to resort to one or more private sales
thereof to a restricted group of purchasers consistent with all applicable laws. The
Grantor agrees that any such private sales may be at prices and

16

 

other terms less favorable to the Grantor than if sold at public sales and that such
private sales shall not solely by reason thereof be deemed not to have been made in a
commercially reasonable manner. Neither the Agent nor the Lenders shall be under any
obligation to delay a sale of any of the securities for the period of time necessary to
permit the issuer of such securities to register such securities for public sale under the
Securities Act of 1933, as amended, even if the issuer would agree to do so.

     (d) For the purposes of enabling the Agent to exercise rights and remedies under this Section
11, at such time as the Agent shall be lawfully entitled to exercise such rights and remedies, and
for no other purpose, the Grantor hereby grants to the Agent, to the extent assignable, an
irrevocable, non-exclusive license (exercisable without payment of royalty or other compensation to
the Grantor) to use, assign, license or sublicense any of the Intellectual Property now owned or
hereafter acquired by the Grantor, wherever the same may be located, including in such license
reasonable access to all media in which any of the licensed items may be recorded or stored and to
all computer programs used for the compilation or printout thereof.

     Section 12. Marshalling. Neither the Agent nor any Lender shall be required to
marshal any present or future security for (including but not limited to this Agreement and the
Collateral subject to the security interest created hereby), or guarantees of, the Obligations or
any of them, or to resort to such security or guarantees in any particular order; and all of its
rights hereunder and in respect of such securities and guaranties shall be cumulative and in
addition to all other rights, however existing or arising. To the extent that it lawfully may, the
Grantor hereby agrees that it will not invoke any law relating to the marshalling of Collateral
which might cause delay in or impede the enforcement of the Agent’s and/or any Lender’s rights
under this Agreement or under any other instrument evidencing any of the Obligations or under which
any of the Obligations is outstanding or by which any of the Obligations is secured or guaranteed,
and to the extent that it lawfully may do so the Grantor hereby irrevocably waives the benefits of
all such laws. Except as otherwise provided by applicable law, neither the Agent nor the Lenders
shall have any duty as to the collection or protection of the Collateral or any income thereon, nor
as to the preservation of rights against prior parties, nor as to the preservation of any rights
pertaining thereto beyond the sole custody thereof.

     Section 13. Security Interest Absolute. To the extent permitted by applicable law,
the obligations of the Grantor under this Security Agreement shall remain in full force and effect
without regard to, and shall not be impaired by (a) any bankruptcy, insolvency, reorganization,
arrangement, readjustment, composition, liquidation or the like of the Grantor, to the extent
permitted by law; (b) any exercise or nonexercise, or any waiver, by the Agent and/or any Lender of
any right, remedy, power or privilege under or in respect of any of the Obligations or any security
therefor (including this Agreement); (c) any amendment to or modification of any instrument
evidencing any of the Obligations or pursuant to which any of them were issued; (d) any amendment
to or modification of any instrument or agreement (other than this Agreement) securing any of the
Obligations; or (e) the taking of additional security for or any guaranty of any of the Obligations
or the release or discharge or termination of any security or guaranty for any of the Obligations;
and whether or not the Grantor shall have notice or knowledge of any of the foregoing.

17

 

     Section 14. No Waiver. No failure on the part of the Agent and/or any Lender to
exercise, and no delay in exercising, any right, remedy or power hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise by such Person of any right, remedy or
power hereunder preclude any other or future exercise of any other right, remedy or power. Each
and every right, remedy and power hereby granted to the Agent and/or any Lender or the future
holders of any of the Obligations or allowed to any of them by applicable U.S. and non-U.S. law or
other agreement, including, without limitation, each of the Credit Documents, shall be cumulative
and not exclusive of any other, and, subject to the provisions of this Agreement, may be exercised
by the Agent and/or any Lender or the future holders of any of the Obligations from time to time.

     Section 15. Expenses. The Grantor agrees to pay, on demand, all reasonable costs and
expenses (including reasonable attorneys’ fees and expenses for legal services of every kind) of
the Agent and/or any Lender incidental to the sale of, or realization upon, any of the Collateral
or in any way relating to the perfection, enforcement or protection of the rights of such Person
hereunder; and the Agent and/or such Lenders may at any time apply to the payment of all such costs
and expenses all monies of the Grantor or other proceeds arising from its possession or disposition
of all or any portion of the Collateral.

     Section 16. Consents, Amendments and Waivers. Any term of this Agreement may be
amended, and the performance or observance by the Grantor of any term of this Agreement may be
waived (either generally or in a particular instance and either retroactively or prospectively)
only in accordance with the terms of Section 10.1 of the Credit Agreement all of which are
incorporated herein by reference.

     Section 17. Agent’s Duties. The powers conferred on the Agent hereunder are solely to
protect the Agent’s and Lenders’ interest in the Collateral and shall not impose any duty upon it
to exercise any such powers. Except for the safe custody of any Collateral in its possession and
the accounting for moneys actually received by it hereunder, the Agent shall have no duty as to any
Collateral, as to ascertaining or taking action with respect to calls, conversions, exchanges,
maturities, tenders or other matters relative to any Collateral, whether or not Agent or any Lender
has or is deemed to have knowledge of such matters, or as to the taking of any necessary steps to
preserve rights against any parties or any other rights pertaining to any Collateral. The Agent
shall be deemed to have exercised reasonable care in the custody and preservation of any Collateral
in its possession if such Collateral is accorded treatment substantially equal to that which it
accords its own property. Any resignation of the Agent pursuant to the terms of the Credit
Agreement shall result in the automatic resignation of the Agent under this Agreement.

     Section 18. Indemnity and Expenses. The Grantor hereby indemnifies, defends and saves
and holds harmless each of the Agent and the Lenders and each of their Affiliates and their
respective officers, directors, employees, agents, attorneys and advisors (each, an
“Indemnified Party”) from and against, and shall pay on demand, any and all claims,
damages, losses, liabilities and expenses that may be incurred by or asserted or awarded against
any Indemnified Party, in each case arising out of or in connection with or resulting from this
Agreement and/or any other Credit Document (including, without limitation, enforcement of this
Agreement and/or any other Credit Document), except to the extent such claim, damage, loss,
liability or expense is

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found in a final, non-appealable judgment by a court of competent jurisdiction to have
resulted from such Indemnified Party’s negligence or willful misconduct.

     Section 19. Governing Law. This Agreement and all claims, disputes and matters
arising hereunder or related hereto shall be governed by and construed under the internal laws of
the State of New York.

     Section 20. Parties in Interest. All terms of this Agreement shall be binding upon
and inure to the benefit of and be enforceable by the respective successors and assigns of the
parties hereto; provided that the Grantor may not assign or transfer its rights hereunder
without the prior written consent of the Agent and the Required Lenders. Any assignment or
transfer by each Grantor of its rights hereunder in violation of this Agreement shall be void
ab initio.

