Document:

Unassociated Document

     

    ASSET
      PURCHASE AGREEMENT

    

    THIS
      ASSET PURCHASE AGREEMENT (“Agreement”),
      dated
      as of March 12, 2008 (the “Closing
      Date”),
      is
      entered into by and among GREGORY
      C. HUTSON
      (“Seller”),
      GEEKS
      ON CALL HOLDINGS, INC.,
      a
      Delaware corporation (“Parent”)
      and
GEEKS
      ON CALL AMERICA, INC.,
      a
      Delaware corporation and a wholly-owned subsidiary of Parent (“Buyer”).

    

    WHEREAS,
      Seller
      has developed and is the owner of the entire right, title and interest in and
      to
      that certain software known as “quiXsupport Helpdesk Software” and related
      intellectual property assets; and

    

    WHEREAS,
      Seller
      desires to sell to Buyer, and Buyer desires to purchase from Seller, the
      Purchased Assets (defined below), on the terms and conditions set forth herein;
      and

    

    NOW,
      THEREFORE,
      in
      consideration of the foregoing recitals and the mutual covenants, conditions
      and
      agreements set forth in this Agreement, and other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      parties hereto hereby agree as follows:

    

    1. SALE
      AND PURCHASE.

    

    1.1 Closing.
      At the
      closing of the transactions contemplated in this Agreement (the “Closing”),
      which
      is occurring contemporaneously with the execution of this Agreement on the
      Closing Date, Seller is selling, assigning, transferring, conveying, and
      delivering the Purchased Assets to Buyer, and Buyer is purchasing the Purchased
      Assets from Seller. The Closing may take place by conference call, telecopy
      and
      wiring of funds with the exchange of original signatures to required Closing
      documents to be made by overnight courier. At the Closing, Seller is delivering,
      or causing to be delivered, the following items to Buyer: (i) a Bill of Sale
      and
      Assignment (the “Bill
      of Sale”),
      executed by Seller; (ii) a
      Consulting Agreement by and between Buyer and Seller, executed by Seller (the
      “Consulting
      Agreement”);
      (iii)
      evidence of the termination of that certain Software License Agreement dated
      May
      20, 2003, between Seller and Cloverlick Interactive, Inc. (“Cloverlick”),
      (iv)
      an Assignment and Release Agreement for the benefit of Buyer, executed by
      Cloverlick; and (v)
      all
      such other documents, agreements, certificates or materials reasonably requested
      by Buyer to transfer, assign and convey good and marketable title to the
      Purchased Assets to Buyer, free and clear of all Liens, and to consummate the
      transactions contemplated hereby. At
      the
      Closing, Buyer is delivering, or causing to be delivered, the following items
      to
      Buyer the following items to Seller: (i) the Closing Date Payment; (ii) the
      Consulting Agreement, executed by an appropriate officer of Buyer; and (iii)
      the
      Shares. 

    

    1.2 Purchased
      Assets.
      For
      purposes of this Agreement, the term “Purchased
      Assets”
shall
      mean and include all of the following:

    

    (a) that
      certain software or protocol known as “quiXsupport Helpdesk Software,” which is
      more fully described on Exhibit
      A
      hereof,
      in source code form, object code form and/or any other existing form or medium,
      together with any directly related computer software, programs and program
      code
      (in any form or medium) (collectively, the “Acquired
      Software”),
      and
      all technical and descriptive materials and documentation relating to the
      acquisition, design, development, use, or maintenance of the Acquired Software
      (the “Documentation”);

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    (b) all
      contracts, agreements, licenses, and other commitments and arrangements, oral
      or
      written, with any Person, respecting the ownership, license, acquisition,
      design, development, distribution, marketing, use, or maintenance of the
      Acquired Software and/or the Documentation, including without limitation, all
      contracts, agreements, and licenses with respect to the Third-Party Plug-Ins
      and
      Platforms;

     

    (c) all
      rights, title and interest in, and the use of the trade names and Domain Names
      “RemoteMe.com”,
      “Virtual-Geek.com” or “MrHelpdesk.com”
      and
      trade or service marks relating thereto, and any other trade names, Domain
      Names
      or logos which have been or currently are used in connection with Acquired
      Software, together with all translations, adaptations, derivations and
      combinations thereof, including all goodwill associated therewith;

    

    (d) all
      other
      Seller Helpdesk Intellectual Property and all rights thereunder or in respect
      thereof including, without limitation, rights to sue for and remedies against
      past, present and future infringements thereof, and rights of priority and
      protection of interests therein under the laws of any jurisdiction worldwide
      and
      all tangible embodiments thereof; and

     

    (e) all
      guarantees, warranties, indemnities and similar rights in favor of Seller with
      respect to any Purchased Asset.

    

    Notwithstanding
      anything to the contrary contained herein, as further described in Section
      1.5
      below, Seller is not selling, assigning, transferring or conveying, and Buyer
      is
      not accepting or purchasing, the Excluded Assets.

     

    1.3 No
      Assumption of Liabilities.
      Buyer
      is not assuming, and will not be deemed by virtue of the execution of this
      Agreement to have assumed, any claims, liabilities or obligations of Seller,
      whether known, unknown, absolute, contingent, accrued or otherwise, and whether
      or not related to the Purchased Assets, and all such claims, liabilities and
      obligations shall remain the claims, liabilities and obligations of Seller
      (the
“Excluded
      Liabilities”).

     

    1.4 Purchase
      Price.
      On
      the
      Closing Date, in consideration of the Purchased Assets, Parent, on behalf of
      Buyer, shall (a) pay One Hundred Thousand Dollars ($100,000) by wire transfer
      of
      immediately available funds (the “Closing
      Date Payment”)
      to
      Seller; and (b) issue one hundred twenty-five thousand (125,000) shares of
      stock
      of Parent (the “Shares”)
      to
      Seller (the Closing Date Payment and the Shares are collectively the
“Purchase
      Price”).
      

    

    1.5 Purchase
      Price Allocation.
      Within
      forty-five (45) calendar days after the Closing Date, Buyer shall in good faith
      prepare a schedule (the “Allocation
      Schedule”)
      allocating the Purchase Price among the Purchased Assets, which Allocation
      Schedule shall be final and binding upon the parties. Each of the parties agrees
      to cooperate with each other and to report the transactions contemplated hereby
      consistent with the allocation set forth on the Allocation Schedule in computing
      their taxable income and otherwise in preparing and filing their tax returns
      for
      federal, state and local income tax purposes, and no party shall thereafter
      take
      a return position inconsistent with such allocation. 

    
      
        
        

      

      
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    2. REPRESENTATIONS
      AND WARRANTIES.

    

    2.1 Seller.
      The
      representations and warranties of Seller are set forth on Exhibit
      B
      hereof.

    

    2.2 Buyer.
      The
      representations and warranties of Buyer are set forth on Exhibit
      C
      hereof.

    

    3. ADDITIONAL
      COVENANTS AND AGREEMENTS.

    

    3.1 Use
      of Names.
      After
      the Closing, Seller will not, directly or indirectly, use or do business, or
      allow any Affiliate to use or do business, or assist any third party in using
      or
      doing business under the names and marks “RemoteMe”,
      “Virtual-Geek” or “MrHelpdesk”
      (or any
      other name confusingly similar to such names and marks), and Seller shall cause
      all public records to be amended to reflect the proper ownership of such names
      and marks.

    

    3.2 Transition.
      Seller
      shall use commercially reasonable efforts to make an orderly transition of
      the
      Purchased Assets to Buyer. 

    

    3.3 Confidentiality.
      Seller
      agrees, at all times after the Closing Date, to treat and hold as confidential
      all “Proprietary Information” (as defined herein) and to refrain from using or
      disclosing (or aiding others in using or disclosing) any and all such
      Proprietary Information. For purposes hereof, “Proprietary
      Information”
means
      and includes all information about, or with respect to, the Purchased Assets,
      regardless of the medium in which such information exists; provided, however,
      that Proprietary Information shall not include information that is or becomes
      generally available to the public, other than as a result of a disclosure by
      Seller, any Affiliate of Seller, or his agents or representatives. In the event
      that Seller is required in any legal proceeding (including, without limitation,
      interrogatory, subpoena, civil investigative demand, or similar process) to
      disclose any Proprietary Information, Seller shall notify Buyer promptly of
      the
      request or requirement so that Buyer may seek an appropriate protective order
      or
      waive compliance with the provisions hereof.

