Document:

Form of Secured Convertible Minimum Borrowing Note

  
 Exhibit 10.19

  
 THIS NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THIS NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE OR SUCH STOCK UNDER SAID ACT AND ANY APPLICABLE STATES SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO DIGITAL LIFESTYLES GROUP, INC. THAT SUCH REGISTRATION IS NOT REQUIRED.

  
 SECURED CONVERTIBLE MINIMUM BORROWING NOTE

  
 FOR VALUE RECEIVED, DIGITAL LIFESTYLES GROUP, INC. a
Delaware corporation (the “Borrower”) promises to pay to LAURUS MASTER FUND, LTD., M&C Corporate Services Limited, P.O. Box 309 GT, Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, Fax: 345-949-8080
(the “Holder”) or its registered assigns, the sum of Two Million Seven Hundred Fifty Thousand Dollars ($2,750,000), or, if different, the aggregate principal amount of all “Loans” not evidenced by the Revolving Note (as
such term is defined in the Security Agreement referred to below), together with any accrued and unpaid interest hereon, on November 29, 2007 (the “Maturity Date”). 
  
 Capitalized terms used herein without definition shall have the meanings ascribed to such terms in the Security Agreement
between Borrower, certain Subsidiaries of the Borrower and the Holder dated as of November 29, 2004 (as amended, modified and supplemented from time to time, the “Security Agreement”). 
  
 The following terms shall apply to this Minimum Borrowing Note (the “Note”):

  
 ARTICLE I 
 INTEREST 
  
 1.1 Contract Rate. Subject to Sections 1.2, 4.2, 5.1 and 6.7 hereof, interest payable on this Note shall accrue at a rate per annum equal to the
“prime rate” published in The Wall Street Journal from time to time, plus two percent (2.0%) (the “Contract Rate”). The Prime Rate shall be increased or decreased as the case may be for each increase or decrease in
the Prime Rate in an amount equal to such increase or decrease in the Prime Rate; each change to be effective as of the day of the change in such rate in accordance with the terms of the Security Agreement. Subject to Section 1.2, the Contract Rate
shall not be less than six percent (6.0 %). 
  
 1.2 Contract
Rate Adjustments and Payments. The Contract Rate shall be calculated on the last business day of each month hereafter until the Maturity Date (each a “Determination Date”) and shall be subject to adjustment as set forth herein. If (i)
the Borrower shall have registered the shares of the Borrower’s common stock underlying each of the conversion of each Minimum Borrowing Note then outstanding and that certain warrant issued to Holder on a 

  

 
registration statement declared effective by the Securities and Exchange Commission (the “SEC”), and (ii) the market price (the “Market
Price”) of the Common Stock as reported by Bloomberg, L.P. on the Principal Market (as defined below) for the five (5) trading days immediately preceding a Determination Date exceeds the then applicable Fixed Conversion Price by at least twenty
five percent (25%), the Contract Rate for the succeeding calendar month shall automatically be reduced by 200 basis points (200 b.p.) (2.0.%) for each incremental twenty five percent (25%) increase in the Market Price of the Common Stock above the
then applicable Fixed Conversion Price. If (i) the Borrower shall not have registered the shares of the Borrower’s common stock underlying the conversion of each Minimum Borrowing Note then outstanding and that certain warrant issued to Holder
on a registration statement declared effective by the SEC and which remains effective, and (ii) the Market Price of the Common Stock as reported by Bloomberg, L.P. on the principal market for the five (5) trading days immediately preceding a
Determination Date exceeds the then applicable Fixed Conversion Price by at least twenty five percent (25%), the Contract Rate for the succeeding calendar month shall automatically be decreased by 100 basis points (100 b.p.) (1.0.%) for each
incremental twenty five percent (25%) increase in the Market Price of the Common Stock above the then applicable Fixed Conversion Price. Notwithstanding the foregoing (and anything to the contrary contained in herein), in no event shall the Contract
Rate be less than zero percent (0%). Interest shall be (i) calculated on the basis of a 360 day year, and (ii) payable monthly, in arrears, commencing on December 1, 2004 and on the first business day of each consecutive calendar month
thereafter until the Maturity Date (and on the Maturity Date), whether by acceleration or otherwise (each, a “Contract Rate Payment Date”).  
  
 ARTICLE II 
 ADVANCES, PAYMENTS UNDER NOTE 
  
 2.1.
Mechanics of Advances. All Loans evidenced by this Note shall be made in accordance with the terms and provisions of the Security Agreement. 
  
 2.2. Fixed Conversion Price. For purposes hereof, subject to Section 3.5 hereof, the initial “Fixed Conversion Price” means $0.39.

  
 2.3. No Effective Registration. Notwithstanding
anything to the contrary herein, the Holder shall not be required to accept shares of Common Stock as payment following a conversion by the Holder if there fails to exist an effective current Registration Statement (as defined in the Registration
Rights Agreement) covering the shares of Common Stock to be issued, or if an Event of Default hereunder exists and is continuing, unless such requirement is otherwise waived in writing by the Holder in whole or in part at the Holder’s option.