     Section 21. Counterparts. This Agreement and any amendment hereof may be executed in
any number of counterparts and by each party on a separate counterpart, which when so executed and
delivered shall be an original, but all of which together shall constitute one instrument.
Delivery of an executed counterpart of a signature page to this Agreement by facsimile or
electronic mail shall be effective as delivery of an original executed counterpart of this
Agreement.

     Section 22. Continuing Security Interest; Assignments Under the Credit Agreement.
This Agreement shall create a continuing security interest in the Collateral and shall (i) remain
in full force and effect until the Payment in Full in accordance with the Credit Agreement and the
cancellation or termination of the Commitments, (ii) be binding upon the Grantor, its successors
and assigns and (iii) inure, together with the rights and remedies of the Agent hereunder, to the
benefit of the Agent and/or the Lenders and their respective successors, transferees and assigns.
Without limiting the generality of the foregoing sentence, but subject to the terms of the Credit
Agreement, any Lender may assign or otherwise transfer all or any portion of its rights and
obligations under the Credit Agreement (including, without limitation, all or any portion of its
Commitments, the Loans owning to it and the Note or Notes, if any, held by it).

     Section 23. Release; Termination.

     (a) Upon any sale, lease, transfer or other disposition of any item of Collateral of the
Grantor to any Person other than a Subsidiary that is required to be a Guarantor in a transaction
which is permitted by the terms of the Credit Agreement, such Collateral will be sold, leased,
transferred or otherwise disposed of free and clear of the Liens created hereby, and the Agent
will, at the Grantor’s expense, execute and deliver to the Grantor such documents as the Grantor
shall reasonably request to evidence the release of such item of Collateral from the assignment and
security interest granted hereby.

     (b) Upon Payment in Full in accordance with the Credit Agreement, this Agreement and the Liens
and security interests created hereunder shall automatically terminate and the Agent (on behalf of
itself and the Lenders) shall return to the Grantor, at the expense of the Grantor, such Collateral
in the possession or control of the Agent as has not theretofore been disposed of pursuant to the
provisions hereof and shall deliver to the Grantor documents in recordable form (which documents
shall be prepared by, and the expense thereof to be borne by,

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the Grantor) sufficient to discharge the Liens and security interests granted hereunder;
provided, however, that in the event all or any portion of any payment of the Obligations is
rescinded or recovered from the Agent or any Lender, this Agreement shall be automatically
reinstated and continue and remain in full force and effect.

     Section 24. Further Assurances. The Grantor agrees that from time to time, at the
expense of the Grantor, that it shall promptly execute and deliver all further instruments and
documents (including, without limitation, financing statements, supplemental security agreements,
notices of assignment under the United States Assignment of Claims Act and under similar or
applicable local and foreign statutes and regulations), and take all further action, that may be
necessary or desirable, or that the Agent may reasonably request, in order to create and/or
maintain the validity, perfection or priority of and protect any security interest granted hereby
or to enable the Agent to exercise and enforce its rights and remedies hereunder with respect to
any Collateral. In furtherance of the foregoing, the Grantor hereby authorizes the Agent to file
financing or continuation statements, and amendments thereto, in any jurisdictions and with any
filing offices as the Agent may determine, in its sole discretion, are necessary or advisable to
perfect the security interest granted to the Agent herein. Such financing statements may describe
the Collateral in the same manner as described herein or may contain an indication or description
of collateral that describes such property in any other manner as the Agent may determine, in its
sole discretion, is necessary, advisable or prudent to ensure the perfection of the security
interest in the Collateral granted to the Agent herein, including, without limitation, describing
such property as “all assets” or “all personal property, whether now owned or hereafter acquired”.
The Grantor shall furnish to the Agent from time to time statements and schedules further
identifying and describing the Collateral and such other reports in connection with the Collateral
as the Agent may reasonably request, all in reasonable detail.

     Section 25. Notices. Except as otherwise expressly provided herein, all notices and
other communications made or required to be given pursuant to this Agreement shall be made in
accordance with the provisions of Section 10.2 of the Credit Agreement.

     Section 26. [Reserved]

     Section 27. 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 acceptable manner to the end that the transactions contemplated hereby are fulfilled to the
extent possible.

     Section 28. Integration; Conflict. This Agreement and the other Credit Documents
contain and constitute the entire agreement of the parties hereto with respect to the subject
matter hereof and supersedes all prior negotiations, agreements and understandings, whether written
or oral, of such parties. In the event that there is a conflict between any provision of this
Agreement and the Credit Agreement, then the provisions of the Credit Agreement shall control.

20

 

     Section 29. Submission to Jurisdiction. Each of the parties hereto hereby agree to be
bound by the provisions of Sections 11.15, 11.16, 11.17, 11.18, 11.19 and 11.20 of the Credit
Agreement.

[Remainder of page intentionally left blank;

signature pages follow]

21

 

     IN WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed by its
authorized representatives as of the date first above written.

	 	 	 	 	 
	 	GRANTOR:

XINHUA FINANCE MEDIA LIMITED

 	 
	 	By:  	/s/ Andrew Chang
 	 
	 	 	Name:  	Andrew Chang 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

[Signatures continue on next page]

Debt Security Agreement

S-1

 

	 	 	 	 	 
	 	AGENT:

PATRIARCH PARTNERS AGENCY

SERVICES, LLC

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

Debt Security Agreement

S-2

 

EXHIBIT A

TO

SECURITY AGREEMENT

Form of UCC-1

 

 

EXHIBIT B

TO

SECURITY AGREEMENT

FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT

     THIS INTELLECTUAL PROPERTY SECURITY AGREEMENT (as may be amended, supplemented or otherwise
modified from time to time, this “IP Security Agreement”) dated [                    ], is made
by                     , a                      (the “Grantor”) in favor of Patriarch Partners Agency
Services, LLC (“PPAS”), as agent (the “Agent”) for the Lenders (as defined below).

     WHEREAS, Xinhua Finance Media Limited has entered into a Credit Agreement dated as of
October 21, 2008 (as may be amended, supplemented or otherwise modified from time to time, the
“Credit Agreement”), with PPAS, as Agent, and the lenders party thereto (the
“Lenders”). Capitalized terms used herein and not otherwise defined are used herein as
defined in the Credit Agreement.

     WHEREAS, as a condition precedent to the making of advances, Grantor shall have executed that
certain Security Agreement dated as of October 21, 2008 (as may be amended, supplemented or
otherwise modified from time to time, the “Security Agreement”) by Grantor in favor of the
Agent for the benefit of the Lenders and the Agent.

