Document:

ex4-2.htm

    Exhibit 4.2

    
 

    FORM
OF COMMON STOCK PURCHASE WARRANT

    

    This warrant and the common stock
shares issuable upon exercise of this warrant have not been registered under the
securities act of 1933, as amended (the “Securities Act”). This warrant and the
common stock shares issuable upon exercise of this warrant may not be sold,
offered for sale, pledged or hypothecated in the absence of an effective
registration statement under the securities act or an opinion of counsel
reasonably satisfactory to Accelerize New Media, Inc. that such registration is
not required.

    

    
      	 
      	
              Right
      to Purchase ______ shares of Common
      Stock of Accelerize New Media, Inc. (subject to adjustment as provided
      herein)

            

    

     

    FORM
OF COMMON STOCK PURCHASE WARRANT

     

    
      	No.   	Issue
      Date:  _____,
      2010

    

     

    ACCELERIZE
NEW MEDIA, INC., a corporation organized and existing under the laws of the
State of Delaware (the “Company”), hereby certifies that, for value received,
_________
or its assigns (the “Holder”) is entitled, subject to the terms set forth below,
to purchase from the Company at any time after the issue date (the “Issue Date”)
until 5:00 p.m., E.S.T. on the third (3rd) anniversary of the Issue Date (the
“Expiration Date”), _____ Thousand (00,000) fully paid
and nonassessable shares of Common Stock at a per share purchase price of
$0.65.  The afore described purchase price per share, as adjusted from
time to time as herein provided, is referred to herein as the “Purchase
Price.”  The number and character of such shares of Common Stock and
the Purchase Price are subject to adjustment as provided herein.  The
Company may reduce the Purchase Price without the consent of the
Holder.  Capitalized terms used and not otherwise defined herein shall
have the meanings set forth in that certain Convertible Promissory Note (the
“Note”) made by the Company to the Holder of the Warrant.

    

    As used
herein the following terms, unless the context otherwise requires, have the
following respective meanings:

    

    (a)           The
term “Company” shall include Accelerize New Media, Inc. and any corporation
which shall succeed or assume the obligations of Accelerize New Media, Inc.
hereunder.

    

    (b)           The
term “Common Stock” includes (a) the Company’s Common Stock, $0.001 par value
per share, and (b) any other securities into which or for which any of the
securities described in (a) may be converted or exchanged pursuant to a plan of
recapitalization, reorganization, merger, sale of assets or
otherwise.

     

    
      
         

      

      
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    (c)           The
term “Other Securities” refers to any stock (other than Common Stock) and other
securities of the Company or any other person (corporate or otherwise) which the
holder of the Warrant at any time shall be entitled to receive, or shall have
received, on the exercise of the Warrant, in lieu of or in addition to Common
Stock, or which at any time shall be issuable or shall have been issued in
exchange for or in replacement of Common Stock or Other Securities pursuant to
Section 4 herein or otherwise.

    

    (d)           The
term “Warrant Shares” shall mean the Common Stock issuable upon exercise of this
Warrant.

    

    1.           Exercise of
Warrant.

    

    1.1.           Number of Shares Issuable
upon Exercise.  From and after the Issue Date through and
including the Expiration Date, the Holder hereof shall be entitled to receive,
upon exercise of this Warrant in whole in accordance with the terms of
subsection 1.2 or upon exercise of this Warrant in part in accordance with
subsection 1.3, [00,000] of shares of Common Stock of the Company, subject to
adjustment pursuant to Section 4.

    

    1.2.           Full
Exercise.  This Warrant may be exercised in full by the Holder
hereof by delivery of an original or facsimile copy of the form of subscription
attached hereto as Exhibit A (the
“Subscription Form”) duly executed by such Holder and surrender of the original
Warrant within four (4) days of exercise, to the Company at its principal office
or at the office of its Warrant Agent (as provided hereinafter), accompanied by
payment, in cash, wire transfer or by certified or official bank check payable
to the order of the Company, in the amount obtained by multiplying the number of
shares of Common Stock for which this Warrant is then exercisable by the
Purchase Price then in effect.

     

    1.3.           Partial
Exercise.  This Warrant may be exercised in part (but not for a
fractional share) by surrender of this Warrant in the manner and at the place
provided in subsection 1.2 except that the amount payable by the Holder on such
partial exercise shall be the amount obtained by multiplying (a) the number of
whole shares of Common Stock designated by the Holder in the Subscription Form
by (b) the Purchase Price then in effect.  On any such partial
exercise, the Company, at its expense, will forthwith issue and deliver to or
upon the order of the Holder hereof a new Warrant of like tenor, in the name of
the Holder hereof or as such Holder (upon payment by such Holder of any
applicable transfer taxes) may request, the whole number of shares of Common
Stock for which such Warrant may still be exercised.

     

    1.4.           Fair Market Value.
Fair Market Value of a share of Common Stock as of a particular date (the
“Determination Date”) shall mean:

     

    (a)           If
the Company’s Common Stock is traded on an exchange or is quoted on the Nasdaq
Stock Market, Inc., then the last sale price reported for the last business day
immediately preceding the Determination Date;

     

    
      
         

      

      
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    (b)           If
the Company’s Common Stock is not traded on an exchange or quoted on the Nasdaq
Stock Market, Inc. but is traded in the over-the-counter market, then the
average of the closing bid and ask prices reported for the last business day
immediately preceding the Determination Date;

     

    (c)           Except
as provided in clause (d) below, if the Company’s Common Stock is not publicly
traded, then as the Holder and the Company agree, or in the absence of such an
agreement, by arbitration in accordance with the rules then standing of the
American Arbitration Association, before a single arbitrator to be chosen from a
panel of persons qualified by education and training to pass on the matter to be
decided; or

     

    (d)           If
the Determination Date is the date of a liquidation, dissolution or winding up,
or any event deemed to be a liquidation, dissolution or winding up pursuant to
the Company’s charter, then all amounts to be payable per share to holders of
the Common Stock pursuant to the charter in the event of such liquidation,
dissolution or winding up, plus all other amounts to be payable per share in
respect of the Common Stock in liquidation under the charter, assuming for the
purposes of this clause (d) that all of the shares of Common Stock then issuable
upon exercise of all of the Warrants are outstanding at the Determination
Date.

     

    1.5.           Company
Acknowledgment. The Company will, at the time of the exercise of the
Warrant, upon the request of the Holder hereof acknowledge in writing its
continuing obligation to afford to such Holder any rights to which such Holder
shall continue to be entitled after such exercise in accordance with the
provisions of this Warrant. If the Holder shall fail to make any such request,
such failure shall not affect the continuing obligation of the Company to afford
to such Holder any such rights.

     

    1.6.           Delivery of Stock
Certificates, etc. on Exercise.  The Company agrees that the
shares of Common Stock purchased upon exercise of this Warrant shall be deemed
to be issued to the Holder hereof as the record owner of such shares as of the
close of business on the date on which this Warrant shall have been surrendered
and payment made for such shares as aforesaid. As soon as practicable after the
exercise of this Warrant in full or in part, and in any event within three (3)
business days thereafter, the Company at its expense (including the payment by
it of any applicable issue taxes) will cause to be issued in the name of and
delivered to the Holder hereof, or as such Holder (upon payment by such Holder
of any applicable transfer taxes) may direct in compliance with applicable
securities laws, a certificate or certificates for the number of duly and
validly issued, fully paid and nonassessable shares of Common Stock (or Other
Securities) to which such Holder shall be entitled on such exercise, plus, in
lieu of any fractional share to which such Holder would otherwise be entitled,
cash equal to such fraction multiplied by the then Fair Market Value of one full
share of Common Stock, together with any other stock or other securities and
property (including cash, where applicable) to which such Holder is entitled
upon such exercise pursuant to Section 1 or otherwise.

     

    
      
         

      

      
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    1.7.           Forced Exercise by the
Company. The Company reserves the right to call the Warrants, at a
redemption price of $.001 per Warrant, commencing on the first trading day after
the Common Stock of the Company has traded for ten (10) consecutive days at an
average closing price at or exceeding $1.25 per share. The call may be made
within ten (10) days from the date the Company’s Common Stock satisfies the
average trading price described above, but the Company is not required to make
any such call and may make the call on the terms described at any future date
where the trading price of the common stock satisfies the above criterion.
Investors will have thirty (30) days from the date of such notice to exercise
the Warrants, and in the event the Warrants are not exercised, the Company may
cancel them, and investors will receive payment of $0.001 per Warrant
share.  The Company will also have the right to assign the right to
exercise the Warrant for a period of thirty (30) days to another Purchaser in
this offering or to any other person whether or not such person is an existing
shareholder of the Company.  Investors will not receive any proceeds
in the event such other person exercises the Warrant.