  
 2.4. Optional Redemption in Cash. The Borrower will
have the option of prepaying this Note (“Optional Redemption”) by paying to the Holder a sum of money equal to one hundred twenty percent (120%) of the principal amount of this Note together with accrued but unpaid interest thereon
and any and all other sums due, accrued or payable to the Holder arising under this Note, the Security Agreement, or any Ancillary Agreement, except the Revolving Note (as such terms are defined in the Security Agreement) (the “Redemption
Amount”) outstanding on the Redemption Payment Date (as defined below). The Borrower 

  

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shall deliver to the Holder a written notice of redemption (the “Notice of Redemption”) specifying the date for such Optional Redemption
(the “Redemption Payment Date”), which date shall be seven (7) days after the date of the Notice of Redemption (the “Redemption Period”). A Notice of Redemption shall not be effective with respect to any portion of
this Note for which the Holder has previously delivered a Notice of Conversion (defined below) pursuant to Section 3.1, or for conversions elected to be made by the Holder pursuant to Section 3.1 during the Redemption Period. The Redemption Amount
shall be determined as if such Holder’s conversion elections had been completed immediately prior to the date of the Notice of Redemption. On the Redemption Payment Date, the Redemption Amount (plus any additional interest and fees accruing on
the Notes during the Redemption Period) must be irrevocably paid in full in immediately available funds to the Holder. In the event the Borrower fails to pay the Redemption Amount on the Redemption Payment Date, then such Redemption Notice will be
null and void. 
  
 ARTICLE III 
 HOLDER’S CONVERSION RIGHTS 
  
 3.1. Optional Conversion. Subject to the terms of this Article III, the Holder shall have the right, but not the obligation, at any time until the
Maturity Date, or thereafter during an Event of Default (as defined in Article IV), and, subject to the limitations set forth in Section 3.2 hereof, to convert all or any portion of the outstanding Principal Amount and/or accrued interest and fees
due and payable into fully paid and nonassessable shares of the Common Stock at the Fixed Conversion Price. The shares of Common Stock to be issued upon such conversion are herein referred to as the “Conversion Shares.” 

 
 3.2. Conversion Limitation. Notwithstanding anything contained
herein to the contrary, the Holder shall not be entitled to convert pursuant to the terms of this Note an amount that would be convertible into that number of Conversion Shares which would exceed the difference between 4.99% of the outstanding
shares of Common Stock of the Borrower and the number of shares of Common Stock beneficially owned by such Holder or issuable upon exercise of warrants held by such Holder. For the purposes of the immediately preceding sentence, beneficial ownership
shall be determined in accordance with Section 13(d) of the Exchange Act and Regulation 13d-3 thereunder. The Conversion Shares limitation described in this Section 3.2 shall automatically become null and void without any notice to Borrower upon the
occurrence and during the continuance beyond any applicable grace period of an Event of Default, or upon 75 days prior notice to the Borrower. In addition, the Holder shall not be entitled to convert pursuant to the terms of this Note during any
twenty two (22) trading day period an amount that would result in the issuance of Conversion Shares in excess of thirty percent (30%) of the trading volume of the Common Stock for the twenty two (22) trading days immediately prior to the Conversion
Date (defined below). The Holder shall deliver no more than two (2) Notices of Conversion (as defined below) to Borrower during any twenty two (22) day period. 
  

3.3. Mechanics of Holder’s Conversion. In the event that the Holder elects to convert this Note into Common Stock, the Holder shall give
notice of such election by delivering an executed and completed notice of conversion (“Notice of Conversion”) to the Borrower and such Notice of Conversion shall provide a breakdown in reasonable detail of the Principal 

  

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Amount, accrued interest and fees that are being converted. On each Conversion Date (as hereinafter defined) and in accordance with its Notice of Conversion,
the Holder shall make the appropriate reduction to the Principal Amount, accrued interest and fees as entered in its records and shall provide written notice thereof to the Borrower within two (2) business days after the Conversion Date. Each date
on which a Notice of Conversion is delivered or telecopied to the Borrower in accordance with the provisions hereof shall be deemed a Conversion Date (the “Conversion Date”). A form of Notice of Conversion to be employed by the
Holder is annexed hereto as Exhibit A. Pursuant to the terms of the Notice of Conversion, the Borrower will issue instructions to the transfer agent accompanied by an opinion of counsel, if such an opinion is required by the transfer agent, within
one (1) Business Day of the date of the delivery to Borrower of the Notice of Conversion and shall cause the transfer agent to transmit the certificates representing the Conversion Shares to the Holder by crediting the account of the Holder’s
designated broker with the Depository Trust Corporation (“DTC”) through its Deposit Withdrawal Agent Commission (“DWAC”) system within three (3) Business Days after receipt by the Borrower of the Notice of
Conversion (the “Delivery Date”). In the case of the exercise of the conversion rights set forth herein the conversion privilege shall be deemed to have been exercised and the Conversion Shares issuable upon such conversion shall be
deemed to have been issued upon the date of receipt by the Borrower of the Notice of Conversion. The Holder shall be treated for all purposes as the record holder of such Common Stock, unless the Holder provides the Borrower written instructions to
the contrary. No fractional share shall be issued upon any conversion of this Note. If a conversion would result in the issuance of a fraction of a share of Common Stock, the Borrower shall, in lieu of issuing any fractional share, pay the Holder
otherwise entitled to such fraction a sum in cash equal to the fair market value of such fraction on the Conversion Date (based on the Current Market Price Per Share). The “Current Market Price Per Share” on any date shall mean the average
of the Quoted Prices of the Common Stock for the fifteen (15) consecutive Business Days ending before the day in question. If no such Quoted Prices are available, however, “Current Market Price Per Share” shall be the Fixed Conversion
Price. “Quoted Price” means, with respect to any security on any date, the average of the closing prices on such day of such security on all domestic securities exchanges and inter-dealer quotation systems providing last sale information
on which such security is then listed or tracked, or, if there have been no sales on any such exchange or inter-dealer quotation system on such day, the average of the highest bid and lowest asked prices on all such exchanges or inter-dealer
quotation system at the end of such day or, if on any such day such security is not so listed, the average of the representative bid and asked prices quoted on NASDAQ as of 4:00 p.m., New York time, on such day, or if on any day such security is not
quoted on NASDAQ, the average of the highest bid and lowest asked prices on such day in the domestic over-the-counter market as reported by the National Quotation Bureau, Incorporated, or any similar successor organization. 
  
