Document:

Hawk Systems, Inc.

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

THIS AGREEMENT, dated as of December 15 , 2009 (this “Agreement”), is between Hawk Systems, Inc., a Delaware corporation, (the “Company”), and Michael Diamant (the “Executive”).

RECITALS

A.

The Company believes the Executive can make a unique contribution to the business of the Company and the Board of Directors of the Company believes that the services of the Executive would be of great value to the Company. 

B.

The Company is willing to employ the Executive and the Executive is willing to accept employment by the Company upon the terms and provisions, and subject to the conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained and of the mutual benefits herein provided, the receipt and sufficiency of which are hereby acknowledged, the Company and the Executive hereby agree as follows:

1.

TERM OF EMPLOYMENT.

The Company hereby employs the Executive and the Executive hereby accepts employment by the Company, on the terms and conditions herein contained, for a period of one (1) year commencing as of thirty (30) days from the date hereof and ending on the first (1st) anniversary of the date of commencement, subject to termination as hereinafter provided (the period from the date hereof through the first (1st) anniversary of the date hereof or the date of automatic termination of the Executive’s employment in accordance with the terms hereof, as the case may be (the “Employment Period”).  This Agreement and the Employment Period shall automatically extend for subsequent one (1) year periods by both parties, unless either party notifies the other not later than sixty (60) days prior to the then expiration date of the Employment Period that such party does not intend for the Employment Period to automatically extend.

2.

DUTIES.

(a)  

General Duties.  During the Employment Period, the Executive shall serve the Company as its Chief Executive Officer, with such duties consistent therewith, including but not limited to such duties as may be reasonably assigned to him from time to time by the Board of Directors of the Company.  Additionally, upon execution of this Agreement, the Executive shall be appointed to the Board of Directors.

(b)  

Primary Activity.

(i)

During the Employment Period, the Executive shall devote his full business efforts, time and energy to the interests and business of the Company; however, the Executive shall be excused from performing any services for the Company hereunder during periods of temporary illness or incapacity and during vacations. The Executive shall perform the duties set forth in subparagraph (a) above, unless as may be otherwise assigned by the Company from time to time. It is acknowledged that the duties of the Executive may often require from time to time attention to business at times other than normal business hours. During the 

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Employment Period, the Executive shall, to the best of his skill and ability, perform his obligations hereunder and to advance and promote the business of the Company. The Executive shall perform his duties and obligations hereunder diligently, faithfully and completely, and with the Executive’s application of his abilities, skills and judgment and in accordance with ethical and professional standards.

(c)

Travel.  The Executive agrees to travel for business purposes in connection with his responsibilities hereunder in a reasonable amount for reasonable lengths of time, commensurate with the Executive’s position and responsibilities. 

3.

COMPENSATION.

As full compensation to the Executive for performance of his services hereunder, the Company agrees to pay the Executive and the Executive agrees to accept the following salary and other benefits during the Employment Period:

(a)

Salary.  The Company shall pay the Executive a salary at the annual rate of Five Hundred Thousand Dollars ($500,000.00) per year (“Base Salary”).  The Base Salary due the Executive hereunder shall be payable in equal monthly installments, less any amounts required to be withheld by the Company from time to time from such salary under any applicable federal, state or local income tax laws or similar laws then in effect.    

(b)  

Sign On bonus. The Company shall pay the Executive a sign on bonus of $160,000 within 30 days of the execution of this Agreement.

(c)

Reimbursement of Expenses.  The Company shall reimburse the Executive for all expenses properly incurred by him in the performance of his duties hereunder in accordance with policies established from time to time by the Board of Directors of the Company.  

(d)

Further Benefits.  The Company shall provide the Executive with officers and directors liability insurance and all health, accident, retirement or similar employee benefit plans, which plans shall be provided by the Company generally to the executives of the Company to the extent commensurate with the participation therein of the senior executives of the Company.  The Executive shall be entitled to participate in any present or future bonus, insurance, pension, retirement, profit sharing, or other compensation or incentive or benefit plans adopted by the Company, for the general and overall benefit of senior executives of the Company or the employees of the Company, the extent and manner of participation to be reasonably determined by the Board of Directors.  The benefits provided in this Section 3(d) shall be in addition to the compensation and benefits provided elsewhere in this Section 3. With respect to any healthcare plan, the Company will permit the Executive to purchase health insurance to include coverage of Executive’s son but at the sole cost and expense of Executive.

(e)

Stock Options.  The Company shall grant the Executive an option to purchase 4,000,000 shares of common stock of the Company (on a post split basis) at a purchase price equal to the closing bid price of the common stock on the date immediately preceding the execution of this Agreement. The option shall have a term of five years and shall be fully vested and non-cancellable at the time of the grant.

(f)

Stock Grant.  The Company shall grant the Executive 4,000,000 shares of common stock of the Company on a post split basis upon the execution of this Agreement. 

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(g)

Annual Bonus.  The Company shall provide the Executive with an annual bonus opportunity of up to $200,000 during each year of the term hereof based upon performance criteria to be established jointly by the Compensation Committee and the Executive within sixty (60) days from the commencement of this Agreement and approved by the Board of Directors each year.

(h)

Offices.  The Executive agrees to serve without additional compensation, if elected or appointed thereto, in one or more offices or as a director of any of the Company’s affiliates, subsidiaries or sister companies.

(i)

Vacation. The Executive shall be entitled to four (4) weeks vacation per year during the Employment Period.

4.

RESTRICTIONS AGAINST COMPETITION, SOLICITATION, SERVICING, AND DIVULGING CORPORATE CONFIDENTIAL DATA  

(a)

Covenant Not to Compete.  As a material inducement to sign this Agreement, and provided that the Company meets its financial obligations to the Executive as set forth in this Agreement, the Executive agrees that as long as he is an employee of the Company, he will not Compete with the Company and, further, that he will not Compete with the Company during the two (2) year period beginning on the date of termination of this Agreement (the “Restriction Period”). During the Employment Period and the Restriction Period, the Executive shall not within the United States directly or indirectly, either for Executive’s own account, or as a partner, shareholder (other than shares regularly traded in a recognized market), officer, director, employee, agent, consultant or otherwise, be employed by connected with, acquire or own in any manner, participate in, consult or otherwise associate with any other business, enterprise or venture that is competitive with the Company’s business. 

(b)

Covenant Not to Solicit Employees. During Employment Period and Restriction Period, the Executive shall not, directly or indirectly, solicit for employment or employ any employee of the Company.  

(c)

Covenant Not to Solicit or Service.  The Executive acknowledges and agrees that the Company has spent significant amounts of time and money in the development of lists of its Customers, clients, liaisons, suppliers, distributors and vendors, which lists are not available to the general public or the Company’s other executives, and that these lists may contain other information about the Customers, clients, liaisons, suppliers, distributors and vendors not available to the general public and that the Executive will be privileged to these lists.  The Executive also acknowledges and agrees that the Company and its business would be irreparably and greatly damaged by the use of this information other than for its benefit.  Therefore, as a material inducement to the Company to enter into this Agreement, the Executive agrees that during the Employment Period and the Restriction Period that the Executive will not solicit or do business with, or attempt to solicit or do business with, directly or indirectly any of the Company’s Customers, clients, liaisons, suppliers, distributors or vendors, except on the Company’s behalf and will not solicit or do business with or attempt to solicit or do business with, directly or indirectly, any of the Company’s Customers, clients, liaisons, suppliers, distributors, developers and vendors.

