Document:

NeuMedia, Inc.

4751 Wilshire Blvd., 3rd Floor

Los Angeles, California 90010

 

December 28, 2011

 

Trinad Management, LLC

2121 Avenue of the Stars, Suite 1650

Los Angeles, California 90067

Attention: Robert Ellin

 

		Re:	Management Agreement, dated as of August 3, 2006 (the “Management Agreement”),
between Mediavest, Inc. (“Mediavest”) and Trinad Management, LLC (“Trinad”)

 

Dear Robert:

 

Reference is made to the above-defined Management
Agreement. NeuMedia, Inc. (“NeuMedia”) is the successor-in-interest to Mediavest. The Management Agreement expired
in accordance with its terms on September 14, 2011. Prior to the expiration of the Management Agreement, Trinad and NeuMedia agreed
to defer, and did defer, payment to Trinad of a portion of the management fee payable to Trinad under the Management Agreement.
The aggregate amount of such deferred management fee is equal to $180,000. In addition, following the expiration of the Management
Agreement, Trinad continued performing services comparable to those set forth in the Management Agreement, and, subject to receiving
the approval by ValueAct SmallCap Master Fund, L.P., or its successor-in-interest, to such payment (the “ValueAct Consent”),
NeuMedia has agreed to pay for such services at the rate set forth in the Management Agreement. The aggregate amount of such fees,
as of the date hereof, is $90,000 (collectively with the $180,000 deferred management fee, the “Deferred Fee”).
This letter agreement sets forth our agreement with respect to the payment of the Deferred Fee.

 

The Deferred Fee shall be payable to Trinad
upon the receipt by NeuMedia of the ValueAct Consent; provided that if, in the determination of NeuMedia’s board of directors
in its reasonable judgment, NeuMedia is unable to pay any or the entire amount of the Deferred Fee at such time, NeuMedia shall
pay only such portion of the Deferred Fee as NeuMedia is then able to pay, with the timing and amounts of further payments to be
determined in the same manner by the board of directors based on NeuMedia’s ability to pay. NeuMedia shall endeavor to pay
all unpaid portions of the Deferred Fee as promptly as reasonably practicable. If Trinad so elects, all or part of the Deferred
Fee may be paid in kind by the issuance of shares of common stock of NeuMedia on such terms as may be approved by the disinterested
directors of NeuMedia’s Board of Directors (which shall, for such purposes, not include Rob Ellin, Peter Guber or Paul Schaeffer).
The Deferred Fee does not accrue interest.

 

Please sign below to indicate your agreement
to the foregoing. This letter agreement may be executed in original, facsimile or other electronic counterparts, each of which
shall be deemed an original and all of which together shall constitute one instrument.

 

    	 

    	 

    
 

 

	 	Very truly yours,
	 	 
	 	NEUMEDIA, INC.
	 	 
	 	By: 	 
	 	Name:	 
	 	Title:	 

 

	AGREED:	 
	 	 
	TRINAD MANAGEMENT, LLC	 
	 	 
	By: 	 	 
	Name:	 	 
	Title:	 	 

 

    	2THIS NOTE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD,
TRANSFERRED, OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE
STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE
STATE SECURITIES LAWS.

 

THIS NOTE AMENDS AND RESTATES THAT CERTAIN
AMENDED AND RESTATED SENIOR SUBORDINATED SECURED NOTE DUE JUNE 21, 2013 (AS THE SAME MAY HAVE BEEN AMENDED, SUPPLEMENTED OR OTHERWISE
MODIFIED FROM TIME TO TIME PRIOR TO THE DATE HEREOF, THE “FIRST AMENDED AND RESTATED NOTE”) ISSUED IN AN ORIGINAL PRINCIPAL
AMOUNT EQUAL TO THREE MILLION FIVE HUNDRED THOUSAND DOLLARS AND ZERO CENTS, WHICH FIRST AMENDED AND RESTATED NOTE AMENDED AND RESTATED
THAT CERTAIN SENIOR SECURED NOTE DATED AS OF JULY 30, 2007 (AS THE SAME MAY HAVE BEEN AMENDED, SUPPLEMENTED OR OTHERWISE MODIFIED
FROM TIME TO TIME PRIOR TO JUNE 21, 2013, THE “ORIGINAL NOTE”) ISSUED IN AN AGGREGATE PRINCIPAL AMOUNT EQUAL TO SIXTEEN
MILLION FIVE HUNDRED THOUSAND DOLLARS AND ZERO CENTS ($16,500,000.00) PURSUANT TO THE SECURITIES PURCHASE AGREEMENT, DATED AS OF
JULY 30, 2007 (AS THE SAME MAY BE AMENDED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME, THE “SECURITIES PURCHASE
AGREEMENT”) BY AND AMONG THE COMPANY AND THE INVESTOR PARTY THERETO, AND THIS NOTE IS ENTITLED TO THE BENEFITS OF THE SECURITIES
PURCHASE AGREEMENT AND TO THE EXERCISE OF THE REMEDIES PROVIDED THEREBY OR OTHERWISE AVAILABLE IN RESPECT THEREOF.

