Document:

ASSIGNMENT
AGREEMENT

 

THIS
ASSIGNMENT
AGREEMENT
(the “Agreement”)
is made effective
as of the
8th day of
February
2013, by and
among
Asher
Enterprises,
Inc. (the
“Assignor”);
Linear
Capital LLC
(the “Assignee”)
and SIMPLEPONS,
INC (the
“Company”).

 

WHEREAS,
Assignee
wish to
assume,
all of
the Assignors’
right,
title, and
interest
in and to
that 8%
Convertible
Promissory
Note,
dated
as of
October
26, 2012 (and
funded
on November
5, 2012) made
by the Company in the original
principal
amount of $63,000 in favor of
Assignor  (the
“Note”)
; and

 

WHEREAS,
the Assignor
desires
to assign
to the
Assignee
all of
the Assignors’
right, title,
and interest in and
to the Note,
based on the
terms and conditions
set out herein.

 

NOW
THEREFORE,
in consideration
of the premises
and for
other good
and valuable
consideration, the
receipt
and sufficiency
of which
is hereby
acknowledged
by each
of the
parties
hereto, the parties
hereto
agree
as follows:

 

		1.	Assignment.
                                                                                                 Subject
                                                                                                 to
                                                                                                 and
                                                                                                 in
                                                                                                 accordance
                                                                                                 with
                                                                                                 the
                                                                                                 terms
                                                                                                 and
                                                                                                 conditions
                                                                                                 set
                                                                                                 forth
                                                                                                 in
                                                                                                 this Agreement,
                                                                                                 the
                                                                                                 Assignor
                                                                                                 hereby
                                                                                                 grants,
                                                                                                 sells,
                                                                                                 assigns,
                                                                                                 and
                                                                                                 conveys
                                                                                                 to the
                                                                                                 Assignee,
                                                                                                 without
                                                                                                 recourse,
                                                                                                 all
                                                                                                 of
                                                                                                 the
                                                                                                 Assignor’s
                                                                                                 right,
                                                                                                 title and
                                                                                                 interest
                                                                                                 in and
                                                                                                 to
                                                                                                 the
                                                                                                 Note.
                                                                                                 Within
                                                                                                 two
                                                                                                 (2)
                                                                                                 business
                                                                                                 days
                                                                                                 of receipt
                                                                                                 of the consideration
                                                                                                 (as
                                                                                                 set
                                                                                                 forth
                                                                                                 below),
                                                                                                 Assignor
                                                                                                 shall
                                                                                                 mail
                                                                                                 to the
                                                                                                 Assignee,
                                                                                                 at
                                                                                                 the
                                                                                                 address
                                                                                                 provided
                                                                                                 to it below
                                                                                                 the
                                                                                                 original
                                                                                                 Note.

 

		2.	Consideration.
                                                                                                 In
                                                                                                 consideration
                                                                                                 for
                                                                                                 the
                                                                                                 assignment
                                                                                                 of
                                                                                                 the
                                                                                                 Note,
                                                                                                 Assignee
                                                                                                 shall
                                                                                                 pay
                                                                                                 to
                                                                                                 the Assignor
                                                                                                 $89,511.78
                                                                                                 to
                                                                                                 be
                                                                                                 paid
                                                                                                 to
                                                                                                 Assignor
                                                                                                 in
                                                                                                 lawful
                                                                                                 money
                                                                                                 of
                                                                                                 the
                                                                                                 United
                                                                                                 States
                                                                                                 of America
                                                                                                 by
                                                                                                 Assignor
                                                                                                 by
                                                                                                 4:00 P.M. February
                                                                                                 8, 2013
                                                                                                 to the
                                                                                                 account below:

 

Capital
One Bank

Great
Neck, New
York 11021
Asher
Enterprises,
Inc.

