Document:

Unassociated Document

    

    THIS
      WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
      BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR THE SECURITIES LAWS
      OF ANY STATE. THIS WARRANT AND THE UNITS OF MEMBERSHIP INTEREST ISSUABLE UPON
      EXERCISE OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, TRANSFERRED
      OR HYPOTHECATED UNLESS REGISTERED UNDER SAID ACT AND STATE SECURITIES LAWS,
      PURSUANT TO AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS OR ON THE OPINION
      OF THE REGISTERED HOLDER’S COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT
      SUCH REGISTRATION IS NOT REQUIRED.

    

    
      	 	
              Number
                of Shares: 5,000,000

            
	 	
              (subject
                to adjustment)

            
	
              Date
                of Issuance: October __, 2006

            	 
	
              Original
                Issue Date: October __, 2006

            	 

    

    

     

    INFOSEARCH
      MEDIA, INC.

     

    COMMON
      STOCK PURCHASE WARRANT

     

    (Void
      after October __, 2011)

     

    InfoSearch
      Media, Inc., a Delaware corporation (the “Company”),
      for
      value received, hereby certifies that Demand Media, Inc. or its registered
      assigns (the “Registered
      Holder”),
      is
      entitled, subject to the terms and conditions set forth below, to purchase
      from
      the Company, at any time or from time to time on or after the Original Issue
      Date through 5:00 p.m. (Eastern time) on October __, 2011, 5,000,000 (Five
      Million) shares of common stock, $.001 par value per share, of the Company
      (“Common Stock”),
      at a
      purchase price equal to the average of (x) the average closing price of the
      Company’s common stock on the 10 (Ten) trading days ending September 22, 2006
      and (y) the average closing price on the 10 (Ten) trading days immediately
      following the execution and delivery of the Asset purchase Agreement, between
      the Company and Demand Media, Inc. (including the trading day that the Asset
      Purchase Agreement is executed if the Company makes a public announcement with
      respect thereto prior to 10:00 AM Eastern Time on such date, but otherwise
      excluding such trading day). The shares purchasable upon exercise of this common
      stock purchase warrant (this “Warrant”),
      and
      the purchase price per share, each as adjusted pursuant to the provisions of
      this Warrant, are hereinafter referred to as the “Warrant
      Shares”
and
      the
“Purchase
      Price,”
      respectively.

     

    1. Exercise.

     

    (a) Exercise
      for Cash.
      After
      the Original Issue Date, the Registered Holder may, at its option, exercise
      this
      Warrant, in whole or in part and at any time or from time to time, by delivery
      to the Company at the Company’s principal executive office, or at such other
      office or agency as the Company may designate, of this Warrant, a written notice
      of exercise in a form substantially similar to that attached hereto as
Exhibit I
      duly
      executed by the Registered Holder and full payment of the Purchase Price on
      the
      number of Warrant Shares to be purchased on such exercise , (the “Aggregate
      Purchase Price”)
      by (i)
      wire transfer of immediately available funds or certified cashier’s check or
      money order payable to the Company in lawful money of the United States or
      (ii) the surrender to the Company of debt or equity securities of the
      Company having a Fair Market Value (as that term is defined below) equal to
      the
      Aggregate Purchase Price; provided, that for such purposes, for purposes of
      this
      Section, the Fair Market Value of any note or other debt security or any
      preferred stock shall be deemed to equal the aggregate outstanding principal
      amount or liquidation value thereof, plus all accrued and unpaid interest
      thereon or accrued or declared and unpaid dividends thereon. 

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

     

    (b) Cashless
      Exercise.
      

     

    (i) In
      addition to the payment methods set forth in Section 1(a), the Registered
      Holder may elect to exercise this Warrant, in whole or in part, on a cashless
      basis, by delivery to the Company, at the Company’s principal executive office,
      or at such other office or agency as the Company may designate, of this Warrant
      and a written notice of exercise in a form substantially similar to that
      attached hereto as Exhibit I
      duly
      executed by the Registered Holder and on the cancellation of the Registered
      Holder’s right to purchase a portion of the Warrant Shares in payment of the
      Aggregate Purchase Price. In the event of an exercise of this Warrant pursuant
      to this Section, the number of Warrant Shares issued to the Registered Holder
      shall be determined according to the following formula: 

     

    X
      =      Y(A-B)

    A

     

    Where:

    

      
        	 	
                X
                  =
                  

              	
                the
                  number of Warrant Shares that shall be issued to the Registered
                  Holder;
                  

              

      

       

      
        	 	
                Y
                  =

              	
                the
                  number of Warrant Shares for which this Warrant is being exercised
                  (including the number of Warrant Shares issued to the Registered
                  Holder
                  and the number of Warrant Shares being cancelled in payment of
                  the
                  Aggregate Purchase Price); 

              

      

       

      
        	 	
                A
                  =

              	
                the
                  Fair Market Value (as that term is defined below) of one share
                  of Common
                  Stock; and

              

      

       

      
        	 	
                B
                  =

              	
                the
                  Purchase Price in effect on the date of
                  exercise.

              

      

       

    

    (ii) The
      “Fair
      Market Value”
per
      share of Common Stock shall be determined as follows:

     

    (A) If
      the
      Common Stock is listed on a national securities exchange, the Nasdaq National
      Market, the Nasdaq OTC Bulletin Board or another nationally recognized trading
      system as of the Exercise Date (as that term is defined in Section 1(d)), the
      Fair Market Value per share of Common Stock shall be the average of the closing
      prices of the Common Stock thereon over the 30 day period ending 3 days prior
      to
      the Exercise Date. 

     

    (B) If
      the
      Common Stock is not listed on a national securities exchange, the Nasdaq
      National Market, the Nasdaq OTC Bulletin Board or another nationally recognized
      trading system as of the Exercise Date, the Fair Market Value per share of
      Common Stock shall be the amount determined most recently by the Board of
      Directors of the Company (the “Board”)
      to
      represent the fair market value per share of the Common Stock (including without
      limitation a determination for purposes of granting Common Stock options or
      issuing Common Stock under any plan, agreement or arrangement with employees
      of
      the Company); and, upon request of the Registered Holder, the Board (or a
      representative thereof) shall, as promptly as reasonably practicable but in
      any
      event not later than 10 days after such request, notify the Registered Holder
      of
      the Fair Market Value per share of Common Stock and furnish the Registered
      Holder with reasonable documentation of the Board’s determination of such Fair
      Market Value. Notwithstanding the foregoing, if the Board has not made such
      a
      determination within the 3-month period prior to the Exercise Date, then the
      Fair Market Value shall be the fair value per share of the Common Stock, as
      mutually determined by the Board and the Registered Holder. If such parties
      are
      unable to reach agreement within a reasonable period of time (provided, that
      any
      period of time in excess of 15 days shall be deemed not to be reasonable),
      such
      fair value shall be determined by an independent appraiser experienced in
      valuing securities jointly selected by the Board and the Registered Holder.
      The
      determination of the appraiser shall be final and binding upon the parties
      and
      the Company shall pay the fees and expenses of such appraiser. 

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

     

    (c) “Easy
      Sale” Exercise.
      In lieu
      of the payment methods set forth in Sections 1(a) and (b), the Registered
      Holder may pay the Aggregate Purchase Price through a “same day sale” commitment
      from the Registered Holder, whereby the Registered Holder irrevocably elects
      to
      exercise this Warrant and to sell at least that number of Warrant Shares
      purchased as a result of such exercise as necessary to pay the Aggregate
      Purchase Price and the Registered Holder commits upon its receipt of the
      proceeds of the same day sale to forward the Aggregate Purchase Price directly
      to the Company, with any sale proceeds in excess of the Aggregate Purchase
      Price
      being for the sole benefit of the Registered Holder; provided; however, that
      the
      maximum number of Warrant Shares that may be utilized to pay the Aggregate
      Purchase price under this Section 1(c) shall not exceed the Daily Sale Limit
      (as
      such term is defined in Section 16).

     

    (d) Exercise
      Date.
      Each
      exercise of this Warrant shall be deemed to have been effected immediately
      prior
      to the close of business on the day on which this Warrant shall have been
      surrendered to the Company as provided in Sections 1(a) or 1(b) (the
“Exercise
      Date”).
      At
      such time, the person or persons in whose name or names any certificates for
      Warrant Shares shall be issuable upon such exercise as provided in
      Section 1(e) shall be deemed to have become the holder or holders of record
      of the Warrant Shares represented by such certificates.

     

    (e) Issuance
      of Certificates.
      As soon
      as practicable after the exercise of this Warrant in whole or in part, and
      in
      any event within 5 business days thereafter, the Company, at its expense, will
      cause to be issued in the name of, and delivered to, the Registered Holder,
      or
      as the Registered Holder (upon payment by the Registered Holder of any
      applicable transfer taxes) may direct:

     

    (i) a
      certificate or certificates for the number of full Warrant Shares to which
      the
      Registered Holder shall be entitled upon such exercise plus, in lieu of any
      fractional share to which the Registered Holder would otherwise be entitled,
      cash in an amount determined pursuant to Section 3; and

     

    (ii) in
      case
      such exercise is in part only, a new warrant or warrants (dated the date hereof)
      of like tenor, calling in the aggregate on the face or faces thereof for the
      number of Warrant Shares equal (without giving effect to any adjustment therein)
      to the number of such shares called for on the face of this Warrant minus the
      number of Warrant Shares for which this Warrant was so exercised (which, in
      the
      case of an exercise pursuant to subsection 1(b), shall include both the
      number of Warrant Shares issued to the Registered Holder pursuant to such
      partial exercise and the number of Warrant Shares subject to the portion of
      the
      Warrant being cancelled in payment of the Aggregate Purchase Price).

     

    (f) Government
      Filings and Approvals.
      The
      Company shall use its best efforts to assist and cooperate with any Registered
      Holder required to make any governmental filings or obtain any governmental
      approvals prior to or in connection with any exercise of this Warrant
      (including, without limitation, making any filings required to be made by the
      Company). 

     

    (g) Conditional
      Exercise.
      Notwithstanding any other provision of this Warrant, if the exercise of all
      or
      any portion of this Warrant is to be made in connection with a registered public
      offering, a sale of the Company or any other transaction or event, such exercise
      may, at the election of the Registered Holder, be conditioned upon consummation
      of such transaction or event in which case such exercise shall not be deemed
      effective until the consummation of such transaction or event. 

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

     

    2. Adjustments.
      In
      order to prevent dilution of the rights granted under this Warrant and to grant
      the Registered Holder certain additional rights, from and after the date on
      which this Warrant was first issued (the “Original
      Issue Date”)
      the
      Purchase Price and number of Warrant Shares shall be subject to adjustment
      from
      time to time as provided in this Section. 

     

    (a) Adjustment
      for Certain Dividends and Distributions.
      In the
      event the Company at any time, or from time to time after the Original Issue
      Date shall make or issue, or fix a record date for the determination of holders
      of Common Stock entitled to receive, a dividend or other distribution payable
      in
      additional shares of Common Stock, then and in each such event the Purchase
      Price then in effect immediately before such event shall be decreased as of
      the
      time of such issuance or, in the event such a record date shall have been fixed,
      as of the close of business on such record date, by multiplying the Purchase
      Price then in effect by a fraction:

     

    (A) the
      numerator of which shall be the total number of shares of Common Stock issued
      and outstanding immediately prior to the time of such issuance or the close
      of
      business on such record date, and

     

    (B) the
      denominator of which shall be the total number of shares of Common Stock issued
      and outstanding immediately prior to the time of such issuance or the close
      of
      business on such record date plus the number of shares of Common Stock issuable
      in payment of such dividend or distribution;

     

    provided,
      however,
      that if
      such record date shall have been fixed and such dividend is not fully paid
      or if
      such distribution is not fully made on the date fixed therefor, the Purchase
      Price shall be recomputed accordingly as of the close of business on such record
      date and thereafter the Purchase Price shall be adjusted pursuant to this
      paragraph as of the time of actual payment of such dividends or distributions.
      The number of Warrant Shares issuable upon exercise of this Warrant shall be
      increased proportionately to any such decrease in the Purchase
      Price.

     

    (b) Adjustments
      for Other Dividends and Distributions.
      In the
      event the Company at any time or from time to time after the Original Issue
      Date
      shall make or issue, or fix a record date for the determination of holders
      of
      Common Stock entitled to receive, a dividend or other distribution payable
      in
      securities of the Company (other than shares of Common Stock) or in cash or
      other property (other than regular cash dividends paid out of earnings or earned
      surplus, determined in accordance with generally accepted accounting
      principles), then and in each such event provision shall be made so that the
      Registered Holder shall receive upon exercise hereof, in addition to the number
      of shares of Common Stock issuable hereunder, the kind and amount of securities
      of the Company, cash or other property which the Registered Holder would have
      been entitled to receive had this Warrant been exercised on the date of such
      event (immediately prior to such event) and had the Registered Holder
      thereafter, during the period from the date of such event to and including
      the
      Exercise Date, retained any such securities receivable during such period,
      giving application to all adjustments called for during such period under this
      Section with respect to the rights of the Registered Holder.

     

    (c) Adjustment
      for Reclassification, Exchange and Substitution.
      If at
      any time after the Original Issue Date while this Warrant remains outstanding
      and unexpired in whole or in part, the Common Stock issuable upon exercise
      of
      this Warrant is changed (including by way of a stock split, reverse stock split,
      recapitalization or similar change) into the same or a different number of
      shares of any class or classes of stock (including Common Stock), this Warrant
      will thereafter represent the right to acquire such number and kind of
      securities as the Registered Holder would have been entitled to receive had
      this
      Warrant been exercised immediately prior to such change or event and the
      Purchase Price per security underlying this Warrant therefor shall be
      appropriately and proportionately adjusted, all subject to further adjustment
      in
      this Section (e.g., by way of example, the Purchase Price per share would be
      proportionately decreased in the event of a stock split and would be
      proportionately increased in the event of a reverse stock split). 

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

     

    (d) Adjustment
      for Reorganization.
      Any
      reorganization, recapitalization, reclassification, consolidation, merger,
      sale
      of all or substantially all of the Company’s assets or other transaction
      involving the Company in which the Common Stock is converted into or exchanged
      for securities, cash or other property (other than a transaction covered by
      Sections 2(a) and 2(b)) is referred to herein as an “Reorganization”.
      Prior
      to the consummation of any such Reorganization, the Company shall make
      appropriate provision (in form and substance satisfactory to Registered Holders
      holding warrants to purchase a majority of the Warrant Shares originally
      underlying this Warrant then remaining outstanding and unexpired (the
“Outstanding
      Warrants”))
      to
      ensure that the Registered Holder shall have the right to receive, in lieu
      of or
      in addition to (as the case may be) such shares of Common Stock immediately
      acquirable and receivable upon exercise of this Warrant, the kind and amount
      of
      securities, cash or other property as may be issued or payable with respect
      to
      or in exchange for the number of shares of Common Stock immediately acquirable
      and receivable upon exercise of this Warrant had such Reorganization not taken
      place. In such case, appropriate adjustment (in form and substance satisfactory
      to the Registered Holders of a majority of the Outstanding Warrants then
      remaining outstanding and unexpired) shall be made with respect to the
      Registered Holder’s rights and interests to ensure that the provisions of this
      Section shall thereafter be applicable to this Warrant (including, in the case
      of any Reorganization where the successor entity or purchasing entity is other
      than the Company, an immediate reduction to the Purchase Price to the value
      of
      the Common Stock reflected by the terms of the Reorganization and a
      corresponding increase in the number of shares of Common Stock acquirable and
      receivable upon exercise of this Warrant, if the value so reflected is less
      than
      the Purchase Price then in effect immediately prior to such Reorganization).
      The
      Company shall not effect any reorganization, recapitalization, consolidation
      or
      merger unless, prior to the consummation thereof, the successor entity (if
      other
      than the Company) resulting from the consolidation or merger or the entity
      purchasing such assets assumes by written instrument (in form and substance
      satisfactory to the Registered Holders of a majority of the Outstanding Warrants
      then remaining outstanding and unexpired) the obligation to deliver to each
      Registered Holder such shares of stock, securities or assets as, in accordance
      with the foregoing provisions, such holder may be entitled to acquire; provided,
      that any assumption shall not relieve the Company of its obligations hereunder.
      

     

    (e) Other
      Events.
      If any
      event occurs that would adversely affect the Registered Holder’s rights but
      which has not been expressly provided for by this Section (including, without
      limitation, the granting of stock appreciation rights, phantom stock rights
      or
      other rights with equity features), then the Board will make an appropriate
      adjustment in the Purchase Price and number of Warrant Shares to protect the
      Registered Holder’s rights; provided, however, that no such adjustment will
      increase the Purchase Price or decrease the number of Warrant Shares obtainable
      as otherwise determined pursuant to this Section. 

     

    (f) Certificate
      as to Adjustments.
      Upon
      the occurrence of each adjustment or readjustment of the Purchase Price pursuant
      to this Section, the Company at its expense shall, as promptly as reasonably
      practicable but in any event not later than 10 days thereafter, compute such
      adjustment or readjustment in accordance with the terms hereof and furnish
      to
      the Registered Holder a certificate setting forth such adjustment or
      readjustment (including the kind and amount of securities, cash or other
      property for which this Warrant shall be exercisable and the Purchase Price)
      and
      showing in detail the facts upon which such adjustment or readjustment is based.
      The Company shall, as promptly as reasonably practicable after the written
      request at any time of the Registered Holder (but in any event not later than
      10
      days thereafter), furnish or cause to be furnished to the Registered Holder
      a
      certificate setting forth (i) the Purchase Price then in effect and
      (ii) the number of shares of Common Stock and the amount, if any, of other
      securities, cash or property which then would be received upon the exercise
      of
      this Warrant.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

     

    3. Fractional
      Shares.
      The
      Company shall not be required upon the exercise of this Warrant to issue any
      fractional shares, but shall pay the value thereof to the Registered Holder
      in
      cash on the basis of the Fair Market Value per share of Common
      Stock.

