Document:

Exhibit 10.8

Exhibit 10.8

Amegy Bank National Association

PURCHASE AND SALE AGREEMENT/SECURITY AGREEMENT

THIS PURCHASE AND SALE AGREEMENT/ SECURITY AGREEMENT (this “Agreement”) is made by and among AMEGY
BANK NATIONAL ASSOCIATION, a national banking association (“Purchaser”) and HERE MEDIA INC. and
HERE PUBLISHING INC. and PLANETOUT INC. and HERE NETWORKS L.L.C. (“Seller”, whether one or more,
individually and collectively, jointly and severally)

WHEREAS, Seller desires from time to time to sell accounts receivable and other rights to
Purchaser, thereby engaging in account purchase transactions as set forth in Sections 306.001(1)
and
306.103 of the Texas Finance Code; and

WHEREAS, the parties desire to enter into an agreement which will control their course of dealing
with respect to the purchase and sale of such accounts receivable and other rights;

NOW, THEREFORE, Purchaser and Seller do hereby agree, in consideration of the mutual promises
herein contained, as follows:

Section 1. Purchase and Sale of Accounts Receivable and other Rights.

Seller hereby sells, assigns, transfers, conveys and delivers to Purchaser, and Purchaser hereby
purchases and receives from Seller free and clear of any liens or Disputes (as defined below), all
rights, title and interests of Seller in the accounts receivable and other forms of rights to
payment, whether tangible or intangible, whether billed or unbilled, described on Schedule “A”
attached hereto and made a part hereof (the specific accounts receivable and rights to payment
described on Schedule “A” being herein called the “Receivables”). “Receivables” includes, but is
not limited to, all electronic, intangible or unbilled receivables, whether documented in the form
of a traditional paper invoice or contained within an electronic database or evidenced only in soft
copy; said receivables being referred to herein from time to time as “electronic” Receivables,
Seller represents and warrants to the best of its knowledge that true and correct copies of the
invoices for the Receivables are attached to Schedule “A”. For electronic Receivables, Seller
represents and warrants that an adequate description of such Receivables will be reflected on a
submitted Schedule “A”, and that such other documents will be provided to Purchaser upon request
that will adequately buttress said Receivables (e.g. purchase orders, bills of lading, and computer
records), such that Purchaser, and the relevant account payor, would be able to identity, reference
and validate the payment obligation. Future purchases and sales of accounts receivable and other
rights will be based on the completion and execution of additional schedules in form similar to
Schedule “A”. Upon execution by both Purchaser and Seller (or anyone of Seller, if more than one)
of such a schedule, the accounts receivable or other rights described therein shall become
Receivables subject in all respects to the terms of this Agreement. Any amounts advanced by
Purchaser pursuant to any future purchase and sale of accounts receivable and other items will be
deemed to be a future advance by Purchaser, and the corresponding obligations of the Seller with
respect to such accounts receivable and other rights shall be deemed to be an obligation covered by
this Agreement. Notwithstanding the creation of a security interest herein, as defined below,
Purchaser shall not be a fiduciary of Seller, and the relationship of the parties hereto shall be
that of Purchaser and Seller of accounts, and not that of lender and borrower.

Section 2. Charge-Back; Repurchase Obligation.

Purchaser shall have the right to charge back any Receivable to Seller and Seller shall have the
obligation to repurchase such Receivable (“Charge-Back”), if (a) the Receivable is not paid to
Purchaser within 90 days from date of purchase by Purchaser, or (b) any Dispute arises with respect
to such Receivable, or
(c) Seller or Purchaser discovers or determines that any representation or warranty made by Seller
in this Agreement or in any document executed in connection with this Agreement (the “Purchase
Documents”) is false or misleading, or (d) Seller breaches any covenant or agreement contained in
this Agreement or in any Purchase Document or is otherwise in default hereof. “Dispute,” as used
herein, means any dispute, deduction, claim, offset, defense or counterclaim of any kind pertaining
to the Receivable or to the goods or services giving rise thereto asserted by the party obligated
thereon, regardless of the final outcome or merit thereof. Upon Charge-Back of any Receivable,
Seller shall pay to Purchaser on demand an amount equal to the Gross Amount of the Receivable (the
face amount of the Receivable), less rebate of Discount, if any, less any payments made on such
invoice to Purchaser. Purchaser may, in its discretion, in addition to the right of setoff which is
hereby retained, subtract all or any portion of such amount from any refund, rebate or other
obligation owed by Purchaser to Seller, subtract such amount from the Purchase Price for the next
Receivable sold, or otherwise charge Seller for such amount. Upon Purchaser’s receipt of the amount
required by this Section, in collected funds, ownership of the Receivable shall re-vest in Seller,
subject to Purchaser’s security interest and rights of recoupment and/or setoff.

Section 3. Invoices; Collection; Power of Attorney.

If requested by Purchaser, Purchaser shall mail all invoices to Seller’s customers in each instance
relating to any Receivable and any other accounts receivable of Seller, and Seller shall provide
the original invoice and one copy to Purchaser ready for mailing to the customers. All invoices
relating to any Receivable and any other accounts receivable of Seller shall plainly state on their
face in language acceptable to Purchaser that the amounts payable thereunder are to be paid to a
post office box owned and controlled by Purchaser, to be provided by Purchaser. In the case of
electronic Receivables, if requested by Purchaser, and

 

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immediately upon demand, Seller shall provide Purchaser with access to Seller’s computer files and
databases, and all other records, including access to account payor databases (e.g. passwords,
links and entry to online billing programs), for the purposes of obtaining, identifying and
verifying information related to such Receivables. Additionally, If requested by Purchaser, Seller
agrees to furnish the original purchase order or other similar documents from Seller’s customer,
evidence of shipment of the related merchandise or performance of services rendered and a written
assignment of any Receivable, all in a form satisfactory to Purchaser. If requested by Purchaser,
all invoices relating to Receivables and any other accounts receivable shall plainly state on their
faces in language acceptable to Purchaser that the amounts payable thereunder have been assigned to
and are payable directly to Purchaser. If payment is made to Seller under any circumstance, such
payment shall be held in trust by Seller for Purchaser and shall not be negotiated or commingled in
any way with the Seller’s funds. Within three Business Days after receipt thereof, Seller shall
deliver any such payments to Purchaser in the original form as received by Seller, endorsed as
required by Purchaser. In the event that Seller fails to deliver to Purchaser any payment or
proceeds that it may receive with respect to any Receivable, within the three Business Day delivery
deadline provided herein, Seller will pay to Purchaser a Misdirected Payment Fee equal to fifteen
(15%) percent of the misdirected payment or proceeds, payable immediately upon its failure to
timely deliver such item or items. Said fee shall not be considered or construed as interest.
Seller’s agreement to pay such a fee and Purchaser’s acceptance of such a fee shall not be deemed a
waiver or acquiescence by Purchaser of Seller’s obligation to promptly deliver to Purchaser’s
possession all collections on all Receivables no later than the next Business Day, and pay all
other Obligations. The Misdirected Payment Fee, along with the misdirected payment or proceeds,
shall be due immediately to Purchaser without notice or demand, and the collection of this fee
shall be cumulative with all other remedies available to Seller in the collection of all
Obligations. Purchaser is hereby irrevocably authorized to open, cash, endorse and otherwise
collect all checks and other forms of payment tendered in payment of each Receivable and in payment
of any other accounts receivable, in the name of and as attorney-in-fact for Seller, and to direct
Seller’s customers to make payment to a different name and/or location. This power of attorney is
coupled with an interest.

Section 4. Recoupment Rights of Purchaser.

Regardless of whether Seller is in default under this Agreement, Purchaser shall have the right at
all times, in its discretion, to recoup all or any designated portion of the Obligations
(hereinafter defined) or any other amounts which Seller may owe to Purchaser in such a manner as
Purchaser may determine, at any time and without notice to Seller from:

(a) any and all deposits (general or special, time or demand, provisional or final) or other sums
at any time credited by or owing from Purchaser to Seller; and/or

(b) all or any portion of such amount from any refund, rebate or other obligation owed by Purchaser
to Seller.