 3.4. Late Payments. The Borrower understands that a delay in the
delivery of the shares of Common Stock in the form required pursuant to this Article beyond the Delivery Date could result in economic loss to the Holder. As compensation to the Holder for such loss, the Borrower agrees to pay late payments to the
Holder for late issuance of such shares in the form required pursuant to this Article III upon conversion of the Note, in the amount equal to $500 per business day after the Delivery Date. The Borrower shall pay any payments incurred under this
Section in immediately available funds upon demand. 
  

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 3.5. Adjustment Provisions. The Fixed Conversion Price and number and kind of shares or other
securities to be issued upon conversion determined pursuant to Section 2.2 shall be subject to adjustment from time to time upon the happening of certain events while this conversion right remains outstanding, as follows: 
  
 A. Reclassification, etc. If the Borrower at any time
shall, by reclassification or otherwise, change the Common Stock into the same or a different number of securities of any class or classes, whether by capital reorganization, recapitalization, reclassification or otherwise (other than a subdivision
or combination of shares or a stock dividend described in paragraph (B) of this Section 3.5, or a consolidation, merger or sale of assets described in paragraph (C) of this Section 3.5), then, and in each such event, this Note shall thereafter be
convertible into the kind and amount of securities receivable upon such reorganization, recapitalization, reclassification or other change by holders of the number of shares of Common Stock into which this Note might have been converted immediately
prior to or immediately following consummation of such reorganization, reclassification, recapitalization or change, at the election of the Holder. 
  
 B. Stock Splits, Combinations and Dividends. If the shares of Common Stock are subdivided or combined into a greater or smaller
number of shares of Common Stock, or if a dividend is paid on the Common Stock or any preferred stock issued by the Borrower in shares of Common Stock, the Fixed Conversion Price shall be proportionately reduced in case of subdivision of shares or
stock dividend or proportionately increased in the case of combination of shares, in each such case by the ratio which the total number of shares of Common Stock outstanding immediately after such event bears to the total number of shares of Common
Stock outstanding immediately prior to such event, such increase or decrease to take effect at the opening of business on the day following the day upon which (i) such subdivision or combination becomes effective, or, (ii) in the case a dividend,
the date fixed for determination of stockholders entitled to receive such dividend. For the purpose of this paragraph, the number of shares of Common Stock at any time outstanding shall not include shares held in the treasury of the Borrower.

  
 C. Consolidation, Merger or Sale of
Assets. In case of any permitted consolidation of the Borrower with, or merger of the Company into, any Person, or in case of any merger of another Person into the Borrower (other than a consolidation or merger which does not result in any
reclassification, conversion, exchange or cancellation of outstanding shares of Common Stock), or in case of any permitted sale or transfer of all or substantially all of the assets of the Borrower, the Person formed by such consolidation or
resulting from such merger or which acquires such assets, as the case may be, shall agree and provide or cause provision to be made so that a Holder shall have the right, during the period this Note shall be convertible, to convert this Note into
the kind and amount of securities, cash and other property receivable immediately prior to or upon such consolidation, merger, sale or transfer by a holder of the number of shares of Common Stock into which this Note might have been converted by its
terms (at the Holder sole discretion), assuming such holder of Common Stock (i) is not a Person with which the Borrower consolidated or into which the Borrower merged or which merged into the Borrower or to which such sale or transfer was made, as
the case may be (a “Constituent Person”), or an affiliate of a Constituent Person and (ii) failed to exercise such Person’s rights of election, if any, as to the kind or amount of securities, cash and other property receivable upon

  

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such consolidation, merger, sale or transfer (provided that if the kind or amount of securities, cash and other property receivable upon such consolidation,
merger, sale or transfer is not the same for each share of Common Stock held immediately prior to such consolidation, merger, sale or transfer by other than a Constituent Person or an affiliate thereof and in respect of which such rights of election
shall not have been exercised (“non-electing share”), then for the purpose of this paragraph (C) the kind and amount of securities, cash and other property receivable upon such consolidation, merger, sale or transfer by each non-electing
share shall be deemed to be the kind and amount so receivable per share by a plurality of non-electing shares). The above provisions of this paragraph (C) shall similarly apply to successive consolidations, mergers, sales or transfers. 

 
 D. Share Issuances. Subject to the provisions of
this Section 3.5, if the Borrower shall at any time (after the date hereof) prior to the conversion or repayment in full of the Principal Amount issue any shares of Common Stock or securities convertible into Common Stock to a person other than the
Holder (except (i) pursuant to Subsections A, B or C above; (ii) pursuant to options, warrants, or other obligations to issue shares outstanding on the date hereof as disclosed to Holder in writing; or (iii) pursuant to options that may be issued
under any employee incentive stock option and/or any qualified stock option plan adopted by the Borrower) for a consideration per share (the “Offer Price”) less than the Fixed Conversion Price in effect at the time of such issuance,
then the Fixed Conversion Price shall be immediately reset pursuant to the formula below. For purposes hereof, the issuance of any security of the Borrower convertible into or exercisable or exchangeable for Common Stock for a consideration per
share less than the then applicable Fixed Conversion Price, shall result in an adjustment to the Fixed Conversion Price as set forth below. 
  