(d)

Covenant Not to Violate Corporate Confidences.  During the Employment Period and the Restriction Period, the Executive will have access to and will become aware of confidential information and trade secrets of the Company (the “Confidential Information”) including Customer data, pricing, vendor data, market plans, business plans, files, business 

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secrets, business processes and business techniques not generally available to the public, and this Confidential Information has been compiled by the Company at great expense and over a great amount of time.  The parties acknowledge that this confidential information gives the Company a competitive advantage over other businesses in its field of endeavor and that the Company’s business will be greatly and irreparably damaged by the release or use of this confidential information outside of its own business.  Therefore, as a material inducement to the Company to enter into this Agreement, the Executive agrees that the Executive will not, during the Employment Period and during the Restriction Period, either disclose or divulge this Confidential Information to anyone or use the Confidential Information in any manner, other than in the performance of the Executive’s duties and obligations to the Company hereunder.  Notwithstanding the foregoing, the Executive may disclose Confidential Information pursuant to the applicable law or regulation or pursuant to subpoena or any civil or criminal investigatory request by any governmental body or regulatory authority.  For purposes hereof, Confidential Information shall not include information that (i) becomes publicly known other than due to a breach of this Agreement by the Executive; (ii) was known by the Executive prior to the commencement of this Agreement; or (iii) is furnished to the Executive by a third party who, to the knowledge of the Executive after reasonable inquiry, is not bound by a confidentiality or other similar obligation in favor of the Company.

(e)

Enforcement.  The Company may enforce the provisions of this section by suit for damages, injunction, or both.

(i)

The Company would be irreparably injured by the breach of any provision of this Section 4 by the Executive, and money damages alone would not be an appropriate measure of the harm to the Company from such continuing breach.  Therefore, equitable relief, including specific performance of these provisions by injunction, would be an appropriate remedy for the breach of these provisions.  The right to seek equitable relief shall not be the exclusive remedy available to the Company for any such breach and all available remedies, including, without limitation, the right to seek monetary damages by suit or any other proceeding shall be cumulative.

(ii)

The obligations of the Executive pursuant to this Section 4 shall survive and shall be in full force and effect even if this Agreement is terminated for any reason whatsoever, not renewed or extended.

(f)

Definitions.  For the purposes of this Agreement the following terms shall have the following the meanings:

(i)

“to Compete” and “to Compete with the Company” both mean to engage in any  business that is competitive with the Company in any manner whatsoever as of the date of termination of this Agreement, and which business comprises not less than 5% of the gross revenues of the Company for the twelve month period preceding the termination of this Agreement, including competing as a proprietor, partner, investor, stockholder, director, officer, employee, consultant, independent contractor, or otherwise, within the United States.

(ii)

“Customer of the Company” shall mean any person or entity for whom it has performed or attempted to perform services or sold or, to the knowledge of the Executive, attempted to sell any product or service (including, without limitation, any client, patient, customer, franchisee, liaison, vendor or distributor), whether or not for compensation, and regardless of the date of such rendition, sale, or attempted rendition or sale.

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5.

TERMINATION OF AGREEMENT.

(a)

Events of Termination.  The Employment Period shall cease and terminate upon the earliest to occur of the events specified below:

 (i)

the close of business on the first (1st) anniversary of the date of commencement hereof (or such anniversary of any subsequent renewal date as provided for in Section 1 hereof) if either party provides written notice of termination pursuant to Section 1 hereof.

(ii)

the death of the Executive;

(iii)

termination of the Executive’s employment for Cause.  

(iv)

the election by the Executive to terminate his employment hereunder upon Sixty (60) days prior written notice;

(v)

due to the election by the Company to terminate the Executive’s employment hereunder without Cause; or

(vi)

the permanent disability of the Executive.  

(b)

Definitions.  For the purpose of this Agreement, the following terms shall have the following meanings:

(i)

“Cause” to terminate the Executive’s employment hereunder shall exist upon (A) the failure by the Executive to substantially perform his material duties hereunder as solely determined by the Company, provided, however, that the Company shall have first given the Executive written notice and the opportunity to cure within thirty (30) days thereafter, other than any such failure resulting from incapacity due to permanent disability (as hereafter determined), (B) the engaging by the Executive in gross negligence or willful misconduct injurious or potentially injurious to the Company or any of its subsidiaries as reasonably determined by the Board of Directors of the Company, (C) a breach by the Executive of the provisions of Section 4 hereof as reasonably determined by the Company, (D) any breach of loyalty or fiduciary duty as an officer or director of the Company or any of its subsidiaries as reasonably determined by the Board of Directors of the Company or (E) the conviction of the Executive of any crime, other than a misdemeanor. 

(ii)

“Permanent Disability” of the Executive shall 

mean the Executive’s inability, because of his injury, illness, or other incapacity (physical or mental), as determined by a physician mutually acceptable to the Executive and the Company to perform the services to the Company contemplated hereby for a continuous period of One Hundred and Eighty (180) days.  Such permanent disability shall be deemed to have occurred on the One Hundred and Eightieth (180th) day.  

(c)

Compensation Upon Termination.  If the Employment Period shall cease and terminate pursuant to Section 5(a) hereof for any reason, except pursuant to Section 5(a) (iii), the Company shall pay to the Executive (or his estate in the case of subsection (a)(ii)) his Base Salary pursuant to Section 3(a) hereof and the reimbursable expenses incurred under Section 3(b) hereof through the date of termination plus Base Salary for 12 months, and bonus through the date of termination as set forth in the guidelines to be established pursuant to Section 3(g) hereof.  If the 

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Company terminates the Executive under Section 5(a)(iii), the Company shall pay to the Executive (or his estate in the case of subsection (a)(ii)) his Base Salary pursuant to Section 3(a) hereof and the reimbursable expenses incurred under Section 3(b) hereof through the date of termination. The Company shall have no additional or further liability to the Executive hereunder.

(d)

Effect of Termination.  This Agreement and all liabilities and obligations of the parties hereto hereunder shall cease and terminate effective upon any termination of the Employment Period permitted by this Agreement; provided, however, that the Executive’s obligations under Section 4 hereof shall survive any such termination.

(e)

Remedies.  Nothing herein contained shall be construed as prohibiting any party hereto from pursuing any other remedies available to it for any breach of any provision hereof.

6.

NOTICES.

All notices, demands, consents, requests, instructions and other communications to be given or delivered or permitted under or by reason of the provisions of this Agreement or in connection with the transactions contemplated hereby shall be in writing and shall be deemed to be delivered and received by the intended recipient as follows:  (i) if personally delivered, on the business day of such delivery (as evidenced by the receipt of the personal delivery service), (ii) if mailed, certified or registered mail, return receipt requested, four (4) business days after being mailed, (iii) if delivered by overnight courier (with all charges having been prepaid), on the business day of such delivery (as evidenced by the receipt of the overnight courier service of recognized standing), or (iv) if delivered by facsimile transmission, on the business day of such delivery if sent by 5:00 p.m. in the time zone of the recipient, or if sent after that time, on the next succeeding business day (as evidenced by the printed confirmation of delivery generated by the sending party’s facsimile machine).  If any notice, demand, consent, request, instruction or other communication cannot be delivered because of a changed address of which no notice was given (in accordance with Section 6), or the refusal to accept same, the notice, demand, consent, request, instruction or other communication shall be deemed received on the second business day the notice is sent (as evidenced by a worn affidavit of the sender).  All such notices, demands, consents, requests, instructions and other communications will be sent to the following addresses or facsimile numbers as applicable:

(a)

If to the Company:

Hawk Systems, Inc.