1000 North
West Street,
Suite 1200

Wilmington,
Delaware
19801

ABA
#: 021407912

ACCOUNT
#: PLEASE
CALL
FOR THE
ACCOUNT
NUMBER

  

		3.	Representations
                                                                                                 of
                                                                                                 Assignor.
                                                                                                 Assignor
                                                                                                 hereby
                                                                                                 represents
                                                                                                 and
                                                                                                 covenants
                                                                                                 to
                                                                                                 Assignee
                                                                                                 that:

 

		a.	Assignor
                                                                                                                          has
                                                                                                                          all
                                                                                                                          requisite
                                                                                                                          authority
                                                                                                                          to
                                                                                                                          execute
                                                                                                                          and
                                                                                                                          deliver
                                                                                                                          this
                                                                                                                          Agreement
                                                                                                                          and
                                                                                                                          any
                                                                                                                          other
                                                                                                                          document
                                                                                                                          contemplated
                                                                                                                          by
                                                                                                                          this
                                                                                                                          Agreement
                                                                                                                          and
                                                                                                                          to
                                                                                                                          perform
                                                                                                                          its
                                                                                                                          obligations
                                                                                                                          hereunder
                                                                                                                          and
                                                                                                                          to consummate
                                                                                                                          the
                                                                                                                          transactions
                                                                                                                          contemplated
                                                                                                                          hereby;

 

		b.	The
                                                                                                                          outstanding
                                                                                                                          principal
                                                                                                                          amount
                                                                                                                          of
                                                                                                                          the
                                                                                                                          Note,
                                                                                                                          as
                                                                                                                          of
                                                                                                                          February
                                                                                                                          8, 2013
                                                                                                                          is $63,000.

 

		c.	Assignor’s
                                                                                                                          
                                                                                                                          interest
                                                                                                                          
                                                                                                                          in
                                                                                                                          
                                                                                                                          and
                                                                                                                          
                                                                                                                          to
                                                                                                                          
                                                                                                                          the
                                                                                                                          
                                                                                                                          Note
                                                                                                                          
                                                                                                                          are
                                                                                                                          
                                                                                                                          free
                                                                                                                          
                                                                                                                          and
                                                                                                                          
                                                                                                                          clear
                                                                                                                          
                                                                                                                          of
                                                                                                                          
                                                                                                                          all
                                                                                                                          
                                                                                                                          liens,

 

encumbrances,
obligations or
defects which
are of
record
prior to
the date
of this Agreement.

 

		d.	Assignor
                                                                                                                          is
                                                                                                                          an
                                                                                                                          "accredited
                                                                                                                          investor"
                                                                                                                          within
                                                                                                                          the
                                                                                                                          meaning
                                                                                                                          of
                                                                                                                          Regulation
                                                                                                                          D,
                                                                                                                          Rule
                                                                                                                          501(a),
                                                                                                                          promulgated
                                                                                                                          by
                                                                                                                          the
                                                                                                                          Securities
                                                                                                                          and
                                                                                                                          Exchange
                                                                                                                          Commission
                                                                                                                          under
                                                                                                                          the
                                                                                                                          Securities
                                                                                                                          Act.

 

		e.	Neither
                                                                                                                          Assignor
                                                                                                                          nor
                                                                                                                          any
                                                                                                                          of
                                                                                                                          its
                                                                                                                          officers
                                                                                                                          and
                                                                                                                          directors
                                                                                                                          are
                                                                                                                          now,
                                                                                                                          or
                                                                                                                          have
                                                                                                                          been
                                                                                                                          in
                                                                                                                          the
                                                                                                                          last
                                                                                                                          90-days,
                                                                                                                          officers
                                                                                                                          or
                                                                                                                          directors
                                                                                                                          of
                                                                                                                          the
                                                                                                                          Company,
                                                                                                                          or
                                                                                                                          beneficial
                                                                                                                          holders
                                                                                                                          of
                                                                                                                          10%
                                                                                                                          or more
                                                                                                                          of
                                                                                                                          its
                                                                                                                          stock

