Document:

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                                                                   Exhibit 10.10

                          AMERICOM-6 KU-BAND SATELLITE

                       BARE TRANSPONDER SERVICE AGREEMENT

         THIS  AGREEMENT  between SES Americom,  Inc., as agent for SES Americom
Colorado,  Inc., and Rainbow DBS Company, LLC ("Customer"),  a limited liability
company  organized under the laws of Delaware,  is made effective as of the date
of the last  signature  below.  All  references to "SES  Americom"  herein shall
include  both SES  Americom  Colorado,  Inc.  and SES  Americom,  Inc.  as agent
therefor.  Defined  terms used in this  Agreement  have the  meanings  specified
herein.

ARTICLE 1. SERVICE PROVIDED

A. SCOPE.

         (1) SES Americom  will provide to Customer Bare  Transponder  Protected
Service on the Americom-6  ("AMC-6") Satellite  ("Service"),  with the number of
Transponders as specified below. Service will be provided in accordance with the
terms  and  conditions  set  forth in this  Agreement,  including  Attachment  A
(Transponder  Performance  Specifications),  Attachment B (Commercial Operations
System  User's  Guide),  Attachment  C (Form of Letter of Credit),  Attachment D
(Form of Parent  Guaranty),  Attachment E  (Operational  Report  Elements),  and
Attachment F (Methodology for Determining MRC) (collectively,  the "Agreement").
Subject to Section 4.A, the  Satellite is authorized to be and is located at the
72(degree)  W.L.  orbital  position.  Subject to Section 4.A, the Satellite may,
however,  be located at any other orbital position  hereafter  authorized by the
FCC.  Technical  performance  criteria for the  Satellite  are  described in the
Transponder   Performance   Specifications   set  forth  in  Attachment  A.  The
transponder  assignments  are as  described  below and will be  changed  only in
accordance with this Agreement.

         (2) The Service will commence on October 1, 2004, on the first group of
thirteen  (13)  Transponders  ("Transponder  Group 1").  *** All other terms and
conditions of this Agreement shall apply to such Service.

         (3) The Service will  commence on January 1, 2005,  on the second group
of three (3) Transponders  ("Transponder Group 2"). SES Americom will assign the
Transponders  in  Transponder  Group 2 no later than two (2) months prior to the
commencement date of Service for Transponder Group 2.

         (4) Customer has the option to elect  Service on a third group of three
(3) Transponders  ("Transponder  Group 3"),  provided that Customer has notified
SES Americom in writing of its  election of this option on or before  January 1,
2005.  Service  on each  Transponder  in  Transponder  Group 3 is subject to SES
Americom  making each such  Transponder  available for Service.  If elected (and
subject  to the  prior  sentence),  the  Service  for  Transponder  Group 3 will
commence on a date or dates to be mutually  agreed by SES  Americom and Customer
(which  date  shall be no later than  January  1,  2006).  The  Transponders  in

***  Certain  confidential  portions of this  exhibit  were  omitted by means of
     redacting  a portion  of the text.  Copies of the  exhibit  containing  the
     redacted  portions  have been  filed  separately  with the  Securities  and
     Exchange  Commission  subject  to  a  request  for  confidential  treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act.

<PAGE>

Transponder  Group 3 will be  identified  at least  sixty (60) days prior to the
agreed upon  Service  commencement  date and in no event  later than  October 1,
2005.

         (5) Customer has the option to elect Service on a fourth group of up to
five (5)  Transponders  ("Transponder  Group 4"),  provided  that  Customer  has
notified SES Americom in writing of its desire to elect this option on or before
January 1, 2006,  which notice  shall  specify how many of the  Transponders  in
Transponder  Group 4  Customer  wishes to use.  Service on each  Transponder  in
Transponder  Group 4 elected by Customer is subject to SES Americom  making each
such  Transponder  available  for Service.  Upon receipt of  Customer's  written
notice electing its option to take Service on Transponder  Group 4, SES Americom
will  undertake  to  determine  whether  the number of  Transponders  desired by
Customer will be available for Service *** On or before April 1, 2006, Customer
shall provide  written notice to SES Americom of its election to take Service on
one or more of the  Transponders  which  SES  Americom  informed  Customer  were
available.   If  elected,  the  Service  for  Transponder  Group  4  as  to  the
Transponder(s)  elected by Customer  and made  available  by SES  Americom  will
commence on a date or dates to be mutually  agreed by SES  Americom and Customer
(which  date  shall be no later than  January  1,  2007).  The  Transponders  in
Transponder  Group 4 will be  identified  at least  sixty (60) days prior to the
agreed upon  Service  commencement  date and in no event  later than  October 1,
2006.

B. TERM. The term for Service  ("Service Term") on Transponder  Group 1 provided
under this  Agreement  shall  commence  on  October  1, 2004 (the  "Commencement
Date"),  except for those Transponders for which the Commencement Date is August
1, 2004 pursuant to Section 1.A(2). The Service Term for Transponder Groups 2, 3
and  4  shall  commence  as  specified  in  Sections   1.A.(3),   (4)  and  (5),
respectively. The Service Term for all Transponder Groups and for this Agreement
shall end,  except as  otherwise  provided  herein,  on the earliest of: (1) the
End-of-Life  or Replacement  Date of the  Satellite;  (2) the date the Satellite
becomes a Satellite Failure; (3) with respect to any particular Transponder, the
date  the  Transponder  on  which  Service  is  provided   hereunder  becomes  a
Transponder  Failure  and cannot be  restored;  or (4)  September  30, 2014 (the
"Projected  Termination  Date").  If SES Americom  intends to provide service on
Ku-band  transponders  after the end of the Service Term on the Satellite,  then
Customer  will have a right of first refusal to extend the Service Term on terms
and  conditions  to be mutually  agreed by the parties,  provided  that Customer
shall  notify SES  Americom in writing of its desire to extend the Service  Term
not later than twenty-four (24) months prior to the Projected  Termination Date.
The parties will negotiate in good faith  exclusively  for a period of three (3)
months following such notice by Customer,  and if no agreement is reached during
such  period  then the  parties  shall  have no further  obligations  under this
Agreement regarding Service after the end of the Service Term.

C. SERVICE PRIORITIES. SES Americom shall promptly take all steps stated in this
Section,  consistent  with  protecting  the Satellite and all services  provided
thereon,  to  restore  any of  Customer's  affected  Transponders  as quickly as
possible should such Transponder(s)  become a Transponder  Failure.  Restoration
shall  be  effected  in the  following  manner  and  order,  on a  first-needed,
first-served basis: first, by utilizing any available Replacement Transponder on
the

                                      -2-

***  Certain  confidential  portions of this  exhibit  were  omitted by means of
     redacting  a portion  of the text.  Copies of the  exhibit  containing  the
     redacted  portions  have been  filed  separately  with the  Securities  and
     Exchange  Commission  subject  to  a  request  for  confidential  treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act.

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Satellite;  and second, if no such Replacement  Transponder is available, by
using a  Preemptible  Transponder  on the  Satellite,  if  available  (E.G.,  if
Customer is taking service on twenty-four (24) Transponders,  then there will be
no Preemptible  Transponder).  If no such Protection Transponder is available on
the Satellite, Customer's Service shall not be restored. If access to Protection
Transponders on the Satellite is required for more than one Ku-band  transponder
as a result of simultaneous  transponder failures,  such access shall be granted
in Contract Order (defined as the opposite order from Reverse  Contract  Order).
Any  Transponder  restoration  shall  be  effected  by SES  Americom  as soon as
technically  feasible  but in any  event in not more  than one (1) hour  after a
Transponder is a Transponder  Failure  (provided  that such one-hour  obligation
shall not commence  until Customer has vacated use of the  Transponder)  and any
Protection  Transponder  provided  to  Customer  shall be  deemed a  Transponder
Protected Transponder.

D.  OTHER  COLLABORATION.   SES  Americom  agrees,  at  Customer's  request,  to
collaborate on the design and deployment of Customer's  next-generation  Ka-band
satellite system, with possible operational or financing services to be provided
by SES Americom. Any agreements resulting from such collaboration are subject to
mutual agreement of the parties, each acting in its sole discretion.

E. NOTICES.  All notices  regarding  technical or operational  matters requiring
immediate attention will be given by telephone followed by written notification.
All other notices and requests will be in writing  delivered to the  address(es)
set forth  below or to such  other  address(es)  as the party may  designate  in
writing.

IF TO BE GIVEN TO CUSTOMER:                   IF TO BE GIVEN TO SES AMERICOM:

Attn:  Thomas Greco                           Attn:  Kent Verner
Vice President, Business Development          Manager, Satellite Services

Rainbow DBS Company, LLC                      SES Americom, Inc.

200 Jericho Quadrangle, 2d Floor              Four Research Way
Jericho, NY 11753                             Princeton, NJ 08540

Fax #:  (516) 803-4924                        Fax #:  (609) 987-4517

Tel #:  (516) 803-4914                        Tel #:  (609) 987-4017

cc:  General Counsel                          cc:  General Counsel

Fax #:  (516) 803-4735                        Fax #:  (609) 987-4233

CUSTOMER'S 24 HOUR EMERGENCY TELEPHONE # FOR TECHNICAL/OPERATIONAL ISSUES:

TEL #:  (516) 803-0350

                                      -3-

***  Certain  confidential  portions of this  exhibit  were  omitted by means of
     redacting  a portion  of the text.  Copies of the  exhibit  containing  the
     redacted  portions  have been  filed  separately  with the  Securities  and
     Exchange  Commission  subject  to  a  request  for  confidential  treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act.

<PAGE>

ARTICLE 2. PAYMENT

A.  MONTHLY  RECURRING  SERVICE  CHARGE.  Customer  will pay to SES Americom for
Service a monthly  recurring  service charge ("MRC") in accordance with Sections
2.A.(1) and (2) below:

     (1)  For  each  Transponder  in  Transponder  Group  1,  the MRC will be as
          follows:

          ***

     (2)  ***

B.  SECURITY.

         (1) On or  before  May 1,  2004,  Customer  will,  in order  to  secure
performance  of its  obligations  hereunder,  deliver to SES Americom (a) a cash
deposit (the "Cash Deposit") in the amount of *** U.S. Dollars *** , and (b) one
or more  irrevocable  letter(s)  of credit in the  aggregate  amount of *** U.S.
Dollars *** in the form  attached  hereto as  Attachment  C (such  letter(s)  of
credit  collectively  referred to as the  "Letters of Credit")  issued by one or
more bank(s) acceptable to SES Americom. (Bank of America,  Citigroup, JP Morgan
Chase,  Scotia Bank and Toronto Dominion are each deemed to be a bank acceptable
to SES Americom.)

         (2)  The  Cash  Deposit  will be wire  transferred  to an SES  Americom
account in accordance with instructions provided by SES Americom.  (SES Americom
is not obligated to segregate the Cash Deposit from other  assets.) The proceeds
of the Cash  Deposit  may be  applied  by SES  Americom  to the  obligations  of
Customer  hereunder.  If the Cash Deposit is utilized by SES Americom,  Customer
shall  restore  the Cash  Deposit to the  initial  amount of *** within five (5)
business  days  from  the  date  that  SES  Americom  notifies  Customer  of the
obligation to restore.  Failure to maintain the Cash Deposit shall be treated as
a  failure  by  Customer  to  make a  payment  due to SES  Americom  under  this
Agreement. Upon condition that Customer shall otherwise have performed fully all
of the terms hereunder,  SES Americom shall return to Customer the amount of the
Cash Deposit without interest by ***.

         (3)  Customer  shall  cause the  Letters of Credit  (together  with any
renewal or  replacement  thereof) to remain in full force and effect  until ***.
The Letters of Credit may be drawn upon by SES Americom in accordance with their
terms. Multiple and partial draw-downs may be made against them. The proceeds of
any drawing shall be applied to the obligations of Customer  hereunder.  Failure
to provide the Letters of Credit by May 1, 2004,  and/or failure to maintain the
Letters of Credit  throughout the required term shall be treated as a failure by
Customer to make a payment due to SES Americom under this Agreement.

         (4) If the Letters of Credit or any renewal or replacement  thereof are
drawn  upon,  Customer  shall  cause the  Letters of Credit then in effect to be
replaced such that the principal  amount of the Letters of Credit is restored to
the amount of the  initial  Letters of Credit.  Failure to obtain and deliver to
SES Americom a replacement of the Letters of Credit as provided in the preceding
sentence  within five (5) business days from the date of each such drawing shall
entitle  SES  Americom  to draw upon the Letters of Credit then in effect and to
hold the proceeds as a

                                      -4-

***  Certain  confidential  portions of this  exhibit  were  omitted by means of
     redacting  a portion  of the text.  Copies of the  exhibit  containing  the
     redacted  portions  have been  filed  separately  with the  Securities  and
     Exchange  Commission  subject  to  a  request  for  confidential  treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act.

<PAGE>

security deposit. Such security deposit may be used by SES Americom as an offset
for any amounts due SES Americom at ***, or, in the event of termination of this
Agreement  prior to ***,  for any  liabilities  of Customer  arising out of such
termination.  Upon condition that Customer shall  otherwise have performed fully
all of the terms hereunder,  SES Americom shall return to Customer the amount of
the deposit by ***.

         (5) At any time after July 1, 2005 and during the period  during  which
the Cash Deposit and the Letters of Credit are in place, Customer may deliver to
SES Americom a parent guaranty in the form attached as Attachment C (the "Parent
Guaranty")  in  replacement  of the Cash  Deposit  and the  Letters  of  Credit,
provided  that the Parent  Guaranty  is to be issued and  executed  by an entity
("Newco")  expected  to be formed,  and further  provided  that (i) Newco is the
direct and  beneficial  owner of 100% of Customer  (I.E.,  Rainbow DBS  Company,
LLC),  American Movie Classics  Company,  Women's  Entertainment and Independent
Film Channel,  LLC, and (ii) Newco has long term senior  unsecured  debt that is
rated  equal to or greater  than a rating of BBB+ by  Standard & Poor's  Ratings
Services (or if Newco is unmated, Newco has creditworthiness at least equivalent
to the specified credit criteria as reasonably determined by SES Americom in its
sole judgment) (the  requirements  set forth in clauses (i) and (ii) hereinafter
referred to as the "Credit Criteria").