 

ALL INDEBTEDNESS EVIDENCED BY THIS NOTE IS
SUBORDINATED TO OTHER INDEBTEDNESS PURSUANT TO, AND TO THE EXTENT PROVIDED IN, AND IS OTHERWISE SUBJECT TO THE TERMS OF, THE SUBORDINATION
AGREEMENT, DATED AS OF JUNE 21, 2010 (THE "SUBORDINATION AGREEMENT"), AS THE SAME MAY BE AMENDED, SUPPLEMENTED OR OTHERWISE
MODIFIED FROM TIME TO TIME, BY AND AMONG THE INVESTOR (AS ASSIGNEE OF VALUEACT SMALLCAP MASTER FUND, L.P., THE ORIGINAL PARTY THERETO),
THE COMPANY, TRINAD CAPITAL MASTER FUND, LTD. AND NEUMEDIA, INC.

 

$ 3,500,000.00

 

TWISTBOX ENTERTAINMENT, INC.

 

SECOND AMENDED AND RESTATED SENIOR SUBORDINATED
SECURED NOTE DUE JUNE 21, 2013

 

Section 1.             General.

 

FOR VALUE RECEIVED, TWISTBOX
ENTERTAINMENT, INC., a Delaware corporation (the “Company”), hereby promises to pay to the order of TAJA, LLC
(“TAJA”, and together with its successors and assigns, the “Investor”), the principal sum
of THREE MILLION FIVE HUNDRED THOUSAND DOLLARS AND ZERO CENTS ($3,500,000.00), or such lesser amount as shall then equal the outstanding
principal amount hereof, together with interest (“Interest”) thereon at a rate (the “Interest Rate”)
equal to 10.0% per annum from, and including, June 21, 2010 to, but excluding, June 21, 2013, each computed on the basis of a year
of 360 days comprised of twelve 30 day months. The Company represents and warrants that (a) the aggregate amount of interest accruing
and becoming due and payable hereunder on or before July 1, 2011 was $368,958.33, (b) no part of such interest has been paid in
cash and, in lieu of any payment in cash, the Company has made a PIK Election (as hereinafter defined) with respect to all such
interest, causing all such interest to have been added to principal hereunder, and (c) as a result, the total outstanding principal
balance under this Note as of July 1, 2011 was $3,868,958.33. All unpaid principal, together with any then unpaid and accrued interest
and other amounts payable hereunder, shall be due and payable on the earlier of (i) June 21, 2013 (the “Maturity Date”)
or (ii) when such amounts become due and payable as a result of, and following, an Event of Default in accordance with Section
3.

 

    	 

    	 

    
  

This Note (the “Note”)
shall be prepayable without penalty, in whole or in part, at any time at the Company’s option at 100% of the principal amount
plus accrued but unpaid interest to and including the date of prepayment. Any prepayments will be applied first to any accrued
but unpaid interest and then to unpaid principal.

 

Capitalized terms used herein
without definition have the meanings assigned thereto in the Securities Purchase Agreement. In the event of any conflict between
this Note and the Securities Purchase Agreement, the provisions of this Note shall control. Unless the context otherwise requires,
an accounting term not otherwise defined has the meaning assigned to it in accordance with the United States generally accepted
accounting principles (“GAAP”).

 

Interest on this Note shall
accrue from, and including, June 21, 2010 through and until repayment of the principal amount of this Note and payment of all Interest
in full, and shall be payable in cash semi-annually in arrears on each January 1 and July 1 that the Notes are outstanding or,
if any such date shall not be a Business Day, on the next succeeding Business Day to occur after such date (each date upon which
interest shall be so payable, an “Interest Payment Date”), to holders of record on each preceding December 15
and June 15 to the applicable Interest Payment Date, beginning on July 1, 2010, by wire transfer of immediately available funds
to an account at a bank designated in writing by the Investor on reasonable notice. For avoidance of doubt, and notwithstanding
any other provision of this Note, (a) the next Interest Payment Date following the date hereof shall be January 1, 2012 (or, if
such date shall not be a Business Day, the next succeeding Business Day after January 1, 2012) and (b) all interest on this Note
payable on such Interest Payment Date shall be due and payable to TAJA.