     

    2.           Adjustments.

     

    2.1.           Reorganization,
Consolidation, Merger, etc.  In case at any time or from time
to time, the Company shall (a) effect a reorganization, (b) consolidate with or
merge into any other person or (c) transfer all or substantially all of its
properties or assets to any other person under any plan or arrangement
contemplating the dissolution of the Company, then, in each such case, as a
condition to the consummation of such a transaction, proper and adequate
provision shall be made by the Company whereby the Holder of this Warrant, on
the exercise hereof as provided in Section 1, at any time after the consummation
of such reorganization, consolidation or merger or the effective date of such
dissolution, as the case may be, shall receive, in lieu of the Common Stock (or
Other Securities) issuable on such exercise prior to such consummation or such
effective date, the stock and other securities and property (including cash) to
which such Holder would have been entitled upon such consummation or in
connection with such dissolution, as the case may be, if such Holder had so
exercised this Warrant, immediately prior thereto, all subject to further
adjustment thereafter as provided in Section 3.

    

    2.2.           Dissolution.  In
the event of any dissolution of the Company following the transfer of all or
substantially all of its properties or assets, the Company, prior to such
dissolution, shall at its expense deliver or cause to be delivered the stock and
other securities and property (including cash, where applicable) receivable in
accordance with Section 2.1 by the Holder of the Warrants upon their exercise
after the effective date of such dissolution pursuant to this Section
2.

    

    2.3.           Continuation of
Terms.  Upon any reorganization, consolidation, merger or
transfer (and any dissolution following any transfer) referred to in this
Section 2, this Warrant shall continue in full force and effect and the terms
hereof shall be applicable to the Other Securities and property receivable on
the exercise of this Warrant after the consummation of such reorganization,
consolidation or merger or the effective date of dissolution following any such
transfer, as the case may be, and shall be binding upon the issuer of any Other
Securities, including, in the case of any such transfer, the person acquiring
all or substantially all of the properties or assets of the Company, whether or
not such person shall have expressly assumed the terms of this Warrant as
provided in Section 3.

     

    
      
         

      

      
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    3.           Extraordinary Events
Regarding Common Stock.  In the event that the Company shall
(a) subdivide its outstanding shares of Common Stock, or (b) combine its
outstanding shares of the Common Stock into a smaller number of shares of the
Common Stock, then, in each such event, the Purchase Price shall, simultaneously
with the happening of such event, be adjusted by multiplying the then Purchase
Price by a fraction, the numerator of which shall be the number of shares of
Common Stock outstanding immediately prior to such event and the denominator of
which shall be the number of shares of Common Stock outstanding immediately
after such event, and the product so obtained shall thereafter be the Purchase
Price then in effect. The Purchase Price, as so adjusted, shall be readjusted in
the same manner upon the happening of any successive event or events described
herein in this Section 3. The number of shares of Common Stock that the Holder
of this Warrant shall thereafter, on the exercise hereof as provided in Section
1, be entitled to receive shall be adjusted to a number determined by
multiplying the number of shares of Common Stock that would otherwise (but for
the provisions of this Section 3) be issuable on such exercise by a fraction of
which (a) the numerator is the Purchase Price that would otherwise (but for the
provisions of this Section 3) be in effect, and (b) the denominator is the
Purchase Price in effect on the date of such exercise.

     

    4.           Certificate as to
Adjustments.  In each case of any adjustment or readjustment in
the shares of Common Stock (or Other Securities) issuable on the exercise of the
Warrants, the Company at its expense will promptly cause its Chief Financial
Officer or other appropriate designee to compute such adjustment or readjustment
in accordance with the terms of the Warrant and prepare a certificate setting
forth such adjustment or readjustment and showing in detail the facts upon which
such adjustment or readjustment is based, including a statement of (a) the
consideration received or receivable by the Company for any additional shares of
Common Stock (or Other Securities) issued or sold or deemed to have been issued
or sold, (b) the number of shares of Common Stock (or Other Securities)
outstanding or deemed to be outstanding, and (c) the Purchase Price and the
number of shares of Common Stock to be received upon exercise of this Warrant,
in effect immediately prior to such adjustment or readjustment and as adjusted
or readjusted as provided in this Warrant. The Company will forthwith mail a
copy of each such certificate to the Holder of the Warrant and any Warrant Agent
of the Company (appointed pursuant to Section 9 hereof).

     

    5.           Reservation of Stock, etc.
Issuable on Exercise of Warrant; Financial Statements.  The
Company will at all times reserve and keep available, solely for issuance and
delivery on the exercise of the Warrants, all shares of Common Stock (or Other
Securities) from time to time issuable on the exercise of the
Warrant.  This Warrant entitles the Holder hereof to receive copies of
all financial and other information distributed or required to be distributed to
the holders of the Company’s Common Stock.

     

    
      
         

      

      
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    6.           Assignment; Exchange of
Warrant.  Subject to compliance with applicable securities
laws, this Warrant, and the rights evidenced hereby, may be transferred by any
registered holder hereof (a “Transferor”). On the surrender for exchange of this
Warrant, with the Transferor’s endorsement in the form of Exhibit B attached
hereto (the “Transferor Endorsement Form”) and together with an opinion of
counsel reasonably satisfactory to the Company that the transfer of this Warrant
will be in compliance with applicable securities laws, the Company at its
expense, once, only, but with payment by the Transferor of any applicable
transfer taxes, will issue and deliver to or on the order of the Transferor
thereof a new Warrant or Warrants of like tenor, in the name of the Transferor
and/or the transferee(s) specified in such Transferor Endorsement Form (each a
“Transferee”), calling in the aggregate on the face or faces thereof for the
number of shares of Common Stock called for on the face or faces of the Warrant
so surrendered by the Transferor.  No such transfers shall result in a
public distribution of the Warrant.

     

    7.           Replacement of
Warrant.  On receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and, in
the case of any such loss, theft or destruction of this Warrant, on delivery of
an indemnity agreement or security reasonably satisfactory in form and amount to
the Company or, in the case of any such mutilation, on surrender and
cancellation of this Warrant, the Company at its expense, twice only, will
execute and deliver, in lieu thereof, a new Warrant of like tenor.

    

    8.           Warrant
Agent.  The Company may, by written notice to the Holder of the
Warrant, appoint an agent (a “Warrant Agent”) for the purpose of issuing Common
Stock (or Other Securities) on the exercise of this Warrant pursuant to Section
1, exchanging this Warrant pursuant to Section 6, and replacing this Warrant
pursuant to Section 7, or any of the foregoing, and thereafter any such
issuance, exchange or replacement, as the case may be, shall be made at such
office by such Warrant Agent.

    

    9.           Transfer on the Company’s
Books.  Until this Warrant is transferred on the books of the
Company, the Company may treat the registered holder hereof as the absolute
owner hereof for all purposes, notwithstanding any notice to the
contrary.

     

    10.           Notices.   All
notices, demands, requests, consents, approvals, and other communications
required or permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (i) personally served, (ii) deposited in the mail,
registered or certified, return receipt requested, postage prepaid, (iii)
delivered by reputable air courier service with charges prepaid, or (iv)
transmitted by hand delivery, telegram, or facsimile, addressed as set forth
below or to such other address as such party shall have specified most recently
by written notice.  Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or delivery by facsimile, with accurate confirmation generated by the
transmitting facsimile machine, at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered
other than on a business day during normal business hours where such notice is
to be received) or (b) on the second business day following the date of mailing
by express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur or (c) three
business days after deposited in the mail if delivered pursuant to subsection
(ii) above.  The addresses for such communications shall be: (i) if to
the Company to: 12121 WILSHIRE BLVD., SUITE 322, LOS ANGELES, CALIFORNIA 90025,
telecopier:  (310) 903 4001, and (ii) if to the Holder, to the
addresses and telecopier number set forth in the first paragraph of this
Warrant.  The Company may change its address for notices but only to
an address and fax number located in the United States.

     

    
      
         

      

      
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    11.           Miscellaneous.  This
Warrant and any term hereof may be changed, waived, discharged or terminated
only by an instrument in writing signed by the party against which enforcement
of such change, waiver, discharge or termination is sought. This Warrant shall
be construed and enforced in accordance with and governed by the laws of New
York.  Any dispute relating to this Warrant shall be adjudicated in
New York County in the State of New York.  The headings in this
Warrant are for purposes of reference only, and shall not limit or otherwise
affect any of the terms hereof.  The invalidity or unenforceability of
any provision hereof shall in no way affect the validity or enforceability of
any other provision.