         (6)  In  the  event  that  after  delivery  of  a  Parent  Guaranty  in
replacement  of the Cash  Deposit and the Letters of Credit  Newco does not meet
the Credit Criteria,  then within thirty (30) days after written notice from SES
Americom  Customer shall deliver to SES Americom a Cash Deposit and a Letters of
Credit as required by paragraph  (1), and the terms of paragraphs  (1)-(4) shall
thereafter apply to such Cash Deposit and Letters of Credit.  Failure to deliver
the Cash  Deposit and  Letters of Credit  within  such  30-day  period  shall be
grounds for  immediate  termination  of this  Agreement by SES  Americom  (I.E.,
without application of the cure period under Article 9.A).

         (7) With  reference to the  obligation  in paragraph (1) to provide the
Cash Deposit and the Letters of Credit on or before May 1, 2004,  Customer shall
have the right in the alternative to provide  Letters of Credit only (I.E.,  and
not a Cash Deposit) on or before May 1, 2004, in the amount of *** U.S.  Dollars
*** and otherwise in the form of Attachment C. If Customer has provided the Cash
Deposit  and the  Letters of Credit,  Customer  shall have the right at any time
after May 1, 2004,  to replace  the Cash  Deposit and the Letters of Credit with
Letters of Credit only,  provided  that such Letters of Credit are in the amount
of ***  U.S.  Dollars  ***,  are  otherwise  in the  form of  Attachment  C, and
otherwise meets the requirements of this Agreement.

C. EARLY TERMINATION OPTIONS.

         (1) Customer has the right to terminate this Agreement on ***, provided
that *** and (c) upon  receipt of such  termination  notice from  Customer,  SES
Americom  shall be  immediately  entitled  to ***.  In the event that ***,  then
Customer shall promptly pay SES Americom in cash the amount ***.

                                      -5-

***  Certain  confidential  portions of this  exhibit  were  omitted by means of
     redacting  a portion  of the text.  Copies of the  exhibit  containing  the
     redacted  portions  have been  filed  separately  with the  Securities  and
     Exchange  Commission  subject  to  a  request  for  confidential  treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act.

<PAGE>

         (2) Customer has the right to terminate this  Agreement  ***  provided
that *** (c) Customer  pays SES Americom on the date of notice an amount ***
determined in accordance with the following sentence. ***

         (3) Customer has the right to terminate  this Agreement as of September
30, 2008 ***,  provided  that *** and (c) on the ***  Customer pays SES Americom
the amount of *** for each  Transponder on which Service is then being provided.
***.

         (4)  Customer  has the right to  terminate  this  Agreement on five (5)
days'  notice,  if  (a)  three  (3)  or  more  of the  Transponders  are  Failed
Transponders  that cannot be restored on the  Satellite,  and (b)  Customer  has
notified  SES Americom in writing  within  thirty (30) days of there being three
(3) or more Failed  Transponders that cannot be restored of Customer's  decision
to terminate the Agreement  pursuant to this Section  2.C(4).  In the event that
(x) three (3) or more Transponders  have become Failed  Transponders that cannot
be restored on the Satellite,  and (y) Customer has not terminated the Agreement
pursuant to this Section 2.C(4),  then on each subsequent  occurrence of another
Failed  Transponder  that  cannot be restored  Customer  shall have the right to
terminate the Agreement in accordance with the preceding sentence.

         (5) Upon  termination  of this Agreement  pursuant to Sections  2.C(1),
(2), (3) or (4) above,  neither Party shall have any further  obligations to the
other hereunder,  except with respect to provisions that expressly  provide that
they survive termination of this Agreement.

D.  BILLING AND PAYMENT.  Invoices  will be issued  monthly  thirty (30) days in
advance of the month in which  Service is to be provided  and are payable on the
first day of such month,  at  Customer's  option,  either by wire transfer or by
check as per the remittance  instructions on the respective monthly invoice.  On
payments not  received by the due date,  SES Americom may assess until such time
as payment in full is made, a late  payment  charge of the lesser of (i) one and
one-half percent (1.5%) per month compounded  monthly,  or (ii) the maximum rate
permitted by  applicable  law. A failure or delay by SES Americom to send a bill
will not relieve  Customer either of its obligation to pay on a timely basis for
Service or of its  obligation  to pay late payment  charges in the event of late
payment.  In  addition  to any other  rights  SES  Americom  may have under this
Agreement,  SES  Americom  may  suspend  provision  of Service on ten (10) days'
notice for failure to pay any sums due to SES Americom.

E. TAXES AND OTHER CHARGES. All charges hereunder are exclusive of taxes, duties
and other fees or  charges  levied by  governmental  authority  on the  Service.
Customer will pay directly or reimburse SES Americom for all such taxes,  duties
and other fees or charges.

ARTICLE 3. CREDITS FOR INTERRUPTIONS

         Credits for  Interruptions in Service of five (5) minutes or more shall
be granted to Customer as follows:

   CREDIT = (NUMBER OF MINUTES IN INTERRUPTION/43, 200) MULTIPLIED BY THE MRC

                                      -6-

***  Certain  confidential  portions of this  exhibit  were  omitted by means of
     redacting  a portion  of the text.  Copies of the  exhibit  containing  the
     redacted  portions  have been  filed  separately  with the  Securities  and
     Exchange  Commission  subject  to  a  request  for  confidential  treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act.

<PAGE>

         The length of an Interruption  will be measured from the earlier of the
time SES  Americom  (i) is  notified by  Customer  of the  Interruption  or (ii)
becomes aware of the  Interruption.  The Interruption  will be deemed ended when
Service  is  restored  to the  Transponder  Performance  Specifications  and SES
Americom  has so  notified  Customer.  No credit will be due,  however,  if such
Interruption  is a result of, or  attributable in whole or part to (i) the fault
of  Customer,  any  Customer  Designee  (as  defined  below)  or  any  agent  or
subcontractor  of either,  (ii) the  failure or  unavailability  of  satellites,
transponders, facilities, services or equipment furnished to Customer other than
by SES  Americom,  (iii) sun  outages or rain  fade,  or (iv)  unless  otherwise
provided herein,  suspensions of Service made in accordance with this Agreement.
Except as otherwise specifically set forth in this Agreement, the aforementioned
credit  will be  Customer's  sole and  exclusive  remedy for  unavailability  of
Service  and/or  failure  of  Service  to  meet  the   Transponder   Performance
Specifications.

ARTICLE 4. SERVICE RESPONSIBILITIES

A.  LAWS AND  REGULATIONS  GOVERNING  SERVICE.  Location  and  operation  of the
Satellite, SES Americom's satellite system and SES Americom's ability to perform
are  subject  to  all  applicable  laws  and  regulations,   including   without
limitation,  the  Communications  Act of 1934,  as  amended,  and the  Rules and
Regulations of the FCC. SES Americom is, and will remain  throughout the Service
Term, in compliance with all such laws and  regulations.  Throughout the Service
Term, SES Americom will operate and provide for tracking,  telemetry and command
of the Satellite in  accordance  with  standard  practices in the industry.  SES
Americom will maintain the Satellite at 72(degree)  W.L.  throughout the Service
Term unless the FCC orders that the  Satellite be  relocated.  SES Americom will
not seek  permission  from the FCC to relocate the Satellite  during the Service
Term.

B. USE  CONDITIONS.  Customer  will use,  and will cause  others  authorized  or
permitted by Customer to access Service ("Customer's Designees") to use, Service
in accordance  with the conditions of use (as such may, upon notice,  be amended
for technical or operational  reasons)  contained in the  Commercial  Operations
Systems  User's Guide set forth in Attachment B ("User's  Guide").  In addition,
Customer  will use, and will cause  Customer's  Designees to use, the Service in
compliance in all material  respects with all applicable laws and regulations of
any  competent   authority  of  the  United  States  or  any  of  its  political
subdivisions governing the Satellite or Customer's use of the Service, including
laws governing the content of material; provided that SES Americom's sole rights
and  remedies  arising out of a breach of the  obligations  in this  Article 4.B
shall be limited to those stated in Sections 4.C, 4.D, 6.A, 7.C and 9.A.

C.  SUSPENSION OF SERVICE  (INTERFERENCE).  If Customer or  Customer's  Designee
fails to use the Service in accordance  with the  conditions of use contained in
the User's Guide,  and does not correct such failure  within thirty (30) minutes
after notice of such failure from SES Americom by telephone in  accordance  with
Section 1.E,  then SES Americom may take actions  (including  suspension  and/or
restriction of Service) it reasonably  believes  necessary to ensure  Customer's
compliance with the User's Guide.

D.  ***

                                      -7-

***  Certain  confidential  portions of this  exhibit  were  omitted by means of
     redacting  a portion  of the text.  Copies of the  exhibit  containing  the
     redacted  portions  have been  filed  separately  with the  Securities  and
     Exchange  Commission  subject  to  a  request  for  confidential  treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act.

<PAGE>

ARTICLE 5. OPERATIONAL MATTERS

A. SERVICE ACCESS.  Except as set forth in Section 1.D., Customer is responsible
for providing,  operating and maintaining the equipment  necessary to access the
Satellite  and Service.  Customer at its expense shall provide SES Americom with
any descrambling or decoding devices that may be required for signal monitoring.
At a mutually  agreed time,  and prior to Customer  transmitting  from its earth
station(s),  Customer will  demonstrate to SES Americom's  designated  Technical
Operations  Center that its earth  station(s)  comply with the satellite  access
specifications contained in the User's Guide.

B.  ACTION TO PROTECT  SATELLITE.  SES  Americom  shall have sole and  exclusive
control of  operation  of the  Satellite.  If  circumstances  occur which in SES
Americom's  reasonable  judgment  pose a threat to the stable  operation  of the
Satellite,  SES  Americom  shall  have the right to take  action  it  reasonably
believes  necessary  to  protect  the  Satellite,  including  discontinuance  or
suspension  of  operation  of the  Satellite,  the  Transponder(s)  or any other
transponder, without any liability to Customer, except that Customer may receive
a credit computed as provided in Article 3 hereunder, and Customer may treat any
affected  Transponders as Transponder  Failures and exercise the rights Customer
has hereunder related to Transponder Failures.  SES Americom shall give Customer
as much notice as practical under the  circumstances of any such  discontinuance
or suspension.  If it becomes necessary to discontinue or suspend service on one
or more transponders on the Satellite,  and operational  circumstances allow SES
Americom  to select  the  transponder  or  transponders  to be  discontinued  or
suspended,  SES Americom  will make such  selection in Reverse  Contract  Order,
without  distinction,  for  purposes of this  Section,  between the  Satellite's
C-band and Ku-band payloads.

C.  OPERATIONS  REPORTS AND  COMMUNICATIONS.  Following  the  execution  of this
Agreement and continuing throughout the Service Term, SES Americom shall provide
Customer with monthly written operational reports concerning the Satellite. Such
reports  shall be delivered  within  thirty (30) days of the close of each month
and shall contain the elements set forth in Attachment E.

D. ANOMALOUS OPERATION  NOTIFICATION AND PERFORMANCE  RECORDS. SES Americom will
notify  Customer as soon as  reasonably  possible,  by  telephone  notice and in
writing,  of any significant  incidents (and any responses thereto) with respect
to the Satellite that have a potential  materially adverse effect on the Service
provided under this Agreement,  including the health of the Satellite as related
thereto.  The incidents to which the foregoing applies will include incidents on
other  satellites  owned by SES  Americom,  provided  that SES  Americom  is not
restricted  from  disclosing  such  information  to Customer  by  non-disclosure
agreement(s).

E. INTERRUPTION REPORTS. Within five (5) business days after any interruption of
transmissions  on the Satellite,  caused by the operation or malfunction of such
Satellite  and not the uplink  stations,  SES Americom will submit to Customer a
report concerning such  interruption.  Such report will include (i) the official
start time of the interruption,  (ii) the official

                                      -8-

***  Certain  confidential  portions  of   this  exhibit  were  omitted  by
means   of  redacting  a  portion  of  the  text.  Copies  of  the  exhibit
containing  the redacted  portions  have been  filed  separately  with  the
Securities  and  Exchange  Commission subject to a request for confidential
treatment  pursuant  to  Rule  24b-2  under  the Securities Exchange   Act.

<PAGE>

end time of the  interruption,  if ended,  (iii) the cause of the  interruption,
(iv) any measures taken by SES Americom to remedy such interruption, and (v) any
measures taken by SES Americom to avoid such interruptions in the future.

ARTICLE 6. INDEMNIFICATION

A.  CUSTOMER  INDEMNIFICATION.  Customer  will  indemnify  and hold harmless SES
Americom, SES Global S.A., and any affiliates of either entity, from and against
all loss,  liability,  cost, expenses and damages of any nature (including,  but
not limited to, attorney fees and, to the extent permitted by law, any fines and
penalties) based on ***.

B. SES AMERICOM  INDEMNIFICATION.  SES Americom will indemnify and hold harmless
Customer and any of Customer's affiliates, from and against all loss, liability,
cost,  expenses  and  damages  of any nature  (including,  but not  limited  to,
attorney fees and to the extent permitted by law, any fines and penalties) based
on third party claims arising out of,  resulting  from or in connection  with an
allegation that the provision of Service or Customer's use thereof in accordance
with this Agreement  infringes alleged patents,  copyrights,  mask works,  trade
secrets or other  intellectual  property rights of any third party. SES Americom
shall have no  obligations  under this  Article if the alleged  infringement  is
based on a combination of equipment or services provided by SES Americom and any
other equipment or services not supplied to Customer by SES Americom unless such
combination is customary in the industry.

         If any Satellite on which Customer is taking  Service  pursuant to this
Agreement, or any Transponder,  becomes, or in SES Americom's opinion, is likely
to become, a subject of a claim, suit or proceeding alleging patent,  copyright,
mask work,  trade mark, or trade secret or other  intellectual  property  rights
infringement,  or if as a result of such suit or  proceeding  or the  settlement
thereof,  the use by Customer of the Service is  prohibited,  SES Americom shall
use its reasonable  efforts to achieve one or more of the following:  (i) obtain
for Customer the right to use the infringing item without any additional cost to
Customer; or (ii) modify the infringing item, provided the modification does not
affect  the  Transponder  Performance  Specifications,   subject  to  Customer's
approval (not to be unreasonably  withheld),  so that it becomes non-infringing.
In the event SES  Americom  is unable to  accomplish  either  (i) or (ii)  above
within  thirty  (30)  days  after  such  use is  enjoined  or  there  is a final
determination  by a court of competent  jurisdiction  that  continued  use would
constitute  an  infringement,  each party shall have a right to  terminate  this
Agreement by written notice to the other party and SES Americom shall refund any
amounts paid by Customer in advance for Services subsequent to such termination.
Such  refund  shall be made by SES  Americom  within  thirty (30) days after SES
Americom  receives  Customer's  request for the  refund,  If this  Agreement  is
terminated  pursuant to this  Section  6.B,  SES  Americom  will use  reasonable
efforts to assist  Customer  in  obtaining  an  alternative  for the  terminated
Service.

