Document:

ex10-2.htm

    Exhibit
10.2

     

    Accelerize
New Media, Inc.

     

    PLACEMENT
AGENT’S AGREEMENT

     

    

     

    November
9, 2009

     

    Skyebanc,
Inc.

    1151
Broad Street

    Suite:
115

    Shrewsbury,
New Jersey 07702

    

    Gentlemen:

     

    The
undersigned, Accelerize New Media, Inc., a Delaware corporation (the “Company”),
proposes to offer for sale in a private placement (“Offering”), up to three
million (3,000,000) shares of common stock at $0.40 per share (the “Common
Stock”), plus 3-year warrants to purchase an additional three million
(3,000,000)shares of common stock with an exercise price of $0.65 per share (the
“Warrants”, and collectively with the Common Stock, the
“Securities”).

     

    Appointment
of Placement Agent; The Offering Period.

     

    1.1           Appointment of Placement
Agent   You are
hereby appointed non exclusive Placement Agent of the Company during the
offering period herein specified (“Offering Period”) for the purpose of
assisting the Company in placing the shares with purchasers who are qualified
accredited investors (“Subscribers”).  You hereby accept such agency
and agree to assist the Company in placing shares with the
Subscribers.  Your agency hereunder is terminable for any reason by
either party upon a thirty (30) day prior written notice, and immediately upon
termination of the Offering or breach by you of your material obligations
hereunder.

     

    1.2           Offering Period 
The
Offering Period shall commence on the day the Offering Documents are first made
available to you by the Company and will continue until the earlier of final
Closing (as hereinafter defined) of the Maximum Offering or December 31, 2009
(the “Termination Date”), unless extended by the Company for a period of up to
an additional ninety (90) days from such date without notice to any Subscriber
(the “Offering Period”).  After the Initial Closing, subsequent
closings with respect to accepted subscriptions may take place at any time
during the Offering Period as may be mutually determined by the Company and the
Placement Agent (such subsequent closings and the Initial Closing will each be
referred to herein as a “Closing”).

     

    1.3           Offering Documents 
The
Company will provide the Placement Agent with a sufficient number of copies of
the Offering Documents for delivery to potential Subscribers and such other
information, documents and instruments which the Placement Agent deems
reasonably necessary to act as Placement Agent hereunder and to comply with the
rules, regulations and judicial and administrative interpretations respecting
compliance with applicable state and federal statutes related to the
Offering.

     

    
      
         

      

      
         

        
          

        

      

      
        
          Private
Placement Agent’s Agreement for Accelerize New Media, Inc.

          Page 2

           

        

      

       

    

    2.      Compliance with Securities
Laws.  Each of
the Company and the Placement Agent agrees to conduct the Offering in a manner
intended (a) to qualify as a private placement of the Securities in any
jurisdiction in which the Securities are offered (including the U.S.), and
(b) to comply with the requirements of Rule 506 of Regulation D under the
Securities Act.  Assuming the accuracy of the representations and
warranties given to the Company by each investor to the extent relevant for such
determination, the Offering will be exempt from the registration requirements of
the Securities Act.  The Company agrees (i) to limit offers to sell,
and solicitations of offers to buy, the Securities to persons reasonably
believed by it to be “accredited investors” within the meaning of Rule 501(a)
under the Securities Act, and (ii) not to engage in any form of general
solicitation or general advertising in connection with the Offering within the
meaning of Rule 502 under the Securities Act.  The Company agrees to
conduct the Offering in a manner intended to comply with the registration or
qualification requirements, or available exemptions therefrom, under applicable
state securities laws.  The Company shall be responsible for
compliance with the filing requirements of the securities laws of all applicable
countries, states of the U.S., and other jurisdictions.  The Placement
Agent shall advise the Company of those states of the U.S. and other
jurisdictions in which the Placement Agent intends to offer the Securities in
order that the Company’s counsel can ensure that the Offering has been qualified
or exempted under the appropriate laws and regulations.  The Placement
Agent shall not engage in sales of the Securities in any state requiring
pre-sale qualification until the Company has qualified to sell Securities in
such state.

     

    3.      Representations and
Warranties of the Company  The
Company represents and warrants to the Placement Agent and the Subscribers as
follows:

     

    3.1           Disclosure in Offering
Documents.

     

    3.1.1              Disclosure of
Contracts  The
descriptions in the Public Documents of all material contracts, agreements,
instruments, indentures, mortgages, loans, leases, licenses, arrangements or
undertakings of any nature, written or oral, of the Company which involve future
payments, performance or services, development of products, or delivery of goods
or materials to or by the Company of an aggregate amount or value in excess of
$250,000, or which otherwise are material to the business or prospects of the
Company (collectively, “Contracts”) are accurate in all material respects and
present fairly the information required to be disclosed therein and there are no
contracts or other documents required to be described in the Public Documents
which have not been so described.  The Company has furnished the
Placement Agent, when and if requested, with true, correct and complete copies
(or where oral, written descriptions) of all Contracts, including all exhibits,
schedules, amendments, supplements, modifications and waivers thereto. Except as
otherwise stated in the Public Documents, each of the Contracts is in full force
and effect, the Company has performed in all material respects all of its
obligations thereunder and is not in default thereunder, and no party to a
Contract has made a claim to the effect that the Company has failed to perform
any obligations thereunder.  To the best knowledge of the Company, the
Company has not received any written notification from any contracting party to
a Contract to terminate, cancel or modify such Contract or to reduce or
otherwise change its activity thereunder so as to adversely affect in any
material respect the benefits derived or expected to be derived therefrom by the
Company.