     WHEREAS, under the terms of the Security Agreement, Grantor has granted a security interest in
certain intellectual property of Grantor to the Agent for the ratable benefit of the Lenders, and
have agreed as a condition thereof to execute this IP Security Agreement for recording with the
U.S. Patent and Trademark Office, the U.S. Copyright Office and any other governmental authority.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Grantor agrees as follows:

     Section 1. Grant of Security. Grantor hereby grants to the Agent for the ratable
benefit of the Lenders a security interest in and to all of Grantor’s right, title and interest in
and to the following (the “Collateral”):

     (a) the United States and foreign trademark and service mark registrations, applications, and
licenses set forth on Exhibit A hereto but excluding any United States intent-to-use
trademark application prior to the filing of a Statement of Use or Amendment to Allege Use in
connection therewith to the extent that a valid security interest may not be taken in such an
intent-to-use trademark application under applicable law (the “Trademarks”);

     (b) any and all causes of action for past, present and future infringement or breach of the
Trademarks, with the right, but not the obligation to sue for and collect, or otherwise recover,
damages for such infringement or breach;

     (c) the United States, international and foreign patents, patent applications, utility models,
and statutory invention registrations set forth on Exhibit B hereto (the
“Patents”);

 

 

     (d) any and all reissues, divisions, continuations, continuations-in-part, extensions and
reexaminations of the Patents, all inventions in the Patents, and all rights provided in the
Patents by international treaties or conventions and all improvements thereto;

     (e) the United States, international and foreign copyrights, copyright applications, copyright
registrations and like protections in each work of authorship, whether statutory or common, whether
published or unpublished, any renewals or extensions thereof, all copyrights of works based on,
incorporated in, derived from, or relating to works covered by such copyrights, set forth on
Exhibit C hereto (the “Copyrights”);

     (f) all claims for damages for past, present and future infringement, misappropriation or
breach with respect to the Copyrights, with the right to sue for and collect or otherwise recover,
such damages; and

     (g) any and all proceeds of the foregoing.

     Section 2. Submission to Jurisdiction. Each of the Lenders, Agent and Grantor hereby
agrees to be bound by the provisions of Section 11.17, 11.18 and 11.19 of the Credit Agreement.

     Section 3. Waiver of Jury Trial. Each of the Lenders, Agent and Grantor hereby waives
any right to a trial by jury in any Action to enforce or defend any right under this Agreement or
any amendment, instrument, document or agreement delivered or to be delivered in connection with
this Agreement and agrees that any Action will be tried before a court and not before a jury.

     Section 4. Recordation. Grantor authorizes and requests that the Commissioner of
Patents and Trademarks and any other applicable government officer record this IP Security
Agreement.

     Section 5. Execution in Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original and all of which
when so executed shall be deemed to be an original and all of which taken together shall constitute
one and the same agreement.

     Section 6. Conflict Provision. This IP Security Agreement has been entered into in
conjunction with the provisions of the Security Agreement and the Credit Agreement. The rights and
remedies of each party hereto with respect to the security interest granted herein are without
prejudice to, and are in addition to those set forth in the Security Agreement and the Credit
Agreement, all terms and provisions of which are incorporated herein by reference. In the event
that any provisions of this IP Security Agreement are in conflict with the Security Agreement or
the Credit Agreement, the provisions of the Security Agreement or the Credit Agreement shall
govern.

[Remainder of page intentionally left blank;

signature pages follow]

2

 

     IN WITNESS WHEREOF, Grantor has caused this Agreement to be duly executed and delivered by its
manager thereunto duly authorized as of the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	[GRANTOR]	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Signature Page to Intellectual Property Security Agreement

 

 

Exhibit A: Trademarks

	 	 	 	 	 	 	 
	 	 	 	 	Registration/	 	Issue/
	 	 	 	 	(Application)	 	(Application)
	Country	 	Trademark	 	No.	 	Date
	 	 	 	 	 	 	 

 

 

Exhibit B: Patents

	 	 	 
	PATENT NUMBER/TITLE	 	FILING DATE/STATUS
	United States
	 	 
	 	 	 
	 	 	 
	 	 	 
	Foreign	 	 

 

 

Exhibit C: Copyrights

	 	 	 	 	 	 	 
	 	 	 	 	Registration/	 	 
	Country	 	Copyright	 	Application	 	Filing Date
	 	 	 	 	 	 	 

 

 

Schedule I

to

Security Agreement

Pledged Equity

	 	 	 	 	 	 	 	 	 
	 	 	Authorised share capital/	 	 	 	 
	Pledged Shares	 	Registered Capital	 	Shares Outstanding	 	Certificate No.
	One share, US $1.00
par value, in
Starease Limited

	 	50,000 shares
	 	1 share
	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	500 shares, US
$1.00 par value, in
Upper Step Holdings
Limited

	 	50,000 shares
	 	500 shares
	 	8, 10, 11

 

 

Schedule II

to

Security Agreement

Pledged Debt

None

 

 

Schedule III

to

Security Agreement

Patents

None

 

 

Schedule IV

to

Security Agreement

Trademarks

None

 

 

Schedule V

to

Security Agreement

Copyrights

None

 

 

Schedule VI

to

Security Agreement

Domain Names

None

 

 

Schedule VII

to

Security Agreement

Commercial Tort Claims

None

 

 

Schedule VIII

to

Security Agreement

Chief Executive Offices; Domicile; Organization Identification Number

	 	 	 	 	 	 	 
	 	 	 	 	Locations of	 	 
	Chief Executive Office	 	Location of its books	 	Collateral	 	Jurisdiction of Incorporation
	2201 Tower D
Central International
Trade Center
6A Jian Wai Avenue
Chaoyang District
Beijing, 100022,
People’s Republic of
China

	 	2201 Tower D
Central International
Trade Center
6A Jian Wai Avenue
Chaoyang District
Beijing, 100022,
People’s Republic of China
	 	N/A
	 	Cayman Islands

 

 

Schedule IX

to

Security Agreement

Licenses

None

 

 

Schedule X

to

Security Agreement

Media Contracts

	•	 	The Media Rights Agreement entered into by and between Union Des Associations
Eureopeennes De Football (“UEFA”) and the Grantor, dated as of August 15, 2008.
	 
	•	 	The Term Sheet Agreement between ASN Limited as licensor and the Grantor as licensee
dated as of September 10, 2008.EX-4.56

EXECUTION
VERSION

Exhibit 4.56

CONSENT, WAIVER AND FIRST AMENDMENT TO CREDIT AGREEMENT

     THIS CONSENT, WAIVER AND FIRST AMENDMENT TO CREDIT AGREEMENT (this “First Amendment”)
is entered into as of February 20, 2009, by and among XINHUA SPORTS & ENTERTAINMENT LIMITED
(formerly known as XINHUA FINANCE MEDIA LIMITED), a Cayman Islands limited company (the
“Borrower”), the Subsidiaries of the Borrower signatory hereto (collectively, the
“Guarantors”), the financial institutions and investors signatory hereto (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

     A. The Borrower, the Guarantors, the Lenders and the Agent are parties to that certain Credit
Agreement, dated as of October 21, 2008 (as amended by this First Amendment and as may be further
amended, modified, supplemented, restated, renewed, replaced or increased from time to time, the
“Credit Agreement”). Capitalized terms used but not otherwise defined herein shall have
the meanings assigned to such terms in the Credit Agreement.