ARTICLE 7. WARRANTY DISCLAIMER; LIMITATION OF LIABILITY

A. WARRANTY DISCLAIMER. NO WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, INCLUDING
ANY WARRANTY OF  MERCHANTABILITY OR FITNESS FOR A PARTICULAR  PURPOSE,  APPLY TO
SERVICE  PROVIDED

                                      -9-

***  Certain  confidential  portions of this  exhibit  were  omitted by means of
     redacting  a portion  of the text.  Copies of the  exhibit  containing  the
     redacted  portions  have been  filed  separately  with the  Securities  and
     Exchange  Commission  subject  to  a  request  for  confidential  treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act.

<PAGE>

HEREUNDER OR THE EQUIPMENT AND FACILITIES USED TO PROVIDE SERVICE. THE CONVEYING
BY SES AMERICOM OF  PROPRIETARY  INFORMATION  OR OTHER  INFORMATION  TO CUSTOMER
SHALL IN NO WAY ALTER THIS DISCLAIMER.

B. LIMITATION OF LIABILITY. With respect to any and all causes arising out of or
relating to this  Agreement,  including but not limited to claims of negligence,
breach of contract or warranty,  failure of a remedy to accomplish its essential
purpose or  otherwise,  Customer and SES Americom  agree that the other  party's
entire  liability  shall not exceed in the  aggregate the greater of (i) the MRC
paid by Customer to SES  Americom for Service in the month  preceding  the event
that is the cause of the  liability,  plus any  credits or refunds  that are due
with  respect  to  such  event  or  (ii)  Two  Hundred   Thousand  U.S.  Dollars
($200,000.00).  The parties  understand  and agree that the  limitations of this
paragraph are not  applicable to (w) damages  resulting  from a party's  willful
breach of this  Agreement,  (x) damages  suffered by a party as a consequence of
the wrongful  termination of this  Agreement by the other party,  (y) Customer's
obligations  in Article 2, and (z) the  termination  liability  obligations  set
forth in Section 9.C.

         Customer and SES Americom agree that in no event shall either party, or
their affiliated companies or the manufacturer or launch service provider of the
Satellite be liable for (i) any indirect, incidental,  consequential,  punitive,
special  or  other  similar  damages  (whether  in  contract,   tort  (including
negligence), strict liability or under any other theory of liability), including
but not limited to loss of actual or  anticipated  revenues or profits,  loss of
business,  customers or good will, or damages and expenses  arising out of third
party claims except those specified in Article 6 or (ii) any damages of whatever
kind, in the event the Satellite is positioned at an orbital location other than
as specified in Section 1 .A. The foregoing  exclusions shall apply even if such
party(s) has been advised of the possibility of such damages.

C.  EQUITABLE  RELIEF.  Customer and SES  Americom  shall have the right to seek
enforcement  of the  provisions of this  Agreement  through a decree of specific
performance.  SES Americom acknowledges and agrees that the Transponders used to
provide the Service are unique and not readily available on the open market, and
that if the  Service,  or any  portion  thereof,  is not  available  to Customer
because  the  material  terms of this  Agreement  are not  fulfilled  due to SES
Americom's breach, Customer's remedies at law would not be adequate.

ARTICLE 8. CONFIDENTIALITY AND NONDISCLOSURE

A. CERTAIN INFORMATION  REGARDING SERVICE.  The parties agree not to disclose to
third parties  (without the prior written consent of the  non-disclosing  party)
the material terms and  conditions of this Agreement  (including but not limited
to  the  prices,  payment  terms,  schedules,   protection   arrangements,   and
restoration  provisions  thereof),  except that SES Americom may disclose any of
the material terms and conditions of this Agreement to the extent such terms and
conditions are part of SES Americom's standard contract offerings and so long as
such disclosure does not directly or indirectly identify Customer,  and Customer
agrees not to disclose  any  information  provided  to Customer by SES  Americom
related to the design and performance  characteristics of the Satellite, and any
subsystems or components thereof, including the Transponders. The foregoing will
not preclude  SES  Americom or Customer  (without the

                                      -10-

***  Certain  confidential  portions of this  exhibit  were  omitted by means of
     redacting  a portion  of the text.  Copies of the  exhibit  containing  the
     redacted  portions  have been  filed  separately  with the  Securities  and
     Exchange  Commission  subject  to  a  request  for  confidential  treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act.

<PAGE>

consent of the other) from disclosing, on a confidential basis, such information
to affiliates, or to its or their employees, agents, representatives,  auditors,
investors, purchasers or lenders, potential investors, purchasers or lenders, or
legal  counsel,  provided that (i) such  disclosures  are done on a need-to-know
basis, and (ii) each recipient is obligated to maintain the  confidentiality  of
the information in a manner consistent with this Agreement.

B.  PROPRIETARY  INFORMATION.  To the extent that either party  discloses to the
other any other  information  which it considers  proprietary,  said party shall
identify such  information as proprietary  when disclosing it to the other party
by  marking  it  clearly  and  conspicuously  as  proprietary  information.  Any
proprietary  disclosure to either party, if made orally,  shall be identified as
proprietary  information  at the  time of  disclosure  and  promptly  thereafter
confirmed  in  writing  and  identified  as  proprietary  information,   if  the
disclosing  party  wishes  to  keep  such  information  proprietary  under  this
Agreement.  Any such information disclosed under this Agreement shall be used by
the recipient thereof only in its performance under this Agreement.

         Neither  party  shall  be  liable  for the  inadvertent  or  accidental
disclosure of such information marked as proprietary,  if such disclosure occurs
despite  the  exercising  of the  same  degree  of care as the  receiving  party
normally takes to preserve and safeguard its own  proprietary  information  (but
not  less  than  reasonable  care)  or if such  information:  (i) is or  becomes
lawfully  available to the public from a source other than the  receiving  party
before or during the period of this  Agreement;  (ii) is  released in writing by
the disclosing  party without  restrictions;  (iii) is lawfully  obtained by the
receiving   party  from  a  third  party  or  parties   without   obligation  of
confidentiality;  (iv) is lawfully  known by the  receiving  party prior to such
disclosure;  or (v) is at any time  lawfully  developed by the  receiving  party
completely  independently  of  any  such  disclosure  or  disclosures  from  the
disclosing party.

         In addition,  neither  party shall be liable for the  disclosure of any
proprietary  information  which it  receives  under this  Agreement  pursuant to
judicial  action or decree,  or pursuant to any requirement of any Government or
any agency or department thereof,  having jurisdiction over such party, provided
that in the  reasonable  opinion of counsel  for such party such  disclosure  is
required,  and  provided  further  that  such  party  to the  extent  reasonably
practical shall have given the other party notice prior to such disclosure,

C. TRADE NAMES/TRADEMARK.  Neither Customer nor SES Americom shall in any manner
represent  that it has rights in or to any trade name or  trademark  used by the
other party.  Neither  Customer nor SES  Americom  shall  register or attempt to
register  any trade names or  trademark of the other party under the laws of any
jurisdiction,  or at any time do or cause to be done any act or thing  impairing
the  distinctiveness  of such trade names or trademarks or any part of the other
party's  interest therein whether or not they are registered in the jurisdiction
in which such party is located or does  business.  SES Americom  agrees that the
Customer may refer to the Satellite as "Rainbow-2" in  presentations,  marketing
materials  and  other  materials  associated  with  the sale  and  promotion  of
Customer's services transmitted on the Satellite, provided that (i) SES Americom
is not  restricted  in its naming of the  Satellite,  and (ii) FCC filings shall
reflect the Satellite name as determined by SES Americom.

                                      -11-

***  Certain  confidential  portions of this  exhibit  were  omitted by means of
     redacting  a portion  of the text.  Copies of the  exhibit  containing  the
     redacted  portions  have been  filed  separately  with the  Securities  and
     Exchange  Commission  subject  to  a  request  for  confidential  treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act.

<PAGE>

ARTICLE 9. TERMINATION

A.  TERMINATION.  In  addition  to any rights of  termination  provided in other
Articles of this Agreement,  either party may terminate this Agreement by giving
the other  party  written  notice  thereof  in the  event:  (i) the other  party
materially  breaches this  Agreement and fails to cure such breach within thirty
(30) days after receipt of written notice thereof (except that if Customer fails
to pay amounts due hereunder,  such cure period shall be reduced to *** business
days);  or (ii) the other party is unable to perform its obligations as a result
of its becoming  insolvent or the subject of insolvency  proceedings,  including
without  limitation  if the other  party is  judicially  declared  insolvent  or
bankrupt,  or if any  assignment is made of the other  party's  property for the
benefit of its creditors, or if a receiver,  conservator,  trustee in bankruptcy
or other similar  officer is appointed by a court of competent  jurisdiction  to
take charge of all or any substantial part of the other party's property,  or if
a petition is filed by or against the other  party  under any  provision  of the
Bankruptcy Act now or hereafter  enacted,  and such  proceeding is not dismissed
within sixty (60) days after filing.  Customer may terminate  this  Agreement by
giving SES Americom  written  notice if the Satellite is relocated to an orbital
position other than 72(degree) W.L.

B. REFUNDS.  In the event of the end of the Agreement  pursuant to Article 1.B.,
or in the event of  termination by Customer  pursuant to this Agreement  (except
pursuant  to  Section  2.C),  or in the  event of  termination  by SES  Americom
pursuant to Article 10.G., SES Americom shall refund any portion of amounts paid
by Customer to SES Americom which relate to Service not provided by SES Americom
plus any credits that may be due to Customer.

C. TERMINATION  LIABILITY.  In the event of termination by SES Americom pursuant
to Section  9.A,  SES  Americom  shall be entitled to retain all amounts paid by
Customer to SES Americom hereunder,  and any credits that may be due to Customer
shall be forfeited.  In addition, SES Americom in its sole discretion may either
elect to (i) pursue any rights  and  remedies  it may have at law,  in equity or
otherwise or (ii) recover from Customer an amount equal to the net present value
(as of the date of such  termination) of the remaining  unpaid Service  charges,
computed as if this Agreement remained in effect until the Projected Termination
Date,  utilizing  a  discount  rate of 5% per annum,  plus late  charges on such
amount from the date of termination until payment in full ("Termination Value").
If SES Americom elects (ii) above and recovers such amount,  SES Americom agrees
to use that level of effort to  mitigate  its  damages  (I.E.,  the  Termination
Value) as is required by applicable  judicial authority (I.E., New York law). In
the event SES  Americom  does obtain a qualified  replacement  customer(s),  SES
Americom thereafter shall pay to Customer eighty-five percent (85%) of the gross
proceeds  received by SES Americom  either (x) from the  provision of service to
such replacement  customer(s)  using the  Transponder(s)  prior to the Projected
Termination Date, or (y) from the sale of the Transponder(s) to such replacement
customer(s) and  attributable  to the period prior to the Projected  Termination
Date;  provided that in no event shall such payment exceed the Termination Value
paid by Customer.

D. INABILITY TO REGAIN  TRANSPONDER.  If upon  expiration or termination of this
Agreement for any reason by either  party,  SES Americom is unable to regain the
use of all,  or any part of,

                                      -12-

***  Certain  confidential  portions of this  exhibit  were  omitted by means of
     redacting  a portion  of the text.  Copies of the  exhibit  containing  the
     redacted  portions  have been  filed  separately  with the  Securities  and
     Exchange  Commission  subject  to  a  request  for  confidential  treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act.

<PAGE>

the Transponder(s) free and clear of any claims (including,  but not limited to,
claims of a debtor in bankruptcy) or liens arising as a result of the use of the
Transponder(s)  by Customer  or  Customer's  Designees,  then in addition to all
other remedies available to SES Americom pursuant to this Agreement,  at law, in
equity,  or otherwise,  Customer shall be obligated,  without regard to any such
termination or expiration, to continue to pay SES Americom the payments provided
for in Article 2.

ARTICLE 10. GENERAL PROVISIONS

A.  FORCE  MAJEURE.  Neither  party will be liable to the other by reason of any
failure in  performance  of this  Agreement if the failure arises out of acts of
God,  acts of the other party,  acts of government  authority,  strikes or other
labor  disturbances  beyond the reasonable  control of that party,  or terrorist
acts. In no event shall  Customer's  failure to make payment when due be excused
by a force majeure event.

B. NO IMPLIED  LICENSE.  The  provision  of  services  or the  conveying  of any
information  under this Agreement  shall not convey any license by  implication,
estoppel or otherwise,  under any patents or other intellectual  property rights
of Customer or SES Americom, SES Global S.A., and their affiliates,  contractors
and vendors.

C. NO THIRD PARTY RIGHTS; NO FIDUCIARY  RELATIONSHIP.  Nothing contained in this
Agreement  shall be deemed or  construed by the parties or by any third party to
create any rights,  obligations or interests in third parties,  or to create the
relationship  of principal and agent,  partnership or joint venture or any other
fiduciary relationship or association between the parties.

D. NO WAIVER; REMEDIES CUMULATIVE. No waiver, alteration, or modification of any
of the terms of this  Agreement  will be binding unless in writing and signed by
both parties. All remedies and rights hereunder and those available in law or in
equity  shall be  cumulative,  and the  exercise by a party of any such right or
remedy shall not  preclude  the exercise of any other right or remedy  available
under this Agreement in law or in equity.

E.  GOVERNING  LAW AND  JURISDICTION.  This  Agreement  shall be  construed  and
enforced in  accordance  with the laws of the State of New York,  excluding  its
conflicts  of law  rules.  The  parties  hereby  consent  to and  submit  to the
non-exclusive  jurisdiction of the federal and state courts located in the State
of New York, and any action or suit under this Agreement shall be brought by the
parties in any federal or state court established or sitting in the State of New
York with appropriate  jurisdiction  over the subject matter.  The parties shall
not raise in connection  therewith,  and hereby waive,  any defenses  based upon
venue, inconvenience of the forum, lack of personal jurisdiction, sufficiency of
service of process  (as long as notice of such  action or suit is  furnished  in
accordance with Section 1.D hereunder) or the like in any such action or suit.