     

    4. Investment
      Representations.
      The
      initial Registered Holder represents and warrants to the Company as
      follows:

     

    (a) Investment.
      It is
      acquiring this Warrant, and (if and when it exercises this Warrant) it will
      acquire the Warrant Shares, for its own account for investment and not with
      a
      view to, or for sale in connection with, any distribution thereof, nor with
      any
      present intention of distributing or selling the same; and the Registered Holder
      has no present or contemplated agreement, undertaking, arrangement, obligation,
      indebtedness or commitment providing for the disposition thereof. 

     

    (b) Accredited
      Investor.
      The
      Registered Holder is an “accredited investor” as defined in Rule 501(a) under
      the Securities Act of 1933, as amended (the “Act”).

     

    (c) Experience.
      The
      Registered Holder has made such inquiry concerning the Company and its business
      and personnel as it has deemed appropriate; and the Registered Holder has
      sufficient knowledge and experience in finance and business that it is capable
      of evaluating the risks and merits of its investment in the Company. 

     

    5. Transfers.

     

    (a) This
      Warrant and the Warrant Shares shall not be sold or transferred unless either
      (i) they first shall have been registered under the Act, or (ii) the
      Company first shall have been furnished with an opinion of legal counsel,
      reasonably satisfactory to the Company, to the effect that such sale or transfer
      is exempt from the registration requirements of the Act. Notwithstanding the
      foregoing, no registration or opinion of counsel shall be required for
      (i) a transfer by a Registered Holder which is an entity to a parent,
      subsidiary or affiliate of such entity or to a stockholder or member of such
      entity or to the estate of any such stockholder or member, a transfer by a
      Registered Holder which is a partnership to a partner of such partnership or
      a
      retired partner of such partnership or to the estate of any such partner or
      retired partner, or a transfer by a Registered Holder which is a limited
      liability company to a member of such limited liability company or a retired
      member or to the estate of any such member or retired member, provided
      that the
      transferee in each case agrees in writing to be subject to the terms of this
      Section or (ii) a transfer made in accordance with Rule 144 under the
      Act.

     

    (b) Each
      certificate representing Warrant Shares shall bear a legend substantially in
      the
      following form:

     

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED, SOLD OR OTHERWISE
      TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL SUCH SECURITIES ARE
      REGISTERED UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY
      IS OBTAINED TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED.”

     

    The
      foregoing legend shall be removed from the certificates representing any Warrant
      Shares, at the request of the holder thereof, (i) at such time as they become
      eligible for resale pursuant to Rule 144(k) under the Act or are sold
      pursuant to Rule 144 and (ii) at any time that a Registration Statement is
      in
      effect covering resales of the Warrant Shares.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

     

    (c) The
      Company will maintain a register containing the name and address of the
      Registered Holder of this Warrant. The Registered Holder may change its address
      as shown on the warrant register by written notice to the Company requesting
      such change.

     

    (d) Subject
      to the provisions of this Section, this Warrant and all rights hereunder are
      transferable, in whole or in part, upon surrender of this Warrant with a
      properly executed assignment in a form substantially similar to that attached
      hereto as Exhibit II
      to
      the
      Company at its principal office or, if another office or agency has been
      designated by the Company for such purpose, then at such other office or
      agency.

     

    (e) The
      Company shall not close its books against the transfer of this Warrant or any
      share of Common Stock issued or issuable upon the exercise of this Warrant
      in
      any manner which interferes with the timely exercise of this Warrant. The
      Company shall from time to time take all such action as may be necessary to
      ensure that the par value per share of the unissued Common Stock acquirable
      upon
      exercisable of this Warrant is at all times equal to or less than the Purchase
      Price then in effect. 

     

    6. No
      Impairment; No Inconsistent Agreements.
      The
      Company will not, by amendment of its charter or through any reorganization,
      transfer of assets, consolidation, merger, dissolution, issue or sale of
      securities or any other voluntary action, avoid or seek to avoid the observance
      or performance of any of the terms of this Warrant, but will at all times in
      good faith assist in the carrying out of all such terms and in the taking of
      all
      such action as may be necessary or appropriate in order to protect the rights
      of
      the Registered Holder against impairment. Without limiting the generality of
      the
      foregoing, the Company will (a) not increase the par value of any shares of
      Common Stock obtainable upon the exercise of this Warrant and (b) take all
      such actions as may be necessary or appropriate in order that the Company may
      validly and legally issue fully paid and nonassessable shares of Common Stock
      upon the exercise of this Warrant. The Company will not enter into any agreement
      with respect to its securities which is inconsistent with the rights granted
      to
      the Registered Holder or otherwise conflicts with the provisions of this
      Warrant. The rights granted to the Registered Holder hereunder do not in any
      way
      conflict with and are not inconsistent with the rights granted to holders of
      the
      Company’s securities under any other agreements. 

     

    7. Notices
      of Record Date, etc.
      In the
      event:

     

    (a) the
      Company shall take a record of the holders of its Common Stock (or other stock
      or securities at the time deliverable upon the exercise of this Warrant) for
      the
      purpose of entitling or enabling them to receive any dividend or other
      distribution, or to receive any right to subscribe for or purchase any shares
      of
      stock of any class or any other securities, or to receive any other right;
      or

     

    (b) of
      any
      capital reorganization of the Company, any reclassification of the Common Stock
      of the Company, any consolidation or merger of the Company with or into another
      corporation (other than a consolidation or merger in which the Company is the
      surviving entity and its Common Stock is not converted into or exchanged for
      any
      other securities or property), or any transfer of all or substantially all
      of
      the assets of the Company; or

     

    (c) of
      the
      voluntary or involuntary dissolution, liquidation or winding-up of the Company,
      then, and in each such case, the Company will send or cause to be sent to the
      Registered Holder a notice specifying, as the case may be, (i) the record date
      for such dividend, distribution or right, and the amount and character of such
      dividend, distribution or right, or (ii) the effective date on which such
      reorganization, reclassification, consolidation, merger, transfer, dissolution,
      liquidation or winding-up is to take place, and the time, if any is to be fixed,
      as of which the holders of record of Common Stock (or such other stock or
      securities at the time deliverable upon the exercise of this Warrant) shall
      be
      entitled to exchange their shares of Common Stock (or such other stock or
      securities) for securities or other property deliverable upon such
      reorganization, reclassification, consolidation, merger, transfer, dissolution,
      liquidation or winding-up. Such notice shall be sent at least 20 days prior
      to
      the record date or effective date for the event specified in such notice.
      Nothing herein shall prohibit the Registered Holder from exercising this Warrant
      during the 20 day period commencing on the date of such notice. 

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

     

    8. Reservation
      of Stock.
      The
      Company covenants that it will at all times reserve and keep available, from
      its
      authorized and unissued Common Stock solely for issuance and delivery upon
      the
      exercise of this Warrant and free of preemptive rights, such number of Warrant
      Shares and other securities, cash and/or property, as from time to time shall
      be
      issuable upon the exercise of this Warrant. The Company further covenants that
      it shall, from time to time, take all steps necessary to increase the authorized
      number of shares of its Common Stock if at any time the authorized number of
      shares of Common Stock remaining unissued is insufficient to permit the exercise
      of this Warrant. 

     

    9. Issuance
      Upon Exercise.
      All
      shares of Common Stock issuable upon exercise of this Warrant will be duly
      authorized and validly issued, fully paid and nonassessable and will be free
      of
      restrictions on transfer, other than restrictions on transfer under any
      agreement between the Registered Holder and the Company and under applicable
      state and federal securities laws, and will be free from all taxes, liens,
      security interests, encumbrances and charges in respect of the issue thereof
      (other than taxes in respect of any transfer occurring contemporaneously or
      otherwise specified herein). The Company shall take all such actions as may
      be
      necessary to ensure that all such shares of Common Stock may be so issued
      without violation of any applicable law or governmental regulation or any
      requirements of any domestic stock exchange upon which shares of Common Stock
      may be listed (except for official notice of issuance which shall be immediately
      delivered by the Company upon each such issuance). 

     

    10. Exchange
      or Replacement of Warrants.
      

     

    (a) Upon
      the
      surrender of this Warrant by the Registered Holder and all properly endorsed
      and
      completed notices, as applicable, to the Company at the principal office of
      the
      Company, the Company will, subject to the provisions of Section 5, issue and
      deliver to or upon the order of the Registered Holder, at the Company’s expense,
      a new warrant(s) of like tenor, in the name of the Registered Holder or as
      the
      Registered Holder (upon payment by the Registered Holder of any applicable
      transfer taxes) may direct, calling in the aggregate on the face or faces
      thereof for the number of shares of Common Stock (or other securities, cash
      and/or property) then issuable upon exercise of this Warrant.

     

    (b) Upon
      receipt of evidence reasonably satisfactory to the Company (an affidavit of
      a
      Registered Holder shall be satisfactory) of the loss, theft, destruction or
      mutilation of this Warrant and (in the case of loss, theft or destruction)
      upon
      delivery of an unsecured indemnity agreement in an amount reasonably
      satisfactory to the Company, or (in the case of mutilation) upon surrender
      and
      cancellation of this Warrant, the Company will at its expense issue, in lieu
      thereof, a new Warrant of like tenor.

     

    11. Notices.
      All
      notices and other communications from the Company to the Registered Holder
      in
      connection herewith shall be mailed by certified or registered mail, postage
      prepaid, or sent via a reputable nationwide overnight courier service
      guaranteeing next business day delivery, to the address last furnished to the
      Company in writing by the Registered Holder. All notices and other
      communications from the Registered Holder to the Company in connection herewith
      shall be mailed by certified or registered mail, postage prepaid, or sent via
      a
      reputable nationwide overnight courier service guaranteeing next business day
      delivery, to the Company at its principal office set forth below. If the Company
      should at any time change the location of its principal office to a place other
      than as set forth below, it shall give prompt written notice to the Registered
      Holder and thereafter all references in this Warrant to the location of its
      principal office at the particular time shall be as so specified in such notice.
      All such notices and communications shall be deemed delivered (i) 3
      business days after being sent by certified or registered mail, return receipt
      requested, postage prepaid, or (ii) 1 business day after being sent via a
      reputable nationwide overnight courier service guaranteeing next business day
      delivery.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

     

    12. No
      Rights or Liabilities as Stockholder.
      Until
      the exercise of this Warrant, the Registered Holder shall not have or exercise
      any rights by virtue hereof as a stockholder of the Company. Notwithstanding
      the
      foregoing, in the event (i) the Company effects a split of the Common Stock
      by means of a stock dividend and the Purchase Price of and the number of Warrant
      Shares are adjusted as of the date of the distribution of the dividend (rather
      than as of the record date for such dividend), and (ii) the Registered
      Holder exercises this Warrant between the record date and the distribution
      date
      for such stock dividend, the Registered Holder shall be entitled to receive,
      on
      the distribution date, the stock dividend with respect to the shares of Common
      Stock acquired upon such exercise, notwithstanding the fact that such shares
      were not outstanding as of the close of business on the record date for such
      stock dividend.

     

    13. Amendment
      or Waiver.
      Any
      term of this Warrant may be amended or waived only by an instrument in writing
      signed by the party against which enforcement of the change or waiver is sought.
      No waivers of any term, condition or provision of this Warrant, in any one
      or
      more instances, shall be deemed to be, or construed as, a further or continuing
      waiver of any such term, condition or provision.

     

    14. Registration
      Rights.

     

    (a) Not
      later
      than 60 days after the Original Issue Date of this Warrant, the Company shall
      prepare and file a Registration Statement with the Commission on the appropriate
      form pursuant to the Securities Act covering the sale or other distribution
      of
      all but not less than all of the Warrant Shares held by the Registered Holder.
      The Company shall use its commercially reasonable efforts to cause such
      Registration Statement to become effective as soon as practicable thereafter
      and
      shall maintain the effectiveness of such Registration Statement until the later
      of (i) two years from the Original Issue Date or (ii) one year from the
      effective date of the Registration Statement (defined below) . As used in this
      Section, “Registration
      Statement”
means
      a
      registration statement filed by the Company with the U.S. Securities and
      Exchange Commission (the “Commission”),
      to
      register for sale or re-sale securities of the Company (other than a
      registration statement on Form S-8 or Form S-4, or their successors) and all
      amendments and supplements to any such registration statement, including
      post-effective amendments, in each case including the prospectus contained
      therein, all exhibits thereto and materials incorporated by reference
      therein.

     

    (b) Notwithstanding
      the foregoing, the Company shall not be required, pursuant to this Section
      to
      include any Warrant Shares in a Registration Statement if such Warrant Shares
      can then be sold pursuant to Rule 144(k) under the Act. 

     

    (c) The
      Company shall, as expeditiously as possible after the Registration Statement
      has
      been filed, furnish to each Registered Holder owning Warrant Shares included
      in
      a Registration Statement (a “Selling Stockholder”) such reasonable numbers of
      copies of the Prospectus (as defined below), including any preliminary
      Prospectus, in conformity with the requirements of the Act, and such other
      documents as such Selling Stockholder may reasonably request in order to
      facilitate the public sale or other disposition of the Warrant Shares owned
      by
      such Selling Stockholder. As used herein, “Prospectus” means the prospectus
      included in any Registration Statement, as amended or supplemented by an
      amendment or prospectus supplement, including post-effective amendments, and
      all
      material incorporated by reference or deemed to be incorporated by reference
      in
      such Prospectus. In addition, the Company shall:

     

    (i) as
      expeditiously as possible, notify each Selling Stockholder, promptly after
      it
      shall receive notice thereof, of the time when such Registration Statement
      has
      become effective or a supplement to any Prospectus forming a part of such
      Registration Statement has been filed; 

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

     

    (ii) as
      expeditiously as possible following the effectiveness of such Registration
      Statement, notify each seller of such Warrant Shares of any request by the
      Commission for the amending or supplementing of such Registration Statement
      or
      Prospectus;

     

    (iii) as
      expeditiously as possible, (1) notify each Selling Stockholder of the issuance
      by the Commission of (i) any stop order issued or threatened to be issued by
      the
      Commission or (ii) any notification with respect to the suspension of the
      qualification or exemption from qualification of any of the Warrant Shares
      for
      sale in any jurisdiction or the initiation or threatening of any proceeding
      for
      such purpose and the Company agrees to use its best efforts to (x) prevent
      the
      issuance of any such stop order, and in the event of such issuance, to obtain
      the withdrawal of any such stop order and (y) obtain the withdrawal of any
      order
      suspending or preventing the use of any related Prospectus or suspending the
      qualification of any Warrant Shares included in such Registration Statement
      for
      sale in any jurisdiction at the earliest practicable date and (2) notify each
      Selling Stockholder of the occurrence of any event as a result of which the
      Prospectus included in the Registration Statement, as then in effect, includes
      an untrue statement of a material fact or omits to state a material fact
      required to be stated therein or necessary to make the statements therein not
      misleading or incomplete in light of the circumstances then existing (and upon
      the occurrence of any such event, the Company shall furnish to each Selling
      Stockholder a supplement to or an amendment of such Prospectus as may be
      necessary so that such Prospectus shall not include an untrue statement of
      a
      material fact or omit to state a material fact required to be stated therein
      or
      necessary to make the statements therein not misleading or incomplete in light
      of the circumstances then existing); and

     

    (iv) use
      its
      commercially reasonable efforts to take all other actions necessary to effect
      the registration of the Warrant Shares contemplated hereby, including (1) to
      register and qualify the Warrant Shares under the securities or blue sky laws
      of
      such jurisdictions as shall be reasonably requested by the Selling Stockholders
      (provided that the Company shall not be required in connection therewith or
      as a
      condition thereto to qualify to do business or to file a general consent to
      service of process in any such states or jurisdictions), (2) to cause the
      Warrant Shares to be listed on each securities exchange on which the Common
      Stock then issued by the Company is then listed (if any) and (3) to prepare
      and
      file with the Commission such amendments and supplements to the Registration
      Statement as may be necessary to comply with the provisions of the Securities
      Act with respect to the securities covered by the Registration Statement.

     

    (d) If
      the
      Company has delivered a Prospectus to the Selling Stockholders and after having
      done so the Prospectus is amended to comply with the requirements of the Act,
      the Company shall promptly notify the Selling Stockholders and, if requested,
      the Selling Stockholders shall immediately cease making offers of Warrant Shares
      and return all Prospectuses to the Company. The Company shall promptly provide
      the Selling Stockholders with revised Prospectuses and, following receipt of
      the
      revised Prospectuses, the Selling Stockholders shall be free to resume making
      offers of the Warrant Shares.

     

    (e) In
      the
      event that, in the judgment of the Company, it is advisable to suspend use
      of a
      Prospectus included in a Registration Statement due to pending material
      developments or other events that have not yet been publicly disclosed and
      as to
      which the Company believes public disclosure would be detrimental to the
      Company, the Company shall notify all Selling Stockholders to such effect,
      and,
      upon receipt of such notice, each such Selling Stockholder shall immediately
      discontinue any sales of Warrant Shares pursuant to such Registration Statement
      until such Selling Stockholder has received copies of a supplemented or amended
      Prospectus or until such Selling Stockholder is advised in writing by the
      Company that the then current Prospectus may be used and has received copies
      of
      any additional or supplemental filings that are incorporated or deemed
      incorporated by reference in such Prospectus. Notwithstanding anything to the
      contrary herein, the Company shall not exercise its rights under this Section
      to
      suspend sales of Warrant Shares for a period in excess of 30 days consecutively
      or 60 days in any 365-day period.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

     

    (f) The
      Company will pay all Registration Expenses (as defined below) related to the
      filing of the Registration Statement. As used in this Section, “Registration
      Expenses”
means
      all expenses incurred by the Company in complying with the provisions of
      Section, including, without limitation, all registration and filing fees,
      exchange listing fees, printing expenses, state securities laws fees and
      expenses, the expense of any special audits incident to or required by any
      such
      registration but excluding underwriting discounts, selling commissions and
      applicable stock transfer taxes. 