     B. The Borrower and the Guarantors have requested that the Lenders and the Agent (i) consent
to the China Youth League investment, as described on Schedule II attached hereto (the
“China Youth League Investment”), which is prohibited by Section 6.1(e) of the Credit
Agreement, (ii) consent to the acquisition of Everfame Development Limited, a British Virgin
Islands company, and related investments, as described on Schedule III attached hereto (the
“Everfame Acquisition” and, together with the China Youth League Investment, the
“Transactions”), which is prohibited by Sections 5.1(o), 6.1(e) and 6.1(k) of the Credit
Agreement, (iii) increase the Term Loan Commitment, (iv) make certain amendments to the Credit
Agreement as set forth herein and (v) waive certain requirements of the Credit Documents. Subject
to the satisfaction of the conditions of effectiveness set forth in Section 6 of this First
Amendment and the other covenants, conditions and agreements contained herein, the Lenders and the
Agent have agreed to consent to the Transactions and to make such amendments.

     NOW, THEREFORE, in consideration of the foregoing and the covenants, conditions and agreements
set forth herein, and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the Borrower, the Guarantors, the Lenders and the Agent covenant and agree
as follows:

     1. CONSENT AND WAIVER. The Agent and the Lenders hereby (i) consent to each of the
Transactions, (ii) waive Section 6.1(e) of the Credit Agreement to the extent such provision
prohibits the consummation of the China Youth League Investment and waive Sections 5.1(o), 6.1(e)
and 6.1(k) to the extent such provisions prohibit the consummation of the Everfame Acquisition and
(iii) waive the application of Section 5.1(h) of the Credit Agreement, Section 6(a) of the Security
Agreement and Section 20(b) of the Pledge Agreement with respect to the change of the Borrower’s
name to “Xinhua Sports & Entertainment Limited” and hereby

 

 

waive any Default or Event of Default that may have arisen as a result of any failure to
comply with the requirements of such sections with respect to such name change, in each case
subject to, and based upon, the following terms and conditions:

     (a) the Borrower shall be in pro forma compliance with the financial covenants set
forth in Section 6.2 of the Credit Agreement (as set forth in and as amended by this First
Amendment) before and after giving effect to each of the Transactions;

     (b) no Default or Event of Default under any Credit Document (other than such Defaults
or Events of Default as are expressly waived by this First Amendment) shall exist prior to
or immediately after giving effect to the terms of either of the Transactions;

     (c) neither of the Transactions shall be reasonably expected to cause a Material
Adverse Effect;

     (d) all PRC entities acquired in the Everfame Acquisition shall be directly or
indirectly owned by Upper Step Holdings Limited and shall be subject to an Internal Control
Agreement with such Credit Party or a Subsidiary thereof;

     (e) no proceeds of the Term Loans shall be used at any time (including during the term
of the joint venture agreement and all other agreements executed in connection with the
China Youth League Investment) by any Credit Party to pay any consideration, purchase price,
costs, expenses, working capital, contingent payments, incentive payments, revenue sharing
payments, or other payments in connection with the China Youth League Investment or to make
any loans, advances or other fundings to any person or entity in connection with or pursuant
to any document, instrument or agreement executed in connection with the China Youth League
Investment;

     (f) the Borrower shall have delivered to the Agent a description of the pro forma cash
flow to the Borrower from each of the Transactions, in each case certified by a director of
the Borrower;

     (g) the Borrower shall have delivered to the Agent a copy of the resolutions of the
Board of Directors of the Borrower (or a duly appointed Committee thereof), approving each
of the Transactions, in each case certified by a director of the Borrower;

     (h) the Borrower shall have delivered to the Agent an updated Disclosure Schedule to
reflect each of the Transactions;

     (i) the Borrower shall have delivered to the Agent complete executed copies of all
documents and agreements relating to the China Youth League Investment, certified by a
director of the Borrower;

     (j) no later than two (2) Business Days after the closing of the Everfame Acquisition,
the Borrower shall deliver to the Agent complete executed copies of all documents and
agreements relating to the Everfame Acquisition, certified by a director of

2

 

the Borrower, substantially in the form provided to counsel for the Agent and the
Lenders on February 17, 2009; and

     (k) the Borrower shall have delivered to the Agent certificates signed by an Authorized
Officer of the Borrower, certifying (i) on the First Effective Date (as defined herein) as
to the matters set forth in clauses (a), (b), (c) and (e) above and (ii) on the Second
Effective Date (as defined herein) as to the matters set forth in clauses (a), (b), (c) and
(d) above and certifying as to the Borrower’s compliance with Sections 5.1(m) and 6.1(k) of
the Credit Agreement, and in each case attaching calculations necessary to show compliance
under clause (a) above.

     2. AMENDMENTS TO CREDIT AGREEMENT. The Credit Agreement is hereby amended as follows:

     (a) Amendment of Section 1.1 of the Credit Agreement. The following
definitions in Section 1.1 of the Credit Agreement are hereby amended and restated in their
entirety to read as follows:

“Agreement” means this Agreement, as amended by the First Amendment,
and as it may be further amended, modified, restated, extended, increased,
renewed, supplemented and/or replaced from time to time.

“Commitment Period” means the period from the date of this Agreement
to but excluding March 31, 2009.

“Credit Documents” means any of this Agreement (including the
Disclosure Schedule), the First Amendment, the Term Notes (if any), the
Collateral Documents, the Guaranty, the Investor and Registration Rights
Agreement, the Subordination Agreement, and all other agreements,
instruments, certificates and documents previously, now or hereafter
executed and/or delivered to or for the benefit of the Agent or any Lender
from time to time by any Credit Party or any other person or entity in
connection with this Agreement or any other Credit Document, each as
amended, modified, supplemented, restated, extended, increased, renewed
and/or replaced from time to time.

“Disclosure Schedule” means the Credit Parties’ Disclosure Schedule
delivered to the Agent at Closing, as such schedule may be updated, amended,
supplemented, restated or otherwise modified from time to time pursuant to
the terms of this Agreement.

“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

3

 

to letters of credit, banker’s acceptances or similar instruments;
provided, notwithstanding the foregoing, any non-cash imputed
interest expenses relating to long-term contracts shall be excluded from the
total interest expenses.

“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; provided, notwithstanding the foregoing, any and all
indebtedness and accrued or paid interest in respect thereof arising from
ordinary course financings to facilitate conversion of Dollars into RMB
required for working capital purposes in the PRC shall be excluded from the
calculation of the total debt.

     (b) Addition to Section 1.1 of the Credit Agreement. The following definition
is hereby added in alphabetical order to Section 1.1 of the Credit Agreement:

“First Amendment” means that certain Consent, Waiver and First
Amendment to Credit Agreement, dated as of February 20, 2009, by and among
the Lenders, the Agent, the Borrower and the Guarantors.

     (c) Amendment of Section 2.4 of the Credit Agreement. Section 2.4 of the
Credit Agreement is hereby amended and restated in its entirety to read as follows:

     Section 2.4 Lenders’ Loan Amounts. All Loans (a) made on the Closing
Date shall be made by the Lenders simultaneously and proportionately to their
respective Pro Rata Shares and (b) made subsequent to the Closing Date shall be made
by each Lender in an amount determined by the Agent in its sole discretion and
within such Lender’s Term Loan Commitment, in each case 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.