 

		4.	Representations
                                                                                                of
                                                                                                Assignee.
                                                                                                
                                                                                                The
                                                                                                Assignee
                                                                                                hereby
                                                                                                represent
                                                                                                and
                                                                                                covenant,
                                                                                                individually,
                                                                                                to the
                                                                                                Company
                                                                                                that:

 

		a.	Assignee
                                                                                                                          has
                                                                                                                          all
                                                                                                                          requisite
                                                                                                                          power
                                                                                                                          and
                                                                                                                          authority
                                                                                                                          to
                                                                                                                          execute
                                                                                                                          and
                                                                                                                          deliver
                                                                                                                          this
                                                                                                                          Agreement
                                                                                                                          and
                                                                                                                          any
                                                                                                                          other
                                                                                                                          document
                                                                                                                          contemplated
                                                                                                                          by
                                                                                                                          this
                                                                                                                          Agreement
                                                                                                                          to
                                                                                                                          be
                                                                                                                          signed
                                                                                                                          by
                                                                                                                          the
                                                                                                                          Assignee
                                                                                                                          and
                                                                                                                          to perform
                                                                                                                          its
                                                                                                                          obligations
                                                                                                                          hereunder
                                                                                                                          and
                                                                                                                          to consummate
                                                                                                                          the
                                                                                                                          transactions
                                                                                                                          contemplated
                                                                                                                          hereby;

 

		b.	Assignee
                                                                                                                          understand
                                                                                                                          that
                                                                                                                          the
                                                                                                                          shares
                                                                                                                          to
                                                                                                                          be
                                                                                                                          issued
                                                                                                                          upon
                                                                                                                          conversion
                                                                                                                          of
                                                                                                                          the
                                                                                                                          Note
                                                                                                                          have
                                                                                                                          not
                                                                                                                          been,
                                                                                                                          and
                                                                                                                          may
                                                                                                                          not
                                                                                                                          be,
                                                                                                                          registered
                                                                                                                          under
                                                                                                                          the
                                                                                                                          Securities
                                                                                                                          Act
                                                                                                                          of
                                                                                                                          1933,
                                                                                                                          as
                                                                                                                          amended
                                                                                                                          (the
                                                                                                                          “Securities
                                                                                                                          Act”)
                                                                                                                          by reason
                                                                                                                          of
                                                                                                                          a
                                                                                                                          specific
                                                                                                                          exemption
                                                                                                                          from
                                                                                                                          the
                                                                                                                          registration
                                                                                                                          provisions
                                                                                                                          of
                                                                                                                          the
                                                                                                                          Securities
                                                                                                                          Act,
                                                                                                                          the
                                                                                                                          availability
                                                                                                                          of which
                                                                                                                          depends
                                                                                                                          upon,
                                                                                                                          among
                                                                                                                          other
                                                                                                                          things,
                                                                                                                          the
                                                                                                                          bona
                                                                                                                          fide
                                                                                                                          nature
                                                                                                                          of
                                                                                                                          the
                                                                                                                          investment
                                                                                                                          intent
                                                                                                                          and
                                                                                                                          the
                                                                                                                          accuracy
                                                                                                                          of Assignee’s
                                                                                                                          representations
                                                                                                                          as
                                                                                                                          expressed
                                                                                                                          herein
                                                                                                                          or otherwise
                                                                                                                          made
                                                                                                                          pursuant
                                                                                                                          hereto;