 

Notwithstanding the foregoing
provisions of this Section 1, any overdue principal of, overdue Interest on, and any other overdue amounts payable under, this
Note shall bear interest, payable on demand in immediately available funds, for each day from the date payment thereof was due
to the date of actual payment at a rate equal to the sum of (i) the Interest Rate and (ii) an additional two percent (2.00%) per
annum. Subject to applicable law, any interest that shall accrue on overdue interest on this Note as provided in the preceding
sentence and shall not have been paid in full in cash on or before the next Interest Payment Date to occur after the date on which
the overdue interest became due and payable shall itself be deemed to be overdue interest on this Note to which the preceding sentence
shall apply. In addition, notwithstanding the foregoing provisions of this Section 1, if an Event of Default has occurred and is
continuing, then, so long as such Event of Default is continuing, all outstanding principal of this Note shall bear interest, after
as well as before judgment, at a rate equal to the sum of (i) the Interest Rate and (ii) an additional two percent (2.00%) per
annum.

 

Notwithstanding anything
to the contrary set forth herein, until (and including) the Interest Payment Date occurring on January 1, 2012, the Company may,
at its option, in lieu of making any cash payment to the Investor with respect to the Interest Payment Dates occurring on or before
January 1, 2012, elect that the amount of any Interest due and payable on such date be added to the principal amount then due under
this Note. This election by the Company to pay the Interest by adding the amount of such payment to the principal under this Note
is hereafter referred to as the “PIK Election.” The Company shall provide written notice of the PIK Election
to the Investor at least five (5) days before the applicable Interest Payment Date. For the avoidance of doubt, immediately after
each PIK Election, the outstanding principal amount of the Note shall equal the sum of (i) the outstanding principal amount of
the Note immediately before the PIK Election, and (ii) the amount of Interest otherwise due and payable on the applicable Interest
Payment Date. For avoidance of doubt, the Company hereby (a) acknowledges that the amount of interest hereunder due on the next
Interest Payment Date following the date hereof (i.e., January 1, 2012 or, if such date shall not be a Business Day, the
next succeeding Business Day after January 1, 2012) shall be $193,447.92, (b) provides the Investor with written notice of its
PIK Election with respect to all such interest payable on such next Interest Payment Date following the date hereof, (c) acknowledges
that the full amount of such interest shall be added to principal hereunder effective as of January 1, 2012, resulting in a total
outstanding principal balance under this Note of $4,062,406.25 as of such date, and (d) acknowledges that the Company is not entitled
to any further PIK Elections with respect to interest accruing hereunder.

 

    	2

    	 

    

 

In accordance with Section
1(d) of the letter agreement dated as of June 21, 2010, by and among the Investor, the Guarantor, the Lead Participating Investors
party thereto, Jonathan Cresswell and Nathaniel MacLeitch (the “Letter Agreement”), if and to the extent that,
the Guarantor or any other Obligor (as defined in the Subordination Agreement) receives cash proceeds from the sale of the Assets
(as defined in the Letter Agreement) pursuant to Section 1(d)(x) of the Letter Agreement, the Guarantor or such Obligor shall promptly:
remit (and the First Lien Agent and the First Lien Creditors (each as defined in the Subordination Agreement) consent to such remittance)
such cash sales proceeds to Investor to pay in cash the obligations then outstanding under this Note (and Investor agrees that
it will accept such amounts in payment of the Note and, to the extent such amounts represent a satisfaction in full in cash of
the principal amount of this Note and all interest, fees, and all other amounts then due under the Note, it will mark this Note
“Cancelled” and return it to the Company).

 

Section 2.             Repurchase
Right Upon a Fundamental Change.

 