     (d) Amendment of Section 2.17 of the Credit Agreement. Section 2.17 of the
Credit Agreement is hereby amended to replace in subsection (a) thereof the term
“$40,000,000” with the term “$22,200,000” and to amend and restate in its entirety
subsection (c)(iii) thereof to read as follows:

     (iii) the Borrower shall pay to the Agent 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) 2.0%, 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.

     (e) Addition to Section 3.2 of the Credit Agreement. The following subsection
(j) is hereby added to Section 3.2 of the Credit Agreement.

4

 

     (j) Certificates and Opinions. The Borrower shall deliver all
certificates, documents, instruments and agreements, including all constitutive
documents, resolutions, director’s certificates, opinions of counsel, and financing
statements, and take all such action, reasonably requested by the Agent in
furtherance of the foregoing.

     (f) Amendment of Section 6.2(a) of the Credit Agreement. Section 6.2(a) of the
Credit Agreement is hereby amended and restated in its entirety to read as follows:

     (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
	 	$	25,480,000.00	 	 	 	3.23 : 1	 	 	 	5.03 : 1	 
	1st Fiscal Quarter
ending in Fiscal
Year 2009
	 	$	20,147,796.11	 	 	 	3.40  : 1	 	 	 	3.67  : 1	 
	2nd Fiscal Quarter
ending in Fiscal
Year 2009
	 	$	20,062,644.42	 	 	 	2.76  : 1	 	 	 	3.68  : 1	 
	3rd Fiscal Quarter
ending in Fiscal
Year 2009
	 	$	20,244,241.49	 	 	 	2.62  : 1	 	 	 	3.65  : 1	 
	4th Fiscal Quarter
ending in Fiscal
Year 2009
	 	$	20,810,838.57	 	 	 	2.54  : 1	 	 	 	3.55  : 1	 
	1st Fiscal Quarter
ending in Fiscal
Year 2010
	 	$	15,363,810.46	 	 	 	1.88  : 1	 	 	 	4.81  : 1	 
	2nd Fiscal Quarter
ending in Fiscal
Year 2010
	 	$	20,488,289.52	 	 	 	2.51  : 1	 	 	 	3.60  : 1	 
	3rd Fiscal Quarter
ending in Fiscal
Year 2010
	 	$	26,267,426.98	 	 	 	3.21  : 1	 	 	 	2.81  : 1	 
	4th Fiscal Quarter
ending in Fiscal
Year 2010
	 	$	32,863,769.08	 	 	 	4.02  : 1	 	 	 	2.25  : 1	 
	1st Fiscal Quarter
ending in Fiscal
Year 2011
	 	$	19,305,185.03	 	 	 	2.36  : 1	 	 	 	3.83  : 1	 
	2nd Fiscal Quarter
ending in Fiscal
Year 2011
	 	$	28,634,378.47	 	 	 	3.50  : 1	 	 	 	2.58  : 1	 

5

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Minimum	 	 	 	 
	 	 	Consolidated	 	Minimum Interest	 	Maximum Leverage
	Fiscal Quarter Ending	 	EBITDA	 	Coverage Ratio	 	Ratio
	3rd Fiscal Quarter
ending in Fiscal
Year 2011
	 	$	38,966,420.22	 	 	 	4.76  : 1	 	 	 	1.90  : 1	 
	4th Fiscal Quarter
ending in Fiscal
Year 2011
	 	$	48,764,013.58	 	 	 	5.96  : 1	 	 	 	1.51  : 1	 
	1st Fiscal Quarter
ending in Fiscal
Year 2012
	 	$	47,524,013.58	 	 	 	5.81  : 1	 	 	 	1.55  : 1	 
	2nd Fiscal Quarter
ending in Fiscal
Year 2012
	 	$	47,524,013.58	 	 	 	5.81  : 1	 	 	 	1.55  : 1	 
	3rd Fiscal Quarter
ending in Fiscal
Year 2012
	 	$	47,524,013.58	 	 	 	5.81  : 1	 	 	 	1.55  : 1	 

     (g) Amendment of Section 6.2(a) of the Credit Agreement. Upon the Second
Effective Date (as defined below), Section 6.2(a) of the Credit Agreement shall be hereby
amended and restated in its entirety to read as follows:

     (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
	 	$	25,480,000.00	 	 	 	3.23 : 1	 	 	 	5.03 : 1	 
	1st Fiscal Quarter
ending in Fiscal
Year 2009
	 	$	20,447,796.11	 	 	 	3.19  : 1	 	 	 	4.79  : 1	 
	2nd Fiscal Quarter
ending in Fiscal
Year 2009
	 	$	20,362,644.42	 	 	 	2.48  : 1	 	 	 	4.81  : 1	 
	3rd Fiscal Quarter
ending in Fiscal
Year 2009
	 	$	20,544,241.49	 	 	 	2.24  : 1	 	 	 	4.76  : 1	 
	4th Fiscal Quarter
ending in Fiscal
Year 2009
	 	$	21,110,838.57	 	 	 	2.09  : 1	 	 	 	4.64  : 1	 
	1st Fiscal Quarter
ending in Fiscal
Year 2010
	 	$	16,803,810.46	 	 	 	1.66  : 1	 	 	 	5.82  : 1	 
	2nd Fiscal Quarter
ending in Fiscal
Year 2010
	 	$	21,928,289.52	 	 	 	2.17  : 1	 	 	 	4.46  : 1	 
	3rd Fiscal Quarter
ending in Fiscal
Year 2010
	 	$	27,707,426.98	 	 	 	2.74  : 1	 	 	 	3.53  : 1	 

6

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Minimum
Consolidated	 	Minimum Interest	 	Maximum Leverage
	Fiscal Quarter Ending	 	EBITDA	 	Coverage Ratio	 	Ratio
	4th Fiscal Quarter
ending in Fiscal
Year 2010
	 	$	34,303,769.08	 	 	 	3.40  : 1	 	 	 	2.85  : 1	 
	1st Fiscal Quarter
ending in Fiscal
Year 2011
	 	$	22,625,185.03	 	 	 	2.24  : 1	 	 	 	4.33  : 1	 
	2nd Fiscal Quarter
ending in Fiscal
Year 2011
	 	$	31,954,378.47	 	 	 	3.16  : 1	 	 	 	3.06  : 1	 
	3rd Fiscal Quarter
ending in Fiscal
Year 2011
	 	$	42,286,420.22	 	 	 	4.19  : 1	 	 	 	2.31  : 1	 
	4th Fiscal Quarter
ending in Fiscal
Year 2011
	 	$	52,084,013.58	 	 	 	5.16  : 1	 	 	 	1.88  : 1	 
	1st Fiscal Quarter
ending in Fiscal
Year 2012
	 	$	52,084,013.58	 	 	 	5.16  : 1	 	 	 	1.88  : 1	 
	2nd Fiscal Quarter
ending in Fiscal
Year 2012
	 	$	52,084,013.58	 	 	 	5.16  : 1	 	 	 	1.88  : 1	 
	3rd Fiscal Quarter
ending in Fiscal
Year 2012
	 	$	52,084,013.58	 	 	 	5.16  : 1	 	 	 	1.88  : 1	 