 

		c.	Assignee
                                                                                                                          has
                                                                                                                          substantial
                                                                                                                          experience
                                                                                                                          in
                                                                                                                          evaluating
                                                                                                                          and
                                                                                                                          investing
                                                                                                                          in
                                                                                                                          securities
                                                                                                                          of companies
                                                                                                                          similar
                                                                                                                          to
                                                                                                                          the
                                                                                                                          Company
                                                                                                                          and
                                                                                                                          acknowledge
                                                                                                                          that
                                                                                                                          it
                                                                                                                          can
                                                                                                                          protect
                                                                                                                          its
                                                                                                                          own
                                                                                                                          interests.
                                                                                                                          Assignee
                                                                                                                          has
                                                                                                                          such
                                                                                                                          knowledge
                                                                                                                          and
                                                                                                                          experience
                                                                                                                          in financial
                                                                                                                          and
                                                                                                                          business
                                                                                                                          matters
                                                                                                                          so it
                                                                                                                          is capable
                                                                                                                          of
                                                                                                                          evaluating
                                                                                                                          the
                                                                                                                          merits
                                                                                                                          and
                                                                                                                          risks
                                                                                                                          of its
                                                                                                                          investment
                                                                                                                          in the
                                                                                                                          Company.
                                                                                                                          Assignee
                                                                                                                          is
                                                                                                                          an
                                                                                                                          “accredited
                                                                                                                          investors”
                                                                                                                          within
                                                                                                                          the
                                                                                                                          meaning
                                                                                                                          of
                                                                                                                          Regulation
                                                                                                                          D,
                                                                                                                          Rule
                                                                                                                          501(a),
                                                                                                                          promulgated
                                                                                                                          by the
                                                                                                                          Securities
                                                                                                                          and
                                                                                                                          Exchange
                                                                                                                          Commission
                                                                                                                          under
                                                                                                                          the
                                                                                                                          Securities
                                                                                                                          Act;

 

		d.	Assignee
                                                                                                                          has
                                                                                                                          had
                                                                                                                          an
                                                                                                                          opportunity
                                                                                                                          to
                                                                                                                          receive
                                                                                                                          all
                                                                                                                          information
                                                                                                                          related
                                                                                                                          to
                                                                                                                          the
                                                                                                                          Company
                                                                                                                          requested
                                                                                                                          by
                                                                                                                          them
                                                                                                                          and
                                                                                                                          to
                                                                                                                          ask
                                                                                                                          questions
                                                                                                                          of
                                                                                                                          and
                                                                                                                          receive
                                                                                                                          answers
                                                                                                                          from
                                                                                                                          the
                                                                                                                          Company
                                                                                                                          regarding
                                                                                                                          the
                                                                                                                          Company,
                                                                                                                          and
                                                                                                                          its
                                                                                                                          business.
                                                                                                                          Assignee
                                                                                                                          has
                                                                                                                          reviewed
                                                                                                                          the
                                                                                                                          Company’s
                                                                                                                          periodic
                                                                                                                          reports
                                                                                                                          on file
                                                                                                                          with
                                                                                                                          Securities
                                                                                                                          and
                                                                                                                          Exchange
                                                                                                                          Act
                                                                                                                          filings;

 

		e.	Assignee
                                                                                                                          understands
                                                                                                                          that
                                                                                                                          there
                                                                                                                          is
                                                                                                                          a
                                                                                                                          limited
                                                                                                                          trading
                                                                                                                          market
                                                                                                                          for
                                                                                                                          the
                                                                                                                          shares
                                                                                                                          issued
                                                                                                                          upon
                                                                                                                          conversion
                                                                                                                          of
                                                                                                                          the
                                                                                                                          Note
                                                                                                                          and
                                                                                                                          that
                                                                                                                          an
                                                                                                                          active
                                                                                                                          market
                                                                                                                          may
                                                                                                                          not
                                                                                                                          develop
                                                                                                                          for
                                                                                                                          the
                                                                                                                          shares.

 

		f.	Assignee
                                                                                                                          represents
                                                                                                                          and
                                                                                                                          warrants
                                                                                                                          that
                                                                                                                          it
                                                                                                                          has
                                                                                                                          read
                                                                                                                          the
                                                                                                                          terms
                                                                                                                          of
                                                                                                                          the
                                                                                                                          Note
                                                                                                                          and
                                                                                                                          agrees
                                                                                                                          to
                                                                                                                          such
                                                                                                                          terms.