 If the Borrower issues any additional shares of Common Stock for a consideration per share less than the then-applicable Fixed Conversion Price pursuant
to this Section 3.5 then, and thereafter successively upon each such issue, the Fixed Conversion Price shall be adjusted by multiplying the then applicable Fixed Conversion Price by the following fraction: 
  

			
	 	 	A + B
	 	 	(A + B) + [((C – D) x B) / C]

  
 A = Total amount of
shares convertible pursuant to the Security Agreement 
  
 B =
Actual shares sold in the offering 
  
 C = Fixed Conversion
Price 
  
 D = Offering price 
  

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 Such adjustment shall become effective immediately upon the earlier to occur of the date of issuance of such shares of
Common Stock or the record date for the determination of stockholders entitled to receive the convertible securities, as the case may be. If all of the shares of Common Stock subject to such convertible securities have not been issued when such
convertible securities expire, then the Fixed Conversion Price shall promptly be readjusted to the Fixed Conversion Price that would then be in effect had the adjustment upon the issuance of such convertible securities been made on the basis of the
actual number of shares of Common Stock issued upon the exercise of such convertible securities. For the purpose of this paragraph (D), the number of shares of Common Stock at any time outstanding shall not include shares held in the treasury
of the Borrower. The Borrower will not issue any shares of Common Stock or rights, warrants, convertible or exchangeable securities in respect of shares of Common Stock held in the treasury of the Borrower. 
  
 E. Computation of Consideration. For purposes of any
computation respecting consideration received pursuant to Subsection D above, the following shall apply: 
  
 (a) in the case of the issuance of shares of Common Stock for cash, the consideration shall be the amount of such cash, provided that in
no case shall any deduction be made for any commissions, discounts or other expenses incurred by the Borrower for any underwriting of the issue or otherwise in connection therewith; 
  
 (b) in the case of the issuance of shares of Common Stock for a consideration in whole or in part other than
cash, the consideration other than cash shall be deemed to be the fair market value thereof as determined in good faith by the Board of Directors of the Borrower (irrespective of the accounting treatment thereof); and 
  
 (c) Upon any such issuance of securities convertible into or
exchangeable for Common Stock, the aggregate consideration received for such securities shall be deemed to be the consideration received by the Borrower for the issuance of such securities plus the additional minimum consideration, if any, to be
received by the Borrower upon the conversion or exchange thereof (the consideration in each case to be determined in the same manner as provided in clauses (a) and (b) of this Subsection (E)). 
  
 F. Calculations. All calculations under this Section
3.5 shall be made to the nearest tenth of one cent. 
  
 G. When Adjustment May Be Deferred. No adjustment in the Fixed Conversion Price need be made unless the adjustment would require an increase or decrease of at least 1% in the Fixed Conversion Price. Any adjustments that are not made
shall be carried forward and taken into account in any subsequent adjustment. 
  
 H. Voluntary Decrease of Fixed Conversion Price. The Borrower from time to time may, with the consent of the Holder decrease the Fixed Conversion Price by any amount for any period of time as the Board of
Directors of the Borrower deems advisable, subject to a floor of $0.10. The Borrower shall deliver a notice of such adjustment at least fifteen 

  

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(15) days before the date the decreased Fixed Conversion Price will take effect. The notice shall state the decreased Fixed Conversion Price and the period
of time it will be in effect. 
  
 3.6. Reservation of
Shares. During the period the conversion right exists, the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of Common Stock upon the full conversion of this Note. The
Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. The Borrower agrees that its issuance of this Note shall constitute full authority to its officers, agents, and transfer agents who
are charged with the duty of executing and issuing stock certificates to execute and issue the necessary certificates for shares of Common Stock upon the conversion of this Note. 
  
 3.7. Registration Rights. The Holder has been granted registration rights with respect to the shares of Common Stock
issuable upon conversion of this Note as more fully set forth in a Registration Rights Agreement dated as of the date hereof between the Borrower and the Holder. 
  
 ARTICLE IV 
 EVENTS OF DEFAULT 
  
 4.1. The occurrence of any
of the events set forth in Section 19 of the Security Agreement shall constitute an Event of Default (“Event of Default”) hereunder. 
  
 DEFAULT RELATED PROVISIONS 
  
 4.2 Default Interest Rate. Following the occurrence and during the continuance of an Event of Default, the Borrower shall pay additional interest
on this Note in an amount equal to two percent (2%) per month, and all outstanding Obligations, including unpaid interest, shall continue to accrue such additional interest from the date of such Event of Default until the date such Event of Default
is cured or waived. 
  
 4.3 Conversion Privileges. The
conversion privileges set forth in Article III shall remain in full force and effect immediately from the date hereof and until this Note is paid in full. 
  
