Document:

exv10w7

Exhibit 10.7

FINAL

EMPLOYMENT AGREEMENT

     This Employment Agreement (this “Agreement”) is made by and between Oasis Petroleum Inc., a
Delaware corporation (the “Company”), and Taylor L. Reid (“Employee”) effective as of June 18, 2010
(the “Effective Date”).

     WHEREAS, the Company currently employs Employee as its Executive Vice President and Chief
Operating Officer;

     WHEREAS, the Company desires to continue to employ Employee and Employee desires to continue
to be employed by the Company and to commit himself to serve the Company on the terms herein
provided.

     NOW, THERFORE, in consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

     1. Employment. The Company shall continue to employ Employee, and Employee accepts
continued employment with the Company, upon the terms and conditions set forth in this Agreement.
Unless earlier terminated pursuant to Section 4 below, the initial term of this Agreement shall
begin on the Effective Date and end on the third anniversary of the Effective Date (the “Initial
Term”), provided, however, that the term shall be automatically renewed for
successive one-year periods (each such period an “Extension Term”) unless the Company provides a
written notice of non-renewal to the Employee more than 60 days before the end of the Initial Term
or, if applicable, the current Extension Term. The Initial Term together with each Extension Term,
if any, shall be the “Term.” If the Company gives timely notice of non-renewal, then Employee’s
employment shall end on the last day of the Term. A termination of Employee’s employment and the
Term by reason of notice of non-renewal given by the Company shall be considered a termination
without Cause for purposes of Section 4.

     2. Position and Duties; Exclusive Compensation and Services.

          (a) During the Term, Employee shall hold the title of Executive Vice President and Chief
Operating Officer. The Company and Employee agree that the Employee shall have duties and
responsibilities consistent with the position set forth above in a company the size and of the
nature of the Company, and such other duties and authority that are assigned to Employee from time
to time by the Company’s Board of Directors (the “Board”), or such other officer of the Company as
shall be designated by the Board. Employee shall report to the Board, or to such other officer of
the Company as shall be designated by the Board. All services that Employee may render to the
Company or any of its Affiliates in any capacity during the Term shall be deemed to be services
required by this Agreement and the consideration for such services is that provided for in this
Agreement.

          (b) During the Term, Employee agrees to devote his full business time and attention to the
business and affairs of the Company, unless Employee notifies the Board in advance of Employee’s
intent to engage in other paid work and receives the Board’s express
written consent to do so. Notwithstanding the foregoing, so long as such activities do not
conflict with the Company’s interests, interfere with Employee’s duties and responsibilities or

 

 

violate Employee’s obligations hereunder, Employee will not be prohibited from (i) managing his
personal, financial, and legal affairs; (ii) engaging in professional, charitable or community
activities or organizations or (iii) serving on the boards of directors, or advisory boards of
directors, of not-for-profit charitable organizations, not-for-profit professional organizations,
or for-profit corporations, so long as Employee secures the Board’s express written consent for
Employee to serve on such boards prior to undertaking such service.

          (c) During the Term, Employee agrees to comply with and, where applicable, enforce the
policies of the Company, including without limitation such policies with respect to legal
compliance, conflicts of interest, confidentiality, professional conduct and business ethics as are
from time to time in effect. Employee shall cooperate with any investigation or inquiry authorized
by the Board or conducted by a governmental authority related to the Company’s or an Affiliate’s
business or the Employee’s conduct related to the Company or an Affiliate.

     3. Compensation.

          (a) Base Salary. During the Term, Employee’s base salary shall be $275,000 per annum,
which salary may be increased (but not decreased without the Employee’s written consent) by the
Board (or a designated committee thereof) in its discretion (the “Base Salary”), which Base Salary
shall be payable in regular installments in accordance with the Company’s general payroll
practices.

          (b) Annual Bonus. During the Term, Employee shall be eligible to receive an annual
performance bonus payment (a “Performance Bonus”) for each calendar year pursuant to an annual cash
performance bonus program (the “Bonus Plan”). Pursuant to the terms of the Bonus Plan, each annual
Performance Bonus shall be payable based on the achievement of reasonable performance targets
established in accordance herewith, and for each calendar year Employee’s target Performance Bonus
shall be equal to 60% of Employee’s annual Base Salary in effect on the last day of the applicable
calendar year (the “Target Performance Bonus”). For each calendar year, the Board and the Employee
will mutually determine and will establish in writing (i) the applicable performance targets, (ii)
the percentage of annual Base Salary payable to Employee if some lesser or greater percentage of
the target annual performance is achieved, and (iii) such other applicable terms and conditions of
the Bonus Plan necessary to satisfy the requirements of Section 409A of the Internal Revenue Code
of 1986, as amended (the “Code”). Except as otherwise provided in Section 5, any Performance Bonus
that Employee becomes entitled to receive (as a result of the applicable performance targets
ultimately being achieved) will be deemed earned on the last day of the calendar year to which such
bonus relates and will be paid to Employee as soon as administratively feasible following
preparation of the Company’s unaudited financial statements for the applicable calendar year, but
in no event later than March 15 of the calendar year following the calendar year to which such
Performance Bonus relates.

          (c) Employee Benefits. Employee will be entitled during the Term to receive such
welfare benefits and other fringe benefits (including, but not limited to vacation, financial and
tax planning assistance, medical, dental, life insurance, 401(k) and other employee benefits
and perquisites, such as club membership dues) as the Company may offer from time to time to
similarly situated executive level employees, subject to applicable eligibility requirements. The

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Company shall not, however, by reason of this Section 3(c), be obligated to refrain from changing,
amending, or discontinuing any such benefit plan or program, on a prospective basis, so long as any
such changes are similarly applicable to similarly situated employees of the Company.

          (d) Business Expenses. The Company shall reimburse Employee for all reasonable
expenses incurred by him in the course of performing his duties during the Term to the extent
consistent with the Company’s written policies in effect from time to time with respect to travel,
entertainment and other business expenses, subject to the Company’s requirements with respect to
reporting and documentation of such expenses (“Business Expenses”). Notwithstanding any provision
in this Agreement to the contrary, the amount of Business Expenses for which Employee is eligible
to receive reimbursement during any calendar year shall not affect the amount of Business Expenses
for which Employee is eligible to receive reimbursement during any other calendar year within the
Term. Reimbursement of Business Expenses under this Section 3(d) shall generally be made within
two weeks of Employee’s submission of expense reports pursuant to Company policy, but in no event
later than March 15 of the calendar year following the calendar year in which the expense was
incurred. Employee is not permitted to receive a payment or other benefit in lieu of reimbursement
under this Section 3(d).

          (e) Long Term Incentive Compensation. Employee may, as determined by the Board (or a
designated committee thereof) in its sole discretion, periodically receive grants of stock options
or other equity or non-equity related awards pursuant to the Company’s long-term incentive plan(s),
subject to the terms and conditions thereof. Any grants previously awarded to Employee pursuant to
the Company’s long-term incentive plan(s) that are outstanding on the Effective Date hereof shall
continue to be governed by the terms and conditions of such plan(s).

     4. Termination of Employment. Unless otherwise agreed to in writing by the Company
and Employee, Employee’s employment hereunder may be terminated under the following circumstances:

          (a) Death. Employee’s employment hereunder shall terminate upon his death.

          (b) Inability to Perform. Employee’s employment may be terminated by the Company if
Employee has incurred a Disability. For purposes of this Agreement, “Disability” means Employee’s
inability to perform the essential functions of Employee’s position with or without reasonable
accommodation, if required by law, due to physical or mental impairment. The existence of any such
Disability shall be certified by a physician acceptable to both the Company and Employee. If the
parties are not able to agree on the choice of a physician, each party shall select a physician
who, in turn, shall select a third physician to render such certification. In no event will
Employee’s employment be terminated as a result of Disability pursuant to this Section 4(b) until
at least 180 consecutive days of paid leave have elapsed and the Company has provided Employee with
at least thirty days’ advance written notice of termination. During the 180 days of paid leave,
the Company may offset the payment of Employee’s Base Salary then in effect by the amount of any
short-term or long-term disability benefits Employee receives pursuant to Section 3(c) above.

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          (c) Termination by the Company. The Company may terminate Employee’s employment with
or without Cause. For purposes of this Agreement, the term “Cause” means Employee (i) has been
convicted of a misdemeanor involving moral turpitude or a felony, (ii) has engaged in grossly
negligent or willful misconduct in the performance of his duties for the Company, which actions
have had a material detrimental effect on the Company, (iii) has breached any material provision of
this Agreement, (iv) has engaged in conduct which is materially injurious to the Company
(including, without limitation, misuse or misappropriation of the Company’s funds or other
property), or (v) has committed an act of fraud, provided, however, that the Company must give
Employee written notice of the acts or omissions constituting Cause within 60 days after an officer
of the Company (other than Employee) first learns of the occurrence of such event, and no
termination shall be for Cause under clauses (ii), (iii), (iv), or (v) contained in this Section
4(c) unless and until Employee fails to cure such acts or omissions within 30 days following
receipt of such written notice.

          (d) Termination by Employee. Employee may, upon giving the Company no less than 30
days’ advance written notice, terminate Employee’s employment without Good Reason or for Good
Reason. For purposes of this Agreement, the term “Good Reason” shall mean, without the express
written consent of Employee, the occurrence of one of the following arising on or after the
Effective Date, as determined in a manner consistent with Treasury Regulation § 1.409A-1(n)(2)(ii):
(i) a material reduction in Employee’s base compensation, (ii) a material diminution in Employee’s
authority, duties or responsibilities, (iii) a permanent relocation in the geographic location at
which Employee must perform services to a location more than 50 miles from the location at which
Employee normally performed services immediately before the relocation; (iv) a material reduction
in the authority, duties, or responsibilities of the person to whom Employee reports; or (v) any
other action or inaction that constitutes a material breach by the Company of this Agreement.
Neither a transfer of employment among the Company and any of its Affiliates nor the Company or an
Affiliate entering into a co-employer relationship with a personnel services organization
constitutes Good Reason. In the case of Employee’s allegation of Good Reason, (A) Employee shall
provide notice to the Company of the event alleged to constitute Good Reason within 60 days after
the occurrence of such event, and (B) the Company shall have the opportunity to remedy the alleged
Good Reason event within 30 days from receipt of notice of such allegation. If not remedied within
that 30-day period, Employee may submit a Notice of Termination pursuant to Section 5(e), provided
that the Notice of Termination must be given no later than 100 days after the expiration of such 30
day period; otherwise, Employee is deemed to have accepted such event, or the Company’s remedy of
such event, that may have given rise to the existence of Good Reason; provided, however, such
acceptance shall be limited to the occurrence of such event and shall not waive Employee’s right to
claim Good Reason with respect to future similar events.

          (e) Investigation; Suspension. The Company may suspend Employee with pay pending an
investigation authorized by the Company or a governmental authority or a determination by the
Company whether Employee has engaged in acts or omissions constituting Cause, and such paid
suspension shall not constitute Good Reason or a termination of this Agreement or Employee’s
employment.

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     5. Compensation Upon Termination.

          (a) For Cause or Without Good Reason. In the event Employee’s employment is
terminated by the Company for Cause or by the Employee without Good Reason, the Company shall pay
to Employee (i) any unpaid portion of the Base Salary through the Date of Termination at the rate
then in effect, (ii) any unpaid Performance Bonus earned in the calendar year prior to the Date of
Termination, (iii) unreimbursed Business Expenses through the Date of Termination, and (iv) such
employee benefits, if any, as to which Employee may be entitled pursuant to the terms governing
such benefits. The amounts, if any, set forth in (i), (ii), (iii), and (iv) shall be collectively
referred to herein as the “Accrued Payments”. The Accrued Payments shall be paid at the time and
in the manner required by applicable law but in no event later than 30 business days after the Date
of Termination, with the exception of (ii), which shall be paid at the time provided in and in
accordance with Section 3(b).

          (b) Without Cause or For Good Reason. In addition to the Accrued Payments, in the
event Employee’s employment is terminated by the Company without Cause or by Employee for Good
Reason and such termination constitutes a “separation from service” (as defined in Section 5(i)),
the Company shall pay to Employee a pro-rata portion of the Performance Bonus that Employee would
have been entitled to receive pursuant to Section 3(b) hereof for the calendar year of termination,
multiplied by a fraction, the numerator of which is the number of days during which Employee was
employed by the Company in the calendar year of Employee’s termination, and the denominator of
which is 365 (the “Pro-Rata Bonus”), payable as soon as administratively feasible following
preparation of the Company’s unaudited financial statements for the applicable calendar year, but
in no event later than March 15 of the calendar year following the calendar year to which such
Performance Bonus relates. In addition, the Company shall provide Employee with the following (the
"Severance Package”), contingent upon Employee satisfying the Severance Conditions, as defined
below:

          (i) Payment of an amount (the “Separation Payment”) equal to the greater of either (1)
the aggregate amount of Base Salary as of the Date of Termination or, if greater, before any
reduction not consented to by Employee, that would have been paid to Employee if he had
continued performing services pursuant to this Agreement for the remainder of the
then-current Term or (2) the equivalent of twelve months of Employee’s Base Salary as of the
Date of Termination or, if greater, before any reduction not consented to by Employee,
payable at the time and in the manner provided in this Section 5(b) below; plus

          (ii) Pay or reimburse on a monthly basis the premiums required to continue Employee’s
group health care coverage for a period of 18 months following Employee’s Date of
Termination, under the applicable provisions of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”), provided that Employee elects to continue and remains
eligible for these benefits under COBRA; plus

          (iii) (A) if the Date of Termination occurs during the Initial Term, an amount equal to
the aggregate of each Target Performance Bonus that Employee would
have been eligible to receive if he had continued performing services pursuant to this
Agreement for the remainder of the then-current Term, calculated based on Employee’s

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Base Salary in effect on the Date of Termination or, if greater, before any reduction not
consented to by Employee or (B) if the Date of Termination occurs during any Extension Term,
an amount equal to 60% of the aggregate amount of Base Salary as of the Date of Termination
or, if greater, before any reduction not consented to by Employee, that would have been paid
to Employee if he had continued performing services pursuant to this Agreement for the
remainder of the then-current Term, minus any Pro-Rata Bonus received by the Employee
pursuant to section 5(b) above, payable as soon as administratively feasible following
preparation of the Company’s unaudited financial statements for the applicable calendar
year, but in no event later than March 15 of the calendar year following the calendar year
to which such Target Performance Bonus relates; plus

          (iv) immediate vesting of all unvested equity awards under the Company’s 2010 Long Term
Incentive Plan or other plans of the Company as of the Date of Termination, regardless of
any other established vesting schedule, such that all remaining unvested equity awards shall
be fully vested on the Date of Termination.

To receive the Severance Package, Employee must execute and return to the Company on or prior to
the 60th day following the Date of Termination a waiver and release of claims agreement in the
Company’s customary form, which shall exclude claims for indemnification, claims for coverage under
officer and director policies, and claims as a stockholder of the Company and which may be amended
by the Company to reflect changes in applicable laws and regulations (the “Release”), and where
applicable, not timely revoke such Release (the “Severance Conditions”).

     The Separation Payment shall be paid as follows:

          (A) If the Separation Payment is greater than the Section 409A Exempt Amount (defined below),
then –

               (1) the Section 409A Exempt Amount shall be paid in substantially equal monthly installments
over a period of twelve (12) months beginning on the first payroll date which occurs on or after
the 60th day following the Date of Termination, and

               (2) the excess of the Separation Payment over the Section 409A Exempt Amount shall be paid in
a single lump sum no later than 60 days after the Date of Termination.