     

    
      
         

      

      
         

        
          

        

      

      
         

          Private
Placement Agent’s Agreement for Accelerize New Media, Inc.

          Page 3

           

        

      

       

    

    3.2           Changes After Dates in
Offering Documents.

     

    3.2.1              No Material Adverse
Change.  Except
as otherwise stated in the Public Documents, since the Balance Sheet Date, as
hereinafter defined, (i) there has been no material adverse change in the
condition, financial or otherwise, or in the results of operations, business or
business prospects of the Company, including, but not limited to a material loss
or interference with its business from fire, storm, explosion, flood or other
casualty, whether or not covered by insurance, or from any labor dispute or
court or governmental action, order or decree, whether or not arising in the
ordinary course of business, (ii) the Company has not become a party to, and
neither the business nor the property of the Company has become the subject of,
any litigation which, if adversely determined, would have a material adverse
effect on the business, properties, assets, condition (financial or otherwise)
of the Company, whether or not in the ordinary course of business (a “Material
Adverse Effect”), and (iii) there have been no transactions entered into by the
Company, other than those in the ordinary course of business or reflected in the
Public Documents, which are material with respect to the condition, financial or
otherwise, or to the results of operations, or business of the
Company.  The Balance Sheet Date is defined as March 31,
2009.

     

    3.2.2              Recent Securities
Transactions. Etc.  Since the
most recent Balance Sheet date, and except as otherwise specifically stated in
the Public Documents or on Schedule 3.2.2 hereto, the Company has not (i) issued
any securities or incurred any liability or obligation, direct or contingent,
for borrowed money; (ii) declared or paid any dividend or made any other
distribution on or in respect to its capital stock; or (iii) issued any options,
warrants or other rights to purchase the capital stock of the Company, or any
security or other instrument which by its terms is convertible into, exercisable
for or exchangeable for capital stock of the Company.

     

    3.3           No Preemptive Rights;
Options; Registration Rights  Except as
set forth in the Documents, there are no preemptive or other rights to subscribe
for or purchase, or any restriction upon the voting or transfer of, any shares
of Common Stock, or other securities of the Company.

     

    
      
         

      

      
         

        
          

        

      

      
         

          Private
Placement Agent’s Agreement for Accelerize New Media, Inc.

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    3.4           Financial Statements 
The
financial statements of the Company, including any notes thereto and supporting
schedules, included or incorporated by reference in the Public Documents
(“Financials”), fairly present the financial position and results of operations
of the Company at the dates thereof and for the periods covered thereby,
subject, in the case of interim periods, to year-end adjustments and normal
recurring accruals.  The Company has no material liabilities or
obligations, contingent, direct, indirect or otherwise except (i) as set forth
in the balance sheet for the Balance Sheet Date included in the Financials or
the footnotes thereto, (ii) those incurred in the ordinary course of business
since the Balance Sheet Date, and (iii) otherwise as set forth in the Public
Documents.  The Public Documents also set forth all material
outstanding amounts due to any employees, officers, directors or stockholders of
the Company, or to any of their respective affiliates, including, but not
limited to, accrued salaries, loans, etc.

     

    3.5           Authorized Capital; Options;
Etc.  The
Company had, at the date or dates indicated in the Public Documents, such duly
authorized, issued and outstanding capitalization as set forth in the Public
Documents.

     

    3.6           Valid Issuance of
Securities: Etc.

     

    3.6.1              Outstanding Securities 
All
issued and outstanding securities of the Company have been duly authorized and
validly issued and are fully paid and non-assessable; the holders thereof have
no rights of rescission with respect thereto, and are not subject to personal
liability by reason of being such holders; and none of such securities were
issued in violation of the preemptive rights of any holders of any security of
the Company or similar contractual rights granted by the Company.  All
outstanding options and warrants to purchase shares of capital stock constitute
the valid and binding obligations of the Company, enforceable in accordance with
their terms.  The authorized capital stock and outstanding options and
warrants conform to all statements relating thereto contained in the Public
Documents.  The offers and sales of the outstanding capital stock,
options and warrants to purchase shares of capital stock were at all relevant
times either registered under the Act and the applicable state securities or
Blue Sky laws or exempt from such registration requirements.