     

    (g) In
      the
      event of a registration of the Warrant Shares under the Act pursuant to this
      Warrant, the Company will indemnify and hold harmless to the fullest extent
      permitted by law each Selling Stockholder and each underwriter of such Warrant
      Shares and each of their respective directors, officers, employees, advisors,
      agents and general or limited partners (and the directors, officers, employees,
      advisors and agents thereof), and each other person, if any, who controls such
      Selling Stockholder or underwriter within the meaning of the Act or the Exchange
      Act (collectively, “Holder
      Indemnified Parties”)
      from
      and against any and all losses, claims, damages, expenses (including, without
      limitation, reasonable costs of investigation and fees, disbursements and other
      charges of counsel and any amounts paid in settlement effected with the
      Company’s consent, which consent shall not be unreasonably withheld or delayed)
      or other liabilities (collectively, “Losses”),
      joint
      or several, to which such Holder Indemnified Parties may become subject under
      the Act, the Exchange Act, state securities laws or other federal law, common
      law or any rule or regulation promulgated thereunder or otherwise, insofar
      as
      such Losses (or actions or proceedings, whether commenced or threatened, in
      respect thereof) are resulting from or arise out of or are based upon
      (i) any untrue statement or alleged untrue statement of any material fact
      contained in the Registration Statement or any document incorporated by
      reference in any of the foregoing, (ii) the omission or alleged omission to
      state a material fact required to be stated therein or necessary to make the
      statements therein not misleading, or (iii) any violation by the Company of
      the Act, the Exchange Act, state securities laws or other applicable federal
      law, common law or rule or regulation promulgated thereunder; and the Company
      will promptly reimburse such Holder Indemnified Parties for any Loss reasonably
      incurred by such Holder Indemnified Parties in connection with investigating,
      preparing or defending any such loss, claim, damage, liability, action,
      investigation or proceeding; provided, however, that the Company will not be
      liable in any such case to the extent that any such Loss arises out of or is
      based upon any untrue statement or omission made in the Registration Statement
      in reliance upon and in conformity with information furnished to the Company
      by
      or on behalf of any Selling Stockholder or Holder Indemnified Parties,
      underwriter or controlling person specifically for use in the preparation
      thereof. Such indemnity obligation shall remain in full force and effect
      regardless of any investigation made by or on behalf of the Holder Indemnified
      Parties and shall survive the transfer of Warrant Shares by such Holder
      Indemnified Parties. 

     

    (h) In
      the
      event of any registration of any of the Warrant Shares under the Act pursuant
      to
      this Warrant, each Selling Stockholder, severally and not jointly, will
      indemnify and hold harmless the Company, each of its directors and officers
      and
      each underwriter (if any) and each person, if any, who controls the Company
      or
      any such underwriter within the meaning of the Act or the Exchange Act
      (collectively, the “Company
      Indemnified Parties”),
      against any Losses, joint or several, to which the Company Indemnified Parties
      may become subject under the Act, the Exchange Act, state securities laws or
      other federal law, common law or any rule or regulation promulgated thereunder
      or otherwise, insofar as such Losses (or actions or proceedings, whether
      commenced or threatened, in respect thereof) are resulting from or arise out
      of
      or are based upon (i) any untrue statement or alleged untrue statement of a
      material fact contained in the Registration Statement, or (ii) any omission
      or alleged omission to state a material fact required to be stated therein
      or
      necessary to make the statements therein not misleading, if and to the extent
      (and only to the extent) that the statement or omission was made in reliance
      upon and in conformity with information relating to a Selling Stockholder
      furnished in writing to the Company by such Selling Stockholder specifically
      for
      use in connection with the preparation of such Registration Statement; provided,
      however, that the obligations of such a Selling Stockholder hereunder shall
      be
      limited to an amount equal to the net proceeds to such Selling Stockholder
      of
      Warrant Shares sold in connection with such registration. Such indemnity
      obligation shall remain in full force and effect regardless of any investigation
      made by or on behalf of the Holder Indemnified Parties and shall survive the
      transfer of Warrant Shares by such Holder Indemnified Parties. 

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

     

    (i) Each
      indemnified party shall give notice to the indemnifying party promptly after
      such indemnified party has actual knowledge of any claim as to which indemnity
      may be sought, and shall permit the indemnifying party to assume the defense
      of
      any such claim or any litigation resulting therefrom; provided, that counsel
      for
      the indemnifying party, who shall conduct the defense of such claim or
      litigation, shall be approved by the indemnified party (whose approval shall
      not
      be unreasonably withheld, conditioned or delayed); and, provided, further,
      that
      the failure of any indemnified party to give notice as provided herein shall
      not
      relieve the indemnifying party of its obligations under this Section except
      to
      the extent that the indemnifying party is adversely affected by such failure.
      The indemnified party may participate in such defense at such party’s expense;
      provided, however, that the indemnifying party shall pay such expense if the
      indemnified party reasonably concludes that representation of such indemnified
      party by the counsel retained by the indemnifying party would be inappropriate
      due to actual or potential differing interests between the indemnified party
      and
      any other party represented by such counsel in such proceeding; provided further
      that in no event shall the indemnifying party be required to pay the expenses
      of
      more than one law firm per jurisdiction as counsel for the indemnified party.
      The indemnifying party also shall be responsible for the expenses of such
      defense if the indemnifying party does not elect to assume such defense. No
      indemnifying party, in the defense of any such claim or litigation shall, except
      with the consent of each indemnified party, consent to entry of any judgment
      or
      enter into any settlement which does not include as an unconditional term
      thereof the giving by the claimant or plaintiff to such indemnified party of
      a
      release from all liability in respect of such claim or litigation, and no
      indemnified party shall consent to entry of any judgment or settle such claim
      or
      litigation without the prior written consent of the indemnifying party, which
      consent shall not be unreasonably withheld, conditioned or delayed.

     

    (j) In
      order
      to provide for just and equitable contribution in circumstances in which the
      indemnification provided for in this Section is due in accordance with its
      terms
      but for any reason is held to be unavailable to an indemnified party in respect
      to any losses, claims, damages and liabilities referred to herein, then the
      indemnifying party shall, in lieu of indemnifying such indemnified party,
      contribute to the amount paid or payable by such indemnified party as a result
      of such losses, claims, damages or liabilities to which such party may be
      subject in such proportion as is appropriate to reflect the relative fault
      of
      the Company on the one hand and the Selling Stockholders on the other in
      connection with the statements or omissions which resulted in such losses,
      claims, damages or liabilities, as well as any other relevant equitable
      considerations. The relative fault of the Company and the Selling Stockholders
      shall be determined by reference to, among other things, whether the untrue
      or
      alleged untrue statement of material fact related to information supplied by
      the
      Company or the Selling Stockholders and the parties’ relative intent, knowledge,
      access to information and opportunity to correct or prevent such statement
      or
      omission. The Company and the Selling Stockholders agree that it would not
      be
      just and equitable if contribution pursuant to this Section were determined
      by
      pro rata allocation or by any other method of allocation which does not take
      account of the equitable considerations referred to above. No person guilty
      of
      fraudulent misrepresentation (within the meaning of Section 11(f) of the
      Act) shall be entitled to contribution from any person who was not guilty of
      such fraudulent misrepresentation. Any party entitled to contribution will,
      promptly after receipt of notice of commencement of any action, suit or
      proceeding against such party in respect of which a claim for contribution
      may
      be made against another party or parties under this Section, notify such party
      or parties from whom contribution may be sought, but the omission so to notify
      such party or parties from whom contribution may be sought shall not relieve
      such party from any other obligation it or they may have thereunder or otherwise
      under this Section. No party shall be liable for contribution with respect
      to
      any action, suit, proceeding or claim settled without its prior written consent,
      which consent shall not be unreasonably withheld, conditioned or
      delayed.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

     

    (k) The
      rights and obligations of the Company and the Selling Stockholders under this
      Section shall survive the termination of this Warrant.

     

    15. Daily
      Sale Limit.
      Notwithstanding anything to the contrary contained herein, the Registered Holder
      covenants and agrees that it will not sell on any trading day more than the
      lesser of (x) 100,000 shares of Common Stock (adjusted to reflect any stock
      dividends, stock splits, reverse stock splits, recapitalizations and the like)
      and (y) that number of shares of Common Stock that is equal to 50% of the
      ten-day average daily trading volume of the Common Stock (the “Daily Sale
      Limit”). If all or any portion of this Warrant or the Warrant Shares have been
      transferred or assigned (other than Warrant Shares sold pursuant to an effective
      registration statement or pursuant to Rule 144 or 144(k), the calculation of
      the
      Daily Sale Limit shall include all sales by the Registered Holder and all
      transferees and assignees of this Warrant and the Warrant Shares. 

     

    16. Section
      Headings.
      The
      section headings in this Warrant are for the convenience of the parties and
      in
      no way alter, modify, amend, limit or restrict the contractual obligations
      of
      the parties.

     

    17. Governing
      Law.
      This
      Warrant will be governed by and construed in accordance with the internal laws
      of the State of New York (without reference to the conflicts of law provisions
      thereof).

     

    18. Facsimile
      Signatures.
      This
      Warrant may be executed by facsimile signature.

     

    19. Successors
      and Assigns.
      This
      Warrant shall be binding upon and inure to the benefit of the Registered Holder
      and its assigns, and shall be binding upon any entity succeeding to the Company
      by consolidation, merger or acquisition of all or substantially all of the
      Company’s assets. The Company may not assign this Warrant or any rights or
      obligations hereunder without the prior written consent of the Registered
      Holder. Subject to the limitations set forth in Section 5 herein, and the
      agreement of any assignee to be bound by Section 15 hereof, the Registered
      Holder may assign this Warrant without the Company’s prior written consent.

     

    20. Remedies.
      In the
      event of a breach by the Company of any of their obligations under this Warrant,
      the Registered Holder, in addition to being entitled to exercise all rights
      granted by law, including recovery of damages, will be entitled to specific
      performance of its rights under this Warrant. The Company agrees that monetary
      damages would not provide adequate compensation for any losses incurred by
      reason of its breach of any of the provisions of this Warrant and hereby further
      agrees that, in the event of any action for specific performance in respect
      of
      such breach, it shall waive the defense that a remedy at law would be adequate.
      

     

    21. Severability.
      The
      provisions of this Warrant will be deemed severable and the invalidity or
      unenforceability of any. provision hereof will not affect the validity or
      enforceability of the other provisions hereof; provided that if any provision
      of
      this Warrant, as applied to any party or to any circumstance, is adjudged by
      a
      court, governmental body, arbitrator, or mediator not to be enforceable in
      accordance with its terms, the parties agree that the court, governmental body,
      arbitrator, or mediator making such determination will have the power to modify
      the provision in a manner consistent with its objectives such that it is
      enforceable, and/or to delete specific words or phrases, and in its reduced
      form, such provision will then be enforceable and will be enforced.

     

    (Signature
      on following page)

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

     

    This
      Warrant is
      executed by the undersigned authorized representative of the Company as of
      the
      Date of Issuance.

    

    

    
      	 	
              COMPANY

            
	 	 
	 	
              InfoSearch
                Media, Inc.

            
	 	 
	 	 
	 	
              By:___________________________________

            
	 	
              Name:
                

            
	 	
              Title:
                

            
	 	 
	
              Accepted
                and Agreed:

            	 
	 	 
	
              REGISTERED
                HOLDER

            	 
	 	 
	
              Demand
                Media, Inc.

            	 
	 	 
	 	 
	
              By:___________________________________

            	 
	
              Name:

            	 
	
              Title:

            	 

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    EXHIBIT
      I

    NOTICE
      OF EXERCISE

    

    Date:___________

    

    To:
      InfoSearch Media, Inc.

    

    

    The
      undersigned, pursuant to the provisions set forth in the attached Warrant,
      hereby elects to purchase (check
      applicable box):

     

    
      	 o	
              q

            	
              ____
                shares of the Common Stock of covered by such Warrant; or 

            

    

    

    
      	 o	
              q

            	
              the
                maximum number of shares of Common Stock covered by such Warrant
                pursuant
                to the cashless exercise procedure set forth
                therein.

            

    

    

    The
      undersigned herewith makes payment of the full purchase price for such shares
      at
      the price per share provided for in such Warrant. Such payment takes the form
      of
(check
      applicable box or boxes):

     

    
      	 o	
              q

            	
              $______
                in lawful money of the United States by the enclosed certified check
                or
                money order; or

            

    

    

    
      	 o	
              q

            	
              $_______
                in lawful money of the United States by wire transfer using wiring
                instructions provided by the Company; or

            

    

    

    
      	 o	
              q

            	
              the
                cancellation of such portion of the attached Warrant as is exercisable
                for
                a total of _____ Warrant Shares (using a Fair Market Value of $_____
                per
                share for purposes of this calculation);
                and/or

            

    

     

    
      	 o	
              q

            	
              the
                cancellation of such number of Warrant Shares as is necessary, in
                accordance with the formula set forth in the Warrant, to exercise
                this
                Warrant with respect to the maximum number of Warrant Shares purchasable
                pursuant to the cashless exercise procedure set forth therein.
                

            

    

    

    The
      undersigned Register Holder requests that you issue a certificate or
      certificates representing the Warrant Shares purchased hereby in the name of
      the
      undersigned Registered Holder or in such other name as is specified below and
      deliver such certificate to the address indicated.

    

    
      	
               

              Registered
                Name of Certificate Holder

            	 	
               

              Address
                of Record

            	 	
              #
                of

              Shares

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

    

    

    REGISTERED
      HOLDER

    

    

    By:         
      _________________________     

    Name:    
      _________________________

     

    Address:_________________________

    _________________________

    _________________________

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    EXHIBIT
      II

    ASSIGNMENT
      FORM

    

    

    FOR
      VALUE
      RECEIVED, ________________________________________ hereby sells, assigns and
      transfers all of the rights of the undersigned under the attached Warrant with
      respect to the number of Warrant Shares covered thereby as set forth below,
      unto:

    

    

    
      	
               

              Registered
                Name of Certificate Holder

            	 	
               

              Address
                of Record

            	 	
              #
                of

              Shares

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

    

    

    REGISTERED
      HOLDER

    

    
      By:         
        _________________________     

      Name:    
        _________________________

       

      Address:_________________________

      _________________________

      _________________________

    

    

    

    Signature
      Guaranteed:

    

    By:
      _______________________

    

    The
      signature should be guaranteed by an eligible guarantor institution (banks,
      stockbrokers, savings and loan associations and credit unions with membership
      in
      an approved signature guarantee medallion program) pursuant to Rule 17Ad-15
      under the Securities Exchange Act of 1934.

    

    NOTE:
      The
      signature to this Assignment Form must correspond with the name of the
      Registered Holder as it appears on the face of the Warrant, without alteration
      or enlargement or any change whatsoever, and must be guaranteed by a bank or
      trust company. Officers of corporations and those acting in a fiduciary or
      other
      representative capacity should file proper evidence of authority to assign
      the
      foregoing Warrant. 

     

    

    

    
      
         

      

      
        16Unassociated Document

     

    Exhibit
      10.21

     

    ASSET
      PURCHASE AGREEMENT

     

    This
      Asset Purchase Agreement (this "Agreement")
      is
      made as of the 2nd day of October, 2006, by and between Answerbag, Inc., a
      California corporation ("Seller"),
      InfoSearch Media, Inc., a Delaware corporation and the sole shareholder of
      Seller ("Parent"),
      Demand Answers, Inc., a Delaware corporation ("Buyer"),
      and
      Demand Media, Inc., a Delaware corporation and the sole stockholder of Buyer
      ("DMI").

     

    RECITALS

     

    Seller
      desires and intends to sell substantially all of its operating assets and other
      rights relating to its user-generated question and answer content website and
      other business operations, and Buyer desires and intends to purchase the same,
      at the price and on the terms and conditions herein set forth.

     

    AGREEMENT

     

    NOW,
      THEREFORE, in consideration of the covenants and agreements set forth herein,
      the parties hereby agree as follows:

     

    1. Definitions

     

    As
      used
      in this Agreement, the following capitalized terms shall have the meanings
      set
      forth below:

     

    "Affiliate"
      of any
      Person (the "Subject")
      means
      any other Person which, directly or indirectly, controls or is controlled by
      or
      is under common control with the Subject and, without limiting the generality
      of
      the foregoing, includes, in any event, (a) any Person which beneficially
      owns or holds 25% or more of any class of voting securities of the Subject
      or
      25% or more of the legal or beneficial interest in the Subject and (b) any
      Person of which the Subject beneficially owns or holds 25% or more of any class
      of voting securities or 25% or more of the legal or beneficial interest.
      "Control" (including, with correlative meanings, the terms "controlled by"
      and
      "under common control with"), as used with respect to any Person, means the
      possession, directly or indirectly, of the power to direct or cause the
      direction of the management and policies of such Person, whether through the
      ownership of voting securities, by contract or otherwise.

     

    "Aggregate
      Purchase Price"
      has the
      meaning assigned in Section 3.1.

     

    "Agreement"
      means
      this Agreement and all Schedules and Exhibits hereto.

     

    "Assets"
      has the
      meaning assigned in Section 2.1.

     

    "Assignment
      and
      Assumption of
      Contract Agreement
      Rights"
      has the
      meaning assigned in Section 2.65.

     

    “Assumption
      Agreement” has
      the
      meaning assigned in Section 2.5.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    "Bill
      of Sale"
      has the
      meaning assigned in Section 2.5.

     

    "Business"
      means
      the business, operations and activities of Seller relating to the operations
      of
      Answerbag.com, the Seller’s user-generated question and answer content website.
      Without limiting the foregoing, "Business" shall include the operation of the
      Assets.

     

    "Cap"
      has the
      meaning assigned in Section 13.4.

     

    "Claim"
      means
      any claim, demand, cause of action, suit, proceeding, arbitration, hearing
      or
      investigation.

     

    "Closing"
      means
      the consummation of the purchase and sale of the Assets and other transactions
      contemplated under this Agreement and the other Transaction
      Documents.