The rights and remedies of Purchaser hereunder are in addition to other rights and remedies
(including, without limitation, to the rights of setoff) which Purchaser may have.

Furthermore, in order to satisfy any of the Obligations hereunder, Purchaser is hereby authorized
by Seller to initiate electronic debit or credit entries through the ACH system to any deposit
account maintained by Seller wherever located.

Section 5. Transfer of Related Interests.

In addition to the Receivables, Seller hereby sells, assigns, transfers, conveys and delivers to
Purchaser all other rights and interests (but not obligations) now or hereafter existing in
connection with the Receivables, including, but not limited to liens, security interests and
guarantees securing payment of the Receivables, Seller’s rights to access an account payor’s online
vendor billing system or other such electronic database (including rights to passwords, user names
and other similar rights), Seller’s interest in returned goods arising with respect to the
Receivables, and other rights and remedies of Seller related to the Receivables such as rights of
stoppage in transit, replevin, reclamation and lawsuits to collect the Receivables. If any
Receivable is ever represented by a promissory note or other written evidence of obligation, Seller
shall deliver the same to Purchaser duly endorsed by Seller to Purchaser.

Section 6. Further Assurances.

Seller agrees to execute and deliver to Purchaser such notices of assignment and other documents as
Purchaser may request to further document the sale and assignment of Receivables hereunder.

Section 7. No Obligation to Purchase Further Receivables.

Notwithstanding anything to the contrary contained herein, Seller specifically acknowledges and
agrees that Purchaser has the right to approve or reject future accounts receivable or other items
of any kind proposed for sale under this Agreement IN ITS SOLE DISCRETION, and no course of conduct
shall establish any commitment to purchase future accounts receivable or other items of any kind.

Section 8. Terms-Seller’s Customers.

Except as may otherwise be agreed to from time to time, the terms of all Receivables shall not
exceed thirty
(30) days. Seller shall not modify or vary the terms of sale, terms of payment, or location of
payment set forth in the invoice relating to any Receivable without Purchaser’s written consent.

 

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Section 9. Purchase Price; Discount.

The Purchase Price (herein so called) for the
Receivables shall be the Gross Amount of the Invoice minus the Discount. The “Gross Amount of the
Invoice” shall mean the total invoice amount, including any miscellaneous charges such as sales
taxes and delivery charges, less any early payment or special discounts offered to Seller’s
customer. “Discount” means 20% of the Gross Amount of the Invoice. The Purchase Price for any
Receivable shall be paid only after execution by Seller and acceptance by Purchaser of a Schedule
“A” covering such Receivable. The Discount shall be deemed fully earned upon purchase of each
Receivable in consideration of the overall manpower, effort and expense associated with Purchaser’s
performance hereunder, which Seller acknowledges is fair and reasonable consideration for the
Discount. Furthermore, Seller agrees to pay Purchaser a Minimum Monthly Discount Fee of seven
hundred fifty dollars and no cents ($750.00), beginning the first full month after entering into
this Purchase and Sale Agreement / Security Agreement and funding occurs, as well as a Minimum
Invoice Fee of $N/A. If, however, funding does not occur within 60 calendar days of execution of
the Agreement, the minimum monthly discount fee will nonetheless be paid by Seller and collected by
Purchaser for each month thereafter, as long as the Agreement is in force, and regardless of
whether or not funding occurs in any given month. Furthermore, a fee may be assessed for each
Schedule “A” that Seller requests to be expedited or funded the same day, to be deducted from that
Schedule “A”. A fee may be assessed for each Reserve disbursement that Seller requests to be
expedited or funded the same day, to be deducted from that Reserve disbursement. Seller will also
be charged a $1500.00 documentary fee, to be deducted from the first Schedule “A”, if not paid
prior to first funding. Quarterly audit fees may also be assessed, and deducted from Reserves. Said
fees shall not be considered or construed as interest. That said, following the first anniversary
from the date hereof, Purchaser will re-evaluate the audits and may, in its discretion, conduct
them semi-annually as opposed to quarterly. In any event, the audit fees passed on to Seller for
anyone particular audit shall not exceed $4,000.00, except in extraordinary circumstances.

Section 10. Rebate of Discount.

As an inducement for Seller to sell only invoices from which prompt payment can be expected,
Purchaser will remit a rebate of part of the Discount as follows (any such rebate being referred to
as a “Rebate” or “Rebate of Discount”):

If the Receivable is paid within 15 days of purchase by Purchaser, a rebate of 19.65% of the Gross
Amount of the Invoice LESS a Variable Discount Amount (“Variable Discount Amount”, defined below)
will be remitted to Seller;

If the Receivable is paid more than 15 days but not later than 30 days after the date of purchase
by Purchaser, a rebate of 19.40 % of the Gross Amount of the Invoice LESS a Variable Discount
Amount will be remitted to Seller;

If the Receivable is paid more than 30 days but not later than 45 days after the date of purchase
by Purchaser, a rebate of 19.15 % of the Gross Amount of the Invoice LESS a Variable Discount
Amount will be remitted to Seller;

If the Receivable is paid more than 45 days but not later than 60 days after the date of purchase
by Purchaser, a rebate of 18.90 % of the Gross Amount of the Invoice LESS a Variable Discount
Amount will be remitted to Seller;

If the Receivable is paid more than 60 days but not later than 75 days after the date of purchase
by Purchaser, a rebate of18.65 % of the Gross Amount of the Invoice LESS a Variable Discount Amount
will be remitted to Seller;

If the Receivable is paid more than 75 days but not later than 90 days after the date of purchase
by Purchaser, a rebate of 18.40 % of the Gross Amount of the Invoice LESS a Variable Discount
Amount will be remitted to Seller;

At Seller’s election, if the Receivable is paid more than 90 days but not later than 120 days after
the date of purchase by Purchaser, a rebate of 13.40% of the Gross Amount of the Invoice LESS a
Variable Discount Amount will be remitted to Seller;

The Rebate provided for Receivables paid after 90 or after 120 days from the date of purchase is in
no way to be construed as a waiver of Purchaser’s remedies upon Default or Dispute, should a rebate
be remitted on any invoice that is 90 days or more past due, and is not a waiver of Purchaser’s
Charge-Back rights.

The Variable Discount Amount shall be computed as Amegy Bank National Association Prime Rate (the
“Index”) plus 1.25%, multiplied by the Purchase Price of the Receivable, divided by 360, and
multiplied by the number of collection days. Being a general reference index, the Index is subject
to change from time to time as Amegy Bank National Association may deem appropriate. The Index
change will not occur more often than each day. The Index has a floor and at no time shall it be
less than 5.00% for the purposes of this Agreement. The Variable Discount Amount is subject to
change, with prior notice by telephone or facsimile notice from Purchaser to Seller. This amount
shall in no way be interpreted or construed as interest but only as a guideline to the Variable
Discount Amount charged.

 

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Section 11. Security Interest.

For the purpose of securing Purchaser (referred to in
this Section as “Secured Party”) in the payment of the Obligations (hereinafter defined), Seller
(referred to in this Section as “Debtor”) hereby grants a lien and security interest to Purchaser
in the assets described below, now owned or hereafter acquired by Seller (the “Collateral”), as
follows:

All now owned or hereafter acquired accounts, accounts receivable and inventory, including but not
limited to contracts, notes, drafts, acceptances, instruments, chattel paper, documents, money,
deposit accounts, payment intangibles, commercial tort claims, and returned or repossessed goods
arising from or relating to any such accounts or accounts receivable or inventory and other rights
arising from or by virtue of, or from the voluntary or involuntary sale or other disposition of, or
collections with respect to, or insurance proceeds payable with respect to, or proceeds payable by
virtue of warranty or other claims against any other person or entity with respect to all or any
part of the property heretofore described, and proceeds and products of any of the foregoing in any
form.