     

    3.6.2              Common Shares &
Warrants  The
securities underlying the warrants have been duly and validly authorized and,
when issued and delivered in accordance with the terms of the Subscription
Agreements, will be duly and validly issued, fully paid and
non-assessable.  The holders of the shares and warrants will not be
subject to personal liability by reason of being such holders.  All
corporate action required to be taken for the authorization, issuance and sale
of the shares and warrants and the securities contained in the warrants has been
duly and validly taken.

     

    3.7           Registration Rights of Third
Parties  Except as
set forth in the Public Documents or on Schedule 3.7 hereto, no holders of any
securities of the Company or of any options or warrants of the Company
exercisable for or convertible or exchangeable into securities of the Company
have the right to require the Company to register any such securities of the
Company under the Act or to include any such securities in a registration
statement to be filed by the Company.

     

    
      
         

      

      
         

        
          

        

      

      
        
          Private
Placement Agent’s Agreement for Accelerize New Media, Inc.

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    3.8           Due Authorization 
The
Company has full right, power and authority to enter into this Agreement and the
Subscription Agreements, to issue the shares and warrants and the securities
contained in the shares and warrants and to perform all of its obligations
hereunder and thereunder and to consummate the transactions contemplated by the
Offering Documents.  This Agreement has been, and the Subscription
Agreements, when executed and delivered, will have been, duly and validly
authorized by all necessary corporate action and no further corporate action or
approval is or will be required for their respective execution, delivery and
performance.  This Agreement constitutes and each Subscription
Agreement (assuming the due authorization, execution and delivery by each
subscriber) to be entered into by the Company with respect to the purchase and
sale of the shares and warrants, will constitute, when executed and delivered by
the Company, valid and binding obligations of the Company, enforceable against
the Company in accordance with their respective terms (except (i) as such
enforceability may be limited by bankruptcy, insolvency, reorganization or
similar laws now or hereafter in effect relating to or affecting creditors’
rights generally, (ii) that the enforceability of the indemnification and
contribution provisions of the respective agreements may be limited by the
federal and state securities laws and public policy, and (iii) that the remedy
of specific performance and injunctive and other forms of equitable relief may
be subject to the equitable defenses and to the discretion of the court before
which any proceeding therefor may be brought).

     

    3.9           No Conflicts 
The
Company’s execution, delivery, and performance of this Agreement and the
Subscription Agreements, the consummation by the Company of the transactions
contemplated herein and therein and the compliance by the Company with the
provisions of this Agreement and the Subscription Agreements have been duly
authorized by all necessary corporate action and do not and will not, with or
without the giving of notice or the lapse of time or both (i) result in a breach
of, or conflict with any of the terms and provisions of, or constitute a default
under, or result in the creation, modification, termination or imposition of any
lien, charge or encumbrance upon any property or assets of the Company pursuant
to the terms of any indenture, mortgage, deed of trust, note, loan or credit
agreement or any other agreement or instrument evidencing an obligation for
borrowed money, or any other agreement or instrument to which the Company is a
party or by which the Company may be bound or to which any of the property or
assets of the Company is subject; (ii) result in any violation of the provisions
of the Certificate of Incorporation or the By-laws of the Company; (iii) to the
best of the Company’s knowledge, violate any existing applicable law, rule,
regulation, judgment, order or decree of any governmental agency or court,
domestic or foreign, having jurisdiction over the Company or any of its material
properties or material businesses; or (iv) have any material adverse effect on
any permit, license, certificate, registration, approval, consent, license or
franchise necessary for the Company to own or lease and operate any of its
properties or to conduct its business.

     

    
      
         

      

      
         

        
          

        

      

      
        
          Private
Placement Agent’s Agreement for Accelerize New Media, Inc.

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    3.10           No Defaults 
Except as
described in the Public Documents, no material default exists in the due
performance and observance of any term, covenant or condition of any permit,
license, contract, indenture, mortgage, deed of trust, note, loan or credit
agreement, or any other agreement or instrument evidencing an obligation for
borrowed money, or any other agreement or instrument to which the Company is a
party or by which the Company may be bound or to which any of the properties or
assets of the Company is subject the effect of which would have a Material
Adverse Effect.  Except as described in the Public Documents, the
Company is not in violation of any material term or provision of its Certificate
of Incorporation or By-Laws or in material violation of any franchise, license,
permit, applicable law, rule, regulation, judgment or decree of any governmental
agency or court, domestic or foreign, having jurisdiction over the Company or
any of its properties or business.

     

    3.11           Corporate Power; Licenses;
Consents.

     

    3.11.1              Conduct of Business 
To the
Best of its knowledge, the Company has all requisite corporate power and
authority, and has all necessary authorizations, approvals, orders, licenses,
certificates and permits of and from all governmental regulatory officials,
agencies, authorities and bodies to own or lease its properties and conduct its
business as described in the Public Documents.  The Company is and has
been doing business in material compliance with all such authorizations,
approvals, orders, licenses, certificates and permits and all federal, state and
local laws, rules and regulations.  The disclosures in the Public
Documents concerning the effects of federal, state and local regulation on the
Company’s business as currently conducted or contemplated to be conducted are
correct in all material respects and do not omit to state a material
fact.