F. HEADINGS; SEVERABILITY;  CUSTOMER PURCHASE ORDERS. All titles and headings in
this  Agreement are for reference  purposes only and will not affect the meaning
or  construction  of the terms of this  Agreement.  If any part or parts of this
Agreement  are held to be invalid,  the remaining  parts of the  Agreement  will
continue to be valid and enforceable. Customer agrees

                                      -13-

***  Certain  confidential  portions of this  exhibit  were  omitted by means of
     redacting  a portion  of the text.  Copies of the  exhibit  containing  the
     redacted  portions  have been  filed  separately  with the  Securities  and
     Exchange  Commission  subject  to  a  request  for  confidential  treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act.

<PAGE>

that any purchase  order or other  similar  document  that Customer may issue in
connection  with this Agreement will be for  Customer's  internal  purposes only
and,  therefore,  even if acknowledged by SES Americom,  will not in any way add
to,  subtract  from,  or in any way  modify  the  terms and  conditions  of this
Agreement.

G.  ASSIGNMENT  AND OTHER THIRD  PARTY USE.  Customer's  obligations  under this
Agreement  may not be  assigned  or  otherwise  transferred  to any third  party
without SES  Americom's  prior  written  consent to such  assignment or transfer
(which consent shall not be  unreasonably  withheld or delayed).  SES Americom's
consent may be reasonably withheld if Customer fails to establish the ability of
the prospective assignee or transferee to meet Customer's obligations under this
Agreement,  including without  limitation (a) the conditions in Section 4.B, and
(b) Customer's financial commitments.

         Customer  is  authorized  to allow  third  parties to access use of the
Service,  subject to the rights and  requirements  of this  paragraph.  Customer
shall provide SES Americom with at least five (5) business days' prior notice of
any third  party use of Service  and of the  identity  of any such third  party.
Should Customer resell any Service provided hereunder or otherwise permit use of
such  Service by any third party or parties,  Customer  shall be a guarantor  of
compliance by each such third party with all the terms of this Agreement and any
breach  by any such  third  party  shall be deemed  to have  been  committed  by
Customer.  Any such third party must meet the  conditions in Section 4.B of this
Agreement.  If Customer  wishes to resell use of some or all of the  capacity of
Service  to a third  party for a term of more than  three (3)  months,  Customer
shall first  provide SES Americom with prior  written  notice of such  decision.
Within  thirty (30) days after  receipt of such notice,  SES  Americom,  may, by
written  notice  to  Customer,  elect to  terminate  this  Agreement,  whereupon
Customer  shall have a period of thirty (30) days from  receipt of such  notice,
within which period Customer may elect to (x) accept  termination and notify SES
Americom of the date on which such  termination  shall be effective  (which date
shall be not less than sixty (60) days and not more than one  hundred and twenty
(120) days after the date of such  notice from  Customer to SES  Americom or (y)
cancel its plans to resell and continue  this  Agreement in effect.  If Customer
does not elect (x) or (y) above within the applicable time limit, Customer shall
be  deemed  to have  elected  clause  (y).  If SES  Americom  does not  offer to
terminate  this  Agreement  upon notice from Customer of Customer's  decision to
resell  capacity  under this Section  10.G.,  Customer may, after SES Americom's
thirty (30) day termination  election period has expired,  resell some or all of
the capacity of the Service at its discretion,  subject to Customer's obligation
to  remain  responsible  to SES  Americom  under  the  third  sentence  of  this
Paragraph.

H. PRIVATE PARTIES.  The parties acknowledge that the Customer's Service offered
hereunder has been privately  offered and is intended to be privately  furnished
on a non-common  carrier  basis.  Neither SES Americom nor Customer  regards any
representations,  offers or  undertakings  made by the other in connection  with
this  Agreement  to be in the nature of offers of common  carriage.  Neither SES
Americom nor Customer  will  attempt,  now or in the future,  to assert  through
legal process,  directly or indirectly,  that the relationship hereunder between
the parties involves the offering of a common carrier service.

                                      -14-

***  Certain  confidential  portions of this  exhibit  were  omitted by means of
     redacting  a portion  of the text.  Copies of the  exhibit  containing  the
     redacted  portions  have been  filed  separately  with the  Securities  and
     Exchange  Commission  subject  to  a  request  for  confidential  treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act.

<PAGE>

I.  SURVIVAL.  Termination  or expiration of this Agreement for any reason shall
not release either party of any  liabilities  or  obligations  set forth in this
Agreement which the parties have expressly agreed shall survive such termination
or expiration.

ARTICLE 11. DEFINITIONS

         As used in this Agreement:

A. "Business Preemptible Service" or "Business Preemptible  Transponder" means a
satellite  service or  transponder  that is not entitled to  restoration  in the
event it  becomes a  Transponder  Failure  and may be  preempted  at any time to
restore  (1)  a  satellite  failure,   (2)  a  Protected  Service  or  Protected
Transponder  that  becomes  a  transponder  failure,  (3) any other  service  or
transponder  (including  a  Preemptible  Service  or  Preemptible   Transponder)
experiencing  technical  difficulties  or  interference,  or (4)  other  service
offerings of SES Americom or any of its affiliates, including but not limited to
mass move  protection,  construction  and  launch  delay  protection  and launch
failure protection.  In addition,  such Business Preemptible Service or Business
Preemptible Transponder may be preempted for any other reason (including but not
limited to, SES  Americom's  desire to provide  service on such  Transponder  to
another customer) upon five (5) business days' notice.

B. "End-of-Life" means the date on which, in SES Americom's  reasonable judgment
a satellite should be taken out of service because of insufficient fuel.

C. "Fully Protected Service" or "Fully Protected  Transponder" means a satellite
service or a transponder that may not be preempted to restore another service or
transponder,  and if  restoration  thereof is needed as a result of a  satellite
failure, or as a result of a transponder failure under circumstances in which no
Protection  Transponder  is available on the  satellite on which such  satellite
service or  transponder  is  located,  is entitled  to  restoration,  subject to
availability of facilities and to the conditions of the applicable contract,  on
another satellite.

D. "Interruption"  means any period during which a Transponder fails to meet the
Transponder  Performance  Specifications and such circumstances preclude the use
of the Transponder for its intended purpose.

E. "Non-Preemptible Service" or "Non-Preemptible  Transponder" means a satellite
service or a  transponder  on which such  service  is  provided  that may not be
preempted  to  restore  another  service or  transponder  and that is not itself
entitled to be restored by preempting a Preemptible Service.

F. "Preemptible Service" or "Preemptible  Transponder" means a satellite service
or  transponder  that is not entitled to  restoration  in the event it becomes a
Transponder  Failure and may be preempted at any time to restore (1) a satellite
failure,  (2) a  Protected  Service  or  Protected  Transponder  that  becomes a
transponder  failure,  or (3) other service  offerings of SES Americom or any of
its affiliates, including but not limited to mass move protection,  construction
and launch delay protection and launch failure protection.

                                      -15-

***  Certain  confidential  portions of this  exhibit  were  omitted by means of
     redacting  a portion  of the text.  Copies of the  exhibit  containing  the
     redacted  portions  have been  filed  separately  with the  Securities  and
     Exchange  Commission  subject  to  a  request  for  confidential  treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act.

<PAGE>

G. "Protected Service" or "Protected Transponder" means a service or transponder
that is entitled to preempt a Preemptible Service or Preemptible Transponder.

H.  "Protection  Transponder"  means a Replacement  Transponder  or  Preemptible
Transponder used to restore a Protected Service.

I.  "Replacement  Date"  means the date on which a  successor  satellite  to the
Satellite or to the Ku-band payload of the Satellite is made capable of carrying
communications  traffic  at the  orbital  location  to which  the  Satellite  is
assigned. Unless SES Americom commits to continue to provide service pursuant to
this Agreement on the successor satellite, such Replacement Date shall not occur
prior to twelve (12) months  before SES  Americom's  good faith  estimate of the
End-of-Life of the Satellite.

J.  "Replacement  Transponder"  means  a  spare  transponder  amplifier  and its
associated components, which is accessible for purposes of providing restoration
and which is capable of carrying communications traffic within the parameters as
described in the transponder  performance  specifications for the transponder to
be restored.

K. "Reverse  Contract  Order" means,  as to each service or  transponder  on the
Satellite,  in order from the latest date on which a binding  agreement  for the
taking of such service has been executed by both a customer and SES Americom, to
the earliest such date. If Reverse Contract Order is to be determined among more
than one class of service, then Reverse Contract Order means first in order from
the  latest  such date to the  earliest  such date  among  Business  Preemptible
Services,  second in such order among Preemptible Services,  third in such order
among Non-Preemptible Services, fourth in such order among Transponder Protected
Services and last in such order among Fully Protected Services.  Notwithstanding
the foregoing, any service being provided to the United States Government or any
department or agency thereof, whether through a prime contract or a subcontract,
shall be deemed to have an  earlier  date of  binding  agreement  than  Customer
hereunder.

L. "Satellite" means the communications  spacecraft designated AMC-6 operated by
SES Americom at 72(degree)W.L.  When used in the lower case, "satellite" means a
domestic communications satellite operating in Ku-band.

M.  "Satellite  Failure" means a satellite (1) on which one or more of the basic
subsystems  fail,  rendering the use of the satellite for its intended  purposes
impractical,  as determined by SES Americom in its reasonable business judgment,
or on  which  more  than  one-half  of  the  transponders  on  the  payload  are
transponder  failures,  and (2) that SES Americom  has  declared a failure.  For
purposes of this  definition,  a hybrid  satellite  with both C-band and Ku-band
payloads  shall be treated,  at SES  Americom's  option,  either (i) as a single
satellite,  or (ii) as though the C-band and Ku-band  payloads  were  located on
separate satellites.

N.  "Transponder"  means a Ku-band radio frequency  transmission  channel on the
Satellite  designed  to have a  nominal  bandwidth  of 36 MHz,  used to  provide
service  to  Customer  pursuant  to  the  terms  of  this  Agreement.   Customer
acknowledges and agrees that due to circumstances,

                                      -16-

***  Certain  confidential  portions of this  exhibit  were  omitted by means of
     redacting  a portion  of the text.  Copies of the  exhibit  containing  the
     redacted  portions  have been  filed  separately  with the  Securities  and
     Exchange  Commission  subject  to  a  request  for  confidential  treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act.

<PAGE>

including  but  not  limited  to  the  characteristics  of  Customer's  traffic,
Customer's ground segment  configuration,  and the characteristics of traffic on
cross  polarized  transponders on the Satellite and of carriers on satellites in
proximity  to the  Satellite,  the entire 36 MHz of the  Transponder  may not be
usable by Customer for the  operation of all types of carriers.  If the Customer
uses its  Transponder for a full band 36 MHz analog carrier or a single wideband
saturated "MCPC Type" digital carrier, then the entire 36 MHz of the Transponder
will be usable by the Customer for this type of  transmission.  When used in the
lower case,  "transponder" means a Ku-band radio frequency  transmission channel
on a communications satellite.

O. "Transponder  Failure" means, with respect to any Transponder used to provide
service to Customer under this Agreement,  any of the following events: (1) such
Transponder  fails to meet the  Transponder  Performance  Specifications  in any
respect  for any  period  of ***  hours;  (2) *** or more  Interruptions  of ***
seconds or more in duration shall occur within any *** consecutive days (but not
including  Interruptions  for which no credit is payable  under the  penultimate
sentence  of  Article  3); ***  or (4)  such  Transponder  shall  fail  to  meet
the Transponder  Performance  Specifications  in any  respect  for any period of
time  under  circumstances  that  make  it clearly ascertainable or predictable,
based on satellite  industry  engineering  standards,  that  a failure set forth
in Clause (1), Clause (2), or Clause (3) above will occur. For  purpose  of this
definition, measurement  of periods of failure  hereunder  shall  commence  when
Customer  has  vacated its signal to permit verification of the existence of the
failure by SES Americom; ***.

P. "Transponder  Protected Service" or "Transponder Protected Transponder" means
a satellite  service or transponder that may not be preempted to restore another
service or  transponder,  that is itself  entitled to be restored by  Protection
Transponders on the same satellite in the event it becomes a Transponder Failure
but  that  is not  entitled  to be  restored  if  there  is no  such  Protection
Transponder available.

         THIS AGREEMENT CONTAINS THE COMPLETE AND EXCLUSIVE UNDERSTANDING OF THE
PARTIES  WITH  RESPECT TO THE SUBJECT  MATTER  HEREOF AND  SUPERSEDES  ALL PRIOR
NEGOTIATIONS  AND AGREEMENTS  BETWEEN THE PARTIES WITH RESPECT  THERETO.  TO THE
EXTENT THAT ANY ATTACHMENT MAY BE  INCONSISTENT  WITH THE TEXT OF THE AGREEMENT,
THE TEXT OF THE AGREEMENT SHALL CONTROL.

------------------------------------      --------------------------------------
RAINBOW DBS COMPANY, LLC                  SES AMERICOM, INC., AS AGENT FOR
                                          SES AMERICOM COLORADO, INC.
------------------------------------      --------------------------------------

By:      /s/  Charles F. Dolan            By:      /s/ Carl Capista
------------------------------------      --------------------------------------
                (SIGNATURE)                            (SIGNATURE)
------------------------------------      --------------------------------------

Name:       Charles F. Dolan              Name:     Carl Capista
------------------------------------      --------------------------------------
         (TYPED OR PRINTED NAME)               (TYPED OR PRINTED NAME)
------------------------------------      --------------------------------------

                                      -17-

***  Certain  confidential  portions of this  exhibit  were  omitted by means of
     redacting  a portion  of the text.  Copies of the  exhibit  containing  the
     redacted  portions  have been  filed  separately  with the  Securities  and
     Exchange  Commission  subject  to  a  request  for  confidential  treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act.