Terms used above have the meanings assigned in the Uniform Commercial Code as in effect in the
State of Texas (the “UCC”). Purchaser shall have all the rights and remedies provided to a secured
party under the UCC, including the right to file one or more financing statements, as further
described below. Seller and Purchaser agree that to the extent Purchaser exercises or is deemed to
exercise its rights under this Agreement as a secured party, Purchaser shall account for the
proceeds of the accounts receivable and Receivables, deal with the disposition of the accounts
receivable and Receivables, and permit Seller to redeem the accounts receivable and Receivables in
the same manner provided for elsewhere in this Agreement. Purchaser’s compliance with its
obligations regarding collection and/or disposition of Receivables and accounts receivable and
other rights which are described in this Agreement shall fulfill Purchaser’s duties and obligations
as a secured party pursuant to Sections 9.601 through 9.604 of the Texas Business and Commerce
Code. Purchaser shall not be deemed to accept the accounts receivable and Receivables in discharge
of Seller’s obligations to Purchaser unless Purchaser sends Seller express written notice of
Purchaser’s intent to do so. Seller hereby agrees not to grant a security interest, junior or
otherwise, or encumbrance of any kind, in the Collateral to any other entity without the prior
express written approval of Purchaser. In furtherance thereof, Purchaser may include the following
language on any UCC filing:

NOTICE -Pursuant to an agreement between Debtor and Secured Party, Debtor has agreed not to grant a
security interest in the Collateral, described herein and in any future commercial tort claims to
any other secured party. Accordingly, the acceptance of any such security interest by anyone other
than the above Secured Party is likely to constitute the tortious interference with Secured Party’s
rights.

In the event that any entity is granted a security interest in the Collateral in a manner contrary
to the above, the Secured Party asserts a claim to any proceeds thereof received by such entity.

Furthermore, Seller authorizes the Purchaser at any time and from time to time to file any initial
financing statements and amendments thereto that:

(a) indicate the Collateral as accounts of the Seller or words of similar effect, regardless of whether any particular asset comprised in the
Collateral falls within the scope of Article 9 of the UCC, or as being of an equal or lesser scope or with greater detail;

(b) contain any other information required by part 5 of Article 9 of the UCC for the sufficiency or filing office acceptance of
any financing statement or amendment, including (i) whether the Seller is an organization, the type of organization, and any organization
identification number issued to the Seller and, (ii) in the case of a financing statement filed as a fixture filing or indicating
Collateral as extracted collateral or timber to be cut, a sufficient description of real property to which the Collateral relates;

(c) contain a notification that the Seller has granted a negative pledge to the Purchaser, and that
any subsequent lienholder or potential secured party may be tortiously interfering with Purchaser’s
rights; and

(d) advises third parties that any notification of Seller’s account debtors will interfere with
Purchaser’s collection rights.

In recognition of the Purchaser’s right to have its attorneys’ fees and other expenses incurred in
connection with this Agreement secured by the Collateral, notwithstanding payment in full of all
Obligations by Seller, Purchaser shall not be required to record any terminations or satisfactions
of any of Purchaser’s liens on the Collateral unless and until Seller has executed and delivered to
Purchaser a general release in a form acceptable to Purchaser and substantially similar to that
Release attached hereto and made a part hereof as
Exhibit “A”. Seller understands that this provision constitutes a waiver of its rights under
Section
9.513 of the UCC.

 

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Seller shall maintain insurance on the Collateral and all other insurable property owned or leased
by Seller in the manner, to the extent and against at least such risks (in any event, including but
not limited to fife and business interruption insurance) as usually maintained by owners of similar
businesses and properties in similar geographic areas. All such insurance shall be in amounts and
form and with insurance companies acceptable to Purchaser in its sole discretion. Seller shall
furnish to Purchaser: (a) upon written request, any and all information concerning such insurance
carried; (b) as requested by Purchaser, loss payable endorsements (or their equivalent) in favor of
Purchaser. All policies of insurance shall provide for not less than thirty (30) day’s prior
written cancellation notice to Purchaser.

Notwithstanding the creation of a security interest herein, Purchaser shall not be a fiduciary of
Seller. The relationship of the parties hereto is that of Purchaser and Seller of accounts, and not
that of lender and borrower.

Regardless of the foregoing, Purchaser acknowledges that the following (and only the following)
prior permitted lien(s) exist:

VCC Financing Statement No. DE 2009 3372510; and

VCC Financing Statement No. CA 09-7206157097.

Section 12. Creation and Enforcement of Payment “Obligations”.

In the event that Purchaser determines in its sole discretion to Charge Back any Receivable(s) in
accordance with Section 2 of this Agreement, the amount of the Charge Back, together with any costs
incurred by Purchaser described in Section 34 of this Agreement, shall be an obligation secured by
the Security Interest contained in Section 11 of this Agreement. All of the obligations described
in this Section, as well as any other obligation of Seller to Purchaser whether created heretofore,
herewith or hereafter, are defined for purposes of this Agreement as Seller’s “Obligations”.

In the event of a Default under Section 13 of this Agreement the Obligations will bear interest in
accordance with Section 15 of this Agreement. Proceeds of disposition of the Collateral shall be
applied to pay the Obligations in the order specified in Texas Business and Commerce Code Section
9.615.

Section 13. Events of Default.

An “Event of Default” shall be deemed to exist under this Agreement in the event of any of the
following:

(a) any of the events specified in clauses (a) through (d) of Section 2 occur, regardless of
whether Purchaser has exercised any right to recoup or Charge-Back in connection with such event,
or in the event Purchaser in good faith deems itself insecure;

(b) Purchaser either does not have on hand or believes in good faith that Purchaser will not have
on hand sufficient funds of Seller to fully satisfy Seller’s Obligations;

(c) Dissolution, cessation or termination of Seller’s business, or should Seller’s business be
placed in receivership or bankruptcy;

(d) The loss, sale, levy, destruction, attachment, seizure or other encumbrance of the Collateral
should take place; or

(e) Seller defaults in the payment or performance of any other agreement now or hereafter entered
into with Purchaser.

The occurrence of any Event of Default under this Agreement shall be a “Default” which entitles
Purchaser to exercise any applicable rights and remedies under:

(a) any security interest granted to Purchaser to secure payment and performance of the obligations
of Seller hereunder; and

(b) all other applicable sections of this Agreement or any document executed in connection
herewith.

Section 14. Purchaser’s Remedies upon Seller’s Default.

In the event Seller is in Default, Purchaser shall have the right, in addition to any other right
or remedy available under applicable law, but not the obligation, in Purchaser’s own name, or in
the name of Seller, to take anyone or more of the following actions, simultaneously or in such
sequence as Purchaser shall determine in Purchaser’s sole discretion:

(a) exercise all recoupment or setoff rights which Purchaser may have under this Agreement or under
applicable law;

(b) require Seller to repurchase, for cash or cash equivalent, all or any part of the Receivables
sold to Purchaser under this Agreement for the Purchase Price plus
the Discount less: (l) any applicable rebates and (2) any payments or collections received on any
Receivable;

 

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(c) exercise
all the rights of a “Financing Agency” who has purchased the Receivables under UCC
Section 2.506;

(d) proceed, without additional notice to Seller, to foreclose under the Security Agreement and to
exercise all other legal and equitable remedies against any Guarantor or other person who may be
liable with Seller;

(e) exercise all other rights and remedies available to Purchaser.

Purchaser may use the Power of Attorney described in Section 3 of this Agreement in order to
exercise any of the remedies described in this Section, which are cumulative and not exclusive.

Section 15. Interest on Obligations.

All Obligations of Seller to Purchaser which become due and unpaid upon Seller’s Default pursuant
to Sections 13 and 14 of this Agreement shall bear interest at the rate of 16% (Sixteen per cent)
per annum. Interest will accrue on unpaid Obligations during the period beginning on the tenth day
following the date on which Purchaser makes demand on Seller to repurchase the Receivable(s) and
ending on the date the Obligations are fully satisfied.