For purposes of this Agreement, the “Section 409A Exempt Amount” is two times the lesser of (x)
Employee’s annualized compensation based upon the annual rate of pay for services provided to the
Company for the calendar year preceding the calendar year in which Employee has a “separation from
service” (as defined in Section 5(i)) with the Company (adjusted for any increase during that year
that was expected to continue indefinitely if Employee had not separated from service) or (y) the
maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17)
of the Code for the year in which Employee has a separation from service.

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          (B) If the Separation Payment is equal to or less than the Section 409A Exempt Amount, then
the Separation Payment shall be paid in equal monthly installments over a period of months (limited
to 24 such months) determined by dividing (x) the Separation Payment by (y) the Employee’s Monthly
Base Salary as of the Date of Termination, commencing in payment on the first day of the third
month following the Date of Termination, provided that the Date of Termination constitutes a
“separation from service” (as defined in Section 5(i)).

          (c) Death or Disability. In the event Employee’s employment terminates by reason of
his death or Disability, Employee (or his estate) shall be entitled to receive:

          (i) the Accrued Payments;

          (ii) a Pro-Rata Bonus for the calendar year of termination, payable as soon as
administratively feasible following preparation of the Company’s unaudited financial
statements for the applicable calendar year, but in no event later than March 15 of the
calendar year following the calendar year to which such Performance Bonus relates; and

          (iii) provided Employee satisfies the Severance Conditions, (1) an amount equivalent to
twelve (12) months of Employee’s Base Salary as of the Date of Termination, or, if greater,
before any reduction not consented to by Employee, payable in a lump sum within 60 days of
the Date of Termination; and (2) pay or reimburse on a monthly basis the premiums required
to continue Employee’s group health care coverage for a period of 18 months following
Employee’s Date of Termination, under the applicable provisions of COBRA, provided that
Employee or his dependents, as applicable, elect to continue and remain eligible for these
benefits under COBRA.

          (d) Exclusive Compensation and Benefits. The compensation and benefits described in
this Section 5 or in Section 6 as applicable, along with the associated terms for payment,
constitute all of the Company’s obligations to Employee with respect to the termination of
Employee’s employment. Nothing in this Agreement, however, is intended to limit any earned, vested
benefits (other than any entitlement to severance or separation pay, if any) that Employee may have
under the applicable provisions of any benefit plan of the Company in which Employee is
participating on the Date of Termination, any rights Employee may have to continue or convert
coverage under certain employee benefit plans in accordance with the terms of those plans and
applicable law, or any rights Employee may have under long-term incentive or equity compensation
plan.

          (e) Notice of Termination. Any termination of Employee’s employment occurring in
accordance with the terms of this Section 5 (other than by reason of Employee’s death) shall be
communicated to the other party by written notice that (i) indicates the specific termination
provisions of this Agreement relied upon, (ii) sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for the termination, and (iii) specifies the Date of
Termination (a “Notice of Termination”), and that is delivered to the other party in accordance
with Section 9(i) of this Agreement.

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          (f) Date of Termination. For purposes of this Agreement, “Date of Termination” means
the date of receipt of the Notice of Termination or any later date specified therein, as the case
may be; provided, however that if Employee’s employment is terminated by reason of his death, the
Date of Termination shall be the date of death of Employee.

          (g) Deemed Resignations. Unless otherwise agreed to in writing by the Company and
Employee prior to termination of Employee’s employment, any termination of Employee’s employment
shall constitute an automatic resignation of Employee from all positions he then holds as an
employee, officer, director, manager or other service provider of the Company and each Affiliate of
the Company.

          (h) Offset. Employee agrees that the Company may set off against, and Employee
authorizes the Company to deduct from, any payments due to Employee, or to his estate, heirs, legal
representatives, or successors, any amounts which may be due and owing to the Company or an
Affiliate by Employee, whether arising under this Agreement or otherwise; provided that no such
offset may be made with respect to amounts payable that are subject to the requirements of Section
409A of the Code unless the offset would not result in a violation of the requirements of Section
409A of the Code.

          (i) Application of Section 409A. The amounts payable pursuant to Sections 5 and 6 of
this Agreement are intended to comply with the short-term deferral exception and/or separation pay
exception to Section 409A of the Code. Notwithstanding the foregoing, no amount payable pursuant
to this Agreement which constitutes a “deferral of compensation” within the meaning of the Treasury
Regulations issued pursuant to Section 409A of the Code (the “Section 409A Regulations”) shall be
paid unless and until Employee has incurred a “separation from service” within the meaning of the
Section 409A Regulations. Furthermore, to the extent that Employee is a “specified employee”
within the meaning of the Section 409A Regulations as of the date of Employee’s separation from
service, no amount that constitutes a deferral of compensation which is payable on account of
Employee’s separation from service shall be paid to Employee before the date (the “Delayed Payment
Date”) which is first day of the seventh month after the date of Employee’s separation from service
or, if earlier, the date of Employee’s death following such separation from service. All such
amounts that would, but for this Section 5(i), become payable prior to the Delayed Payment Date
will be accumulated and paid on the Delayed Payment Date. No interest will be paid by the Company
with respect to any such delayed payments. For purposes of Section 409A of the Code, each payment
or amount due under this Agreement shall be considered a separate payment, and Employee’s
entitlement to a series of payments under this Agreement is to be treated as an entitlement to a
series of separate payments.

     6. Change in Control.

          (a) Upon the occurrence of a Change in Control (as defined in the Company’s 2010 Long Term
Incentive Plan) during the Term, all unvested equity awards under the Company’s 2010 Long Term
Incentive Plan or other plans of the Company as of such date shall become immediately vested,
regardless of any other established vesting schedule, such that all
remaining unvested equity awards shall be fully vested on the date of such Change in Control.
In addition, if a Change in Control occurs during the Term and (x) Employee is terminated by the

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Company for any reason other than for Cause within one year following such Change in Control or (y)
Employee terminates employment for Good Reason within one year following such Change in Control,
and any such termination constitutes a separation from service (as defined in Section 5(i)), then,
the Company shall:

     (i) Pay Employee within 60 days following the Date of Termination, a lump sum payment
equal to two (2) times the sum of (i) Employee’s annual rate of Base Salary as of the Date
of Termination or, if greater, before any reduction not consented to by Employee, plus (ii)
(A) if the Date of Termination occurs during the Initial Term, the maximum Performance Bonus
Employee is eligible to receive for the calendar year in which the Change in Control occurs
or (B) if the Date of Termination occurs during any Extension Term, Employee’s Target
Performance Bonus, calculated based on Employee’s Base Salary as of the Date of Termination
or, if greater, before any reduction not consented to by Employee; plus

     (ii) pay or reimburse on a monthly basis the premiums required to continue Employee’s
group health care coverage for a period of 18 months following Employee’s separation date,
under COBRA, provided that Employee elects to continue and remains eligible for these
benefits under COBRA.

provided, that, nothing in this Section 6 shall relieve the Company or any successor-in-interest
thereof of its obligation to continue, following any Change in Control, to provide Employee with
the compensation due pursuant to Section 3 of this Agreement or to otherwise comply with its
obligations hereunder in the event Employee’s service continues pursuant to this Agreement
following the occurrence of such Change in Control; provided, further, that, in the event Employee
is terminated simultaneously with the occurrence of a Change in Control or within one year thereof,
Employee shall be entitled to receive the greater of the payments or benefits provided under
Section 5(b) of this Agreement and this Section 6(a), which receipt shall be conditioned upon
Employee’s satisfaction of the Severance Conditions.

          (b) In the event it shall be determined that any payment, benefit or distribution (or
combination thereof) by the Company or any of its wholly-owned subsidiaries or any other affiliate
(as that term is used in Treas. Reg. § 1.280G-1, Q/A-46) to or for the benefit of Employee (whether
paid or payable or distributed or distributable pursuant to the terms of this Agreement or
otherwise) (a “Payment”) is subject to the excise tax imposed by Section 4999 of the Code, or any
interest and penalties are incurred by Employee with respect to such excise tax (such excise tax,
together with any such interest and penalties, hereinafter collectively referred to as the “Excise
Tax”), Employee shall be entitled to receive, in accordance with Exhibit A hereof, an
additional payment (a “Gross-Up Payment”) in an amount such that after payment by Employee of all
taxes (including any interest or penalties imposed with respect to such taxes), including, without
limitation, any federal, state and local income taxes and employment taxes (and any interest and
penalties imposed with respect thereto) and the Excise Tax imposed upon the Gross-Up Payment,
Employee retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the
Payments.

          Notwithstanding the foregoing provisions of this Section 6(b), if it is determined that
Employee is entitled to a Gross-Up Payment, but that the value of the Parachute Payments

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(as defined below) does not exceed 110% of the Safe Harbor Amount (as defined below), then no
Gross-Up Payment shall be made to Employee and the Payments, in the aggregate, will be reduced to
the Safe Harbor Amount. The reduction of the Payments to the Safe Harbor Amount will be made in
the following order:

     (i) First, by reducing the cash amounts of Parachute Payments that would not constitute
deferred compensation (within the meaning of Section 409A of the Code) subject to Section
409A of the Code (with the Payments subject to such reduction to be determined by Employee),
to the extent necessary to decrease the Payments that would otherwise constitute Parachute
Payments to the Safe Harbor Amount.

     (ii) Next, if after the reduction to zero of the amounts described in paragraph (i)
above, the remaining scheduled Parachute Payments are greater than the Safe Harbor Amount,
then by reducing the cash amounts of Payments that constitute deferred compensation (within
the meaning of Section 409A of the Code) subject to Section 409A of the Code, with the
reductions to be applied first to the Payments scheduled for the latest distribution date,
and then applied to distributions scheduled for progressively earlier distribution dates, to
the extent necessary to decrease the Payments that would otherwise constitute Parachute
Payments to the Safe Harbor Amount.

     (iii) Next, if after the reduction to zero of the amounts described in paragraphs (i)
and (ii) above, the remaining scheduled Parachute Payments are greater than the Safe Harbor
Amount, then, by reducing any of the remaining scheduled Payments, in an order to be
determined by the Company, to the extent necessary to decrease the Payments that would
otherwise constitute Parachute Payments to the Safe Harbor Amount.

The term “Parachute Payment” is the portion of the Payments that would be treated as parachute
payments under Section 280G of the Code. The “Safe Harbor Amount” is the maximum amount of
Payments that could be made to Employee without giving rise to any Excise Tax.

     7. Protection of Information.

          (a) Disclosure to and Property of the Company. All information, trade secrets,
designs, ideas, concepts, improvements, product developments, discoveries and inventions, whether
patentable or not, that are conceived, made, developed or acquired by Employee, individually or in
conjunction with others, during the term of his employment (whether during business hours or
otherwise and whether on the Company’s premises or otherwise) that relate to the Company’s or any
of its wholly-owned subsidiaries’ business, products or services and all writings or materials of
any type embodying any such matters (collectively, “Confidential Information”) shall be disclosed
to the Company, and are and shall be the sole and exclusive property of the Company. Confidential
Information does not, however, include any information that is available to the public other than
as a result of any unauthorized act of Employee.

          (b) No Unauthorized Use or Disclosure. Employee agrees that Employee will preserve
and protect the confidentiality of all Confidential Information and work product of the Company and
its wholly-owned subsidiaries, and will not, at any time during or after the

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termination of Employee’s employment with the Company, make any unauthorized disclosure of,
and shall not remove from the Company premises, and will use reasonable efforts to prevent the
removal from the Company premises of, Confidential Information or work product of the Company or
its wholly-owned subsidiaries, or make any use thereof, in each case, except in the carrying out of
Employee’s responsibilities hereunder. Employee shall have no obligation hereunder to keep
confidential any Confidential Information if and to the extent disclosure thereof is specifically
required by law; provided, however, that in the event disclosure is required by applicable law and
Employee is making such disclosure, Employee shall provide the Company with prompt notice of such
requirement, and shall use commercially reasonable efforts to give such notice prior to making any
disclosure so that the Company may seek an appropriate protective order.

          (c) Remedies. Employee acknowledges that money damages would not be a sufficient
remedy for any breach of this Section 7 by Employee, and the Company or its wholly-owned
subsidiaries shall be entitled to enforce the provisions of this Section 7 by obtaining an order
for specific performance and/or injunctive relief as remedies for any such breach or threatened
breach, including but not limited to an order terminating payments owing to Employee under this
Agreement. Such remedies shall not be deemed the exclusive remedies for a breach of this Section
7, but shall be in addition to all remedies available at law or in equity to the Company, including
the recovery of damages from Employee and remedies available to the Company pursuant to other
agreements with Employee.

          (d) No Prohibition. Nothing in this Section 7 shall be construed as prohibiting
Employee, following the termination of the Prohibited Period (as defined below), from being
employed by any Competing Business (as defined below) or engaging in any Prohibited Activity (as
defined below); provided, that during such employment or engagement Employee complies with his
obligations under this Section 7.

     8. Non-Competition and Non-Solicitation.

          (a) Definitions. As used in this Agreement, the following terms shall have the
following meanings:

          (i) “Affiliate” shall mean an individual or entity that, directly or indirectly through
one or more intermediaries, controls or is controlled by or is under common control with a
specified individual or entity.

          (ii) “Competing Business” means any business, individual, partnership, firm,
corporation or other entity engaged in oil and gas exploration and production.

          (iii) “Prohibited Activity” means any service or activity on behalf of a Competing
Business that involves the planning, management, supervision, or providing of services that
are substantially similar to those services Employee provided to the Company within the last
12 months of Employee’s employment with the Company.

          (iv) “Prohibited Period” means the Term and the 12 month period following the
termination of Employee’s employment with the Company.

11

 

          (v) “Restricted Area” means any area within a six (6) mile radius of the boundary of
any existing leasehold or other property of the Company or its Affiliates, either during the
Term or as of the Employee’s Date of Termination. The parties stipulate that the forgoing
is a reasonable area restriction because the area identified is the market area with respect
to which Employee will help the Company provide its products and services, help analyze,
and/or receive access to Confidential Information.

          (b) Protective Covenants and Restrictions. Acknowledging delivery of Confidential
Information and that such Confidential Information is vital to Employee’s continued performance of
services to the Company and acknowledging that the Company is delivering and will deliver the
Confidential Information partly in reliance on the protective covenants and restrictions set forth
herein, Employee agrees that the following protective covenants are reasonable and necessary for
the protection of the Company’s legitimate business interests, do not create any undue hardship on
Employee, and are not contrary to the public interest:

          (i) Non-compete. Employee expressly covenants and agrees that, during the
Prohibited Period, he will not engage in any Prohibited Activity in the Restricted Area.
Notwithstanding the foregoing, in the event Employee resigns his employment or is
terminated, for any reason, on or after a Change in Control, Employee shall have no
obligations to comply with this Section 8(b)(i).

          (ii) Non-solicitation. Employee further expressly covenants and agrees that
during the Prohibited Period, he will not (A) solicit any individual who, on the Date of
Termination, is an employee of the Company, to leave such employment, provided that Employee
will not be deemed to have violated this provision if employees of the Company directly
contact Employee regarding employment or respond to general advertisements for employment,
or (B) solicit any client or customer of the Company, with whom Employee has had direct
contact with, to terminate or modify its relationship with Company that exists on the Date
of Termination. Notwithstanding the foregoing, in the event Employee resigns his employment
or is terminated, for any reason, on or after a Change in Control, Employee shall have no
obligations to comply with this Section 8(b)(ii).