     

    3.11.2              Transactions Contemplated
Herein; Consents  The
Company has all corporate power and authority to enter into this Agreement, and
the Subscription Agreements to carry out the provisions and conditions hereof
and thereof, and all consents, authorizations, approvals and orders required in
connection therewith have been obtained.  Except as set forth in the
Public Documents, no consent, approval, authorization, order of, or filing with,
any court, governmental agency, authority or other body is required to
consummate the transactions contemplated by this Agreement and the Subscription
Agreements, and the issuance of the Securities, except that the offer and sale
of the Securities in certain jurisdictions may be subject to the provisions of
the securities or Blue Sky laws of such jurisdictions.

     

    3.12           Title to Property;
Insurance  Except as
set forth in the Public Documents, the Company has good and marketable title to,
or valid and enforceable leasehold estates in, all items of real and personal
property (tangible and intangible) owned or leased by it, free and clear of all
liens, encumbrances, claims, security interests, defects and restrictions of any
material nature whatsoever.  The Company has adequately insured its
properties against loss or damage by fire or other casualty and maintains such
insurance in adequate amounts which are adequate to protect its financial
condition against the risks involved in the conduct of its
businesses.

     

    
      
         

      

      
         

        
          

        

      

      
        
          Private
Placement Agent’s Agreement for Accelerize New Media, Inc.

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    3.13           No Pending Actions 
Except as
set forth in the Public Documents, there are no actions, suits, proceedings,
claims, or hearings of any kind or nature existing or pending (or, to the best
knowledge of the Company, threatened) or, to the best knowledge of the Company,
any investigations or inquiries, before or by any court, or other governmental
authority, tribunal or instrumentality (or, the Company’s best knowledge, any
state of facts which would give rise thereto), pending or threatened against the
Company, or involving the properties of the Company, which might result in any
Material Adverse Effect or which might materially adversely affect the
transactions or other acts contemplated by this Agreement or the validity or
enforceability of this Agreement.  Except as described in the Public
Documents, there are no outstanding orders, judgments or decrees of any court,
governmental agency or other tribunal naming the Company and enjoining the
Company from taking, or requiring the Company to take, any action, or to which
the Company, its properties or business, is bound or subject.

     

    3.14           Due Incorporation,
Qualification and Good Standing  The
Company has been duly incorporated, validly exists as a corporation and is in
good standing under the laws of its state of incorporation.  The
Company is duly qualified and licensed and in good standing as a foreign
corporation for the transaction of business and is in good standing in each
jurisdiction in which the ownership or leasing of its properties or the conduct
of its business requires such qualification or licensing, except where the
failure to qualify would not have a Material Adverse Effect.  The
Company has all requisite corporate power and authority necessary to own or hold
its properties and conduct its business as described in the Public
Documents.

     

    3.15           Taxes 
Except as
set forth in the Public Documents or as set forth on Schedule 3.15 hereto, the
Company has filed all federal tax returns and all state and municipal and local
tax returns (whether relating to income, sales, franchise, withholding, real or
personal property or other types of taxes) required to be filed under the laws
of the United States and applicable states, and has paid in full all taxes which
have become due pursuant to such returns or claimed to be due by any taxing
authority or otherwise due and owing; provided, however, that the Company has
not paid any tax, assessment, charge, levy or license fee that it is contesting
in good faith and by proper proceedings and adequate reserves for the accrual of
same are maintained if required by generally accepted accounting
principles.  Each of the tax returns heretofore filed by the Company
correctly and accurately reflects the amount of its tax liability
thereunder.  Except as set forth in the Public Documents, the Company
has withheld, collected and paid all levies, assessments, license fees and taxes
to the extent required.  As used herein, “tax” or “taxes” include all
taxes, charges, fees, levies or other assessments imposed by any Federal, state,
local, or foreign taxing authority, including, without limitation, income,
premium, recapture, credit, excise, property, sales, use, occupation, service,
service use, leasing, leasing use, value added, transfer, payroll, employment,
license, stamp, franchise or similar taxes (including any interest earned
thereon or penalties or additions attributable thereto).  The term
“returns” means all returns, declarations, reports, statements, and other
documents required to be filed in respect of taxes.

     

    
      
         

      

      
         

        
          

        

      

      
        
          Private
Placement Agent’s Agreement for Accelerize New Media, Inc.

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    3.16           Reserved.

     

    3.17           Transactions Affecting
Disclosure to FINRA.

     

    3.17.1              Finder’s Fees 
The
Company is not obligated to pay a finder’s fee to anyone in connection with the
introduction of the Company to the Placement Agent, or the consummation of the
Offering contemplated hereunder.

     

    3.17.2              Use of Proceeds 
None of
the net proceeds of the Offering will be paid by the Company to any FINRA member
or its affiliate or associates, except as specifically authorized
herein.