6660 Audubon Trace West

West Palm Beach, FL 33412

ATTN:  David Coriaty

With a copy to:

Greenberg Traurig P.A.

5100 Town Center Circle

Suite 400

Boca Raton, FL 33486

ATTN:  Bruce C. Rosetto, Esq.

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(b)

If to the Executive, addressed to:

Michael Diamant

11182 Sea Grass Circle

Boca Raton, FL 33498

With a copy to:

O’Neill, Liebman & Cooper, P.A.

2699 Lee Road, Suite 320

Winter Park, FL 32789

ATTN: Mark O. Cooper, Esq.

or to such other address as any party may specify by notice given to the other party in accordance with this Section 6.

7.

INVENTIONS.

The Executive shall disclose promptly to Company any and all conceptions and ideas for inventions, improvements, and valuable discoveries, whether patentable or not, which are conceived or made by the Executive solely or jointly with another during the Employment Period and which relate to the Company’s business.  The Executive hereby assigns and agrees to assign all his interest therein to Company or its nominee. Whenever requested by the Company, the Executive shall execute any and all applications, assigns or other instruments that Company shall deem necessary to apply for and obtain Letters of Patents of the United States or any foreign country or to otherwise protect Company’s interest therein, and if requested after the Employment Period, shall be at the Company’s cost and expense.  These obligations shall continue beyond termination of employment with respect to inventions, improvements and valuable discoveries, whether patentable or not, conceived, made or acquired by the Executive during the Employment Period or within one year thereafter, and shall be binding upon the Executive’s heirs, assigns, executors, administrators and other legal representatives.

8.

RETURN OF PROPERTY.

All correspondence, reports, charts, products, records, designs, patents, plans, manuals, sales and marketing material, memorandum, advertising materials, customer lists, distributor lists, vendor lists, telephones, beepers, portable computers, and any other such data, information or property collected by or delivered to the Executive by or on behalf of the Company, their representatives, customers, suppliers or others and all other materials compiled by the Executive, in each case during the Employment Period, which pertain to the business of the Company shall be and shall remain the property of the Company and shall be delivered to the Company promptly upon its request at any time and without request upon completion or other termination of the Executive’s employment hereunder for any reason.

9.

REPRESENTATIONS OF THE EXECUTIVE.

The Executive represents and warrants to the Company that the execution of this Agreement by the Executive and his provision of services to the Company and the performance of his obligations hereunder will not violate or be a breach of any agreement with a former employer or any other person or entity. Further, the Executive agrees to indemnify Company for any claim, including but not limited to attorneys’ fees and expenses of investigation, by any such 

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third party that such third party may now have or may hereafter have against the Company based upon any noncompetition agreement, invention or secrecy agreement between the Executive and such third party.

10.

GOVERNING LAW; JURISDICTION.

(a)

This Agreement shall be governed by and construed in accordance with the laws of the State of Florida applicable to agreements made and to be performed in that state, without regard to any of its principles of conflicts of laws or other laws that would result in the application of the laws of other jurisdiction. 

(b)

Each of the parties unconditionally and irrevocably consents to the exclusive jurisdiction of the courts of the State of Florida and the federal district court located in Palm Beach County, Florida with respect to any suit, action or proceeding arising out of or relating to this Agreement that cannot be resolved by arbitration hereunder or for the purpose of enforcing any arbitration award hereunder, and each of the parties hereby unconditionally and irrevocably waives ay objection to venue in any such court or to assert that any such court is an inconvenient forum, and agrees that service of any summons, complaint, notice or other process relating to such suit, action or other proceeding may be effected in the manner provided in Section 6 hereof.  Each of the parties hereby unconditionally and irrevocably waives the right to a trial by jury in any such action, suit or other proceeding.

(c)

In the event any action or proceeding is commenced to enforce any of the provisions of this Agreement, or for damages for any breach of this Agreement, in addition to any other remedy to which it may be entitled, the prevailing party shall be entitled to reasonable attorney’s fees and to the costs of the proceeding.

11.

ADVICE OF COUNSEL.

The Executive recognizes that the Company is represented by counsel, namely Greenberg Traurig, P.A., and that such counsel does not represent the interests of the Executive.  The Company strongly recommends and suggests that the Executive obtain its own counsel to review this Agreement prior to execution of the Agreement.  The Company agrees to provide the Executive with a reasonable period of time to have this Agreement reviewed by its own counsel or any other professional adviser deemed appropriate by the Executive.  Should the Executive not choose to have this Agreement reviewed by its own counsel, then the Executive assumes the risk of such decision, and the Executive hereby acknowledges that Company has not unduly influenced the Executive in any way and that Company desires that the Executive retain its own counsel.

12.

AMENDMENT.

This Agreement may not be modified, amended, altered or supplemented, except by a written agreement executed by each of the parties hereto.

13.

ENTIRE AGREEMENT.

This Agreement embodies the entire understanding between the parties hereto respecting the subject matter hereof and no change, alteration or modification hereof may be made except in writing signed by both parties hereto.  Any prior employment agreement between the Company and the Executive shall be deemed to be superseded for all purposes by this Agreement and, upon 

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the execution and delivery of this Agreement by the Executive and the Company, any such prior employment agreement shall be deemed to be canceled and of no further force or effect.  

14.

WAIVER.

Any waiver by a party hereto of any such breach of or failure to comply with any provision or condition of this Agreement by any other party hereto shall not be construed as, or constitute, a continuing waiver of such provision or condition, or a waiver of any other breach of, or failure to comply with, any other provision or condition of this Agreement, any such waiver to be limited to the specific matter and instance for which it is given.  No waiver of any such breach of, or failure to comply with, or provision or condition of this Agreement shall not be effective unless in a written instrument signed by the party granting the waiver and delivered to the other party hereto in the manner provided for in Section 6 hereof.  No failure or delay by any party to enforce or exercise its rights hereunder shall be deemed a waiver of such right, nor shall any single or partial exercise of any such right or any abandonment or discontinuance of steps to enforce such rights, preclude any other or further exercise thereof or the exercise of any other right. 

15.

BINDING EFFECT, NO ASSIGNMENT, ETC.

This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective legal representatives, heirs, estate, successors and permitted assigns.  Neither this Agreement nor any right, interest or obligation hereunder may be assigned by any party hereto without the prior written consent of the other party, and any attempt to do so shall be null and void, ab initio, and of no force or effect, except (i) for assignments and transfers by operation of law and (ii) that the Company may assign any or all of its respective rights, interests and obligations hereunder to any purchaser of a majority of the issued and outstanding capital stock of the Company or a substantial part of the assets of the Company; provided that such successor or assignee of the Company assumes the obligations of the Company hereunder in a manner reasonably acceptable to the Executive.