    

    3.4 Covenant
      Not to Compete. 

    

    (a) Seller
      acknowledges and agrees that Buyer would not consummate the transactions
      contemplated hereby unless Seller agrees to ensure that Buyer’s ability to
      utilize the Purchased Assets being transferred to Buyer hereunder shall not
      in
      any way be adversely affected or diminished by Seller’s actions after the
      Closing. Seller acknowledges that these obligations bind not only him, but
      also
      his present or future successors, assigns and Affiliates. Further, Seller agrees
      that the foregoing restrictions are necessary and reasonably required for the
      protection of the legitimate business interests of Buyer. Accordingly, Seller
      agrees that for a period of three (3) years after the Closing Date, Seller
      shall
      not directly or indirectly, on his own behalf or as a partner, officer,
      director, stockholder, member, employee, agent or consultant of any other
      Person, anywhere within the United States:

    
      
        
        

      

      
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    (i) develop,
      produce, sell, license, or assist in the development, production, sale, or
      licensing of any software that competes with the Acquired Software or any
      similar product of Buyer, or the services provided by Buyer in connection
      therewith;

    

    (ii) provide
      any service that competes with the services provided by Buyer using or related
      to the Acquired Software or any similar product of Buyer; 

    

    (iii) solicit
      for itself or any Person (other than Buyer or any of its Affiliates), the
      business of any customer of Buyer or any of its Affiliates, for the marketing,
      sale or licensing of a software product or service the same as, or competitive
      with, the Acquired Software or any similar product of Buyer, or the services
      provided by Buyer in connection therewith;

    

    (iv) solicit,
      hire, entice, or aid, or cooperate with others in soliciting, hiring, enticing
      or aiding, any (i) employee of Buyer or any of its Affiliates to leave Buyer’s
      or any of its Affiliates’ employ, or (ii) any Person who at any time during the
      six-month period immediately prior to the making of such solicitation, was
      employed by Buyer or any of its Affiliates;

    

    (v) make
      any
      disparaging remarks about the businesses, services, products, stockholders,
      officers, directors or other personnel of Buyer or any of its
      Affiliates.

     

    Notwithstanding
      anything herein to the contrary, the parties acknowledge and agree that Seller
      may own or hold, as a passive investment, not more than one percent (1.0%)
      of
      the outstanding securities of any Person that competes with the Acquired
      Software or any similar product of Buyer, or the services provided by Buyer
      in
      connection therewith, if the securities of such Person are publicly
      traded.

    

    (b) Seller
      acknowledges and agrees that if he breaches any of the provisions of Section
      3.3
      or this Section 3.4, Buyer will suffer immediate and irreparable harm for which
      monetary damages alone will not be a sufficient remedy, and that, in addition
      to
      all other remedies that Buyer may have, Buyer shall be entitled to seek
      injunctive relief, specific performance or any other form of equitable relief
      to
      remedy a breach or threatened breach of Section 3.3 or this Section 3.4 by
      Seller and to enforce such provisions. The existence of this right shall not
      preclude or otherwise limit the applicability or exercise of any other rights
      and remedies which Buyer may have at law or in equity.

    

    (c) Seller
      has carefully considered the possible effects of its obligations contained
      in
      Section 3.3 and this Section 3.4, and recognizes that Buyer has made every
      effort to limit the restrictions placed upon it to those that are reasonable
      and
      necessary to protect Buyer’s and its Affiliates’ legitimate business interests.
      It is the intention of the parties hereto that the covenants, provisions and
      agreements contained herein shall be enforceable to the fullest extent allowed
      by law. If any covenant, provision, or agreement contained herein is found
      by a
      court having jurisdiction to be unreasonable in duration, geographic scope
      or
      character of restrictions, such covenant, provision or agreement shall not
      be
      rendered unenforceable thereby, but rather the duration, geographic scope or
      character of restrictions of such covenant, provision or agreement shall be
      deemed reduced or modified with retroactive effect to render such covenant,
      provision or agreement reasonable, and such covenant, provision or agreement
      shall be enforced as modified. If the court having jurisdiction will not revise
      the covenant, provision or agreement, the parties hereto shall mutually agree
      to
      a revision having an effect as close as permitted by applicable law to the
      provision declared unenforceable. Moreover, to the extent that any provision
      is
      declared unenforceable, Buyer shall have any and all rights under applicable
      statutes, civil law or common law to enforce its rights with respect to any
      and
      all unfair competition by Seller.

    
      
        
        

      

      
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    3.5 Original
      Author.
      Based
      upon the representations and warranties of Seller set forth in this Agreement,
      Seller is the “original author” of the Acquired Software. Seller may identify
      himself as the “original author” of the Acquired Software in Seller’s marketing
      materials, provided that Seller shall do so (i) in accordance with all
      applicable laws, (ii) in accordance with any requirements required by Buyer,
      (iii) in a manner that does not in any way imply that Seller is the owner or
      a
      licensee of the Acquired Software, and (iv) in accordance with the other terms
      of this Section 3.5. Seller acknowledges and agrees that neither he nor any
      of
      his Affiliates will acquire any ownership interest or license rights in or
      to
      the Acquired Software or any of the other Purchased Assets as a result of this
      Section 3.5 or any activity pursuant hereto. Upon request of Buyer, Seller
      shall
      submit samples of any of his materials in which he identifies himself as the
      “original author” of the Acquired Software. Seller may not use or distribute any
      such materials unless and until Seller has received Buyer’s prior written
      approval, which may be granted or withheld in Buyer’s sole discretion. After any
      materials have been fully approved pursuant to this Section 3.5, Seller shall
      not depart therefrom in any material respect without first submitting to Buyer
      a
      sample of the modified material and obtaining Buyer’s prior written consent to
      such modification. Any such approval by Buyer shall not constitute waiver of
      Buyer’s rights or Seller’s duties hereunder.

    

    3.6 Rule
      144 Compliance.
      Upon
      (i)
      Seller fulfilling all holding period requirements of Rule 144 under the
Securities
      Act of 1933, as amended (the “Securities
      Act”),
      and
      (ii) Parent satisfying all other requirements of Rule 144, Parent shall
      use
      commercially reasonable efforts to assist Seller in taking all actions necessary
      to remove the legend “restricted securities” from the Shares related to a resale
      of such securities. 

    

    4. INDEMNIFICATION.  

    

    4.1 Indemnification
      by Seller.
      Seller
      hereby agrees to indemnify and hold harmless Buyer, Parent, and their respective
      Affiliates, successors, assigns, officers, directors, employees, agents and
      representatives from and against any and all liability, loss, cost, damages,
      claims, obligations, fees and expenses (including reasonable attorney’s fees)
      (collectively, “Losses”)
      which
      any of them may sustain by reason of:

    

    (a) the
      inaccuracy or breach of, or the existence of any facts resulting in the
      inaccuracy or breach of, any of the warranties or representations of Seller
      contained in this Agreement;

    

    (b) Seller’s
      breach or nonfulfillment of, or failure to comply with, any of the covenants
      or
      agreements of Seller contained in this Agreement or in any other agreement
      delivered to Buyer in connection with the Closing of the transactions
      contemplated hereby;

    
      
        
        

      

      
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    (c) the
      Excluded Liabilities and any and all claims, liabilities and obligations of
      any
      nature whatsoever relating to the ownership, use or operation of the Purchased
      Assets on or before the Closing Date; and/or

    

    (d) any
      and
      all actions, suits, proceedings, claims, demands, assessments and judgments
      incident to any of the foregoing.

    

    4.2 Indemnification
      by Buyer.
      Buyer
      hereby agrees to indemnify and hold harmless Seller, its successors, assigns,
      agents and representatives from and against any and all Losses which any of
      them
      may sustain by reason of:

    

    (a) the
      inaccuracy or breach of, or the existence of any facts resulting in the
      inaccuracy or breach of, any of the warranties or representations of Buyer
      contained in this Agreement;

    

    (b) Buyer’s
      breach or nonfulfillment of, or failure to comply with, any of the covenants
      or
      agreements of Buyer contained in this Agreement or in any other agreement
      delivered to Seller in connection with the Closing of the transactions
      contemplated hereby; and/or

    

    (c) any
      and
      all actions, suits, proceedings, claims, demands, assessments and judgments
      incident to any of the foregoing.