<PAGE>

------------------------------------      --------------------------------------
Title:        Chairman                    Title:    Vice-President,
                                                    Entertainment Sales
------------------------------------      --------------------------------------
Date:         April 23, 2004              Date:     April 26, 2004
------------------------------------      --------------------------------------

                                      -18-

  *** Certain  confidential  portions of this  exhibit  were omitted by means of
      redacting  a portion of the text.  Copies of the  exhibit  containing  the
      redacted  portions  have been filed  separately  with the  Securities  and
      Exchange  Commission  subject  to a  request  for  confidential  treatment
      pursuant to Rule 24b-2 under the Securities Exchange Act.EXHIBIT 10.1

 

EXHIBIT 10.1

SECOND AMENDMENT

TO

AMENDED AND RESTATED CREDIT
AGREEMENT

     
THIS SECOND AMENDMENT TO AMENDED AND RESTATED
CREDIT AGREEMENT (this “Agreement”) is entered
into as of July 1, 2004, by and among Ziff Davis Media
Inc., a Delaware corporation (the “Borrower”),
CIBC World Markets Corp., as lead arranger and bookrunner (the
“Lead Arranger”), Deutsche Bank Trust Company
Americas, as syndication agent (the “Syndication
Agent”), Fleet National Bank, as documentation agent
(the “Documentation Agent”), Canadian Imperial
Bank of Commerce, as administrative agent (the
“Administrative Agent”) and the other Credit
Parties party hereto (the “Credit Parties”).

W I T N E S S E T H

     
WHEREAS, the Borrower, the Lead Arranger, the
Syndication Agent, the Documentation Agent, the Administrative
Agent and the Credit Parties are parties to that certain Amended
and Restated Credit Agreement dated as of August 12, 2002,
as amended by that certain First Amendment to Amended and
Restated Credit Agreement dated as of September 17, 2002
(as the same may be amended, restated, supplemented or otherwise
modified from time to time, the “Credit
Agreement”); and

     
WHEREAS, the Borrower has requested, and the
Credit Parties have agreed, to amend the Credit Agreement to the
extent set forth herein;

     
NOW THEREFORE, in consideration of the premises
set forth above, the terms and conditions contained herein and
other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby
agree that all capitalized terms used herein shall have the
meanings ascribed thereto in the Credit Agreement, as amended
hereby, except as otherwise defined or limited herein, and
further agree, subject to the conditions precedent to this
Amendment hereinafter set forth, as follows:

     
1.     Amendments to
Article 1.

     
(a) Article 1 of the Credit Agreement,
Definitions, is hereby modified and amended by adding the
following new definitions in appropriate alphabetical order:

		
	 	     
    ““Basket Projection Amount”
    shall have the meaning set forth in Section 7.5(x)
    hereof.”
    
	 
	 	     
    ““Cash Acquisition Charges”
    shall mean, with respect to any Investment or Acquisition, the
    actual cash paid to a Seller on the Investment/ Acquisition
    Closing Date or, to be paid to such Seller after the Investment/
    Acquisition Closing Date pursuant to any promissory note issued
    in connection with such Investment or Acquisition, but excluding
    any Contingent Purchase Payments.”
    
	 
	 	     
    ““Contingent Purchase
    Payments” shall mean, with respect to any Investment or
    Acquisition, the portion of the consideration (excluding any new
    equity issued or to be issued in connection therewith) which
    payment is contingent upon the performance of the Target after
    the Investment/ Acquisition Closing Date, measured over any time
    period that ends at least one (1) year after the
    Investment/ Acquisition Closing Date.”
    
	 
	 	     
    ““Conversion” shall have
    the meaning set forth in Section 7.5(xiii)”
    
	 
	 	     
    ““Earnout Payment” shall
    have the meaning set forth in Section 7.5(x) hereof.”
    
	 
	 	     
    ““Executive Order
    No. 13224” means Executive Order No. 13224 on
    Terrorist Financing, effective September 24, 2001, as the
    same has been, or shall hereafter be, renewed, extended, amended
    or replaced.”
    

32

 

		
	 	     
    ““Investment/ Acquisition Closing
    Date” shall mean, with respect to any Investment or
    Acquisition, the closing date of such Investment or
    Acquisition.”
    
	 
	 	     
    ““Investment/ Acquisition
    Measurement Date” shall mean, with respect to any
    Investment or Acquisition, the last calendar day of the most
    recent quarter ended prior to the Investment/ Acquisition
    Closing Date with respect to which the Borrower, as of the
    Invest/ Acquisition Closing Date, was obligated to have
    delivered financial statements pursuant to Article 6
    hereof.”
    
	 
	 	     
    ““OFAC” shall mean the
    Office of Foreign Assets Control of the United States Department
    of the Treasury.”
    
	 
	 	     
    ““Period” shall mean, with
    respect to any Investment or Acquisition, the twelve
    (12) month period ended on the Investment/ Acquisition
    Measurement Date.”
    
	 
	 	     
    ““Permitted Foreign Joint Venture
    Acquisitions and Investments” shall mean Acquisitions
    of and Investments in foreign joint ventures by means of any
    combination of (a) cash consideration in an amount not to
    exceed during the term of the Agreement, the sum of $3,000,000,
    plus Recycled Proceeds, and (b) use of Trademarks as
    consideration, provided, that the value of any such individual
    Trademarks so used does not exceed $1,000,000.”
    
	 
	 	     
    ““Pre-Maturity Contingent Purchase
    Payments” shall mean, with respect to any Investment or
    Acquisition, Contingent Purchase Payments payable after the
    Investment/ Acquisition Closing Date and on or prior to the date
    that is 90 days after the Final Maturity Date.”
    
	 
	 	     
    ““Post-Maturity Contingent Purchase
    Payments” shall mean, with respect to any Investment or
    Acquisition, Contingent Purchase Payments payable after the date
    that is 90 days following the Final Maturity Date.”
    
	 
	 	     
    ““Pre-Maturity Payments”
    shall mean, with respect to any Investment or Acquisition, the
    sum of Cash Acquisition Charges and Pre-Maturity Contingent
    Purchase Payments.”
    
	 
	 	     
    ““Pro Forma Senior Leverage
    Ratio” shall mean with respect to any Investment or
    Acquisition, the Senior Leverage Ratio as adjusted as if
    (a) the Cash Acquisition Charges relative to such
    Investment or Acquisition had been incurred at the commencement
    of the Period and (b) the Target had been acquired at the
    commencement of the Period, provided, that the EBITDA of the
    Target during the Period shall be inclusive of such reasonable
    adjustments that may be proposed by the Borrower and approved by
    the Administrative Agent.”
    
	 
	 	     
    ““Recycled Proceeds” shall
    mean the amount of any Net Proceeds from the sales, transfers or
    other dispositions by the Borrower and/or any of its
    Subsidiaries of its and/or their ownership interests in foreign
    joint ventures, to the extent Borrower is not required pursuant
    to Section 2.7(b)(i) to apply such Net Proceeds to
    permanently reduce the Loans in accordance with
    Section 2.7(d).”
    
	 
	 	     
    ““Second Amendment Date”
    shall mean July 1, 2004.”
    
	 
	 	     
    ““Target” shall mean the
    assets or interests acquired pursuant to Section 7.5(x)
    hereof.”
    
	 
	 	     
    ““USA Patriot Act” shall
    mean the Uniting and Strengthening America by Providing
    Appropriate Tools Required to Intercept and Obstruct Terrorism
    Act of 2001, Pub. L. No. 107-56, 115 Stat. 272 (2001), as
    the same has been, or shall hereafter be, renewed, extended,
    amended or replaced.”
    

     
(b) Article 1 of the Credit Agreement,
Definitions, is hereby further modified and amended by
deleting the definition of “Fixed Charges” and by
substituting the following in lieu thereof:

		
	 	     
    ““Fixed Charges’ shall
    mean, for any period, for the Borrower and its Restricted
    Subsidiaries, on a consolidated basis, the sum of the following
    for such period: (a) cash Interest Expense;
    (b) scheduled, permanent principal repayments with respect
    to Borrower Debt; (c) Capital Expenditures (other than
    Capital Expenditures funded by Available Cash Flow);
    (d) cash income, franchise and foreign withholding taxes
    payable; and (e) Restricted Payments permitted under
    Sections 7.7(c) or 7.7(f)
    

33

 

		
	 	
    hereof. Earnout Payments and Cash Acquisition
    Charges shall not be included in the definition of Fixed Charges
    for any purpose.
    

     
(c) Article 1 of the Credit Agreement,
Definitions, is hereby further modified and amended by
deleting the definition of “Permitted Acquisitions”
and by substituting the following in lieu thereof:

		
	 	     
    ““Permitted Acquisitions”
    shall mean Acquisitions made by the Borrower or any of its
    Subsidiaries as and to the extent permitted under
    Section 7.5 hereof.”
    

     
(d) Article 1 of the Credit Agreement,
Definitions, is hereby further modified and amended by
deleting the definition of “Permitted Disposition” and
by substituting the following in lieu thereof:

		
	 	     
    “Permitted Disposition” shall
    mean any sale, lease, abandonment, transfer, trade or other
    disposition of Assets by the Borrower or any of its Subsidiaries
    as and to the extent permitted under Section 7.5
    hereof.”
    

     
(e) Article 1 of the Credit Agreement,
Definitions, is hereby further modified and amended by
deleting the definition of “Restricted Subsidiaries”
and by substituting the following in lieu thereof:

		
	 	     
    “Restricted Subsidiaries” shall
    mean all Subsidiaries of the Borrower other than the Foreign
    Subsidiaries.”
    

     
(f) Article 1 of the Credit Agreement,
Definitions, is hereby further modified and amended by deleting
the existing definitions of “Closing Equity”,
“Equity Collateral Account”, “eTesting
Labs,” “eTesting Labs Disposition,”
“eTesting Sale Proceeds,” “Specified Equity
Contributions” and “Unrestricted Subsidiaries.”

     
2. Amendment to Section 2.7.
Section 2.7(b) of the Credit Agreement, Disposition of
Assets, is hereby modified and amended by deleting
clause (i) thereof in its entirety and substituting the
following in lieu thereof:

		
	 	     
    “(i) If, after the Second Amendment
    Date, the Borrower or any of its Subsidiaries shall sell,
    transfer or otherwise dispose of (including, without limitation,
    by way of condemnation or casualty to the extent not covered by
    insurance) any Assets with Net Proceeds in excess of $1,500,000
    in the aggregate during the period from the Second Amendment
    Date through the Final Maturity Date (including, without
    limitation, any Equity Interests in any Subsidiary, but not
    including (A) the sale of obsolete equipment and inventory,
    (B) the sale, transfer or other disposition of fixed Assets
    that are replaced by property of substantially equivalent value
    in the ordinary course of business, (C) the sale or lease
    of databases, software, subscriber lists or office or laboratory
    space, or the licensing of intellectual property, in each case
    in the ordinary course of business, (D) the sale of Cash
    Equivalents, and (E) the sale or discount of accounts
    receivable in connection with compromise or collection (but
    not in connection with accounts receivable securitizations or
    similar transactions)), one hundred percent (100%) of the Net
    Proceeds from such sale, transfer or other disposition to the
    extent that the aggregate Net Proceeds of all sales, transfers
    or other dispositions of Assets during the period from the
    Second Amendment Date through the Final Maturity Date exceeds
    $1,500,000 shall, (I) in the case of Net Proceeds received
    by the Borrower, be applied on the date of receipt thereof, and
    (II) in the case of Net Proceeds received by any Subsidiary
    of the Borrower, be promptly distributed on a pro rata basis to
    all of such Subsidiary’s equity holders and on the date of
    the Borrower’s receipt of its pro rata share of any such
    Net Proceeds, be applied, in either case, to permanently reduce
    the Loans pursuant to Section 2.7(d) hereof.”
    

     
3. Amendment to Section 4.1.
Section 4.1(e) of the Credit Agreement, Business, is
hereby deleted in its entirety and the following substituted in
lieu thereof:

		
	 	     
    “(e) Business. The Borrower and
    its Restricted Subsidiaries are engaged in any or all of the
    following: (a) the business of publishing, in print or on
    the Internet, magazines in the United States and Europe, and in
    business activities related thereto (including without
    limitation conducting conferences and industry events and
    licensing content from such magazines and trademarks),
    (b) the business of acquiring, developing and managing
    Internet initiatives, new magazine publishing initiatives and
    events with respect to new or existing magazines, and
    (c) creating and holding interests in third parties obtained
    

34

 

		
	 	
    by means of Permitted Acquisitions and Permitted
    Investments (including, without limitation, by Permitted Foreign
    Joint Venture Acquisitions and Investments).”
    

     
4. Amendment to Section 5.2.
Section 5.2 of the Credit Agreement, Business;
Compliance with Applicable Law, is hereby modified and
amended by deleting the first sentence therefrom and by
substituting the following in lieu thereof:

		
	 	     
    “The Borrower will, and will cause each of
    its Restricted Subsidiaries to, engage solely in any or all of
    the following: (a) the business of publishing, in print or
    on the Internet, magazines in the United States and Europe, and
    in business activities related thereto (including without
    limitation conducting conferences and industry events and
    licensing content from such magazines and trademarks),
    (b) the business of acquiring, developing and managing
    Internet initiatives, new magazine publishing initiatives and
    events with respect to new or existing magazines, and
    (c) creating and holding interests in third parties
    obtained by means of Permitted Acquisitions and Permitted
    Investments (including without limitation by Permitted Foreign
    Joint Venture Acquisitions and Investments.”
    

     
5. Amendment to Section 6.1.
Section 6.1 of the Credit Agreement, Monthly Financial
Statements and Information, is hereby deleted in its
entirety and the following substituted in lieu thereof:

		
	 	     
    “Section 6.1 Monthly Financial
    Statements and Information. Within thirty (30) days
    after the last day of each month (other than March, June,
    September and December), unaudited balance sheets of Holdco, on
    a consolidated basis with Intermediate Holdco, the Borrower and
    the Restricted Subsidiaries, as of the end of such month and as
    of the end of the preceding fiscal year, and the related
    statements of operations and the related statements of cash
    flows of Holdco, on a consolidated basis with Intermediate
    Holdco, the Borrower and the Restricted Subsidiaries, and the
    related revenue and EBITDA on a consolidating (by publication or
    group) basis, for such month and for the elapsed portion of the
    year ended with the last day of such month, which shall set
    forth in comparative form such figures (x) as at the end of
    and for such month, (y) as against the corresponding month
    during the preceding fiscal year and (z) as against the
    figures set forth for such month in the Borrower’s business
    plan provided to the Credit Parties pursuant to
    Section 6.5(c) hereof. The foregoing financial statements
    shall be certified by a Principal Officer to be, in his or her
    opinion, complete and correct in all material respects and to
    present fairly in all material respects, in accordance with
    GAAP, the financial position of Holdco, on a consolidated basis
    with Intermediate Holdco, the Borrower and the Restricted
    Subsidiaries, and, as applicable, on a consolidating (by
    publication or group) basis, as at the end of such period and
    the results of operations for such period, and for the elapsed
    portion of the year ended with the last day of such period,
    subject only to normal year-end adjustments and the absence of
    footnotes. Notwithstanding anything to the contrary contained in
    the foregoing, the Borrower will furnish draft monthly financial
    statements with respect to December during each fiscal year of
    the Borrower, within sixty (60) days after the last day of
    such month.”
    