     

    
      
         

      

      
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    IN
WITNESS WHEREOF, the Company has executed this Warrant as of the date first
written above.

     

    
      
        	 	 	 	ACCELERIZE NEW MEDIA,
      INC.	 
	 	 	 	 	 
	
                 

              	 	 	
                By: 

              	 
	
                 

              	 	 	
                 

              	 
	 	 	 	Name:
      Brian Ross	 
	 	 	 	 	 
	 	 	 	

                Title:
      Chief Executive
      Officer

              	 

      

    

     

     

    8Unassociated Document

    Exhibit
10.1

     

    Accelerize
New Media, INC.

     

    PLACEMENT
AGENT’S AGREEMENT

     

    

     

    August
14, 2009

     

    Network 1
Financial Securities, Inc.

    The
Galleria, Penthouse

    2 Bridge
Avenue, Building 2

    Red Bank,
New Jersey 07701

    

    Dear
Ladies & Gentlemen:

     

    The
undersigned, Accelerize New Media, Inc., a Delaware corporation (the “Company”),
proposes to offer for sale in a private placement (“Offering”), up to 2,666,666
shares of common stock at $0.45 per share (the “Common Stock”), plus 3-year
warrants to purchase an additional 1,333,333 shares of common stock with an
exercise price of $0.75 per share (the “Warrants”, and collectively with the
Common Stock, the “Securities”).

     

    Appointment
of Placement Agent; The Offering Period.

     

    1.1           Appointment of Placement
Agent You are
hereby appointed non exclusive Placement Agent of the Company during the
offering period herein specified (“Offering Period”) for the purpose of
assisting the Company in placing the shares with purchasers who are qualified
accredited investors (“Subscribers”).  You hereby accept such agency
and agree to assist the Company in placing shares with the
Subscribers.  Your agency hereunder is terminable for any reason by
either party upon a thirty (30) day prior written notice, and immediately upon
termination of the Offering or breach by you of your material obligations
hereunder.

     

    1.2           Offering
Period The
Offering Period shall commence on the day the Offering Documents are first made
available to you by the Company and will continue until the earlier of final
Closing (as hereinafter defined) of the Maximum Offering or November 15, 2009
(the “Termination Date”), unless extended by the Company for a period of up to
an additional ninety (90) days from such date without notice to any Subscriber
(the “Offering Period”).  After the Initial Closing, subsequent
closings with respect to accepted subscriptions may take place at any time
during the Offering Period as may be mutually determined by the Company and the
Placement Agent (such subsequent closings and the Initial Closing will each be
referred to herein as a “Closing”).

     

    1.3           Offering
Documents  The
Company will provide the Placement Agent with a sufficient number of copies of
the Offering Documents for delivery to potential Subscribers and such other
information, documents and instruments which the Placement Agent deems
reasonably necessary to act as Placement Agent hereunder and to comply with the
rules, regulations and judicial and administrative interpretations respecting
compliance with applicable state and federal statutes related to the
Offering.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      Private
Placement Agent’s Agreement for Accelerize New Media, Inc.

      Page
2

    

     

     

    2.      Compliance with Securities
Laws Each of
the Company and the Placement Agent agrees to conduct the Offering in a manner
intended (a) to qualify as a private placement of the Securities in any
jurisdiction in which the Securities are offered (including the U.S.), and
(b) to comply with the requirements of Rule 506 of Regulation D under the
Securities Act.  Assuming the accuracy of the representations and
warranties given to the Company by each investor to the extent relevant for such
determination, the Offering will be exempt from the registration requirements of
the Securities Act.  The Company agrees (i) to limit offers to sell,
and solicitations of offers to buy, the Securities to persons reasonably
believed by it to be “accredited investors” within the meaning of Rule 501(a)
under the Securities Act, and (ii) not to engage in any form of general
solicitation or general advertising in connection with the Offering within the
meaning of Rule 502 under the Securities Act.  The Company agrees to
conduct the Offering in a manner intended to comply with the registration or
qualification requirements, or available exemptions therefrom, under applicable
state securities laws.  The Company shall be responsible for
compliance with the filing requirements of the securities laws of all applicable
countries, states of the U.S., and other jurisdictions.  The Placement
Agent shall advise the Company of those states of the U.S. and other
jurisdictions in which the Placement Agent intends to offer the Securities in
order that the Company’s counsel can ensure that the Offering has been qualified
or exempted under the appropriate laws and regulations.  The Placement
Agent shall not engage in sales of the Securities in any state requiring
pre-sale qualification until the Company has qualified to sell Securities in
such state.

     

    3.      Representations
and Warranties of the CompanyThe
Company represents and warrants to the Placement Agent and the Subscribers as
follows:

     

    3.1           Disclosure in Offering
Documents.

     

    3.1.1              Disclosure of
ContractsThe
descriptions in the Public Documents of all material contracts, agreements,
instruments, indentures, mortgages, loans, leases, licenses, arrangements or
undertakings of any nature, written or oral, of the Company which involve future
payments, performance or services, development of products, or delivery of goods
or materials to or by the Company of an aggregate amount or value in excess of
$250,000, or which otherwise are material to the business or prospects of the
Company (collectively, “Contracts”) are accurate in all material respects and
present fairly the information required to be disclosed therein and there are no
contracts or other documents required to be described in the Public Documents
which have not been so described.  The Company has furnished the
Placement Agent, when and if requested, with true, correct and complete copies
(or where oral, written descriptions) of all Contracts, including all exhibits,
schedules, amendments, supplements, modifications and waivers thereto. Except as
otherwise stated in the Public Documents, each of the Contracts is in full force
and effect, the Company has performed in all material respects all of its
obligations thereunder and is not in default thereunder, and no party to a
Contract has made a claim to the effect that the Company has failed to perform
any obligations thereunder.  To the best knowledge of the Company, the
Company has not received any written notification from any contracting party to
a Contract to terminate, cancel or modify such Contract or to reduce or
otherwise change its activity thereunder so as to adversely affect in any
material respect the benefits derived or expected to be derived therefrom by the
Company.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      Private
Placement Agent’s Agreement for Accelerize New Media, Inc.

      Page
3

       

       

    

    3.2           Changes After Dates in
Offering Documents.

     

    3.2.1              No Material Adverse
Change.  Except
as otherwise stated in the Public Documents, since the Balance Sheet Date, as
hereinafter defined, (i) there has been no material adverse change in the
condition, financial or otherwise, or in the results of operations, business or
business prospects of the Company, including, but not limited to a material loss
or interference with its business from fire, storm, explosion, flood or other
casualty, whether or not covered by insurance, or from any labor dispute or
court or governmental action, order or decree, whether or not arising in the
ordinary course of business, (ii) the Company has not become a party to, and
neither the business nor the property of the Company has become the subject of,
any litigation which, if adversely determined, would have a material adverse
effect on the business, properties, assets, condition (financial or otherwise)
of the Company, whether or not in the ordinary course of business (a “Material
Adverse Effect”), and (iii) there have been no transactions entered into by the
Company, other than those in the ordinary course of business or reflected in the
Public Documents, which are material with respect to the condition, financial or
otherwise, or to the results of operations, or business of the
Company.  The Balance Sheet Date is defined as December 31,
2008.

     

    3.2.2              Recent Securities
Transactions. Etc. 
Since the most recent Balance Sheet date, and except as otherwise specifically
stated in the Public Documents or on Schedule 3.2.2 hereto, the Company has not
(i) issued any securities or incurred any liability or obligation, direct or
contingent, for borrowed money; (ii) declared or paid any dividend or made any
other distribution on or in respect to its capital stock; or (iii) issued any
options, warrants or other rights to purchase the capital stock of the Company,
or any security or other instrument which by its terms is convertible into,
exercisable for or exchangeable for capital stock of the Company.

     

    3.3           No Preemptive Rights;
Options; Registration Rights. Except
as set forth in the Documents, there are no preemptive or other rights to
subscribe for or purchase, or any restriction upon the voting or transfer of,
any shares of Common Stock, or other securities of the Company.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      Private
Placement Agent’s Agreement for Accelerize New Media, Inc.