     

    3.18           Foreign Corrupt Practices
Act  Neither
the Company nor any of its subsidiaries has, nor any director, officer, agent,
employee or other person acting on behalf of the Company or any subsidiary has
in the course of his actions for or on behalf of the Company, used any corporate
funds for any unlawful contribution, gift, entertainment or other unlawful
expenses relating to political activity; made any direct or indirect unlawful
payment to any foreign or domestic government official or employee from
corporate funds; violated or is in violation of any provision of the U.S.
Foreign Corrupt Practices Act of 1977, as amended; or made any bribe, rebate,
payoff, influence payment, kickback or other unlawful payment to any foreign or
domestic government official or employee.  Without limiting the
generality of the foregoing, the Company and its subsidiaries have not directly
or indirectly made or agreed to make (whether or not said payment is lawful) any
payment to obtain, or with respect to, sales other than usual and regular
compensation to its or their employees and sales representatives with respect to
such sales.

     

    3.19           Intangibles 
The
Company owns or possesses the requisite licenses or rights to use all material
trademarks, service marks, service names, trade names, patents and patent
applications, copyrights and other rights (collectively, “Intangibles”) used by
the Company in its business or relating to products sold by the Company, and all
such Intangibles are stated in the Public Documents.  Any of the
Company’s Intangibles which have been registered in the United States Patent and
Trademark Office have been fully maintained and are in full force and effect,
except where the failure to do so would not result in a Material Adverse
Effect.  There is no claim or action by any person pertaining to, or
proceeding pending or to the Company’s knowledge, threatened and the Company has
not received any notice of conflict with the asserted rights of others which
challenges the exclusive right of the Company with respect to any Intangibles
used in the conduct of the Company’s business except as described in the Public
Documents or except where such challenge, even if successful, would not result
in a Material Adverse Effect.  To the best of Company’s knowledge, the
Intangibles and the Company’s current products, services and processes do not
infringe on any intangibles held by any third party.  To the best of
the Company’s knowledge, no others have infringed upon the Intangibles of the
Company.

     

    
      
         

      

      
         

        
          

        

      

      
        
          Private
Placement Agent’s Agreement for Accelerize New Media, Inc.

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    3.19           Relations With
Employees.

     

    3.19.1              Employee Matters 
The
Company has generally enjoyed a satisfactory employer-employee relationship with
its employees and is in compliance in all material respects with all federal,
state and local laws and regulations respecting the employment of its employees
and employment practices, terms and conditions of employment and wages and hours
relating thereto.  There are no pending investigations involving the
Company by the U.S. Department of Labor, or any other governmental agency
responsible for the enforcement of such federal, state or local laws and
employment laws and regulations.  There is no unfair labor practice
charge or complaint against the Company pending before a Labor Relations Board
or any strike, picketing, boycott, dispute, slowdown or stoppage pending or
threatened against or involving the Company or any predecessor
entity.  No questions concerning representation exist respecting the
employees of the Company and no collective bargaining agreement or modification
thereof is currently being negotiated by the Company.  No grievance or
arbitration proceeding is pending under any expired or existing collective
bargaining agreements of the Company, if any.

     

    3.19.2              Employee Benefit Plans 
Except as
disclosed in the Public Documents, the Company neither maintains, sponsors nor
contributes to, nor is it required to contribute to, any program or arrangement
that is an “employee pension benefit plan, an employee welfare benefit plan,” or
a “multi-employer plan” as such terms are defined in Sections 3(2), 3(1) and
3(37), respectively, of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”) (“ERISA Plans”).  Other than as disclosed in the
Public Documents, the Company does not, and has at no time, maintained or
contributed to a defined benefit plan, as defined in Section 3(35) of
ERISA.  Except as disclosed in the Public Documents, there are no
unfunded benefits under any ERISA Plan which is subject to the funding standards
of ERISA. Other than claims for benefits in the ordinary course, there is no
pending claim, litigation, arbitration or any other legal proceeding involving
any ERISA Plan which may result in material liability on the part of the Company
or any ERISA Plan under ERISA or any other law, nor, is there any reasonable
basis for such a claim.  The Company has no bonus, incentive or
deferred compensation plans which constitute a continuing liability of the
Company, except individual arrangements of the Company with employees relating
to their employment.  There are no employees of the Company who, in
connection with their employment by the Company, are receiving any pension or
retirement payments or are entitled to receive any unfunded pensions not covered
by a pension plan to which the Company is a party.

     

    
      
         

      

      
         

        
          

        

      

      
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Placement Agent’s Agreement for Accelerize New Media, Inc.