Section 16. Verification of Receivables and Accounts; Collection by Purchaser.

Purchaser is authorized, but not obligated, to collect, sue for and give releases for all monies
due on all Receivables. Purchaser is authorized to contact Seller’s account debtors at any time for
purposes of verification or collection of each Receivable and any of Seller’s other accounts
receivable. Seller shall cooperate with Purchaser to the maximum extent possible to provide
information necessary for Purchaser to accomplish this verification or collection. Upon request by
Purchaser, Seller shall provide all information requested by Purchaser pertaining to Receivables
and other accounts receivable of Seller, including but not limited to copies of invoices, account
balances, and names and addresses of account parties. Before or after Default hereunder, as to both
Receivables and other accounts receivable of Seller, Purchaser is authorized to forward statements
and invoices directly to account debtors, and to direct that payment be made to Purchaser or any
other address designated. Seller agrees to furnish Purchaser, upon request, any and all papers,
documents or records of whatever nature related directly or indirectly to any Receivable and any
other account receivable of Seller, and to cooperate generally in all matters related to the
collection of Receivables. In the event any merchandise represented by a Receivable shall be
returned to or repossessed by Seller, such merchandise shall be held by Seller in trust for
Purchaser, separate and apart from the Seller’s own property, and subject to Purchaser’s directions
and control.

Section 17. Representations and Warranties of Seller.

Seller hereby represents, warrants and guarantees to Purchaser to the best of its knowledge as
follows:

(a) that the information contained in the application previously or hereafter submitted by Seller,
Seller’s financial statements and all other materials previously or hereafter submitted in
connection herewith are true, correct and complete in all respects;

(b) all federal, state and local tax returns and payments of any kind due or owing by Seller have
been timely filed and paid, and no part of the Purchase Price for any Receivable shall be used to
pay any wage or salary unless appropriate withholdings have been deposited;

(c) execution of Schedule “A” by Purchaser will thereby vest in Purchaser absolute ownership of
each Receivable free from any security interests, liens, claims or equities of third parties;

(d) Seller is the sole owner of and has good, free and unencumbered title to each Receivable and
the Collateral;

(e) execution and performance of this Agreement has been duly authorized by all necessary actions
and this Agreement and all the other documents executed in connection herewith are legal, valid and
binding obligations of Seller, enforceable against Seller in accordance with their terms;

(f) no other factoring, sale, assignment, lien, security interest or pledge exists against any
Receivable;

(g) each Receivable is based upon a bona fide sale of goods or services and represents a completed
delivery or completed furnishing of property or services in fulfillment of all the terms and
provisions of a fully executed and unexpired contract with the account debtor and is a valid and
enforceable obligation of the account debtor;

(h) each account debtor has accepted goods or services covered by the applicable Receivable;

(i) all Receivables are current, are not past due, have not been paid in whole or in part, are
outstanding in the amounts reflected in Schedule “A” and are not and will not be subject to any
dispute or claim as to price, quality, quantity, workmanship, delay in shipment, set off,
counterclaim or other defense;

 

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(j) no product or service was provided on a guaranteed-sale basis or “buy-back” agreement, and the
account debtor has not and will not claim any defense of any kind or character or object for any
reason whatsoever against payment of such Receivable;

(k) Seller’s chief executive office and the location where all books and records pertaining to each
Receivable are kept are at the address shown below for notice to Seller;

(l) Seller is solvent, properly licensed and authorized to operate its business under the name
designated herein, and is in good standing with and duly organized under the laws of the
jurisdiction under which it was organized or incorporated, and has the requisite authority to
transact business in each state in which it is engaged in business;

(m) Seller uses no trade name or pseudonym that has not been disclosed to Purchaser in writing;

(n) no petition in bankruptcy has been filed by or against Seller nor has Seller filed any petition
seeking an arrangement of its debts or for any other relief under the Bankruptcy Code of the United
States;

(o) that no application for appointment of a receiver or trustee for all or a substantial part of
Seller’s property is pending;

(p) Seller has made no assignment for the benefit of creditors;

(q) Seller does not own, control or exercise dominion over, in any way whatsoever, the business of
any account debtor on any Receivable;

(r) to the best of Seller’s knowledge, the account debtor is not insolvent or the subject of any
bankruptcy or insolvency proceeding and has not made an assignment for the benefit of creditors,
suspended normal business operations, dissolved, liquidated, terminated its existence, ceased to
pay its debts as they become due, or suffered a receiver or trustee to be appointed for any of its
assets or affairs;

(s) a financing statement in favor of Purchaser in a form provided by Purchaser is of record in all
jurisdictions and filing offices necessary or appropriate to perfect Purchaser’s ownership of the
Receivables, subject to no other filings, and there is not of record, in any jurisdiction or filing
office, any financing statement, notice of lien, tax lien, notice of assessment, assessment,
assignment, charge, or other instrument of any kind covering any Receivable;

(t) all Receivables arise from services rendered or products sold to commercial entities for
business purposes and not for personal, family, or household purposes;

(u) Seller is not in default in any material respect under any loan agreement, indenture, mortgage,
security agreement, or other material agreement or obligation to which it is a party or by which
any of its properties may be bound;

(v) there is no action, suit, investigation, or proceeding before any court, governmental
authority, or arbitrator pending, or to the knowledge of Seller, threatened against or affecting
Seller, that would, if adversely determined, have a material adverse effect on the financial
condition or operations of Seller;

(w) there are no outstanding judgments against Seller;

(x) all of Seller’s statements, representations and warranties contained in any applications or
other documents submitted to Seller in connection herewith are true, complete and correct in all
respects;

(y) the Collateral is not related to transactions involving the sale of farm products;

(z) each of the Receivables was generated incident to an arm’s length transaction with the party
responsible for payment of the Receivable, and none of the Receivables are related to sales to any
entity which is affiliated with Seller in any way;

(aa) each electronic Receivable has sufficient attendant documentation to verify that the goods
and/or services giving rise to the payment obligation were actually rendered or delivered, as the
case may be, even though the electronic Receivable may be “unbilled” and even though a paper
invoice may not have issued to the account payor; and

(bb) none of the receivables submitted to Purchaser for purchase on any Schedule “A” shall be
accounts wherein the account debtor is a customer of Seller that sells products or services to
Seller or that extends credit to Seller on any basis (“Contra Accounts”).

 

7

 

SELLER HAS CAREFULLY CONSIDERED THE REPRESENTATIONS AND WARRANTIES CONTAINED HEREIN AS THEY RELATE
TO EACH RECEIVABLE, AND UNDERSTANDS THAT ALL REPRESENTATIONS AND WARRANTIES MADE BY SELLER SHALL BE
DEEMED REAFFIRMED BY SELLER UPON EXECUTION OF EACH SUPPLEMENTAL SCHEDULE “A” HERETO. SELLER
ACKNOWLEDGES THAT ANY KNOWING OR RECKLESS ERROR OR OMISSION MADE BY SELLER IN THE REPRESENTATIONS
OR WARRANTIES MADE HEREIN MAY SUBJECT SELLER TO CIVIL AND CRIMINAL PENALTIES, IN ADDITION TO CIVIL
LIABILITY.

Section 18. Certain Covenants of Seller.

Seller covenants and agrees that it will not, without prior, written notice to Purchaser

(a) move either its chief executive office or the location where books and records pertaining to
the Receivables are kept to a location outside of Los Angeles County in the State of California;

(b) use any trade name;

(c) change its name;

(d) take or omit taking any actions that would render any of Seller’s representations and
warranties incorrect or incomplete;

(e) merge or consolidate with any other corporation or entity;

(f) dissolve or cease its operations as they are now conducted;

(g) take any action that would cause or induce any account debtor on any Receivable to fail to pay
the Receivable in a timely manner; or

(h) take any action that would result in any material change in ownership or operational control of
Seller.