      Page
4

       

       

    

    3.4           Financial
Statements 
The financial statements of the Company, including any notes thereto and
supporting schedules, included or incorporated by reference in the Public
Documents (“Financials”), fairly present the financial position and results of
operations of the Company at the dates thereof and for the periods covered
thereby, subject, in the case of interim periods, to year-end adjustments and
normal recurring accruals.  The Company has no material liabilities or
obligations, contingent, direct, indirect or otherwise except (i) as set forth
in the balance sheet for the Balance Sheet Date included in the Financials or
the footnotes thereto, (ii) those incurred in the ordinary course of business
since the Balance Sheet Date, and (iii) otherwise as set forth in the Public
Documents.  The Public Documents also set forth all material
outstanding amounts due to any employees, officers, directors or stockholders of
the Company, or to any of their respective affiliates, including, but not
limited to, accrued salaries, loans, etc.

     

    3.5           Authorized Capital; Options;
Etc. The
Company had, at the date or dates indicated in the Public Documents, such duly
authorized, issued and outstanding capitalization as set forth in the Public
Documents.

     

    3.6           Valid Issuance of
Securities: Etc.

     

    3.6.1              Outstanding
Securities 
All issued and outstanding securities of the Company have been duly authorized
and validly issued and are fully paid and non-assessable; the holders thereof
have no rights of rescission with respect thereto, and are not subject to
personal liability by reason of being such holders; and none of such securities
were issued in violation of the preemptive rights of any holders of any security
of the Company or similar contractual rights granted by the
Company.  All outstanding options and warrants to purchase shares of
capital stock constitute the valid and binding obligations of the Company,
enforceable in accordance with their terms.  The authorized capital
stock and outstanding options and warrants conform to all statements relating
thereto contained in the Public Documents.  The offers and sales of
the outstanding capital stock, options and warrants to purchase shares of
capital stock were at all relevant times either registered under the Act and the
applicable state securities or Blue Sky laws or exempt from such registration
requirements.

     

    3.6.2              Common Shares &
Warrants The
securities underlying the warrants have been duly and validly authorized and,
when issued and delivered in accordance with the terms of the Subscription
Agreements, will be duly and validly issued, fully paid and
non-assessable.  The holders of the shares and warrants will not be
subject to personal liability by reason of being such holders.  All
corporate action required to be taken for the authorization, issuance and sale
of the shares and warrants and the securities contained in the warrants has been
duly and validly taken.

     

    3.7           Registration Rights of Third
Parties 
Except as set forth in the Public Documents or on Schedule 3.7 hereto, no
holders of any securities of the Company or of any options or warrants of the
Company exercisable for or convertible or exchangeable into securities of the
Company have the right to require the Company to register any such securities of
the Company under the Act or to include any such securities in a registration
statement to be filed by the Company.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
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    3.8           Due
Authorization  The
Company has full right, power and authority to enter into this Agreement and the
Subscription Agreements, to issue the shares and warrants and the securities
contained in the shares and warrants and to perform all of its obligations
hereunder and thereunder and to consummate the transactions contemplated by the
Offering Documents.  This Agreement has been, and the Subscription
Agreements, when executed and delivered, will have been, duly and validly
authorized by all necessary corporate action and no further corporate action or
approval is or will be required for their respective execution, delivery and
performance.  This Agreement constitutes and each Subscription
Agreement (assuming the due authorization, execution and delivery by each
subscriber) to be entered into by the Company with respect to the purchase and
sale of the shares and warrants, will constitute, when executed and delivered by
the Company, valid and binding obligations of the Company, enforceable against
the Company in accordance with their respective terms (except (i) as such
enforceability may be limited by bankruptcy, insolvency, reorganization or
similar laws now or hereafter in effect relating to or affecting creditors’
rights generally, (ii) that the enforceability of the indemnification and
contribution provisions of the respective agreements may be limited by the
federal and state securities laws and public policy, and (iii) that the remedy
of specific performance and injunctive and other forms of equitable relief may
be subject to the equitable defenses and to the discretion of the court before
which any proceeding therefor may be brought).

     

    3.9           No
Conflicts 
The Company’s execution, delivery, and performance of this Agreement and the
Subscription Agreements, the consummation by the Company of the transactions
contemplated herein and therein and the compliance by the Company with the
provisions of this Agreement and the Subscription Agreements have been duly
authorized by all necessary corporate action and do not and will not, with or
without the giving of notice or the lapse of time or both (i) result in a breach
of, or conflict with any of the terms and provisions of, or constitute a default
under, or result in the creation, modification, termination or imposition of any
lien, charge or encumbrance upon any property or assets of the Company pursuant
to the terms of any indenture, mortgage, deed of trust, note, loan or credit
agreement or any other agreement or instrument evidencing an obligation for
borrowed money, or any other agreement or instrument to which the Company is a
party or by which the Company may be bound or to which any of the property or
assets of the Company is subject; (ii) result in any violation of the provisions
of the Certificate of Incorporation or the By-laws of the Company; (iii) to the
best of the Company’s knowledge, violate any existing applicable law, rule,
regulation, judgment, order or decree of any governmental agency or court,
domestic or foreign, having jurisdiction over the Company or any of its material
properties or material businesses; or (iv) have any material adverse effect on
any permit, license, certificate, registration, approval, consent, license or
franchise necessary for the Company to own or lease and operate any of its
properties or to conduct its business.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
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    3.10           No
Defaults 
Except as described in the Public Documents, no material default exists in the
due performance and observance of any term, covenant or condition of any permit,
license, contract, indenture, mortgage, deed of trust, note, loan or credit
agreement, or any other agreement or instrument evidencing an obligation for
borrowed money, or any other agreement or instrument to which the Company is a
party or by which the Company may be bound or to which any of the properties or
assets of the Company is subject the effect of which would have a Material
Adverse Effect.  Except as described in the Public Documents, the
Company is not in violation of any material term or provision of its Certificate
of Incorporation or By-Laws or in material violation of any franchise, license,
permit, applicable law, rule, regulation, judgment or decree of any governmental
agency or court, domestic or foreign, having jurisdiction over the Company or
any of its properties or business.

     

    3.11           Corporate Power; Licenses;
Consents.

     

    3.11.1              Conduct of
Business  To
the Best of its knowledge, the Company has all requisite corporate power and
authority, and has all necessary authorizations, approvals, orders, licenses,
certificates and permits of and from all governmental regulatory officials,
agencies, authorities and bodies to own or lease its properties and conduct its
business as described in the Public Documents.  The Company is and has
been doing business in material compliance with all such authorizations,
approvals, orders, licenses, certificates and permits and all federal, state and
local laws, rules and regulations.  The disclosures in the Public
Documents concerning the effects of federal, state and local regulation on the
Company’s business as currently conducted or contemplated to be conducted are
correct in all material respects and do not omit to state a material
fact.

     

    3.11.2              Transactions Contemplated
Herein; Consents 
The Company has all corporate power and authority to enter into this Agreement,
and the Subscription Agreements to carry out the provisions and conditions
hereof and thereof, and all consents, authorizations, approvals and orders
required in connection therewith have been obtained.  Except as set
forth in the Public Documents, no consent, approval, authorization, order of, or
filing with, any court, governmental agency, authority or other body is required
to consummate the transactions contemplated by this Agreement and the
Subscription Agreements, and the issuance of the Securities, except that the
offer and sale of the Securities in certain jurisdictions may be subject to the
provisions of the securities or Blue Sky laws of such
jurisdictions.

     

    3.12           Title to Property;
Insurance 
Except as set forth in the Public Documents, the Company has good and marketable
title to, or valid and enforceable leasehold estates in, all items of real and
personal property (tangible and intangible) owned or leased by it, free and
clear of all liens, encumbrances, claims, security interests, defects and
restrictions of any material nature whatsoever.  The Company has
adequately insured its properties against loss or damage by fire or other
casualty and maintains such insurance in adequate amounts which are adequate to
protect its financial condition against the risks involved in the conduct of its
businesses.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
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    3.13           No Pending
Actions 
Except as set forth in the Public Documents, there are no actions, suits,
proceedings, claims, or hearings of any kind or nature existing or pending (or,
to the best knowledge of the Company, threatened) or, to the best knowledge of
the Company, any investigations or inquiries, before or by any court, or other
governmental authority, tribunal or instrumentality (or, the Company’s best
knowledge, any state of facts which would give rise thereto), pending or
threatened against the Company, or involving the properties of the Company,
which might result in any Material Adverse Effect or which might materially
adversely affect the transactions or other acts contemplated by this Agreement
or the validity or enforceability of this Agreement.  Except as
described in the Public Documents, there are no outstanding orders, judgments or
decrees of any court, governmental agency or other tribunal naming the Company
and enjoining the Company from taking, or requiring the Company to take, any
action, or to which the Company, its properties or business, is bound or
subject.