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    3.20           Environmental Matters 
The
Company and each of its subsidiaries is in compliance in all material respects
with all Environmental and Safety Requirements, and there are no proceedings
pending or, to the knowledge of the Company, threatened against the Company or
any of its subsidiaries alleging any failure to so comply or involving any of
its past operations or any real property currently used by the Company or any of
its subsidiaries.  Neither the Company nor any of its subsidiaries has
received any written or oral notice or report with respect to it or its
facilities regarding any (A) actual or alleged violation of environmental and
safety requirements or (B) actual or potential liability arising under
Environmental and Safety Requirements, including, without limitation, any
investigatory, remedial or corrective obligation.  Neither the Company
nor any of its subsidiaries has expressly assumed or undertaken any liability of
any other person under any Environmental and Safety
Requirements.  Neither the Company nor any of its subsidiaries has
treated, stored, disposed of, arranged for or permitted the disposal of,
transported, handled or released any substance, or owned or operated any real
property in a manner that has given rise to liabilities pursuant to CERCLA, SWDA
or any other Environmental and Safety Requirement, including any liability for
response costs, corrective action costs, personal injury, property damage,
natural resources damage or attorney fees, or any investigative, corrective or
remedial obligations.  “Environmental and Safety
Requirements” means all laws, orders, contractual obligations and all
common law concerning public health and safety, worker health and safety, and
pollution or protection of the environment, including, without limitation, all
those relating to the presence, use, production, generation, handling,
transportation, treatment, storage, disposal, distribution, labeling, testing,
processing, discharge, release, threatened release, control or cleanup of any
hazardous materials, substances or wastes, chemical substances or mixtures,
pesticides, pollutants, contaminants, toxic chemicals, petroleum products or
byproducts, asbestos, polychlorinated biphenyls, noise or radiation, including,
but not limited to, the SWDA, the Clean Air Act, as amended, 42 U.S.C. §§ 7401
et seq., the Federal Water Pollution Control Act, as amended, 33 U.S.C. §§ 1251
et seq., the Emergency Planning and Community Right-to-Know Act, as amended, 42
U.S.C. §§ 11001 et seq., CERCLA, the Hazardous Materials Transportation Uniform
Safety Act, as amended, 49 U.S.C. §§ 5101 et seq., the Occupational Safety and
Health Act of 1970, as amended, and the rules and regulations promulgated
thereunder.  “CERCLA” means the
Comprehensive Environmental Response, Compensation, and Liability Act, as
amended, and the rules and regulations promulgated thereunder.  “SWDA” means the Solid
Waste Disposal Act, as amended, and the rules and regulations promulgated
thereunder.

    

    3.21           No Regulatory Problems 
The
Company (i) has not filed a registration
statement which is the subject of any pending proceeding or examination under
Section 8 of the Securities Act, and is not and has not been the subject of any
refusal order or stop order thereunder; (ii) is not subject to any pending
proceeding under Rule 258 of the Securities Act or any similar rule adopted
under Section 3(b) of the Securities Act, or to an order entered thereunder;
(iii) has not been convicted of any felony or misdemeanor in connection with the
purchase or sale of any security or involving the making of any false filing
with the Commission; (iv) is not subject to any order, judgment, or decree of
any court of competent jurisdiction temporarily or preliminarily restraining or
enjoining, or any order, judgment, or decree of any court of competent
jurisdiction permanently restraining or enjoining, the Company from engaging in
or continuing any conduct or practice in connection with the purchase or sale of
any security or involving the making of any false filing with the
Commission;  and (v) is not subject to a United States Postal Service
false representation order entered under Section 3005 of Title 39, United States
Code; or a temporary restraining order or preliminary injunction entered under
Section 3007 of Title 39, United States Code, with respect to conduct alleged to
have violated Section 3005 of Title 39, United States Code.

     

    
      
         

      

      
         

        
          

        

      

      
        
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Placement Agent’s Agreement for Accelerize New Media, Inc.

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    To the
Company’s knowledge, none of the Company’s directors, officers, or beneficial
owners of five (5%) percent or more of any class of its equity securities (i)
has been convicted of any felony or misdemeanor in connection with the purchase
or sale of any security, involving the making of a false filing with the
Commission, or arising out of the conduct of the business of an underwriter,
broker, dealer, municipal securities dealer, or investment advisor; (ii) is
subject to any order, judgment, or decree of any court of competent jurisdiction
temporarily or preliminarily enjoining or restraining, or is subject to any
order, judgment, or decree of any court of competent jurisdiction, permanently
enjoining or restraining such person from engaging in or continuing any conduct
or practice in connection with the purchase or sale of any security, or
involving the making of a false filing with the Commission, or arising out of
the conduct of the business of an underwriter, broker, dealer, municipal
securities dealer, or investment adviser; (iii) is subject to an order of the
Commission entered pursuant to Section 15(b), 15B(a) or 15B(c) of the Exchange
Act, or is subject to an order of the Commission entered pursuant to Section
203(e) or (f) of the Investment Advisers Act of 1940; (iv) is suspended or
expelled from membership in, or suspended or barred from association with a
member of, an exchange registered as a national securities exchange pursuant to
Section 6 of the Exchange Act, an association registered as a national
securities association under Section 15A of the Exchange Act, or a Canadian
securities exchange or association for any act or omission to act constituting
conduct inconsistent with just and equitable principles of trade; or (v) is
subject to a United States Postal Service false representation order entered
under Section 3005 of Title 39, United States Code, or is subject to a
restraining order or preliminary injunction entered under Section 3007 of Title
39, United States Code, with respect to conduct alleged to have violated Section
3005 of Title 39, United States Code.