     (h) Amendment of Schedule I to the Credit Agreement. Schedule I to the Credit
Agreement is hereby deleted and replaced in its entirety by Schedule I attached to
this First Amendment:

     3. RELEASE AND WAIVER OF CLAIMS.

     (a) In consideration of the consent to and amendment of certain provisions of the
Credit Agreement as provided herein and the other benefits received by each of the Borrower
and the Guarantors hereunder, each of the Borrower and the Guarantors hereby RELEASES,
WAIVES, RELINQUISHES and forever DISCHARGES each of the Lenders and the Agent, as well as
their predecessors, successors, assigns, agents, officers, directors, employees, attorneys,
representatives, affiliates and subsidiaries of and from any and all claims, offsets,
defenses, counterclaims, demands, actions and causes of action of any and every kind or
character, past or present, which any Credit Party may have against any of the Lenders, the
Agent or any of their predecessors, successors, assigns, agents, officers, directors,
employees, attorneys, representatives, affiliates and subsidiaries arising out of or with
respect to any and all transactions relating to the Credit Documents occurring prior to the
date hereof, including any loss, cost or damage, of any kind or character, arising out of or
in any way connected with or in any way resulting from the acts, actions or omissions of any
of the Lenders, the Agent or any of their predecessors, successors, assigns, agents,
officers, directors, employees, attorneys, representatives, affiliates and subsidiaries,
including any breach of fiduciary duty, breach of any duty of fair dealing, breach of
confidence, breach of funding commitment, undue influence, duress, economic coercion,
conflict of interest, negligence, bad faith, malpractice, intentional or negligent
infliction of mental distress, tortious interference with contractual relations, tortious
interference with corporate governance or prospective business advantage, breach of
contract, deceptive trade practices, libel, slander or conspiracy, but in each case only to
the extent permitted by applicable law, such waiver and release being with full knowledge

7

 

and understanding of the circumstances and effect thereof and after having consulted
legal counsel with respect thereto.

     (b) The agreements of each of the Borrower and the Guarantors set forth in this
Section 3 shall survive termination of this First Amendment and the other Credit
Documents.

     4. REPRESENTATIONS AND WARRANTIES OF THE BORROWER AND THE GUARANTORS. By its
execution and delivery hereof, each of the Borrower and the Guarantors represents and warrants to
the Lenders and the Agent that, as of each Effective Date:

     (a) the representations and warranties of the Borrower and the Guarantors contained in
the Credit Agreement and the other Credit Documents are true and correct on and as of each
Effective Date as if made on and as of such Effective Date, except to the extent that such
representations and warranties expressly relate solely to an earlier date (in which case
such representations and warranties shall have been true and accurate on and as of such
earlier date);

     (b) no Default or Event of Default will result from or after giving effect to this
First Amendment;

     (c) the execution, delivery and performance by each Credit Party of this First
Amendment are within its respective legal power and authority, and have been duly authorized
by all necessary actions of such Credit Party;

     (d) this First Amendment has been duly executed and delivered by it and constitutes its
legal, valid and binding obligation, enforceable in accordance with its terms, except as
enforceability thereof may be limited by applicable bankruptcy or other debtor relief laws
and by general principles of equity (regardless of whether enforcement is sought in a
proceeding in equity or at law);

     (e) neither its execution, delivery and performance of this First Amendment nor the
consummation of any transactions contemplated herein will violate or conflict with, or
result in a breach of, or constitute a default under, or require any consent under, (i) any
of its organizational or other governance documents, (ii) any Regulation, or (iii) any
agreement or instrument to which it is a party or by which it or any of its property is
bound or subject;

     (f) no authorization, approval or consent of, or other action by, notice to, or filing
with, any Governmental Body or other person or entity is required for its execution,
delivery or performance of this First Amendment;

     (g) since October 21, 2008, no act, circumstance or event (including, without
limitation, any pending or threatened action before any Governmental Body or arbitrator) has
occurred that has had, or could reasonably be expected to have, either in any case or in the
aggregate, a Material Adverse Effect; and

8

 

     (h) the Credit Parties are not aware of any claim or offset against, or defense or
counterclaim to, any of their obligations or liabilities under the Credit Agreement or any
other Credit Document.

     5. REPRESENTATIONS AND WARRANTIES OF THE LENDERS. By its execution and delivery
hereof, each Lender represents and warrants to the Borrower that, (i) as of each Effective Date,
this First Amendment constitutes the legal, valid and binding obligation of such Lender,
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 (ii) the representations and warranties of the
Lenders contained in Section 4.2 of the Credit Agreement are true and correct on and as of each
Effective Date as if made on and as of such Effective Date, except to the extent that such
representations and warranties expressly relate solely to an earlier date (in which case such
representations and warranties shall have been true and correct on and as of such earlier date).

     6. CONDITIONS PRECEDENT TO EFFECTIVENESS.

     (a) Sections 2(a), (b), (e) and (f) of this First Amendment shall be effective
as of December 26, 2008 (the “First Effective Date”) only after each of the
following conditions precedent shall have been satisfied in the Lenders’ and the Agent’s
sole discretion:

	 	(i)	 	the Agent shall have received counterparts of (i) this First Amendment
executed by each Credit Party, (ii) the Borrower Ratification and
Acknowledgment executed by the Borrower and (iii) the Guarantor Ratification
and Consent executed by each Guarantor;
	 
	 	(ii)	 	the Agent shall have received all of the documents required under
Sections 1(f), (g), (h), (i) and (k) of this First Amendment with
respect to the Chinese Youth League Investment;
	 
	 	(iii)	 	as of the First Effective Date, no Default or Event of Default (other
than such Defaults or Events of Default as are expressly waived by this First
Amendment) under any Credit Document shall have occurred and be continuing or
will result from or after giving effect to this First Amendment;
	 
	 	(iv)	 	as of the First Effective Date, the representations and warranties set
forth in Section 4 of this First Amendment and in the other Credit
Documents shall be true and correct; and
	 
	 	(v)	 	the Agent shall have received, in form and substance satisfactory to
the Agent and its counsel, copies of each instrument, agreement, certificate,
opinion or other document required pursuant to Sections 3.2(i), 3.2(j) 5.1(m),
5.1(o) and 6.1(k) of the Credit Agreement and such other documents, opinions,
certificates and instruments as the Agent or its counsel shall reasonably
request, and the Borrower and the Guarantors

9

 

	 	 	 	shall have taken such further actions as the Agent or its counsel may
reasonably request in connection herewith or therewith.