 4.4 Cumulative Remedies. The remedies under this Note shall be cumulative. 
  
 ARTICLE V 
 DEFAULT PAYMENTS 
  
 5.1. Default Payment.
If an Event of Default occurs and is continuing beyond any applicable grace period, the Holder, at its option, may elect, in addition to all rights and remedies of Holder under the Security Agreement and the Ancillary Agreements and all obligations
of Borrower under the Security Agreement and the Ancillary Agreements, to require 

  

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the Borrower to make a Default Payment (“Default Payment”). The Default Payment shall be one hundred twenty percent (120%) of the
outstanding principal amount of the Note, plus accrued but unpaid interest, all other fees then remaining unpaid, and all other amounts payable hereunder. The Default Payment shall be applied first to any fees due and payable to Holder pursuant to
the Notes or the Ancillary Agreements, then to accrued and unpaid interest due on the Notes and then to outstanding principal balance of the Notes. 
  
 5.2. Default Payment Date. The Default Payment shall be due and payable immediately on the date that the Holder has exercised its rights pursuant
to Section 5.1 (“Default Payment Date”). 
  
 ARTICLE VI 
 MISCELLANEOUS 
  
 6.1. Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder hereof in the exercise of any power, right or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. All rights and remedies existing
hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available. 
  
 6.2. Notices. Any notice herein required or permitted to be given shall be in writing and provided in accordance with the terms of the Security Agreement. 
  
 6.3. Amendment Provision. The term “Note” and all reference
thereto, as used throughout this instrument, shall mean this instrument as originally executed, or if later amended or supplemented, then as so amended or supplemented, and any successor instrument as it may be amended or supplemented. 

 
 6.4. Assignability. This Note shall be binding upon the Borrower
and its successors and assigns, and shall inure to the benefit of the Holder and its successors and assigns, and may be assigned by the Holder in accordance with the requirements of the Security Agreement, provided that no assignment of this Note
shall be permitted unless it is made in compliance with applicable federal and state securities law. 
  
 6.5. Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof reasonable costs of collection,
including reasonable attorneys’ fees. 
  
 6.6. Governing
Law. This Note shall be governed by and construed in accordance with the laws of the State of New York, without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions
contemplated by this Agreement shall be brought only in the state courts of New York or in the federal courts located in the State of New York. Both parties agree to submit to the jurisdiction of such courts. The prevailing party shall be entitled
to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Note is invalid or 

  

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unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and
shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of this Note. Nothing contained
herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Borrower in any other jurisdiction to collect on the Borrower’s obligations to Holder, to realize on any collateral or any
other security for such obligations, or to enforce a judgment or other court order in favor of Holder. 
  
 6.7. Maximum Payments. Nothing contained herein shall be deemed to establish or require the payment of a rate of interest or other charges in
excess of the maximum permitted by applicable law. In the event that the rate of interest required to be paid or other charges hereunder exceed the maximum permitted by such law, any payments in excess of such maximum shall be credited against
amounts owed by the Borrower to the Holder and thus refunded to the Borrower. 
  
 6.8. Security Interest and Guarantee. The Holder has been granted a security interest (i) in certain assets of the Borrower and its Subsidiaries as more fully described in the Security Agreement dated as of the
date hereof and (ii) pursuant to the Stock Pledge Agreement dated as of the date hereof. The obligations of the Borrower under this Note are guaranteed by certain Subsidiaries of the Borrower pursuant to the Subsidiary Guaranty dated as of the date
hereof. 
  
 6.9. Construction. Each party acknowledges that
its legal counsel participated in the preparation of this Note and, therefore, stipulates that the rule of construction that ambiguities are to be resolved against the drafting party shall not be applied in the interpretation of this Note to favor
any party against the other. 
  
 [Balance of page intentionally
left blank; signature page follows.] 
  

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 IN WITNESS WHEREOF, the Borrower has caused this Secured Convertible Minimum Borrowing Note to be
signed in its name effective as of this 29th day of November, 2004. 
  

			
	DIGITAL LIFESTYLES GROUP, INC.
		
	By:	 	 /s/ Theodore B. Muftic

	 Name:
	 	 Theodore B. Muftic

	 Title:
	 	 Chief Financial Officer

  

	
	WITNESS:
	
	 /s/ J. William Wilson

 J. William Wilson
 Corporate Secretary

  

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 NOTICE OF
CONVERSION 
  
 (To be executed by the Holder in order to convert the Note)

  
 The undersigned hereby elects to convert
$             of the principal and $             of the interest due on the Secured Convertible Minimum Borrowing
Note issued by DIGITAL LIFESTYLES GROUP, INC. on November     , 2004 into Shares of Common Stock of DIGITAL LIFESTYLES GROUP, INC. (the “Borrower”) according to the conditions set forth in such Note, as of the
date written below. 
  

			
	Date of Conversion:	  	                                      
                                        
                                        
                                        
                                        
       
		
	Conversion Price:	  	                                      
                                        
                                        
                                        
                                        
       
		
	Shares To Be Delivered:	  	                                      
                                        
                                        
                                        
                                        
       
		
	Signature:	  	                                      
                                        
                                        
                                        
                                        
       
		
	Print Name:	  	                                      
                                        
                                        
                                        
                                        
       
		
	Address:	  	                                      
                                        
                                        
                                        
                                        
       
		
	 Holder DWAC
 instructions
	  	                                      
                                        
                                        
                                        
                                        
       

  

 12Warrant

  
 Exhibit 10.20

  
 THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON
EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS. THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO DIGITAL LIFESTYLES GROUP, INC. THAT SUCH
REGISTRATION IS NOT REQUIRED. 
  