     

    3.22           Stock Collateral 
None of
the Company’s obligations to any third party are secured by any of the Company’s
outstanding securities.

     

    3.23           Reaffirmation

     

    All of
the representations, warranties and covenants of the Company set forth in this
Agreement or in any letter or certificate furnished to Placement Agent pursuant
hereto, each of which is incorporated herein by reference and made a part
hereof, shall be true in all material respects upon the execution of this
Agreement.

     

    4.      Representations and
Warranties of the Placement Agent  The
Placement Agent represents and warrants as follows:

     

    
      
         

      

      
         

        
          

        

      

      
        
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Placement Agent’s Agreement for Accelerize New Media, Inc.

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    4.1           Due Incorporation 
The
Placement Agent is duly incorporated and validly existing and in good standing
under the laws of its state of incorporation and is duly qualified as a foreign
corporation for the transaction of business and is in good standing in each
jurisdiction where the failure to be so qualified would have a materially
adverse effect on the business of the Placement Agent.

     

    4.2           Broker/Dealer
Registration  The
Placement Agent is registered as a broker-dealer under Section 15 of the
Exchange Act.

     

    4.3           Good Standing 
The
Placement Agent is a member in good standing of the NASD and no proceedings are
pending or to the Placement Agent’s knowledge, threatened, to revoke or limit
such status.

     

    4.4           Sale in Certain
Jurisdictions  Sales of
Shares by the Placement Agent will be made only in such jurisdictions in which
(i) the Placement Agent is a registered broker-dealer or where an applicable
exemption from such registration exists and (ii) the Offering and sale of
Securities is registered under, or is exempt from, applicable registration
requirements.

     

    4.5           Compliance with Laws 
Offers
and sales of Shares by the Placement Agent will be made in compliance with the
provisions of Rule 506 of Regulation D and/or Section 4(2) of the Act, and the
Placement Agent will furnish to each investor a copy of the Offering Documents
prior to accepting any payments for Shares.

     

    4.6           Sale to Accredited
Investors, No General Solicitation. The Placement Agent understands that
the Securities have not been registered under the Securities Act or any Blue Sky
law of any state and may not be offered or sold except pursuant to an exemption
from, or in a transaction not subject to, the registration requirements of the
Securities Act and such Blue Sky laws. The Placement Agent agrees that it will
not solicit offers for, or offer or sell, the Securities by any form of general
solicitation or general advertising within the meaning of Section 4(2) of the
Securities Act, and Rule 506 thereunder.  The Placement Agent further
agrees to not offer or sell or arrange for the offer or sale of the Securities
except (i) to those the Placement Agent reasonably believes are “accredited
investors” (as defined in Rule 501 of Regulation D), or (ii) in any other manner
that does not require registration of the Securities under the Securities
Act.

     

    4.7  Due Authorization.
The Placement Agent has all requisite power and authority to execute,
deliver and perform its obligations under this Agreement between the Company and
the Placement Agent, and this Agreement will be duly authorized and validly
executed and delivered by the Placement Agent and constitutes a legal, valid and
binding agreement of the Placement Agent enforceable against the Placement Agent
in accordance with its terms.

    

    
      
         

      

      
         

        
          

        

      

      
        
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    5.      Closing.

     

    At or
prior to each closing, and as a condition of the Placement Agent’s obligations
hereunder, the following shall have been satisfied:  (i) the Company
shall have delivered to the Placement Agent at the closing (a) a certificate of
the Company, signed by two executive officers thereof, stating the
representations and warranties contained herein are true and correct as of the
date of such closing as if, and to the same effect, the warranties and
representations were made on such date;  (b) Subscription Agreements
signed by the Company; (c) Consents of any party required to consummate this
Offering and the transactions contemplated thereby;  and (d) such
other closing documents as shall be reasonably requested by the Placement Agent
and/or its counsel.

     

    5.1           Placement Agent’s Fees and
Expenses  At the
Initial Closing, and at each subsequent Closing, the Company shall pay to the
Placement Agent a commission equal to ten (10%) percent of the aggregate
purchase price of the shares sold by the Placement Agent plus up to three (3%)
percent Non-Accountable Expense Allowance of the aggregate purchase price of
each share sold. The Retainer Amount will be applied against the Non Accountable
Expenses Allowance, and the Placement Agent will be entitled only to the
difference between them, if any. In any event, the total Expenses of Offering
payable by the Company shall not exceed thirty six thousand dollars ($36,000).
The company will also issue to the Placement Agent shares of common stock equal
to ten percent (10%) of the total number of shares of common stock issued to the
Subscribers.