Notwithstanding anything
to the contrary contained herein and in addition to any other right of the Investor, upon the occurrence of a Fundamental Change
the Investor shall have the right for a period of thirty days, by written notice to the Company, to require the Company to repurchase
all of this Note on the repurchase date that is five Business Days after the date of delivery of such notice to the Company at
a price equal to 100% of the outstanding principal amount under this Note plus all accrued and unpaid interest on such principal
amount to, but excluding, the date of such repurchase plus any other amounts due hereunder. A “Fundamental Change”
shall be deemed to have occurred upon the occurrence of any of the following events: (a) any merger or consolidation of the Company
with or into another Person or any sale of all or substantially all of the stock or assets of the Company, unless (i) the holders
of capital stock of the Company immediately prior to such transaction are entitled to exercise, directly or indirectly, 50% or
more of the voting power of all shares of capital stock entitled to vote generally in the election of directors of the continuing
or surviving corporation, and (ii) such Fundamental Change does not result in a reclassification, conversion, exchange or cancellation
of the Common Stock, (b) the approval of a plan relating to the liquidation or dissolution of the Company by its stockholders,
(c) the Company’s first domestic or foreign public offering of its capital stock, (d) a consolidation or merger of NeuMedia,
Inc., formerly known as Mandalay Media, Inc. (the “Guarantor”) with or into any other corporation or corporations,
(e) a sale of all or substantially all of the assets of the Guarantor, (f) the issuance and/or sale by the Guarantor in a single
or integrated transaction of shares of common stock (or securities convertible into shares of common stock) constituting a majority
of the shares of common stock outstanding immediately following such issuance (treating all securities convertible into shares
of common stock as having been fully converted and all options and other rights to acquire shares of common stock or securities
convertible into shares of common stock as having been fully exercised), (g) any other form of acquisition or business combination
where the Guarantor is the target of such acquisition and where a change in control occurs such that the Person or entity seeking
to acquire the Guarantor has the power to elect a majority of the board of directors of the Company as a result of the transaction
(each such event an "Acquisition"), and (h) any liquidation, dissolution or winding up of the Guarantor, provided,
however, that (A) any conversion of the two senior notes, dated as of June 21, 2010, issued by the Guarantor in the principal amount
of $1,500,000 and $1,000,000, respectively (the “NeuMedia Notes”) into equity of the Guarantor, (B) the exercise
of any rights under a Warrant Agreement between the Guarantor and each of the purchasers of the NeuMedia Notes and the issuance
of shares of capital stock of the Guarantor in respect of such exercise or (C) the issuance of any capital stock or options, rights
or warrants to purchase capital stock of the Guarantor to Rob Ellin, Trinad, Peter Guber, Paul Schaeffer or any of their respective
affiliates, shall not constitute a change of control. A “Person” means any individual, corporation, partnership,
joint venture, association, joint-stock company, trust, unincorporated organization, limited liability company or government or
other entity.

 

    	3

    	 

    

 

Section 3.             Events
of Defaults.

 

The occurrence of any of
the following shall constitute an “Event of Default” under this Note:

 

(a)             The
Company shall fail to pay any principal owing under this Note when due; or

 

(b)             The
Company shall fail to pay any interest owing under this Note when due, and such failure shall continue for fourteen (14) days;
or

 

(c)             The
Guarantor, the Company or any Subsidiary shall fail to observe or perform any other covenant, obligation, condition or agreement
contained in this Note (other than those specified in clauses (a) or (b) above), the Amended and Restated Guaranty, dated as of
June 21, 2010, made by Guarantor in favor of the Investor (as the same may be amended, supplemented or otherwise modified from
time to time, and together with all other documents, agreements and instruments executed in connection therewith, the “Guaranty”)
or the Amended and Restated Guarantee and Security Agreement, dated June 21, 2010, among the Company, the Guarantor, the subsidiaries
party thereto and TAJA, LLC, as assignee of ValueAct SmallCap Master Fund, L.P., as Collateral Agent for the benefit of the Investor
(as the same may be amended, supplemented or otherwise modified from time to time, and together with all other documents, agreements
and instruments executed in connection therewith, the “Guarantee and Security Agreement”), and, to the extent
such failure is capable of being cured, such failure shall continue for fourteen (14) days after notice is given to the Company
by the Investors holding more than 25% of the aggregate principal balance of the Notes then outstanding; or

 

(d)             The
Guarantor, the Company or any Subsidiary shall (i) fail to make any payment when due under the terms of any bond, debenture, note
or other evidence of Indebtedness (as defined below) to be paid by the Guarantor, the Company or such Subsidiary (excluding this
Note, which default is addressed by clauses (a) and (b) above, but including any other evidence of Indebtedness of the Guarantor,
the Company or such Subsidiary) and such failure shall continue beyond any period of grace provided with respect thereto, or (ii)
default in the observance or performance of any other agreement, term or condition contained in any such bond, debenture, note
or other evidence of Indebtedness, and the effect of such failure or default is to cause, or permit the holder thereof to cause,
Indebtedness of the Guarantor, the Company and the Subsidiaries in an aggregate amount of Two Hundred and Fifty Thousand Dollars
($250,000) or more to become due prior to its stated date of maturity; or

 

(e)             An
involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or
other relief in respect of the Guarantor, the Company or any Subsidiary or its debts, or of a substantial part of its assets, under
any federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment
of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Guarantor, the Company or any Subsidiary
or for a substantial part of the Guarantor’s, the Company’s or such Subsidiary’s assets, and, in any such case,
such proceeding or petition shall continue undismissed for 60 days or an order or decree approving or ordering any of the foregoing
shall be entered; or

  

    	4

    	 

    

 