    

    4.3 Third
      Party Claims.

    

    (a) If
      any
      third party shall notify any Party (the “Indemnified
      Party”)
      with
      respect to any matter (a “Third
      Party Claim”)
      which
      may give rise to a claim for indemnification against any other Party (the
“Indemnifying
      Party”)
      under
      this Section 4, then the Indemnified Party shall promptly notify each
      Indemnifying Party thereof in writing; provided,
      however,
      that no
      delay on the part of the Indemnified Party in notifying any Indemnifying Party
      shall relieve the Indemnifying Party from any obligation hereunder unless (and
      then solely to the extent) the Indemnifying Party thereby is
      prejudiced.

    

    (b) Any
      Indemnifying Party will have the right to defend the Indemnified Party against
      the Third Party Claim with counsel of its choice reasonably satisfactory to
      the
      Indemnified Party so long as (i) the Indemnifying Party notifies the Indemnified
      Party in writing within fifteen (15) days after the Indemnified Party has given
      notice of the Third Party Claim that the Indemnifying Party will indemnify
      the
      Indemnified Party from Losses the Indemnified Party may suffer resulting from,
      relating to, or caused by the Third Party Claim, in accordance with and subject
      to the terms of this Agreement, (ii) the Indemnifying Party provides the
      Indemnified Party with evidence reasonably acceptable to the Indemnified Party
      that the Indemnifying Party will have the financial resources to defend against
      the Third Party Claim and fulfill its indemnification obligations hereunder,
      (iii) the Third Party Claim involves only money damages and does not seek an
      injunction or other equitable relief, (iv) the settlement of, or an adverse
      judgment with respect
      to, the
      Third Party Claim is not, in the good faith judgment of the Indemnified Party,
      likely to establish a precedential custom or practice materially adverse to
      the
      continuing business interests of the Indemnified Party, and (v) the Indemnifying
      Party conducts the defense of the Third Party Claim actively and
      diligently.

    
      
        
        

      

      
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    (c) So
      long
      as the Indemnifying Party is conducting the defense of the Third Party Claim
      in
      accordance with Section 4.3(b), (i) the Indemnified Party may retain separate
      co-counsel at its sole cost and expense and participate in the defense of the
      Third Party Claim, (ii) the Indemnified Party will not consent to the entry
      of
      any judgment or enter into any settlement with respect to the Third Party Claim
      without the prior written consent of the Indemnifying Party, and (iii) the
      Indemnifying Party will not consent to the entry of any judgment or enter into
      any settlement with respect to the Third Party Claim without the prior written
      consent of the Indemnified Party.

    

    (d) In
      the
      event any of the conditions in Section 4.3(b) is or becomes unsatisfied,
      however, (i) the Indemnified Party may defend against, and consent to the entry
      of any judgment or enter into any settlement with respect to, the Third Party
      Claim in any manner it reasonably may deem appropriate (and the Indemnified
      Party need not consult with, or obtain any consent from, any Indemnifying Party
      in connection therewith), (ii) the Indemnifying Parties will reimburse the
      Indemnified Party promptly and periodically for the costs of defending against
      the Third Party Claim (including reasonable attorneys’ fees and expenses)
      provided that the Indemnifying Party is otherwise required to indemnify the
      Indemnified Party with respect to that Third Party Claim under this Section
      4,
      and (iii) the Indemnifying Parties will remain responsible for any Losses the
      Indemnified Party may suffer resulting from, arising out of, relating to, in
      the
      nature of, or caused by the Third Party Claim to the fullest extent provided
      in
      this Section 4.

    

    4.4 Other
      Claims.
      If an
      Indemnified Party has any claim or demand against an Indemnifying Party pursuant
      to this Article 4 (which claim or demand is not a third party claim, the
      procedure for which is set forth in Section 4.3 above), such Indemnified Party
      shall promptly notify the Indemnifying Party in writing; provided, however,
      that
      no delay on the part of the Indemnified Party in notifying the Indemnifying
      Party shall relieve the Indemnifying Party from any obligation hereunder, unless
      (and then solely to the extent) the Indemnifying Party thereby is prejudiced.
      If
      the Indemnified Party is not notified (within fifteen (15) days from the
      delivery of such notice) by the Indemnifying Party that the Indemnifying Party
      disputes its liability to the Indemnified Party pursuant to this Article 4,
      such
      claim shall be conclusively deemed a liability of the Indemnifying Party, and
      the Indemnifying Party shall pay such claim in cash immediately upon
      demand.

    

    4.5 Remedies
      Not Exclusive.
      The
      foregoing indemnification provisions are in addition to, and not in derogation
      or lieu of, any statutory, equitable or common law remedy any party may have
      for
      a breach of a representation, warranty or covenant contained herein.

    

    4.6 Survival
      of Representations and Warranties.
      All
      covenants, agreements, representations and warranties contained in this
      Agreement shall survive the Closing; provided, however, that (i) subject to
      clause (ii) hereof, the representations and warranties of the parties contained
      in this Agreement shall survive for a period of three (3) years after the
      Closing Date, (ii) the representations and warranties of Seller set forth
      in Section 3 (Purchased Assets) and Section 4 (Litigation and Claims) of Exhibit
      B hereto shall survive until the expiration of the applicable statute of
      limitations, and (iii) if an Indemnified Party provides proper notice to the
      Indemnifying Party hereunder of any then existing matter within the scope of
      an
      Indemnifying Party’s indemnity obligation within such survival periods, the
      Indemnified Party may pursue its claim for indemnification after such period,
      in
      which case the representation or warranty on which it is based shall survive
      until such claim is resolved. Notwithstanding any investigation made by Buyer
      prior to Closing, which shall not constitute a waiver as to enforcement of
      any
      right or remedy which Buyer may have, Buyer shall be presumed to have relied
      upon the representations and warranties of Seller set forth in Exhibit
      B
      in
      connection with the execution of this Agreement and the consummation of the
      transactions contemplated hereby. Notwithstanding any investigation made by
      Seller prior to Closing, which shall not constitute a waiver as to enforcement
      of any right or remedy which Seller may have, Seller shall be presumed to have
      relied upon the representations and warranties of Buyer set forth in
Exhibit
      C
      in
      connection with the execution of this Agreement and the consummation of the
      transactions contemplated hereby.

    
      
        
        

      

      
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    5. MISCELLANEOUS.

    

    5.1 Certain
      Defined Terms.
      Capitalized terms not otherwise defined in this Agreement shall have the
      respective meanings set forth in Exhibit
      D
      attached
      hereto.

    

    5.2 Further
      Assurances.
      After
      the Closing Date, Seller agrees, at Buyer’s request, to execute and deliver to
      Buyer all such additional or confirmatory instruments, reports and
      acknowledgments as may be reasonably furnished for such purpose by Buyer and
      to
      take all such other actions as Buyer may reasonably request (i) to evidence
      the sale, assignment, transfer and conveyance to Buyer of the Purchased Assets,
      (ii) to obtain possession thereof for Buyer, free and clear of all Liens,
      or (iii) to confirm Buyer’s non-assumption of any obligations or
      liabilities of Seller.

    

    5.3 Entire
      Agreement.
      This
      Agreement constitutes the entire agreement between the parties pertaining to
      the
      subject matter hereof and supersedes all prior and contemporaneous agreements,
      understandings, negotiations and discussions of the parties, whether oral or
      written. All Schedules and Exhibits attached to this Agreement shall be deemed
      part of this Agreement and incorporated herein, where applicable, as if fully
      set forth herein. No amendment, supplement, modification, waiver or termination
      of this Agreement shall be binding unless executed in writing by all parties
      hereto, or in the case of a waiver, by the party for whom such benefit was
      intended.

    

    5.4 Expenses;
      Tax Matters. 

    

    (a) Seller
      shall be responsible for the timely payment of, and shall indemnify and hold
      harmless Buyer against, all sales, use, value, added, documentary, stamp, gross
      receipts, registration, transfer, conveyance, excise, recording, license and
      other similar Taxes and fees (“Transfer
      Taxes”),
      arising out of or in connection with or attributable to the transactions
      effected pursuant to this Agreement. Seller shall prepare and timely file all
      tax returns required to filed in respect of Transfer Taxes (including, without
      limitation, all notices required to be given with respect to bulk sales taxes),
      provide that Buyer shall be permitted to prepare any such tax returns that
      are
      the primary responsibility of Buyer under applicable law. 