16.

HEADINGS.

The section headings contained in the Agreement are inserted for reference purposes only and shall not affect in any way the meaning, construction or interpretation of this Agreement.  Any reference to the masculine, feminine, or neuter gender shall be a reference to such other gender as is appropriate.  References to the singular shall include the plural and vice versa.

17.

DRAFTING HISTORY.

This Agreement shall be construed and interpreted without regard to any presumption against the party causing this Agreement to be drafted.  The parties acknowledge that this Agreement was negotiated and drafted with each party being represented by competent counsel of its/his choice and with each party having an equal opportunity to participate in the drafting of the provisions hereof and shall therefore be construed as if drafted jointly by the parties.

18.

SEVERABILITY.

If any provisions of this Agreement shall be held invalid, illegal or unenforceable in whole or in part, neither the validity of the remaining part of such provisions nor the validity of any other provisions of this Agreement shall in any way be affected thereby.  

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19.

COUNTERPARTS.

This Agreement may be executed in two (2) or more counterparts (including by facsimile signature, which shall constitute a legal and valid signature), and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original, and all of which, when taken together, shall constitute one and the same document.  This Agreement shall become effective when one or more counterparts, taken together, shall have been executed and delivered by all of the parties.

[Signature Page Follows]

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

				
	COMPANY:

	 
	 
	 
	 

	Witnesses:

	 
	HAWK SYSTEMS, INC.

	                                                        

	               

	 
	                                                        

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	/s/Bruce Rosetto

	 
	By:

	/s/ David Coriaty

	 
	 
	Name:

	David Coriaty

	 
	 
	Title:

	Director

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	EXECUTIVE:

	 
	 
	 
	 

	 
	 
	 
	 

	/s/ Bruce Rosetto

	 
	 
	/s/ Michael Diamant

	 
	 
	 
	Michael Diamant

11INUVO, INC.

Exhibit 10.46

Second Amended and Restated Loan Agreement

 dated December 24, 2009 with Wachovia Bank, N.A.

SECOND AMENDED AND RESTATED LOAN AGREEMENT

Wachovia Bank, National Association

301 South Tryon Street

Charlotte, North Carolina 28202

(Hereinafter referred to as "Bank")

Inuvo, Inc. (f/k/a Kowabunga!, Inc., f/k/a Think Partnership Inc.), a Nevada corporation

15550 Lightwave Drive, 3rd Floor

Clearwater, Florida 37760

(Hereinafter referred to as "Borrower")

The Guarantors identified on the Signature Pages hereto

(Hereinafter collectively referred to as "Guarantors")

This Loan Agreement (as amended, restated, supplemented or modified from time to time, the "Agreement") is entered into as of December 24, 2009 (the "Closing Date") between Bank, Borrower and Guarantors. This Agreement is an amendment and restatement of that certain Amended and Restated Loan Agreement dated as of February 27, 2008 between Bank and Borrower (as amended, restated, supplemented or modified prior to the date hereof, the "Existing Loan Agreement"). 

This Agreement applies to the loan or loans (individually and collectively, the "Loan") evidenced by the Second Amended and Restated Revolving Credit Promissory Note, as of the date hereof (as amended, restated, supplemented or modified from time to time, the "Revolving Credit Note") and the Second Amended and Restated Term Promissory Note, as of the date hereof (as amended, restated, supplemented or modified from time to time, the "Term Note"; collectively with the Revolving Credit Note, the "Note"), the standby letters of credit issued hereunder (each, a "Letter of Credit" and collectively, the "Letters of Credit") and all Loan Documents. The terms "Loan Documents" and "Obligations," as used in this Agreement, are defined in the Note. All capitalized terms used and not defined herein shall have the meanings assigned thereto in the other Loan Documents. All terms that are used but not otherwise defined in any of the Loan Documents shall have the definitions provided in the Uniform Commercial Code.

Relying upon the covenants, agreements, representations and warranties contained in this Agreement, Bank is willing to extend credit to Borrower upon the terms and subject to the conditions set forth herein, and Bank and Borrower agree as follows:

REAFFIRMATIONS BY BORROWER AND GUARANTORS. Acknowledgment of Obligations. Borrower and Guarantors hereby acknowledge, confirm and agree that, as of December 22, 2009, (a) Borrower is indebted to Bank in respect of the Revolving Credit Note in the principal amount of $6,313,283.38, (b) Borrower is indebted to Bank in respect of the Term Note in the aggregate principal amount of $1,442,806.14 and (c) Letter of Credit #SM227727 remains outstanding and undrawn in the face amount of $475,000. All such Loans, together with interest accrued and accruing thereon, and all other Obligations, fees, costs, expenses and other charges now or hereafter payable by Borrower to Bank, in accordance with the Loan Documents 

1

and the Swap Agreements (including this Agreement), are unconditionally owing by Borrower and Guarantors to Bank without offset, defense or counterclaim of any kind, nature or description whatsoever. Acknowledgment of Security Interests. Borrower and Guarantors hereby acknowledge, confirm and agree that Bank has and shall continue to have valid, enforceable and perfected first-priority liens upon and security interests in the Collateral heretofore granted to Bank pursuant to the Loan Documents or otherwise granted to or held by Bank.

LETTERS OF CREDIT. The single existing Letter of Credit under the Existing Loan Agreement (Letter of Credit number SM227727 dated September 26, 2007 in the current face amount of $475,000) shall be deemed to have been issued pursuant hereto, and from and after December 24, 2009, shall be subject to and governed by the terms and conditions hereof. Bank shall have no obligation to issue any additional Letters of Credit nor honor any requests for issuance of Letters of Credit by Borrower. Bank shall give beneficiary of the outstanding Letter of Credit notice of non-renewal for such outstanding Letter of Credit in accordance with Bank’s customary practices. Borrower remains obligated to reimburse Bank immediately for any draw on any Letter of Credit. 

LETTER OF CREDIT FEES. Borrower shall pay to Bank, at such times as Bank shall require, Bank's standard fees in connection with Letters of Credit, as in effect from time to time. 

REPRESENTATIONS. Borrower represents on the date hereof and on the date of any Advance (as defined in the Note) that: Accurate Information. All information furnished to Bank was, at the time furnished, complete and correct in all material respects. Any such information relating to Borrower's and its Subsidiaries’ financial condition accurately reflects Borrower's and its subsidiaries’ financial condition as of the date(s) thereof, (including all contingent liabilities of every type), and Borrower further represents that its financial condition has not changed materially or adversely since the date(s) of such documents. Authorization; Non-Contravention. The execution, delivery and performance by Borrower and Guarantors of this Agreement and other Loan Documents to which it is a party are within its power, have been duly authorized as may be required and, if necessary, by making appropriate filings with any governmental agency or unit and are the legal, binding, valid and enforceable obligations of Borrower and Guarantors; and do not (i) contravene, or constitute (with or without the giving of notice or lapse of time or both) a violation of any provision of applicable law, a violation of the organizational documents of Borrower or Guarantors, or a default under any agreement, judgment, injunction, order, decree or other instrument binding upon or affecting Borrower or Guarantors, (ii) result in the creation or imposition of any lien (other than the lien(s) created by the Loan Documents) on any of Borrower's assets or Guarantor’s assets, or (iii) give cause for the acceleration of any obligations of Borrower or any of it subsidiaries to any other creditor. Asset Ownership. Borrower and Guarantors have good and marketable title to all of the properties and assets reflected on the balance sheets and financial statements (and as disclosed in the notes thereto) supplied to Bank by Borrower, and all such properties and assets are free and clear of mortgages, security deeds, pledges, liens, charges, and all other encumbrances, except: (a) liens for taxes, assessments and other governmental charges or levies (excluding any lien imposed pursuant to any of the provisions of ERISA) not yet due or as to which the period of grace (not to exceed thirty (30) days), if any, related thereto has not expired or which are being contested in good faith and by appropriate proceedings if adequate reserves are maintained to the extent required by GAAP, (b) liens existing on any property or asset prior to the acquisition thereof by Borrower or any Guarantor (as defined in the guaranty agreement of even date herewith by and among the 