 Right to Purchase 3,846,154
Shares of Common Stock of 
 Digital Lifestyles Group, Inc. 
 (subject to adjustment as provided herein) 
  
 COMMON STOCK PURCHASE WARRANT 
  

			
	 No.
                            
	 	Issue Date: November 29, 2004

  
 DIGITAL LIFESTYLES
GROUP, INC., a corporation organized under the laws of the State of Delaware (“Digital Lifestyles Group, Inc.”), hereby certifies that, for value received, LAURUS MASTER FUND, LTD., or permitted assigns (the “Holder”), is
entitled, subject to the terms set forth below, to purchase from the Company (as defined herein) from and after the Issue Date of this Warrant and at any time or from time to time before 5:00 p.m., New York time, through the close of business
November 29, 2009 (the “Expiration Date”), up to 3,846,154 fully paid and nonassessable shares of Common Stock (as hereinafter defined), $0.03 par value per share, at the applicable Exercise Price per share (as defined below). The number
and character of such shares of Common Stock and the applicable Exercise Price per share are subject to adjustment as provided herein. 
  
 As used herein the following terms, unless the context otherwise requires, have the following respective meanings: 
  
 (a) The term “Company” shall include Digital
Lifestyles Group, Inc. and any corporation which shall succeed, or assume the obligations of, Digital Lifestyles Group, Inc. hereunder. 
  
 (b) The term “Common Stock” includes (i) the Company’s Common Stock, par value 0.03 per share; and (ii) any other
securities into which or for which any of the securities described in the preceding clause (i) may be converted or exchanged pursuant to a plan of recapitalization, reorganization, merger, sale of assets or otherwise. 
  
 (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 or
otherwise. 
  
 (d) The “Exercise Price”
applicable under this Warrant shall be as follows: 
  
 (i) a price per share of $0.44. 
  
 1. Exercise of
Warrant. 
  
 1.1 Number of Shares Issuable
upon Exercise. From and after the date hereof through and including the Expiration Date, the Holder shall be entitled to receive, upon exercise of this Warrant in whole or in part, by delivery of an original or fax copy of an exercise notice in
the form attached hereto as Exhibit A (the “Exercise Notice”) and compliance with Section 2 hereof, 3,846,154 shares of Common Stock of the Company, subject to adjustment pursuant to Section 4, seventy percent (70%) of which such right
shall vest on the date hereof and thirty percent (30%) of which such right shall vest on the date upon which an aggregate of Seven Million Five Hundred Thousand Dollars ($7,500,000) of Loans (as defined in the Security Agreement) have been advanced
to the Company pursuant to that certain Security Agreement dated as of the date hereof among the Company, certain of its wholly owned subsidiaries and the Holder (the Security Agreement”). 
  
 1.2 Fair Market Value. For purposes hereof, the
“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 the American Stock Exchange or another national exchange or is quoted on the National
or SmallCap Market of The Nasdaq Stock Market, Inc. (“Nasdaq”), then the closing or last sale price, respectively, reported for the last business day immediately preceding the Determination Date. 
  
 (b) If the Company’s Common Stock is not traded on the
American Stock Exchange or another national exchange or on the Nasdaq but is traded on the NASD OTC Bulletin Board, then the mean of the average of the closing bid and asked 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 agreement by arbitration in accordance with the rules then in effect 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. 
  
 (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 

  

 2 

 
of the shares of Common Stock then issuable upon exercise of the Warrant are outstanding at the Determination Date. 
  
 1.3 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. 
  
 1.4 Trustee for Warrant Holders. In the event that a
bank or trust company shall have been appointed as trustee for the holders of the Warrant pursuant to Subsection 3.2, such bank or trust company shall have all the powers and duties of a warrant agent (as hereinafter described) and shall accept, in
its own name for the account of the Company or such successor person as may be entitled thereto, all amounts otherwise payable to the Company or such successor, as the case may be, on exercise of this Warrant pursuant to this Section 1. 

 
 2. Procedure for Exercise. 
  
 2.1 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 as the record owner of such shares as of the close of business on the date on which this Warrant
shall have been surrendered a properly completed Exercise Notice shall have been delivered to the Company and payment made to the Company for such shares in accordance herewith. 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, 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,
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. 
  
 2.2 Exercise. Payment may be made either (i) in cash or by certified or official bank check payable
to the order of the Company equal to the applicable aggregate Exercise Price, (ii) by delivery of the Warrant, or shares of Common Stock and/or Common Stock receivable upon exercise of the Warrant equal to the aggregate Exercise Price payable to the
Company in accordance with the formula set forth below in this Section 2.2, or (iii) by a combination of any of the foregoing methods, for the number of Common Shares specified in such Exercise Notice (as such exercise number shall be adjusted to
reflect any adjustment in the total number of shares of Common Stock issuable to the Holder per the terms of this Warrant) and the Holder shall thereupon be entitled to receive the number of duly authorized, validly issued, fully-paid and
non-assessable shares of Common Stock (or Other Securities) determined as provided herein. Notwithstanding any provisions herein to the contrary, if the Fair Market 

  

 3 

 
Value of one share of Common Stock is greater than the Exercise Price (at the date of calculation as set forth below), in lieu of exercising this Warrant for
cash, the Holder may elect to receive shares equal to the value (as determined below) of this Warrant (or the portion thereof being exercised) by surrender of this Warrant at the principal office of the Company together with the properly endorsed
Exercise Notice in which event the Company shall issue to the Holder a number of shares of Common Stock computed using the following formula: 
  

			
	 X=Y            (A-B)    

	                                  A
		
	 Where X =
	  	the number of shares of Common Stock to be issued to the Holder
		
	 Y =
	  	the number of shares of Common Stock purchasable under the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being exercised (at the date of such
calculation)
		
	 A =
	  	the Fair Market Value of one share of the Company’s Common Stock (at the date of such calculation)
		
	 B =
	  	Exercise Price (as adjusted to the date of such calculation)

  
 3. Effect of
Reorganization, Etc.; Adjustment of Exercise Price. 
  
 3.1 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 4.