    

    (b) Each
      of
      the parties hereto shall pay the fees and expenses of its respective legal
      counsel and other representatives incident to the negotiation and preparation
      of
      this Agreement, the consummation of the transactions contemplated by this
      Agreement, and any disputes between the parties arising out of the transactions
      contemplated by this Agreement. 

    
      
        
        

      

      
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    5.5 Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and assigns. Notwithstanding
      anything to the contrary herein, neither party may assign any of its/his rights
      or delegate any of its/his responsibilities, liabilities or obligations under
      this Agreement, without the prior written consent of the other
      party.

     

    5.6 Severability.
      Any
      provision, clause or part of this Agreement or the application thereof that
      is
      held invalid or unenforceable in any situation in any jurisdiction shall not
      affect the validity or enforceability of the remaining terms and provisions
      hereof, or the validity or enforceability of the offending term or provision
      in
      any other situation or in any other jurisdiction.

    

    5.7 Applicable
      Law; Consent to Jurisdiction.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      Commonwealth of Virginia, without regard to principles of conflicts of laws.
      Except as provided in Section 5.8 hereof, any suit involving any dispute or
      matter arising under this Agreement may only be brought in the United States
      District Court for the Eastern District of Virginia, Norfolk Division or in
      any
      state court located in Virginia Beach, Virginia; each of the parties hereto
      consents to the exercise of personal jurisdiction by such court with respect
      to
      all such proceedings; and each of the parties hereto hereby knowingly and
      voluntarily waives any and all rights to a jury trial in any proceeding
      involving any dispute or matter arising under this Agreement.

    

    5.8
      Setoff. 
In
      addition to all other rights and remedies that Buyer may have, if Buyer becomes
      aware of any right to indemnification pursuant to Section 4, it may, in addition
      to any other available remedy, notify Seller in writing of the basis of such
      right to indemnification and the amount thereof, and may suspend and offset
      such
      amount, against all or any portion of any payment due to
      Seller
      from Parent or Buyer under this Agreement, the Consulting Agreement, or
      otherwise. Notwithstanding the foregoing, if upon notice from Buyer of Buyer’s
      right to indemnification and the amount thereof, Seller posts a bond for the
      benefit of Buyer for the claimed amount properly securing the payment thereof,
      Buyer will not exercise such setoff rights. Buyer’s and Parent’s rights under
      this Agreement shall not be in any manner limited by or to this right of setoff.
      

     

    5.9 Notice.
      All
      notices, requests, demands, waivers and other communications required or
      permitted to be given under this Agreement shall be in writing and shall be
      deemed to have been duly given if (a) delivered personally, (b) mailed by
      first-class, registered or certified mail, return receipt requested, postage
      prepaid, or (c) sent by next-day or overnight mail or delivery, to the
      following:

    

    
      	 	
              If
                to Seller, to:

            	
              Gregory
                C. Hutson

            

    

    803
      18th
      Avenue
      South

    Nashville,
      Tennessee 37203

    

    
      	 	
              If
                to Buyer, to:

            	
              Geeks
                On Call America, Inc.

            

    

    814
      Kempsville Road

    Norfolk,
      VA 23502

    Attn:
      Richard T. Cole

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    

    or,
      in
      each case, at such other address as may be specified in writing to the other
      parties hereto.

    

    All
      such
      notices, requests, demands, waivers and other communications shall be deemed
      to
      have been received (w) if by personal delivery on the day after such delivery,
      (x) if by certified or registered mail, on the seventh business day after the
      mailing thereof, (y) if by next-day or overnight mail or delivery, on the day
      delivered, (z) if by telecopy or telegram, on the next day following the day
      on
      which such telecopy or telegram was sent, provided that a copy is also sent
      by
      certified or registered mail.

    

    5.10 Construction.
      In
      the
      event of any ambiguity or mistake herein, or any dispute among the parties
      with
      respect to the provisions hereto, no provision of this Agreement shall be
      construed unfavorably against any of the parties on the ground that it or its
      counsel was the drafter thereof. Nothing in a schedule shall be deemed adequate
      to disclose an exception to a representation or warranty made herein unless
      the
      Schedule describes the exception in reasonable detail. Without limiting the
      generality of the foregoing, the mere listing (or inclusion of a copy) of a
      document or other item shall not be deemed adequate to disclose an exception
      to
      a representation or warranty made herein (unless the representation or warranty
      has to do with the existence of the document or other item itself). The
      information contained in any Schedule referred to in any representation and
      warranty shall be deemed to have been disclosed in connection with, and be
      a
      part of, that particular representation and warranty only, and shall not be
      deemed a part of any other representation and warranty unless cross-referenced
      to the schedule related to such representation or warranty. 

    

    5.11
       Specific
      Performance.
      The
      parties hereto recognize that in the event either party fails to fulfill or
      perform any of its/his covenants or agreements set forth in, or contemplated
      by,
      this Agreement, monetary damages alone will not be adequate. The non-breaching
      party shall therefore be entitled, in addition to any other remedies which
      may
      be available, including money damages, to obtain specific performance of the
      terms of this Agreement. In the event of any action to enforce this Agreement,
      each party hereby waives any defense that there is an adequate remedy at
      law.

    

    5.12 Public
      Announcements
      No party
      shall issue any press release or make any public announcement relating to the
      subject matter of this Agreement without the prior written approval of the
      other
      party; provided, however, that Parent or Buyer may make any public disclosure
      it
      believes in good faith is required by applicable law or by any agreement
      concerning Parent’s publicly-traded securities.

     

    5.13 Headings.
      The
      headings in this Agreement are for reference purposes and shall not affect
      the
      meaning or interpretation of this Agreement. 

    

    5.14 Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument. All facsimile executions shall be treated as originals for all
      purposes. 

    

    

    [THIS
      SPACE INTENTIONALLY LEFT BLANK]

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have executed, or caused to be executed by duly authorized
      officers, this Agreement as of the Closing Date.

    

    

    WITNESS:    

    

     

    
      	
               /s/
                Richard Artese

            	 	
                    
                /s/ Gregory C. Hutson

            	
              (SEAL)

            
	 	 	
              GREGORY
                C. HUTSON

            	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	
              GEEKS
                ON CALL HOLDINGS, INC.

            	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
              
                 /s/
                  Richard Artese

              

            	 	
              By:
                

            	
                
                /s/ Richard T. Cole

            	
              (SEAL)

            
	 	 	 	
              Name:
                Richard T. Cole

            	 
	 	 	 	
              Title:
                Chief Executive Officer 

            	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	
              GEEKS
                ON CALL AMERICA, INC.

            	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
              
                 /s/
                  Richard Artese

              

            	 	
              By:
                

            	
              /s/
                Richard T. Cole 

            	
              (SEAL)

            
	 	 	 	
              Name:
                Richard T. Cole

            	 
	 	 	 	
              Title:
                Chief Executive Officer 

            	 

    

    

    

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSET
      PURCHASE AGREEMENT

    

    EXHIBIT
      A

    Description
      of Software

    

    quiXsupport
      is a
      support protocol, that effectively and instantly combines live, interactive
      support to paying customers.  

     

    
      	 	
              o

            	
              Features: 

            

    

     

    
      	 	
              §

            	
              quiXsupport
                Helpdesk General
                Description

            

    

     

    
      	 	
              §

            	
              A
                turnkey, fully-staffed, fully-equipped helpdesk management system
                providing state-of-the-art revenue-generating support services and
                technology through unlimited sales channels/portals, instantly, to
                a
                global audience of customers. 