          (c) Permitted Ownership. Notwithstanding any of the foregoing, Employee shall not be
prohibited from owning 2.5% or less of the outstanding equity securities of any entity whose equity
securities are listed on a national securities exchange or publicly traded in any over-the-counter
market, provided that neither Employee nor any of his Affiliates, together or alone, has the power,
directly or indirectly, to control or direct or is involved in the management or affairs of any
such corporation that is a Competing Business.

          (d) Reasonableness. Employee and the Company agree and acknowledge that the
limitations as to time, geographical area and scope of activity to be restrained as set forth in
this Section 8 are the result of arm’s-length bargaining, are fair and reasonable, and do not
impose any greater restraint than is necessary to protect the legitimate business interests of the
Company in light of (i) the nature and geographic scope of the Company’s operations; (ii)
Employee’s level of control over and contact with the Company’s business in the Restricted

12

 

Area; (iii) the fact that the Company’s business is conducted throughout the Restricted Area; and
(iv) the amount of compensation that Employee is receiving in connection with the performance of
his duties hereunder.

          (e) Relief and Enforcement. Employee hereby represents to the Company that he has
read and understands, and agrees to be bound by, the terms of this Section 8. It is the desire and
intent of the parties hereto that the provisions of this Section 8 be enforced to the fullest
extent permitted under applicable law, whether now or hereafter in effect. However, to the extent
that any part of this Section 8 may be found invalid, illegal or unenforceable for any reason, it
is intended that such part shall be enforceable to the extent that a court of competent
jurisdiction shall determine that such part, if more limited in scope, would have been enforceable,
and such part shall be deemed to have been so written and the remaining parts shall as written be
effective and enforceable in all events. Employee and the Company further agree and acknowledge
that, in the event of a breach or threatened breach of any of the provisions of this Section 8, the
Company shall be entitled to immediate injunctive relief, as any such breach would cause the
Company irreparable injury for which it would have no adequate remedy at law. Nothing herein shall
be construed so as to prohibit the Company from pursuing any other remedies available to it
hereunder, at law or in equity, for any such breach or threatened breach.

     9. General Provisions.

          (a) Amendments and Waiver. Other than pursuant to Section 4(d), (i) the terms and
provisions of this Agreement may not be modified or amended, nor may any of the provisions hereof
be waived, temporarily or permanently, unless such modification or amendment is agreed to in
writing and signed by Employee and by a duly authorized officer of the Company, and such waiver is
set out in writing and signed by the party to be bound by waiver, and (ii) the failure of any party
to enforce any of the provisions of this Agreement shall in no way be construed as a waiver of such
provisions and shall not affect the right of such party thereafter to enforce each and every
provision of this Agreement in accordance with its terms, and a waiver on one occasion shall not be
deemed to be a waiver of the same or any other type of breach on a future occasion.

          (b) Withholding and Deductions. With respect to any payment to be made to Employee,
the Company shall deduct, where applicable, any amounts authorized by Employee, and shall withhold
and report all amounts required to be withheld and reported by applicable law.

          (c) Mitigation. Employee shall not be required to mitigate the amount of any payment
provided for in this Agreement by seeking other employment or otherwise, nor shall the amount of
any payment provided for in this Agreement be reduced by any compensation earned by Employee as the
result of employment by another employer after the Date of Termination, or otherwise.

          (d) Survival. The termination of Employee’s employment shall not impair the rights or
obligations of any party that have accrued prior to such termination or which by their nature or
terms survive termination of the Term, including without limitation the Company’s obligations under
Sections 5 and 6 and Employee’s obligations under Sections 7 and 8.

13

 

          (e) No Obligation to Pay. With regard to any payment due to Employee under this
Agreement, it shall not be a breach of any provision of this Agreement for the Company to fail to
make such payment to Employee if by doing so, the Company violates applicable law.

          (f) Validity. The invalidity or unenforceability of any provision or provisions of
this Agreement shall not affect the validity or enforceability of any other provision of this
Agreement, which shall remain in full force and effect.

          (g) Entire Agreement. This Agreement constitutes the entire agreement of the parties
with regard to the subject matter hereof, and contains all the covenants, promises,
representations, warranties and agreements between the parties with respect to employment of
Employee by the Company. Without limiting the scope of the preceding sentence, all understandings
and agreements preceding the date of execution of this Agreement and relating to the subject matter
hereof are hereby null and void and of no further force and effect.

          (h) Successors and Assigns; Binding Agreement. This Agreement shall bind and inure to
the benefit of and be enforceable by the parties hereto and their respective successors, permitted
assigns, heirs and personal representatives and estates, as the case may be. Neither this
Agreement nor any right or obligation hereunder of any party may be assigned or delegated without
the prior written consent of the other party hereto; provided, however, that the Company may assign
this Agreement to any of its Affiliates and Employee may direct payment of any benefits that will
accrue upon death. Employee shall not have any right to pledge, hypothecate, anticipate, or in any
way create a lien upon any payments or other benefits provided under this Agreement; and no
benefits payable under this Agreement shall be assignable in anticipation of payment either by
voluntary or involuntary acts, or by operation of law, except by will or pursuant to the laws of
descent and distribution. This Agreement shall not confer any rights or remedies upon any person
or legal entity other than the parties hereto and their respective successors and permitted
assigns.

          (i) Notices. For purposes of this Agreement, notices and all other communications
provided for herein shall be in writing and shall be deemed to have been duly given (i) when
received, if delivered personally or by courier, (ii) on the date receipt is acknowledged, if
delivered by certified mail, postage prepaid, return receipt requested, or (iii) one day after
transmission, if sent by facsimile transmission with confirmation of transmission, as follows:

	 	 	 	 	 	 	 

	 

	 	If to Employee, at:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	If to the Company, at:
	 	Oasis Petroleum Inc.	 	 
	 

	 	 	 	Attn:                                         	 	 
	 

	 	 	 	1001 Fannin Street, Suite 202	 	 
	 

	 	 	 	Houston, Texas 77002	 	 

14

 

or to such other address as either party may furnish to the other in writing in accordance
herewith, except that notices or changes of address shall be effective only upon receipt.

          (j) Construction. Where specific language is used to clarify by example a general
statement contained herein, such specific language shall not be deemed to modify, limit or restrict
in any manner the construction of the general statement to which it relates. The language used in
this Agreement shall be deemed to be the language chosen by the parties to express their mutual
intent, and no rule of strict construction shall be applied against any party. The section
headings in this Agreement are for convenience of reference only, and they form no part of this
Agreement and shall not affect its construction.

          (k) Assistance in Litigation. During the Term and for a period of four years
following the Date of Termination, Employee shall, if given at least two (2) weeks notice, furnish
such information and proper assistance to the Company or any of its Affiliates as may reasonably be
required by the Company in connection with any litigation, investigations, arbitrations, and/or any
other fact-finding or adjudicative proceedings involving the Company or any of its Affiliates,
provided that if such assistance is requested after the Date of Termination: (i) such assistance
not unreasonably interfere with Employee’s employment or other activities or endeavors; and (ii)
such assistance not exceed forty hours in any twelve month period, unless otherwise agreed in
writing by the parties. This obligation shall include, without limitation, to meet with counsel
for the Company or any of its Affiliates and provide truthful testimony at the request of the
Company or as otherwise required by law or valid legal process. The Company shall reimburse
Employee for all reasonable out-of-pocket expenses incurred by Employee and approved in advance by
the Company in rendering such assistance (such as travel, parking, and meals but not attorney’s
fees). In addition, following the Date of Termination, the Company shall pay the Employee $300/hr
for his time in providing information and assistance in accordance with this Section 9(k).

          (l) Governing Law; Construction; Venue; Jury-Trial Waiver. The parties (i) agree that
this Agreement is governed by and shall be construed and enforced in accordance with Texas law,
excluding its choice-of-law principles, except where federal law may preempt the application of
state law; (ii) agree that this Agreement is to be construed as a whole, according to its fair
meaning, and not strictly for or against any of the parties; (iii) submit and consent to the
exclusive jurisdiction, including removal jurisdiction, of the state and federal courts located in
Harris County, Texas (or the county where the Company’s principal executive offices are located if
different) for any action or proceeding relating to this Agreement or Employee’s employment; (iv)
waive any objection to such venue; (v) agree that any judgment in any such action or proceeding may
be enforced in other jurisdictions; and (vi) irrevocably waive the right to trial by jury and agree
not to ask for a jury in any such proceeding.

          (m) Mutual Contribution. The parties to this Agreement have mutually contributed to
its drafting. Consequently, no provision of this Agreement shall be construed against any party on
the grounds that such party drafted the provision or caused it to be drafted.

15

 

     IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement as of the
Effective Date.

	 	 	 	 	 
	 	OASIS PETROLEUM INC.

 	 
	 	By:  	/s/ Thomas B. Nusz
 	 
	 	 	Name:  	Thomas B. Nusz 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	EMPLOYEE:

 	 
	 	/s/ Taylor L. Reid
 	 
	 	Taylor L. Reid 	 
	 	 	 

 

	 	 	 	 	 

EXHIBIT A

GROSS-UP PAYMENT

This Exhibit A shall govern the Gross-Up Payment described in Section 6 of the Agreement.
Capitalized terms used but not otherwise defined herein shall have the meanings assigned to such
terms in the Agreement.

Section 1. All determinations required to be made under this Exhibit A, including whether
and when a Gross-Up Payment is required and the amount of such Gross-Up Payment, whether a
reduction to the Safe Harbor Amount is required and, if so, the amount of the reduction, and the
assumptions to be utilized in arriving at such determination, shall be made by a nationally
recognized accounting firm designated by the Company (the “Accounting Firm”), which shall provide
detailed supporting calculations both to the Company and Employee within ten (10) business days of
the receipt of notice from Employee that there has been a Payment, or such earlier time as is
requested by the Company. All fees and expenses of the Accounting Firm shall be borne solely by
the Company. Any Gross-Up Payment, as determined pursuant to this Exhibit A, shall be paid
by the Company to Employee (or to the appropriate taxing authority on Employee’s behalf) when the
tax is due. If the Accounting Firm determines that no Excise Tax is payable by Employee, it shall
so indicate to Employee in writing. Any determination by the Accounting Firm shall be binding upon
the Company and Employee (subject to Section 2 hereof). As a result of the uncertainty in the
application of Section 4999 of the Code, it is possible that Gross-Up Payments determined by the
Accounting Firm to be due to (or on behalf of) Employee was lower than the amount actually due
(“Underpayment”). In the event that the Company exhausts its remedies pursuant to Section 2 of this
Exhibit A and Employee thereafter is required to make a payment of any Excise Tax, the
Accounting Firm shall determine the amount of the Underpayment that has occurred, and any such
Underpayment shall be promptly paid by the Company to or for the benefit of Employee (but in any
case no later than the calendar year following the calendar year in which such tax was payable).

Section 2. Employee shall notify the Company in writing of any claim by the Internal Revenue
Service that, if successful, would require the payment by the Company of any Gross-Up Payment. Such
notification shall be given as soon as practicable but no later than ten (10) business days after
Employee is informed in writing of such claim and shall apprise the Company of the nature of such
claim and the date on which such claim is requested to be paid. Employee shall not pay such claim
prior to the expiration of the thirty (30) day period following the date on which it gives such
notice to the Company (or such shorter period ending on the date that any payment of taxes with
respect to such claim is due). If the Company notifies Employee in writing prior to the expiration
of such period that it desires to contest such claim, Employee shall (i) give the Company any
information reasonably requested by the Company relating to such claim, (ii) take such action in
connection with contesting such claim as the Company shall reasonably request in writing from time
to time, including, without limitation, accepting legal representation with respect to such claim
by an attorney reasonably selected by the Company, (iii) cooperate with the Company in good faith
in order to effectively contest such claim, and (iv) permit the Company to participate in any
proceedings relating to such claim; provided, however, that the Company shall bear and pay directly
all costs and expenses (including additional interest and penalties) incurred in connection with
such contest and shall indemnify and hold Employee

Exhibit A

1

 

harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties
with respect thereto) imposed as a result of such representation and payment of costs and expenses.
Without limitation on the foregoing provisions of this Section 2, the Company shall control all
proceedings taken in connection with such contest and, at its sole option, may pursue or forego any
and all administrative appeals, proceedings, hearings and conferences with the taxing authority in
respect of such claim and may, at its sole option, either direct Employee to pay the tax claimed
and sue for a refund or contest the claim in any permissible manner, and Employee agrees to
prosecute such contest to a determination before any administrative tribunal, in a court of initial
jurisdiction and in one (1) or more appellate courts, as the Company shall determine; provided that
if the Company directs Employee to pay such claim and sue for a refund, the Company shall advance
the amount of such payment to Employee, on an interest-free basis, and shall indemnify and hold
Employee harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or
penalties with respect thereto) imposed with respect to such advance or with respect to any imputed
income with respect to such advance; provided, further, that if Employee is required to extend the
statute of limitations to enable the Company to contest such claim, Employee may limit this
extension solely to such contested amount. The Company’s control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and Employee shall be
entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

Section 3. If, after the receipt by Employee of an amount paid or advanced by the Company pursuant
to this Exhibit A, Employee becomes entitled to receive any refund with respect to a
Gross-Up Payment, Employee shall (subject to the Company’s complying with the requirements of
Section 2 of this Exhibit A) promptly pay to the Company the amount of such refund received
(together with any interest paid or credited thereon after taxes applicable thereto). If, after the
receipt by Employee of an amount advanced by the Company pursuant to Section 2 of this Exhibit
A, a determination is made that Employee shall not be entitled to any refund with respect to
such claim, and the Company does not notify Employee in writing of its intent to contest such
denial of refund prior to the expiration of thirty (30) days after such determination, then such
advance shall be forgiven and shall not be required to be repaid, and the amount of such advance
shall offset, to the extent thereof, the amount of the Gross-Up Payment required to be paid.

Section 4. For the avoidance of doubt, all payments to or for the benefit of Employee provided for
in this Exhibit A shall be made no later than the end of the calendar year in which the
applicable Excise Tax has become due, or if as a result a tax audit or litigation, it is determined
that no additional Excise Tax has become due, the end of the calendar year in which the audit is
completed or there is a final and non-appealable settlement or other resolution.