  
 3.2 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, concurrently with any distributions made to holders of its Common Stock, shall at its expense deliver or cause to be delivered to
the Holder the stock and other securities and property (including cash, where applicable) receivable by the Holder of the Warrant pursuant to Section 3.1, or, if the Holder shall so instruct the Company, to a bank or trust company specified by the
Holder and having its principal office in New York, NY as trustee for the Holder of the Warrant. 
  
 3.3 Continuation of Terms. Upon any reorganization, consolidation, merger or transfer (and any dissolution following any transfer)
referred to in this Section 3, this Warrant 

  

 4 

 
shall continue in full force and effect and the terms hereof shall be applicable to the shares of stock and 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 such stock or 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 4. In the event this Warrant does not continue in full force and effect after the consummation of the transactions described in this Section 3, then the Company’s securities and property (including cash, where applicable) receivable by
the Holders of the Warrant will be delivered to Holder or the Trustee as contemplated by Section 3.2. 
  
 4. Extraordinary Events Regarding Common Stock. In the event that the Company shall (a) issue additional shares of the Common Stock as a dividend
or other distribution on outstanding Common Stock, (b) subdivide its outstanding shares of Common Stock, or (c) combine its outstanding shares of the Common Stock into a smaller number of shares of the Common Stock, then, in each such event, the
Exercise Price shall be adjusted by multiplying the then Exercise 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 Exercise Price then in effect, such adjustment to take effect at the opening of business on the day upon the earlier of (i) such
subdivision or combination becomes effective and (ii) the date of issuance, subdivision or combination of the Company’s Common Stock shall occur; or, in the case a dividend, the date fixed for determination of stockholders entitled to receive
such dividend. For the purpose of this paragraph, the number of shares of Common Stock at any time outstanding shall not include shares held in the treasury of the Borrower. The Exercise 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 4. 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 increased, or decreased, as applicable, to a number determined by multiplying the number of shares of Common Stock that would otherwise (but for the provisions of this Section 4) be issuable on such exercise by a fraction of which (a) the
numerator is the Exercise Price that would otherwise (but for the provisions of this Section 4) be in effect, and (b) the denominator is the Exercise Price in effect on the date of such exercise. 
  
 5. 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 Warrant, 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 Exercise 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 

  

 5 

 
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 11 hereof). 
  
 6.
Reservation of Stock, Etc., Issuable on Exercise of Warrant. The Company will at all times reserve and keep available, solely for issuance and delivery on the exercise of the Warrant, shares of Common Stock (or Other Securities) from time to
time issuable on the exercise of the Warrant. 
  
 7.
Assignment; Exchange of Warrant. Subject to compliance with applicable securities laws as provided in the legend hereon, this Warrant, and the rights evidenced hereby, may be transferred by any registered holder hereof (a
“Transferor”) in whole or in part. 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 evidence
reasonably satisfactory to the Company demonstrating compliance with applicable securities laws, which shall include, without limitation, a legal opinion from the Transferor’s counsel that such transfer is exempt from the registration
requirements of applicable securities laws, the Company at its expense 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 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 of the
Warrant so surrendered by the Transferor. 
  
 8. 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 will execute and deliver, in lieu thereof, a new Warrant of like
tenor. 
  
 9. Registration Rights. The Holder of this
Warrant has been granted certain registration rights by the Company. These registration rights are set forth in a Registration Rights Agreement entered into by the Company and Purchaser dated as of even date of this Warrant. 
  
 10. Maximum Exercise. The Holder shall not be entitled to exercise
this Warrant on an exercise date, in connection with that number of shares of Common Stock which would be in excess of the sum of (i) the number of shares of Common Stock beneficially owned by the Holder and its affiliates on an exercise date, and
(ii) the number of shares of Common Stock issuable upon the exercise of this Warrant with respect to which the determination of this proviso is being made on an exercise date, which would result in beneficial ownership by the Holder and its
affiliates of more than 4.99% of the outstanding shares of Common Stock of the Company on such date. For the purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of
the Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder. Notwithstanding the foregoing, the restriction described in this paragraph may be revoked upon 75 days prior notice from the Holder 

  

 6 

 
to the Company, and shall become automatically null and void upon the occurrence and during the continuance an Event of Default under the Security Agreement.

  
 11. Warrant Agent. The Company may, by written notice
to the each Holder of the Warrant, appoint an 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 7, and replacing this Warrant
pursuant to Section 8, 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 agent. 
  
 12. 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. 
  
 13. Notices, Etc. All notices and other communications from the Company to the Holder of this Warrant shall be mailed by first class registered or
certified mail, postage prepaid, at such address as may have been furnished to the Company in writing by such Holder or, until any such Holder furnishes to the Company an address, then to, and at the address of, the last Holder of this Warrant who
has so furnished an address to the Company. 
  