 

    	(1)

    	 

    

  

		5.	Entire
                                                                                                Agreement.
                                                                                                This
                                                                                                Agreement
                                                                                                constitutes
                                                                                                the
                                                                                                entire
                                                                                                agreement
                                                                                                between
                                                                                                the
                                                                                                parties
                                                                                                in
                                                                                                respect
                                                                                                of
                                                                                                the
                                                                                                assignments
                                                                                                contemplated
                                                                                                hereby
                                                                                                and
                                                                                                there
                                                                                                are
                                                                                                no
                                                                                                warranties,
                                                                                                representations,
                                                                                                terms,
                                                                                                conditions,
                                                                                                or collateral
                                                                                                agreements
                                                                                                expressed
                                                                                                or implied,
                                                                                                statutory
                                                                                                or otherwise,
                                                                                                other
                                                                                                then
                                                                                                expressly
                                                                                                set
                                                                                                forth
                                                                                                in this Agreement.
                                                                                                This
                                                                                                Agreement
                                                                                                expressly
                                                                                                supersedes
                                                                                                and
                                                                                                replaces
                                                                                                any
                                                                                                and
                                                                                                all
                                                                                                prior
                                                                                                understandings
                                                                                                or agreements
                                                                                                between
                                                                                                the
                                                                                                parties
                                                                                                with
                                                                                                respect
                                                                                                to the
                                                                                                subject
                                                                                                matter
                                                                                                of
                                                                                                this Agreement.

 

		6.	All
                                                                                                Further
                                                                                                Acts.
                                                                                                Each
                                                                                                of
                                                                                                the
                                                                                                parties
                                                                                                hereto
                                                                                                will
                                                                                                do
                                                                                                any
                                                                                                and
                                                                                                all
                                                                                                such
                                                                                                acts
                                                                                                and
                                                                                                will
                                                                                                execute
                                                                                                any
                                                                                                and
                                                                                                all
                                                                                                such
                                                                                                documents
                                                                                                as
                                                                                                may
                                                                                                reasonably
                                                                                                be
                                                                                                necessary
                                                                                                from
                                                                                                time
                                                                                                to time
                                                                                                to
                                                                                                give
                                                                                                full
                                                                                                force
                                                                                                and
                                                                                                effect
                                                                                                to
                                                                                                the
                                                                                                provisions
                                                                                                and
                                                                                                intent
                                                                                                of
                                                                                                this
                                                                                                Agreement.
                                                                                                The
                                                                                                Assignor
                                                                                                further
                                                                                                agrees
                                                                                                that
                                                                                                it
                                                                                                will,
                                                                                                at
                                                                                                any
                                                                                                time
                                                                                                and
                                                                                                from
                                                                                                time to
                                                                                                time after
                                                                                                the date
                                                                                                hereof,
                                                                                                upon
                                                                                                the
                                                                                                Assignee’s
                                                                                                request,
                                                                                                execute,
                                                                                                acknowledge
                                                                                                and
                                                                                                deliver
                                                                                                or cause
                                                                                                to be executed
                                                                                                and
                                                                                                delivered,
                                                                                                all
                                                                                                further
                                                                                                documents
                                                                                                or instruments
                                                                                                necessary
                                                                                                to effect
                                                                                                the transactions
                                                                                                contemplated
                                                                                                in this Agreement.

 

		7.	Choice
                                                                                                of
                                                                                                Law.
                                                                                                This
                                                                                                Agreement
                                                                                                shall
                                                                                                be
                                                                                                governed
                                                                                                by,
                                                                                                and
                                                                                                construed
                                                                                                with,
                                                                                                the
                                                                                                laws
                                                                                                of the
                                                                                                State
                                                                                                of
                                                                                                New
                                                                                                York,
                                                                                                without
                                                                                                giving
                                                                                                effect
                                                                                                to the
                                                                                                conflict
                                                                                                of
                                                                                                laws
                                                                                                provisions
                                                                                                thereof.