Exhibit A

2Exhibit 10.1 - Asset Purchase Agreement

Exhibit 10.1

ASSET PURCHASE AGREEMENT

dated as of

June 21, 2010

by and among

ECLIPS MEDIA TECHNOLOGIES, INC.,

SD ACQUISITION CORP.

and

BRAND INTERACTION GROUP, LLC

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	Article 1 PURCHASE AND SALE OF ASSETS
	 	 	1	 
	1.01 Purchase and Sale of Assets
	 	 	1	 
	1.02 Excluded Assets
	 	 	2	 
	1.03 Assumption of Liabilities
	 	 	3	 
	1.04 Retained Liabilities
	 	 	3	 
	1.05 Allocation Reporting
	 	 	4	 
	1.06 Consents to Assignment
	 	 	5	 
	1.07 Purchase Price
	 	 	5	 
	Article 2 REPRESENTATIONS AND WARRANTIES OF SELLER
	 	 	14	 
	2.01 Existence and Power
	 	 	14	 
	2.02 Authorization
	 	 	14	 
	2.03 Non-Contravention
	 	 	15	 
	2.04 Subsidiaries
	 	 	15	 
	2.05 Financial Statements
	 	 	15	 
	2.06 Receivables
	 	 	16	 
	2.07 Absence of Certain Changes
	 	 	16	 
	2.08 Internal Controls
	 	 	17	 
	2.09 Assets
	 	 	17	 
	2.10 Real Property
	 	 	18	 
	2.11 Intellectual Property
	 	 	18	 
	2.12 Contracts
	 	 	20	 
	2.13 Licenses and Permits
	 	 	21	 
	2.14 Employees
	 	 	21	 
	2.15 Employee Benefit Plans
	 	 	22	 
	2.16 Environmental Matters
	 	 	22	 
	2.17 Tax Matters
	 	 	24	 
	2.18 Transactions with Affiliates
	 	 	24	 
	2.19 Fees
	 	 	25	 
	2.20 Customers and Suppliers
	 	 	25	 
	2.21 Exclusion of Business
	 	 	25	 
	2.22 Compliance with Laws; No Defaults
	 	 	25	 
	2.23 Legal Proceedings
	 	 	25	 
	2.24 Accuracy of Information Furnished
	 	 	26	 
	Article 3 REPRESENTATIONS AND WARRANTIES OF PARENT AND PURCHASER
	 	 	26	 
	3.01 Existence
	 	 	26	 
	3.02 Authorization
	 	 	26	 
	3.03 Non-Contravention
	 	 	26	 
	3.04 Fees
	 	 	27	 
	3.05 Litigation
	 	 	27	 
	3.06 Parent Common Stock
	 	 	27	 
	3.07 SEC Documents
	 	 	27	 
	3.08 Absence of Certain Changes
	 	 	27	 
	Article 4 COVENANTS OF SELLER
	 	 	28	 
	4.01 Non-Solicitation
	 	 	28	 
	4.02 Conduct of the Business
	 	 	29	 
	4.03 Access to Information
	 	 	30	 
	4.04 Notices of Certain Events
	 	 	30	 
	4.05 Covenant Not to Compete
	 	 	31	 
	4.06 Change of Names
	 	 	32	 

 

2

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	Article 5 COVENANTS OF PURCHASER AND PARENT
	 	 	32	 
	5.01 Access Prior to the Closing Date
	 	 	32	 
	5.02 Access From and After the Closing Date
	 	 	33	 
	Article 6 COVENANTS OF SELLER AND PURCHASER
	 	 	34	 
	6.01 Best Efforts; Further Assurances
	 	 	34	 
	6.02 Certain Filings
	 	 	34	 
	6.03 Public Announcements
	 	 	34	 
	6.04 Notice of Developments
	 	 	34	 
	6.05 Performance of Audit
	 	 	34	 
	6.06 Employee Matters
	 	 	35	 
	6.07 Certain Warranty Matters
	 	 	36	 
	6.08 Tax Cooperation: Allocation of Taxes
	 	 	36	 
	Article 7 CLOSING
	 	 	37	 
	7.01 Closing
	 	 	37	 
	7.02 Deliveries and Actions by Seller
	 	 	37	 
	7.03 Deliveries and Actions by Purchaser
	 	 	39	 
	7.04 Deliveries and Actions by Parent
	 	 	39	 
	7.05 Conditions to the Obligations of Each Party
	 	 	40	 
	7.06 Conditions to Obligations of Parent and Purchaser
	 	 	40	 
	7.07 Conditions to Obligations of Seller
	 	 	41	 
	Article 8 INDEMNIFICATION
	 	 	42	 
	8.01 Indemnification by Seller
	 	 	42	 
	8.02 Indemnification by Purchaser and Parent
	 	 	43	 
	8.03 Effect of Knowledge
	 	 	44	 
	8.04 Indemnification Procedure for Third-Party Claims
	 	 	44	 
	8.05 Limitations on Indemnification
	 	 	45	 
	8.06 Non-Exclusive Remedy
	 	 	45	 
	Article 9 TERMINATION
	 	 	45	 
	9.01 Grounds for Termination
	 	 	45	 
	9.02 Effect of Termination
	 	 	46	 
	Article 10 MISCELLANEOUS
	 	 	47	 
	10.01 Survival
	 	 	47	 
	10.02 Notices
	 	 	47	 
	10.03 Amendments; No Waivers
	 	 	48	 
	10.04 Expenses
	 	 	49	 
	10.05 Successors and Assigns
	 	 	49	 
	10.06 Governing Law
	 	 	49	 
	10.07 Specific Performance
	 	 	49	 
	10.08 Counterparts; Effectiveness
	 	 	49	 
	10.09 Entire Agreement
	 	 	49	 
	10.10 Construction
	 	 	50	 
	10.11 Severability
	 	 	51	 
	10.12 Certain Definitions
	 	 	51	 

 

3

 

ASSET PURCHASE AGREEMENT

THIS ASSET PURCHASE AGREEMENT (the “Agreement”) is made and entered into as of June 21, 2010,
by and among EClips Media Technologies, Inc., a Delaware corporation (“Parent”), SD
Acquisition, Corp., a New York corporation and wholly-owned subsidiary of Parent
(“Purchaser”), and Brand Interaction Group, LLC, a New Jersey limited liability company
(“Seller”).

W I T N E S S E T H:

WHEREAS, Seller owns Fantasy Football SUPERDRAFTTM, which currently consists of a
weekend long event, consisting of celebrity hosted parties, events, access to fantasy experts and
live draft rooms for individuals involved in fantasy football leagues (the “Business”),
which Seller operates via the internet through the URL “www.FantasySuperDraft.com” and under
similar or related names (the “Business Name”);

WHEREAS, Seller desires to sell, transfer and assign to Purchaser, and Purchaser desires to
purchase and acquire from Seller, substantially all of the assets of Seller relating to the
operation of the Business, and in connection therewith, Purchaser has agreed to assume certain of
the liabilities of Seller relating to the Business, on the terms and conditions set forth in this
Agreement;

WHEREAS, certain terms are defined as provided herein and shall have the specified meaning
regardless of whether any usage appears before or after the place where a term is defined.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows, intending to be legally bound:

ARTICLE 1

PURCHASE AND SALE OF ASSETS

1.01 Purchase and Sale of Assets. Upon the terms and subject to the conditions set forth
in this Agreement, Seller hereby agrees to sell, convey, transfer and assign to Purchaser, and
Purchaser hereby agrees to purchase and acquire from Seller, all of the right, title and interest
of Seller in, to and under the assets, properties and business, of every kind and description,
wherever located, real, personal or mixed, tangible or intangible, owned by Seller and used in the
conduct of the Business by Seller on the Closing Date, including without limitation, all right,
title and interest of Seller and its Affiliates in, to and under the following, which (whether or
not listed below) are hereinafter collectively referred to as the “Assets”:

(a) all of the equipment, computers, servers, hardware, appliances, implements, and
all other tangible personal property that are owned by Seller or any of its Affiliates
and have been used in the conduct of the Business, including without limitation, the
items listed on Schedule 1.01(a);

 

4

 

(b) all contracts (the “Contracts”) to which Seller is a party, or which
affect the Business or the Assets, including without limitation, leases of personal
property, licenses in and out of the Seller for Intellectual Property, and including
without limitation, the items listed on Schedule 1.01(b), to the extent such Contracts
can be validly and effectively assigned, but subject to Section 1.06;

(c) all rights, claims and causes of action against third parties resulting from or
relating to the operation of the Business or the Assets prior to the Closing Date,
including without limitation, any rights, claims and causes of action arising under
warranties from vendors and other third parties;

(d) all governmental licenses, permits, authorizations, consents or approvals
affecting or relating to Seller, the Business or the Assets (“Permits”) listed
on Schedule 1.01(d) to the extent they can be validly and effectively assigned;

(e) all accounts receivable, notes receivable, prepaid expenses and insurance and
indemnity claims to the extent related to any of the Assets or the Business;

(f) all goodwill associated with the Assets and the Business;

(g) all Business Records;

(h) Seller’s right to use the Business Name, including the name “Fantasy Football
SUPERDRAFT” and all other names used in conducting the Business, and all derivations
thereof, in connection with Purchaser’s future conduct of the Business;

(i) all Intellectual Property Assets, including without limitation, the items
listed on Schedule 1.01(i); and

(j) all other privileges, rights, interests, properties and assets of whatever
nature and wherever located that are owned, used or intended for use in connection with,
or that are necessary to the continued conduct of, the Business as presently conducted
or planned to be conducted as of the Closing Date;

provided that, notwithstanding the foregoing, the Assets shall not include the Excluded
Assets.

1.02 Excluded Assets. Notwithstanding anything to the contrary in Section 1.01, the
following assets of Seller are excluded from the Assets (the “Excluded Assets”):

(a) any insurance policies of Seller, other than rights relating to claims
thereunder arising on or prior to the Closing Date;

(b) all rights of Seller under this Agreement and the other agreements and
instruments executed and delivered in connection with this Agreement;

(c) the minute book, stock transfer book and corporate seal of Seller;

 

5

 

(d) any agreement, right, asset or property owned or leased by or licensed to
Seller that is not used or held for use in connection with Seller’s conduct of the
Business, but only to the extent set forth on Schedule 1.02(d);

(e) all refunds, credits or amounts with respect to Taxes which are paid or payable
by Seller; and

(f) other assets and properties of Seller set forth on Schedule 1.02(f).

1.03 Assumption of Liabilities. Upon the terms and subject to the conditions of this
Agreement, Purchaser agrees, effective at the time of the Closing, to assume, pay, discharge and
perform the following (and only the following) obligations and liabilities of Seller (the
“Assumed Liabilities”): (a) all accounts payable related to the Assets and the conduct of
the Business, incurred in the ordinary course of business, other than any accounts payable that may
be due or owing to Seller or any of its Affiliates, (b) all liabilities and obligations of Seller
arising under the Contracts listed on Schedule 1.01(b) (other than liabilities or obligations of
Seller arising under the Contracts attributable to any failure by Seller to comply with the terms
thereof), (c) all Current Liabilities to the extent used in determining the Net Current Assets of
the Business, as such Current Liabilities are set forth on Schedule 1.03, and (d) those liabilities
set forth on Schedule 1.03(d).

1.04 Retained Liabilities. Except for the Assumed Liabilities, Purchaser shall not assume
by virtue of this Agreement or the transactions contemplated hereby, and shall have no liability
for, any liabilities, commitments, contracts, agreements, obligations or other claims against
Seller, whether known or unknown, asserted or unasserted, accrued or unaccrued, absolute or
contingent, liquidated or unliquidated, due or to become due, and whether contractual, statutory,
or otherwise. Without limiting the generality of the foregoing, the parties acknowledge that
Purchaser shall not assume or in any way be responsible for any of the following liabilities or
obligations of Seller:

(a) liabilities in respect of indebtedness of Seller, except to the extent such is
an Assumed Liability set forth on Schedule 1.03(d);

(b) product liability and warranty claims relating to any product or service of
Seller produced, manufactured, sold, performed or delivered on or prior to the Closing
Date;

(c) except for any and all Transfer Taxes, Taxes, duties, levies, escheats,
assessments and other such charges, including without limitation, any penalties,
interests and fines with respect thereto, payable by Seller to any federal, provincial,
municipal or other government or Governmental Authority, domestic or foreign, including
without limitation, Taxes arising out of the transactions contemplated by this
Agreement;

(d) liabilities for salary, bonus, vacation pay or other compensation or benefits
relating to Seller’s employees for periods prior to the Closing Date;

 

6

 

(e) severance payments, damages for wrongful dismissal and all related costs in
respect of the termination by Seller of the employment of Affected Employees;

(f) liabilities or obligations relating to an Excluded Asset, including without
limitation, any liability or obligation arising out of a claim by any party to any
agreement which is an Excluded Asset arising out of the failure to transfer such
Excluded Asset;

(g) any liability or claim that may be due and owing to Seller or its Affiliates;

(h) any liability or claim for liability (whether in contract, in tort or
otherwise, and whether or not successful) related to any lawsuit or threatened lawsuit
or claim (including without limitation, any claim for breach or non-performance of any
Contract) based upon actions, omissions or events occurring on or prior to the Closing
Date.

1.05 Allocation Reporting. The Purchaser and the Seller hereby agree and acknowledge that
the fair market value of the Parent Common Stock issued pursuant to Section 1.07 equals $30,000.
Schedule 1.05 has been prepared consistent with this value. Schedule 1.05 sets forth the
allocations established by Purchaser and Seller of the Purchase Price among the Assets, and in
connection therewith:

(a) the allocations set forth on Schedule 1.05 are acknowledged by the parties to
be the fair market value of the Assets and will be used by Purchaser and Seller as the
basis for reporting asset values and other items for purposes of all required Tax
Returns (as hereinafter defined) (including without limitation, any Tax Returns required
to be filed under Section 1060(b) of the Internal Revenue Code of 1986, as amended (the
“Code”) and the regulations promulgated thereunder) and Form 8594, if
applicable;

(b) Purchaser and Seller shall not assert, in connection with any audit or other
proceeding with respect to Taxes, any asset values or other items inconsistent with the
allocations set forth on Schedule 1.05 hereto; and

1.06 Consents to Assignment. In the event any consent required to be obtained pursuant to
the terms of any Contract (excluding In-bound Intellectual Property Licenses) (collectively
referred to as “Withheld Consent Contracts”) prior to the assignment of such Withheld Consent
Contract by Seller to Purchaser hereunder is not obtained as of the Closing Date, Seller shall hold
such Withheld Consent Contract in trust for Purchaser and carry out and comply with the terms and
provisions of such Withheld Consent Contract as agent for Purchaser, under Purchaser’s direction
and control, at Purchaser’s cost and for Purchaser’s benefit. Purchaser and Seller shall use
commercially reasonable efforts to obtain any such consent after the Closing Date. Notwithstanding
anything to the contrary contained in this Agreement, if any such consent is not obtained within 30
Business Days after the Closing Date, Purchaser shall have the option, exercisable at any time
thereafter by written notice delivered to Seller, of
treating such Withheld Consent Contract as an Excluded Asset under this Agreement, in which case
Purchaser shall have no further obligation with respect to such Withheld Consent Contract and
Seller will retain all benefits and liabilities arising thereunder. Purchaser acknowledges and
agrees that its option of treating any such Withheld Consent Contract as an Excluded Asset pursuant
to the terms of this Section 1.06 represents the sole and exclusive recourse of Purchaser with
respect to the parties’ inability to obtain any required consent to assignment of any Withheld
Consent Contract, subject to Schedule 1.01(c).

 

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1.07 Purchase Price. The total purchase price for the Assets (the “Purchase
Price”) shall be 20,000,000 shares of Parent Common Stock. The Purchase Price shall be payable
and/or deliverable at Closing to Seller (the “Closing Payment”).

ARTICLE 2

REPRESENTATIONS AND WARRANTIES OF SELLER

Seller hereby represents and warrants to Purchaser that:

2.01 Existence and Power. Seller is a limited liability company duly organized, validly
existing and in good standing under the laws of the state of its incorporation, and Seller has all
corporate powers and all governmental licenses, permits, authorizations, consents and approvals
required to carry on its Business as now conducted. Seller is duly qualified to conduct business
as a foreign corporation and is in good standing in each jurisdiction in which the failure to so
qualify would have a Material Adverse Effect on Seller, the Assets or the Business. Seller has
heretofore delivered to Purchaser true and complete copies of Seller’s operating agreement as
currently in effect.

2.02 Authorization.

(a) The execution, delivery and performance by Seller of this Agreement and all
other documents and agreements to be executed by Seller in connection herewith (the
“Related Documents”) and the consummation by Seller of the transactions
contemplated hereby require no action by or in respect of, or filing with, any
governmental body, agency, official or authority.