(f)             The
Guarantor, the Company or any Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking liquidation,
reorganization or other relief under any federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter
in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition
described in clause (e) of this Section, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for the Guarantor, the Company or any Subsidiary or for a substantial part of the Guarantor’s,
the Company’s or such Subsidiary’s assets, (iv) file an answer admitting the material allegations of a petition filed
against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose
of effecting any of the foregoing; or

 

(g)             Except
for such matters disclosed on Exhibit A hereto, one or more judgments for the payment of money in an amount in excess of Two Hundred
and Fifty Thousand Dollars ($250,000) in the aggregate, outstanding at any one time, shall be rendered against the Guarantor, the
Company and the Subsidiaries and the same shall remain undischarged for a period of sixty (60) days during which execution shall
not be effectively stayed, or any judgment, writ, assessment, warrant of attachment, or execution or similar process shall be issued
or levied against a substantial part of the property of the Guarantor, the Company or any Subsidiary and such judgment, writ, or
similar process shall not be released, stayed, vacated or otherwise dismissed within sixty (60) days after issue or levy; or

 

(h)             Any
Note, the Guarantee and Security Agreement or the Guaranty shall be asserted in writing by the Guarantor, the Company or any Subsidiary
not to be in full force and effect, or the Guarantor, the Company or any Subsidiary shall disavow any of its obligations thereunder;
or

 

(i)             Any
Lien purported to be created under the Guarantee and Security Agreement shall be asserted by the Company or any Subsidiary not
to be, a valid and perfected Lien on any Collateral, with the priority required by the Guarantee and Security Agreement; or

 

(j)             The
Company shall have failed to make filings within sixty (60) days of June 21, 2010 with the United States Patent and Trademark Office
in respect of the security interests granted in the Company’s Trademarks (as defined in the Guarantee and Security Agreement)
to the Investor under the Guarantee and Security Agreement; or

 

(k)             Any
Event of Default under and as defined in the Guarantee and Security Agreement shall have occurred; or

 

(l)             Guarantor
is in default under the NeuMedia Notes.

 

Section 4.             Rights
Of Investor Upon Default.

 

Upon the occurrence or existence
of any Event of Default (other than an Event of Default referred to in Sections 3(e) or 3(f) hereof) and at any time thereafter
during the continuance of such Event of Default, the Investor may, upon the approval of Investor holding more than 25% of the aggregate
principal balance of the Notes then outstanding, by written notice to the Company, declare all outstanding amounts payable by the
Company hereunder to be immediately due and payable without presentment, demand, protest or any other notice of any kind, all of
which are hereby expressly waived, anything contained herein to the contrary notwithstanding. Upon the occurrence or existence
of any Event of Default described in Sections 3(e) or 3(f) hereof, immediately and without notice, all outstanding amounts payable
by the Company hereunder shall automatically become immediately due and payable, without presentment, demand, protest or any other
notice of any kind, all of which are hereby expressly waived, anything contained herein to the contrary notwithstanding. In addition
to the foregoing remedies, upon the occurrence or existence of any Event of Default, the Investor may exercise, upon the approval
of Investor holding more than a majority of the aggregate principal balance of the Notes, any other right, power or remedy permitted
to it by law, either by suit in equity or by action at law, or both

 

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Section 5.            
Affirmative Covenant, Board Observer Rights. For as long as the Note remains outstanding, the Investor shall have the right,
but not the obligation, to designate one individual reasonably acceptable to the Guarantor to serve as an observer (the “Observer”)
who shall be entitled to attend all meetings of each of the boards of directors of the Guarantor, the Company, or any Subsidiary
(each, a “Board”), and any committee thereof in a nonvoting, observer capacity, and to receive (on a concurrent
basis) copies of all notices, minutes, consents and other materials that the Guarantor provides to its directors; provided, however,
that the Observer shall execute a confidentiality agreement, reasonably satisfactory to the Guarantor, with respect to the information
to be provided or the matters to be discussed at any meeting of the Board. Notwithstanding the foregoing, the Guarantor reserves
the right to withhold any information and exclude such Observer from any meeting of the Board, or any portion thereof, if access
to such information or attendance at such meeting could (based on the advice of the Guarantor's counsel) adversely affect the
attorney-client privilege with respect to any matters to be discussed or any matters included in the information to be distributed.

 

Section 6.             Negative
Covenants.