            

    

     

    
      	 	
              §

            	
              Centralized
                Management of Unlimited Channel Operations 

            

    

     

    
      	 	
              §

            	
              One
                support “team” can handle multiple brands, portals, operations, support
                protocols, chats, calls and vertical sales pipelines through a single,
                managed Internet GUI (graphical user
                interface)

            

    

     

    
      	 	
              §

            	
              Sales
                Channels can be instantly created and managed for various franchisees,
                brands, products, resellers, portals and partners
                

            

    

     

    
      	 	
              §

            	
              Sales
                Channels include 

            

    

     

    
      	 	
              §

            	
              Front-End
                “store” for on-line sales 

            

    

     

    
      	 	
              §

            	
              Web
                presence with sub-pages / agreements / user
                interfaces

            

    

     

    
      	 	
              §

            	
              Independent
                phone numbers, virtual call-center allocations and phone traffic
                routing
                

            

    

     

    
      	 	
              §

            	
              Independent
                web traffic routing, reporting and geo-location tracking
                

            

    

     

    
      	 	
              §

            	
              Independent
                Channel administrator and end-user management, tracking and reporting
                

            

    

     

    
      	 	
              §

            	
              Employee
                Management 

            

    

     

    
      	 	
              §

            	
              quiXsupport
                is a proprietary, customizable virtual-office environment
                

            

    

     

    
      	 	
              §

            	
              Anywhere
                an employee has Internet access, that employee has the following
                

            

    

     

    
      	 	
              §

            	
              Full,
                encrypted access to the live ticket queue

            

    

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

    
      	 	
              §

            	
              Full,
                encrypted access to the system, system tools, databases, interfaces,
                resources and other online employees

            

    

     

    
      	 	
              §

            	
              Remote
                control system (any employee, can remote into, and perform services
                on,
                any other PC or Mac machine on the planet that has Internet access)
                

            

    

     

    
      	 	
              §

            	
              One,
                heavily encrypted employee interface that is centrally managed and
                controlled 

            

    

     

    

      
        
          
          

        

        
          A-2

          
            

          

        

        
          
          

        

      

    ASSET
      PURCHASE AGREEMENT

    

    EXHIBIT
      B

    

    Seller’s
      Representations and Warranties

    

    Seller
      hereby represents and warrants to Buyer that, as of the Closing
      Date:

    

    1. Enforceability.
      This
      Agreement is, and the other documents and instruments required hereby are,
      the
      valid and binding obligations of Seller enforceable against Seller in accordance
      with their respective terms, subject to applicable bankruptcy, insolvency,
      moratorium, reorganization and other similar laws affecting the rights of
      creditors generally, and to the exercise of a court’s equitable
      powers.

    

    2. Consents.
      The
      execution, delivery and performance by Seller of this Agreement and all of
      the
      documents and instruments required hereby do not conflict with or violate or
      result in a breach of the terms, conditions or provisions of any agreement,
      document or instrument to which Seller is a party or by which Seller is bound.
      No notice to, filing with, or consent, authorization or approval of, or any
      other action by, any Person is necessary for the execution, delivery and
      performance of this Agreement by Seller.

    

    3. Purchased
      Assets.
      Seller
      has complete and unrestricted power and the unqualified right to sell, assign,
      transfer and deliver to Buyer, and upon consummation of the transactions
      contemplated by this Agreement, Buyer will acquire good, valid and marketable
      title to the Purchased Assets, free and clear of all Liens. The Purchased Assets
      constitute all of the assets and properties necessary to effectively operate
      the
      Acquired Software and include all tangible and intangible assets and goodwill
      relating to the Acquired Software. The Purchased Assets are free from material
      defects, and are adequate for the uses described on Exhibit
      A,
      provided that notwithstanding the foregoing, Seller makes such no representation
      or warranty with respect to the Third-Party Plug-Ins and Platforms. The
      Acquired Software is a derivative work of the Cloversite XG Development
      Construct. The Cloversite XG Development Construct is an Excluded Asset and
      is
      not being transferred to Buyer. The Acquired Software is a unique, sovereign,
      stand-alone, copyrightable work, and can function for the purposes described
      on
Exhibit
      A
      without
      the use of the
      Cloversite XG Development Construct.

    

    4. Litigation
      and Claims.
      There
      are no actions, claims, suits, or judicial, administrative or governmental
      proceedings or investigations, orders, awards, decrees or judgments, now
      pending, or to Seller’s knowledge, threatened against Seller, nor does Seller
      know of any basis for the same, in each case, relating to the Purchased
      Assets.

    

    5. Compliance
      with Laws.
      Seller
      is not in violation of any law, ordinance, directive or regulation of any
      governmental authority, order, writ, decree, judgment, or order of any court,
      arbitrator, or governmental or regulatory authority.

    

    6. Broker.
      Seller
      has not made any agreement with any Person or taken any action that would cause
      any Person to become entitled to any agent’s, broker’s or finder’s fee or
      commission in connection with the transactions contemplated
      hereby.

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

    

    7. Intellectual
      Property Rights.
       

     

    (a) Except
      for the Third-Party Plug-Ins and Platforms, Seller owns the entire right, title
      and interest in the Acquired Software, the Documentation and all other Seller
      Helpdesk Intellectual Property, free and clear of all Liens.

    

    (b) No
      Intellectual Property of third parties is used in or by, incorporated in, or
      necessary for the use, operation, building, reproduction, making of derivative
      works of or distribution of the Acquired Software or the Documentation, other
      than the Third-Party Plug-Ins and Platforms.

    

    (c) The
      Acquired Software and the Documentation do not use, incorporate, or require
      for
      their use, building, operation, reproduction, distribution or making of
      derivative works, any Intellectual Property other than the Third-Party Plug-Ins
      and Platforms.

    

    (d) To
      Seller’s knowledge, Seller has not violated, misappropriated, infringed, induced
      infringement of, or contributed to the infringement of, as the case may be,
      any
      Intellectual Property or other right of any Person. The use of that the Acquired
      Software, Documentation, or other Seller Helpdesk Intellectual Property
      described on Exhibit
      A
      and
      contemplated by Buyer, do not and will not violate, misappropriate, infringe
      any
      Intellectual Property or other right of any Person. There are no claims pending
      or threatened against Seller asserting that the Acquired Software,
      Documentation, or other Seller Helpdesk Intellectual Property, violates,
      misappropriates or infringes the Intellectual Property or other rights of any
      Person.

    

    (e) Seller
      has not received any infringement opinions or other notices of any nature from
      any source which indicate that the Acquired Software, Documentation and/or
      other
      Seller Helpdesk Intellectual Property violates, misappropriates, infringes
      or
      may violate, misappropriate or infringe any Intellectual Property or other
      right
      of any Person.

    

    (f) Seller
      has not made, asserted or threatened any claim of violation, misappropriation
      or
      infringement of Acquired Software, Documentation and/or other Seller Helpdesk
      Intellectual Property against any Person, and Seller is not aware of any such
      violation, misappropriation or infringement.

    

    (g) Except
      for the License Agreement to Cloverlick that is being terminated
      contemporaneously with the execution and delivery of this Agreement, Seller
      has
      not granted any outstanding licenses or other rights to the Acquired Software,
      Documentation or other Seller Helpdesk Intellectual Property to any
      Person.

    

    (h) The
      transactions contemplated by this Agreement will have no adverse effect on
      the
      Acquired Software, Documentation or other Seller Helpdesk Intellectual
      Property.

    

    8. Business
      Activity Restriction.
      There is
      no non-competition or other similar agreement, commitment, judgment, injunction,
      order or decree to which Seller is a party or to which it is subject that has
      or
      could reasonably be expected to have the effect of prohibiting or impairing
      Buyer’s use of the Purchased Assets. 

    
      
        
        

      

      
        B-2

        
          

        

      

      
        
        

      

    

    

    

    9. Disclosure.
      Neither
      this Agreement nor any schedule, certificate, exhibit, agreement, instrument
      or
      document furnished or to be furnished by Seller or its Affiliates pursuant
      hereto or in connection with the due diligence process performed by Buyer in
      connection herewith, contains any misstatement of fact or omits or fails to
      state a material fact necessary in order to make the statements contained
      therein not misleading. There is no fact that has not been disclosed to Buyer
      in
      writing which materially adversely affects or could reasonably be expected
      to
      materially adversely affect the Purchased Assets.

    

    10. Purchase
      Entirely for Own Account.
      The
      Shares proposed to be acquired by Seller hereunder will be acquired for
      investment for his own account, and not with a view to the resale or
      distribution of any part thereof, and Seller has no present intention of selling
      or otherwise distributing the Shares, except in compliance with applicable
      securities laws.

     

    11. Available
      Information.
      Seller
      has such knowledge and experience in financial and business matters that he
      is
      capable of evaluating the merits and risks of investment in Parent.