2

domestic subsidiaries of Borrower and Bank, the "Guaranty Agreement") or existing on any property or asset of any entity that becomes a Guarantor after the date of consummation of such acquisition prior to the time such entity becomes a Guarantor, (c) liens in favor of Bank and (d) as otherwise disclosed to Bank by Borrower in writing and approved by Bank (collectively, "Permitted Liens"). Discharge of Liens and Taxes. Borrower and Guarantors have duly filed, paid and/or discharged all taxes or other claims that may become a lien on any of its property or assets, except to the extent that such items are being appropriately contested in good faith and an adequate reserve for the payment thereof is being maintained. Sufficiency of Capital. On and as of the Closing Date and after giving effect to all indebtedness being incurred or assumed and liens created by the Loan Agreement in connection therewith and on and as of the date of each Advance and after giving effect thereto (a) the sum of the assets, at a fair valuation on a going concern basis, of Borrower and its subsidiaries taken as a whole will exceed its debts; (b) Borrower and its subsidiaries taken as a whole has not incurred and does not intend to incur, and does not believe it will incur, debts beyond its ability to pay as these debts mature; and (c) Borrower and its subsidiaries taken as a whole will have sufficient capital with which to conduct its business. Compliance with Laws. Borrower represents that Borrower and any subsidiary and affiliate of Borrower and any Guarantor are in compliance in all respects with all federal, state and local laws, rules and regulations applicable to its properties, operations, business, and finances, including, without limitation, any federal or state laws relating to liquor (including 18 U.S.C. § 3617, et seq.) or narcotics (including 21 U.S.C. § 801, et seq.) and/or any commercial crimes; all applicable federal, state and local laws and regulations intended to protect the environment; and the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), if applicable. None of Borrower, or any subsidiary or affiliate of Borrower or any Guarantor is a Sanctioned Person or has any of its assets in a Sanctioned Country or does business in or with, or derives any of its operating income from investments in or transactions with, Sanctioned Persons or Sanctioned Countries in violation of economic sanctions administered by OFAC. The proceeds from the Loan will not be used to fund any operations in, finance any investments or activities in, or make any payments to, a Sanctioned Person or a Sanctioned Country. "OFAC" means the U.S. Department of the Treasury’s Office of Foreign Assets Control. "Sanctioned Country" means a country subject to a sanctions program identified on the list maintained by OFAC and available at http://www.treas.gov/offices/enforcement/ofac/programs/index.shtml, or as otherwise published from time to time. "Sanctioned Person" means (i) a person named on the list of Specially Designated Nationals or Blocked Persons maintained by OFAC available at http://www.treas.gov/offices/enforcement/ofac/sdn/index.shtml, or as otherwise published from time to time, or (ii) (A) an agency of the government of a Sanctioned Country, (B) an organization controlled by a Sanctioned Country, or (C) a person resident in a Sanctioned Country, to the extent subject to a sanctions program administered by OFAC. Organization and Authority. Each corporation, partnership or limited liability company of Borrower and it subsidiaries, as applicable, is duly created, validly existing and in good standing under the laws of the state of its organization, and has all powers, governmental licenses, authorizations, consents and approvals required to operate its business as now conducted. Each corporation, partnership or limited liability company of Borrower and its subsidiaries, as applicable, is duly qualified, licensed and in good standing in each jurisdiction where qualification or licensing is required by the nature of its business or the character and location of its property, business or customers, except to the extent that failure to qualify or be licensed, as the case may be, in the aggregate, would have a material adverse effect on the business, financial position, results of 

3

operations, properties or prospects of Borrower and Guarantors. No Litigation. Except as set forth on Schedule 1 hereto, there are no pending or threatened suits, claims or demands against Borrower and Guarantors that have not been disclosed to Bank by Borrower in writing, and approved by Bank. Financial Condition of Borrower. The financial statements which Borrower has submitted to Bank to induce it to make the Loan are correct and complete, and fairly present the financial condition of the Borrower and its subsidiaries on the dates thereof and the results of its operations for the periods then ended. No Default. Borrower and Guarantors are not in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement or instrument to which each is a party, except for defaults that would not normally be expected to have a material adverse effect on Borrower’s financial condition or results of operations. To Borrower's knowledge, no default has occurred under any Permitted Liens. ERISA. Each employee pension benefit plan, as defined in ERISA, maintained by Borrower meets, as of the date hereof, the minimum funding standards of ERISA and all applicable regulations thereto and requirements thereof, and of the Internal Revenue Code of 1986, as amended. No "Prohibited Transaction" or "Reportable Event" (as both terms are defined by ERISA) has occurred with respect to any such plan.

AFFIRMATIVE COVENANTS. Borrower agrees that from the date hereof and until final payment in full of the Obligations, unless Bank shall otherwise consent in writing, Borrower will, and will cause each Guarantor to: Access to Books and Records. Allow Bank, or its agents, during normal business hours, access to the books, records and such other documents of Borrower and the Guarantors as Bank shall reasonably require, and allow Bank to inspect, audit and examine the same and to make extracts therefrom and to make copies. Such access and inspection after the occurrence and during the continuance of a Default (as defined in the Note) at Borrower’s own reasonable cost and expense.  Business Continuity. Conduct its business in substantially the same manner as such business is now and has previously been conducted, or following disclosure to and approval by Bank. Certificate of Full Compliance. Deliver to Bank, with the financial statements required herein, a certification by Borrower's Chief Financial Officer that Borrower and Guarantors are in full compliance with the Loan Documents. Compliance with Other Agreements. Comply with all terms and conditions contained in this Agreement, and any other Loan Documents, and swap agreements, if applicable, as defined in the 11 U.S.C. § 101, as in effect from time to time. Estoppel Certificate. Furnish, within 15 days after request by Bank, a written statement duly acknowledged of the amount due under the Loan and identifying each outstanding Letter of Credit, if any, and whether offsets or defenses exist against the Obligations. Insurance. Maintain adequate insurance coverage with respect to its properties and business against loss or damage of the kinds and in the amounts customarily insured against by companies of established reputation engaged in the same or similar businesses including, without limitation, commercial general liability insurance, workers compensation insurance, and business interruption insurance. Maintain Properties. Maintain, preserve and keep its property in good repair, working order and condition, making all replacements, additions and improvements thereto necessary for the proper conduct of its business, unless prohibited by the Loan Documents. Notice of Default and Other Notices. (a) Notice of Default. Furnish to Bank immediately upon becoming aware of the existence of any condition or event which constitutes a Default (as defined in the Loan Documents) or any event which, upon the giving of notice or lapse of time or both, may become a Default, written notice specifying the nature and period of existence thereof and the actions which Borrower and the Guarantors are taking or propose to take with respect thereto. (b) Other Notices. Promptly notify Bank in writing of (i) any material adverse change in Borrower’s or any of the Guarantors’ financial condition or its business; (ii) 