Seller covenants that it will notify Purchaser in writing immediately upon the imposition or
assessment of any, tax lien, assessment or similar levy against Seller or any of Seller’s assets,
and upon any Dispute arising with respect to any Receivable.

Seller shall not at any time, without the prior written consent of Purchaser in each instance, take
any collection action with respect to the Receivables, including but not limited to the following
action, (a) granting any extension of time for payment of any of the Receivables, (b) compromising
or settling any of the Receivables for less than the full amount thereof, (c) releasing in whole or
in part any account debtor, or (d) granting any credits, discounts, allowances, deductions, return
authorizations or the like with respect to any of the Receivables.

Section 19. Other Accounts Receivable.

At the request of Purchaser, Seller shall agree to direct its customers or otherwise cause payments
relating to all other accounts receivable (whether purchased hereunder or not) to be directed to
Purchaser for processing. Purchaser shall have the right to facilitate this processing by taking
all actions necessary to cause all of Seller’s Receivables and any other accounts receivable to be
directed to Purchaser and Purchaser may use that Special Power of Attorney described in Section 3
for that purpose. Purchaser may, from time to time, with or without notice, subtract from any such
collections any charges or Obligations as defined in this Agreement. Purchaser shall show any
collections on the Collection Report (as defined in Section 20) and shall from time to time release
the amounts collected to Seller, subject to any charges thereto properly made by Purchaser.
Purchaser shall charge no additional consideration for such processing and shall bear no
responsibility or obligation in connection therewith.

Section 20. Reports.

Purchaser shall prepare and send to Seller by mail or by telephone facsimile or by other means of
delivery periodic reports of Purchases & Advances (herein so called) detailing the Receivables
purchased. Such reports shall detail the Purchase Price of each Receivable. By similar means,
periodic Collection Reports (herein so called) shall be sent to Seller at the discretion of
Purchaser detailing for a specific period Receivables collected or charged back and other accounts
receivable collected, other debits and credits called for in this Agreement, Discounts charged,
rebate of Discounts and, in general, the balance of any amounts owed to or from Seller. Seller is
aware that such balance is reported in the column titled “Reserve Refund” of each Collection Report
and that Reserve Refund has no meaning other than it serves as the title for such column. By
similar means, Reserve Account Reports (herein so called) may be sent to Seller (at the discretion
of Purchaser) accounting for the balance owing to or from Seller as derived from all debits and
credits made in connection with this Agreement.

Section 21. Resolution of Disputes; No Assumption of Liability by Purchaser.

Seller shall immediately notify Purchaser of the assertion by any account debtor of any Dispute.
Seller shall settle, at its own expense, all Disputes, subject to Purchaser’s approval, but
Purchaser shall have the right, in its discretion, to settle any Dispute directly with the account
debtor involved upon such terms as Purchaser may deem advisable and at Seller’s expense without
waiving Purchaser’s right to Charge-Back
any Receivable or to declare a Default, and any deficiency resulting from such settlement shall be
the responsibility of Seller.

 

8

 

Seller authorizes Purchaser to accept, indorse and deposit on behalf of Seller any checks tendered
by an account debtor “in full payment of its obligation to Seller. Seller shall not assert against
Purchaser any claim arising therefrom, irrespective of whether such action by Purchaser effects an
accord and satisfaction of Seller’s claims, under Section 3.311 of the UCC, or otherwise.

Seller specifically acknowledges and agrees that Purchaser is not assuming any liability or
obligation of any kind to Seller’s customers or in any way relating to the Receivables or any of
Seller’s other accounts receivable.

Section 22. SELLER’S INDEMNITY OF PURCHASER.

Seller hereby unconditionally and irrevocably, jointly and severally, agrees to indemnify, defend
and hold harmless Purchaser, its officers, servants, employees, agents, attorneys, principals,
directors, affiliates, shareholders, parents, subsidiaries, predecessors, successors, and assigns
(collectively, the “Indemnified Parties”) from and against any and all Losses (as hereinafter
defined) that any Indemnified Party may suffer, payor incur as a result of, arising from or
connected with any Claim (as hereinafter defined) threatened or asserted against any Indemnified
Party, by any person or entity.

For purposes hereof, “Claims” shall mean all, claims, demands, lawsuits, causes of action, choses
in action and other legal and administrative actions and proceedings of whatever nature or kind
threatened, brought, threatened or asserted against any Indemnified Party whether by reason or in
consequence of direct action, counterclaim, cross-claim, third party claim, intervention,
interpleader, or otherwise, even if groundless, false, meritless or fraudulent, and whether or not
caused directly or indirectly, by any error, omission, act or negligence of any Indemnified Party
so long as the claim, lawsuit, cause of action, chose in action or other legal action or proceeding
is alleged or determined, directly or indirectly, to arise out of, result from, relate to, or be
based upon, in whole or in part:

(i) the obligations, duties, responsibilities, activities, acts or omissions of any person or
entity, including any Indemnified Party, in connection with this Agreement or any Purchase
Document;

(ii) any relationship between any Indemnified Party and Seller (or any predecessor or
successor-in-interest to Seller); or

(iii) any matter whatsoever relating to any of the
Receivables, including, without limitation, the use, ownership, sale, conversion, disposition, or
collection of all or any portion of the Receivables (including compliance with laws).

For purposes hereof, “Losses” shall mean any losses, costs, damages, expenses, judgments,
liabilities, obligations and penalties of whatever nature or kind, including, without limitation,
attorneys’, accountants’ and other professional fees; litigation expenses and court costs and
expenses; amounts paid in settlement; amounts paid to discharge judgments, penalties, fines and
amounts payable to or incurred by any Indemnified Party to any other person or entity, directly or
indirectly, resulting from, arising out of or relating to one or more Claims.

In the event that Seller fails or refuses to defend any Indemnified Party as required herein, or
Seller fails or refuses to engage independent counsel to defend any Indemnified Party to avoid any
possible conflict of interest that results from joint representation of Seller and any Indemnified
Party by the same counsel, then, in such event, Indemnified Party, at its option, may engage
counsel to defend Indemnified Party and Seller consents, covenants and agrees to bear and pay all
such legal fees and related costs just as though Seller had incurred the same for its own account.

Section 23. Books and Records.

Seller agrees to permit Purchaser access to all books and records of the Seller including access to
computer files and databases, during normal business hours.

Section 24. Taxes.

All taxes and governmental charges imposed with respect to the sales of the goods related to the
Receivables shall be charged to Seller.

Section 25. Termination.

Seller and Purchaser recognize that future purchases of Receivables are to be made only with mutual
consent, through joint execution of a supplemental Schedule “A”. Accordingly, either party may
terminate this Agreement at any time as it relates to future Receivables. As to Receivables at any
time purchased, however, Seller may terminate this Agreement only upon thirty (30) days prior
written notice to Purchaser, and subject to the following terms: Purchaser shall not be obligated
to release its security interest and execute releases ofuee filings until twenty (20) Business Days
(hereinafter defined) after all Receivables and all other Obligations have been paid to Purchaser
in full. At such time, Purchaser shall also release to Seller the balance, if any, owed to Seller
as derived from all debits and credits made in connection with this Agreement. Termination of this
Agreement shall not terminate any of Seller’s other liabilities or obligations hereunder, including
but not limited to any obligations that may arise under Seller’s indemnification obligation
described above. Should Seller fail to give Purchaser the requisite thirty (30) days written notice
prior to termination as provided for herein, Seller shall pay to Purchaser a termination fee equal
to the sum of (a) the average minimum monthly discount fee collected over the previous calendar
quarter, plus (b) the average minimum monthly invoice fee collected over the previous calendar
quarter. As used in this Agreement, the term “Business Day” means any day on which commercial banks
are not authorized or required to close in Houston, Texas.

 

9

 

Section 26. Waiver.

Any failure by Purchaser to exercise any of its rights hereunder shall not be deemed to be a waiver
by Purchaser of such or any other rights, nor in any manner impair the subsequent exercise of the
same or any other right, and any waiver by Purchaser of any Event of Default or Default shall not
constitute a waiver of any subsequent Event of Default or Default.