     

    "Closing
      Cash Amount"
      has the
      meaning assigned in Section 3.1.

     

    "Closing
      Date"
      means
      the date upon which the Closing becomes effective.

     

    "Code"
      means
      the Internal Revenue Code of 1986, as amended, and all regulations promulgated
      thereunder, as in effect from time to time.

     

    “Confidential
      Information”
shall
      mean any and all trade secrets, confidential business or technical information,
      and proprietary information and materials, whether or not stored in any medium,
      relating to Seller or the Business, including, but not limited to, business
      information, technology, technical documentation, product or service
      specifications or strategies, marketing plans, research and development,
      designs, formulae, computer programs, pricing information, financial
      information, information relating to existing, previous and potential suppliers,
      customers, contracts and other know-how.

     

    "Contract"
      means
      any contract, agreement, lease, license, grant of immunity from suit in regard
      to intellectual property rights, commitment, arrangement, purchase or sale
      order, or undertaking, whether written or oral.

     

    "Disclosure
      Memorandum"
      means
      that certain Disclosure Memorandum dated as of the date hereof and delivered
      by
      Seller to Buyer on the date hereof in connection with this
      Agreement.

     

    "DMI"
      has the
      meaning assigned in the recitals.

     

    "Employee
      Benefit Plans"
      means
      all employee pension benefit plans, as defined in Section 3(2) of ERISA,
      employee welfare benefit plans, as defined in Section (3)(1) of ERISA, and
      any deferred compensation, performance, bonus, incentive, vacation pay, holiday
      pay, severance, insurance, retirement, excess benefit, fringe benefit or other
      plan, trust or arrangement,
      whether or not covered by ERISA, whether written or oral, for the benefit of
      the
      Business employees.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    "ERISA"
      means
      the Employee Retirement Income Security Act of 1974, as amended.

     

    "Encumbrance"
      means
      any security interest, mortgage, lien, charge, option, easement, license,
      adverse claim or restriction of any kind, including, but not limited to, any
      restriction on the use, transfer, voting, receipt of income or other exercise
      of
      any attributes of ownership.

     

    "Entity"
      means
any
      corporation (including any non-profit corporation), general partnership, limited
      partnership, limited liability partnership, joint venture, estate, trust,
      company (including any company limited by shares, limited liability company
      or
      joint stock company), firm, society or other enterprise, association,
      organization or entity (including any Governmental Body).

     

    "Escrow,"
      "Escrow
      Agent,"
      "Escrow
      Agreement,"
      and
      "Escrow
      Amount"
      have
      the respective meanings assigned in Section 3.3.

     

    "Excluded
      Assets"
      has the
      meaning assigned in Section 2.2.

     

    "Excluded
      Liabilities"
      has the
      meaning assigned in Section 2.4.

     

    "Financial
      Statements"
      has the
      meaning assigned in Section 5.6.

     

    "GAAP"
      means
      United States generally accepted accounting principles, as in effect as of
      the
      relevant date.

     

    "Governmental
      Body"
      means
      any federal, state or other court or governmental body, any subdivision, agency,
      commission or authority thereof, or any quasi-governmental or private body
      exercising any regulatory or taxing authority thereunder, domestic or
      foreign.

     

    "indemnified
      party"
      and
      "indemnifying
      party"
      have
      the respective meanings assigned in Section 13.5.

     

    "Intellectual
      Property"
      has the
      meaning assigned in Section 2.1.2.

     

    "Judgment"
      means
      any judgment, order, award, writ, injunction or decree of any Governmental
      Body
      or arbitrator.

     

    "knowledge"
      means,
      with respect to a specified Person, the actual knowledge of such Person
      including such additional knowledge as would be acquired by a Person conducting
      a reasonable, diligent inquiry concerning the subject matter at issue; and
      as to
      each of Seller and Parent shall also include the actual knowledge of Seller's
      and Parent's respective executive officers and directors including such
      additional knowledge as would be acquired by such a Person conducting a
      reasonable, diligent inquiry concerning the subject matter at
      issue.

     

    "Loss"
      means
      any loss, damage, Judgment, debt, liability, obligation, fine, penalty, cost
      or
      expense (including, but not limited to, any legal and accounting fee or
      expense), whether or not
      relating to personal injury, property damage, public or worker health, welfare
      or safety or the environment and whether or not relating to violations of or
      liability under environmental and safety laws.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    "material
      adverse effect"
      with
      respect to a party or other Person means an
      event,
      violation, change, failure, inaccuracy, circumstance or other matter has had,
      or
      would reasonably be expected to have, a material adverse effect on (a) the
      business, operations or financial condition of such Person or (b) in the case
      of
      a party to this Agreement, the ability of such party to timely consummate the
      transactions contemplated by this Agreement or perform any of its obligations
      under the Agreement.

     

    "Misrepresentation
      Claims"
      has the
      meaning assigned in Section 13.4.

     

    "Outstanding
      Shares"
      has the
      meaning assigned in Section 5.4(a).

     

    "Owned
      Personal Property"
      has the
      meaning assigned in Section 5.8.

     

    "Parent"
      has the
      meaning assigned in the recitals.

     

    "Permit"
      means
      any permit, license, approval, certification, endorsement or qualification
      of
      any Governmental Body or any other Person (including, but not limited to, any
      customer).

     

    "Person"
      means
      any individual or Entity.

     

    "Relevant
      Personnel"
      has the
      meaning assigned in Section 5.12.

     

    "Tax"
      or
      "Taxes"
      means
      all taxes, charges, fees, levies or other assessments, including, without
      limitation, income, excise, gross receipts, personal property, real property,
      sales, use, ad valorem, transfer, franchise, profits, license, withholding,
      payroll, employment, severance, stamp, occupation, windfall profits, social
      security and unemployment or other taxes imposed by the United States or any
      agency or instrumentality thereof, any state, county, local or foreign
      government, or any agency or instrumentality thereof, and any interest or fines,
      and any and all penalties or additions relating to such taxes, charges, fees,
      levies or other assessments.

     

    "Third-Party
      Claim"
      has the
      meaning assigned in Section 13.5.

     

    "Transaction
      Documents"
      means
      this Agreement, the Warrants as set forth in Section 9.9 and 10.5, Bill of
      Sale,
      Escrow Agreement, Assignment of Contracts, Assignment of Intellectual Property
      Rights and Assumption Agreement.

     

    "transfer"
      has the
      meaning assigned in Section 2.1.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2. 
Purchase
      and Sale of Assets

     

    2.1 Purchase
      and Sale.
      Subject
      to the terms and conditions of this Agreement, at the Closing, Seller shall
      sell, transfer, convey, assign and deliver (collectively, "transfer"),
      or
      cause to be transferred, to Buyer or one of its designees, free and clear of
      all
      Encumbrances, and Buyer shall purchase and acquire, all of Seller's right,
      title
      and interest in and to all of the assets and rights
      (collectively, the "Assets")
      primarily or exclusively used in the Business, whether tangible or intangible,
      real, personal or mixed, wherever located and whether or not reflected on the
      books and records of Seller, subject to the more specific descriptions of the
      Assets set forth below (and excluding, in each category of this Section 2.1
      below, the Excluded Assets):

     

    2.1.1 Equipment.
      The five
      computer servers and related peripheral equipment owned by Seller and employed
      in Seller's operation of the Business as of the close of business on the Closing
      Date as described in Schedule
      2.1.1
      to the
      Disclosure Memorandum (the “Sold Equipment”), and all rights to the warranties
      received from the manufacturers and distributors of all such equipment and
      any
      related claims, credits, rights of recovery and setoffs with respect to such
      equipment.

     

    2.1.2 Intellectual
      Property.
      All
      information (whether or not protectable by patent, copyright or trade secret
      rights) and intellectual property rights possessed or owned by Seller and
      employed primarily or exclusively in Seller's operation of the Business as
      of
      the close of business on the Closing Date, and all right, title and interest
      of
      Seller in, to and under licenses, sublicenses or like agreements providing
      Seller any right or concession to use any information or intellectual property,
      and, in each case, employed primarily or exclusively in Seller's operation
      of
      the Business as of the close of business on the Closing Date, including all
      domain names, URLs, trade names, trademarks (including common-law trademarks),
      service marks, art work, packaging, plates, emblems, logos, insignia and
      copyrights, and their registrations and applications, and all goodwill
      associated therewith, all domestic and foreign patents and patent applications,
      all technology, know-how, show-how, trade secrets, manufacturing processes,
      formulae, drawings, designs, systems, forms, technical manuals, data, computer
      programs, product information and development work-in-progress and all
      documentary evidence of any of the foregoing, including, without limitation,
      the
      trademarks, patents, patent applications, other assets and related agreements
      described in Schedule 2.1.2
      to the
      Disclosure Memorandum (collectively, the "Intellectual
      Property").

     

    2.1.3 Contract
      Rights and Other Intangible Assets.
      All of
      Seller's right, title and interest in, to and under all contracts and
      agreements, purchase orders, sales orders, sale and distribution agreements,
      supply and processing agreements and other instruments and agreements relating
      exclusively or primarily to Seller's operation of the Business as of the close
      of business on the Closing Date, and all goodwill associated with the Business,
      including, without limitation, Seller's right, title and interest in, to and
      under the contracts, agreements and other intangible assets described in
Schedule 5.10
      to the
      Disclosure Memorandum.

     

    2.1.4 Books
      and Records.
      All of
      Seller's books and records (including all discs, tapes and other media-storage
      data and information) relating primarily or exclusively to Seller's operation
      of
      the Business as of the close of business on the Closing Date.

     

    2.1.5 Other
      Records, Manuals and Documents.
      All of
      Seller's mailing lists, customer lists, supplier lists, vendor data, marketing
      information and procedures, sales and customer files, advertising and
      promotional materials, current product material, equipment maintenance records,
      warranty information, standard forms of documents, manuals of operations or
      business procedures and other similar procedures, and all other information
      of
      Seller relating primarily
      or exclusively to Seller's operation of the Business as of the close of business
      on the Closing Date.

     

    2.1.6 Insurance
      Proceeds.
      All
      insurance proceeds paid or payable to Seller in respect of any damage to or
      destruction or loss of any assets or rights of Seller reflected on the Schedules
      referred to in this Section 2.1.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.2 Excluded
      Assets.
      Seller
      and Buyer expressly understand and agree that Seller is not transferring to
      Buyer pursuant to this Agreement any of the following assets or rights of Seller
      (the "Excluded
      Assets"),
      and
      that such Excluded Assets do not constitute Assets under Section 2.1 of
      this Agreement:

     

    2.2.1 Excluded
      Contracts.
      Seller's
      Contracts listed on Schedule 2.2.1
      to the
      Disclosure Memorandum.

     

    2.2.2 Excluded
      Equipment. All
      machinery, equipment, furniture, computer hardware, fixtures, motor vehicles
      and
      other tangible person property owned by Seller and employed in Seller’s
      operation of the Business as of the close of business on the Closing Date that
      is not listed on Schedule 2.1.1.

     

    2.2.3 Other
      Excluded Assets.
      All
      other assets of Seller listed on Schedule 2.2.3
      to the
      Disclosure Memorandum.

     

    2.3 Assumption
      of Liabilities.
      Upon the
      terms and subject to the conditions of this Agreement, Buyer agrees, effective
      at the time of Closing, to assume only the liabilities of Seller set forth
      on
Schedule 2.3
      (the
      "Assumed
      Liabilities").

     

    2.4 Excluded
      Liabilities.
      Buyer
      shall not assume any obligations or liabilities other than the Assumed
      Liabilities, and all obligations and liabilities other than the Assumed
      Liabilities shall remain obligations and liabilities of Seller (all obligations
      or liabilities not assumed by Buyer herein are called the "Excluded
      Liabilities"),
      including but not limited to (a) those liabilities arising primarily or
      exclusively out of the conduct of the Business prior to and including the
      Closing Date, (b) all accounts payable of Seller incurred in the ordinary
      course of the Business, (c) any accrued liabilities of Seller on Seller's
      books incurred in the ordinary course of the Business), and (d) all
      liabilities related to the Excluded Assets.

     

    2.5 Instruments
      of Sale and Transfer.
      On or
      prior to the Closing Date, Seller shall deliver to Buyer and Buyer shall deliver
      to Seller, as the case may be, such instruments of sale and assignment as shall,
      in the reasonable judgment of Buyer and Seller, be effective to vest in Buyer
      on
      the Closing Date all of Seller's right, title and interest in and to the Assets
      and to evidence the assumption of the Assumed Liabilities by Buyer, including,
      without limitation, a Bill of Sale and Assignment substantially in the form
      of
Exhibit
      2.5(a)
      (the
      "Bill
      of Sale"),
      an
      Assignment of Contract Rights substantially in the form of Exhibit 2.5(b)
      (the
      "Contract
      Assignment Agreement")
      and an
      Assumption of Certain Liabilities substantially in the form of Exhibit
      2.5(c) (the
      “Assumption
      Agreement”).

     

    3. 
Purchase
      Price

     

    3.1 Purchase
      Price.
      The
      aggregate purchase price to be paid at Closing for the Assets shall be the
      sum
      of Three Million Dollars ($3,000,000) (the "Aggregate
      Purchase Price")
      minus
      the Escrow Amount (such amount after such deduction, the "Closing
      Cash Amount").

     

    3.2 Allocation
      of Purchase Price.
      The
      parties agree to utilize the fair market values of the Assets as determined
      by
      Buyer for the purpose of allocating the Purchase Price paid hereunder for the
      Assets for federal, state, local and other Tax purposes, which allocation shall
      be in accordance with Section 1060 of the Code. Buyer shall pay any sales
      and use taxes arising out of the transfer of the Assets. Each party agrees
      to
      report the federal, state, local and other Tax consequences of the transactions
      contemplated by this Agreement and the Transaction Documents in a manner
      consistent with such allocation and shall not take any position inconsistent
      therewith upon examination of any Tax return, in any refund claim, or in any
      litigation, investigation or otherwise. Each party shall cooperate with the
      other party in the filing of Form 8594 with the U.S. Internal Revenue
      Service.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.3 Escrow.
      The
      parties agree that at Closing an aggregate of Three Hundred Thousand Dollars
      ($300,000) of the Aggregate Purchase Price (the "Escrow
      Amount")
      shall
      be deposited in escrow (the "Escrow")
      with
      Wells Fargo Bank, National Association (the "Escrow
      Agent")
      to be
      held and administered for a period of 12 months in accordance with the Escrow
      Agreement attached hereto as Exhibit 3.3
      (the
      "Escrow
      Agreement").
      The
      fees of the Escrow Agent in connection with the Escrow Agreement shall be paid
      by Buyer.

     

    4. 
Closing

     

    4.1 Closing
      Date.
      Subject
      to the terms and conditions of this Agreement, the Closing shall take place
      at
      the offices of Seller, at 9:00 a.m. on October [__], 2006, or at such other
      location or time as the parties may agree and shall be effective as of 11:59
      p.m. of the Closing Date.

     

    4.2 Closing
      Payments.
      At the
      Closing, Buyer shall pay (a) to the Escrow Agent an amount equal to the
      Escrow Amount by wire transfer of immediately available funds to be held and
      administered pursuant to the Escrow Agreement, and (b) to Seller an amount
      equal to the Closing Cash Amount by wire transfer of immediately available
      funds. 

     

    5. 
Representations
      and Warranties Regarding Seller

     

    To
      induce
      Buyer and DMI to enter into and perform this Agreement, Seller and Parent
      jointly and severally represent and warrant to Buyer (which representations
      and
      warranties shall survive the Closing as provided in Section 13) all as
      follows in this Section 5:

     

    5.1 Organization,
      Good Standing,
      etc.
      Seller
      is a corporation duly organized, validly existing and in good standing under
      the
      laws of the jurisdiction of its incorporation. Seller has all requisite
      corporate power and authority to own, operate and lease the Assets and to carry
      on the Business's business as now being conducted.

     

    5.2 Corporate
      Authority.
      Seller
      has the requisite corporate power and authority to execute and deliver this
      Agreement and the Transaction Documents to which it is a party and perform
      its
      obligations hereunder and thereunder. The execution and delivery by Seller
      of
      this Agreement and the Transaction Documents to which it is a party, the
      performance by Seller of its obligations hereunder and thereunder and the
      consummation by Seller of the transactions contemplated hereby and thereby
      have
      been duly authorized by all necessary corporate action. This Agreement
      constitutes a valid and binding obligation of Seller, enforceable against Seller
      in accordance with its terms, and the Transaction Documents to which Seller
      is a
      party, when executed and delivered by Seller, will constitute valid and binding
      obligations of Seller, enforceable against Seller in accordance with their
      respective terms.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.3 No
      Conflict.
      The
      execution, delivery and performance of this Agreement or the Transaction
      Documents by Seller and the consummation of the transactions contemplated hereby
      or thereby will not (a) violate, conflict with, or result in any breach of,
      any provision of Seller's certificate of incorporation or by-laws (or equivalent
      documents); or (b) violate, conflict with, result in any breach of, or
      constitute a default (or an event that, with notice or lapse of time or both,
      would constitute a default) under any Contract or Judgment to which Seller
      is a
      party or by which it is bound or which relates to the Assets or the Business;
      or
      (c) result in the creation of any Encumbrance on any of the Assets; or
      (d) violate any applicable law, statute, rule, ordinance or regulation of
      any Governmental Body; or (e)  give any party with rights under any
      Contract, Judgment or other restriction to which Seller is a party or by which
      it is bound or which relates to the Assets or the Business, the right to
      terminate, modify or accelerate any rights, obligations or performance under
      such Contract, Judgment or restriction; or (g) violate, conflict with, result
      in
      any breach of, or constitute a default (or an event that, with notice or lapse
      of time or both, would constitute a default) under any Contract of or Judgment
      applicable to Seller or Parent containing any noncompetition, nonsolicitation,
      no-shop, standstill or similar provisions.