4

any default, except as disclosed in Schedule 1 annexed hereto, under any material agreement, contract or other instrument to which it is a party or by which any of its properties are bound, or any acceleration of the maturity of any indebtedness owing by Borrower or any of the Guarantors; (iii) any material adverse claim against or affecting Borrower or any of the Guarantors or any part of their respective properties; (iv) the commencement of, and any material determination in, any litigation with any third party or any proceeding before any governmental agency or unit affecting Borrower or any of the Guarantors; (v) at least 30 days prior thereto, any change in Borrower's or any of the Guarantors’ names or address as shown above; and (vi) any change in Borrower's or any of the Guarantors’ structure. Other Financial Information. Deliver promptly such other information regarding the operation, business affairs, and financial condition of Borrower which Bank may reasonably request. Payment of Debts. Pay and discharge when due, and before subject to penalty or further charge, and otherwise satisfy before maturity or delinquency, all obligations, debts, taxes, and liabilities of whatever nature or amount, except those which Borrower or the Guarantors in good faith dispute. Reports and Proxies. Deliver to Bank, promptly, a copy of all financial statements, reports, notices, and proxy statements, sent by Borrower to stockholders, and all regular or periodic reports required to be filed by Borrower with any governmental agency or authority. Additional Subsidiaries. Borrower and Guarantors shall not, without the prior written consent of Bank, create, acquire or otherwise permit to exist any subsidiary, foreign or domestic, not in existence on the date of this Agreement. Field Exams, Appraisals and other Assessments of Collateral. Bank may obtain, at Borrower’s expense, such appraisals and field exams and other assessments of Collateral as Bank may reasonably request. Ownership of Guarantors. Borrower shall, absent notice to and prior written approval by Bank, own and shall maintain ownership of 100% of the capital stock, voting interests and ownership interests in each of the Guarantors. 

MANDATORY PREPAYMENT. In addition to payments required by the terms of the Notes, Borrower shall pay to Bank (each a "Prepayment"): (a) from Equity Sale Proceeds (defined below) (i) on or before December 24, 2009, $150,000.00; (ii) on or before December 31, 2009, $375,000.00; (iii) on or before March 31, 2010, $250,000.00; and (iv) on or before July 31, 2010, $250,000.00; and (b)(i) Net Proceeds (defined below) upon the sale or liquidation, outside of the ordinary course of business, of any Collateral, any Subsidiary or other asset and (ii) 25% of all Equity Sale Proceeds raised from and after July 31, 2010. "Equity Sale Proceeds" shall mean the gross cash proceeds received by Borrower or any Guarantor in connection with any sale or transfer of any capital stock of the Borrower, any Guarantor or any Subsidiary. "Net Proceeds" shall mean the gross cash proceeds and the proceeds of any installment sales received by Borrower or any Guarantor in connection with any sale or liquidation, outside of the ordinary course of business, of any Collateral, any Subsidiary or other asset less the sum of all reasonable actual third party costs of sale approved by Bank in connection therewith. Application of Prepayments. Prepayments shall be applied, first, to outstanding principal under the Term Note, second, following payment in full of the Term Note, to outstanding principal under the Revolving Credit Note with a corresponding permanent reduction of the Over-Advance until the Over-Advance amount is reduced to $0.00, and third, to outstanding principal under the Revolving Credit Note with a corresponding permanent reduction Maximum Availability. 

NEGATIVE COVENANTS. Borrower agrees that from the date hereof and until final payment in full of the Obligations, unless Bank shall otherwise consent in writing, Borrower will not, and will not permit any Guarantor to: Change in Fiscal Year. Change its fiscal year. Change of Control. Make or suffer a change in the Borrower’s or any Guarantor’s board of directors, such 

5

that the members of the Borrower’s or the applicable Guarantor’s board of directors as of the date of this Agreement fail to constitute a majority of the members of the board; provided that any individual becoming a member of the applicable board of directors who is nominated by the applicable board of directors shall be treated as if he or she were a member of the board as of the date of this Agreement. Encumbrances. Create, assume, or permit to exist any mortgage, security deed, deed of trust, pledge, lien, charge or other encumbrance on any of its assets, whether now owned or hereafter acquired, other than: (i) security interests required by the Loan Documents; (ii) liens for taxes contested in good faith; or (iii) liens accruing by law for employee benefits. Guarantees. Guarantee or otherwise become responsible for obligations of any other person or entity. Acquisitions. Purchase, own, invest in or otherwise acquire, directly or indirectly, any capital stock, interests in any partnership, limited liability company or joint venture, or otherwise obtain any equity ownership of any other person or entity unless approved by Bank in its sole discretion. Other Investments. Purchase any stock, securities, or evidence of indebtedness of any other person or entity except: investments in direct obligations of the United States Government and certificates of deposit of United States commercial banks having a tier 1 capital ratio of not less than 6%, and, then in an amount not exceeding 10% of the issuing bank's unimpaired capital and surplus; or (b) accounts receivable of Borrower or its subsidiaries arising in the ordinary course of business in connection with the compromise or collection thereof, unless approved by Bank in its sole discretion. Swap Agreements. Borrower shall not enter into any swap agreement with Bank or otherwise. Default on Other Contracts or Obligations. Default on any material contract with or obligation when due to a third party, except as disclosed on Schedule 1 annexed hereto, or default in the performance of any obligation to a third party incurred for money borrowed. Judgment Entered. Other than as permitted under the definition of "Permitted Liens," permit the entry of any monetary judgment or the assessment against, the filing of any tax lien against, or the issuance of any writ of garnishment or attachment against any property of or debts due Borrower and its subsidiaries, in excess of $100,000 in the aggregate. Prepayment of Other Debt. Retire any long-term debt entered into prior to the date of this Agreement at a date in advance of its legal obligation to do so; provided that Borrower and any Guarantor may make scheduled earn-out and deferred payments in connection with acquisitions consummated prior to the date of this Agreement. 

ANNUAL FINANCIAL STATEMENTS. Borrower shall deliver to Bank, as soon as available, but in any event within the period within which the Borrower is required to deliver its annual report on Form 10-K under the Securities Exchange Act of 1934 and the regulations promulgated by the U.S. Securities and Exchange Commission thereunder for each fiscal year, audited financial statements reflecting its operations during such fiscal year, including, without limitation, its audited consolidated and unaudited consolidating balance sheets and related statements of operations, stockholders’ equity and cash flows as of the end of and for the fiscal year then ended and prepared in accordance with GAAP, all such consolidated financial statements being certified by Borrower’s independent registered public accountants (without a "going concern" or like qualification or exception and without any qualification or exception as to the scope of such audit) and certified by Borrower’s Chief Financial Officer as presenting fairly in all material respects the financial condition and results of operations of Borrower in accordance with generally accepted accounting principles consistently applied.