     

    3.14           Due Incorporation,
Qualification and Good Standing 
The Company has been duly incorporated, validly exists as a corporation and is
in good standing under the laws of its state of incorporation.  The
Company is duly qualified and licensed and in good standing as a foreign
corporation for the transaction of business and is in good standing in each
jurisdiction in which the ownership or leasing of its properties or the conduct
of its business requires such qualification or licensing, except where the
failure to qualify would not have a Material Adverse Effect.  The
Company has all requisite corporate power and authority necessary to own or hold
its properties and conduct its business as described in the Public
Documents.

     

    3.15           Taxes 
Except as set forth in the Public Documents or as set forth on Schedule 3.15
hereto, the Company has filed all federal tax returns and all state and
municipal and local tax returns (whether relating to income, sales, franchise,
withholding, real or personal property or other types of taxes) required to be
filed under the laws of the United States and applicable states, and has paid in
full all taxes which have become due pursuant to such returns or claimed to be
due by any taxing authority or otherwise due and owing; provided, however, that
the Company has not paid any tax, assessment, charge, levy or license fee that
it is contesting in good faith and by proper proceedings and adequate reserves
for the accrual of same are maintained if required by generally accepted
accounting principles.  Each of the tax returns heretofore filed by
the Company correctly and accurately reflects the amount of its tax liability
thereunder.  Except as set forth in the Public Documents, the Company
has withheld, collected and paid all levies, assessments, license fees and taxes
to the extent required.  As used herein, “tax” or “taxes” include all
taxes, charges, fees, levies or other assessments imposed by any Federal, state,
local, or foreign taxing authority, including, without limitation, income,
premium, recapture, credit, excise, property, sales, use, occupation, service,
service use, leasing, leasing use, value added, transfer, payroll, employment,
license, stamp, franchise or similar taxes (including any interest earned
thereon or penalties or additions attributable thereto).  The term
“returns” means all returns, declarations, reports, statements, and other
documents required to be filed in respect of taxes.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
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    3.16           Reserved.

     

    3.17           Transactions Affecting
Disclosure to NASD.

     

    3.17.1              Finder’s
Fees 
The Company is not obligated to pay a finder’s fee to anyone in connection with
the introduction of the Company to the Placement Agent, or the consummation of
the Offering contemplated hereunder.

     

    3.17.2              Use of
Proceeds 
None of the net proceeds of the Offering will be paid by the Company to any NASD
member or its affiliate or associates, except as specifically authorized
herein.

     

    3.18           Foreign Corrupt Practices
Act 
Neither the Company nor any of its subsidiaries has, nor any director, officer,
agent, employee or other person acting on behalf of the Company or any
subsidiary has in the course of his actions for or on behalf of the Company,
used any corporate funds for any unlawful contribution, gift, entertainment or
other unlawful expenses relating to political activity; made any direct or
indirect unlawful payment to any foreign or domestic government official or
employee from corporate funds; violated or is in violation of any provision of
the U.S. Foreign Corrupt Practices Act of 1977, as amended; or made any bribe,
rebate, payoff, influence payment, kickback or other unlawful payment to any
foreign or domestic government official or employee.  Without limiting
the generality of the foregoing, the Company and its subsidiaries have not
directly or indirectly made or agreed to make (whether or not said payment is
lawful) any payment to obtain, or with respect to, sales other than usual and
regular compensation to its or their employees and sales representatives with
respect to such sales.

     

           
3.19           Intangibles 
The Company owns or possesses the requisite licenses or rights to use all
material trademarks, service marks, service names, trade names, patents and
patent applications, copyrights and other rights (collectively, “Intangibles”)
used by the Company in its business or relating to products sold by the Company,
and all such Intangibles are stated in the Public Documents.  Any of
the Company’s Intangibles which have been registered in the United States Patent
and Trademark Office have been fully maintained and are in full force and
effect, except where the failure to do so would not result in a Material Adverse
Effect.  There is no claim or action by any person pertaining to, or
proceeding pending or to the Company’s knowledge, threatened and the Company has
not received any notice of conflict with the asserted rights of others which
challenges the exclusive right of the Company with respect to any Intangibles
used in the conduct of the Company’s business except as described in the Public
Documents or except where such challenge, even if successful, would not result
in a Material Adverse Effect.  To the best of Company’s knowledge, the
Intangibles and the Company’s current products, services and processes do not
infringe on any intangibles held by any third party.  To the best of
the Company’s knowledge, no others have infringed upon the Intangibles of the
Company.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
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    3.19           Relations With
Employees.

     

    3.19.1              Employee
Matters 
The Company has generally enjoyed a satisfactory employer-employee relationship
with its employees and is in compliance in all material respects with all
federal, state and local laws and regulations respecting the employment of its
employees and employment practices, terms and conditions of employment and wages
and hours relating thereto.  There are no pending investigations
involving the Company by the U.S. Department of Labor, or any other governmental
agency responsible for the enforcement of such federal, state or local laws and
employment laws and regulations.  There is no unfair labor practice
charge or complaint against the Company pending before a Labor Relations Board
or any strike, picketing, boycott, dispute, slowdown or stoppage pending or
threatened against or involving the Company or any predecessor
entity.  No questions concerning representation exist respecting the
employees of the Company and no collective bargaining agreement or modification
thereof is currently being negotiated by the Company.  No grievance or
arbitration proceeding is pending under any expired or existing collective
bargaining agreements of the Company, if any.

     

    3.19.2              Employee Benefit
Plans 
Except as disclosed in the Public Documents, the Company neither maintains,
sponsors nor contributes to, nor is it required to contribute to, any program or
arrangement that is an “employee pension benefit plan, an employee welfare
benefit plan,” or a “multi-employer plan” as such terms are defined in Sections
3(2), 3(1) and 3(37), respectively, of the Employee Retirement Income Security
Act of 1974, as amended (“ERISA”) (“ERISA Plans”).  Other than as
disclosed in the Public Documents, the Company does not, and has at no time,
maintained or contributed to a defined benefit plan, as defined in Section 3(35)
of ERISA.  Except as disclosed in the Public Documents, there are no
unfunded benefits under any ERISA Plan which is subject to the funding standards
of ERISA. Other than claims for benefits in the ordinary course, there is no
pending claim, litigation, arbitration or any other legal proceeding involving
any ERISA Plan which may result in material liability on the part of the Company
or any ERISA Plan under ERISA or any other law, nor, is there any reasonable
basis for such a claim.  The Company has no bonus, incentive or
deferred compensation plans which constitute a continuing liability of the
Company, except individual arrangements of the Company with employees relating
to their employment.  There are no employees of the Company who, in
connection with their employment by the Company, are receiving any pension or
retirement payments or are entitled to receive any unfunded pensions not covered
by a pension plan to which the Company is a party.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
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    3.20           Environmental
Matters 
The Company and each of its subsidiaries is in compliance in all material
respects with all Environmental and Safety Requirements, and there are no
proceedings pending or, to the knowledge of the Company, threatened against the
Company or any of its subsidiaries alleging any failure to so comply or
involving any of its past operations or any real property currently used by the
Company or any of its subsidiaries.  Neither the Company nor any of
its subsidiaries has received any written or oral notice or report with respect
to it or its facilities regarding any (A) actual or alleged violation of
environmental and safety requirements or (B) actual or potential liability
arising under Environmental and Safety Requirements, including, without
limitation, any investigatory, remedial or corrective
obligation.  Neither the Company nor any of its subsidiaries has
expressly assumed or undertaken any liability of any other person under any
Environmental and Safety Requirements.  Neither the Company nor any of
its subsidiaries has treated, stored, disposed of, arranged for or permitted the
disposal of, transported, handled or released any substance, or owned or
operated any real property in a manner that has given rise to liabilities
pursuant to CERCLA, SWDA or any other Environmental and Safety Requirement,
including any liability for response costs, corrective action costs, personal
injury, property damage, natural resources damage or attorney fees, or any
investigative, corrective or remedial obligations.  “Environmental and Safety
Requirements” means all laws, orders, contractual obligations and all
common law concerning public health and safety, worker health and safety, and
pollution or protection of the environment, including, without limitation, all
those relating to the presence, use, production, generation, handling,
transportation, treatment, storage, disposal, distribution, labeling, testing,
processing, discharge, release, threatened release, control or cleanup of any
hazardous materials, substances or wastes, chemical substances or mixtures,
pesticides, pollutants, contaminants, toxic chemicals, petroleum products or
byproducts, asbestos, polychlorinated biphenyls, noise or radiation, including,
but not limited to, the SWDA, the Clean Air Act, as amended, 42 U.S.C. §§ 7401
et seq., the Federal Water Pollution Control Act, as amended, 33 U.S.C. §§ 1251
et seq., the Emergency Planning and Community Right-to-Know Act, as amended, 42
U.S.C. §§ 11001 et seq., CERCLA, the Hazardous Materials Transportation Uniform
Safety Act, as amended, 49 U.S.C. §§ 5101 et seq., the Occupational Safety and
Health Act of 1970, as amended, and the rules and regulations promulgated
thereunder.  “CERCLA” means the
Comprehensive Environmental Response, Compensation, and Liability Act, as
amended, and the rules and regulations promulgated thereunder.  “SWDA” means the Solid
Waste Disposal Act, as amended, and the rules and regulations promulgated
thereunder.