     (b) Provided that such date has occurred on or before March 13, 2009, Sections
2(c), (d), (g) and (h) of this First Amendment shall become effective as of the date
(the “Second Effective Date” and each of the First Effective Date and the Second
Effective Date, an “Effective Date”) on which the following conditions precedent
shall have been satisfied in the Lenders’ and the Agent’s sole discretion:

	 	(i)	 	the Agent shall have received all of the documents required under
Sections 1(f), (g), (h), (j) and (k) of this First Amendment with
respect to the Everfame Acquisition;
	 
	 	(ii)	 	as of the Second Effective Date, no Default or Event of Default under
any Credit Document shall have occurred and be continuing or will result from
or after giving effect to this First Amendment;
	 
	 	(iii)	 	as of the Second Effective Date, the representations and warranties
set forth in Section 4 of this First Amendment and in the other Credit
Documents shall be true and correct;
	 
	 	(iv)	 	the Borrower shall have executed and delivered to the Agent a Funding
Notice in accordance with Section 3.2(a) of the Credit Agreement;
	 
	 	(v)	 	the Borrower shall have executed and delivered to each Lender a Term
Note in the outstanding principal amount equal to the increase in such Lender’s
Term Loan;
	 
	 	(vi)	 	the Agent shall have received from the Borrower pursuant to Section
2.7(c) of the Credit Agreement payment of the non-refundable commitment
increase fee of $356,000 (i.e., an amount equal to (i) $17,800,000,
times (ii) 2.0%), which fee shall be deemed fully earned and due and
payable on the Second Effective Date and in addition to any other fee from time
to time payable under the Credit Documents;
	 
	 	(vii)	 	the Agent shall have received from the Borrower payment for or
reimbursement of all fees and expenses (including reasonable attorneys’ fees)
incurred by the Agent and the Lenders in connection with the preparation,
negotiation, review, execution and delivery of this First Amendment and all
other outstanding fees and expenses required to be paid under the Credit
Agreement;
	 
	 	(viii)	 	the Agent shall have received, in form and substance satisfactory to the
Agent and its counsel, copies of each instrument, agreement, certificate,
opinion or other document required pursuant to Sections 3.2(i), 3.2(j), 5.1(m),
5.1(o) and 6.1(k) of the Credit Agreement and such other documents, opinions,
certificates and instruments as the Agent or its counsel shall reasonably
request, and the Borrower and the Guarantors

10

 

	 	 	 	shall have taken such further actions as the Agent or its counsel may
reasonably request in connection herewith or therewith (including, without
limitation, an opinion of Cayman Islands counsel to the Borrower that the
change of the Borrower’s name referred to herein has not adversely affected
the validity of any charge established under any Credit Document on the
Collateral).

     7. FURTHER ASSURANCES. Each of the Borrower and the Guarantors, upon the reasonable
request of the Agent, shall promptly and duly execute and deliver such further instruments and
documents and take such further actions as the Agent may reasonably request for the purposes of
obtaining or preserving the full benefits of this First Amendment. Borrower shall also cause to be
delivered to the Agent and the Lenders by February 28, 2009 the opinion parenthetically referred to
in Section 6(b)(viii) hereof; failure to provide such opinion as required shall be deemed
an Event of Default under the Credit Agreement.

     8. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All representations and warranties
made in this First Amendment or any other Credit Document, including any Credit Document furnished
in connection with this First Amendment, shall survive the execution and delivery of this First
Amendment and the other Credit Documents, and no investigation by any Lender or the Agent or the
execution of this First Amendment by the Lenders and the Agent shall affect such representations
and warranties or the right of the Lenders and the Agent to rely upon them.

     9. SEVERABILITY. Any provision of this First Amendment held by a court of competent
jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this
First Amendment and the effect thereof shall be confined to the provision so held to be invalid or
unenforceable.

     10. RATIFICATION; REFERENCE TO CREDIT AGREEMENT. Except as expressly modified and
superseded by this First Amendment, the terms and provisions of the Credit Agreement and the other
Credit Documents are ratified and confirmed and shall continue in full force and effect. Upon the
First Effective Date, each reference in the Credit Agreement to “this Credit Agreement,” “this
Agreement,” “hereunder,” “herein” or words of like import shall mean and be a reference to the
Credit Agreement, as affected and amended by this First Amendment.

     11. EXPENSES. As provided in the Credit Agreement, but without limiting any terms or
provisions thereof, the Borrower agrees to pay on demand all costs and expenses incurred by the
Agent and the Lenders in connection with the preparation, negotiation, and execution of this First
Amendment, including without limitation the costs and fees of the Agent’s and the Lenders’ legal
counsel, regardless of whether the Second Effective Date occurs, and all costs and expenses
incurred by the Agent and the Lenders in connection with the enforcement or preservation of any
rights under the Credit Agreement, as amended hereby.

     12. COUNTERPARTS; EXECUTION VIA FACSIMILE. This First Amendment may be executed in
one or more counterparts, each of which shall be deemed an original, but all

11

 

of which together shall constitute one and the same instrument. This First Amendment may be
validly executed and delivered by facsimile or other electronic transmission.

     13. GOVERNING LAW; BINDING EFFECT. This First Amendment shall be governed by and
construed in accordance with the laws of the State of New York, without regard to the principles of
conflicts of laws thereof, and shall be binding upon the Borrower, the Lenders, the Agent and each
Guarantor and their respective successors and assigns, except that none of the Borrower or the
Guarantors may assign or transfer any of its rights or obligations hereunder without the prior
written consent of the Lenders and the Agent.

     14. HEADINGS. Section headings in this First Amendment are included herein for
convenience of reference only and shall not constitute a part of this First Amendment for any other
purpose.

     15. CREDIT DOCUMENT. This First Amendment is a Credit Document and is subject to all
provisions of the Credit Agreement applicable to Credit Documents, all of which are incorporated in
this First Amendment by reference the same as if set forth in this First Amendment verbatim.

     16. NO ORAL AGREEMENTS. THIS FIRST AMENDMENT IS SPECIFICALLY LIMITED TO THE MATTERS
SET FORTH HEREIN. THIS FIRST AMENDMENT AND THE OTHER CREDIT DOCUMENTS REPRESENT THE FINAL
AGREEMENT BETWEEN AND AMONG THE CREDIT PARTIES, THE LENDERS AND THE AGENT AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF SUCH PARTIES.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN OR AMONG THE CREDIT PARTIES, THE LENDERS AND THE
AGENT.