     

    5.4 Capitalization.
      Parent
      owns all of the outstanding shares of the issued and outstanding capital stock
      of Seller ("Outstanding
      Shares"),
      and
      all of such shares are held by Parent. All of the Outstanding Shares have been
      duly authorized and validly issued. There is no contract or agreement relating
      to the voting of any of the Outstanding Shares. 

     

    5.5 Consents
      and Approvals.
      Except
      as set forth in Schedule 5.5
      to the
      Disclosure Memorandum ("Consents
      and Approvals"),
      (a) no consent, approval or authorization of, or declaration, filing or
      registration with, any Governmental Body is required for the execution, delivery
      and performance by Seller of this Agreement and the Transaction Documents to
      which it is a party and for the consummation by Seller of the transactions
      contemplated hereby and thereby and (b) no consent, approval or
      authorization of any third party is required for the execution, delivery and
      performance by Seller of this Agreement and the Transaction Documents to which
      it is a party and the consummation by Seller of the transactions contemplated
      hereby and thereby. 

     

    5.6 Financial
      Statements.
      (a) Seller
      has delivered to Buyer the financial statements relating to the Business which
      are set forth in Schedule
      5.6(a).
      The
      Financial Statements were derived from the books and records with respect to
      the
      Business and Seller has used
      it
      best judgment in setting forth the results of operations of the Business for
      the
      respective years or periods then ended. 

     

    (b) Giving
      effect to the transactions contemplated by this Agreement and the other
      Transaction Documents shall not cause (1) Seller to be unable to pay its
      debts as they become due in the usual course of business, or (2) Seller's
      total assets to be less than the sum of Seller's total liabilities.

     

    5.7 Taxes.
      Seller
      was duly formed effective January 1, 2006. Since January 1, 2006, all
      Tax obligations of Seller with respect to its operation of the Business that
      are
      due have been timely paid and Seller has and will have no liability for any
      Tax
      obligations with respect to its operation of the Business and no interest or
      penalties have accrued or are accruing with respect thereto, whether state,
      county, local or otherwise with respect to any periods prior to the Closing
      Date
      except, in each case, any Tax obligations that, if not timely paid by Seller,
      could not result in (a) an Encumbrance on any of the Assets or (b) the
      commencement of a Claim against Buyer.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.8 Property.
      (a) Seller
      does not own or lease any real property. Seller does not lease or rent any
      personal property. 

     

    (b) Except
      for (1) assessments for Taxes not yet due and payable and
      (2) mechanics', materialmen's, carriers' and other similar liens securing
      indebtedness that is in the aggregate less than $10,000, is not yet due and
      payable, and was incurred in the ordinary course of business, the Sold Equipment
      is free and clear of all liens, mortgages, pledges, deeds of trust, security
      interest, conditional sales agreements, charges, encumbrances and other adverse
      claims or interests of any kind, and Seller has good and marketable title
      thereto.

     

    5.9 Equipment.
      The Sold
      Equipment included in the Assets does not have any structural defects, is in
      good operating condition and repair and is adequate for the conduct of the
      Business.

     

    5.10 Contracts.
      (a) Schedule
      5.10
      to the
      Disclosure Memorandum contains a complete and accurate list of all Material
      Contracts, oral or written, to which Seller is a party and that relate to the
      operation of the Business (other than those set forth in Schedule 2.2.1
      that constitute Excluded Assets), including the names of the parties thereto,
      the date of each such Material Contract and each amendment thereto. Schedule 5.10
      also
      contains a description of any provision in any Contract listed therein that
      restricts or otherwise qualifies Seller's ability to conduct the Business,
      including but not limited to noncompetition provisions, guaranteed performance
      or payments, geographic restrictions, market segment restrictions, product
      or
      service volume limitations and similar restrictions. For purposes of this
      Agreement, the term "Material
      Contract"
      means
      any of the following:

     

    (1) any
      Contract for the purchase, lease, rental or sale of supplies, machinery,
      equipment, services or other tangible or intangible property, in each case
      involving the payment or receipt by Seller of Ten Thousand Dollars ($10,000)
      or
      more in the case of any single Contract, or providing for performance,
      regardless of dollar amount, over a period of one year or more;

     

    (2) any
      Contract to which Seller is a party that is not terminable without penalty
      on
      notice of 60 days or less;

     

    (3) any
      Contract providing for the services of consultants or independent contractors,
      including, but not limited to, any Contract relating to research, development,
      advertising or promotion in connection with the Business;

     

    (4) any
      Contract relating to patents, trade names, trademarks, service marks,
      copyrights, or applications for any of the foregoing, or inventions, formulas,
      processes, technology, know-how, trade secrets, technical information or other
      intellectual property rights in connection with the Business, including, but
      not
      limited to, the Intellectual Property;

     

    (5) any
      Contract relating to real property or any interest therein in connection with
      the Business;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (6) any
      Contract with Parent or any director or officer of Seller or Parent, or any
      Affiliate of such Persons, including any Contract providing for the furnishing
      of services by, rental of real or personal property from, or otherwise requiring
      payments to any such Person;

     

    (7) any
      Contract containing any covenant (A) limiting the right of Seller to engage
      in any line of business, make use of any Intellectual Property or compete with
      any person in any line of business, (B) granting any exclusive distribution
      or supply rights or (C) otherwise having an adverse effect on the right of
      Seller to sell, distribute or manufacture any products or services or to
      purchase or otherwise obtain any software, components, parts or
      subassemblies;

     

    (8) any
      Contract between Seller and any current or former employee, consultant or
      director of Seller or Parent pursuant to which benefits would vest or amounts
      would become payable or the terms of which would otherwise be altered by virtue
      of the consummation of the transactions contemplated by this Agreement or any
      other Transaction Document to which Seller is a party (whether alone or upon
      the
      occurrence of any additional or subsequent event or events);

     

    (9) any
      Contract that requires a consent to a sale of assets, change of control, merger
      or an assignment by operation of law, either before or after the Closing;
      and

     

    (10) any
      other
      Contract, or group of Contracts, the termination or breach of which would have,
      or would be reasonably expected to have, a material adverse effect on
      Seller.

     

    (b) With
      respect to the contracts listed on Schedule
      5.10,
      all
      such Contracts are valid and in full force and effect, Seller has performed
      all
      material obligations imposed on it thereunder, and there are not, under any
      of
      such Contracts, any defaults or events of default on the part of Seller or,
      to
      the knowledge of each of Seller and Parent, any other party thereto, and no
      circumstance exists that, with notice, the passage of time, or both, could
      constitute a default under any Material Contract by Seller, or to the knowledge
      of each of Seller and Parent, any other party thereto. 

     

    (c) With
      respect to the Contracts listed on Schedule
      5.10,
      neither
      Seller nor Parent has received notice, and neither George Lichter nor Frank
      Kneuttel otherwise has actual knowledge, that any party to any such Contract
      intends to modify, cancel, terminate or refuse to renew such Contract or to
      exercise or decline to exercise any option or right thereunder.

     

    (d) Except
      as
      set forth in Schedule 5.5 to
      the
      Disclosure Memorandum, no consent, approval or authorization of any third party
      is required for the assignment to Buyer of any Contract contained in the Assets
      and all such Contracts will continue to be binding on the other parties thereto
      following the Closing and their assignment to Buyer.

     

    5.11 Claims
      and Legal Proceedings.
      Except
      as specifically set forth in Schedule 5.11
      to the
      Disclosure Memorandum, there are no Claims pending or, to the knowledge of
      each
      of Seller and Parent, threatened against Seller or Parent with respect to the
      operation of the Business, before or by any court or other Governmental Body
      or
      nongovernmental department, commission, board, bureau, agency, instrumentality
      arbitrator, arbitration panel or any other Person. To the knowledge of each
      of
      Seller and Parent, there is no valid basis for any Claim, other than as
      specifically set forth in Schedule 5.11
      to the
      Disclosure Memorandum, adverse to the Business by or before any Governmental
      Body or nongovernmental department, commission, board, bureau, agency or
      instrumentality, or any other Person. There are no outstanding or unsatisfied
      judgments, orders, decrees or stipulations to which Seller with respect to
      the
      operation of the Business is a party, that involve the transactions contemplated
      herein or that could reasonably be expected to, alone or in the aggregate,
      have
      a material adverse effect on Seller.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.12 Labor
      Matters.
      There
      are no disputes, material employee grievances or material disciplinary actions
      pending or, to the knowledge of each of Seller and Parent, threatened between
      Seller or Parent and the Relevant Personnel (as defined below). For purposes
      herein, “Relevant Personnel” means Joel Downs, Jonathan Haddad, Adam Tourkow and
      Sunny Walia. Each of Seller and Parent, with respect to the respective Relevant
      Personnel retained by Seller or Parent, has complied in all material respects
      with all applicable provisions of all laws relating to the employment of labor
      and has no liability for any arrears of wages or Taxes or penalties for failure
      to comply with any such laws. Neither Seller nor Parent has any knowledge of
      any
      organizational efforts presently being made or threatened by or on behalf of
      any
      labor union with respect to any Relevant Personnel. 

     

    5.13 Patents,
      Trademarks and Intellectual Property.
      (a) Seller
      owns the right, title and interest in and to, and has the sole and exclusive
      right to use, free and clear of any payment obligation or other Encumbrance,
      or
      has obtained all of the necessary rights and licenses to use, all the patents,
      trade names, trademarks, service marks, copyrights and applications for any
      of
      the foregoing, whether registered or not, that are used in the Business,
      including but not limited to the use or sale of products or services of Seller
      by customers of Seller, or that are owned by Seller and relate to the products
      and services of Seller. Notwithstanding the foregoing, such ownership, licenses
      and rights are exclusive except with respect to standard, generally commercially
      available, “off-the-shelf” third party products that are not part of any
      previous, current or proposed product, service or Intellectual Property offering
      of
      the
      Seller. Schedule 2.1.2
      to the
      Disclosure Memorandum is an accurate and complete list of all such patents,
      trade names, trademarks, service marks, copyrights, and applications for any
      of
      the foregoing, reflecting dates of filing or dates of issuance, if applicable.
      No patents, trade names, trademarks, service marks, copyrights or applications
      for any of the foregoing, other than those set forth in Schedule 2.1.2 to
      the Disclosure Memorandum, are or have been used in or are necessary in
      connection with the Business or such manufacture, use, sale or application
      of
      products or services of the Business, or are owned by Seller and relate to
      the
      products and services of the Business. All registrations listed in
      Schedule 2.1.2 to the Disclosure Memorandum are in good standing, valid,
      subsisting and in full force and effect in accordance with their terms. The
      technical information and data and other intellectual property rights to be
      transferred to Buyer hereunder include all of Seller's technical information
      and
      data and other intellectual property rights (including, but not limited to,
      those of the types referenced in Section 2.1.2) relating to the Business,
      the manufacture, use or sale of products or services by or for Seller, the
      use
      or application of products or services by customers of Seller, or otherwise
      relating to the Business.

     

    (b) To
      the
      knowledge of each of Seller and Parent,
      none of
      the Intellectual Property or Seller's rights thereto are being infringed or
      otherwise violated by any Person.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c) The
      use
      of the Intellectual Property by Seller, the manufacture, use and sale by or
      for
      Seller of the products and services of Seller, and the use or application of
      the
      products and services of Seller by customers in accordance with promotions
      or
      recommendations of Seller, do not infringe or otherwise violate any rights
      of
      any Person, and there is no pending or, to the knowledge of each of Seller
      and
      Parent, threatened Claim alleging any such infringement or violation. In
      addition, there is no pending or, to the knowledge of each of Seller and Parent,
      threatened Claim alleging any defect in or invalidity, misuse or
      unenforceability of, or challenging the ownership or use of or Seller's rights
      with respect to, any of the Intellectual Property, and there is no basis for
      any
      such Claim. Furthermore, there is no other Claim made by any Person pertaining
      to the Intellectual Property. None of the Intellectual Property is subject
      to
      any Judgment.

     

    (d) The
      consummation of the transactions contemplated by this Agreement and the
      Transaction Documents will not alter or impair any of the Intellectual Property,
      and the Intellectual Property may be transferred to Buyer hereunder without
      the
      consent or approval of any other party or Governmental Body.

     

    (e) To
      the
      knowledge of each of Seller and Parent,
      the
      Business does not involve the employment of any Person in a manner that violates
      any noncompetition or nondisclosure agreement that such Person entered into
      in
      connection with his or her employment or activities at any time prior to
      employment by Seller or Parent.

     

    5.14 No
      Adverse Events.
      Neither
      Seller nor Parent has any knowledge of any facts or circumstances that hinder
      or
      adversely affect, or in the future would reasonably be expected to hinder or
      adversely affect, the Assets or the conduct, business, operations, properties,
      condition (financial or otherwise) of the Business. Furthermore, since August
      31, 2006 there has not been any material adverse change in, or any event,
      condition or contingency or any damage, destruction or loss (whether or not
      covered by insurance) that would reasonably be expected to result
      in
      any material adverse change in, the Assets or the conduct, business, operations,
      properties, condition (financial or otherwise) of the Business. Neither Seller
      nor Parent makes any representation or warranty as to facts and circumstances
      as
      to economic or industry conditions having general effect.

     

    5.15 Compliance
      With Law.
      Each of
      Seller and Parent is and has been in compliance with all laws, statutes, rules,
      ordinances and regulations promulgated by any Governmental Body and all
      Judgments applicable to the ownership or operation of the Assets or the conduct
      of the Business. Neither Seller nor Parent has received any notice of any
      alleged violation (whether past or present and whether remedied or not), nor
      is
      Seller nor Parent aware of any basis for any claim of any such violation, of
      any
      such law, statute, rule, ordinance, regulation or Judgment with respect to
      the
      Business.

     

    5.16 Insurance.
      Seller
      has, with respect to the Business, maintained insurance protection against
      all
      liabilities, Claims and risks against which it is customary for corporations
      engaged in the same or a similar business similarly situated to
      insure.

     

    5.17 Employee
      Plans. Seller
      maintains for the benefit of current or former employees of the Business only
      those Employee Benefit Plans listed on Schedule
      5.17
      to the
      Disclosure Memorandum. Seller is not now a contributing employer to any
      "multi-employer plan" as described in Section 4001(a)(3) of ERISA with
      respect to any employees of the Business. Seller has not been a contributing
      employer to any "multi-employer" plan with respect to employees of the Business
      in the past five years. Each and every pension plan (as defined in
      Section 3(1) of ERISA) maintained by Seller for the benefit of the
      employees of the Business has been issued a favorable determination letter
      with
      respect to its qualified status under Section 401(a) of the Code by the
      U.S. Internal Revenue Service, or an application for such a determination letter
      has been filed with the U.S. Internal Revenue Service within the requisite
      time
      period to allow Seller to make remedial amendments for such qualification
      purposes. With respect to employees of the Business, Seller is in compliance
      with the healthcare continuation coverage requirements of the Consolidated
      Omnibus Budget Reconciliation Act of 1985, Section 4980B of the Code, and
      proposed regulations issued by the U.S. Internal Revenue Service.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.18 Brokerage.
      Neither
      Seller nor Parent has retained any broker or finder in connection with the
      transactions contemplated by this Agreement.

     

    5.19 Customers
      and Suppliers.
      To the
      knowledge of each of Seller and Parent, no customer or supplier of Seller
      relating to the Business is involved in, or affected by, any Claim, Judgment
      or
      circumstances that would reasonably be expected to materially and adversely
      affect the Assets or the conduct, business, operations, properties, condition
      (financial or otherwise) of the Business.

     

    5.20 Assets
      Complete.
      The
      Assets to be transferred to Buyer pursuant to this Agreement and the Transaction
      Documents include, other than the Excluded Assets, all the assets and rights
      used by Seller, and are sufficient to permit Buyer to conduct the services
      of
      the Business, and operate the Assets, in the same manner as heretofore and
      currently conducted by Seller. The execution and delivery of the Transaction
      Documents by the parties and the payment by Buyer to Seller of the Purchase
      Price for the Assets set forth in Section 3.1 will result,
      subject to
      obtaining the consents and approvals set forth in Schedule
      5.5
      to the
      Disclosure Memorandum, in Buyer's immediate acquisition of good, valid and
      marketable title to the Assets, free and clear of any Encumbrance.

     

    5.21 Full
      Disclosure.
      The
      information furnished by Seller or Parent to Buyer in connection with this
      Agreement (including, but not limited to the information in the Schedules to
      the
      Disclosure Memorandum) is not false or misleading in any material respect.
      In
      connection with such information and with this Agreement and the transactions
      contemplated hereby, Seller has not made any untrue statement of a material
      fact
      or omitted to state a material fact necessary in order to make the statements
      made or information delivered, in the light of the circumstances under which
      they were made, not misleading.

     

    6. Representations
      and Warranties Regarding Parent

     

    To
      induce
      Buyer and DMI to enter into and perform this Agreement, Parent represents and
      warrants to Buyer and DMI (which representations and warranties shall survive
      the Closing as provided in Section 13) all as follows in this
      Section 6:

     

    6.1 Organization,
      Good Standing, Power, etc.
      Parent
      is a corporation duly organized, validly existing and in good standing under
      the
      laws of the State of Delaware. Parent has all requisite power and authority
      to
      own or lease and operate its assets and to carry on its business as it is now
      conducted.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    6.2 Transaction
      Documents.
      Parent
      has the requisite power and authority to execute and deliver this Agreement
      and
      the Transaction Documents to which it is a party and perform its obligations
      hereunder and thereunder. The execution and delivery by Parent of this Agreement
      and the Transaction Documents to which it is a party, the performance by Parent
      of its obligations hereunder and thereunder and the consummation by Parent
      of
      the transactions contemplated hereby and thereby have been duly authorized
      by
      all necessary action. This Agreement constitutes a valid and binding obligation
      of Parent, enforceable against Parent in accordance with its terms, and the
      Transaction Documents to which Parent is a party, when executed and delivered
      by
      Parent, will constitute valid and binding obligations of Parent, enforceable
      against Parent in accordance with their terms.