     
6. Amendment to Section 6.2.
Section 6.2 of the Credit Agreement, Quarterly Financial
Statements and Information, is hereby deleted in its
entirety and the following substituted in lieu thereof:

		
	 	     
    “Section 6.2 Quarterly
    Financial Statements and Information. Within forty-five
    (45) days after the last day of each of the first three
    (3) quarters, and within one-hundred five (105) days
    after the last day of the fourth quarter, of each fiscal year of
    the Borrower, unaudited balance sheets of Holdco, on a
    consolidated basis with Intermediate Holdco, the Borrower and
    the Restricted Subsidiaries, as at the end of such quarter and
    as of the end of the preceding fiscal year, and the related
    statements of operations and the related statements of cash
    flows of Holdco, on a consolidated basis with Intermediate
    Holdco, the Borrower and the Restricted Subsidiaries, and the
    related revenue and EBITDA on a consolidating (by publication or
    group) basis, for such quarter and for the elapsed portion of
    the year ended with the last day of such quarter, which shall
    set forth in comparative form such figures (x) as at the
    end of and for such quarter, (y) as against the
    corresponding quarter during the preceding fiscal year and
    (z) as against the figures set forth in the Borrower’s
    business plan provided to the Credit Parties pursuant to
    Section 6.5(c) hereof. The foregoing financial statements
    shall be certified by a Principal Officer to be, in his or her
    opinion, complete and correct in all material respects and to
    present fairly in all material
    

35

 

		
	 	
    respects, in accordance with GAAP, the financial
    position of Holdco, on a consolidated basis with Intermediate
    Holdco, the Borrower and the Restricted Subsidiaries, and as
    applicable, on a consolidating (by publication or group) basis,
    as at the end of such period and the results of operations for
    such period, and for the elapsed portion of the year ended with
    the last day of such period, subject only to normal year-end
    adjustments and the absence of footnotes. Notwithstanding
    anything to the contrary contained in the foregoing, the
    Borrower will furnish draft quarterly financial statements with
    respect to the fourth fiscal quarter during each fiscal year of
    the Borrower, within sixty (60) days after the last day of
    such quarter.”
    

     
7. Amendment to Section 6.3.
Section 6.3 of the Credit Agreement, Annual Financial
Statements and Information, is hereby deleted in its
entirety and the following substituted in lieu thereof:

		
	 	     
    “Section 6.3 Annual Financial
    Statements and Information. Within one hundred five
    (105) days after the end of each fiscal year of the
    Borrower, the audited balance sheet of Holdco, on a consolidated
    basis with Intermediate Holdco, the Borrower and the Restricted
    Subsidiaries, as at the end of such fiscal year and the related
    audited statement of income and retained earnings or deficit and
    related statements of cash flows of Holdco, on a consolidated
    basis with Intermediate Holdco, the Borrower and the Restricted
    Subsidiaries, for such fiscal year, setting forth in comparative
    form the figures as at the end of and for the previous fiscal
    year and certified, without any qualifications or explanatory
    paragraphs, by independent certified public accountants of
    national recognized standing, whose opinion shall be in scope
    and substance reasonably satisfactory to the Agents, and include
    a statement certifying that no Default or Event of Default was
    detected during the examination of Holdco and its Subsidiaries
    and that such accountants have authorized Holdco to deliver such
    financial statements and opinion thereon to the Credit Parties
    pursuant to this Agreement.”
    

     
8. Amendment to Section 6.4.
Section 6.4 of the Credit Agreement, Performance
Certificates, is hereby deleted in its entirety and the
following substituted in lieu thereof:

		
	 	     
    “Section 6.4 Performance
    Certificates. At the time the financial statements are
    furnished pursuant to Section 6.2 hereof (other than any
    draft financial statements delivered with respect to any
    December of any fiscal year of the Borrower), a Performance
    Certificate:
    

		
	 	     
    “(i) setting forth as at the end of
    such fiscal quarter, the arithmetical calculations required to
    establish (A) whether the Borrower was in compliance with
    the requirements of the Financial Covenants, and (B) the
    Applicable Margin;
    
	 
	 	     
    (ii) setting forth a summary of all
    Permitted Investments and Permitted Acquisitions during the
    applicable fiscal quarter, which summary shall (A) include
    the total amount of each such Permitted Investment and Permitted
    Acquisition consummated from and after the Second Amendment
    Date, (B) identify the Person making such Investment or
    Acquisition, and (C) set forth as applicable the
    projections in the Borrower’s “base case” that
    are relevant to the calculation of the Contingent Purchase
    Payments and the Basket Projection Amounts of each such
    Permitted Investment or Permitted Acquisition; and
    
	 
	 	     
    “(iii) stating that, to the best of his
    or her knowledge, no Default or Event of Default has occurred as
    at the end of such period, or, if a Default or an Event of
    Default has occurred, disclosing each such Default or Event of
    Default and its nature, when it occurred, whether it is
    continuing and the steps being taken by the Borrower with
    respect to such Default or Event of Default.”
    

     
9. Amendment to Section 6.5.

     
(a) Section 6.5 of the Credit
Agreement, Other Reports, is hereby modified and amended by
deleting subsection (c) in its entirety and by
substituting the following in lieu thereof:

		
	 	     
    “(c) Annually, and in no event later than
    January 31 of any year, a copy of the Borrower’s
    annual business plan, including (i) updated financial
    projections for itself and its Subsidiaries, on a consolidated
    basis, set forth on a monthly, by publication or group basis for
    such fiscal year and (ii) balance sheets and cash flow
    statements, on a monthly basis, for the Borrower and the
    Restricted Subsidiaries taken as a whole.”
    

36

 

		
	 	     
    (b) Section 6.5 of the Credit
    Agreement, Other Reports, is hereby modified and amended
    by adding subsection (h) to the end of
    Section 6.5 as follows:
    

		
	 	     
    “(h) Five (5) Business Days prior to
    the Investment/ Acquisition Closing Date of any Permitted
    Acquisition or Permitted Investment, an Acquisition and
    Investment summary which shall (i) include the amount of
    such proposed Permitted Investments or Permitted Acquisitions,
    (ii) identify the Person that is proposed to make such
    Investment or Acquisition, (iii) include a discussion
    describing in reasonable detail the Target’s business and
    the Borrower’s rationale for such proposed Permitted
    Investment or Permitted Acquisition, and (iv) set forth the
    projections in the Borrower’s “base case” that
    are relevant to the calculation of the Contingent Purchase
    Payments and Basket Projection Amounts of such Permitted
    Investment or Permitted Acquisition.”
    

     
10. Amendments to Section 7.1.

		
	 	     
    (a) Section 7.1 of the Credit
    Agreement, Indebtedness, is hereby modified and amended
    by deleting subsection (c) in its entirety and by
    substituting the following in lieu thereof:
    

		
	 	     
    “(c) Indebtedness in respect of conditional
    sale, rental or purchase money obligations in an aggregate
    amount not to exceed (i) $5,000,000 minus (ii) the
    amount of such Indebtedness attributed to an Acquisition or
    Investment permitted under Section 7.5(x) at any one time
    outstanding;”
    

		
	 	     
    (b) Section 7.1 of the Credit
    Agreement, Indebtedness, is hereby modified and amended
    by deleting the parenthetical “(other than any of the
    Foreign Subsidiaries)” from
    subsection (e) thereof.
    
	 
	 	     
    (c) Section 7.1 of the Credit
    Agreement, Indebtedness, is hereby further modified and
    amended by deleting subsections (l) and (m) in their
    entirety and by substituting the following in lieu thereof:
    

		
	 	     
    “(l) [Intentionally Omitted];
    (m) [Intentionally Omitted];”
    

		
	 	     
    (d) Section 7.1 of the Credit
    Agreement, Indebtedness, is hereby further modified and
    amended by deleting subsections (n) in its entirety and by
    substituting the following in lieu thereof:
    

		
	 	     
    “(n) Indebtedness consisting of
    customary forms of deferred compensation, such as customary
    non-compete, consulting and similar agreements, incurred in
    connection with a Permitted Acquisition, and Indebtedness
    permitted by Section 7.5(x) and Section 7.1(c).”
    

     
11. Amendments to Section 7.2.

     
(a) Section 7.2 of the Credit
Agreement, Investments, is hereby modified and amended by
deleting subsection (a) in its entirety and by
substituting the following in lieu thereof:

		
	 	     
    “(a) make Investments in and loans to the
    Borrower and to the Subsidiaries;”
    

     
(b) Section 7.2 of the Credit
Agreement, Investments, is hereby further modified and
amended by deleting subsection (d) in its entirety and
by substituting the following in lieu thereof:

		
	 	     
    “(d) make Permitted Foreign Joint Venture
    Acquisitions and Investments, provided, that any such
    Permitted Foreign Joint Venture Acquisitions and Investments
    made in cash (other than from Recycled Proceeds) shall reduce on
    a dollar-for-dollar basis the aggregate amount of Cash
    Acquisition Charges permitted under Section 7.5(x);”
    

     
12. Amendments to Section 7.5.

     
(a) Section 7.5 of the Credit
Agreement, Liquidation; Merger; Acquisition or Disposition of
Assets, is hereby modified and amended by deleting the
proviso at the end of clause (ii) in its entirety and by
substituting the following in lieu thereof:

		
	 	     
    “provided, however, that
    notwithstanding the existence of any Default or Event of
    Default, the Borrower and the Restricted Subsidiaries may sell,
    lease, abandon, transfer, trade or otherwise dispose of, in a
    single transaction or in a series of related transactions, any
    Assets in an aggregate amount not to
    

37

 

		
	 	
    exceed $1,500,000 during the term of this
    Agreement from and after the Second Amendment Date pursuant to
    the foregoing terms and conditions so long as the Borrower shall
    prepay the Loans pursuant to Section 2.7(b) hereof without
    regard to the $1,500,000 threshold for repayment contained
    therein.”
    

     
(b) Section 7.5 of the Credit
Agreement, Liquidation; Merger; Acquisition or Disposition of
Assets, is hereby modified and amended by deleting
clause (iv) in its entirety and by substituting the
following in lieu thereof:

		
	 	     
    “(iv) subject to compliance with
    Section 5.14, the Borrower and the Restricted Subsidiaries
    (y) may form Subsidiaries organized under any jurisdiction,
    subject to compliance with Sections 7.2(d) and 7.5(xi)
    hereof, and (z) may make Acquisitions of replacement Assets
    with Net Proceeds of insurance to the extent such Net Proceeds
    are permitted to be so used pursuant to Section 2.7(b)(iii)
    hereof;”
    

     
(c) Section 7.5 of the Credit
Agreement, Liquidation; Merger; Acquisition or Disposition of
Assets, is hereby further modified and amended by deleting
clause (v) in its entirety and by substituting the
following in lieu thereof:

		
	 	     
    “(v) [Intentionally Omitted];”
    

     
(d) Section 7.5 of the Credit
Agreement, Liquidation; Merger; Acquisition or Disposition of
Assets, is hereby further modified and amended by deleting
clause (vi) in its entirety and by substituting the
following in lieu thereof:

		
	 	     
    “(vi) the Borrower may contribute its
    Trademarks, provided, that the value of any such
    individual Trademark contributed does not exceed $1,000,000, in
    connection with a Permitted Foreign Joint Venture Acquisition or
    Investment, and promptly upon receipt by the Administrative
    Agent from the Borrower of documentation reasonably satisfactory
    to the Administrative Agent reflecting such contribution of
    Trademarks, the Administrative Agent will release its Lien on
    such contributed Trademarks;”
    

     
(e) Section 7.5 of the Credit
Agreement, Liquidation; Merger; Acquisition or Disposition of
Assets, is hereby further modified and amended by deleting
clause (x) in its entirety and by substituting the
following in lieu thereof:

		
	 	     
    “(x) subject to compliance with
    Section 5.14, the Borrower and its Subsidiaries may
    (I) make Investments as permitted by Section 7.2
    (other than clause (c) thereof), (II) make Permitted
    Foreign Joint Venture Acquisitions and Investments permitted by
    clause (xi) of Section 7.5 hereof,
    (III) make Investments and Acquisitions permitted by
    clauses (xii) or (xiii) of Section 7.5
    hereof or (IV) make other Investments and Acquisitions as
    follows:
    

		
	 	     
    (A) so long as no Default or Event of
    Default then exists or would be caused thereby;
    
	 
	 	     
    (B) provided that (1) for the
    period from the Second Amendment Date and thereafter, the
    aggregate amount of Investments and Acquisitions made during
    such period (excluding the value of any new Equity Interests
    issued or to be issued in connection therewith by Holdco and its
    Subsidiaries, provided, that any new Equity Interests
    issued by any Subsidiary of Holdco shall constitute Management
    Shares or shall be pledged to the Administrative Agent as
    Collateral hereunder) shall not exceed $39,000,000 in the
    aggregate, not more than $24,000,000 in the aggregate of which
    shall consist of Pre-Maturity Payments, provided, that
    (x) the aggregate Pre-Maturity Contingent Purchase Payments
    made from and after the Second Amendment Date shall not exceed
    $14,000,000 and (y) the aggregate Cash Acquisition Charges
    made from and after the Second Amendment Date shall not exceed
    $14,000,000;
    
	 
	 	     
    (2) if EBITDA for the twelve
    (12) months ending December 31, 2004 is equal to or
    greater than $40,850,000, excluding any EBITDA attributable to
    any Acquisition or Investment that has an Investment/
    Acquisition Closing Date on or after the Second Amendment Date,
    then for the period from two (2) Business Days after
    receipt by the Agent of the audited financial statements for the
    year ended December 31, 2004, delivered pursuant to the
    terms of this Agreement, and thereafter,
    