PERIODIC FINANCIAL STATEMENTS. As soon as available, but in any event within the period within which the Borrower is required to deliver its quarterly report on Form 10-Q under the Securities Exchange Act of 1934 and the regulations promulgated by the U.S. Securities and 

6

Exchange Commission thereunder for each of the first three fiscal quarters of Borrower, its consolidated and consolidating balance sheets of Borrower and related statements of operations, stockholders’ equity and cash flows as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding date or period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by its Chief Financial Officer as presenting fairly in all material respects the financial condition and results of operations of Borrower in accordance with generally accepted accounting principles consistently applied, subject to normal year-end audit adjustments and the absence of footnotes. In addition, Borrower shall deliver, within 20 days after the end of each month or more frequently if requested by Bank, (i) a monthly listing of Borrower’s and the Guarantors’ accounts receivables and a detailed aging report (on an aged-by-invoice basis), all in form and substance reasonably satisfactory to Bank, and (ii) a monthly listing of Borrower’s and the Guarantors’ accounts payable and a detailed aging report (on an aged-by-invoice basis), all in form and substance reasonably satisfactory to Bank. 

COMPLIANCE CERTIFICATE; BORROWING BASE CERTIFICATE. Borrower agrees to deliver a Compliance Certificate (each a "Compliance Certificate") to Bank: (a) as soon as available but in any event within 20 days after the end of each month, a Compliance Certificate demonstrating compliance (including calculations) by Borrower and the Guarantors with each covenant contained in the Financial Covenants paragraph, and (b) as soon as available but in any event within 20 days after each month end, the Borrowing Base Certificate in the form of Exhibit A annexed hereto. Additional defined terms with respect to the Borrowing Base Certificate are set forth in Exhibit B annexed hereto.

FINANCIAL COVENANTS. Borrower agrees to the following provisions from the date hereof until final payment in full of the Obligations, unless Bank shall otherwise consent in writing, using the financial information for Borrower, its subsidiaries, affiliates and its holding or parent company, as applicable: Funded Debt to EBITDA. Borrower shall maintain a Funded Debt to EBITDA Ratio (i) as of December 31, 2009 of not more than 4.25 to 1.00; (ii) as of March 31, 2010 of not more than 3.25 to 1.00; (iii) as of June 30, 2010 of not more than 2.50 to 1.00; (iv) as of September 30, 2010 of not more than 2.00 to 1.00; and (v) as of December 31, 2010 of not more than 1.50 to 1.00. This covenant shall be calculated at Borrower's fiscal year end and quarterly, on a rolling four quarter basis. "Funded Debt to EBITDA Ratio" shall mean the sum of all Funded Debt divided by EBITDA. "Funded Debt" shall mean, as applied to any person or entity, the sum of all indebtedness for borrowed money, (including, without limitation, capital lease and synthetic lease obligations, subordinated debt (including debt subordinated to the Bank), and unreimbursed drawings under letters of credit), or any other monetary obligation evidenced by a note, bond, debenture or other agreement or similar instrument of that person or entity. "EBITDA" shall mean the sum of earnings before interest, taxes, depreciation and amortization. Fixed Charge Coverage Ratio. Borrower shall maintain a Fixed Charge Coverage Ratio (i) as of December 31, 2009 of not less than 0.50 to 1.00; (ii) as of March 31, 2010 of not less than 0.50 to 1.00; (iii) as of June 30, 2010 of not less than 0.75 to 1.00; (iv) as of September 30, 2010 of not less than 1.50 to 1.00; and (v) as of December 31, 2010 of not less than 2.50 to 1.00. This covenant shall be calculated at Borrower's fiscal year end and quarterly, on a rolling four quarter basis. "Fixed Charge Coverage Ratio" means EBITDA minus all dividends, distributions, withdrawals, non-cash income and capital expenditures made in that period divided by current maturities of long term debt (but excluding principal balance of the Revolving Credit Note and Prepayments), capital lease and synthetic lease obligations and 

7

subordinated debt (including debt subordinated to the Bank) plus interest expense. Capital Expenditures. Borrower shall not, during any fiscal year, expend on gross fixed assets (including gross leases to be capitalized under generally accepted accounting principles and leasehold improvements) an amount exceeding $500,000.00 in the aggregate. Limitation on Debt. Borrower and Guarantors shall not, directly or indirectly, create, incur, assume or become liable for any additional indebtedness, whether contingent or direct, other than (i) indebtedness existing on the date of this Agreement and (ii) accounts payable incurred in the ordinary course of business and payable on customary terms and conditions. Dividends and Distributions. Borrower shall not declare or pay cash dividends or make other similar distributions to its shareholders in any amount. Stock Repurchases. Borrower shall not purchase, redeem, retire or otherwise acquire, directly or indirectly, any shares of capital stock of the Borrower ("Equity Repurchases") in an amount unless approved by Bank in its sole discretion. 

RESTATEMENT FEE. In consideration of the agreements set forth herein, Borrower shall pay to Bank a restatement fee in the amount of $100,000 which amendment fee shall be fully earned on the date hereof (the "Restatement Fee") and shall be payable as follows: (i) $25,000 on January 31, 2010; $25,000 on March 31, 2010; $25,000 on June 30, 2010; and $25,000 on September 30, 2010. The Restatement Fee is in addition to all other fees, interest, costs and expenses payable in connection with the Loan Documents and may be charged by Bank to any account of Borrower maintained by Bank. The Restatement Fee shall be fully earned by Bank notwithstanding any failure by Borrower to comply with any other term of this Amendment. 

CONDITIONS TO EFFECTIVENESS. This Amendment shall become effective as of the date when the following conditions have been met (the "Effective Date"):

(a)

Bank shall have received an original of this Amendment duly authorized, executed and delivered by Borrower, the Guarantors and by Bank (whether such parties shall have signed the same or different copies);

(b)

Bank shall have received the original of the Second Amended and Restated Revolving Credit Promissory Note duly authorized, executed and delivered by Borrower, dated December 24, 2009, and in the original principal amount of $5,300,000.00;

(c)

Bank shall have received the original of the Second Amended and Restated Term Promissory Note duly authorized, executed and delivered by Borrower, dated December 24, 2009, and in the original principal amount of $4,142,806.14;

(d)

Bank shall have been reimbursed by Borrower for all reasonable fees and third-party out-of-pocket charges and other expenses incurred in connection with this Amendment, including, without limitation, the reasonable attorneys’ fees and expenses of Bank's counsel, and field examination fees;

(e)

Bank shall have received payment, in immediately available funds, of outstanding accrued interest and availability fees under the Existing Loan Agreement and related documents;

(f)

Bank shall have received the original Joinder Agreement duly authorized, executed and delivered by Exact Supplements LLC and Borrower, dated December 24, 2009;

(g)

Bank shall have received any other documents or instruments reasonably requested by Bank in connection with the execution of this Amendment; and

(h)

Bank shall have received an officers’ certificate from a duly authorized officer of Borrower and each Guarantor certifying, among other things, that attached are true and correct copies of: (i) certificate of the existence of Borrower and each Guarantor, issued by the Secretary of State of the jurisdiction of organization, and each other jurisdiction where such Borrower or Guarantor is required to qualify to transact business, (ii) the Bylaws/Operating Agreement of 

8

Borrower and Guarantor, (iii) resolutions adopted by the Board of Directors/Members of Borrower and each Guarantor authorizing the execution, delivery and performance of this Amendment, and the other documents and certificates to be delivered in connection herewith; and (iv) the names, incumbency and certified signatures of those persons authorized on behalf of Borrower and each Guarantor to sign this Amendment and the other documents and certificates to be delivered in connection herewith.