    

    3.21           No Regulatory
Problems 
The Company (i) has not filed a registration
statement which is the subject of any pending proceeding or examination under
Section 8 of the Securities Act, and is not and has not been the subject of any
refusal order or stop order thereunder; (ii) is not subject to any pending
proceeding under Rule 258 of the Securities Act or any similar rule adopted
under Section 3(b) of the Securities Act, or to an order entered thereunder;
(iii) has not been convicted of any felony or misdemeanor in connection with the
purchase or sale of any security or involving the making of any false filing
with the Commission; (iv) is not subject to any order, judgment, or decree of
any court of competent jurisdiction temporarily or preliminarily restraining or
enjoining, or any order, judgment, or decree of any court of competent
jurisdiction permanently restraining or enjoining, the Company from engaging in
or continuing any conduct or practice in connection with the purchase or sale of
any security or involving the making of any false filing with the
Commission;  and (v) is not subject to a United States Postal Service
false representation order entered under Section 3005 of Title 39, United States
Code; or a temporary restraining order or preliminary injunction entered under
Section 3007 of Title 39, United States Code, with respect to conduct alleged to
have violated Section 3005 of Title 39, United States Code.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
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    To the
Company’s knowledge, none of the Company’s directors, officers, or beneficial
owners of five (5%) percent or more of any class of its equity securities (i)
has been convicted of any felony or misdemeanor in connection with the purchase
or sale of any security, involving the making of a false filing with the
Commission, or arising out of the conduct of the business of an underwriter,
broker, dealer, municipal securities dealer, or investment advisor; (ii) is
subject to any order, judgment, or decree of any court of competent jurisdiction
temporarily or preliminarily enjoining or restraining, or is subject to any
order, judgment, or decree of any court of competent jurisdiction, permanently
enjoining or restraining such person from engaging in or continuing any conduct
or practice in connection with the purchase or sale of any security, or
involving the making of a false filing with the Commission, or arising out of
the conduct of the business of an underwriter, broker, dealer, municipal
securities dealer, or investment adviser; (iii) is subject to an order of the
Commission entered pursuant to Section 15(b), 15B(a) or 15B(c) of the Exchange
Act, or is subject to an order of the Commission entered pursuant to Section
203(e) or (f) of the Investment Advisers Act of 1940; (iv) is suspended or
expelled from membership in, or suspended or barred from association with a
member of, an exchange registered as a national securities exchange pursuant to
Section 6 of the Exchange Act, an association registered as a national
securities association under Section 15A of the Exchange Act, or a Canadian
securities exchange or association for any act or omission to act constituting
conduct inconsistent with just and equitable principles of trade; or (v) is
subject to a United States Postal Service false representation order entered
under Section 3005 of Title 39, United States Code, or is subject to a
restraining order or preliminary injunction entered under Section 3007 of Title
39, United States Code, with respect to conduct alleged to have violated Section
3005 of Title 39, United States Code.

     

    3.22           Stock
Collateral 
None of the Company’s obligations to any third party are secured by any of the
Company’s outstanding securities.

     

    3.23           Reaffirmation 
All of the representations, warranties and covenants of the Company set forth in
this Agreement or in any letter or certificate furnished to Placement Agent
pursuant hereto, each of which is incorporated herein by reference and made a
part hereof, shall be true in all material respects upon the execution of this
Agreement.

     

    4.      Representations
and Warranties of the Placement AgentThe
Placement Agent represents and warrants as follows:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
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    4.1           Due
Incorporation 
The Placement Agent is duly incorporated and validly existing and in good
standing under the laws of its state of incorporation and is duly qualified as a
foreign corporation for the transaction of business and is in good standing in
each jurisdiction where the failure to be so qualified would have a materially
adverse effect on the business of the Placement Agent.

     

    4.2           Broker/Dealer
Registration 
The Placement Agent is registered as a broker-dealer under Section 15 of the
Exchange Act.

     

    4.3           Good
Standing 
The Placement Agent is a member in good standing of the NASD and no proceedings
are pending or to the Placement Agent’s knowledge, threatened, to revoke or
limit such status.

     

    4.4           Sale in Certain
Jurisdictions 
Sales of Shares by the Placement Agent will be made only in such jurisdictions
in which (i) the Placement Agent is a registered broker-dealer or where an
applicable exemption from such registration exists and (ii) the Offering and
sale of Securities is registered under, or is exempt from, applicable
registration requirements.

     

    4.5           Compliance with
Laws  Offers
and sales of Shares by the Placement Agent will be made in compliance with the
provisions of Rule 506 of Regulation D and/or Section 4(2) of the Act, and the
Placement Agent will furnish to each investor a copy of the Offering Documents
prior to accepting any payments for Shares.

     

    4.6           Sale to Accredited
Investors, No General Solicitation. The Placement Agent understands that
the Securities have not been registered under the Securities Act or any Blue Sky
law of any state and may not be offered or sold except pursuant to an exemption
from, or in a transaction not subject to, the registration requirements of the
Securities Act and such Blue Sky laws. The Placement Agent agrees that it will
not solicit offers for, or offer or sell, the Securities by any form of general
solicitation or general advertising within the meaning of Section 4(2) of the
Securities Act, and Rule 506 thereunder.  The Placement Agent further
agrees to not offer or sell or arrange for the offer or sale of the Securities
except (i) to those the Placement Agent reasonably believes are “accredited
investors” (as defined in Rule 501 of Regulation D), or (ii) in any other manner
that does not require registration of the Securities under the Securities
Act.

     

    4.7          
Due
Authorization.The Placement Agent has all requisite power and
authority to execute, deliver and perform its obligations under this Agreement
between the Company and the Placement Agent, and this Agreement will be duly
authorized and validly executed and delivered by the Placement Agent and
constitutes a legal, valid and binding agreement of the Placement Agent
enforceable against the Placement Agent in accordance with its
terms.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
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    5.      Closing.  At
or prior to each closing, and as a condition of the Placement Agent’s
obligations hereunder, the following shall have been satisfied:  (i)
the Company shall have delivered to the Placement Agent at the closing (a) a
certificate of the Company, signed by two executive officers thereof, stating
the representations and warranties contained herein are true and correct as of
the date of such closing as if, and to the same effect, the warranties and
representations were made on such date;  (b) Subscription Agreements
signed by the Company; (c) Consents of any party required to consummate this
Offering and the transactions contemplated thereby;  and (d) such
other closing documents as shall be reasonably requested by the Placement Agent
and/or its counsel.

     

    5.1           Placement Agent’s Fees and
Expenses 
Upon the execution of this agreement, the company will pay a non refundable
advance of $10,000 for expenses (the “Retainer Amount”). At the Initial Closing,
and at each subsequent Closing, the Company shall pay to the Placement Agent a
commission equal to ten (10%) percent of the aggregate purchase price of the
shares sold by the Placement Agent plus up to three (3%) percent Non-Accountable
Expense Allowance of the aggregate purchase price of each share sold. The
Retainer Amount will be applied against the Non Accountable Expenses Allowance,
and the Placement Agent will be entitled only to the difference between them, if
any. In any event, the total Expenses of Offering payable by the Company shall
not exceed thirty thousand dollars ($36,000). The company will also issue to the
Placement Agent shares of common stock equal to ten percent (10%) of the total
number of shares of common stock issued to the Subscribers.