38

 

		
	 	
    the aggregate amount of Investments and
    Acquisitions made from and after the Second Amendment Date
    (excluding the value of any new Equity Interests issued or to be
    issued in connection therewith by Holdco and its Subsidiaries,
    provided, that any new Equity Interests issued by any
    Subsidiary of Holdco shall constitute Management Shares or shall
    be pledged to the Administrative Agent as Collateral hereunder)
    shall not exceed $46,500,000 in the aggregate, not more than
    $29,000,000 in the aggregate of which shall consist of
    Pre-Maturity Payments, provided, that (x) the
    aggregate of Pre-Maturity Contingent Purchase Payments made from
    and after the Second Amendment Date shall not exceed $18,000,000
    and (y) the aggregate of Cash Acquisition Charges made from
    and after the Second Amendment Date shall not exceed
    $16,500,000; or
    
	 
	 	     
    (3) if EBITDA for the twelve
    (12) months ending June 30, 2005 is equal to or
    greater than $45,036,650, excluding any EBITDA attributable to
    any Acquisition or Investment that has an Investment/
    Acquisition Closing Date on or after the Second Amendment Date,
    then for the period from two (2) Business Days after
    receipt by the Agent of the quarterly financial statements for
    the period ended June 30, 2005, delivered pursuant to the
    terms of this Agreement, and thereafter, the aggregate amount of
    Investments and Acquisitions made from and after the Second
    Amendment Date (excluding the value of any new Equity Interests
    issued or to be issued in connection therewith by Holdco and its
    Subsidiaries, provided, that any new Equity Interests
    issued by any Subsidiary of Holdco shall constitute Management
    Shares or shall be pledged to the Administrative Agent as
    Collateral hereunder) shall not exceed $60,000,000 in the
    aggregate, not more than $36,500,000 in the aggregate of which
    shall consist of Pre-Maturity Payments, provided, that
    (x) the aggregate of Pre-Maturity Contingent Purchase
    Payments made from and after the Second Amendment Date shall not
    exceed $20,000,000 and (y) the aggregate of Cash
    Acquisition Charges made from and after the Second Amendment
    Date shall not exceed $16,500,000;
    
	 
	 	     
    (C) for each such Investment or Acquisition
    the total amount of Cash Acquisition Charges and Basket
    Projection Amount shall not exceed $12,500,000 without the prior
    written consent of the Administrative Agent or $25,000,000
    without the prior written consent of the Required Lenders;
    
	 
	 	     
    (D) the Target shall have positive EBITDA
    for the Period inclusive of such reasonable adjustments that may
    be proposed by the Borrower and approved by the Administrative
    Agent;
    
	 
	 	     
    (E) Pro Forma Senior Leverage Ratio for the
    Period shall not be greater than the Senior Leverage Ratio for
    such Period;
    
	 
	 	     
    (F) Earnout Payment obligations of the
    Borrower shall be non-interest bearing and unsecured; and
    
	 
	 	     
    (G) (1) any Contingent Purchase Payment
    that becomes due and payable (each an “Earnout
    Payment”), shall (a) be deemed Indebtedness under
    Section 7.1(n) of this Agreement, and (b) constitute
    Senior Debt, for purposes of calculating covenant compliance
    under this Agreement, including for the purpose of calculating
    covenant compliance on a pro forma basis after giving effect to
    any such Earnout Payment; (2) prior to such time that any
    Contingent Purchase Payment becomes due and payable, it shall
    (a) not constitute Borrower Debt and (b) shall be
    measured, for the purposes of this Section 7.5(x), at the
    amount (the “Basket Projection Amount”) that
    would be due if the Borrower’s “base case”
    projections with respect to the applicable Investment or
    Acquisition were achieved, provided, that such
    projections shall include projected revenue and EBITDA,
    respectively, of the Target for the twelve (12) month
    period immediately preceding the date of each Contingent
    Purchase Payment that is at least 15% higher than the actual
    revenue and EBITDA, respectively, of the Target for the Period;
    and (3) once a Contingent Purchase Payment becomes due and
    payable, the Basket Projection Amount shall be replaced, for the
    purposes of this Section 7.5(x), by the amount of the
    Earnout Payment. Promptly, and in any event within 10 days,
    of the date on which a Contingent Purchase Payment becomes due
    and payable or is deemed Indebtedness the Borrower shall notify
    the Administrative Agent of such event.”
    

39

 

     
(f) Section 7.5 of the Credit
Agreement, Liquidation; Merger; Acquisition or Disposition of
Assets, is hereby further modified and amended by adding
clause (xi) as follows:

		
	 	     
    “(xi) the Borrower and its
    Subsidiaries may make Permitted Foreign Joint Venture
    Acquisitions and Investments, provided, that any such Permitted
    Foreign Joint Venture Acquisitions and Investments made in cash
    (other than from Recycled Proceeds) shall reduce on a
    dollar-for-dollar basis the aggregate amount of Cash Acquisition
    Charges permitted under Section 7.5(x).”

     
(g) Section 7.5 of the Credit
Agreement, Liquidation; Merger; Acquisition or Disposition of
Assets, is hereby further modified and amended by adding
clause (xii) as follows:

		
	 	     
    “(xii) the Borrower and its
    Subsidiaries may make Acquisitions and Investments within their
    respective lines of business so long as the Required Lenders
    shall consent thereto, and subject to any conditions imposed by
    the Required Lenders in connection therewith.”

     
(h) Section 7.5 of the Credit
Agreement, Liquidation; Merger; Acquisition or Disposition of
Assets, is hereby further modified and amended by adding
clause (xiii) as follows:

		
	 	     
    “(xiii) In the event that the
    Borrower or any of its Subsidiaries receive, in connection with
    a Permitted Acquisition, Permitted Investment or Permitted
    Foreign Joint Venture Acquisition or Investment, Indebtedness of
    a third party owing in favor of the Borrower or any of its
    Subsidiaries (including without limitation a note in favor of
    the Borrower or any of its Subsidiaries that is convertible into
    equity of a third party debtor), the Borrower or any of its
    Subsidiaries may forgive such Indebtedness, in whole or in part,
    as whole or partial consideration for the acquisition of any
    Assets and/or Equity Interests (a “Conversion”)
    and the value of the Conversion shall be deemed to be zero after
    giving effect to such Conversion for the purposes of
    Section 7.5(x)(B) and Section 7.5(xi).”

     
13. Amendments to
Section 7.7.

     
(a) Section 7.7 of the Credit
Agreement, Restricted Payments and Purchases, is hereby
modified and amended by deleting clause (f) in its entirety
and substituting the following in lieu thereof:

		
	 	     
    “(f) so long as no Default or Event
    of Default then exists or would be caused thereby, the Borrower
    and its Subsidiaries may (i) make Restricted Payments or
    Restricted Purchases in connection with the repurchase,
    redemption or other acquisition or retirement for value of any
    Equity Interests of Holdco or any of its Subsidiaries held by
    any employee, former employee, spouse, former spouse of any
    employee or former employee and any of their respective estates,
    or make payments on notes evidencing any Management Redemption
    Debt, in an aggregate amount not to exceed the sum of
    (A) $1,000,000 during any fiscal year (with unused amounts
    in any fiscal year being carried over to the immediately
    following fiscal year, but only to such immediately following
    fiscal year and not any subsequent fiscal year and amounts
    available during the current fiscal year must be used before any
    amounts carried forward may be used), plus (B) the
    Borrower’s fifty percent (50%) share of the aggregate cash
    Net Proceeds received from any ‘key-man’ life
    insurance policies, (ii) repurchase Equity Interests by the
    issuance of Management Redemption Debt permitted under
    Section 7.1 hereof, (iii) repurchase Equity Interests
    or make payments with respect to Management Redemption Debt in
    an aggregate amount not to exceed $1,500,000 during the term of
    this Agreement, and (iv) repurchase Equity Interests in
    consideration for the cancellation of any Management Notes
    issued in connection with the original purchase thereof;
    and”

     
(b) Section 7.7 of the Credit
Agreement, Restricted Payments and Purchases, is hereby
further modified and amended by adding clause (g) as
follows:

		
	 	     
    “(g) the Borrower and its
    Subsidiaries may make Restricted Purchases of Equity Interests
    in any Borrower Subsidiary that, immediately prior to any such
    Restricted Purchase, is not wholly-owned by the Borrower and its
    Subsidiaries, provided that such Restricted Purchase constitutes
    a Permitted Acquisition or Permitted Investment.”

40

 

     
(c) Section 7.7 of the Credit
Agreement, Restricted Payments and Purchases, is hereby
further modified and amended by deleting the final sentence
thereof (beginning “Notwithstanding anything to the
contrary...”) in its entirety.

     
14. Amendment to Section 7.8.
Section 7.8 of the Credit Agreement, Affiliate
Transactions, is hereby modified and amended by deleting
each reference to “(other than loans made by any of the
Unrestricted Subsidiaries to any member of the Restricted
Group)” from clause (a) thereof.

     
15. Amendment to
Section 7.9.

     
(a) Section 7.9 of the Credit
Agreement, Business Name; Business Structure; Business,
is hereby modified and amended by deleting clause (b)(i) in
its entirety and by substituting the following in lieu.

		
	 	     
    “(b)(i) with respect to the Borrower and the
    Restricted Subsidiaries, engage in any business other than any
    of the following: (A) the business of publishing, in print
    or on the Internet, magazines in the United States and Europe,
    and in business activities related thereto (including without
    limitation conducting conferences and industry events and
    licensing content from such magazines and trademarks),
    (B) the business of acquiring, developing and managing
    Internet initiatives, new magazine publishing initiatives and
    events with respect to new or existing magazines, and
    (C) creating and holding interests in third parties
    obtained by means of Permitted Acquisitions and Permitted
    Investments (including without limitation by Permitted Foreign
    Joint Venture Acquisitions and Investments),”
    

     
(b) Section 7.9 of the Credit
Agreement, Business Name; Business Structure; Business,
is hereby modified and amended by deleting the penultimate
sentence thereof beginning (“The Internet Group
.. . .”) in its entirety.

     
16. Amendment to Article 7.
Article 7 of the Credit Agreement, Negative Covenants, is
hereby modified and amended by adding a new Section 7.14,
Anti-Terrorism Laws as follows:

		
	 	     
    “Section 7.14 Anti-Terrorism
    Laws. (a) Conduct any business or engage in any
    transaction or dealing with any Person, including the making or
    receiving of any contribution of funds, goods or services to or
    for the benefit of any Person in violation of Executive Order
    No. 13224; (b) deal in, or otherwise engage in any
    transaction relating to, any property or interests in property
    blocked pursuant to Executive Order No. 13224; or
    (c) engage in on conspire to engage in any transaction that
    evades or avoids, or has the purpose of evading or avoiding, or
    attempts to violate, (i) any of the prohibitions set forth
    in Executive Order No. 13224 or, in any material respect,
    the USA Patriot Act, or (ii) any prohibitions set forth in
    the rules or regulations issued by OFAC or any sanctions against
    targeted foreign countries, terrorism sponsoring organizations,
    and international narcotics traffickers based on
    U.S. foreign policy.”
    

     
17. Amendment to Section 8.1.
Section 8.1 of the Credit Agreement, Senior Leverage
Ratio, is hereby deleted in its entirety and the following
substituted in lieu thereof:

		
	 	     
    “Section 8.1 Senior Leverage
    Ratio. The Borrower shall not permit for any fiscal quarter
    end during the periods set forth below, or as of the date of any
    Advance during such periods, the Senior Leverage
    

41

 

		
	 	
    Ratio, after giving effect to such Advance (if
    applicable), to exceed the applicable ratio for such date during
    the periods as set forth below:
    

	 	 	 	 	 
	Applicable Period		Ratio
	
		

	
    
    June 30, 2004 through September 29, 2004
    

    	 	 	5.60 to 1.00	 
	
    
    September 30, 2004 through December 30,
    2004
    

    	 	 	5.50 to 1.00	 
	
    
    December 31, 2004 through March 30, 2005
    

    	 	 	5.00 to 1.00	 
	
    
    March 31, 2005 through June 29, 2005
    

    	 	 	4.75 to 1.00	 
	
    
    June 30, 2005 through September 29, 2005
    

    	 	 	4.25 to 1.00	 
	
    
    September 30, 2005 through December 30,
    2005
    

    	 	 	4.00 to 1.00	 
	
    
    December 31, 2005 through March 30, 2006
    

    	 	 	3.75 to 1.00	 
	
    
    March 31, 2006 through June 29, 2006
    

    	 	 	3.50 to 1.00	 
	
    
    June 30, 2006 through September 29, 2006
    

    	 	 	3.25 to 1.00	 
	
    
    September 30, 2006 through December 30,
    2006
    

    	 	 	2.75 to 1.00	 
	
    
    December 31, 2006 and thereafter
    

    	 	 	2.50 to 1.00	 

     
18. Amendment to Section 8.2.
Section 8.2 of the Credit Agreement, Interest Coverage
Ratio, is hereby deleted in its entirety and the following
substituted in lieu thereof:

		
	 	     
    “Section 8.2 Interest Coverage
    Ratio. For any fiscal quarter end during the periods set
    forth below, the Borrower shall not permit the Interest Coverage
    Ratio to be less than the applicable ratio for such fiscal
    quarter end during the periods as set forth below:
    

	 	 	 	 	 
	Period		Ratio
	
		

	
    
    June 30, 2004 through September 29, 2004
    

    	 	 	2.50 to 1.00	 
	
    
    September 30, 2004 through December 30,
    2004
    

    	 	 	2.50 to 1.00	 
	
    
    December 31, 2004 through March 30, 2005
    

    	 	 	2.80 to 1.00	 
	
    
    March 31, 2005 through June 29, 2005
    

    	 	 	2.90 to 1.00	 
	
    
    June 30, 2005 through September 29, 2005
    

    	 	 	3.15 to 1.00	 
	
    
    September 30, 2005 through December 30,
    2005
    

    	 	 	3.20 to 1.00	 
	
    
    December 31, 2005 and thereafter
    

    	 	 	3.30 to 1.00	 

     
19. Amendment to Section 8.3.
Section 8.3 of the Credit Agreement, Fixed Charge
Coverage Ratio, is hereby deleted in its entirety and the
following substituted in lieu thereof:

		
	 	     
    “Section 8.3 Fixed Charge Coverage
    Ratio. For any fiscal quarter end during the periods set
    forth below, the Borrower shall not permit the Fixed Charge
    Coverage Ratio to be less than the applicable ratio for such
    fiscal quarter end during the periods as set forth below:
    

	 	 	 
	
    
    June 30, 2004 through March 30, 2005
    

    	 	
    1.25 to 1.00
    
	
    
    March 31, 2005 through June 29, 2005
    

    	 	
    1.20 to 1.00
    
	
    
    June 30, 2005 through September 29, 2005
    

    	 	
    1.10 to 1.00
    
	
    
    September 30, 2005 through December 30,
    2005
    

    	 	
    1.10 to 1.00
    
	
    
    December 31, 2005 through March 30, 2006
    

    	 	
    1.10 to 1.00
    
	
    
    March 31, 2006 through June 29, 2006
    

    	 	
    1.10 to 1.00
    
	
    
    June 30, 2006 through September 29, 2006
    

    	 	
    1.10 to 1.00
    
	
    
    September 30, 2006 through December 30,
    2006
    

    	 	
    1.05 to 1.00
    
	
    
    December 31, 2006 and thereafter
    

    	 	
    1.05 to 1.00
    

     
20. Amendment to Section 8.4.
Section 8.4 of the Credit Agreement, Capital
Expenditures, is hereby modified and amended by

		
	 	     
    (a) deleting the text
    “December 31, 2004” and substituting the text
    “Maturity Date” in lieu thereof in such
    Section; and
    

42

 

		
	 	     
    (b) deleting clause (a) in its entirety
    and by substituting the following in lieu thereof:
    

		
	 	     
    “(a) for the period ending December 31,
    2004, $5,000,000 and thereafter, $6,000,000, plus”
    

     
21. Amendment to Section 12.5.
Section 12.5(f) of the Credit Agreement, Successors and
Assigns; Participations and Assignments, is hereby modified
and amended by replacing the reference to
“Section 12.17” contained therein with a
reference to “Section 12.18.”