(b) Seller has all requisite corporate power and authority to execute and deliver
this Agreement and the Related Documents and to perform its obligations hereunder and
thereunder to consummate the transactions contemplated hereby and thereby. The
execution, delivery and performance of this Agreement and the Related Documents by
Seller and the consummation of the transactions contemplated hereby and thereby have
been duly authorized by all necessary corporate action, and no other action on the part
of Seller is necessary to authorize this Agreement or the Related Documents or to
consummate the transactions contemplated hereby. This Agreement and the Related
Documents have been duly executed and delivered by Seller and constitute the valid and
legally binding obligations of Seller, enforceable against Seller in accordance with
their respective terms, except as such enforceability may be limited by laws governing
bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance or other similar laws, without limitation, relating to or
affecting creditors’ rights generally.

 

8

 

2.03 Non-Contravention. Except as set forth in Schedule 2.03, the execution, delivery and
performance by Seller of this Agreement and the Related Documents, and the consummation of the
transactions contemplated hereby and thereby, do not and will not:

(a) contravene, violate or conflict with the operating agreement of Seller (the
“Governing Documents”);

(b) assuming compliance with the matters referred to in Section 2.02(a), to
Seller’s Knowledge, contravene or conflict with, or constitute a violation of, any
provision of any law, regulation, judgment, injunction, order or decree binding upon or
applicable to Seller;

(c) conflict with, result in a breach or violation of, or constitute a default
under, or result in a contractual right to cause the termination or cancellation of or
loss of a benefit under, or right to accelerate, any agreement, contract or other
instrument binding upon Seller or license, franchise, permit or other similar
authorization held by Seller; or

(d) result in the creation or imposition of any Encumbrance on any Asset.

2.04 Subsidiaries. Seller does not own directly or indirectly, any capital stock, equity
interest or other ownership interest in any corporation, partnership, association, joint venture,
limited liability company or other entity.

2.05 Financial Statements. Seller’s financial statements for the year ended December 31,
2009 and 2008 (the “Year End Financial Statements”) have been prepared in all material respects in
accordance with the books and records of Seller, and fairly present the financial position of
Seller as of and for the date thereof and its results of operations and cash flows for the period
then ended.

2.06 Receivables. All accounts receivable, notes receivable and other receivables included
in the Assets were created in the ordinary course of business consistent with past practice.

2.07 Absence of Certain Changes. Since the Balance Sheet Date, Seller has conducted the
Business in the ordinary course consistent with past practice and, except as set forth in Schedule
2.07, there has not been:

(a) any Material Adverse Effect on the Business or the Assets or any event,
occurrence, development or state of circumstances or facts which as of the date hereof
could reasonably be expected to have a Material Adverse Effect on the Business or the
Assets;

 

9

 

(b) any incurrence, assumption or guarantee of any indebtedness for borrowed money
or any purchase money obligation or other debt or liability by Seller, except in the
ordinary course of its Business consistent with past practice;

(c) any creation or other incurrence of any Encumbrance on any Asset of Seller,
except for Permitted Encumbrances;

(d) any material damage, destruction or other property or casualty loss affecting
the Business or Assets, (whether or not covered by insurance);

(e) any transaction or commitment made, or any contract or agreement entered into,
by Seller relating to the Assets or the Business or any relinquishment of any contract
or other right, other than transactions and commitments (including without limitation,
acquisitions and dispositions of equipment) in the ordinary course of its Business
consistent with past practice;

(f) any (i) grant of any severance, termination or change of control pay or other
benefits to any director, manager, officer or employee of Seller, (ii) entering into any
employment, deferred compensation, change of control or other similar agreement (or any
amendment to any such existing agreement) with any director, manager, officer or
employee of Seller, (iii) any increase in or acceleration or vesting of benefits payable
under any existing severance or termination pay policies or employment agreements, (iv)
any increase in or acceleration or vesting of compensation, bonus or other benefits
payable to directors, managers, officers or employees of Seller or (v) any general or
specific increase in the salary or other compensation (including, without limitation,
bonuses, profit sharing, deferred compensation or other employee benefits) payable or to
become payable to any employee of Seller, except in the ordinary course of its Business
consistent with past practice;

(g) any labor dispute, other than routine individual grievances, or to Seller’s
Knowledge any activity or proceeding by a labor union or representative thereof to
organize any employees of Seller or any lockouts, picketing, strikes, slowdowns, work
stoppages or threats thereof by or with respect to any employees of Seller;

(h) any declaration, setting aside or payment of dividends or other distributions
or any redemption, purchase or other acquisition of any other securities or other
ownership interests of Seller;

(i) any amendment to the Governing Documents, or other organizational documents of
Seller;

(j) any change in the accounting methods, policies, principles or practices of
Seller;

 

10

 

(k) any amendment, termination or waiver by Seller of any right of substantial
value under any agreement, contract or other written commitment to which it is a party
or by which it or the Business or the Assets are bound; or

(l) any agreement or understanding entered into by Seller to do, directly or
indirectly, any of the foregoing.

2.08 Assets.

(a) Except as set forth in Schedule 2.08, Seller is the sole and exclusive owner
of, and has good and marketable title to the Assets, free and clear of all Encumbrances
except for Permitted Encumbrances, and is exclusively entitled to possess and dispose of
same (except for any consent expressly required pursuant to any of the Contracts, all of
which are listed on Schedule 1.01(b)). At Closing, Seller will transfer to Purchaser
good and marketable title to all of the Assets, free and clear of any and all
Encumbrances other than Permitted Encumbrances. There are no outstanding agreements or
options to sell to any Person other than Purchaser the right to purchase or otherwise
acquire any of the Assets.

(b) The Assets constitute all of the property that can reasonably be regarded as
being necessary for Purchaser to carry on the Business as of the Closing Date. The
Assets include, without limitation, all assets and rights used by Seller in the
operation and conduct of the Business. Each such Asset is in good operating condition
and repair (subject to normal wear and tear).

2.09 Real Property. Seller does not own or lease any Real Property.

2.10 Intellectual Property.

(a) Seller owns all right, title and interest in and to or is duly licensed to use
all of the Intellectual Property Assets. The Business as presently conducted does not,
and the Assets as historically used by Seller do not, interfere with, infringe upon,
misappropriate or otherwise come into conflict with, any Intellectual Property assets of
any Person. Schedule 2.10 lists and describes: (i) all patents and patent applications
and all registered and unregistered trademarks, trade names and service marks,
registered and unregistered copyrights, and included in the Intellectual Property
Assets, including, without limitation, the jurisdictions in which each such Intellectual
Property Asset has been issued or registered or in which any application for such
issuance and registration has been filed; (ii) all licenses, sublicenses and other
agreements as to which Seller is a party and pursuant to which any Person is authorized
to use any Intellectual Property Assets; and (iii) all In-bound Intellectual Property
Licenses. Other than as set forth in Schedule 2.11, Seller has not placed any of the
Intellectual Property Assets in escrow for the benefit of any third party. Other than
as set forth in Schedule 2.11, Seller has not (i) licensed to any Person any of its
Intellectual Property Assets, whether in source code form or otherwise, (ii) entered
into any exclusive agreements with any party relating to its Intellectual Property
Assets, or (iii) entered into any reseller, distribution or other agreements pursuant to
which any third party is entitled to license or sublicense the Intellectual
Property Assets.

 

11

 

(b) Seller has not entered into any agreement to indemnify any Person against any
charge of infringement of any Intellectual Property Assets or any Intellectual Property
of any Person.

(c) All patents, trademarks, service marks and copyrights (whether registered or
not) held by Seller, as identified in Schedule 2.11, are valid, enforceable and
subsisting. Seller (i) has not been sued and is not aware of the possible basis for any
suit, action or proceeding which involves a claim of infringement against Seller by any
Person of any third party Intellectual Property rights and (ii) has not brought and is
not aware of the possible basis for bringing any action, suit or proceeding for
infringement of Seller’s Intellectual Property Assets or breach of any license or
agreement involving the Intellectual Property Assets against any Person.

(d) To the extent necessary (or appropriate given customary industry practice) to
secure its ownership of its Intellectual Property Assets, Seller has secured valid
written assignments from all Persons who contributed to the creation or development of
Seller’s Intellectual Property Assets of the rights to such contributions.

(e) Seller holds all right, title and interest in and to the patent applications,
service mark applications and trademark applications identified in Schedule 2.11 (the
“Applications”). To the Knowledge of Seller, no Person other than Seller is
using the trademarks, service marks or patents covered by the Applications, and Seller
has not knowingly permitted any other Person to use the trademarks, service marks or
patents described in the Applications. There are no actions, suits, proceedings,
outstanding claims or demands instituted, pending or, to Seller’s Knowledge, threatened
against Seller in respect of its rights in the trademarks, service marks and patents
contained in the Applications. All patents or patent applications included in the
Intellectual Property Assets are subsisting, valid and enforceable, in whole or in part,
and all maintenance fees have been paid to date and for at least three months after
Closing.

(g) The Intellectual Property Assets do not contain computer code that is required
to be (a) disclosed in source code format to third parties; (b) licensed to third
parties for the purpose of making derivative works; or (c) redistributable to third
parties at no charge.

2.11 Contracts. Seller has caused to be made available to Purchaser for review complete
and correct copies of all written Contracts listed on Schedule 2.11, which contains a complete and
accurate list of all material Contracts to which Seller is a party, or which affect the Business or
the Assets. Except as set forth in Schedule 2.11, each of the Contracts may be transferred to
Purchaser without the consent of any person. All of the Contracts are valid, binding and in full
force and effect against Seller in accordance with their terms and, to Seller’s Knowledge, are
valid, binding and in full force and effect against the other parties thereto. Except as set forth
in Schedule 2.11, Seller is not in default in any material respect, and no notice
of alleged default has been received by Seller under any of the Contracts, no other party thereto
is, to Seller’s Knowledge, in default thereunder in any material respect, and, to Seller’s
Knowledge, there exists no condition or event which, with or without notice or lapse of time or
both, would constitute a material default under any of the Contracts by Seller or any other party
thereto.

 

12

 

2.12 Licenses and Permits. Schedule 2.12 lists and correctly describes each Permit
affecting, or relating in any way to, Seller, the Business or the Assets, together with the name of
the Governmental Authority or entity issuing such Permit. Except as set forth on Schedule 2.12,
such Permits are valid and in full force and effect and will not be terminated or impaired or
become terminable as a result of the transactions contemplated hereby and any necessary renewal
applications have been timely filed. There are no Permits which have not been obtained by Seller
which are required for the proper and lawful operation of (a) all or any portion of the Assets or
(b) the Business as presently conducted and as proposed to be conducted as of the Closing Date.

2.13 Employees.

(a) Schedule 2.13(a) contains a complete list of all employees, contractors and
other persons employed by or contracted directly or indirectly by Seller in the conduct
of the Business (the “Affected Employees”).

(b) Except as set forth on Schedule 2.13(b), Seller is not a party to (a) any
collective bargaining agreement covering any Affected Employee, (b) any agreement
respecting the employment of any Affected Employee, or (c) any agreement for the
provision of consulting or other professional services provided by any Affected Employee
which is not cancelable without penalty on less than 30 days notice. Except as set
forth on Schedule 2.13(b), within the last year Seller has not experienced any labor
disputes, union organization attempts or any work stoppage due to labor disagreements.
Seller is in compliance with all applicable Laws respecting employment and employment
practices, terms and conditions of employment and wages and hours with respect to any
Affected Employee, and is not engaged in any unfair labor practice with respect to any
Affected Employee. Seller is not aware of any current attempts to organize or establish
any labor union or employee association relating to the Affected Employees nor is there
any certification of any such union with regard to a bargaining unit pending. There is
no unfair labor practice charge or complaint against Seller pending or, to Seller’s
Knowledge, threatened with respect to any Affected Employee, and there is no labor
strike, dispute, grievance or unfair labor practice, request for representation,
slowdown or stoppage actually pending or, to Seller’s Knowledge, threatened against or
affecting Seller nor any secondary boycott with respect to services of Seller. To
Seller’s Knowledge, no question concerning union representation has been raised or is
threatened respecting any Affected Employee. No Affected Employee has filed any
material grievance against Seller, and there are no pending arbitration proceedings or
claims therefor with respect to any Affected Employee arising out of, related to or
under any collective bargaining agreement. There are no administrative charges or court
complaints against Seller concerning alleged employment discrimination or
other employment related matters pending or, to Seller’s Knowledge, threatened
before any Governmental Authority with respect to any Affected Employee, nor are there
any liabilities due or alleged to be due for any damages to any Affected Employee
resulting from the violation or alleged violation of any applicable law, agreement or
arrangement with respect to any Affected Employee.

 

13

 

(c) No Affected Employee has indicated to Seller that he or she intends to resign
or retire as a result of the transactions contemplated by this Agreement, except as set
forth on Schedule 2.13(c).

2.14 Employee Benefit Plans. Except as set forth on Schedule 2.14, Seller has no
(i) pension, thrift, savings, profit-sharing, retirement, incentive bonus or other bonus, medical,
dental, life, accident insurance, benefit, employee welfare, disability, group insurance, stock
purchase, stock option, stock appreciation, stock bonus, executive or deferred compensation,
hospitalization and other similar fringe or employee benefit plans, programs and arrangements,
(ii) employment or consulting contracts, “golden parachutes,” collective bargaining agreements,
severance agreements or plans, vacation and sick leave plans, programs, arrangements and policies,
(iii) employee manuals, or (iv) written or binding oral statements of policies, practices or
understandings relating to employment, which are provided to, for the benefit of, or relate to, any
Affected Employee. To its Knowledge, Seller is not in arrears in the payment of any contribution
or assessment required to be made by it pursuant to any of the agreements or arrangements set forth
in Schedule 2.14.

2.15 Tax Matters. Seller has timely filed (taking into account any applicable extensions)
all applicable Tax Returns and reports for all years and periods for which such returns and reports
were due to be filed by it prior to the Closing Date. Each of such Tax Returns as filed was
correct and complete. Seller and each of its Affiliates has not been and is not currently the
subject of an audit, other examination, matter in controversy, proposed adjustment, refund
litigation or other proceeding with respect to Taxes by the Tax authorities of any nation,
province, state or locality or other governmental authority, nor has Seller or any of its
Affiliates received any notices from any Tax authority relating to any such issue or potential
issue. There are no liens for Taxes upon the Assets or properties of Seller, any of its Affiliates
or the Business except for statutory liens for current Taxes not yet due. Neither Seller nor any
of its Affiliates has, as of the date hereof, entered into an agreement or waiver extending any
statute of limitations relating to the payment or collection of Taxes. Seller and each of its
Affiliates has timely paid all Taxes and Tax liabilities in respect of periods prior to the date
hereof and has accrued on its financial statement an amount necessary to pay in full all unpaid
Taxes. Seller and each of its Affiliates has complied with all applicable Tax Laws. Seller is,
and has been since its formation, a limited liability company for federal and state income tax
purposes. For purposes of this Agreement, (i) “Tax” or “Taxes” means any federal,
state, provincial, local or foreign income, gross receipts, license, payroll, employment, excise,
severance, stamp, occupation, premium, windfall profits, customs duties, capital stock, franchise,
profits, withholding, social security (or similar), unemployment, disability, real property,
personal property, sales, use, transfer, registration, value added, alternative minimum or other
tax of any kind whatsoever, including without limitation, any interest, penalty or addition
thereto, whether disputed or not, and (ii) “Tax Return” means any return, declaration,
report, claim for refund or information
return or statement relating to Taxes, including without limitation, any schedule or attachment
thereto, and including, without limitation, any amendment thereof.