     

    5.2           Additional Finder’s
Fee.  In
the event that at any time prior to the second (2nd)
anniversary of the final Closing (as defined in the Placement Agent Agreement)
the Company or any of its affiliates shall enter into any transaction
(including, without limitation, any merger, consolidation, acquisition,
financing, joint venture or other arrangement) with any party introduced to the
Company directly by the Placement Agent, which party is listed in Exhibit A attached
hereto or is added to Exhibit A by the Placement Agent throughout the term of
this Agreement, during
such period, the Placement Agent will be paid a transaction fee, payable at the
closing thereof, equal to a percentage of the consideration or value received by
the Company and/or its stockholders as follows: (a) 5% of the first
$1,000,000, (b) 4% of the next $1,000,000, (c) 3% of the next
$1,000,000, (d) 2% of the next $1,000,000, and (e) 1% of all amounts
in excess of $4,000,000 [or whatever arrangement you deem appropriate]. In no
event shall the fees payable pursuant to this paragraph together with any
other fees paid to the Placement Agent by the Company shall exceed the maximum
finder's fee allowed by the Financial Industry Regulatory Authority (“FINRA”) at
the time of such transaction.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      Private
Placement Agent’s Agreement for Accelerize New Media, Inc.

      Page
14

       

       

    

    6.      Covenants 
The Company covenants and agrees that:

     

    6.1           Expenses of Offering and
Other Expenses 
The Company shall be responsible for, and shall pay, all fees, disbursements and
expenses incurred in connection with the Offering, including, but not limited
to, the Company’s legal and accounting fees and disbursements, the costs of
preparing, printing, mailing and delivering, and filing, where necessary, the
Offering Documents and all amendments and supplements thereto (in such
quantities as the Placement Agent may reasonably require), the costs of any “due
diligence” meeting held by the Company as requested by the Placement Agent, the
fees and disbursements of the Placement Agent counsel. The total Expenses of
Offering and Other Expenses in accordance with this Section shall not exceed
thirty thousand dollars ($36,000).

     

    6.2   Further
Assurances 
The Company will take such actions as may be reasonably required or desirable to
carry out the provisions of this Agreement and the transaction contemplated
hereby.

     

    7.      Indemnification and
Contribution.

     

    7.1           Indemnification by the
Company 
The Company agrees to indemnify and hold harmless the Placement Agent and each
person, if any, who controls the Placement Agent within the meaning of the
Securities Act and/or the Exchange Act against any losses, claims, damages or
liabilities, joint or several, to which the Placement Agent or such controlling
person may become subject, under the Securities Act or otherwise, insofar as
such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon (i) any untrue statement or alleged untrue
statement of a material fact contained (A) in the Offering Documents, or (B) in
any blue sky application or other document executed by the Company specifically
for blue sky purposes or based upon any other written information furnished by
the Company or on its behalf to any state or other jurisdiction in order to
qualify any or all of the Securities under the securities laws thereof (any such
application, document or information being hereinafter called a “Blue Sky
Application”), (ii) any breach by the Company of any of its representations,
warranties or covenants contained herein or in any of the Subscription
Agreements, or (iii) the omission or alleged omission by the Company to state in
the Offering Documents or in any Blue Sky Application a material fact required
to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading; and will reimburse
the Placement Agent and each such controlling person for any legal or other
expenses reasonably incurred by the Placement Agent or such controlling person
in connection with investigating or defending any such loss, claim, damage,
liability or action, whether arising out of an action between the Placement
Agent and a third party; provided, however, that the Company will not be liable
in any such case to the extent that any such loss, claim, damage or liability
arises out of or is based upon (i) an untrue statement or alleged untrue
statement or omission or alleged omission made in reliance upon and in
conformity with written information regarding the Placement Agent which is
furnished to the Company by the Placement Agent specifically for inclusion in
the Offering Documents or any such Blue Sky Application or (ii) any breach by
the Placement Agent of the representations, warranties or covenants contained
herein (together, (i) and (ii) above are referred to as the “Non-indemnity
Events”).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      Private
Placement Agent’s Agreement for Accelerize New Media, Inc.

      Page
15

       

       

    

    7.2           Indemnification by the
Placement Agent 
The Placement Agent agrees to indemnify and hold harmless the Company and each
person, if any, who controls the Company within the meaning of the Securities
Act and/or the Exchange Act against any losses, claims, damages or liabilities,
joint or several, to which the Company or such controlling person may become
subject, under the Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
Non-Indemnity Event; and will reimburse the Company and each such controlling
person for any legal or other expenses reasonably incurred by the Company or
such controlling person in connection with investigating or defending any such
loss, claim, damage, liability or action provided that such loss, claim, damage
or liability is found ultimately to arise out of or be based upon any
Non-Indemnity Event.

     

    7.3           Procedure 
Promptly after receipt by an indemnified party under this Section 7 of notice of
the commencement of any action, such indemnified party will, if a claim in
respect thereof is to be made against any indemnifying party under this Section
7, notify in writing the indemnifying party of the commencement thereof; and the
omission so to notify the indemnifying party will relieve the indemnifying party
from any liability under this Section 6 as to the particular item for which
indemnification is then being sought, but not from any other liability which it
may have to any indemnified party.  In case any such action is brought
against any indemnified party, and it notifies an indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate
therein, and to the extent that it may wish, jointly with any other indemnifying
party, similarly notified, to assume the defense thereof, with counsel who shall
be to the reasonable satisfaction of such indemnified party, and after notice
from the indemnifying party to such indemnified party of its election so to
assume the defense thereof, the indemnifying party will not be liable to such
indemnified party under this Section 6 for any legal or other expenses
subsequently incurred by such indemnified party in connection with the defense
thereof.  Any such indemnifying party shall not be liable to any such
indemnified party on account of any settlement of any claim or action effected
without the consent of such indemnifying party.

     

    7.4           Contribution  If
the indemnification provided for in this Section 7 is unavailable to any
indemnified party (other than as a result of the failure to notify the
indemnifying party as provided in Section 7.3 hereof) in respect to any losses,
claims, damages, liabilities or expenses referred to therein, then the
indemnifying party, in lieu of indemnifying such indemnified party, will
contribute to the amount paid or payable by such indemnified party, as a result
of such losses, claims, damages, liabilities or expenses (i) in such proportion
as is appropriate to reflect the relative benefits received by the Company on
the one hand, and the Placement Agent, on the other hand, from the Offering, or
(ii) if the allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above, but also the relative fault
of the Company, on the one hand , and of the Placement Agent, on the other hand,
in connection with the statements or omissions which resulted in such losses,
claims, damages, liabilities or expenses as well as any other relevant equitable
considerations.  The relative benefits received by the Company, on the
one hand, and the Placement Agent, on the other hand, shall be deemed to be in
the same proportion as the total proceeds from the Offering (net of sales
commissions, but before deducting other expenses) received by the Company bear
to the commissions received by the Placement Agent.  The relative
fault of the Company, on the one hand, and the Placement Agent, on the other
hand, will be determined with reference to, among other things, whether the
untrue or alleged untrue statement of a material fact of the omission to state a
material fact relates to information supplied by the Company, on the one hand,
and the Placement Agent, on the other hand, and their relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      Private
Placement Agent’s Agreement for Accelerize New Media, Inc.

      Page
16

       

       

    

    7.5           Equitable
Considerations The
Company and the Placement Agent agree that it would not be just and equitable if
contribution pursuant to this Section 7 were determined by pro rata allocation
or by any method of allocation which does not take into account the equitable
consideration referred to in the immediately preceding paragraph.  No
person guilty of fraudulent misrepresentation (within the meaning of Section 11
(f) of the 1933 Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation.

     

    7.6           Attorneys’
Fees The
amount payable by a party under this Section 7 as a result of the losses,
claims, damages, liabilities or expenses referred to above will be deemed to
include any legal or other fees or expenses reasonably incurred by such party in
connection with investigating or defending any action or claim (including,
without limitation, fees and disbursements of counsel incurred by an indemnified
party in any action or proceeding between the indemnifying party and indemnified
party or between the indemnified party and any third party or
otherwise).

     

    8.      Termination 
Prior to the completion of the Offering Documents and the commencement of the
Offering, either party may terminate this Agreement by giving a prior written
notice to the other party, provided that the terminating party agrees to
reimburse the other party in full for its reasonable out-of-pocket expenses
(including, without limitation, its legal fees and disbursements), up to a
maximum of $10,000. Following the completion of the Offering Documents and the
commencement of the Offering, each of the Company and the Placement Agent will
have the right to terminate this Agreement for any reason by giving a 30-day
prior written notice to the other party, or, immediately upon notice at any
time, at or prior to the Initial Closing:  (a) if the other party
shall have failed, refused, or been unable to perform any of its obligations
hereunder, or breached any of its representations or warranties hereunder; or
(b) if, in the Placement Agent’s or the Company’s reasonable opinion, there has
occurred an event materially affecting the value of the
Securities.  If the Placement Agent elects not to proceed with the
Offering as a result of the condition enumerated in clause (a) above, or the
Company elects not to proceed with the Offering for any reason other than the
Placement Agent’s failure to proceed expeditiously with the Offering, the
Company shall reimburse the Placement Agent in full for its reasonable
out-of-pocket expenses (including, without limitation, its legal fees and
disbursements), up to a maximum of $10,000. If the Company elects not to proceed
with the Offering as a result of the condition enumerated in clause (a) above,
or the Placement Agent elects not to proceed with the Offering for any reason
other than the Company’s failure to proceed expeditiously with the Offering, the
Placement Agent shall reimburse the Company in full for its reasonable
out-of-pocket expenses (including, without limitation, its legal fees and
disbursements), up to a maximum of $10,000.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      Private
Placement Agent’s Agreement for Accelerize New Media, Inc.