 

		8.	Notices.
                                                                                                Notices
                                                                                                to Assignee
                                                                                                under
                                                                                                the
                                                                                                Note,
                                                                                                shall
                                                                                                be
                                                                                                to the
                                                                                                address
                                                                                                set
                                                                                                forth
                                                                                                above.

 

		9.	Headings.
                                                                                                The
                                                                                                headings
                                                                                                and
                                                                                                captions
                                                                                                contained
                                                                                                in
                                                                                                this
                                                                                                Agreement
                                                                                                are
                                                                                                for
                                                                                                convenience
                                                                                                of reference
                                                                                                only
                                                                                                and
                                                                                                will
                                                                                                not
                                                                                                in
                                                                                                any
                                                                                                way
                                                                                                affect
                                                                                                the
                                                                                                meaning
                                                                                                or
                                                                                                interpretation
                                                                                                of
                                                                                                this Agreement.

 

		10.	Survival.
                                                                                                 Each
                                                                                                 party
                                                                                                 is
                                                                                                 entitled
                                                                                                 to
                                                                                                 rely
                                                                                                 on
                                                                                                 the
                                                                                                 representations
                                                                                                 and
                                                                                                 warranties
                                                                                                 of
                                                                                                 the
                                                                                                 other
                                                                                                 party
                                                                                                 and
                                                                                                 all
                                                                                                 such
                                                                                                 representations
                                                                                                 and
                                                                                                 warranties
                                                                                                 will
                                                                                                 be
                                                                                                 effective
                                                                                                 regardless
                                                                                                 of
                                                                                                 any
                                                                                                 investigation
                                                                                                 that
                                                                                                 the
                                                                                                 party
                                                                                                 has
                                                                                                 undertaken
                                                                                                 of
                                                                                                 failed
                                                                                                 to
                                                                                                 undertake.
                                                                                                 The
                                                                                                 representations
                                                                                                 and
                                                                                                 warranties
                                                                                                 will
                                                                                                 survive
                                                                                                 the
                                                                                                 effective
                                                                                                 date
                                                                                                 of
                                                                                                 this
                                                                                                 Agreement
                                                                                                 and
                                                                                                 continue
                                                                                                 in
                                                                                                 full
                                                                                                 force
                                                                                                 and
                                                                                                 effect
                                                                                                 until six
                                                                                                 (6)
                                                                                                 months
                                                                                                 after
                                                                                                 the
                                                                                                 effective
                                                                                                 date
                                                                                                 of
                                                                                                 this Agreement.

 

		11.	No
                                                                                                 Assignment.
                                                                                                 No
                                                                                                 Party
                                                                                                 may
                                                                                                 assign
                                                                                                 any
                                                                                                 right,
                                                                                                 benefit
                                                                                                 or
                                                                                                 interest
                                                                                                 in
                                                                                                 this
                                                                                                 Agreement
                                                                                                 without
                                                                                                 the
                                                                                                 written
                                                                                                 consent
                                                                                                 of
                                                                                                 the
                                                                                                 other
                                                                                                 party,
                                                                                                 which
                                                                                                 consent
                                                                                                 may
                                                                                                 not
                                                                                                 be unreasonably
                                                                                                 withheld.
                                                                                                 This
                                                                                                 Agreement
                                                                                                 will
                                                                                                 inure
                                                                                                 to the benefit
                                                                                                 of,
                                                                                                 and
                                                                                                 be binding upon, the Assignors
                                                                                                 and
                                                                                                 the
                                                                                                 Assignee
                                                                                                 and
                                                                                                 their
                                                                                                 respective
                                                                                                 successors
                                                                                                 and
                                                                                                 assigns.