Section 27. Choice of Law; Venue, Service of Process.

This Agreement shall be construed according to the laws of the State of Texas, and shall be wholly
performable in Harris County, Texas. Any action or proceeding against Seller under or in connection
with this Agreement or any of the Purchase Documents may be brought in any state or federal court
in Harris County, Texas, and Seller hereby irrevocably submits to the nonexclusive jurisdiction of
such courts and waives any objection it may now or hereafter have as to the venue of any such court
as an inconvenient forum. Seller agrees that service of process upon it may be made by certified or
registered mail, return receipt requested, at its office specified in this Agreement, regardless of
whether said notice is claimed or received by Seller. Nothing herein or in any of the Purchase
Documents shall affect the right of Purchaser to serve process in any other manner permitted by law
or shall limit the right of Purchaser to bring any action or proceeding against Seller or with
respect to any of its property in courts in other jurisdictions. Any action or proceeding by Seller
against Purchaser shall be brought only in a court located in Harris County, Texas.

Section 28. WAIVER OF JURY TRIAL.

EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR ANY OTHER PURCHASE DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY 0NHETHER BASED ON CONTRACT, TORT OR ANY OTHER LEGAL THEORY). EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PESON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER PURCHASE DOCUMENTS BY, AMONG OTHER THINGS, THE
MUTUAL WANERS AND CERTIFICATIONS IN THIS SECTION.

Section 29. Assignment; Successors and Assigns.

Purchaser may from time to time assign its rights under this Agreement, and the assignee shall be
entitled to all of the rights and remedies of Purchaser under this Agreement, including its rights
as a secured party. This Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective administrators, legal representatives, successors and assigns; however,
Seller may not assign its obligations or rights under this Agreement without the written consent of
Purchaser.

Section 30. Severability.

If any provision of this Agreement shall, for any reason, be held to violate any applicable law,
then the remaining portion of this Agreement shall remain in full force and effect.

Section 31. Headings, Construction.

The headings contained in this Agreement are for reference purposes only and shall not modify or
affect the terms of this Agreement in any manner.

Section 32. Saturday, Sunday or Legal Holiday.

If any day provided in this Agreement for the performance of any obligation should fall on a day
which is not a Business Day, the compliance with such obligation or delivery shall be deemed
acceptable on the next Business Day following such day.

Section 33. Notices.

Any notice, demand or request permitted, required or desired to be given under this Agreement shall
be in writing and shall be deemed effectively given when actually hand delivered, when sent by
facsimile to the number set forth below for each party or when sent by United States certified or
registered mail, return receipt requested, postage prepaid, or sent by private, receipted carrier
guaranteeing same-day or next-day delivery, addressed as follows:

If to Purchaser:

Amegy Bank National Association

Accounts Receivable Finance Division

P.O. Box 27459 Houston, Texas 77227-7459

Attention: Brad Galland

Telephone No.: (713) 235-8800

Fax No.: (713) 232-2542

 

10

 

If to Seller:

HERE MEDIA INC., HERE PUBLISHING INC., PLANETOUT INC., HERE NETWORKS L.L.C.

10990 Wilshire Blvd., Penthouse

Los Angeles, CA 90024

Attention: Paul Colichman

Telephone No.: 310-806-4288

Fax No.: ____________

Section 34. Costs of Enforcement.

In the event of any default or breach by Seller under this Agreement, or any portion hereof,
whether or not such enforcement becomes necessary by reason of a breach or default by Seller and/or
in the event it becomes necessary for Purchaser to employ an attorney and incur other expenses to
collect any Receivable or Obligation, Seller agrees to pay to Purchaser on demand, from time to
time as such amounts are incurred by Purchaser, an amount or amounts equal to all fees, expenses,
attorneys’ fees and costs incurred by Purchaser including but not limited to court costs and
reasonable attorneys’ fees. The costs described in this section may become Obligations under
Section 12 of this Agreement. Furthermore, Seller agrees to reimburse Purchaser on demand for the
actual amount of all costs and expenses, including attorneys’ fees, which Purchaser has incurred or
may incur in:

(a) negotiating, preparing, or administering this Agreement and any documents prepared in
connection herewith, all of which shall be paid contemporaneously with the execution hereof or upon
demand;

(b) any way arising out of this Agreement;

(c) protecting, preserving or enforcing any lien, security interest or other right granted by
Seller to Purchaser or arising under applicable law, whether or not suit is brought, including but
not limited to the defense of any claims or Disputes; and

(d) complying with any subpoena or other legal process attendant to any litigation in which Seller
is a party, including photocopying and travel expenses.

Section 35. Nature of Charges.

The Discounts, any additional Discounts, and commissions or other charges payable hereunder
constitute consideration for Purchaser’s services provided hereunder in connection with making
credit investigations, supervising the ledgering of accounts purchased, supervising the collection
of the accounts purchased, assuming certain risks and other services provided by Purchaser
hereunder. Nothing contained herein shall be construed to require the payment of interest for the
use, forbearance, or detention of money (except with respect to the interest that may be charged by
Purchaser under Section 15) ; however, should a court of competent jurisdiction rule that any part
of Purchaser’s discounts, additional discounts, and factoring commissions or any other charges
hereunder are in fact or in law to be treated as interest on funds advanced, in no event shall
Seller be obligated to pay that interest at a rate in excess of the maximum amount permitted by
law, and all agreements, conditions, or stipulations contained herein, if any, which may in any
event or contingency whatsoever operate to bind, obligate, or compel Seller to pay a rate of
interest exceeding the maximum rate of interest permitted by law shall be without binding force or
effect at law or in equity to the extent only of the excess of interest over such maximum rate of
interest permitted by law. Also in such event, Purchaser may “spread” all charges characterized as
interest over the entire term of all transactions with Seller and may refund to Seller the excess
of any payments made over the highest lawful rate. It is the intention of the parties hereto that
in the construction and interpretation of this Agreement, this paragraph shall be given precedence
over any other agreement, condition, or stipulation herein contained which is in conflict with
same.

Section 36. Equitable Subrogation.

To the extent that Purchaser advances proceeds under this Agreement to Seller that are used to pay
any prior indebtedness secured by any outstanding lien, security interest, charge or prior
encumbrance against, in, on or to the Receivables, then such proceeds shall have been advanced by
Purchaser at Seller’s request; and Purchaser shall be fully subrogated to any and all rights,
titles, interests, powers, equities, liens, encumbrances, and security interests (collectively
“Liens”) owned or granted by any owner or holder of such Liens, irrespective of whether said Liens
are released of record, or otherwise, and all of said Liens shall fully inure to the benefit of
Purchaser.

Section 37. Facsimile.

Seller agrees that any executed facsimile (faxed) copy of documents received by Purchaser relating
to this agreement, including but not limited to Schedules A, Invoices or Bills of Lading, shall be
deemed to be of the same force and effect as the original, manually executed documents.

 

11

 

Section 38. Joint and Several Obligations.

If more than one party is executing this Agreement as Seller, each party agrees that its
obligations hereunder are joint and several. Each party constituting Seller agrees and warrants to
Purchaser that (a) the
value of the consideration received and to be received by it as a result of its liability on the
obligations of each other Seller is reasonably worth at least as much as the liability and
obligation it has hereunder, and
(b) such liability and obligation may reasonably be expected to benefit it, directly or indirectly.
Each party constituting Seller specifically agrees that execution by anyone of them of any Schedule
A, bill of sale, or other instrument executed in connection herewith shall be deemed the fully
authorized act of each party constituting Seller, jointly and severally binding upon each.

Section 39. Obligations Absolute.