 

Until all principal and interest
and any other amounts due and payable under this Note have been paid in full in cash, the Company (and the Guarantor, in the case
of Section 6(b)) shall not, and shall not permit any Subsidiary to, without the prior written approval of the Investor holding
a majority in principal amount of the Notes:

 

(a)             Indebtedness.
Incur, create, assume or permit to exist any Indebtedness, except 

 

  (i)             
guarantees of the NeuMedia Notes by the Company and any Grantor (as defined in the Guarantee and Security Agreement),
provided that the outstanding principal amount (and the guaranteed amount permitted under this Section 6(a)(i)) of the
NeuMedia Notes does not exceed $2,500,000; 

 

  (ii)             Indebtedness
under this Note, the Guarantee and Security Agreement, the guarantee given by AMV Holding Limited and the debenture securing such
guarantee dated August 23, 2008; and 

 

  (iii)            unsecured
Indebtedness, provided the Indebtedness is expressly subordinate in right of payment to the Note on terms acceptable to
ValueAct. 

 

“Indebtedness”
means (i) all indebtedness, whether or not contingent, for borrowed money or for the deferred purchase price of property or services
(but excluding trade accounts payable in the ordinary course of business not overdue for more than sixty (60) days), (ii) any other
indebtedness that is evidenced by a note, bond, debenture or similar instrument, (iii) all obligations under financing leases or
letters of credit, (iv) all obligations in respect of acceptances issued or created, (v) all liabilities secured by any lien on
any property, and (vi) all guarantee obligations, in each case including the principal amount thereof, any accrued interest thereon
and any prepayment premiums or fees or termination fees with respect thereto.

 

(b)             Affiliate
Transaction. Excluding (x) the transactions with Affiliates as of June 21, 2010 and as set forth on Exhibit B hereto (each, an
“Existing Affiliate Transaction”) and (y) transactions between or among the Company, the Guarantor and its Subsidiaries,
enter into any transaction, including, without limitation, the purchase, sale, or exchange of property or the rendering of any
service, with any Affiliate (each, an “Affiliate Transaction”), unless

 

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  (i)            the
Affiliate Transaction is in the ordinary course of and pursuant to the reasonable requirements of the Guarantor’s or such
Subsidiary’s business and upon fair and reasonable terms no less favorable to the Guarantor or such Subsidiary than would
obtain in a comparable arm’s length transaction with a Person not an Affiliate; and

 

  (A)             if
the Affiliate Transaction or series of related Affiliate Transactions involves aggregate consideration less than or equal to $250,000,
the Guarantor shall deliver to the Investor a resolution of the Board of Directors of the Guarantor set forth in an officers’
certificate certifying that such Affiliate Transaction complies with this covenant and that such Affiliate Transaction has been
approved by a majority of the disinterested members of the Board of Directors of the Guarantor; and

 

  (B)             if
the Affiliate Transaction or series of related Affiliate Transactions involves aggregate consideration greater than $250,000, the
Guarantor shall either deliver to the Investor an opinion as to the fairness to the Guarantor of such Affiliate Transaction from
financial point of view issued by an accounting, appraisal or investment banking firm of national standing or shall receive the
Investor’s affirmative written consent.

 

For the avoidance of doubt,
neither this covenant nor any other shall prohibit or restrict any distribution of any cash between any direct or indirect wholly-owned
subsidiaries of the Guarantor or to the Guarantor from any direct or indirect wholly-owned subsidiary of the Guarantor.

 

(c)             Dividends.
Declare or make, or agree to declare or make, directly or indirectly, any dividends on any Equity Interests (as defined in the
Guarantee and Security Agreement) or apply any of its property or assets to the purchase, redemption or other retirement of, or
set apart any sum for the payment of any dividends on, or for the purchase, redemption or other retirement of, or make any other
distribution by reduction of capital or otherwise in respect of, any Equity Interests, except repurchases of equity incentive grants
issued to employees, officers, directors and agents of the Company and its Subsidiaries in the ordinary course of business, provided
that such repurchases shall not exceed $150,000 in any twelve (12) month period.

 

(d)             Subsidiaries.
Create, own or acquire any Subsidiary (other than any Subsidiary owned as of June 21, 2010), except that the Company and its wholly-owned
subsidiaries may create or own wholly-owned Subsidiaries, provided that any such Subsidiary created or owned in reliance of this
Section 6(d) shall execute a joinder to the Guarantee and Security Agreement in form and substance satisfactory to the Investor
in its sole discretion.

 

Section 7.             Defenses.

 

The obligations of the Company
under this Note shall not be subject to reduction, limitation, impairment, termination, defense, set-off, counterclaim or recoupment
for any reason.

 

This Note is a senior secured
obligation of the Company. The Company’s obligations under this Note are (i) guaranteed by the Guarantor and by the subsidiaries
of the Guarantor and (ii) secured by a security interest in substantially all of the assets of the Guarantor and such Subsidiaries,
in each case pursuant to the terms and provisions of the Guaranty and the Guarantee and Security Agreement. This Note is subject
to the terms and provisions of the Guaranty and the Guarantee and Security Agreement, and the Investor, by its acceptance of this
Note, hereby acknowledges and agrees to such terms and provisions.