 

		12.	Amendment.
                                                                                                 This
                                                                                                 Agreement
                                                                                                 may
                                                                                                 not
                                                                                                 be
                                                                                                 amended
                                                                                                 except
                                                                                                 by
                                                                                                 an
                                                                                                 instrument
                                                                                                 in
                                                                                                 writing
                                                                                                 signed
                                                                                                 by
                                                                                                 each
                                                                                                 of
                                                                                                 the
                                                                                                 parties.

 

		13.	Counterparts
                                                                                                 and
                                                                                                 Electronic
                                                                                                 Means.
                                                                                                 This
                                                                                                 Agreement
                                                                                                 may
                                                                                                 be
                                                                                                 executed
                                                                                                 in
                                                                                                 several
                                                                                                 counterparts,
                                                                                                 each
                                                                                                 of
                                                                                                 which
                                                                                                 will
                                                                                                 be
                                                                                                 deemed
                                                                                                 to
                                                                                                 be
                                                                                                 an
                                                                                                 original
                                                                                                 and
                                                                                                 all
                                                                                                 of
                                                                                                 which
                                                                                                 will
                                                                                                 together
                                                                                                 constitute
                                                                                                 one
                                                                                                 and
                                                                                                 the
                                                                                                 same
                                                                                                 instrument.
                                                                                                 Delivery
                                                                                                 of
                                                                                                 an
                                                                                                 executed
                                                                                                 copy
                                                                                                 of
                                                                                                 this Agreement
                                                                                                 by electronic
                                                                                                 facsimile
                                                                                                 transmission
                                                                                                 or other
                                                                                                 means
                                                                                                 of electronic
                                                                                                 communication
                                                                                                 capable
                                                                                                 of producing
                                                                                                 a printed
                                                                                                 copy
                                                                                                 will
                                                                                                 be deemed
                                                                                                 to be
                                                                                                 execution
                                                                                                 and
                                                                                                 delivery
                                                                                                 of
                                                                                                 this Agreement
                                                                                                 as
                                                                                                 of
                                                                                                 the
                                                                                                 day
                                                                                                 and
                                                                                                 year
                                                                                                 first
                                                                                                 written
                                                                                                 above.

 

    	(2)

    	 

    

 

 

IN
WITNESS
WHEREOF
the parties
hereto
have executed
this Agreement
as of
the day and
year
first above
written.

 

Assignor:

 

Asher
Enterprises,
Inc.

 

By:
/s/ Curt Kramer 

Name:
Curt Kramer

Title:
  President

 

Assignee:

 

Linear
Capital
LLC

640
S. San Vicente
Blvd., 5th Floor
Beverly
Hills, CA 90048

 

By:
/s/ Brad Stewart 

Name:
Brad Stewart

Title:
 Chief Executive Officer 

 

Company:
SIMPLEPONS,
INC.

 

By:
/s/ Brian S. John

BRIAN
S. JOHN

Chief
Executive
OfficerSimplePons,
Inc.

220
Congress Park Drive

Suite
304

Delray
Beach, FL 33445

 

February
8, 2013

 

Linear Group
Holdings Inc.

11693 San
Vincente Blvd.

Suite 824

Los Angeles,
CA 90049

 

Re:Modification
to Convertible Promissory Note

 

Gentlemen:

 

Reference
is made to that certain Convertible Promissory Note in the principal amount of $63,000 with an Issue Date of October 26, 2012
(the “Note”) issued by SimplePons, Inc., a Delaware corporation (the “Borrower”)
to Asher Enterprises, Inc. which was subsequently assigned to Linear Group Holdings Inc. (the “Holder”)
pursuant to the Assignment Agreement dated February 8, 2013 (the “Assignment Agreement”). Capitalized
terms not defined herein shall have the meaning ascribed to such terms in the Note. The Holder is acting as nominee for other
payee holders of the Note none of which, including the Holder, has a beneficial interest of five percent (5%) or more of the Common
Stock of the Borrower by virtue of voting or dispositive control as a result of their interest in the Note or otherwise. This
letter agreement shall modify the terms of the Note as follows:

 

		1.	Sections
                                                                                                                             1.1
                                                                                                                             and
                                                                                                                             1.2
                                                                                                                             of
                                                                                                                             the
                                                                                                                             Note
                                                                                                                             are
                                                                                                                             hereby
                                                                                                                             modified
                                                                                                                             in
                                                                                                                             their
                                                                                                                             entirety
                                                                                                                             to
                                                                                                                             provide
                                                                                                                             that
                                                                                                                             the
                                                                                                                             Note
                                                                                                                             shall
                                                                                                                             be
                                                                                                                             convertible
                                                                                                                             at
                                                                                                                             the
                                                                                                                             option
                                                                                                                             of
                                                                                                                             the
                                                                                                                             Holder
                                                                                                                             and
                                                                                                                             payee
                                                                                                                             holders
                                                                                                                             (on
                                                                                                                             a
                                                                                                                             pro-rata
                                                                                                                             basis)
                                                                                                                             into
                                                                                                                             an
                                                                                                                             aggregate
                                                                                                                             of
                                                                                                                             632,260,655
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             of
                                                                                                                             the
                                                                                                                             Borrower.

 

		2.	Section
                                                                                                                             1.3
                                                                                                                             of
                                                                                                                             the
                                                                                                                             Note
                                                                                                                             is
                                                                                                                             hereby
                                                                                                                             amended
                                                                                                                             such
                                                                                                                             that
                                                                                                                             the
                                                                                                                             term
                                                                                                                             “Reserved
                                                                                                                             Amount”
                                                                                                                             shall
                                                                                                                             mean
                                                                                                                             632,260,655
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             common
                                                                                                                             stock,
                                                                                                                             as
                                                                                                                             adjusted
                                                                                                                             for
                                                                                                                             stock
                                                                                                                             splits
                                                                                                                             and
                                                                                                                             the
                                                                                                                             like.
                                                                                                                             In
                                                                                                                             addition,
                                                                                                                             such
                                                                                                                             obligation
                                                                                                                             to
                                                                                                                             reserve
                                                                                                                             shares
                                                                                                                             pursuant
                                                                                                                             to
                                                                                                                             Section
                                                                                                                             1.3
                                                                                                                             shall
                                                                                                                             be
                                                                                                                             suspended
                                                                                                                             until
                                                                                                                             June
                                                                                                                             30,
                                                                                                                             2013,
                                                                                                                             or
                                                                                                                             the
                                                                                                                             effective
                                                                                                                             date
                                                                                                                             of
                                                                                                                             a
                                                                                                                             reverse
                                                                                                                             stock
                                                                                                                             split
                                                                                                                             by
                                                                                                                             the
                                                                                                                             Borrower
                                                                                                                             whichever
                                                                                                                             is
                                                                                                                             earliest.

 

		3.	Section
                                                                                                                             1.9
                                                                                                                             of
                                                                                                                             the
                                                                                                                             Note
                                                                                                                             is
                                                                                                                             hereby
                                                                                                                             deleted
                                                                                                                             in
                                                                                                                             its
                                                                                                                             entirety.

 

Except
as modified herein, the balance of the Note shall remain in full force and effect. This letter agreement may be executed in two
or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective
when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need
not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of
a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on
whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page
were an original thereof.

 

All
questions concerning the construction, validity, enforcement and interpretation of this letter agreement shall be determined in
accordance with the provisions of the Note and Assignment Agreement.

 

Sincerely,

 

SIMPLEPONS,
INC.

 

By:
_/s/ Brian S. John_____________________

Brian
S. John, Chief Executive Officer

Accepted
and Agreed to:

 

Linear
Group Holdings Inc.

By:______________________________________________

Name:____________________________________________

Title:_____________________________________________

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