     

    6.3 No
      Conflict.
      Neither
      the execution and delivery by Parent of this Agreement or the Transaction
      Documents to which Parent is a party, the performance by Parent of its
      obligations hereunder or thereunder, nor the consummation of the transactions
      contemplated hereby or thereby will (a) violate, conflict with or result in
      any breach of any provision of Parent's charter documents, if applicable; or
      (b) violate, conflict with, result in any breach of, or constitute a
      default (or an event that, with notice or lapse of time or both, would
      constitute a default) under any Contract or Judgment to which Parent is party
      or
      by which it is bound; or (c) violate any applicable law, statute, rule,
      ordinance or regulation of any Governmental Body.

     

    6.4 Claims
      and Legal Proceedings.
      There
      are no Claims pending or, to the knowledge of Parent, threatened against Parent,
      before or by any Governmental Body or nongovernmental department, commission,
      board, bureau, agency or instrumentality, or any other Person, and there are
      no
      outstanding or unsatisfied Judgments or stipulations to which Parent
      is
      a party that involve the transactions contemplated herein or that could alone
      or
      in the aggregate reasonably be expected to have a material adverse effect on
      Parent.

     

    6.5 Brokerage.
      Parent
      has not retained any broker or finder in connection with the transactions
      contemplated by this Agreement.

     

    7. Representations
      and Warranties Regarding Buyer
      and DMI

     

    To
      induce
      Seller and Parent to enter into this Agreement, Buyer and DMI jointly and
      severally represent and warrant to Seller and Parent (which representations
      and
      warranties shall survive the Closing as provided in Section 13) all as
      follows in this Section 7:

     

    7.1 Organization,
      Good Standing, Power,
      etc.
      Each of
      Buyer and DMI is a corporation duly organized, validly existing and in good
      standing under the laws of the State of Delaware. Each of Buyer and DMI has
      all
      requisite power and authority to own or lease and operate its assets and to
      carry on its business as it is now conducted.

     

    7.2 Transaction
      Documents.
      (a) Buyer
      has
      full corporate power and authority to execute and deliver this Agreement and
      the
      Transaction Documents to which it is a party and perform its obligations
      hereunder and thereunder. The execution and delivery by Buyer of this Agreement
      and the Transaction Documents to which it is a party, the performance by Buyer
      of its obligations hereunder and thereunder and the consummation by Buyer of
      the
      transactions contemplated hereby and thereby have been duly authorized by all
      necessary corporate action. This Agreement constitutes a valid and binding
      obligation of Buyer, enforceable against Buyer in accordance with its terms,
      and
      the Transaction Documents to which Buyer is a party, when executed and delivered
      by Buyer, will constitute valid and binding obligations of Buyer, enforceable
      against Buyer in accordance with their terms.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) DMI
      has
      full corporate power and authority to execute and deliver this Agreement and
      the
      Transaction Documents to which it is a party and perform its obligations
      hereunder and thereunder. The execution and delivery by DMI of this Agreement
      and the Transaction Documents to which it is a party, the performance by DMI
      of
      its obligations hereunder and thereunder and the consummation by DMI of the
      transactions contemplated hereby and thereby have been duly authorized by all
      necessary corporate action. This Agreement constitutes a valid and binding
      obligation of DMI, enforceable against DMI in accordance with its terms, and
      the
      Transaction Documents to which DMI is a party, when executed and delivered
      by
      DMI, will constitute valid and binding obligations of DMI, enforceable against
      DMI in accordance with their terms.

     

    7.3 No
      Conflict.
      (a) Neither
      the execution and delivery by Buyer of this Agreement or the Transaction
      Documents to which Buyer is a party, the performance by Buyer of its obligations
      hereunder or thereunder, nor the consummation of the transactions contemplated
      hereby or thereby will (a) violate, conflict with or result in any breach
      of any provision of Buyer's certificate of incorporation or by-laws; or
      (b) violate, conflict with, result in any breach of, or constitute a
      default (or an event that, with notice or lapse of time or both, would
      constitute a default) under any Contract or Judgment to which Buyer is party
      or
      by which it is bound; or (c) violate any applicable law, statute, rule,
      ordinance or regulation of any Governmental Body.

     

    (b) Neither
      the execution and delivery by DMI of this Agreement or the Transaction Documents
      to which DMI is a party, the performance by DMI of its obligations hereunder
      or
      thereunder, nor the consummation of the transactions contemplated hereby or
      thereby will (a) violate, conflict with or result in any breach of any
      provision of DMI's certificate of incorporation or by-laws; or (b) violate,
      conflict with, result in any breach of, or constitute a default (or an event
      that, with notice or lapse of time or both, would constitute a default) under
      any Contract or Judgment to which DMI is party or by which it is bound; or
      (c) violate any applicable law, statute, rule, ordinance or regulation of
      any Governmental Body.

     

    7.4 Claims
      and Legal Proceedings.
      There
      are no Claims pending or, to the knowledge of Buyer or DMI, threatened against
      Buyer or DMI, before or by any Governmental Body or nongovernmental department,
      commission, board, bureau, agency or instrumentality, or any other Person,
      and
      there are no outstanding or unsatisfied Judgments or stipulations to which
      Buyer
      or DMI is a party that involve the transactions contemplated herein or that
      could alone or in the aggregate reasonably be expected to have a material
      adverse effect on the Buyer or DMI.

     

    7.5 Brokerage.
      Neither
      Buyer nor DMI has retained any broker or finder in connection with the
      transactions contemplated by this Agreement.

     

    8. 
Certain
      Covenants

     

    8.1 Access/Confidentiality.
      (a) The
      Seller acknowledges that Seller has knowledge of certain Confidential
      Information and that such Confidential Information is confidential and
      proprietary to the Business and constitutes valuable trade secrets of the
      Business, which affect, among other things, the successful conduct, furtherance
      and protection of the Business and related goodwill.  Seller acknowledges
      that the unauthorized use or disclosure of such Confidential Information is
      likely to be highly prejudicial to the interests of Buyer and its Affiliates
      or
      their respective customers, advertisers, clients and patrons, an invasion of
      privacy, or an improper disclosure of trade secrets.  Seller agrees that a
      substantial portion of the Consideration is being paid for such Confidential
      Information and that it represents a substantial investment having great
      economic and commercial value to Buyer and its Affiliates, and constitutes
      a
      substantial part of the value to Buyer and its Affiliates of the Business and
      the Assets.  Seller further acknowledges that Buyer and its Affiliates
      would be irreparably damaged if any of the Confidential Information was
      disclosed to, or used or exploited on behalf of, any Person other than Buyer
      or
      any of its Affiliates.  Accordingly, except as required by any regulation
      or legal process, Seller covenants and agrees that it shall not, directly or
      indirectly, and shall use its best efforts to ensure that any agents,
      representatives, Affiliates and any other persons acting on Seller’s behalf
      (Seller and such agents, representatives, Affiliates and other persons with
      respect to Seller being collectively referred to as the “Restricted
      Persons”)
      do
      not, without the prior written consent of Buyer, disclose, use, exploit, furnish
      or make accessible to anyone or any other entity, any such Confidential
      Information, for a period of
      three
      years from the date of this Agreement, except that the Seller may use or exploit
      a particular item of Confidential Information if and to the extent (but only
      if
      and to the extent) that such item is: 

     

    
      	i.  	
              or
                becomes generally known on a non-confidential basis to persons in
                the
                industry, through no wrongful act of any Restricted Person, in which
                Seller is engaged and is part of the public domain;
                

            

    

     

    
      	ii.  	
              or
                was within a Restricted Person’s possession prior to its being furnished
                to such Restricted Person by or on behalf of Seller or any other
                Restricted Person , provided
                that the
                source of such information was not known by such Restricted Person
                to be
                bound by a confidentiality agreement with or other contractual, legal
                or
                fiduciary obligation of confidentiality to Buyer, Seller or any other
                Person with respect to such information; or

            

    

     

    
      	iii.  	
              or
                becomes available to a Restricted Person on a non-confidential basis
                from
                a source other than Seller or any other Restricted Person, provided
                that the
                source of such information was not known by such Restricted Person
                to be
                bound by a confidentiality agreement with or other contractual, legal
                or
                fiduciary obligation of confidentiality to Buyer, Seller or any other
                Person with respect to such information.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

       (b) Prior
      to
      the Closing Date, Seller and Parent shall (1) give Buyer and DMI and their
      accounting, legal, business, intellectual property and other authorized
      representatives and advisors full access, during normal business hours, to
      all
      employees, directors, offices and other facilities and properties of Seller
      and
      Parent relating to the Assets and the Business, (2) furnish Buyer and DMI
      and their authorized representatives and advisors with all documents and
      information relating to the Assets and the Business as may be reasonably
      requested by Buyer or DMI and their authorized representatives and advisors,
      and
      (3) otherwise fully
      cooperate with Buyer and DMI and their authorized representatives and advisors
      in their investigation and examination of the Assets and the affairs of the
      Business. (c) Buyer agrees that unless and until Closing it will not, and will
      cause its authorized agents and representatives not to, use any Confidential
      Information obtained in connection with the transactions contemplated hereby
      for
      any purpose unrelated to the consummation of the transactions contemplated
      by
      this Agreement. Subject to the requirements of law, each party to this Agreement
      will keep confidential, and will cause its authorized agents and representatives
      to keep confidential, all such Confidential Information except as otherwise
      consented to by the other parties in writing; provided, however that Buyer
      shall
      not be precluded from making any disclosure which it deems required by law
      in
      connection with its acquisition of the Seller’s Assets and Business. In the
      event that Buyer is required to disclose any Confidential Information pursuant
      to the immediately preceding sentence, Buyer shall give prior notice (to the
      extent practical under the circumstances) of such disclosure to the to the
      Seller and Parent. Under any termination of this Agreement, both parties will
      collect and deliver to the other party, or destroy and confirm destruction,
      all
      documents obtained pursuant to or in connection with the diligence of
      this transaction
      by it or any of its authorized agents or representatives then in their
      possession and any copies thereof.

     

    8.2 Assignment
      of Contracts.
      (a) Subject
      to the terms and conditions of this Agreement, as of the Closing Date, Seller
      shall assign to Buyer all of the right, title and interest of Seller in and
      under all Contracts that constitute any of the Assets, including but not limited
      to those listed in Schedule
      5.10
      to the
      Disclosure Memorandum, and Buyer shall assume the liabilities and obligations
      of
      Seller arising under such Contracts after the Closing Date; provided, however,
      that Buyer shall not succeed to or assume, and Seller shall be responsible
      for,
      any liability or obligation arising out of any or all of the following:
      (1) any breach by Seller of any such Contract or any failure by Seller to
      discharge or perform any liability or obligation that is required to be
      performed or discharged on or prior to the Closing Date under any such Contract;
      (2) any Claim based on failure to perform services, defective services,
      defective products, breach of product or service warranties or other claims
      relating to services provided or products manufactured, shipped or sold by
      Seller and arising on or prior to the Closing Date; (3) any Claim resulting
      from any act or omission of Seller on or prior to the Closing Date; and
      (4) any Claim relating to any Contract that is required under
      Section 5.10 to be listed in Schedule 5.10
      to the
      Disclosure Memorandum but is not so listed; and (5) any of the Excluded
      Assets.

     

    (b) If
      any
      Contract constituting any of the Assets, including but not limited to those
      listed in Schedule
      5.10
      to the
      Disclosure Memorandum, is not assignable by Seller to Buyer without the consent
      of a third party, or will not continue in effect after the Closing and such
      assignment without the consent of a third party, then each of Seller and Parent
      shall use commercially reasonable efforts to provide Buyer with such third-party
      consent prior to the Closing Date to the satisfaction of Buyer (but if Seller's
      assignment or attempted assignment of any such Contract prior to obtaining
      the
      third-party consent would constitute a breach of such Contract, then such
      assignment or attempted assignment shall not be or be deemed effective unless
      and until the third-party consent is obtained). Buyer shall render such
      cooperation as is reasonably required to assist Seller and Parent in obtaining
      such third-party consent.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    8.3 Conduct
      of Business Prior to Closing.
      Except
      for actions taken with the prior written consent of Buyer, from the date of
      this
      Agreement until the Closing Date, Seller shall conduct the Business in the
      ordinary course consistent with Seller's past practice, and each of Seller
      and
      Parent shall use commercially reasonable efforts to (a) maintain the Assets
      and the Business intact; (b) to market, promote, sell and distribute the
      services and products of the Business consistently with Seller's past practice,
      and to preserve the goodwill of the Business and present relationships with
      the
      customers and suppliers of the Business and others with whom the Business has
      business relations; (c) to meet the contractual and other obligations of
      the Business including making payments and filings required to continue the
      Intellectual Property and continue to prosecute and maintain all pending
      applications therefor in all jurisdictions in which such applications are
      pending; (d) not take any action, or omit to take any action, that would
      result in any of Seller's or Parent's representations and warranties made herein
      being inaccurate at the time of such action or omission as if made at and as
      of
      such time; and (e) not solicit, approach or furnish information to any
      prospective buyer, or negotiate with any third party concerning the sale or
      transfer of the Assets, the Business or any part thereof, whether any of such
      actions are taken directly or indirectly, through a representative or
      otherwise.

     

    8.4 Employee
      Matters.
      Except
      as provided below in this Section 8.4, Seller shall terminate the
      employment of all the Relevant Personnel effective as of the Closing Date.
      Prior
      to the Closing, Buyer shall provide to each of the Relevant Personnel an offer
      letter in substantially the form set forth in Exhibit 8.4A, 8.4B, 8.4C and
      8.4D,
      and Seller shall provide a notice to each of the Relevant Personnel as of the
      Closing Date, advising such Relevant Personnel of the sale of the business,
      their termination as Seller's employees and Buyer's offer of employment.

     

    8.5 Covenants
      to Satisfy Conditions.
      Each
      party shall proceed with all reasonable diligence and use commercially
      reasonable efforts to satisfy or cause to be satisfied all of the conditions
      precedent to the other party's obligation to purchase or sell the Assets that
      are set forth in Section 9 or 10, as the case may be.

     

    9. 
Conditions
      Precedent to Obligations of Buyer

     

    The
      obligation of Buyer to purchase the Assets at the Closing shall be subject
      to
      the satisfaction at or prior to the Closing of each of the following conditions,
      any one or more of which may be waived by Buyer:

     

    9.1 No
      Injunction or Litigation.
      As of
      the Closing Date, there shall not be any Claim or Judgment of any nature or
      type
      threatened, pending or made by or before any Governmental Body that questions
      or
      challenges the lawfulness of the transactions contemplated by this Agreement
      or
      the Transaction Documents under any law or regulation or seeks to delay,
      restrain or prevent such transactions. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    9.2 Representations,
      Warranties and Covenants.
      (a) The
      representations and warranties of Seller and Parent made in this Agreement,
      the
      Transaction Documents and any certificate furnished pursuant hereto or thereto
      shall be true, complete and correct on and as of the Closing Date with the
      same
      force and effect as though made on and as of the Closing Date; 

     

    (b) Each
      of
      the Seller and Parent shall have performed and complied with the covenants
      and
      agreements required by this Agreement to be performed and complied with by
      it on
      or prior to the Closing Date; and 

     

    (c) Seller
      shall have delivered to Buyer a certificate dated the Closing Date certifying
      that the conditions specified in Sections 9.2(a) and 9.2(b) have been satisfied,
      signed by a duly authorized executive officer of Seller.

     

    9.3 No
      Material Adverse Effect.
      From the
      date of this Agreement to the Closing Date, there shall not have been any
      material adverse effect with respect to Seller or Parent, and neither Seller
      nor
      Parent shall have any knowledge of any such effect which is threatened; and
      Seller shall have delivered to Buyer a certificate dated the Closing Date to
      the
      foregoing effects signed by a duly authorized executive officer of
      Seller.

     

    9.4 Consents
      and Approvals.
      All
      consents, approvals or authorizations of, or declarations, filings or
      registrations with, all Governmental Bodies or other Persons required for the
      consummation of the transactions contemplated by this Agreement and the
      Transaction Documents shall have been obtained or made on terms satisfactory
      to
      Buyer, shall have been provided to Buyer and shall be in full force and effect.
      Without
      limiting the generality of the foregoing, all
      consents of any third parties required for the assignment to Buyer of any
      Contracts listed in Schedule 5.10
      to the
      Disclosure Memorandum and the continuation in effect of such Contracts following
      the Closing and such assignment shall
      be
      in full force and effect.

     

    9.5 Taxes.
      All
      Taxes and other assessments applicable to the Assets that are due and owing
      as
      of the Closing Date shall have been paid, except for Taxes and assessments
      to be
      apportioned between the parties as of the Closing pursuant to Section 12.3
      or paid pursuant to Section 12.1.

     

    9.6 Delivery
      of Documents.
      Seller
      shall deliver the following documents, agreements and supporting papers to
      Buyer
      at the Closing, and the delivery of each shall be a condition to Buyer's
      performance of its obligations to be performed at the Closing:

     

    (a) an
      executed Bill of Sale;

     

    (b) a
      counterpart of the Contract Assignment executed by Seller; and

     

    (c) executed
      counterparts of one or more Assignments of Intellectual Property Rights in
      substantially the form of Exhibit
      9.6(c)
      hereto
      covering the Intellectual Property described in Schedule 2.1.2
      to the
      Disclosure Memorandum, in due form for recordation with the appropriate
      Governmental Body.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    9.7 Employment
      Agreements.
      Buyer
      shall have delivered an offer letter (set forth in Exhibit 8.4A, 8.4B, 8.4C
      and
      8.4D) and confidentiality agreement to each of Joel Downs, Jonathan Haddad,
      Adam
      Tourkow on terms satisfactory to Buyer, and Sunny Walia shall have accepted
      Buyer's offer of employment for a position beginning not later than
      October 23, 2006.

     

    9.9 Warrant
      for Parent Stock.
      Parent
      shall have entered into and delivered to Buyer a warrant to purchase up to
      5,000,000 shares of Parent's common stock substantially in the form of
Exhibit 9.9
      hereto.