 

    	7

    	 

    

 

Section 8.            Transfer
of Note; Lost or Stolen Note.

 

(a)             The
Investor may sell, transfer or otherwise dispose of all or any part of this Note (including without limitation pursuant to a pledge)
to any Person or entity as long as such sale, transfer or disposition is in accordance with the provisions of the Securities Purchase
Agreement. From and after the date of any such sale, transfer or disposition, the transferee hereof shall be deemed to be the holder
of a Note in the principal amount acquired by such transferee, and the Company shall, as promptly as practicable, issue and deliver
to such transferee a new Note identical in all respects to this Note, in the name of such transferee and, if such transferee acquires
less than the entire principal amount of this Note, the Company shall contemporaneously issue to the Investor a new Note identical
in all respects to this Note, representing the outstanding balance of this Note. The Company shall be entitled to treat the original
Investor as the holder of this entire Note unless and until it receives written notice of the sale, transfer or disposition hereof.

 

(b)             Upon
receipt by the Company of evidence of the loss, theft, destruction or mutilation of this Note, and (in the case of loss, theft
or destruction) of indemnity or security reasonably satisfactory to the Company, and upon surrender and cancellation of the Note,
if mutilated, the Company shall execute and deliver to the Investor a new Note identical in all respects to this Note.

 

Section 9.            Attorneys’
and Collection Fees.

 

Should the indebtedness evidenced
by this Note or any part hereof be collected at law or in equity or in bankruptcy, receivership or other court proceedings, the
Company agrees to pay, in addition to the principal and interest due and payable hereon, all costs of collection, including reasonable
attorneys’ fees and expenses, incurred by the Investor or its agent in collecting or enforcing this Note.

 

Section 10.          Indemnification.

 

(a)             The
Company shall indemnify the Investor, and any other Person directly or indirectly controlling or controlled by or under direct
or indirect common control with such Investor (each an “Affiliate” of the Investor) (each such Person being
called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses, including the fees, charges, disbursements of any counsel for any Indemnitee, incurred by or
asserted against any Indemnitee by a third party arising out of, in connection with, or as a result of (i) the execution or delivery
of this Note, the Securities Purchase Agreement, the Guarantee and Security Agreement, the Guaranty or any agreement or instrument
contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or the consummation
of or the use of the proceeds therefrom, (ii) the breach by the Company or any Subsidiary of any representation, warranty, covenant
or agreement contained herein, in the Securities Purchase Agreement, the Guaranty or in the Guarantee and Security Agreement, or
(iii) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based
on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto; provided that such indemnity
shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses
are determined by judgment of a court of competent jurisdiction to have primarily resulted from the gross negligence or willful
misconduct of such Indemnitee.

 

(b)             To
the extent permitted by applicable law, the Company shall not assert, and hereby waives, any claim against any Indemnitee, on any
theory of liability, for special, indirect, consequential or punitive damages arising out of, in connection with, or as a result
of, this Note, the Securities Purchase Agreement, the Guarantee and Security Agreement or any agreement or instrument contemplated
hereby or thereby, or the use of the proceeds thereof, other than claims predicated upon the gross negligence or willful misconduct
of such Indemnitee.

 

    	8

    	 

    

 

Section 11.           Waivers.

 

(a)             The
Company hereby waives presentment, demand for payment, notice of dishonor, notice of protest and all other notices or demands in
connection with the delivery, acceptance, performance or default of this Note. No delay by the Investor in exercising any power
or right hereunder shall operate as a waiver of any power or right, nor shall any single or partial exercise of any power or right
preclude other or further exercise thereof, or the exercise thereof, or the exercise of any other power or right hereunder or otherwise;
and no waiver whatsoever or modification of the terms hereof shall be valid unless set forth in writing by the Investor and then
only to the extent set forth therein.

 

(b)             The
Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner
whatsoever claim or take the benefit or advantage of, any usury law wherever enacted, now or at any time hereafter in force, that
may affect the covenants or the performance of this Note; and the Company (to the extent that it may lawfully do so) hereby expressly
waives all benefit or advantage of any such law, and covenants that it shall not, by resort to any such law, hinder, delay or impede
the execution of any power herein granted to the Investor, but shall suffer and permit the execution of every such power as though
no such law has been enacted.

 

Section 12.           Amendments.

 

No amendment, modification
or other change to, or waiver of any provision of, this Note may be made unless such amendment, modification or change is set forth
in writing and is signed by the Company and Investor holding more than 75% of the aggregate principal balance of the Notes.