     

    12. Non-Registration.
      Seller
      understands that the Shares have not been registered under the Securities Act
      and, if issued in accordance with the provisions of this Agreement, will be
      issued by reason of a specific exemption from the registration provisions of
      the
      Securities Act that depends upon, among other things, the bona fide nature
      of
      the investment intent and the accuracy of Seller’s representations as expressed
      herein.

     

    13. Restricted
      Securities.
      Seller
      understands that the Shares are characterized as “restricted securities” under
      the Securities Act inasmuch as this Agreement contemplates that, if acquired
      by
      Seller pursuant hereto, the Shares would be acquired in a transaction not
      involving a public offering. Seller further acknowledges that if the Shares
      are
      issued to Seller in accordance with the provisions of this Agreement, such
      Shares may not be resold without registration under the Securities Act or the
      existence of an exemption therefrom. In this connection, Seller represents
      that
      it is familiar with Rule 144 promulgated under the Securities Act, as presently
      in effect, and understands the resale limitations imposed thereby and by the
      Securities Act. Legends shall be placed on the Shares to the effect that they
      have not been registered under the Securities Act or applicable state securities
      laws and appropriate notations thereof will be made in Parent’s stock books.
      Seller consents to stop transfer instructions being placed with Parent’s
      transfer agent.

     

    

    
      
        
        

      

      
        B-3

        
          

        

      

      
        
        

      

    

    ASSET
      PURCHASE AGREEMENT

    

    EXHIBIT
      C

    

    Buyers’
      Representations and Warranties

    

    Buyer
      hereby represents and warrants to Seller that, as of the Closing
      Date:

    

    1. Organization.
      Buyer is
      a corporation duly organized, validly existing and in good standing under the
      laws of the State of Delaware, and has all the requisite corporate power and
      authority to purchase the Purchased Assets pursuant to this
      Agreement.

    

    2. Authorization;
      Enforceability.
      The
      execution, delivery and performance by Buyer of this Agreement are within the
      power of Buyer, and have been duly and validly authorized by Buyer, and no
      other
      proceedings on the part of Buyer are necessary to authorize this Agreement
      or
      the transactions contemplated hereby. This Agreement constitutes the valid
      and
      binding obligation of Buyer, enforceable against Buyer in accordance with its
      terms, subject to applicable bankruptcy, insolvency, moratorium, reorganization
      and other similar laws affecting the rights of creditors generally, and to
      the
      exercise of a court’s equitable powers.

    

    3. Consents.
      No
      notice to, filing with, or consent or approval of, or any other action by,
      any
      Person is necessary for the execution, delivery and performance by Buyer of
      this
      Agreement.

    

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

    

    Defined
      Terms

    

    

    The
      following capitalized terms shall have the meanings specified in this
Exhibit
      D.
      Other
      terms are defined in the recitals hereto or in the text of this Agreement,
      and
      shall have the meanings respectively ascribed to them.

    

    “Affiliate”
means,
      when used with respect to any Person, any other Person that, directly or
      indirectly, through one or more intermediaries, controls, is controlled by,
      or
      is under common control with, the specified Person; “control” or any form
      thereof means, with respect to any Person, the possession, directly or
      indirectly, of the power to direct or cause the direction of the management
      policies of such Person through the ownership of voting securities, by contract
      or otherwise.

    

    “Domain
      Names”
means
      domain names, uniform resource locators and other Internet or similar addresses
      or identifiers.

    

    “Excluded
      Assets”
means
      that certain software or protocol known as the Cloversite XG Development
      Construct, any other software of Seller that is not necessary to provide the
      helpdesk functionality described on Exhibit
      A,
      and any
      other Intellectual Property of Seller that (i) is not identified in Sections
      1.2
      (a) through 1.2 (c) and
      (ii) is
      not Seller Helpdesk Intellectual Property.

    

    “Intellectual
      Property”
      means
      any or all of the following and all rights in, arising out of, or associated
      therewith: (i) all United States, international and foreign patents and
      applications therefor and all reissues, divisions, renewals, extensions,
      provisionals, continuations and continuations-in-part thereof; (ii) all
      inventions (whether or not patentable or patented), invention disclosures,
      improvements, trade secrets, proprietary information, know-how, technology,
      technical data and customer lists; (iii) all copyrights, copyrights
      registrations and applications therefor and all other rights corresponding
      thereto throughout the world; (iv) all industrial designs and any
      registrations and applications therefor throughout the world; (v) all trade
      names, logos, common law trademarks and service marks; (vi) all trademark
      and service mark registrations and applications therefor and all goodwill
      associated therewith throughout the world; (vii) all Domain Names;
      (viii) all databases and data collections and all rights therein throughout
      the world; and (ix) all computer software including all source code, object
      code, firmware, development tools, files, records and data, all media on which
      any of the foregoing is recorded; (x) any similar, corresponding or
      equivalent rights to any of the foregoing and (xi) all documentation
      related to any of the foregoing.

    

    “Lien”
      means
      any
      mortgage, pledge, lien, right, deed, encumbrance, charge or adverse claim
      affecting title or resulting in an encumbrance or a security interest of any
      kind (including a conditional sale or other title retention agreement), any
      option or other agreement to sell or any filing of (or agreement to give) any
      financing statement under the Uniform Commercial Code or equivalent statutes
      of
      any jurisdiction.

    

    “Person”
means
      any individual, corporation, association, partnership, limited liability
      company, trust, unincorporated organization, governmental entity (or any
      department, agency or political subdivision thereof) or any other organization
      or entity.

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

    

    

     

    “Seller
      Helpdesk Intellectual Property”
      shall
      mean any Intellectual Property that (1) (i) is owned by (ii) is
      licensed to, or (iii) was developed or created by Seller; and (2) is used
      in connection with, relates to, or comprises or is incorporated in, the Acquired
      Software or the Documentation. 

    

    “Third-Party
      Plug-Ins and Platforms”
      means
      the
      following third-party applications used in connection with the Acquired
      Software: 3CX Enterprise VOIP PBX, Version 5, ISL Light Remote Control Server,
      Version 3, Aestiva HTML/OS, Version 4.

     

     

    
      
        
        

      

      
        D-2EXHIBIT
        10.27

    

     

    AMENDMENT
      NO. 1

     

    This
      AMENDMENT
      NO. 1
(this
      “Amendment”),
      dated
      as of February 22, 2008 (the “Amendment
      No. 1 Effective Date”),
      is to
      that certain PURCHASE AGREEMENT dated as of July 21, 2006, as amended and
      restated on May 16, 2007 (as amended, amended and restated, supplemented or
      otherwise modified from time to time, the “Purchase
      Agreement”),
      among
      Digital Domain Productions, Inc. (f/k/a Digital Domain, Inc.), a Delaware
      corporation (the “Company”),
      Digital Domain (f/k/a Wyndcrest DD Holdings, Inc.), a Delaware corporation
      (“Holdings”),
      D2
      Software, Inc., a Delaware corporation, Wyndcrest UK Holdings Limited, a company
      organized under the laws of England and Wales, The Foundry Visionmongers Ltd.,
      a
      company organized under the laws of England and Wales, FMP Agency Services,
      LLC,
      as Agent (the “Agent”),
      and
      the Noteholder listed on the signature pages thereto (the “Noteholder”).
      Capitalized terms used but not defined herein have the meanings respectively
      given to them in the Purchase Agreement. 

     

    WITNESSETH
      :

     

    WHEREAS,
      Article VII of the Purchase Agreement imposes certain financial covenants on
      the
      Issuers; and 

     

    WHEREAS,
      the Issuers desire, and the Noteholder has agreed, to modify certain of such
      financial covenants on the terms, and subject to the conditions, set forth
      herein;

     

    NOW,
      THEREFORE, in consideration of the foregoing, and for other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      parties hereto hereby agree as follows:

     

    SECTION
      ONE - Amendment.
      