Seller and (if more than one party) each party constituting Seller agrees that its obligations
shall not be released, diminished, impaired or affected by the occurrence of anyone or more of the
following events, all of which may occur without notice to or consent of any other Seller:

(a) Any release, partial release, subordination or loss of any security, guaranty or collateral at
any time existing in connection with the obligations contained herein;

(b) The death, insolvency, bankruptcy, disability or incapacity of any Seller, any guarantor, or
any other party now or hereafter obligated hereon;

(c) Any renewal, extension, and/or rearrangement of all or any portion of the obligations contained
herein;

(d) Any neglect, delay, omission, failure or refusal of Purchaser to take or prosecute any action
for the collection of the obligations provided herein;

(e) The unenforceability for any reason of all or any part of the obligations contained herein
against any Seller, guarantor or other party;

(f) The finding of any payment by any Seller to constitute a preference under bankruptcy or similar
debtor relief law;

(g) Any release or partial release of liability of any Seller, guarantor or other party; or

(h) Any other action that might impair rights in the nature of contribution or subrogation that any
Seller might otherwise have.

Section 40. Seller’s Waiver of Notice.

Seller hereby waives notice of nonpayment of any Receivables as well as all other notices, demands
or presentations for payment, or acts of recoupment or setoff, under this Agreement. Seller further
agrees that Purchaser may extend, modify or renew from time to time the payment of any Receivable
without notice to or consent by Seller.

Section 41. Entire Agreement; Amendment.

This Agreement and the other instruments executed and delivered by Seller and Purchaser in
connection herewith represents and embodies the final, entire agreement between the parties hereto
and supersedes any and all prior commitments, agreements, representations and understandings,
whether written or oral relating to the subject matter hereof and may not be contradicted or varied
by evidence of prior, contemporaneous or subsequent oral agreements or discussions of the parties
hereto. There are no oral agreements between the parties hereto. The provisions of this Agreement
may not be amended or modified except by a written instrument executed by Purchaser and Seller.

Section 42. Release of Liability.

Seller hereby releases and exculpates Purchaser, its officers, employees, attorneys and designees,
from any liability arising from any acts under this Agreement or in furtherance thereof whether of
omission or commission, and whether based upon any error of judgment or mistake of law or fact,
except for willful misconduct. In no event will either party have any liability to the other party
for lost profits or other special or consequential damages. Without limiting the generality of the
foregoing, Seller releases Purchaser from any claims which Seller may now or hereafter have arising
out of Purchaser’s endorsement and deposit of checks issued by Seller’s customers stating that they
were in full payment of an account, but issued for less than the full amount which may have been
owed on the account.

Section 43. Conflict.

Unless otherwise expressly stated in any other agreement between Purchaser and Seller, if a
conflict exists between the provisions of this Agreement and the provisions of such other
agreement, the provisions of this Agreement shall control.

Section 44. Nature of Agreement.

Seller and Purchaser have, for purposes of Chapter 306 of the Texas Finance Code, characterized the
sale of Receivables and Related Interests by Seller to Purchaser pursuant to this Agreement as a
purchase and sale transaction, and not a transaction for the use, forbearance or detention of
money.

 

12

 

DATED this 14th day of December, 2009

	 	 	 	 	 
	 	PURCHASER:

AMEGY BANK NATlONAL ASSOCIATlON

 	 
	 	Signed by  	Brad Galland
 	 
	 	 	Name:  	Brad Galland 	 
	 	 	Title:  	Assistant Vice President 	 
	 
	 	SELLER: HERE MEDIA INC.

 	 
	 	Signed by  	Paul Colichman
 	 
	 	 	Name:  	Paul Colichman 	 
	 	 	Title:  	President 	 
	 
	 	SELLER: HERE PUBLISHING INC.

 	 
	 	Signed by  	Paul Colichman
 	 
	 	 	Name:  	Paul Colichman 	 
	 	 	Title:  	President 	 
	 
	 	SELLER: PLANETOUT INC.

 	 
	 	Signed by  	Paul Colichman
 	 
	 	 	Name:  	Paul Colichman 	 
	 	 	Title:  	President 	 
	 
	 	SELLER: HERE NETWORKS L.L.C.

 	 
	 	Signed by  	Paul Colichman
 	 
	 	 	Name:  	Paul Colichman 	 
	 	 	Title:  	President 	 

 

13

 

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES

Before me, Helene Nielsen Beal, a notary public, on this day personally appeared

Paul Colichman (name), the ____________ (title)
of Seller, who proved to me on the basis of
satisfactory evidence to be the person whose name is subscribed to the foregoing instrument and
acknowledged to me that he executed the same for the purposes and consideration therein expressed.

Given under my hand and seal of office this 14th day of December, 2009.

Signed by Helene Nielsen Beal

Notary Public — State of California

	 	 	 	 	 
	 

	 	(seal) HELENE NIELSEN BEAL
	 	 
	 

	 	Commisson # 1868129
	 	 
	 

	 	Notary Public • California	 	 
	 

	 	Los Angeles County	 	 
	 

	 	Comm. Expires Oct 28, 2013	 	 

 

14exv10w28

EXHIBIT 10.28

EMPLOYMENT AGREEMENT

     THIS AGREEMENT, is made as of this 29th day of October, 2007, by and between
ABITIBIBOWATER INC., a Delaware corporation having a mailing address of 1155 Metcalfe Street, Suite
800, Montreal, Quebec Canada H3B 5H2 (the “Corporation”), and William G. Harvey, 1 Rugosa Way,
Greer, SC 29681 (the “Executive”).

     WHEREAS, the Corporation desires to employ the Executive as Senior Vice President and Chief
Financial Officer of the Corporation; and

     WHEREAS, the Executive is desirous of serving the Corporation in such capacity;

     NOW, THEREFORE, the parties hereto agree to enter into an Employment Agreement as follows:

     1. Employment. During the term of this Agreement, the Corporation agrees to employ
the Executive and the Executive agrees to be in the employ of the Corporation, in accordance with
and subject to the provisions of this Agreement.

     2. Term.

	 	(a)	 	Subject to the provisions of subparagraphs (b) and (c) of
this Section 2, the term of this Agreement shall begin on the date hereof
and shall continue thereafter until terminated by either party by written
notice given to the other party at least thirty (30) days prior to the
effective date of any such termination. The effective date of the
termination shall be the date stated in such notice, provided that if the
Corporation specifies an effective date that is more than thirty (30) days
following the date of such notice, the Executive may, upon thirty (30) days’
written notice to the Corporation, accelerate the effective date of such
termination
	 
	 	(b)	 	Notwithstanding Section 2(a), the term of this Agreement
shall end upon:

	 	(i)	 	the death of the Executive;
	 
	 	(ii)	 	the inability of the Executive to perform
his duties properly, whether by reason of ill-health, accident or
other cause, for a period of one hundred and eighty (180)
consecutive days or for periods totaling one hundred and eighty
(180) days occurring within any twelve (12) consecutive calendar
months; or
	 
	 	(iii)	 	the Executive’s retirement.

 

 

     3. Position and Duties. Throughout the term hereof, the Executive shall be employed
as Senior Vice President and Chief Financial Officer of the Corporation, with the duties and
responsibilities customarily attendant to that office and which the executive fulfilled as the
Chief Financial Office of Bowater Incorporated, provided that the Executive shall undertake such
other and further assignments and responsibilities of at least comparable status as the Board of
Directors may direct. The Executive shall diligently and faithfully devote his full working time
and best efforts to the performance of the services under this Agreement and to the furtherance of
the best interests of the Corporation

     4. Place of Employment. The Executive will be employed at the Corporation’s offices
located in Greenville, South Carolina (prior to relocation) or Montreal, Quebec, Canada, or at such
other place as the Corporation shall designate from time to time.

     5. Compensation and Benefits.

	 	(a)	 	Base Salary. The Corporation shall pay to the
Executive a base salary of U.S.$425,000 payable in substantially equal
periodic installments on the Corporation’s regular payroll dates. The
Executive’s base salary shall be reviewed by the Board of Directors and from
time to time may be increased (or reduced, if such reduction is effected
pursuant to across-the-board salary reductions similarly affecting all
management personnel of the Corporation).
	 