     

    9.10 Content
      Agreement.
      Parent
      shall have delivered to Buyer an executed Insertion Order 1A and Insertion
      Order
      2 , collectively (the “Content Purchase Agreements”) providing for the Buyer's
      purchase of $80,000 and $1,800,000, respectively, of content from Parent upon
      the terms and conditions specified therein, substantially in the form
      of  Exhibit 9.10A
      and
9.10B,
      respectively, hereto.

     

    9.11 Legal
      Opinion.
      Parent
      shall have delivered to Buyer and DMI the opinion of Parent's counsel,
      McGuireWoods LLP, dated the Closing Date, substantially in the form
      of

    Exhibit 9.11
      hereto,
      including but not limited to compliance with Delaware General Corporation Law
      Section 271.

     

    9.12 Diligence.
      Buyer
      shall have completed its due diligence investigation of Seller, its Affiliates,
      the Assets and the Business and shall be satisfied in its sole discretion with
      the results thereof.

     

    9.13 Satisfaction
      of Conditions.
      All
      agreements and other documents required to be delivered by Seller and Parent
      hereunder on or prior to the Closing Date shall be satisfactory in the
      reasonable judgment of DMI, Buyer and its counsel. Each of Buyer and DMI shall
      have received such other agreements, documents and information as it may
      reasonably request in order to establish satisfaction of the conditions set
      forth in this Section 9.

     

    10. 
Conditions
      Precedent to Obligations of Seller

     

    The
      obligation of Seller to sell the Assets to Buyer at the Closing shall be subject
      to the satisfaction at or prior to the Closing of each of the following
      conditions, any one or more of which may be waived by Seller:

     

    10.1 No
      Injunction or Litigation.
      As of
      the Closing Date, there shall not be any Claim or Judgment of any nature or
      type
      threatened, pending or made by or before any Governmental Body that questions
      or
      challenges the lawfulness of the transactions contemplated by this Agreement
      or
      the Transaction Documents under any law or regulation or seeks to delay,
      restrain or prevent such transactions. 

     

    10.2 Representations,
      Warranties and Covenants.
      (a) The
      representations and warranties of Buyer and DMI made in this Agreement or in
      the
      Transaction Documents or any certificate furnished pursuant hereto or thereto
      shall be true, complete and correct on and as of the Closing Date with the
      same
      force and effect as though made on and as of the Closing Date; 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) Each
      of
      Buyer and DMI shall have performed and complied with the covenants and
      agreements required by this Agreement to be performed and complied with by
      it on
      or prior to the Closing Date; and 

     

    (c) Buyer
      shall have delivered to Seller a certificate dated the Closing Date to the
      foregoing effect signed by a duly authorized executive officer of
      Buyer.

     

    10.3 Transfer
      Documents.
      Buyer
      shall have executed and delivered to Seller the Assumption Agreement relating
      to
      Contracts, substantially in the form of Exhibit 2.6(c)
      hereto.

     

    10.4 Content
      Agreements.
      Buyer
      shall have delivered to Parent an executed Insertion Order 1A and Insertion
      Order 2 providing for the Buyer's purchase of $80,000 and $1,800,000,
      respectively, of content from Parent upon the terms and conditions specified
      therein, substantially in the form of Exhibit 9.10A
      and
9.10B,
      respectively, hereto. 

     

    10.5 Warrant
      for DMI Stock.
      DMI
      shall have entered into and delivered to Parent a warrant to purchase up to
      125,000 shares of DMI's Series C Preferred stock substantially in the form
      of
Exhibit 10.5
      hereto.

     

    10.6 Satisfaction
      of Conditions.
      All
      agreements and other documents required to be delivered by Buyer and DMI
      hereunder on or prior to the Closing Date shall be satisfactory in the
      reasonable judgment of Parent, Seller and its counsel. Each of Seller and Parent
      shall have received such other agreements, documents and information as it
      may
      reasonably request in order to establish satisfaction of the conditions set
      forth in this Section 10.

     

    11. Certain
      Post-Closing Covenants

     

    11.1 Further
      Assurances.
      After
      the Closing Date, Seller and Parent shall from time to time at Buyer's or DMI's
      request execute and deliver, or cause to be executed and delivered, such further
      instruments of conveyance, assignment and transfer or other documents, and
      perform such further acts and obtain such further consents, approvals and
      authorizations, as Buyer or DMI may reasonably require in order to fully effect
      the conveyance and transfer to Buyer of, or perfect Buyer's right, title and
      interest in, any of the Assets, to assist Buyer in obtaining possession of
      any
      of the Assets, or to otherwise comply with the provisions of this Agreement
      and
      consummate the transactions contemplated by this Agreement and the Transaction
      Documents.

     

    11.2 Books
      and Records.
      On the
      Closing Date, Seller shall deliver to Buyer (a) all of the technical
      information and data and other intellectual property rights to be transferred
      hereunder (including all of the assets referenced in Section 2.1.2) which
      have been reduced to writing, (b) all of the original Contracts referenced
      in Section 2.1.3, (c) all of the books and records referenced in
      Section 2.1.4, and (d) all of Seller's information and materials
      referenced in Section 2.1.5.

     

    11.3 Source
      Code. On
      the
      Closing Date, Seller shall deliver to Buyer, in electronic form to a computer(s)
      or server(s) designated by Buyer, by remote telecommunication, all Source Code,
      object code and executable code for all custom software included in the Assets,
      and separately all related documentation, including in each case, all masters
      and copies thereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    11.4 Domain
      Names Transfers.
      On the
      Closing Date, Seller
      shall change (i) all WHOIS records for each of the domain names included in
      the
      Assets and set forth on Schedule
      2.1.2
      to
      reflect the WHOIS information requested by Buyer and (ii) the name servers
      of
      the Purchased Domain Names to those name servers specified by Buyer.

     

    11.5 Orders.
      Seller
      and Parent shall promptly forward to Buyer all orders for products and services
      related to the Business, and other inquiries from customers or prospective
      customers in regard to the supply of products or services, that are received
      by
      Seller or Parent within two years after the Closing Date.

     

    11.6 Post-Closing
      Cooperation.
      After
      the Closing Date, each party shall provide the other party with such reasonable
      assistance (without charge) as may be requested by the other party in connection
      with any Claim or audit of any kind or nature whatsoever or the preparation
      of
      any response, demand, inquiry, filing, disclosure or the like (including, but
      not limited to, any tax return or form) relating to the Assets or the Business.
      Such assistance shall include, but not be
      limited to, permitting the party requesting assistance to have reasonable access
      to the employees, books and records of the other party.

     

    11.7 Election
      of a Director.
      Upon
      Closing, Parent will Offer DMI one (1) seat on the Parent’s Board of Directors.
      DMI has the right to select a member of its current management team to fill
      the
      seat.

     

    11.8 Transition
      Period.
      The
      parties contemplate that it may be necessary to implement the relocation of
      certain equipment, obtain consents to assignment of contracts from third
      parties, deliver documents and various books and records, allow for the Relevant
      Personnel and other employees of Seller to complete certain assignments that
      are
      under their responsibility and otherwise accommodate the transition of the
      Assets and Business of Seller to Buyer without disrupting the business of Parent
      over a brief but reasonable time after Closing. Each of the parties covenants
      and agrees to cooperate with the other parties and use all commercially
      reasonable efforts to accommodate a smooth and orderly transition after
      Closing.

     

    12. 
Taxes
      and Costs; Apportionments

     

    12.1 Transfer
      Taxes.
      Buyer
      shall be responsible for the payment of all transfer, sales and use and
      documentary taxes, filing and recordation fees and similar charges relating
      to
      the sale or transfer of the Assets hereunder. 

     

    12.2 Transaction
      Costs.
      Each
      party shall be responsible for its own costs and expenses incurred in connection
      with the preparation, negotiation and delivery of this Agreement and the
      Transaction Documents, including but not limited to attorneys' and accountants'
      fees and expenses and brokerage fees.

     

    12.3 Apportionments.
      Any and
      all real property taxes, personal property taxes, assessments, lease rentals,
      fuel, and other charges applicable to the Assets will be pro-rated to the
      Closing Date, and such taxes and other charges shall be allocated between the
      parties by adjustment at the Closing, or as soon thereafter as the parties
      may
      agree. All such taxes shall be allocated on the basis of the fiscal year of
      the
      tax jurisdiction in question.

     

    13. 
Survival
      and Indemnification

     

    13.1 Survival.
      All
      representations and warranties of Seller, Parent, Buyer and DMI contained in
      this Agreement or in the Transaction Documents or in any certificate delivered
      pursuant hereto or thereto shall survive the Closing for a period of 12 months
      after the Closing, and shall not be deemed waived or otherwise affected by
      any
      investigation made or any knowledge acquired with respect thereto; provided,
      however, that the representations and warranties in Section 5.7 (Taxes) and
      Section 5.17 (Employee Plans) shall survive until the expiration of the
      relevant statute of limitations period plus 30 days. The covenants and
      agreements of Seller, Parent, Buyer and DMI contained in this Agreement or
      in
      the Transaction Documents shall survive the Closing and shall continue until
      all
      obligations with respect thereto shall have been performed or satisfied or
      shall
      have been terminated in accordance with their terms.

     

    13.2 Indemnification
      by Seller
      and Parent.
      From and
      after the Closing Date, Seller and Parent shall on a joint and several basis
      indemnify and hold Buyer, DMI and their respective Affiliates harmless from
      and
      against, and shall reimburse Buyer, DMI and their respective Affiliates for,
      any
      and all Losses arising out of or in connection with:

     

    (a) any
      inaccuracy in any representation or warranty made by Seller or Parent in this
      Agreement or in the Transaction Documents or in any certificate delivered
      pursuant hereto or thereto;

     

    (b) any
      failure by Seller or Parent to perform or comply with any covenant or agreement
      in this Agreement or in the Transaction Documents;

     

    (c) any
      claim
      by any Person for brokerage or finder's fees or commissions; or similar payments
      based upon any agreement or understanding alleged to have been made by such
      Person directly or indirectly with Seller or Parent or any of their respective
      officers, directors or employees in connection with any of the transactions
      contemplated by this Agreement or the Transaction Documents;

     

    (d) the
      conduct of the Business, the ownership or operation of the Assets or the sale
      of
      products or services of the Business on or prior to the Closing Date, including,
      but not limited to, any Losses arising out of or in connection with any Claims
      and Judgments relating to the Business or the Assets which are pending or
      entered on or prior to the Closing Date or as to which Seller or Parent has
      received notice on or prior to the Closing Date;

     

    (e) any
      failure to comply with any applicable bulk sales laws in connection with the
      transactions contemplated by this Agreement or the Transaction Documents;
      or

     

    (f) any
      Claim
      made against Buyer to the extent such Claim relates to any business or assets
      of
      Seller, Parent or their respective Affiliates not acquired by Buyer hereunder,
      or any obligations or liabilities of Seller, Parent or their respective
      Affiliates not assumed by Buyer hereunder.

     

    13.3 Indemnification
      by Buyer
      and DMI.
      From and
      after the Closing Date, Buyer and DMI shall on a joint and several basis
      indemnify and hold harmless Seller, Parent and their respective Affiliates
      from
      and against, and shall reimburse Seller, Parent and their respective Affiliates
      for, any and all Losses arising out of or in connection with:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (a) any
      inaccuracy in any representation or warranty made by Buyer or DMI in this
      Agreement or in the Transaction Documents or in any certificate delivered
      pursuant hereto or thereto;

     

    (b) any
      failure by Buyer or DMI to perform or comply with any covenant or agreement
      in
      this Agreement or the Transaction Documents;

     

    (c) any
      Claim
      by any Person for brokerage or finders' fees or commissions or similar payments
      based upon any agreement or understanding alleged to have been made by
      such

     

     Person
      directly or indirectly with Buyer or DMI or any of their respective officers,
      directors or employees in connection with any of the transactions contemplated
      by the Agreement or the Transaction Documents; or

     

    (d) the
      conduct of the Business, the ownership or operation of the Assets or the sale
      of
      products or services of the Business after the Closing Date.

     

    13.4 Time
      Limitations;
      Cap.
      (a) With
      respect to Claims for indemnification made under Section 13.2(a) or
      13.3(a), as the case may be (the "Misrepresentation
      Claims"),
      no
      indemnified party (as defined in Section 13.5 below) shall be entitled to
      assert any right of indemnification with respect to any Misrepresentation Claim
      that was not the subject of a written indemnification notice to the indemnifying
      party (as defined in Section 13.5 below) on or prior to the end of the
      applicable survival period set forth in Section 13.1 above; provided,
      however, that if the indemnified party or its Affiliate(s) has given written
      notice of any Misrepresentation Claim to the indemnifying party on or prior
      to
      the end of such survival period, then the indemnified party shall continue
      to
      have the right to be indemnified with respect to such pending Misrepresentation
      Claim, notwithstanding the expiration of such survival period. The liability
      of
      any party to the other party and its Affiliates for indemnification Claims
      under
      Section 13.2 or 13.3, as the case may be, other than Misrepresentation
      Claims, shall not be subject to any timing limitations set forth in this
      Section 13.4.

     

    (b) With
      respect to Misrepresentation Claims, no indemnifying party shall be obligated
      to
      indemnify indemnified parties hereunder in an amount exceeding $750,000 in
      the
      aggregate for all such Claims (the "Cap").

     

    13.5 Procedure.
      (a) Any
      party
      hereto or any of its Affiliates seeking indemnification hereunder (in this
      context, the "indemnified
      party")
      shall
      notify the other party (in this context, the "indemnifying
      party")
      in
      writing reasonably promptly after the assertion against the indemnified party
      of
      any Claim by a third party (a "Third-Party
      Claim")
      in
      respect of which the indemnified party intends to base a Claim for
      indemnification hereunder, but the failure or delay so to notify the
      indemnifying party shall not relieve it of any obligation or liability that
      it
      may have to the indemnified party except to the extent that the indemnifying
      party demonstrates that its ability to defend or resolve such Third Party Claim
      is materially and adversely affected thereby.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) (1) Subject
      to the provisions of Sections 13.5(d) and 13.5(g) below, the indemnifying
      party shall have the right, upon written notice given to the indemnified party
      within 30 days after receipt of the notice from the indemnified party of any
      Third Party Claim, to assume the defense or handling of such Third Party Claim,
      at the indemnifying party's sole expense, in which case the provisions of
      Section 13.5(b)(2) below shall govern. 

     

    (2) The
      indemnifying party shall select counsel reasonably acceptable to the indemnified
      party in connection with conducting the defense or handling of such Third Party
      Claim, and the indemnifying party shall defend or handle the same in
      consultation with the indemnified party, shall keep the indemnified party timely
      apprised of the status of such Third Party Claim,
      and
      shall not, without the prior written consent of the indemnified party, directly
      or indirectly assume any position or take any action that would impose any
      obligation of any kind on
      or
      restrict the actions of the indemnified party.
      The
      indemnifying party shall not, without the prior written consent of the
      indemnified party, which consent shall not be unreasonably withheld, agree
      to a
      settlement of any Third Party Claim that
      could directly or indirectly lead to liability or create any financial or other
      obligation on the part of the indemnified party for which the indemnified party
      is not entitled to indemnification hereunder.
      The
      indemnified party shall cooperate with the indemnifying party and shall be
      entitled to participate in the defense or handling of such Third Party Claim
      with its own counsel and at its own expense. Notwithstanding the foregoing,
      in
      the event the indemnifying party fails to conduct the defense or handling of
      any
      Third Party Claim in good faith after having assumed such defense or handling,
      then the provisions of Section 13(c)(2) below shall govern.

     

    (c) (1) If
      the
      indemnifying party does not give written notice to the indemnified party, within
      30 days after receipt of the notice from the indemnified party of any Third
      Party Claim, of the indemnifying party's election to assume the defense or
      handling of such Third Party Claim, the provisions of Section 13(c)(2)
      below shall govern. 

     

    (2) The
      indemnified party may, at the indemnifying party's expense, select counsel
      in
      connection with conducting the defense or handling of such Third Party Claim
      and
      defend or handle such Third Party Claim in such manner as it may deem
      appropriate, provided, however, that the indemnified party shall keep the
      indemnifying party timely apprised of the status of such Third Party Claim
      and
      shall not settle such Third Party Claim without the prior written consent of
      the
      indemnifying party, which consent shall not be unreasonably withheld. If the
      indemnified party defends or handles such Third Party Claim, the indemnifying
      party shall cooperate with the indemnified party and shall be entitled to
      participate in the defense or handling of such Third Party Claim with its own
      counsel and at its own expense.

     

    (d) If
      the
      indemnified party intends to seek indemnification hereunder, other than for
      a
      Third Party Claim, then it shall notify the indemnifying party in writing within
      the applicable period for survival of such claim as provided in
      Section 13.1.

     

    (e) The
      indemnification obligations of Seller and Parent under this Section 13
      shall be satisfied by payment to Buyer of the indemnification amount from the
      Escrow. The aggregate value of the claims paid by means of the payments to
      Buyer
      pursuant to this Section 13 shall be deemed to reduce the total Aggregate
      Purchase Price otherwise payable pursuant to Section 3.1.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    13.6 Election
      of Remedies.
      In the
      event that any party or any of its Affiliates alleges that it is entitled to
      indemnification hereunder, and that its Claim is covered under more than one
      provision of this Section 13, such party or Affiliate shall be entitled to
      elect the provision or provisions under which it may bring a claim for
      indemnification.

     

    13.7 Specific
      Performance.
      The
      parties to this Agreement acknowledge that it may be impossible to measure
      in
      money the damages that a party would incur if any covenant or agreement
      contained in this Agreement were not performed in accordance with its terms
      and
      agree that each of the parties hereto shall be entitled to obtain an injunction
      to require specific performance of, and prevent any violation of the terms
      of,
      this Agreement, in addition to any other remedy available hereunder.