     
22. Amendment to Section 12.18.
Section 12.18 of the Credit Agreement,
Confidentiality, is hereby modified and amended by
replacing the reference to “Section 12.17”
contained therein with a reference to
“Section 12.18” and to renumber clauses (v),
(vii), (viii) and (ix) thereof, respectively, as
clauses (e), (f), (g) and (h), respectively.

     
23. No Other Amendments. Except for
the amendments expressly set forth above, the text of the Credit
Agreement and the other Loan Documents shall remain unchanged
and in full force and effect, and the Lead Arranger, the
Syndication Agent, the Documentation Agent, the Administrative
Agent and the Credit Parties hereby reserve the right to require
strict compliance with the terms of the Credit Agreement and the
other Loan Documents in the future.

     
24. Reaffirmation. Each of the
Borrower Parties acknowledges and agrees that the security and
other interests granted to the Administrative Agent and the
other Credit Parties pursuant to the Loan Documents to which
each respective Borrower Party is a signatory prior to the date
hereof shall remain outstanding and in full force and effect in
accordance with the Loan Documents, and shall continue to secure
the Obligations, and that the security and other interests
granted to the Administrative Agent and the other Credit Parties
thereby are hereby ratified, confirmed and continued by
execution and delivery hereof. The Loan Documents shall remain
extant and in full force and effect following the execution and
delivery of this Amendment and the other Loan Documents executed
in connection therewith, and each of the Borrower Parties hereby
ratifies and confirms its respective obligations thereunder.

     
25. Amendment Fee. The Borrower
hereby agrees to pay, upon the Effective Date (as defined in
Section 26 below), to each Lender that delivers its consent
to this Amendment on or before 5:00 p.m. (Eastern Daylight
Time) on July 1, 2004, an amendment fee (the
“Amendment Fee”) in the amount of 25 basis
points on the aggregate outstanding principal amount of such
Lender’s Revolving Commitment and Term Loans (other than
the Participated Term Loans) as of the Effective Date. The
Amendment Fee shall be fully earned when due and non-refundable
when paid

     
26. Waiver. To the extent any of the
occurrences described on Schedule 1 hereto constitute any
Default or Event of Default, the Lenders hereby waive, as of the
Effective Date, compliance with each such Defaults and Event of
Default. The foregoing waiver is specifically limited in time
and scope to the individual occurrences described above and
shall not be deemed to extend or apply to any other term,
provision, event or occurrence in existence as of the date
hereof or arising hereafter.

     
27. Conditions to Effectiveness. This
Amendment shall be effective as of the date first written above
(the “Effective Date”) upon the Administrative
Agent’s receipt of

		
	 	     
    (a) a counterpart hereof duly executed by
    each of the Borrower Parties and a Lender Addendum duly executed
    by each of the Required Lenders as provided in Section 32
    of this Amendment,
    
	 
	 	     
    (b) the Credit Parties shall have received
    payment of the Amendment Fee and the Administrative Agent shall
    have received payment of all reasonable fees and expenses
    (including, without limitation, its reasonable legal fees and
    expenses incurred in connection with this Amendment) due and
    payable on the Effective Date in respect of the Credit
    Agreement, this Amendment and the transactions contemplated
    hereby and thereby.
    

43

 

     
28. Representations and Warranties.
Each of the Borrower Parties agrees, represents and warrants in
favor of the Lead Arranger, the Syndication Agent, the
Documentation Agent, the Administrative Agent and the Credit
Parties that:

		
	 	     
    (a) This Amendment has been executed and
    delivered by duly authorized representatives of the Borrower
    Parties, and the Credit Agreement, as modified and amended by
    this Amendment, constitutes a legal, valid and binding
    obligation of the Borrower and is enforceable against the
    Borrower in accordance with its terms, except as enforceability
    may be limited by bankruptcy, insolvency, reorganization or
    similar laws affecting creditors’ rights generally and by
    the application of general equitable principles;
    
	 
	 	     
    (b) After giving effect to this Amendment,
    no Default or Event of Default shall have occurred and be
    continuing;
    
	 
	 	     
    (c) All of the representations and
    warranties made by or with respect to the Borrower Parties, or
    any of them, under the Credit Agreement or any other Loan
    Document, is hereby restated and reaffirmed as true and correct
    in all material respects on and as of the date of this
    Amendment, and after giving effect to this Amendment, as if such
    representation or warranty were made on and as of the date of,
    and after giving effect to, this Amendment (except to the extent
    that any such representation or warranty expressly relates to a
    prior specific date or period); and
    
	 
	 	     
    (d) No event contemplated in connection with
    this Amendment has occurred, which has not been consented to or
    waived, the occurrence of which constitutes, or with the passage
    of time or giving of notice or both would constitute, a material
    default by any of the Borrower Parties under any material
    indenture, agreement or other instrument, or any judgment,
    decree or order, to which any of the Borrower Parties is a party
    or by which any of the Borrower Parties or any of their
    respective properties may be bound or affected.
    

     
29. Acknowledgements. The parties
hereby acknowledge that they have not entered into a mutual
disregard of the terms and provision of the Credit Agreement or
the other Loan Documents, or engaged in any course of dealing at
variance with the terms and provision of the Credit Agreement or
the other Loan Documents. The Borrower hereby further
acknowledges that it shall not rely upon the existence of or
claim or assert that there exists any such course of dealing or
mutual disregard of terms.

     
30. Effect on the Credit Agreement.
Except as specifically provided herein, the Credit Agreement
shall remain in full force and effect, and is hereby ratified,
reaffirmed and confirmed. This Amendment shall be deemed to be a
Loan Document for all purposes.

     
31. Counterparts. This Amendment may
be executed in any number of separate counterparts and by the
different parties hereto on separate counterparts, each of which
shall be deemed an original and all of which, taken together,
shall be deemed to constitute one and the same instrument. In
proving this Amendment in any judicial proceedings, it shall not
be necessary to produce or account for more than one such
counterpart signed by the party against whom such enforcement is
sought. Any signatures delivered by a party by facsimile or
email transmission shall be deemed an original signature hereto.

     
32. Delivery of Lender Addenda. Each
Credit Party shall become a party to this Amendment by
delivering to the Administrative Agent a Lender Addendum,
substantially in the form of Annex A attached hereto, duly
executed by such Credit Party.

     
33. Law of Contract. THIS AMENDMENT
SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS
MADE AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

44

 

     
IN WITNESS WHEREOF, this Amendment has been duly
executed as of the day and year first written above.

	 	 	 
	
    
    BORROWER:

    	 	
    ZIFF DAVIS MEDIA INC.
	 	 	
    By: 
	 	 	

	 	 	
    Name: 
	 	 	

	 	 	
    Title: 
	 	 	

	 
	
    
    BORROWER PARTIES:

    	 	
    ZIFF DAVIS HOLDINGS INC.,

    a Delaware corporation
    
	 	 	
    By: 
	 	 	

	 	 	
    Name: 
	 	 	

	 	 	
    Title: 
	 	 	

	 	 	
    ZIFF DAVIS INTERMEDIATE HOLDINGS INC.,

    a Delaware corporation
    
	 	 	
    By: 
	 	 	

	 	 	
    Name: 
	 	 	

	 	 	
    Title: 
	 	 	

	 	 	
    ZIFF DAVIS PUBLISHING HOLDINGS INC.,

    a Delaware corporation
    
	 	 	
    By: 
	 	 	

	 	 	
    Name: 
	 	 	

	 	 	
    Title: 
	 	 	

	 	 	
    ZIFF DAVIS PUBLISHING INC.,

    a Delaware corporation
    
	 	 	
    By: 
	 	 	

	 	 	
    Name: 
	 	 	

	 	 	
    Title: 
	 	 	

[SIGNATURES CONTINUED ON THE FOLLOWING PAGE]

45

 

	 	 	 
	 	 	
    ZIFF DAVIS INTERNET INC.,

    a Delaware corporation
    
	 	 	
    By: 
	 	 	

	 	 	
    Name: 
	 	 	

	 	 	
    Title: 
	 	 	

	 	 	
    ZIFF DAVIS DEVELOPMENT INC.,

    a Delaware corporation
    
	 	 	
    By: 
	 	 	

	 	 	
    Name: 
	 	 	

	 	 	
    Title: 
	 	 	

	 
	
    
    LEAD ARRANGER:

    	 	
    CIBC WORLD MARKETS CORP.
	 	 	
    By: 
	 	 	

	 	 	
    Name: 
	 	 	

	 	 	
    Title: 
	 	 	

	 
	
    
    SYNDICATION AGENT:

    	 	
    DEUTSCHE BANK TRUST COMPANY AMERICAS
	 	 	
    By: 
	 	 	

	 	 	
    Name: 
	 	 	

	 	 	
    Title: 
	 	 	

	 
	
    
    DOCUMENTATION AGENT:

    	 	
    FLEET NATIONAL BANK
	 	 	
    By: 
	 	 	

	 	 	
    Name: 
	 	 	

	 	 	
    Title: 
	 	 	

	 
	
    
    ADMINISTRATIVE AGENT:

    	 	
    CANADIAN IMPERIAL BANK OF COMMERCE
	 	 	
    By: 
	 	 	

	 	 	
    Name: 
	 	 	

	 	 	
    Title: 
	 	 	

46

 

ANNEX A

FORM OF LENDER ADDENDUM

ZIFF DAVIS MEDIA INC.

AMENDED AND RESTATED CREDIT
AGREEMENT

DATED AS OF AUGUST 12, 2002

     
Reference is made to the Amended and Restated
Credit Agreement, dated as of August 12, 2002, as amended
by that certain First Amendment to Amended and Restated Credit
Agreement dated as of September 17, 2002 (as further
amended, supplemented or otherwise modified from time to time,
the “Credit Agreement”), by and among Ziff
Davis Media Inc., as Borrower, CIBC World Markets Corp., as lead
arranger and bookrunner, Deutsche Bank Trust Company Americas,
as syndication agent, Fleet National Bank, as documentation
agent, Canadian Imperial Bank of Commerce, as administrative
agent (the “Administrative Agent”) and the other
Credit Parties party thereto. Capitalized terms used herein that
are not defined herein shall have the meanings ascribed to them
in the Credit Agreement.

     
The Borrower has requested that the Required
Lenders agree to amend certain provisions of the Credit
Agreement, in each case, on the terms and conditions described
in that certain Second Amendment to Amended and Restated Credit
Agreement dated as of July 1, 2004 (the “Second
Amendment”)

     
By execution and delivery of this Lender Addendum
as provided in Section 32 of the Second Amendment, the
undersigned Credit Party hereby consents to and agrees with all
of the terms and conditions contained in the Second Amendment.

     
THIS LENDER ADDENDUM SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK.

[SIGNATURE ON FOLLOWING PAGE]

47

 

     
IN WITNESS WHEREOF, the parties hereto have
caused this Lender Addendum to be duly executed and delivered by
their proper and duly authorized officers as of the Second
Amendment Date.

		
	 	
    

	 	
    (NAME OF CREDIT PARTY)
    

			
	 	By: 	

		
	 	
    

	 	
    Name:  
	 	
    Title:   

48

 

SCHEDULE 1

		
	1. 	
    Investments were made in Unrestricted
    Subsidiaries from Specified Equity that had been transferred out
    of the Equity Collateral Account into an interest bearing
    account.
    
	 
	2. 	
    Borrower did not make a prepayment of principal
    on the Loans in the amount of 50% of the $65,000 payment
    received from Lionbridge Technologies Inc.
    (“Lionbridge”) in January 2003 in settlement of a suit
    by Lionbridge in connection with the eTesting Labs Disposition.
    
	 
	3. 	
    TM Media Inc. was mistakenly acquired by Ziff
    Davis Media Inc. rather than Ziff Davis Development in September
    2003 for an initial purchase price of $41,000.
    
	 
	4. 	
    Events of Default caused by taking actions during
    the continuance of any Events of Default caused by the above
    occurrences, which actions are prohibited by the Credit
    Agreement during the continuance of an Event of Default
    (including without limitation repurchase of Equity Interests of
    Ziff Davis Holdings Inc., Ziff Davis Development Inc. and Ziff
    Davis Internet Inc. in consideration for cancellation of
    Management Notes issued in connection with the original purchase
    thereof).
    

49

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