 

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2.16 Transactions with Affiliates. Except as set forth on Schedule 2.16 and except for
normal employment arrangements consistent with past practices, since December 31, 2009, Seller has
not purchased, acquired or leased any property or services from, or sold, transferred or leased any
property or services to, or loaned or advanced any money to, or borrowed any money from any
employee, officer, director or shareholder of Seller or any of their respective Affiliates except
for loans, advances or borrowings to be repaid prior to the Closing Date.

2.17 Fees. Except as set forth on Schedule 2.17, Seller has not incurred any obligation or
liability, contingent or otherwise, for brokers’ or finders’ fees in respect of the matters
provided for in this Agreement for which Purchaser or its Affiliates, or the Business, could become
liable. Any fee due to any broker or finder representing Seller shall be the responsibility of
Seller.

2.18 Customers and Suppliers. Seller does not have any Knowledge of any intention or
indication of intention by a significant customer or a significant supplier to terminate its
business relationship with Seller or to limit its business relationship with Seller in any material
respect.

2.19 Exclusion of Business. Except as set forth on Schedule 2.19, Seller does not know and
has not received any notice that access to FantasySuperDraft.com or Seller’s associated websites
have been or will be blocked by any Governmental Authority in any respect or to any Person.

2.20 Compliance with Laws; No Defaults.

(a) Except as set forth on Schedule 2.20(a), Seller (i) is in compliance in all
material respects with any applicable statute, law, rule or regulation or any judgment,
order, writ, injunction or decree of any court or Governmental Authority to which the
Assets are or the Business is subject, and (ii) to Seller’s Knowledge, is not subject to
any claim asserted by any Governmental Authority that the Assets are or the Business is
in violation of any legal requirement.

(b) As of the date hereof, Seller is not in default under, and no condition exists
that with notice or lapse of time or both would constitute a default under any material
Permit held by Seller or affecting or relating to the Assets or the Business, except as
otherwise disclosed in Schedules 2.20(b).

2.21 Legal Proceedings. Except as set forth on Schedule 2.21, (i) there is no litigation
pending, or to Seller’s Knowledge, threatened, by any Person or by or before any Governmental
Authority, against or affecting Seller, or any shareholder of Seller (to the extent such litigation
against or affecting a member of Seller relates to or affects the Business or the Assets or the
ability of Seller to consummate the transactions contemplated hereby), the Business or the Assets;
and (ii) there is no judgment or decree requiring Seller to take any action of any kind with
respect to the Assets or the conduct of the Business, or to which Seller, the Business or the
Assets are subject or by which they are bound or affected in either case, which could adversely
affect the financial condition or conduct of the Business, the Assets or the ability of Seller to
perform its obligations under this Agreement, or which seeks or could result in the modification,
revocation, termination, suspension of or other limitation of any of the Contracts.

 

15

 

2.22 Accuracy of Information Furnished. No representation, statement or information
contained in this Agreement (including, without limitation, the various Schedules and Exhibits
attached hereto) or any agreement executed in connection herewith or in any certificate or other
document delivered pursuant hereto or thereto or made or furnished to Purchaser or their
representatives by Seller, contains or shall contain any untrue statement of a material fact or
omits or shall omit any material fact necessary to make the information contained therein not
misleading. Copies of all documents listed or described in the various Schedules attached hereto
and provided by Seller to Purchaser are true, accurate and complete in all material respects.

ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF PARENT AND PURCHASER

Each of Parent and Purchaser hereby represents and warrants to Seller as of the date hereof
and as of the Closing Date:

3.01 Existence. The Parent is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware and the Purchaser is a corporation duly organized,
validly existing and in good standing under the laws of the State of New York. Each of Purchaser
and Parent is duly qualified to conduct business as a foreign corporation and is in good standing
in each jurisdiction in which the failure to so qualify would have a Material Adverse Effect on
Purchaser or Parent as the case may be or their respective assets or businesses. Purchaser is
wholly-owned by the Parent.

3.02 Authorization.

(a) The execution, delivery and performance by each of Parent and Purchaser of this
Agreement or any Related Document requires no action by or in respect of, or filing
with, any Governmental Authority, the rules and regulations of the Securities and
Exchange Commission and the NASDAQ Stock Market, Inc. (“Nasdaq”).

(b) Each of the Parent and Purchaser has all requisite power and authority to
execute and deliver this Agreement and any Related Documents to which it is a party and
to perform its respective obligations hereunder and to consummate the transactions
contemplated hereby. The execution, delivery and performance of this Agreement and the
Related Documents to which Purchaser and/or Parent are a party and the consummation of
the transactions contemplated hereby and thereby have been duly authorized by all
necessary corporate action, and no other action on the part of either Purchaser or
Parent is necessary to authorize this Agreement or the Related Documents or to
consummate the transaction contemplated hereby or thereby. This Agreement and the
Related Documents to which Parent and/or Purchaser are a party have been duly executed
by Parent and Purchaser and constitute the valid and legally
binding obligation of each of Parent and Purchaser, enforceable against each of
Parent and Purchaser in accordance with their respective terms.

 

16

 

3.03 Non-Contravention. Except as set forth in Schedule 3.03, the execution, delivery and
performance by each of Parent and Purchaser of this Agreement and the Related Documents and the
consummation of the transactions contemplated hereby and thereby do not and will not:

(a) contravene or conflict with the Articles of Organization and By-laws of Parent
or Purchaser;

(b) assuming compliance with the matters referred to in Section 3.02(a), contravene
or conflict with, or constitute a violation of, any provision of any law, regulation or
judgment, injunction order or decree binding upon or applicable to Parent or Purchaser;
or

(c) conflict with, result in a breach or violation of, or constitute a default
under, or result in a contractual right to cause the termination or cancellation of or
loss of a benefit under or right to accelerate any agreement, contract or other
instrument binding upon Parent or Purchaser or license, franchise, permit or other
similar authorization held by Parent or Purchaser.

3.04 Fees. Except as set forth on Schedule 3.04, neither Purchaser nor Parent has incurred
any obligation or liability, contingent or otherwise, for brokers’ or finders’ fees in respect of
the matters provided for in this Agreement for which Seller could become liable. Any fee due to
any broker or finder representing Parent or Purchaser shall be the responsibility of Parent and
Purchaser.

3.05 Litigation. There is no action, suit, investigation or proceeding pending against, or
to the Knowledge of Purchaser or Parent threatened against or affecting, Purchaser or Parent before
any court or arbitrator or any Governmental Authority which in any matter challenges or seeks to
prevent, enjoin, alter or materially delay the transactions contemplated hereby or by any of the
Related Documents.

3.06 Parent Common Stock. All shares of Parent Common Stock to be delivered by Purchaser
or Parent pursuant to the transactions contemplated hereby will be (i) free and clear of all
Encumbrances, (ii) duly authorized, validly issued, fully paid and non-assessable when issued in
accordance with the terms hereof, and (iii) will not be subject to preemptive rights and will not
subject the holder thereof to personal liability by reasons of being such a holder.

3.07 SEC Documents. Purchaser has timely filed all forms, reports and documents required
to be filed by it with the Securities and Exchange Commission since January 1, 2010 (all of the
foregoing being collectively referred to as the “SEC Documents”). Purchaser has furnished or made
available to Seller true and complete copies of all SEC Documents. As of their respective filing
dates, the SEC Documents complied in all material respects with the requirements of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”).

 

17

 

3.08 Capitalization. Schedule 3.08 sets forth, in each case as of the date hereof,
(i) the authorized Capital Stock of Parent, the number of shares of each class of Capital Stock
issued
and outstanding and the number of shares of Parent Common Stock reserved for issuance in
connection with Parent’s stock option plans, and (ii) all options, warrants, rights to subscribe
to, calls, contracts, undertakings, arrangements and commitments to issue which may result in the
issuance of Capital Stock of Parent. All of the issued and outstanding shares of Parent’s Capital
Stock have been duly and validly authorized and issued and are fully paid and non-assessable and
are not subject to any preemptive rights. Except pursuant to this Agreement or in connection with
stock option plans, (i) no equity securities of Parent are or may be required to be issued by
reason of any options, warrants, rights to subscribe to, calls or commitments of any character
whatsoever, (ii) there are outstanding no securities or rights convertible into or exchangeable for
shares of any Capital Stock of Parent, and (iii) there are no contracts, commitments,
understandings or arrangements by which Parent is bound to issue additional shares of its Capital
Stock or securities or rights convertible into or exchangeable for shares of any Capital Stock of
Parent, or options, warrants or rights to purchase or acquire any additional shares of its Capital
Stock. Neither Parent nor any of its Subsidiaries are subject to any obligation (contingent or
otherwise) to repurchase or otherwise acquire or retire any of its Capital Stock.

3.09 Absence of Certain Changes. Since the date of its last Form 10-Q filed with the SEC,
Parent has not suffered any change to its business which would materially and adversely affect its
ability to finance the transactions contemplated hereby or which would otherwise have a Material
Adverse Effect on its business.

3.10 Accuracy of Information Furnished. No representation, statement or information
contained in this Agreement (including, without limitation, the various Schedules and Exhibits
attached hereto) or any agreement executed in connection herewith or in any certificate or other
document delivered pursuant hereto or thereto or made or furnished to Seller or its representatives
by Purchaser or Parent, contains or shall contain any untrue statement of a material fact or omits
or shall omit any material fact necessary to make the information contained therein not misleading.

ARTICLE 4

COVENANTS OF SELLER

4.01 Change of Names. Promptly following the Closing, but in any event within 30 days
after the Closing Date, Seller shall provide evidence to Purchaser of the change of Seller’s name
and any Affiliate of Seller bearing the name “FantasySuperDraft” or any variations or derivations
thereof, or any trademarks, trade names or logos of Seller or any of its Affiliates bearing such
names or similar names.

 

18

 

ARTICLE 5

COVENANTS OF PURCHASER AND PARENT

5.01 Access From and After the Closing Date. On and after the Closing Date, Purchaser will
afford promptly to Seller and its agents reasonable access to the properties, books, records,
employees and auditors involved in this transaction to the extent necessary to permit Seller to
determine any matter relating to its rights and obligations hereunder and Seller’s federal
and state income and other tax liabilities with respect to any period ending on or before the
Closing Date and shall maintain them for a period of five (5) years following the Closing or for
such longer period as any audit (private, tax or other governmental) of those documents is
continuing; provided that any such access by Seller shall not unreasonably interfere with the
conduct of the Business of Purchaser. Seller will hold, and will use its best efforts to cause its
officers, directors, employees, accountants, counsel, consultants, advisors and agents to hold, in
confidence, unless compelled to disclose by judicial or administrative process or by other
requirements of law, all confidential documents and information concerning Purchaser or the
Business provided by Purchaser in connection with this transaction.

5.02 Funding Amounts. Purchaser and Parent agree that, in addition to its general
funding of the operations of the Purchaser and Parent (including, without limitation, with respect
to all obligations under the Employment Agreement including, salary, bonus and benefits) to
provide funding for the Business and any extensions thereof in the amount of Five Hundred Thousand
Dollars ($500,000) (it being acknowledged that the amounts set forth on Schedule 5.02 have already
been paid), which monies will be funded within ten (10) days following Closing and used to fund the
Business in accordance with the budget for the Business previously agreed upon between Seller and
Purchaser and attached hereto as Exhibit A. In addition, if the Business generates a profit of One
Hundred Thousand Dollars ($100,000) or more for the year ending December 31, 2010, then the
Purchaser and Parent will provide funding on an as needed basis consistent with the budget and
projections of at least Seven Hundred and Fifty Thousand Dollars ($750,000) and up to One Million
Dollars ($1,000,000) for the Business for the period between the funding of the initial $500,000
and the second anniversary of the date hereof.

ARTICLE 6

COVENANTS OF SELLER AND PURCHASER

Seller and Purchaser hereby agree that:

6.01 Best Efforts; Further Assurances. Subject to the terms and conditions of this
Agreement, Seller and Purchaser will use their best efforts to take, or cause to be taken, all
actions and to do, or cause to be done, all things necessary or desirable under applicable Laws to
consummate the transactions contemplated by this Agreement. Seller and Purchaser each agree to
execute and deliver such other documents, certificates, agreements, corporate and shareholder
approvals, and other writings and to take such other actions as may be necessary or desirable in
order to consummate or implement expeditiously the transactions contemplated by this Agreement, but
without expanding the obligations and responsibilities of any party hereunder.

6.02 Certain Filings. Seller and Purchaser shall cooperate with one another (a) in
determining whether any action by or in respect of, or filing with, any Governmental Authority is
required, or any actions, consents, approvals or waivers are required to be obtained from parties
to any material Contracts, in connection with the consummation of the transactions contemplated by
this Agreement, and (b) in taking such actions or making any such filings, furnishing information
required in connection therewith and seeking timely to obtain any such actions, consents, approvals
or waivers.

 

19

 

6.03 Public Announcements. No party shall issue any press release or otherwise announce
this transaction without mutual agreement to the terms of the press release, or make any public
statement with respect to this Agreement or the transactions contemplated hereby, except as may be
required by applicable law or the regulations of the NASDAQ Stock Market, Inc. or such other
securities exchange or trading market where the Parent Common Stock is regularly quoted.

6.04 Notice of Developments. Each party to this Agreement will give prompt written notice
to the other of any material adverse development causing a breach of any of its representations and
warranties under this Agreement.

6.05 Performance of Audit. Within ten (10) days of the execution of this Agreement,
Purchaser shall arrange for an Independent Accounting Firm acceptable to Parent and Purchaser to
perform an audit of the financial statements of Seller for the two (2) fiscal year periods ending
immediately prior to the signing of this Agreement. The fees of such firm shall be payable by
Purchaser. Seller and Seller’s Affiliates shall cooperate in all respects with such audit.

6.06 Employee Matters.

(a) Purchaser is obligated and shall assume all responsibility for all claims,
liabilities, costs, and obligations, including, without limitation, contractual and
common law obligations, which may arise from the dismissal or alleged dismissal after
the Closing Date of any Affected Employee who becomes employed by Purchaser for the
period of employment with the Purchaser only.

(b) Neither Purchaser nor Parent are, and shall not be deemed to be, a successor
employer to Seller with respect to any of Seller’s employee benefit plans or programs
(collectively, “Seller Plans”). Neither Purchaser nor Parent shall assume any
Seller Plan, including, without limitation, any severance plans of Seller.

(c) Seller will retain responsibility for, and continue to pay, any life, health or
other welfare benefits payable to each former employee (and their dependents) of Seller
who terminated employment with Seller on or prior to the Closing Date in respect of
claims incurred on their behalf on or prior to the Closing Date. For purposes of this
clause (g), a claim is deemed incurred when the event that first gave rise to the claim
occurred, notwithstanding the fact that such benefits may be paid at a subsequent date.
Seller is responsible for any liabilities that may arise with respect to application of
Part 6 of Subtitle B of Title I of the Employee Retirement Income Security Act
(“ERISA”) and the Consolidated Omnibus Budget Reconciliation Act
(“COBRA”) with respect to any of their employees or covered dependents as a
result of the transactions contemplated by this Agreement, as well as for any prior
COBRA violations which occurred prior to Closing. Purchaser is not a successor employer
for ERISA or COBRA purposes.