     17. WAIVER OF JURY. THE PARTIES HERETO 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 FIRST AMENDMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS FIRST AMENDMENT
(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 FIRST AMENDMENT
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

[SIGNATURE PAGES IMMEDIATELY FOLLOW THIS PAGE]

12

 

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

	 	 	 	 	 
	BORROWER: 	XINHUA SPORTS & ENTERTAINMENT LIMITED

 	 
	 	By:  	/s/ Andrew Chang
 	 
	 	 	Name:  	Andrew Chang	 
	 	 	Title:  	Chief Financial Officer 	 

S-1

 

	 	 	 	 	 

	 	 	 	 	 
	GUARANTORS: 	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 	 

S-2

 

	 	 	 	 	 
	AGENT: 	PATRIARCH PARTNERS AGENCY
SERVICES, LLC, as Agent

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

S-3

 

	 	 	 	 	 
	LENDERS:

	ZOHAR CDO 2003-1, LIMITED
	 
	 	 	 	 
	 

	By: 	Patriarch Partners VIII, LLC,

its Collateral Manager	 
	 
	 	 
	 

	 	By: 	/s/ Lynn Tilton	 
	 

	 	 	 
	 

	 	 	Name: Lynn Tilton

Title:   Manager	 
	 
	 	 

	 	 	 	 	 
	 	ZOHAR II 2005-1, LIMITED
	 	 	 
	 

	By: 	Patriarch Partners XVI, LLC,

its Collateral Manager
	 	 	 
	 

	 	By: 	/s/ Lynn Tilton
	 

	 	 	 
	 

	 	 	Name: Lynn Tilton

Title:   Manager

S-4

 

BORROWER RATIFICATION AND ACKNOWLEDGMENT

     As of the First Effective Date and upon and immediately after execution of this First
Amendment, the undersigned hereby (a) ratifies and confirms its obligations under the Credit
Documents, (b) acknowledges and agrees that each of the Credit Documents to which it is a party is
and shall remain in full force and effect and is and shall continue to be its legal, valid and
binding obligation, enforceable against it in accordance with its terms, and (c) ratifies and
confirms that the liens and security interests in the Collateral created in favor of the Agent
pursuant to the Credit Agreement and the other Credit Documents are and shall remain in existence,
validly perfected and with the priority as required by the terms of the Credit Agreement and the
other Credit Documents.

[SIGNATURE PAGE IMMEDIATELY FOLLOWS THIS PAGE]

 

	 	 	 	 	 
	 	XINHUA SPORTS & ENTERTAINMENT LIMITED

 	 
	 	By:  	/s/ Andrew Chang
 	 
	 	 	Name:  	Andrew Chang	 
	 	 	Title:  	Chief Financial Officer 	 
	 

Borrower Ratification Signature Page

 

GUARANTOR RATIFICATION AND CONSENT

     As of the First Effective Date and upon and immediately after execution of this First
Amendment by the Borrower and the Guarantors, each of the undersigned hereby (a) consents and
agrees to this First Amendment’s execution and delivery by the Borrower, (b) ratifies and confirms
its obligations under each of the Credit Documents to which it is party, including, without
limitation, that certain Guaranty, dated as of October 21, 2008, executed by each of the
undersigned in favor of the Lenders and the Agent (as amended, modified, restated, replaced or
supplemented from time to time, the “Guaranty”), (c) acknowledges and agrees that its
obligations under the Guaranty and the other Credit Documents to which it is party are not
released, diminished, impaired, reduced or otherwise adversely affected by this First Amendment,
and further that the Guaranty and the other Credit Documents to which it is party are and shall
remain in full force and effect and are and shall continue to be its legal, valid and binding
obligations (including its obligations under the Guaranty regarding the Guaranteed Obligations (as
defined in the Guaranty)), enforceable in accordance with their respective terms, (d) acknowledges
and agrees that it has no claims or offsets against, or defenses or counterclaims to, the Guaranty,
and (e) ratifies and confirms that the liens and security interests in the Collateral created in
favor of the Agent pursuant to the Credit Agreement and the other Credit Documents are and shall
remain in existence, validly perfected and with the priority required by the terms of the Credit
Agreement and the other Credit Documents.

[SIGNATURE PAGE IMMEDIATELY FOLLOWS THIS PAGE]

 

	 	 	 	 	 
	 	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 	 
	 

Guarantor Ratification and Consent Signature Page

 

 

SCHEDULE I

	 	 	 	 	 
	Lender	 	Term Loan Commitment
	ZOHAR CDO 2003-1, LIMITED
	 	$	31,000,000.00	 
	ZOHAR II 2005-1, LIMITED
	 	$	26,800,000.00	 
	Total
	 	$	57,800,000.00	 

SCHEDULE I

 

SCHEDULE II

DESCRIPTION OF CHINA YOUTH LEAGUE INVESTMENT

	 	 	 	 	 
	Project	 	Description	 	Sources of Funds
	China Youth League Investment

	 	Pursuant to a joint
venture agreement
(the “JV Agreement”),
dated as of December
26, 2008 by and among
the Borrower, China
Youth Interactive
Media (Beijing)
Company Limited
(“Interactive”),
Youth Media (Hong
Kong) Limited
(“YMHK”) and Youth
Media (Beijing)
Limited (“YMBJ”), the
Borrower, Interactive
and YMBJ established
a contractual joint
venture. Pursuant to
the JV Agreement, the
Borrower will provide
working capital to
YMHK and has become
the exclusive
advertising and sales
agent of the joint
venture partners
across a campus
network for video
distribution built on
the existing
broadband Internet
infrastructure
connecting colleges
and universities
throughout China. A
copy of the JV
Agreement has been
provided to the
Lenders. The JV
Agreement was related
to a Master Agreement
in respect of certain
advertising business,
dated as of September
30, 2008, between
Xinhua Finance Media
Limited and Chung
Cheng Co., Ltd.,
which Master
Agreement has also
been provided to the
lenders.
	 	The Borrower’s working capital

SCHEDULE II

 

SCHEDULE III

DESCRIPTION OF EVERFAME ACQUISITION

	 	 	 	 	 	 	 	 	 	 	 
		 	Media
Companies	 	 	 	 	 	 	 	 
	Project	 	Involved	 	Funds Amount	 	Uses	 	Description	 	Collateral
	Shanxi TV Project

	 	Offshore Entities:

•     Upper Step Holdings
Limited

•     Everfame
Development Limited

•     Hong Kong Stock
Express Publication Limited

Onshore Entities:

•     Beijing Hanhua
Zhiyuan Culture Media Co., Ltd.

•     Beijing Pioneer
Media Advertising
Co., Ltd.

	 	US$23,930,000,
including (i)
US$23,920,000 from
borrowing proceeds
and (ii) US$10,000
consideration paid
to acquire the
shares of Everfame
Development Limited
funded by the
Borrower
	 	•     approximately
US$18,200,000 for
the Shanxi TV
contract
acquisition, of
which $8,000,000
will be used by the
vendors for Shanxi
TV asset upgrade;

•     approximately
US$4,400,000 for TV
content contract
investment;

•     approximately
US$1,330,000 will
be used to purchase
a 51% interest in a
joint venture for
content development

	 	Pursuant to a
purchase agreement
to be entered into
by and among the
Borrower, Parkwood
Asia Limited and
Everfame
Development Limited
in respect of
shares in the
capital of Everfame
Development Limited
and other assets
set out therein, a
draft of which
purchase agreement
has been provided
to the Lenders, and
relating
agreements,
including a
cooperation
agreement with
Shanxi Television
Station
	 	•     100% equity
interests in Upper
Step Holdings
Limited and all of
its assets

•     100% equity
interests in
Everfame
Development Limited
and all of its
assets

•     100% equity
interests in Hong
Kong Stock Express
Publication Limited
and all of its
assets

SCHEDULE III

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