RELEASE. 

(a)

In consideration of the agreements of Bank contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Borrower and Guarantors, each on behalf of itself and its successors, assigns, and other legal representatives hereby absolutely, unconditionally and irrevocably releases, remises and forever discharges Bank, and its successors and assigns, and its present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other representatives (Bank and all such other Persons being hereinafter referred to collectively as the "Releasees" and individually as a "Releasee"), of and from all demands, actions, causes of action, suits, controversies, damages and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever (individually, a "Claim" and collectively, "Claims") of every name and nature, known or unknown, suspected or unsuspected, both at law and in equity, which Borrower, Guarantor or any of their respective successors, assigns, or other legal representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever that arose or has arisen at any time on or prior to the day and date of this Amendment, for or on account of, or in relation to, or in any way in connection with any of the Loan Agreement, the other Loan Documents or this Amendment or transactions thereunder or related thereto.

(b)

Borrower and Guarantors each understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding that may be instituted, prosecuted or attempted in breach of the provisions of such release.

(c) 

Borrower and Guarantors each agrees that no fact, event, circumstance, evidence or transaction that could now be asserted or that may hereafter be discovered that relate to conduct prior to the date of this Amendment shall affect in any manner the final, absolute and unconditional nature of the release set forth above.

COVENANT NOT TO SUE. Borrower and Guarantors, each on behalf of itself and its successors, assigns, and other legal representatives, hereby absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of each Releasee that it will not sue (at law, in equity, in any regulatory proceeding or otherwise) any Releasee on the basis of any Claim released, remised and discharged by Borrower pursuant to the immediately preceding Section. If Borrower or any Guarantor, or any of their respective successors, assigns or other legal representatives, violates the foregoing covenant, Borrower and Guarantors, each for itself and its successors, assigns and legal representatives, agrees to pay, in addition to such other damages as any Releasee may sustain as a result of such violation, all attorneys’ fees and costs incurred by any Releasee as a result of such violation.

9

COSTS AND EXPENSES. Borrower absolutely and unconditionally agrees to pay to Bank in full within ten (10) days of request for payment expenses which shall at any time be incurred or sustained by Bank as a consequence of or in any way in connection with the preparation, negotiation, execution, or delivery of this Amendment and any agreements prepared, negotiated, executed or delivered in connection with the transactions contemplated hereby, and in connection with any amendment or enforcement of this Amendment.

COUNTERPARTS. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and shall be binding upon all parties, their successors and assigns, and all of which taken together shall constitute one and the same agreement.

AMENDMENT AND RESTATEMENT; NO NOVATION. This Agreement constitutes an amendment and restatement of the Existing Loan Agreement effective from and after the Effective Date. The execution and delivery of this Agreement shall not constitute a novation of any indebtedness or other obligations owing to Bank under the Existing Loan Agreement based on facts or events occurring or existing prior to the execution and delivery of this Agreement. On the Effective Date, the credit facilities described in the Existing Loan Agreement shall be amended, supplemented, modified and restated in their entirety by the facilities described herein, and all loans and other obligations of Borrower outstanding as of such date under the Existing Loan Agreement shall be deemed to be loans and obligations outstanding under the corresponding facilities described herein.

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

			
	[CORPORATE SEAL]

	INUVO, INC. (formerly known as KOWABUNGA! INC.), a Nevada corporation

	 
	 
	 

	 
	By:  

	/s/ Gail L. Babitt

	 
	Name:  Title:

	Gail L. Babitt

Chief Financial Officer

			
	[CORPORATE SEAL]

	EXACT SUPPLEMENTS, LLC, a Florida limited liability company

	 
	 
	 

	 
	By:  

	/s/ Gail L. Babitt

	 
	Name:  Title:

	Gail L. Babitt

Chief Financial Officer

			
	[CORPORATE SEAL]

	CHECKUP MARKETING, INC., a North Carolina

corporation

	 
	 
	 

	 
	By:  

	/s/ Gail L. Babitt

	 
	Name:  Title:

	Gail L. Babitt

Chief Financial Officer

10

			
	[CORPORATE SEAL]

	RIGHTSTUFF INC., a North Carolina corporation

	 
	 
	 

	 
	By:  

	/s/ Gail L. Babitt

	 
	Name:  Title:

	Gail L. Babitt

Chief Financial Officer

			
	[CORPORATE SEAL]

	MARKETSMART ADVERTISING, INC., a North Carolina corporation

	 
	 
	 

	 
	By:  

	/s/ Gail L. Babitt

	 
	Name:  Title:

	Gail L. Babitt

Chief Financial Officer

			
	[CORPORATE SEAL]

	KOWABUNGA MARKETING, INC., a Michigan corporation

	 
	 
	 

	 
	By:  

	/s/ Gail L. Babitt

	 
	Name:  Title:

	Gail L. Babitt

Chief Financial Officer

			
	[CORPORATE SEAL]

	PRIMARYADS, INC., a New Jersey corporation

	 
	 
	 

	 
	By:  

	/s/ Gail L. Babitt

	 
	Name:  Title:

	Gail L. Babitt

Chief Financial Officer

			
	[CORPORATE SEAL]

	REAL ESTATE SCHOOL ONLINE INC., a Florida corporation

	 
	 
	 

	 
	By:  

	/s/ Gail L. Babitt

	 
	Name:  Title:

	Gail L. Babitt

Chief Financial Officer

			
	[CORPORATE SEAL]

	VINTACOM FLORIDA, INC., a Florida corporation

	 
	 
	 

	 
	By:  

	/s/ Gail L. Babitt

	 
	Name:  Title:

	Gail L. Babitt

Chief Financial Officer

			
	[CORPORATE SEAL]

	MOREX MARKETING GROUP, LLC, a New York limited liability company

	 
	 
	 

	 
	By:  

	/s/ Gail L. Babitt

	 
	Name:  Title:

	Gail L. Babitt

Chief Financial Officer

11

			
	[CORPORATE SEAL]

	ILEAD MEDIA LLC, a Delaware limited liability company

	 
	 
	 

	 
	By:  

	/s/ Gail L. Babitt

	 
	Name:  Title:

	Gail L. Babitt

Chief Financial Officer

			
	[CORPORATE SEAL]

	VALIDCLICK, INC., a Missouri corporation

	 
	 
	 

	 
	By:  

	/s/ Gail L. Babitt

	 
	Name:  Title:

	Gail L. Babitt

Chief Financial Officer

			
	 
	WACHOVIA BANK, NATIONAL ASSOCIATION

	 
	 
	 

	 
	By:  

	/s/ Nancy S. Jones

	 
	Name:  Title:

	Nancy S. Jones

Senior Vice President

12

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