 

20

 

6.07 Tax Cooperation: Allocation of Taxes.

(a) Purchaser and Seller agree to furnish or cause to be furnished to each other,
upon request, as promptly as practicable, such information and assistance
relating to the Business and the Assets as is reasonably necessary for the filing
of all Tax Returns, and making of any election related to Taxes, the preparation for any
audit by any taxing authority, and the prosecution or defense of any claim, suit or
proceeding relating to any Tax Return. Seller and Purchaser shall cooperate with each
other in the conduct of any audit or other proceeding related to Taxes involving the
Assets and each shall execute and deliver such powers of attorney and other documents as
are reasonably necessary to carry out the intent of this Section 6.07(a).

(b) Purchaser shall pay all Transfer Taxes up to an aggregate amount of $10,000.
To the extent that the aggregate amount of Transfer Taxes exceeds $10,000,
responsibility for payment of such taxes shall be shared equally by Purchaser and
Seller.

ARTICLE 7

CLOSING

7.01 Closing. The closing of the transactions contemplated by this Agreement (the
“Closing”) shall take place at the offices of Sichenzia Ross Friedman & Ference, LLP,
located at 61 Broadway, Suite 3200, New York, NY 10006 (or such other location as may be agreed by
Parent, Purchaser and Seller), on the date hereof. The date on which the Closing occurs is
referred to in this Agreement as the “Closing Date.” The Closing may take place by
delivery and exchange of documents by facsimile or electronic mail with originals to follow by
overnight courier.

7.02 Deliveries and Actions by Seller. At the Closing, Seller shall deliver, or cause to
be delivered, to Purchaser:

(a) the Assets;

(b) a Bill of Sale substantially in the form of Exhibit 7.02(b);

(c) an Assignment and Assumption Agreement substantially in the form of Exhibit
7.02(c);

(d) the Employment Agreement, substantially in the form of Exhibit 7.02(d), duly
executed by Eric Simon;

(e) a Domain Name Assignment Agreement substantially in the form of Exhibit
7.02(e);

(f) the originals of all files and documents in its possession relating to the
Assets, including, without limitation, all operating statistics, equipment records,
equipment warranties and maintenance records, registrations, permits and certifications,
and operating manuals;

 

21

 

(g) copies of all consents and approvals required in connection with (i) the
execution, delivery and performance of this Agreement and (ii) the assignment of the
Assets and the Contracts;

(h) an Assignment of Trademarks and Service Marks in the form of Exhibit 7.02(h);

(i) a certificate of valid and subsisting status of Seller, certified by the
applicable Governmental Authority;

(j) a certificate of the Secretary or Assistant Secretary of Seller, certifying as
to (i) the Governing Documents (or similar organizational documents) of Seller, (ii) the
incumbency of all officers of Seller executing this Agreement and Related Documents
executed in connection herewith, (iii) the resolutions of the Members of Seller
authorizing the execution, delivery and performance of this Agreement and the
transactions contemplated hereby;

(k) an Assignment and Assumption of Contracts in the form of Exhibit 7.02(k)
attached hereto, together with all consents required to be obtained under the terms of
any Contract prior the to the transfer of such Contract pursuant to this Agreement; and

(l) such other separate instruments of sale, assignment or transfer reasonably
required by Purchaser;

7.03 Deliveries and Actions by Purchaser. At the Closing, Purchaser shall deliver or cause
to be delivered to Seller, unless otherwise specified:

(a) 20,000,000 shares of Parent Common Stock to the account designated by Seller;

(b) the Employment Agreement, executed by Parent;

(c) the Assignment and Assumption of Contracts Agreement;

(d) the Assignment and Assumption Agreement;

(e) a certificate of the Secretary or Assistant Secretary of Purchaser, certifying
as to (i) the Governing Documents (or similar organizational documents) of Purchaser,
(ii) the incumbency of all officers of Purchaser executing this Agreement and any
agreement executed in connection herewith, (iii) the resolutions of the Board of
Directors (or similar governing body) of Purchaser authorizing the execution, delivery
and performance by such Purchaser of this Agreement and the transactions contemplated
hereby, and (iv) the resolutions of the shareholders of Purchaser authorizing the
execution, delivery and performance of this Agreement and the transactions contemplated
hereby;

 

22

 

(f) a certificate of valid and subsisting status of Purchaser certified by the
applicable Governmental Authority;

(g) a certificate to the effect that each of the conditions specified in this
Section 7.03 have been satisfied in all respects.

ARTICLE 8

INDEMNIFICATION

8.01 Indemnification by Seller. Seller hereby agrees to indemnify, defend and hold
harmless Parent and Purchaser and each of their respective officers, directors, stockholders,
partners, members, employees, agents and affiliates (collectively, “Purchaser Indemnified
Persons”) from and against any losses, liabilities, claims, obligations, damages, strict
liability, fines, penalties, assessments, deficiencies, actions, causes of action, arbitrations,
proceedings, remediations, judgments, settlements, violations or alleged violations of law, costs
and expenses (including, without limitation, reasonable attorneys’ fees and all other expenses
incurred in investigating, preparing, or defending any litigation or proceeding, commenced or
threatened) (collectively, “Damages”) arising out of or resulting from:

(a) any breach of any representation or warranty Seller has made in this Agreement,
the Related Documents or in any other certificate or document Seller has delivered
pursuant to this Agreement;

(b) any breach by Seller of any of their respective covenants or obligations in
this Agreement, the Related Documents or in any agreement or other document executed or
delivered pursuant to this Agreement;

(c) the operation or ownership of, or conditions existing, arising or occurring
with respect to, the Assets on or prior to the Closing Date, except for the Assumed
Liabilities;

(d) any claims, debts, liabilities, or obligations relating to the Assets or the
operation of the Business, whether accrued, absolute, contingent, or otherwise, due,
accrued or arising on or prior to the Closing Date, except for the Assumed Liabilities;

(e) non-compliance with the provisions of the bulk sales or bulk transfer laws of
any jurisdiction, to the extent applicable to the transactions contemplated hereby;

(f) except as specifically provided in Section 6.06, (i) the employment or other
engagement of any type by Seller of any employee, agent or other representative, and
(ii) the termination of employment or other engagement by Seller of any employee, agent
or other representative of Seller, whether or not such employee, agent or other
representative is hired or otherwise engaged by Purchaser or one of their affiliates,
and whether or not arising under a Seller Plan or applicable law;

 

23

 

(g) any claim by any person for brokerage or finder’s fees or commissions or
similar payments based upon any agreement or understanding made or alleged to have been
made by any such person with Seller or its Affiliates in connection with the
transactions contemplated by this Agreement; and

(h) any allegation by a third party of any of the foregoing.

8.02 Indemnification by Purchaser and Parent. Each of Purchaser and Parent, jointly and
severally, hereby agrees to indemnify, defend and hold harmless Seller, and its respective
officers, directors, stockholders, partners, members, employees, agents and affiliates
(collectively, the “Seller Indemnified Persons”) from and against any Damages arising out
of or resulting from:

(a) any breach of any representation or warranty Purchaser or Parent has made in
this Agreement, the Related Documents or in any other certificate or document Purchaser
or Parent has delivered pursuant to this Agreement;

(b) any breach by Purchaser or Parent of its covenants or obligations in this
Agreement, the Related Documents or in any agreement or other document executed or
delivered pursuant to this Agreement;

(c) the operation or ownership of, or conditions existing, arising or occurring
with respect to, the Assets after the Closing Date;

(d) any claims, debts, liabilities, or obligations relating to the Assets or the
operation of the Business, whether accrued, absolute, contingent, or otherwise, due,
accrued or arising after the Closing Date;

(e) the Assumed Liabilities;

(f) any claim by any person for brokerage or finder’s fees or commissions or
similar payments based upon any agreement or understanding alleged to have been made by
any such person with Purchaser or Parent or their Affiliates in connection with the
transactions contemplated by this Agreement; and

(g) any allegation by a third party of any of the foregoing.

8.03 Indemnification Procedure for Third-Party Claims. Promptly after receipt by a party
entitled to indemnification hereunder (the “Indemnified Party”) of written notice of the
institution of any legal proceeding, or of any claim or demand, asserted by a third party (a
“Third Party Claim”) against the Indemnified Party with respect to which a claim for
indemnification is to be made pursuant to Section 8.01 or 8.02 herein, the Indemnified Party shall
give written notice to the other party (the “Indemnifying Party”) of such Third Party
Claim. The Indemnifying Party shall be entitled to participate in and to assume the defense of
such Third Party Claim with counsel reasonably satisfactory to the Indemnified Party, and after
notice from the Indemnifying Party to such Indemnified Party of such assumption of defense, and
provided that the Indemnifying Party continues to diligently pursue such defense, the Indemnifying
Party shall not be liable to such Indemnified Party for any legal or

 

24

 

 other
expenses subsequently incurred by the latter in connection with the defense thereof. Notwithstanding the foregoing, an
Indemnified Party shall in all cases be entitled to control its defense, including, without
limitation, the selection of separate counsel (at the cost and expense of the Indemnifying Party),
of any Third Party Claim if such claim: (i) is reasonably likely to result in injunctions or other
equitable remedies in respect of the Indemnified Party which would significantly and adversely
affect its business or operations in any materially adverse manner; (ii) is reasonably likely to
result in material liabilities which may not be fully indemnified hereunder; (iii) is reasonably
likely have a significant adverse impact on the business or the financial condition of the
Indemnified Party (including, without limitation, a Material Adverse Effect on the tax liabilities,
earnings or ongoing business relationships of the Indemnified Party) even if the Indemnifying Party
pays all indemnification amounts in full or (iv) the anticipated defendants in any such situation,
proceeding or action include, without limitation, both the Indemnified Party and the Indemnifying
Party, and the Indemnified Party shall have reasonably concluded that there may be legal defenses
available to it which are in conflict with those available to the Indemnifying Party; provided,
however, that in no event shall an Indemnifying Party be required to pay fees and expenses under
this indemnity for more than one firm of attorneys (in addition to local counsel) in any
jurisdiction in any one legal action or group of related legal actions. No Indemnifying Party or
Indemnified Party will enter into any settlement with respect to such Third Party Claim without the
prior written consent of the other party unless such settlement (a) requires solely the payment of
money damages by the Indemnifying Party or the Indemnified Party, as the case may be and (b)
includes, without limitation, as an unconditional term thereof the release by the claimant or the
plaintiff of the Indemnified Party or the Indemnifying Party, as the case may be, and the persons
for whom the Indemnified Party or the Indemnifying Party, as the case may be, is acting or who are
acting on behalf of the Indemnified Party or the Indemnifying Party, as the case may be, from all
liability in respect of the proceeding giving rise to the Third Party Claim.

8.04 Limitations on Indemnification.

(a) Seller will not be liable for indemnification arising under Section 8.01 for
any Damages of or to any Purchaser Indemnified Person entitled to indemnification from
Seller unless the aggregate amount of such Damages for which Seller would be liable
exceeds $50,000, in which case Seller will be liable for only those Damages incurred by
Purchaser Indemnified Persons in excess of such amount.

(b) Seller’s total aggregate liability under Section 8.01 and otherwise hereunder
shall be limited to, and any Purchaser Indemnified Parties’ sole recourse for any
indemnification claim or other claim hereunder shall be to, the Parent Common Stock
delivered as Purchase Price and the Parent Common Stock delivered to Eric Simon at
Closing pursuant to the Employment Agreement.

(c) Solely for purposes of Seller providing indemnification hereunder, each share
of the Parent Common Stock shall be valued at the greater of (i) the closing price for
the Parent Common Stock on the business day prior to the date hereof, and (ii) the
closing price for the Parent Common Stock on the business day prior to the date that
Parent sends notice to Seller regarding the applicable indemnification claim.

 

25

 

8.05 Damages.

(a) Damages shall not include any consequential, punitive or exemplary damages.

(b) The amount of any Damages incurred or suffered by any Person shall be reduced
by: (i) any insurance proceeds received by such Person in connection with the breach,
failure or other event which gave rise to such Damage, which such Person should use
their best efforts to obtain; and (ii) any reduction in Taxes payable by such Person as
a result of the deductibility of such Loss against taxable income.

(c) The amount of any Damages incurred or suffered by any Person shall be increased
by any Tax cost incurred or reasonably expected to be incurred as a result of or related
to any such Damages, including any Tax related to the inclusion in gross income or
reduction in asset basis attributable to the receipt of insurance proceeds or an
indemnification payment pursuant to this Article VIII.

8.06 Exclusive Remedy. The parties acknowledge and agree that the indemnification
provisions contained in this Article VIII shall be the sole and exclusive remedy for Damages
arising out of or caused by the breach of any of the representations, warranties, covenants or
agreements of the parties contained in this Agreement, the Related Documents or in any certificate
delivered in connection herewith or therewith, except as provided in Section 4.01(c).

ARTICLE 9

MISCELLANEOUS

9.01 Survival. The representations and warranties of Purchaser and Seller contained in
this Agreement shall survive the Closing for a period of twelve (12) months after the Closing Date;
provided, however, that the representations and warranties made in Section 2.01
(Existence and Power of Seller), Section 2.02 (Authorization), Section 2.03(a) (Non-Contravention),
Section 2.08(a) (Ownership of Assets), Section 2.15 (Tax Matters), Section 2.16 (Transactions with
Affiliates), Section 3.01 (Organization of Parent and Purchaser), Section 3.02 (Authorization), and
Section 3.03(a) (Non-Contravention) shall survive the Closing until the longest applicable statute
of limitations with respect to the matters set forth therein.

9.02 Notices All notices, requests and other communications to either party hereunder
shall be in writing (including, without limitation, facsimile, telecopy or similar writing) and
shall be deemed given when delivered:

	 	 	 
	If to Purchaser, to:

	 	Gregory D. Cohen, Chief Executive Officer
3900A 31st Street North
	 

	 	St. Petersburg, FL 33714
	 
	 	 
	 

	 	with a copy (which shall not constitute notice) to:
	 
	 	 
	 

	 	Sichenzia Ross Friedman & Ference, LLP
61 Broadway, Suite 3200
	 

	 	New York, NY 10006
	 

	 	Attn: Harvey J. Kesner, Esq.
	 

	 	Telecopier: (212) 930-9700
	 

	 	Telephone: (212) 930-9725
	 
	 	 

 

26

 

	 	 	 
	If to Seller, to:

	 	Eric Simon
110 Greene Street
	 

	 	Suite 403
	 

	 	NY, NY 10012
	 
	 	 
	 

	 	with a copy (which shall not constitute notice) to:
	 
	 	 
	 

	 	Grubman Indursky & Shire, P.C.
152 West 57th Street
	 

	 	New York, NY 10019
	 

	 	Attn: Robert Strent, Esq.
	 

	 	Telecopier: (212) 554-0444
	 

	 	Telephone: (212) 554-0400

Each of the above persons may change their address or facsimile number or telephone number by
notice to the other persons in the manner set forth above.

9.03 Amendments; No Waivers.

(a) No provision of this Agreement may be amended or waived unless such amendment
or waiver is in writing and signed, in the case of an amendment, by all parties hereto,
or in the case of a waiver, by the party against whom the waiver is to be effective.

(b) No failure or delay by any party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof nor shall any single or partial exercise
thereof preclude any other or further exercise thereof or the existence of any other
right, power or privilege. The rights and remedies herein provided shall be cumulative
and not exclusive of any rights or remedies provided by law.

9.04 Expenses. Except as otherwise provided herein, all costs and expenses incurred in
connection with this Agreement shall be paid by the party incurring such cost or expense.