 14.
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 governed by and construed in accordance with the laws of State of New York without regard to principles of conflicts of laws. Any action brought concerning the transactions contemplated by this Warrant shall be brought only in the
state courts of New York or in the federal courts located in the state of New York; provided, however, that the Holder may choose to waive this provision and bring an action outside the state of New York. The individuals executing this Warrant on
behalf of the Company agree to submit to the jurisdiction of such courts and waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision
of this Warrant is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule
of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of this Warrant. 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. The Company acknowledges that legal counsel participated in
the preparation of this Warrant and, therefore, stipulates that the rule of construction that ambiguities are to be resolved against the drafting party shall not be applied in the interpretation of this Warrant to favor any party against the other
party. 
  
 [BALANCE OF PAGE INTENTIONALLY LEFT BLANK;

 SIGNATURE PAGE FOLLOWS.] 
  

 7 

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

 

									
	 	 	 	 	 DIGITAL LIFESTYLES GROUP, INC.

	 WITNESS:
	 	 	 	 
				
	/s/ J. William Wilson	 	 	 	 By:
	 	 /s/ Theodore B. Muftic

	 J. William Wilson
	 	 	 	 Name:
	 	 Theodore B. Muftic

	 Corporate Secretary
	 	 	 	 Title:
	 	 Chief Financial Officer

  

 8 

  
 EXHIBIT A 

 
 FORM OF SUBSCRIPTION 
 (To Be Signed Only On Exercise Of Warrant) 
  
 TO: Digital Lifestyles Group, Inc. 
  
 Attention: Chief Financial Officer 
  
 The undersigned, pursuant to the provisions set forth in the attached Warrant (No.        ), hereby
irrevocably elects to purchase (check applicable box): 
  

			
	  ̈
	  	                 shares of the Common Stock covered by such Warrant; or
		
	  ̈
	  	the maximum number of shares of Common Stock covered by such Warrant pursuant to the cashless exercise procedure set forth in Section 2.

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

			
	  ̈
	  	$                     in lawful money of the United States; and/or
		
	  ̈
	  	the cancellation of such portion of the attached Warrant as is exercisable for a total of                 
shares of Common Stock (using a Fair Market Value of $                 per share for purposes of this calculation); and/or
		
	  ̈
	  	the cancellation of such number of shares of Common Stock as is necessary, in accordance with the formula set forth in Section 2.2, to exercise this Warrant with respect to the maximum number of
shares of Common Stock purchasable pursuant to the cashless exercise procedure set forth in Section 2.

  
 The undersigned
requests that the certificates for such shares be issued in the name of, and delivered to
                                        
                                        
             whose address is
                                        
                                        
                                        
                                        
                                        
    . 
  
 In connection with the exercise of the Warrant to
purchase the number of shares specified above, undersigned makes the following representations and covenants: 
  
 1. The undersigned is a “qualified institutional buyer” as such term is defined in Rule 144A promulgated under the Securities Act of 1933, as
amended (the “Securities Act”). 
  
 2. The
undersigned is purchasing the Shares for the undersigned’s own account, or for one or more investor accounts for which the undersigned is acting as a fiduciary or agent, in 

  

 A-1 

 
each case for investment, and not with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act.

  
 3. The undersigned has had access to such financial and other
information concerning the Company and the Shares that the undersigned has deemed necessary in connection with a decision to purchase the Shares, including an opportunity to ask questions of and request information from the Company. 
  
 4. All offers and sales by the undersigned of the securities issuable upon
exercise of the within Warrant shall be made pursuant to registration of the Common Stock under the Securities Act of 1933, as amended (the “Securities Act”) or pursuant to an exemption from registration under the Securities Act.

  

									
				
	 Dated:
	 	 	 	 	 	 
	 	 	 	 	 	 	(Signature must conform to name of holder as specified on the face of the Warrant)
					
	 	 	 	 	 	 	 Address:
	 	 
	 	 	 	 	 	 	 	 	 

  

 2 

  
 EXHIBIT B 

 
 FORM OF TRANSFEROR ENDORSEMENT 
 (To Be Signed Only On Transfer Of Warrant) 
  
 For value received, the undersigned hereby sells, assigns, and transfers unto the person(s) named below under the heading “Transferees” the
right represented by the within Warrant to purchase the percentage and number of shares of Common Stock of Digital Lifestyles Group, Inc. into which the within Warrant relates specified under the headings “Percentage Transferred” and
“Number Transferred,” respectively, opposite the name(s) of such person(s) and appoints each such person Attorney to transfer its respective right on the books of Digital Lifestyles Group, Inc. with full power of substitution in the
premises. 
  

							
	 Transferees

	 	 Address

	 	 Percentage
 Transferred

	 	 Number
 Transferred

	 	 	 	 	 	 	 
	
	 	
	 	
	 	

	 	 	 	 	 	 	 
	
	 	
	 	
	 	

	 	 	 	 	 	 	 
	
	 	
	 	
	 	

	 	 	 	 	 	 	 
	
	 	
	 	
	 	

  

									
				
	 Dated:
	 	 	 	 	 	 
	 	 	 	 	 	 	(Signature must conform to name of holder as specified on the face of the Warrant)
					
	 	 	 	 	 	 	 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.

  

									
					
	 	 	 	 	 	 	 	 	                                       
                                        
                           

  

 B-1 

	
	 ACCEPTED AND AGREED:
 [TRANSFEREE]

	
	  
	(Name)

  

 2

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