     

    Subject
      to the satisfaction of the conditions set forth in Section Three hereof, the
      Purchase Agreement shall be amended, effective as of the Amendment No. 1
      Effective Date, as follows:

     

    (i)  the
      following new defined term shall be added to Section 1.01 of the Purchase
      Agreement in the alphabetically appropriate location:

     

    ““Amendment
      No. 1 Effective Date”
shall
      mean February 22, 2008.”;

     

    (ii)  the
      definition of “Test Period” set forth in Section 1.01 of the Purchase Agreement
      shall be replaced in its entirety with the following:

     

    ““Test
      Period”
shall
      mean, at any time, the four consecutive fiscal quarters of Holdings then last
      ended (in each case taken as one accounting period); provided
      that,
      solely with respect to the Test Period ended April 30, 2009, “Test Period” shall
      mean the twelve month period ended April 30, 2009 (taken as one accounting
      period); and provided further
      that,
      with respect to the Test Period ended April 30, 2009, Holdings shall, within
      30
      days of the last day of such Test Period, provide the Noteholder with (i) a
      Compliance Certificate (x) certifying that during such Test Period no
      Default has occurred or, if such a Default has occurred, specifying the nature
      and extent thereof and any corrective action taken or proposed to be taken
      with
      respect thereto, (y) setting forth computations in reasonable detail
      satisfactory to the Required Holders demonstrating compliance with the covenants
      contained in Sections
      7.10(a)
      and
(c)
      as of
      the last day of such Test Period, and (z) showing a reconciliation of
      Consolidated EBITDA to the net income set forth on the unaudited consolidated
      statement of income referenced in clause (ii) below, and (ii) the unaudited
      consolidated balance sheet of Holdings as of April 30, 2009, together with
      the
      unaudited consolidated statements of income and cash flows of Holdings for
      the
      twelve month period ended April 30, 2009.”;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (iii)  the
      table
      contained in Section 7.10(a) of the Purchase Agreement shall be replaced in
      its
      entirety by the table contained in Annex I attached hereto;

     

    (iv)  
      the
      table contained in Section 7.10(b) of the Purchase Agreement shall be replaced
      in its entirety by the table contained in Annex II attached hereto;

     

    (v)  the
      following proviso shall be added at the end of Section 7.10(b) of the Purchase
      Agreement, immediately before the period concluding that subsection: “; and,
provided
      further,
      that,
      in the event that Holdings consummates one or more sales of its Equity
      Interests, the aggregate gross proceeds of which exceed $10,000,000 (the
“Minimum
      Gross Proceeds”),
      in
      one or a series of financing transaction(s) consummated after the Amendment
      No.
      1 Effective Date and prior to March 31, 2009, the required minimum amount of
      Qualified Cash as set forth above at and following the date of receipt by
      Holdings of the Minimum Gross Proceeds shall be, at any date of determination,
      $10,000,000”; and

     

    (vi)  the
      table
      contained in Section 7.10(c) of the Purchase Agreement shall be replaced in
      its
      entirety by the table contained in Annex III attached hereto.

     

    SECTION
      TWO - Fee.
      In
      partial consideration of the Noteholder’s agreement to enter into this
      Amendment, the Company hereby agrees to pay to the Noteholder a fee in the
      amount of $200,000 (the “Amendment
      No. 1 Fee”),
      which
      amount shall be deemed to be earned on the Amendment No. 1 Effective Date and
      shall be payable upon the 90th day following the Amendment No. 1 Effective
      Date
      (the “Trigger
      Date”);
      provided,
      however, that if the Company shall have paid in full to the Noteholder all
      principal, premium, interest and all other Obligations under the Notes on or
      prior to the Trigger Date, the Amendment No. 1 Fee shall no longer be payable
      to
      the Noteholder.

     

    SECTION
      THREE - Conditions
      to Effectiveness.
      This
      Amendment shall become effective upon satisfaction of the following conditions
      precedent: 

     

    (a)  the
      Noteholder shall have received a counterpart of this Amendment duly executed
      by
      the Issuers, and Holdings shall have received a counterpart of this Amendment
      duly executed by the Noteholder;

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    (b)  the
      representations and warranties in Section Four hereof shall be true and correct;
      and

     

    (c)  the
      Noteholder shall have received such other assurances, certificates, documents,
      consents or opinions as the Noteholder reasonably may require.

     

    In
      addition, the effectiveness of this Amendment shall be subject to the following
      condition subsequent: there shall have been paid all fees and other amounts
      due
      and payable on or prior to the date hereof, including, without limitation,
      payment of all expenses (including the legal fees and expenses of Cahill Gordon
      & Reindel llp,
      special
      counsel to the Noteholder), required to be reimbursed or paid by the Issuers
      pursuant to Section 14.03 of the Purchase Agreement or under any other Financing
      Document, within five (5) days after receipt of an appropriate invoice
      therefor.

     

    SECTION
      FOUR - Representations
      and Warranties .
      In
      order to induce the Noteholder to enter into this Amendment, each of Holdings
      and the Company represents and warrants to the Noteholder that, after giving
      effect to this Amendment:

     

    (a)  no
      Default or Event of Default has occurred and is continuing under the Purchase
      Agreement; and

     

    (b)  this
      Amendment has been duly executed and delivered by each Issuer party thereto
      and
      constitutes a legal, valid and binding obligation of such Issuer, enforceable
      in
      accordance with its terms, subject to applicable bankruptcy, insolvency,
      reorganization, moratorium or other laws affecting creditors’ rights generally
      and subject to general principles of equity, regardless of whether considered
      in
      a proceeding in equity or at law.

     

    SECTION
      FIVE - Reaffirmation
      of Guarantee.
      Each
      Guarantor has heretofore executed and delivered to the Agent and the Noteholder
      a Guarantee dated as of May 16, 2007 in favor of the Agent for the benefit
      of
      the Noteholder. Each Guarantor hereby consents to this Amendment and confirms
      that the Financing Documents executed and delivered by such Guarantor and all
      of
      the obligations of such Guarantor thereunder remain in full force and effect.
      Each Guarantor acknowledges and agrees that, notwithstanding the execution
      and
      delivery of this Amendment, the Guarantee executed and delivered to the Agent
      by
      such Guarantor remains in full force and effect and the rights and remedies
      of
      the Agent and the Noteholder thereunder and the obligations of such Guarantor
      thereunder remain in full force and effect and shall not be affected, impaired
      or discharged hereby. Each Guarantor further acknowledges that the Agent and
      the
      Noteholder are relying on the assurance set forth herein in maintaining credit
      outstanding to the Company.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    SECTION
      SIX - Miscellaneous.
      

     

    (a)  All
      representations and warranties made in the Purchase Agreement or in any other
      document or documents relating thereto shall survive the execution and delivery
      of this Amendment in accordance with their respective terms.

     

    (b)  The
      Purchase Agreement, each of the other Financing Documents, and any and all
      other
      agreements, documents or instruments now or hereafter executed and delivered
      pursuant to the terms hereof, or pursuant to the terms of the Purchase Agreement
      as amended hereby, are hereby amended so that any reference therein to the
      Purchase Agreement shall mean a reference to the Purchase Agreement as amended
      by this Amendment.

     

    (c)  Except
      as
      expressly amended hereby, the Purchase Agreement and the other Financing
      Documents remain in full force and effect and each Issuer ratifies and confirms
      its agreements and covenants contained therein. In the event of any
      inconsistency between the provisions of the Purchase Agreement and the
      provisions of this Amendment, the provisions of this Amendment shall
      prevail.

     

    SECTION
      SEVEN - Headings.
      The
      headings, captions and arrangements used in this Amendment are for convenience
      only and shall not affect the interpretation of this Amendment.

     

    SECTION
      EIGHT - Severability.
      Any
      provision of this Amendment held by a court of competent jurisdiction to be
      invalid or unenforceable shall not impair or invalidate the remainder of this
      Amendment and the effect thereof shall be confined to the provision so held
      to
      be invalid or unenforceable.

     

    SECTION
      NINE - Execution
      in Counterparts.
      This
      Amendment may be executed in any number of counterparts and by different parties
      hereto in separate counterparts, each of which when so executed shall be deemed
      to be an original and all of which taken together shall constitute but one
      and
      the same agreement. Delivery of an executed counterpart of a signature page
      to
      this Amendment by facsimile shall be as effective as delivery of a manually
      executed counterpart of this Amendment.

     

    SECTION
      TEN - Governing
      Law.
      This
      Amendment shall be construed in accordance with and governed by the law of
      the
      State of New York, without regard to conflicts of law principles that would
      require the application of the laws of another jurisdiction.