	 	(b)	 	Incentive Plans.

	 	(i)	 	Annual Incentive Plan. In
addition to his base salary, the Executive shall be eligible receive
an annual incentive award with a target level of 70% of base salary
under the Corporation’s annual incentive plan in effect from time to
time determined in the manner, at the time, and in the amounts set
forth under such plan.
	 
	 	(ii)	 	Stock-Based Incentive
Compensation. Subject to the approval of the Board of
Directors, the Executive shall be eligible for an annual award under
a stock-based incentive program, as modified from time to time, and
for so long as such program continues.

	 	(c)	 	Benefit Plans. The Corporation shall make
contributions on the Executive’s behalf to the various benefit plans and
programs of the Corporation in which the Executive is eligible to
participate in accordance with the provisions thereof as in effect from time
to time.
	 
	 	(d)	 	Vacations. The Executive shall be entitled to
paid vacation in keeping with the Corporate policy as in effect from time to
time, to be taken at such time or times as may be approved by the
Corporation.

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	 	(e)	 	Expenses. The Corporation shall reimburse the
Executive for all reasonable expenses properly incurred, and appropriately
documented, by the Executive in connection with the business of the
Corporation.
	 
	 	(f)	 	Perquisites. The Corporation shall make
available to the Executive all perquisites to which he is entitled by virtue
of his position.

     6. Nondisclosure. During and after the term of this Agreement the Executive shall
not, without the written consent of the Board of Directors of the Corporation, disclose or use
directly or indirectly (except in the course of employment hereunder and in furtherance of the
business of the Corporation or any its subsidiaries and affiliates) any of the trade secrets or
other confidential information or proprietary data of the Corporation or its subsidiaries or
affiliates; provided, however, that confidential information shall not include any information
known generally to the public (other than as a result of unauthorized disclosure by the Executive)
or any information of a type not otherwise considered confidential by persons engaged in the same
or similar businesses.

     7. Noncompetition. During the term of this Agreement and for a period of one (1) year
after the date the Executive’s employment terminates, the Executive shall not, without the prior
approval of the Board of Directors of the Corporation or its delegate, in the same or a similar
capacity engage in or invest in, or aid or assist anyone else in the conduct of any business (other
than the businesses of the Corporation and its subsidiaries and affiliates) which directly competes
with the business of the Corporation and its subsidiaries and affiliates as conducted during the
term hereof. If any court of competent jurisdiction shall determine that any of the provisions of
this Section 7 shall not be enforceable because of the duration or scope thereof, the parties
hereto agree that said court shall have the power to reduce the duration and scope of such
provision to the extent necessary to make it enforceable and this Agreement in its reduced form
shall be valid and enforceable to the extent permitted by law. The Executive acknowledges that the
Corporation’s remedy at law for a breach by the Executive of the provisions of this Section 7 will
be inadequate. Accordingly, in the event of the breach or threatened breach by the Executive of
this Section 7, the Corporation shall be entitled to injunctive relief in addition to any other
remedy it may have. To the extent that the Executive is subject to any other noncompete
obligations that are more restrictive than those described above, such more restrictive obligations
will apply.

     8. Severance Pay. (a) If the Executive’s employment hereunder is involuntarily
terminated for any reason other than those set forth. in Section 2(c) hereof including
for “Good Reason” as defined below, then the Corporation shall pay the Executive severance pay in
an amount equal to twenty-four (24) months of the Executive’s base salary on the effective date of
the termination, plus 1/12 of the amount of the last bonus paid to the Executive under the
Corporation’s annual incentive plan as applicable to the Executive, for each month in the period
beginning on January 1 of the year in which the date of the termination occurs and ending on the
date of the termination and for each months’ base salary to which the Executive is entitled under
this Section 8.

     (b) The Executive shall have the right to terminate this Agreement for “Good Reason” and
receive the severance pay described above. In addition, if the Executive exercises the right to
terminate for Good Reason as defined in Section 8(d)(vi),

3

 

he shall be entitled to (i) the full benefits of the Corporation’s relocation policy as in
effect on such date if he relocates within six (6) months following the termination of his
employment and (ii) he shall not be required to re-pay any amounts paid to him under the relocation
policy in connection with his move to Montreal or awarded to him as a bonus in connection with his
pre-merger activities.

     (c) For purposes of this Agreement, the term for “Cause” shall mean because of gross
negligence or willful misconduct by the Executive either in the course of his employment hereunder
or which has a material adverse effect on the Corporation or the Executive’s ability to perform
adequately and effectively his duties hereunder.

     (d) For purposes of this Agreement, the term for “Good Reason” shall mean: (i) a reduction by
the Corporation in the Executive’s Base Salary or target bonus unless such reduction is effected
pursuant to across-the-board salary or bonus reductions similarly affecting all management
personnel of the Corporation, (ii) a material diminution in the Executive’s titles, duties or
responsibilities, (iii) a change in Executive’s reporting lines such that he no longer reports to
the Chairman of the Board (unless his reporting line is changed so that he reports to the Chief
Executive Officer), (iv) an unconsented relocation of Executive’s principal place of work to a
location more than thirty (30) miles from the initial locations referred to in Section 4, (v) the
failure of a successor to expressly assume this Agreement, or (vi) for a period of twenty-four
months following the effective date of this Agreement, for failure to provide an acceptable work
environment as determined in the Executive’s sole discretion; provided, that for a
termination for Good Reason under Clauses (i), (ii), (iii), or (v), the Executive shall have
provided the Corporation with written notice, and the Corporation shall fail to cure the basis for
Good Reason within twenty (20) days of such notice.

     (e) The severance pay shall be paid in a lump sum as soon as administratively feasible
following the executive’s effective date of termination, but in no event shall payment be made
later than March 15 following the calendar year of the Executive’s termination from employment,
unless otherwise required by Internal Revenue Code Section 409A or guidance issued thereunder. The
severance pay shall be in lieu of all other compensation or payments of any kind relating to the
termination of the Executive’s employment hereunder; provided that the Executive’s entitlement to
compensation or payments under the Corporation’s (or any affiliate’s) retirement plans, stock-based
incentive plans, savings plans, or bonus plans attributable to service rendered prior to the
effective date of the termination shall not be affected by this clause and shall continue to be
governed by the applicable provisions of such plans; and further provided that in lieu hereof, at
his election, the Executive shall be entitled to the benefits of the Change in Control Agreement
between the Corporation and the Executive; if termination occurs in a manner and at a time when
such Change in Control Agreement is applicable.

     9. Notices. Any notices required or permitted to be given under this Agreement shall
be in writing and shall be deemed to have been given when delivered or mailed, by registered or
certified mail, return receipt requested to the respective addresses of the parties set forth
above, or to such other address as any party hereto shall designate to the other party in writing
pursuant to the terms of this Section 9.

     10. Severability. The provisions of this Agreement are severable, and the invalidity
or unenforceability of any provision shall not affect the validity or enforceability of any other
provision.

4

 

     11. Governing Law. This Agreement shall be governed by and interpreted in accordance
with the substantive laws of the State of Delaware.

     12. Supersedure. This Agreement shall cancel and supersede all prior agreements
relating to employment between the Executive and the Corporation or its predecessor.

     13. Waiver of Breach. The waiver by a party of a breach of any provision of this
Agreement shall not operate or be construed as a waiver of any prior or subsequent breach by any of
the parties hereto.

     14. Binding Effect. The terms of this Agreement shall be binding upon and inure to
the benefit of the successors and assigns of the Corporation and the heirs, executors,
administrators and successors of the Executive, but this Agreement may not be assigned by the
Executive.

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

	 	 	 	 	 	 
	ABITIBIBOWATER INC.

 	 	 
	By:  	/s/ James T. Wright 	 	/s/ William G. Harvey 
	 	James T. Wright                           	 	William G. Harvey  
	 	Sr. Vice President — Human Resources 	 
	 

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