 

Section 13.           Governing
Law; Jurisdiction; Consent to Service of Process; Waiver of Jury Trial.

 

(a)             THIS
AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING, WITHOUT LIMITATION,
SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND NEW YORK CIVIL PRACTICE LAWS AND RULES 327(b).

 

(b)             THE
COMPANY HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE SUPREME
COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES’ DISTRICT COURT FOR THE SOUTHERN DISTRICT
OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR ANY OTHER TRANSACTION DOCUMENT IN CONNECTION WITH THIS NOTE OR THE NEUMEDIA NOTES, OR FOR RECOGNITION OR ENFORCEMENT OF ANY
JUDGMENT, AND EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION
OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH
OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN
OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT SHALL AFFECT ANY
RIGHT THAT INVESTOR MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AGAINST THE COMPANY OR ITS
PROPERTIES IN THE COURTS OF ANY JURISDICTION.

 

(c)             THE
COMPANY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION
WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
NOTE, THE SECURITIES PURCHASE AGREEMENT OR THE GUARANTEE AND SECURITY AGREEMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS
SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE DEFENSE OF AN INCONVENIENT
FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

 

    	9

    	 

    
  

(d)             EACH
PARTY TO THIS AGREEMENT IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 15. NOTHING IN
THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

 

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

 

Section 14.           Successors
and Assigns.

 

The terms and conditions
of this Note shall inure to the benefit of and be binding upon the respective successors (whether by merger or otherwise) and permitted
assigns of the Company and the Investor. The Company may not assign its rights or obligations under this Note.

 

Section 15.           Notices.

 

Whenever notice is required
to be given under this Note, unless otherwise provided herein, such notice shall be delivered in accordance with Section 9.4 of
the Securities Purchase Agreement.

 

Section 16.           Entire
Agreement.

 

The Securities Purchase Agreement,
the Notes, the Guaranty, the Guarantee and Security Agreement and the other Secured Transaction Documents (as defined in the Guarantee
and Security Agreement) constitute the full and entire understanding and agreement between the parties with regard to the subjects
hereto and thereof.

 

Section 17.           Headings.

 

The headings used in this
Note are used for convenience only and are not to be considered in construing or interpreting this Note.

 

Section 18.           Severability.

 

In case any one or more of
the provisions of this Note shall be held invalid, illegal or unenforceable, in any respect for any reason, the validity, legality
and enforceability of any such provision in every other respect and of the remaining provisions shall not in any way be affected
or impaired thereby, it being intended that all of the provisions hereof shall be enforceable to the fullest extent permitted by
law.

 

    	10

    	 

    

 

[Signature Page Follows]

 

    	11

    	 

    

  

IN
WITNESS WHEREOF, the Company has caused this Second Amended and Restated Senior Subordinated Secured Note to be duly executed by
its duly authorized officer as of the date indicated below.

  

	Date:  December 16, 2011	 
	 	 
	 	TWISTBOX ENTERTAINMENT, INC.
	 	 
	 	By:	 
	 	Name:
	 	Title:

 

	Consented by (pursuant to the
	Guaranty, given as of June 21,
	 2010, by the Guarantor to the
	Investors):
	 
	NEUMEDIA, INC., formerly known as Mandalay Media, Inc.

 

	By:	 	 
	Name: [   ]
	Title: [   ]

 

	Note No.	[___]
	Amount:	$3,868,958.33 as of July 1, 2011
	Investor Name: 	TAJA, LLC
	Address:	c/o David J. Barton, Esq.
	 	Pachulski Stang Ziehl & Jones LLP
	 	Thirteenth Floor
	 	Los Angeles, CA 90067
	Tel:	(310) 277-6910
	Fax:	(310) 201-0760

 

    	12

    	 

    

EXHIBIT A

 

Existing Litigation

 

1. Any litigation arising
from the conduct of the AMV subsidiaries after the date of this Note.

 

2. Any claim or litigation
involving Vivid Media, Inc.

 

3. Any claims or litigation
involving Penthouse.

 

4. Any claims or litigation
involving Cardplayer.

 

5. Any claims or litigation
involving former legal counsel to NeuMedia, Inc.

 

    	13

    	 

    

EXHIBIT B

 

Existing Affiliate Transactions

 

	 	·	Trinad management agreement - $90,000 per quarter through September 2011;
	 	 	 
	 	·	Trinad – rental sublet of Century City office – month to month – presently at $5,000 per month; and
	 	 	 
	 	·	Berkshire holdings  - rental of Sherman Oaks office premises - $21,000 per month through July 15, 2010.

    	14

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