     

    [Remainder
      of page intentionally left blank.]

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be
      duly
      executed and delivered as of the day and year first above written.

     

    
      	 	 	 
	 	DIGITAL
              DOMAIN
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              
Name:
	 	Title:

    

     

    
      
        	 	 	 
	 	DIGITAL
                DOMAIN
                PRODUCTIONS, INC.
	 
 	 
 	 
 
	
              	By:  	
              
	 	
                
Name:
	 	Title:

      

    

     

    
      	 	 	 
	 	D2
              SOFTWARE,
              INC.
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              
Name:
	 	Title:

    

     

    
      	 	 	 
	 	
              WYNDCREST
                UK HOLDINGS LIMITED

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              
Name:
	 	Title:

    

     

    
      	 	 	 
	 	
              THE
                FOUNDRY VISIONMONGERS LTD.

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              
Name:
	 	Title:

    

     

    [Signature
      Page to Amendment No.
      1]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	 	
              FALCON
                MEZZANINE PARTNERS II, LP

            
	 	 	 
	 	
              By:

            	
              Falcon
                Mezzanine Investments II, LLC 

            
	 	
              Its:

            	
              General
                Partner

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              
Name:
	 	Title:

    

     

    
      [Signature
        Page to Amendment No. 1]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    Annex
      I

     

    
      	
              Period

            	 	
              (X)

              Minimum
                Qualified Cash 

              Requirement
                

              Satisfied

              Leverage
                Ratio

            	 	
              (Y)

              Minimum
                Qualified Cash 

              Requirement
                

              Not
                Satisfied

              Leverage
                Ratio

            	 
	
              Test
                Period Ending April 30, 2009

            	 	 	
              2.90
                to 1.0

            	 	 	
              2.20
                to 1.0

            	 
	
              Test
                Period Ending June 30, 2009

            	 	 	
              2.90
                to 1.0

            	 	 	
              2.20
                to 1.0

            	 
	
              Test
                Period Ending September 30, 2009

            	 	 	
              2.80
                to 1.0

            	 	 	
              2.20
                to 1.0

            	 
	
              Test
                Period Ending December 31, 2009

            	 	 	
              2.80
                to 1.0

            	 	 	
              2.10
                to 1.0

            	 
	
              Test
                Period Ending March 31, 2010

            	 	 	
              2.70
                to 1.0

            	 	 	
              2.10
                to 1.0

            	 
	
              Test
                Period Ending June 30, 2010

            	 	 	
              2.60
                to 1.0

            	 	 	
              2.00
                to 1.0

            	 
	
              Test
                Period Ending September 30, 2010

            	 	 	
              2.60
                to 1.0

            	 	 	
              2.00
                to 1.0

            	 
	
              Test
                Period Ending December 31, 2010

            	 	 	
              2.60
                to 1.0

            	 	 	
              2.00
                to 1.0

            	 
	
              Test
                Period Ending March 31, 2011

            	 	 	
              2.50
                to 1.0

            	 	 	
              1.90
                to 1.0

            	 
	
              Test
                Period Ending June 30, 2011 and Each Test Period Ending
                Thereafter

            	 	 	
              2.50
                to 1.0

            	 	 	
              1.90
                to 1.0

            	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Annex
      II

    

      
        	
                Date

              	 	
                Qualified
                  Cash

              	 
	
                June
                  30, 2006

              	 	
                $

              	
                9,000,000

              	 
	
                July
                  31, 2006

              	 	
                $

              	
                9,000,000

              	 
	
                August
                  31, 2006

              	 	
                $

              	
                9,000,000

              	 
	
                September
                  30, 2006

              	 	
                $

              	
                9,000,000

              	 
	
                October
                  31, 2006

              	 	
                $

              	
                9,000,000

              	 
	
                November
                  30, 2006

              	 	
                $

              	
                9,000,000

              	 
	
                December
                  31, 2006

              	 	
                $

              	
                9,000,000

              	 
	
                January
                  31, 2007

              	 	
                $

              	
                9,000,000

              	 
	
                February
                  28, 2007

              	 	
                $

              	
                9,000,000

              	 
	
                March
                  31, 2007

              	 	
                $

              	
                9,000,000

              	 
	
                April
                  30, 2007

              	 	
                $

              	
                9,000,000

              	 
	
                May
                  31, 2007

              	 	
                $

              	
                9,000,000

              	 
	
                June
                  30, 2007

              	 	
                $

              	
                9,000,000

              	 
	
                July
                  31, 2007

              	 	
                $

              	
                10,000,000

              	 
	
                August
                  31, 2007

              	 	
                $

              	
                10,000,000

              	 
	
                September
                  30, 2007

              	 	
                $

              	
                10,000,000

              	 
	
                October
                  31, 2007

              	 	
                $

              	
                10,000,000

              	 
	
                November
                  30, 2007

              	 	
                $

              	
                10,000,000

              	 
	
                December
                  31, 2007

              	 	
                $

              	
                10,000,000

              	 
	
                January
                  31, 2008

              	 	
                $

              	
                10,000,000

              	 
	
                February
                  28, 2008

              	 	
                $

              	
                10,000,000

              	 
	
                March
                  31, 2008

              	 	
                $

              	
                10,000,000

              	 
	
                April
                  30, 2008

              	 	
                $

              	
                10,000,000

              	 
	
                May
                  31, 2008

              	 	
                $

              	
                7,500,000

              	 
	
                June
                  30, 2008

              	 	
                $

              	
                7,500,000

              	 
	
                July
                  31, 2008

              	 	
                $

              	
                5,000,000

              	 
	
                August
                  31, 2008

              	 	
                $

              	
                5,000,000

              	 
	
                September
                  30, 2008

              	 	
                $

              	
                5,000,000

              	 
	
                October
                  31, 2008

              	 	
                $

              	
                5,000,000

              	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                Date

              	 	
                 Qualified
                  Cash

              	 
	
                November
                  30, 2008

              	 	
                $

              	
                5,000,000

              	 
	
                December
                  31, 2008

              	 	
                $

              	
                5,000,000

              	 
	
                January
                  31, 2009

              	 	
                $

              	
                5,000,000

              	 
	
                February
                  28, 2009

              	 	
                $

              	
                5,000,000

              	 
	
                March
                  31, 2009

              	 	
                $

              	
                5,000,000

              	 

      

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    Annex
      III

    

    
      	
              Period

            	 	
              (X)

              Minimum
                Qualified Cash 

              Requirement
                

              Satisfied

              Fixed
                Charge 

              Coverage
                Ratio

            	 	
              (Y)

              Minimum
                Qualified Cash 

              Requirement
                

              Not
                Satisfied

              Fixed
                Charge 

              Coverage
                Ratio

            	 
	
              Test
                Period Ending April 30, 2009

            	 	 	
              0.60
                to 1.0

            	 	 	
              1.00
                to 1.0

            	 
	
              Test
                Period Ending June 30, 2009

            	 	 	
              0.70
                to 1.0

            	 	 	
              1.10
                to 1.0

            	 
	
              Test
                Period Ending September 30, 2009

            	 	 	
              0.70
                to 1.0

            	 	 	
              1.20
                to 1.0

            	 
	
              Test
                Period Ending December 31, 2009

            	 	 	
              0.70
                to 1.0

            	 	 	
              1.20
                to 1.0

            	 
	
              Test
                Period Ending March 31, 2010

            	 	 	
              0.80
                to 1.0

            	 	 	
              1.30
                to 1.0

            	 
	
              Test
                Period Ending June 30, 2010

            	 	 	
              0.80
                to 1.0

            	 	 	
              1.40
                to 1.0

            	 
	
              Test
                Period Ending September 30, 2010

            	 	 	
              0.90
                to 1.0

            	 	 	
              1.50
                to 1.0

            	 
	
              Test
                Period Ending December 31, 2010

            	 	 	
              0.90
                to 1.0

            	 	 	
              1.50
                to 1.0

            	 
	
              Test
                Period Ending March 31, 2011

            	 	 	
              0.90
                to 1.0

            	 	 	
              1.60
                to 1.0

            	 
	
              Test
                Period Ending June 30, 2011 and Each Test Period Ending
                Thereafter

            	 	 	
              1.00
                to 1.0

            	 	 	
              1.70
                to 1.0

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