      Page
17

       

       

    

    9.      Competing
Claims 
The Company acknowledges and agrees that the Placement Agent will not proceed to
perform hereunder until it receives assurances, in form and substance
satisfactory to the Placement Agent and their counsel, that as of the first date
that the Offering Documents are presented to potential purchasers of Shares,
there will be no claims or payments for services in the nature of a finder’s fee
with respect to the Offering or any other arrangements, agreements, payments,
issuances or understandings that may affect the Placement Agent’s compensation
hereunder other than any claims that may be made by the Placement Agent’s own
personnel.  The
Placement Agent shall compensate any of its personnel who may have acted in such
capacities, as it shall determine.

     

    10.      Miscellaneous.

     

    (a)           Governing
Law.  This Agreement will be deemed to have been made and
delivered in the State of New York and will be governed as to validity,
interpretation, construction, effect and in all other respects by the internal
law of the State of New York, without regard to principles of conflicts of
law.  The Company (i) agrees that any legal suit, action or proceeding
arising out of or relating to this Agreement shall be instituted exclusively in
the Supreme Court of New York, or in the United States District Court for the
Southern District of New York, (ii) waives any objection to the venue of any
such suit, action or proceeding, and the right to assert that such forum is an
inconvenient forum, and (iii) irrevocably consents to the jurisdiction of the
Supreme Court of New York, and the United States District Court for the Southern
District of New York in any such suit, action or proceeding.  The
Company further agrees to accept and acknowledge service of any and all process
which may be served in any such suit, action or proceeding in the Supreme Court
of New York or the United States District Court for the Southern District of New
York and agrees that service of process upon it mailed by certified mail to its
address shall be deemed in every respect effective service of process upon it in
any such suit, action or proceeding.

     

    (b)           Counterparts.  This
Agreement may be executed in any number of counterparts each of which shall be
deemed an original and all of which together shall constitute one and the same
instrument.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      Private
Placement Agent’s Agreement for Accelerize New Media, Inc.

      Page
18

       

       

    

    (c)           Parties.  This
Agreement will inure to the benefit of and be binding upon the parties hereto
and their respective successors and assigns.  Neither party may assign
this Agreement or its obligations hereunder without the prior written consent of
the other party.  This Agreement is intended to be, and is, for the
sole and exclusive benefit of the parties hereto and the persons described in
Section 6.1 and 6.2 hereof and their respective successors and assigns, and for
the benefit of no other person, and no other person will have any legal or
equitable right, remedy or claim under, or in respect of this
Agreement.

     

    (d)           Amendment and/or
Modification.  Neither this Agreement, nor any term or
provision hereof, may not be changed, waived, discharged, amended, modified or
terminated orally, or in any manner other than by an instrument in writing
signed by each of the parties hereto.

     

    (e)           Validity.  In
case any term of this Agreement will be held invalid, illegal or unenforceable,
in whole or in part, the validity of any of the other terms of this Agreement
will not in any way be affected thereby.

     

    (f)           Waiver of
Breach.  The failure of any party hereto to insist upon strict
performance of any of the covenants and agreements herein contained, or to
exercise any option or right herein conferred in any one or more instances, will
not be construed to be a waiver or relinquishment of any such option or right,
or of any other covenants or agreements, and the same will be and remain in full
force and effect.

     

    (g)           Further
Assurances.  Each party to this Agreement will perform any and
all acts and execute any and all documents as may be necessary and proper under
the circumstances in order to accomplish the intents and purposes of this
Agreement and to carry out its provisions.

     

    11.           Entire
Agreement.  This Agreement contains the entire agreement and
understanding of the parties with respect to the subject matter hereof and
thereof, respectively, and there are no representations, inducements, promises
or agreements, oral or otherwise, not embodied in this Agreement.  Any
and all prior discussions, negotiations, commitments and understanding relating
to the subject matter of these agreements are superseded by them.

     

    [REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK]

     

    [SIGNATURE
PAGES FOLLOW]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      Private
Placement Agent’s Agreement for Accelerize New Media, Inc.

      Page
19

       

       

    

    If you
find the foregoing is in accordance with our understanding, kindly sign and
return to us a counterpart hereof, whereupon this instrument along with all
counterparts will become a binding agreement between us.

     

    
      
        	 	 	 	
                
                  Very
      truly yours,

                  

                  Accelerize
      New Media, Inc.

                

                 

              	 
	
                 

              	 	 	
                By:
      /s/ Brian Ross

              	 
	
                 

              	 	 	
                
                  Brian
      Ross

                  Chief
      Executive Officer

                

              	 
	 	 	 	 	 
	
                AGREED
      TO:

                

                NETWORK
      1 FINANCIAL SECURITIES, INC.

              	 	 	 	 
	 	 	 	 	 
	By:
      /s/ Damon Testaverde	 	 	 	 
	
                Damon
      Testaverde

                Managing
      Director

              	 	 	 	 

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      Private
Placement Agent’s Agreement for Accelerize New Media, Inc.

      Page
20

      
 

    

    EXHIBIT
A

    

    LIST
OF INVESTORS INTRODUCED TO THE COMPANY

    BY
THE PLACEMENT AGENT

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      PLACEMENT
AGENT’S AGREEMENT AMENDMENT

       

      

      This
PLACEMENT AGENT’S AGREEMENT AMENDMENT (the “Amendment”) is effective as of
September 9, 2009 by and between Network 1 Financial Securities, Inc.("Placement
Agent"), and Accelerize New Media, Inc.( "Company") Together, Placement Agent
and Company are referred to as the "Parties:"

      

      W I T N E
S S E T H:

      

      WHEREAS, Placement Agent and Company
entered into a Placement Agent’s Agreement dated August 14, 2009 (“the
Agreement”), whereby Placement Agent was appointed non exclusive Placement Agent
of the Company during the offering period for the purpose of assisting Company
in placing the shares with purchasers who are qualified accredited
investors.

      

      WHEREAS, Placement Agent and Company
desire to amend certain provisions of the Agreement pertaining to the number of
shares, the number of warrants, and the price of the shares and
warrants.

      

      NOW, THEREFORE, in consideration of the
foregoing premises, the mutual covenants herein contained and each act performed
hereunder by the parties, Placement Agent and Company agree that the Agreement
is amended as follows:

      

      

      
        	
                 
      

              	
                1.

              	
                Incorporation of
      Recitals.  The above recitals are hereby incorporated
      into this Amendment as if fully set forth
  herein.

              

      

      

      
        	
                 
      

              	
                2.

              	
                Amendment of Opening
      Paragraph of Agreement.  The Opening Paragraph of the
      Agreement is hereby deleted in its entirety and the following is hereby
      substituted in lieu thereof:

              

      

      

      “The
undersigned, Accelerize New Media, Inc., a Delaware corporation (the “Company”),
proposes to offer for sale in a private placement (“Offering”), up to 3,000,000
shares of common stock at $0.40 per share (the “Common Stock”), plus 3-year
warrants to purchase an additional 3,000,000 shares of common stock with an
exercise price of $0.65 per share (the “Warrants”, and collectively with the
Common Stock, the “Securities”).

      

       

       

       

       

       

      [SIGNATURE
PAGE FOLLOWS.]

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      IN WITNESS WHEREOF, the parties have
caused this Amendment to be executed as of the Effective Date.

       

       

      
        	 	
                For:  Network
      1 Financial Services, Inc.

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/
      Damon Testaverde	 
	 	 	Damon
      Testaverde	 
	 	Its: 	Managing Director	 
	 	 	 	 

      

       

      
        
          	 	
                  For:  Accelerize
      New Media, Inc.

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ Brian Ross	 
	 	 	Brian Ross	 
	 	Its: 	Chief Executive Officer

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