9.05 Successors and Assigns. The provisions of this Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their respective successors and permitted
assigns. No party to this Agreement may assign, delegate or otherwise transfer any of its rights
or obligations under this Agreement without the consent of the other party hereto; provided that
Purchaser may assign its rights and obligations under this Agreement to any of its subsidiaries or
Affiliates, provided that any such assignee agrees in writing to be bound by all of the terms of
this Agreement and that no such assignment shall relieve Purchaser of its obligations hereunder
which shall thereafter be joint and several as between Purchaser and its assignee. Neither this
Agreement nor any provision hereof is intended to confer upon any person other than the parties
hereto any rights or remedies hereunder.

 

27

 

9.06 Governing Law. This Agreement shall be construed and enforced in accordance with and
governed by the law of the State of New York without regard to any provision thereof that would
allow or require the application of the law of any other jurisdiction. The parties hereby agree
that any dispute between or among them arising out of or in connection with this Agreement shall be
adjudicated only before a Federal court located in New York, New York, and they hereby submit to
the exclusive jurisdiction of the federal courts located in New York, New York, with respect to any
action or legal proceeding commenced by any party, and irrevocably waive any objection they now or
hereafter may have respecting the venue of any such action or proceeding brought in such a court or
respecting the fact that such court is an inconvenient forum, relating to or arising out of this
Agreement, and consent to the service of process in any such action or legal proceeding by means of
registered or certified mail, return receipt requested, in care of the address set forth above or
such other address as the undersigned shall furnish in writing to the other.

9.07 Specific Performance. Each of the parties acknowledges and agrees that the other
parties would be damaged irreparably in the event any of the provisions of this Agreement are not
performed in accordance with their specific terms or otherwise are breached. Accordingly, each of
the parties agrees that the other parties shall be entitled to an injunction or injunctions to
prevent breaches of the provisions of this Agreement and to enforce specifically this Agreement and
the terms and provisions hereof, in addition to any other remedy to which it may be entitled, at
law or in equity.

9.08 Counterparts; Effectiveness. This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the signatures thereto
and hereto were upon the same instrument. Facsimile copies of signature pages shall have the same
legal effect as signed originals. This Agreement shall become effective when each party hereto
shall have received a counterpart hereof signed by the other parties hereto.

9.09 Entire Agreement. This Agreement, the Schedules and Exhibits hereto, the Related
Documents and any other documents referred to herein constitute the entire agreement between the
parties with respect to the subject matter hereof and supersede all prior agreements,
understandings and negotiations, both written and oral, between the parties with respect thereto.
No representation, inducement, promise, understanding, condition or warranty not set forth herein
has been made or relied upon by either party hereto.

9.10 Construction. The parties have participated jointly in the negotiation and drafting
of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of
proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the
provisions of this Agreement. The following rules of construction shall apply to this Agreement:

(a) Any reference to any federal, state, provincial or local statute or law shall
be deemed also to refer to all rules and regulations promulgated thereunder, in each
case as amended from time to time, unless the context requires otherwise.

 

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(b) The headings and titles herein are for convenience only and shall have no
significance in the interpretation hereof.

(c) Unless otherwise provided, all references in this Agreement to “Articles” and
“Sections” are to articles and sections of this Agreement; and all references to
“Exhibits”, “Schedules” or “Annexes” are to exhibits, schedules or annexes attached to
this Agreement, each of which is made a part of this Agreement for all purposes.

(d) Unless the context otherwise requires, the words “this Agreement,” “hereof,”
“hereunder,” “herein,” “hereby” or words or phrases of similar import shall refer to
this Agreement as a whole and not to a particular Article, Section, subsection, clause
or other subdivision hereof.

(e) Terms defined in the singular shall have the corresponding meaning when used in
the plural and vice versa. Any definition of one part of speech of a word, such as
definition of the noun form of that word, shall have a comparable or corresponding
meaning when used as a different part of speech, such as the verb form of that word.

(f) References to any gender include, without limitation, all others if applicable
in the context.

(g) Unless the context otherwise requires, references to agreements shall be deemed
to mean and include, without limitation, such agreements as the same may be amended,
supplemented and otherwise modified from time to time, and references to parties to
agreements shall be deemed to include, without limitation, the permitted successors and
assigns of such parties.

(h) Where the character or amount of any asset or liability or item of income or
expense is required to be determined or any consolidation or other accounting
computation is required to be made for the purposes of this Agreement, the same shall be
done in accordance with GAAP, except where such principles are inconsistent with the
specific provisions of this Agreement or any applicable law.

9.11 Severability. Any part of this Agreement which is found to be void, invalid, illegal
or unenforceable, shall be severed from this Agreement and ineffective to the extent of that
voidness, invalidity, illegality or unenforceability. Such voidness, invalidity, illegality or
unenforceability will not invalidate, affect or impair the remaining provisions of this Agreement.
If a court of competent jurisdiction determines that the terms in respect of which covenants in
this Agreement are to be entered are unreasonable or unenforceable for any reason, then this
Agreement shall be reread and construed with such terms, as may be applicable, as determined to be
reasonable by a court of competent jurisdiction and the Agreement shall be amended and construed
accordingly hereby.

 

29

 

9.12 Certain Definitions.

“Affiliate” means, with respect to a Person, another Person that, directly or indirectly,
through one or more intermediaries, controls or is controlled by, or is under common control with,
such first Person. For this definition, “control” (and its derivatives) means the possession,
directly or indirectly, or as trustee or executor, of the power to direct or cause the direction of
the management and policies of a Person, whether through ownership of voting Equity Interests, as
trustee or executor, by Contract or credit arrangements or otherwise.

“Applications” shall have the meaning assigned to such term in Section 2.10(e).

“Assets” shall have the meaning assigned to such term in Section 1.01.

“Assumed Liabilities” shall have the meaning assigned to such term in Section 1.03.

“Balance Sheet Date” means December 31, 2009.

“Business Day” means a day other than Saturday, Sunday or any day on which banks located in
the City of New York, New York are authorized or obligated to close.

“Business Records” means the business records, regardless of the medium of storage, relating
to the Assets and or the Business, including without limitation, all schematics, drawings, customer
data, subscriber lists, statistics, promotional graphics, original art work, mats, plates,
negatives, accounting and financial information concerning the Assets or Business.

“Closing” shall have the meaning assigned to such term in Section 7.01.

“Closing Date” shall have the meaning assigned to such term in Section 7.01.

“Closing Escrow Payment” shall have the meaning assigned to such term in Section

“COBRA” shall have the meaning assigned to such term in Section 6.06(c).

“Code” shall have the meaning assigned to such term in Section 1.05(a).

“Contracts” shall have the meaning assigned to such term in Section 1.01(b).

“Current Assets” means, in each case relating to the Business and constituting part of the
Assets, cash and cash equivalents; accounts receivable; inventory and work-in-progress; prepaid
assets; and marketable securities as determined using the principles of GAAP; provided, however,
that Current Assets shall not include (i) derivative assets, (ii) current portions of deferred tax
assets, (iii) assets held for sale or disposal or (iv) deposits held to support liens, taxes,
assessments and governmental charges due and being contested.

“Current Liabilities” means, in each case relating to the Business and constituting part of
the Assumed Liabilities, accounts payable and accrued expenses; accrued interest; other current
liabilities; and any other third party debt (both current and long-term in nature) to the extent
that it is required to be paid in cash within 12 months as determined using the principles of GAAP;
provided, however, that Current Liabilities shall not include (i) current portions of deferred tax
liabilities, (ii) accrued income taxes, (iii) derivative liabilities or (iv) liabilities of
assets held for sale or disposal.

 

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“Encumbrances” means any mortgages, pledges, liens, encumbrances, charges or other security
interests.

“Equity Interest” means (a) with respect to a corporation, any and all shares of capital stock
and any Commitments with respect thereto, (b) with respect to a partnership, limited liability
company, trust or similar Person, any and all units, interests or other partnership/limited
liability company interests, and any Commitments with respect thereto, and (c) any other equity
ownership or participation in a Person.

“Employment Agreement” means the employment agreement to be entered into by and between Parent
and Eric Simon as of the Closing Date.

“ERISA” shall have the meaning assigned to such term in Section 6.06(c).

“Escrow Account” shall have the meaning assigned to such term in Section 0.

“Escrow Agent” shall have the meaning assigned to such term in Section 0.

“Escrow Funds” shall have the meaning assigned to such term in Section 0.

“Exchange Act” shall have the meaning assigned to such term in Section 3.07.

“Excluded Assets” shall have the meaning assigned to such term in Section 1.02.

“Damages” shall have the meaning assigned to such term in Section 8.01.

“Funding Amounts” shall have the meaning assigned to such term in Section 5.02.

“Governing Documents” shall have the meaning assigned to such term in Section 2.03(a).

“Governmental Authority” shall mean any federal, state, municipal, local, territorial or other
governmental department, commission, board, bureau, agency, registry, regulatory authority,
instrumentality, judicial or administrative body or other subdivision of the United States, the
United Kingdom, Canada, and any other jurisdiction from which the Seller derives a significant
portion of its revenues.

“In-bound Intellectual Property License” shall mean any and all licenses, sublicenses and
other agreements pursuant to which Seller is entitled to utilize the Intellectual Property of any
other Person in the conduct of the Business.

“Indemnified Party” shall have the meaning assigned to such term in Section 8.03.

“Indemnifying Party” shall have the meaning assigned to such term in Section 8.03.

“Independent Accounting Firm” means an independent, nationally recognized accounting firm,
registered with the Public Company Accounting Oversight Board, which shall not have
been engaged by Purchaser or Seller at any time in the three (3) years preceding the date the
execution of this Agreement.

 

31

 

“Intellectual Property” means all internet domain names and URLs of, used or relating to the
Business, software, inventions, patents, patent applications, continuations of patents or patent
applications, divisionals of patents or patent applications, foreign corresponding patents,
processes (patentable or not), shop rights, formulas, brand names, trade secrets, know-how, logos,
trade dress, look and feel, moral rights, service marks, trade names, trademarks, trademark
applications, service mark applications, copyrights, copyright registrations, source and object
codes, database schema, mask works, moral rights, customer lists, drawings, ideas, algorithms,
computer software programs or applications (in code and object code form), tangible or intangible
proprietary information and any other intellectual property and similar items and related rights.

“Intellectual Property Assets” means all Intellectual Property and In-bound Intellectual
Property Licenses owned by or licensed to Seller or used in the Business, together with any
goodwill associated therewith and all rights of action on account of past, present and future
unauthorized use or infringement thereof.

“Joint Instruction” shall have the meaning assigned to such term in the Purchase Price Escrow
Agreement.

“Knowledge” means the actual knowledge held by any individual who is an officer, director or
management employee of the specified Person or its Affiliates, after reasonable and appropriate
inquiry, of any fact, circumstance or condition.

“Law” means any law (statutory, common, or otherwise), constitution, treaty, convention,
ordinance, equitable principle, code, rule, regulation, executive order, or other similar authority
enacted, adopted, promulgated, or applied by any Governmental Authority, each as amended and now in
effect.

“Losses” means all damage, loss, liability and expense, including, without limitation,
penalties, interest, reasonable expenses of investigation and reasonable attorneys’ fees and
expenses in connection with any action, suit or proceeding incurred or suffered by any of the
Purchaser Indemnified Parties arising out of (i) any breach of any representation or warranty,
covenant or agreement made or to be performed by Seller pursuant to this Agreement, (ii) the
ownership or the operation of the Business or the ownership or use of each Business Facility or the
Assets of Seller on or prior to the Closing Date.

“Material Adverse Effect” with respect to any Person shall mean any change or effect (or any
development that, insofar as can reasonably be foreseen, is likely to result in any change or
effect) that could reasonably be expected to be materially adverse to the business, properties,
assets, condition (financial or otherwise) or results of operations or prospects of that Person and
its subsidiaries, taken as a whole, other than any change or effect resulting from any public
announcement of this Agreement or the transactions contemplated by this Agreement.

“Net Current Assets” means the amount, if any, by which Current Assets exceeds Current
Liabilities.

 

32

 

“Organizational Documents” means the articles of incorporation, certificate of incorporation,
charter, bylaws, articles of formation, articles of association, regulations, operating agreement,
certificate of limited partnership, partnership agreement, limited liability company agreement and
all other similar documents, instruments or certificates executed, adopted, or filed in connection
with the creation, formation, or organization of a Person, including, without limitation, any
amendments thereto.

“Parent Common Stock” means the common stock, par value $0.001 per share, of Parent.

“Permits” shall have the meaning assigned to such term in Section 1.01(d).

“Permitted Encumbrances” shall mean:

a) liens for taxes, assessments and governmental charges due and being contested in
good faith and diligently by appropriate proceedings (and for which a cash deposit
(reasonably acceptable to Purchaser in amount) that is being transferred to Purchaser at
Closing has been set aside).

b) servitudes, easements, restrictions, rights-of-way and other similar rights in real
property or any interest therein;

c) liens for taxes either not due and payable or due but for which notice of assessment
has not been given;

d) undetermined or inchoate liens, charges and privileges incidental to current
construction or current operations and statutory liens, charges, adverse claims, security
interests or encumbrances of any nature whatsoever claimed or held by any Governmental
Authority that have not at the time been filed or registered against the title to the asset
or served upon Seller pursuant to law or that relate to obligations not due or delinquent;
and

e) security given in the ordinary course of the Business to any public utility,
municipality or government or to any statutory or public authority in connection with the
operations of the Business, other than security for borrowed money.

“Person” shall mean and include, without limitation, any individual, partnership, joint
venture, firm, corporation, limited liability company, association or other unincorporated
organization, trust or other enterprise or any Governmental Authority.

“Purchase Price” shall have the meaning assigned to such term in Section 0.

“Purchaser Indemnified Persons” shall have the meaning assigned to such term in Section 8.01.

“Real Property” means all owned real property and real property leases used or held for use in
conduct of the Business including, without limitation, all buildings, fixtures and improvements
erected thereon.

 

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“Real Property Leases” means all leases for Real Property.

“Related Documents” shall have the meaning assigned to such term in Section 2.02.

“SEC Documents” shall have the meaning assigned to such term in Section 3.07

“Securities Act” means the Securities Act of 1933, as amended.

“Seller Indemnified Persons” shall have the meaning assigned to such term in Section 8.02.

“Seller Plans” shall have the meaning assigned to such term in Section 6.06(b).

“Tax” shall have the meaning assigned to such term in Section 2.15.

“Tax Return” shall have the meaning assigned to such term in Section 2.15.

“Third Party Claim” shall the meaning assigned to such term in Section 8.03.

“Transfer Tax” shall mean any transfer, documentary, sales, use or other taxes arising in
connection with the transactions contemplated by this Agreement and any recording or filing fees
with respect thereto.

“Withheld Consent Contracts” shall have the meaning assigned to such term in Section 1.06.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers effective as of the day and year first above written but executed on
the dates set forth below.

	 	 	 	 	 
	 	

PURCHASER:

SD ACQUISITION CORP.

 	 
	 	By:  	/s/ Gregory D. Cohen
 	 
	 	 	Name:  	Gregory D. Cohen 	 
	 	 	Title:  	President 	 
	 
	 	PARENT:

ECLIPS MEDIA TECHNOLOGIES, INC.

 	 
	 	By:  	/s/ Gregory D. Cohen
 	 
	 	 	Name:  	Gregory D. Cohen 	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	
SELLER:

BRAND INTERACTION GROUP, LLC

 	 
	 	By:  	/s/ Eric Simon
 	 
	 	 	Name:  	Eric Simon 	 
	 	 	Title:  	Member 	 
	 

 

35

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