     

    13.8 Exclusive
      Remedies.
      Except
      with respect to claims based on fraud, the indemnification and specific
      performance remedies set forth under this Section 13 shall constitute the
      sole and exclusive remedies of the parties with respect to any matters arising
      under or relating to this Agreement.

     

    14. Termination

     

    14.1 Termination.
      This
      Agreement may be terminated before the Closing:

     

    (a) by
      mutual
      consent of Seller, Parent, Buyer and DMI;

     

    (b) by
      Seller
      and Parent, on the one hand, or Buyer and DMI, on the other hand:

     

    (1) in
      the
      event of a breach by the other party of any representation, warranty, covenant
      or other agreement contained in this Agreement or any other Transaction Document
      which (A) would give rise to the failure of a condition set forth in
      Article 9 or Article 10, as applicable, and (B) cannot be or has
      not been cured within 20 days (the "Cure
      Period")
      following receipt by the breaching party of written notice of such
      breach;

     

    (2) if
      a
      court of competent jurisdiction or other Governmental Body shall have issued
      an
      order, decree, or ruling or taken any other action (which order, decree or
      ruling the parties hereto shall use commercially reasonable efforts to lift),
      in
      each case permanently restraining, enjoining or otherwise prohibiting the
      transactions contemplated by this Agreement or any other Transaction Document,
      and such order, decree, ruling or other action shall have become final and
      non-appealable;

     

    (3) if
      the
      Closing shall not have occurred by the 30th day following the date of this
      Agreement; provided, however, that the right to terminate this Agreement under
      this clause (3) shall not be available to any party whose breach of this
      Agreement has been the cause of, or resulted in, the failure of the Closing
      to
      occur on or before such date.

     

    The
      right
      of any party hereto to terminate this Agreement pursuant to this Article 14
      shall remain operative and in full force and effect regardless of any
      investigation made by or on behalf of any party hereto, any Person controlling
      any such party or any of their respective officers, directors, employees,
      accountants, consultants, legal counsel, agents or other representatives whether
      prior to or after the execution of this Agreement. Notwithstanding anything
      in
      the foregoing to the contrary, no party that is in material breach of this
      Agreement shall be entitled to terminate this Agreement except with the written
      consent of the other party.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    14.2 Effect
      of Termination.
      In the
      event of the termination of this Agreement pursuant to Section 14.1 above,
      (a) each party shall return or destroy all documents containing
      confidential information of the other party (and, upon request, certify as
      to
      the destruction thereof), and (b) no party hereto shall have any liability
      or further obligation to the other party hereunder, except for liabilities
      or obligations relating to any breach by any party of any representation,
      warranty, covenant or agreement set forth herein. Notwithstanding the foregoing,
       in
      the
      event of a termination of this Agreement by Seller, for reasons other than
      a
      breach by Buyer, (x) Seller shall reimburse
      Buyer for its out-of-pocket expenses incurred with relating to the transaction,
      subject to a cap of $25,000 and (y) Seller shall provide Buyer with up to
      $70,000 in Content. For purposes of this Section 14.2, Content means new
      articles, created in categories of DMI’s choosing, and subject to conformance
      with DMI writers’ guidelines and formats and approval by DMI’s editors pursuant
      the procedures set forth in the Insertion Order 2 Writer’s guidelines attached
      as Exhibit 10.4B.
      Seller
      shall be responsible for its own expenses and those of its advisors, and no
      party hereto, and any of its Affiliates for any expenses relating to the
      transactions contemplated by this Agreement or any other Transaction
      Document.

     

    15. Miscellaneous

     

    15.1 Noncompetition
      and Nonsolicitation Obligations of Seller and Parent Following the
      Closing.
      (a)
      Seller and Parent each acknowledge
      that such Person is familiar with the trade secrets of the Seller and with
      other
      confidential information concerning the Seller, including all
      (1) inventions, technology and research and development of the Seller,
      (2) customers and clients and customer and client lists of the Seller,
      (3) products (including products under development) and services of the
      Seller and related costs and pricing structures and manufacturing and service
      delivery techniques, (4) accounting and business methods and practices of
      the Seller and (5) similar and related confidential information and trade
      secrets of the Seller. Parent further acknowledges that its services have been
      of special, unique and extraordinary value to the Seller, that Parent has been
      substantially responsible for the growth and development of the Seller and
      the
      creation and preservation of the Seller's goodwill. Seller and Parent
      acknowledge and agree that the Buyer would be irreparably damaged if Seller
      or
      Parent were to compete with the business of the Buyer, and that such competition
      by Seller or Parent would result in a significant loss of goodwill by the Buyer.
      Each of Seller and Parent acknowledges and agrees that the covenants and
      agreements set forth in this Section 15.1 were a material inducement to the
      Buyer to enter into this Agreement and to perform its obligations hereunder,
      and
      that the Buyer would not obtain the benefit of the bargain set forth in this
      Agreement as specifically negotiated by the parties hereto if Seller or Parent
      breached the provisions of this Section 15.1. Therefore, in further
      consideration for the payment of the Aggregate Purchase Price as set forth
      in
      Section 3.1 and the other consideration set forth in this Agreement, and in
      order to protect the value of the Assets purchased by Buyer (including the
      goodwill inherent in the Assets as of the Closing), each of Seller and Parent
      agrees that:

     

    (A) During
      the Restricted Period (as hereinafter defined), neither of Seller or Parent
      nor
      any of their respective controlled Affiliates shall have any affiliation (as
      defined below) with any corporation, partnership or other business entity,
      enterprise or other Person (other than the Buyer and its Subsidiaries) having
      any location within the United States of America which engages in the management
      and/or operation of any entity that engages in any business which is the same
      as
      or substantially similar to the business of the Seller as presently conducted;
      provided,
      however,
      that
      nothing contained herein shall be construed to prohibit the Seller or Parent
      or
      such Affiliates from purchasing up to an aggregate of 5% of any class of the
      outstanding voting securities of any other Person whose securities are listed
      on
      a national securities exchange. For purposes of this subsection (A), the term
      "affiliation"
      shall
      mean any direct or indirect ownership interest of 25% or more in such entity,
      enterprise or other Person.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (B) During
      the Restricted Period, none of the Seller, Parent nor any of their respective
      Affiliates shall (i) contact, approach or solicit for the purpose of offering
      employment to or hiring (whether as an employee, consultant, agent, independent
      contractor or otherwise) or actually hire any person employed by the Buyer
      or
      DMI or any of their respective Affiliates without the prior written consent
      of
      the Buyer or DMI; or (ii) induce or attempt to induce any customer, supplier,
      licensee or other business relation of the Business or Buyer to cease doing
      business with Buyer or in any way interfere with the relationship between any
      such customer, supplier, licensee or business relation of the Business or the
      Buyer,; provided, however, that the foregoing restrictions shall not prohibit
      general employment solicitations to the public not directed at the employees
      of
      Buyer, DMI or their respective Affiliates by Seller, Parent or their respective
      Affiliates or hiring of any employee of Buyer, DMI or their respective
      Affiliates who contacts any of Seller, Parent or their respective Affiliates
      in
      response to such general solicitation; and provided further, that the foregoing
      restrictions shall not prohibit Seller, Parent or their respective Affiliates
      from calling on, soliciting or servicing their existing or potential customers,
      suppliers, licensees or other business relations in connection with their
      respective business.

    (C) During
      the Restricted Period, none of the Buyer, DMI nor any of their respective
      Affiliates shall (i) contact, approach or solicit for the purpose of offering
      employment to or hiring (whether as an employee, consultant, agent, independent
      contractor or otherwise) or actually hire any person employed by the Seller
      or
      Parent or any of their respective Affiliates without the prior written consent
      of the Seller or Parent;; (ii) induce or attempt to induce any customer,
      supplier, licensee or other business relation of the Seller, Parent or any
      of
      their respective Affiliates to cease doing business with any such Person or
      in
      any way interfere with the relationship between any such customer, supplier,
      licensee or business relation of the Seller, Parent or any of their respective
      Affiliates; provided, however, that the foregoing restrictions shall not
      prohibit general employment solicitations to the public not directed at the
      employees of Seller, Parent or their respective Affiliates by Buyer, DMI or
      their respective Affiliates or hiring of any employee of Seller, Parent or
      their
      respective Affiliates who contacts any of Buyer, DMI or their respective
      Affiliates in response to such general solicitation; and provided further,
      that
      the foregoing restrictions shall not prohibit Buyer, DMI or their respective
      Affiliates from calling on, soliciting or servicing their existing customers,
      suppliers, licensees or other business relations.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (D) Notwithstanding
      anything in this Section 15.1 to the contrary, if at any time, in any judicial
      or arbitration proceeding, any of the restrictions stated in this
      Section 15.1 is found by a final order of a court of competent jurisdiction
      or arbitrator(s) to be unreasonable or otherwise unenforceable under
      circumstances then existing, the Seller and Parent agree that the period, scope
      or geographical area, as the case may be, shall be reduced to the extent
      necessary to enable the court and arbitrator(s) to enforce the restrictions
      to
      the extent such provisions are allowable under Applicable Law, giving
effect
      to
      the agreement and intent of the parties that the restrictions contained herein
      shall be effective to the fullest extent permissible. In the event of an alleged
      breach or violation by Seller or Parent of any of the provisions of this Section
      15.1, the Restricted Period with respect to such party will be tolled until
      such
      alleged breach or violation is resolved; provided,
      however,
      that if
      Seller or Parent is found to have not violated the provisions of this Section
      15.1, then the Restricted Period will not be deemed to have been tolled. Each
      of
      Seller and Parent agrees that the restrictions contained in this
      Section 15.1 are reasonable in all respects and necessary to protect the
      interests of the Buyer and its Affiliates.

     

    (E) As
      used
      herein, "Restricted Period" means the period ending on the date 3 years
      after the date of Closing.

     

    15.2 Confidentiality
      Obligations of Seller and Parent Following the Closing.
      From and
      after the Closing, Seller and Parent shall keep confidential and not use or
      disclose to any party any confidential information relating to the assets,
      business or affairs of Buyer or the Assets or the Business. The confidentiality
      and non-use obligations set forth in this Section 15.2 shall not apply to
      any information which is available to the public through no breach of this
      Agreement by Seller or Parent, or is disclosed to Seller or Parent by third
      parties who are not under any duty of confidentiality with respect thereto,
      or
      is required to be disclosed by Seller or Parent in connection with pending
      litigation or investigation; provided, however, that in the event Seller or
      Parent becomes required in connection with pending litigation or investigation
      to disclose any of the confidential information relating to the assets, business
      or affairs of Buyer or the Assets or the Business, then Seller or Parent shall
      provide Buyer with reasonable notice so that Buyer may seek a court order
      protecting against or limiting such disclosure or any other appropriate remedy;
      and in the event such protective order or other remedy is not sought, or is
      sought but not obtained, Seller or Parent shall furnish only that portion of
      the
      information that is required and shall endeavor, at Buyer's expense, to obtain
      a
      protective order or other assurance that the portion of the information
      furnished by Seller or Parent will be accorded confidential
      treatment.

     

    15.3 Public
      Announcements.
      Each
      party agrees not to make any public announcement in regard to the transactions
      contemplated by this Agreement and the Transaction Documents without the other
      party's prior consent, except as may be required be law, in which case the
      parties shall use reasonable efforts to coordinate with each other with respect
      to the timing, form and content of such required disclosures.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    15.4 Severability.
      If any
      court determines that any part or provision of this Agreement is invalid or
      unenforceable, the remainder of this Agreement shall not be affected thereby
      and
      shall be given full force and effect and remain binding upon the parties.
      Furthermore the court shall have the power to replace the invalid or
      unenforceable part or provision with a provision that accomplishes, to the
      extent possible, the original business purpose of such part or provision in
      a
      valid and enforceable manner. Such replacement shall apply only with respect
      to
      the particular jurisdiction in which the adjudication is made. Without in any
      way limiting the generality of the foregoing, it is understood and agreed that
      this Section 15.4 shall apply to the provisions of Section 15.1 and
      that the provisions of Section 15.1, as they relate to each jurisdiction
      within their geographical scope, constitute separate and distinct
      covenants.

     

    15.5 Modification
      and Waiver.
      This
      Agreement may not be amended or modified in any manner, except by an instrument
      in writing signed by each of the parties hereto. The failure of any party to
      enforce at any time any of the provisions of this Agreement shall in no way
      be
      construed to be a waiver of any such provision, or in any way affect the right
      of such party thereafter to enforce each and every such provision. No waiver
      of
      any breach of this Agreement shall be deemed to be a waiver of any other or
      subsequent breach.

     

    15.6 Notices.
      All
      notices and other communications required or permitted to be given under this
      Agreement shall be in writing and shall be sent by facsimile transmission,
      or
      mailed postage prepaid by first-class certified or registered mail, or mailed
      by
      a nationally recognized express courier service, or hand-delivered, addressed
      as
      follows:

     

    
      	 	
              if
                to Buyer:

            	
              Demand
                Answers, Inc. 

            

      	 	 	1454
              Third Street Promenade

      	 	 	Santa Monica, CA 90401

      	 	 	Attention:
              Shawn Colo

      	 	 	 

    

    
      	 	
              with
                a copy to:

            	
              Demand
                Answers, Inc.

            

      	 	 	15801
              NE 24th
              Street

      	 	 	Bellevue,
              WA 98008

      	 	 	Attention:
              Sarah E. Akhtar

      	 	 	 

    

    
      	 	
              if
                to Seller :

            	
              Answerbag,
                Inc.

            

    

    
      	 	 	c/o InfoSearch Media,
              Inc.

    

    
      	 	 	4086 Del Rey Avenue 

    

    
      	 	 	Marina
              Del Rey, CA 90292

    

    
      	 	 	Attention:
              George Lichter

    

    
      	 	 	 

    

    
      	 	
              with
                a copy to:

            	
              Katten
                Muchin Rosenman

            

      	 	 	2029
              Century Park East, Suite 2600

      	 	 	Los Angeles, CA 90067

      	 	 	Attention: Mark A. Conley

      	 	 	 

      	
            	if
              to Parent:	InfoSearch
              Media, Inc.

      	 	
            	
              4086
                Del Rey Avenue 

            

      	 	 	Los
              Angeles, CA 90067

      	 	 	
              Attention:
                George Lichter

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	
               

            	
              with
                a copy to:

            	
              Katten
                Muchin Rosenman

            

    

    
      	 	 	2029
              Century Park East, Suite 2600

    

    
      	 	 	Los
              Angeles, CA 90067

    

    
      	 	 	Attention:
              Mark A. Conley

    

    
      	 	 	 

    

    
      	 	 	if
              to DMI: 

    

    
      	 	 	 

    

    
      	 	 	Demand Media, Inc.

    

    
      	 	 	1454 Third Street
              Promenade

    

    
      	 	 	Santa Monica, CA 90401

    

    
      	 	 	Attention: Shawn Colo

    

    
      	 	 	 

    

    
      	 	
              with
                a copy to:

            	
              Perkins
                Coie LLP

            

      	 	 	1201
              Third Avenue, Suite 4800

      	 	 	Seattle,
              WA 98101

      	 	 	Attention:
              Lance Bass

    

     

     

    Each
      of
      the above parties may change the persons or addresses to which any notices
      or
      other communications to it should be addressed by notifying the other party
      as
      provided above. Any notice or other communication, if addressed and sent, mailed
      or delivered as provided above, shall be deemed given or received three days
      after the date of mailing as indicated on the certified or registered mail
      receipt, or on the next business day if mailed by express courier service,
      or on
      the date of delivery or transmission if hand-delivered or sent by facsimile
      transmission.

     

    15.7 Assignment.
      No party
      may assign any of its rights or obligations hereunder without the prior written
      consent of the other parties hereto. Buyer may, without the consent of the
      Seller or Parent assign all or any portion of its rights and obligations
      hereunder; provided, that such assignee is an Affiliate of Buyer. This Agreement
      shall be binding upon and inure to the benefit of the parties and their
      respective successors and assigns. Notwithstanding the foregoing, Buyer may
      assign its rights hereunder to a lender as collateral security.

     

    15.8 Captions.
      The
      captions and headings used in this Agreement have been inserted for convenience
      of reference only and shall not be considered part of this Agreement or be
      used
      in the interpretation thereof.

     

    15.9 Entire
      Agreement.
      This
      Agreement, together with the exhibits and schedules hereto and the other
      Transaction Documents, constitutes the entire agreement and understanding
      between the parties with respect to the subject matter hereof and supersedes
      all
      prior agreements, understandings, negotiations, representations and statements,
      whether oral, written, implied or expressed, relating to such subject
      matter.

     

    15.10 No
      Third-Party Rights.
      Nothing
      in this Agreement is intended, nor shall be construed, to confer upon any Person
      other than Buyer, Seller and Parent (and only to the extent expressly provided
      herein, their respective Affiliates) any right or remedy under or by reason
      of
      this Agreement. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    15.11 Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed to be an original, but all of which shall constitute one
      agreement.

     

    15.12 Governing
      Law.
      This
      Agreement shall be governed by, and construed in accordance with, the laws
      of
      the State of Delaware without regard to principles of conflict of laws to the
      contrary.

     

    IN
      WITNESS WHEREOF, the parties have caused this Agreement to be duly executed
      by
      their respective representatives hereunto authorized as of the day and year
      first above written.

     

    

    
      	 	 	 
	 	SELLER:
	 	ANSWERBAG,
              INC.
	 
 	 
 	 
 
	 	By:  	 
	 	Title 	 

    

     

    
      	 	 	 
	 	BUYER:
	 	DEMAND ANSWERS, INC. 
	 
 	 
 	 
 
	 	By:  	 
	 	Title	 

    

     

    
      	 	 	 
	 	PARENT:
	 	INFOSEARCH MEDIA,
              INC.
	 	 
	 	 
	 	By:  	 
	 	Title 	 

      	 	 	 
	 	DMI:
	 	DEMAND MEDIA,
              INC.
	 
 	 
 	 
 
	 	By:  	 
	 	Title

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