     

    5.2           Additional Finder’s
Fee.  In the
event that at any time prior to the second (2nd)
anniversary of the final Closing (as defined in the Placement Agent Agreement)
the Company or any of its affiliates shall enter into any transaction
(including, without limitation, any merger, consolidation, acquisition,
financing, joint venture or other arrangement) with any party introduced to the
Company directly by the Placement Agent, which party is listed in Exhibit A attached
hereto or is added to Exhibit A by the Placement Agent throughout the term of
this Agreement, during
such period, the Placement Agent will be paid a transaction fee, payable at the
closing thereof, equal to a percentage of the consideration or value received by
the Company and/or its stockholders as follows: (a) 5% of the first
$1,000,000, (b) 4% of the next $1,000,000, (c) 3% of the next
$1,000,000, (d) 2% of the next $1,000,000, and (e) 1% of all amounts
in excess of $4,000,000 [or whatever arrangement you deem appropriate]. In no
event shall the fees payable pursuant to this paragraph together with any
other fees paid to the Placement Agent by the Company shall exceed the maximum
finder's fee allowed by the Financial Industry Regulatory Authority (“FINRA”) at
the time of such transaction.

     

    
      
         

      

      
         

        
          

        

      

      
        
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    6.      Covenants 
The
Company covenants and agrees that:

     

    6.1           Expenses of Offering and
Other Expenses  The
Company shall be responsible for, and shall pay, all fees, disbursements and
expenses incurred in connection with the Offering, including, but not limited
to, the Company’s legal and accounting fees and disbursements, the costs of
preparing, printing, mailing and delivering, and filing, where necessary, the
Offering Documents and all amendments and supplements thereto (in such
quantities as the Placement Agent may reasonably require), the costs of any “due
diligence” meeting held by the Company as requested by the Placement Agent, the
fees and disbursements of the Placement Agent counsel. The total Expenses of
Offering and Other Expenses in accordance with this Section shall not exceed
thirty six thousand dollars ($36,000).

     

    6.2   Further Assurances 
The
Company will take such actions as may be reasonably required or desirable to
carry out the provisions of this Agreement and the transaction contemplated
hereby.

     

    7.      Indemnification and
Contribution.

     

    7.1           Indemnification by the
Company  The
Company agrees to indemnify and hold harmless the Placement Agent and each
person, if any, who controls the Placement Agent within the meaning of the
Securities Act and/or the Exchange Act against any losses, claims, damages or
liabilities, joint or several, to which the Placement Agent or such controlling
person may become subject, under the Securities Act or otherwise, insofar as
such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon (i) any untrue statement or alleged untrue
statement of a material fact contained (A) in the Offering Documents, or (B) in
any blue sky application or other document executed by the Company specifically
for blue sky purposes or based upon any other written information furnished by
the Company or on its behalf to any state or other jurisdiction in order to
qualify any or all of the Securities under the securities laws thereof (any such
application, document or information being hereinafter called a “Blue Sky
Application”), (ii) any breach by the Company of any of its representations,
warranties or covenants contained herein or in any of the Subscription
Agreements, or (iii) the omission or alleged omission by the Company to state in
the Offering Documents or in any Blue Sky Application a material fact required
to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading; and will reimburse
the Placement Agent and each such controlling person for any legal or other
expenses reasonably incurred by the Placement Agent or such controlling person
in connection with investigating or defending any such loss, claim, damage,
liability or action, whether arising out of an action between the Placement
Agent and a third party; provided, however, that the Company will not be liable
in any such case to the extent that any such loss, claim, damage or liability
arises out of or is based upon (i) an untrue statement or alleged untrue
statement or omission or alleged omission made in reliance upon and in
conformity with written information regarding the Placement Agent which is
furnished to the Company by the Placement Agent specifically for inclusion in
the Offering Documents or any such Blue Sky Application or (ii) any breach by
the Placement Agent of the representations, warranties or covenants contained
herein (together, (i) and (ii) above are referred to as the “Non-indemnity
Events”).

     

    
      
         

      

      
         

        
          

        

      

      
        
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    7.2           Indemnification by the
Placement Agent  The
Placement Agent agrees to indemnify and hold harmless the Company and each
person, if any, who controls the Company within the meaning of the Securities
Act and/or the Exchange Act against any losses, claims, damages or liabilities,
joint or several, to which the Company or such controlling person may become
subject, under the Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
Non-Indemnity Event; and will reimburse the Company and each such controlling
person for any legal or other expenses reasonably incurred by the Company or
such controlling person in connection with investigating or defending any such
loss, claim, damage, liability or action provided that such loss, claim, damage
or liability is found ultimately to arise out of or be based upon any
Non-Indemnity Event.

     

    7.3           Procedure 
Promptly
after receipt by an indemnified party under this Section 7 of notice of the
commencement of any action, such indemnified party will, if a claim in respect
thereof is to be made against any indemnifying party under this Section 7,
notify in writing the indemnifying party of the commencement thereof; and the
omission so to notify the indemnifying party will relieve the indemnifying party
from any liability under this Section 6 as to the particular item for which
indemnification is then being sought, but not from any other liability which it
may have to any indemnified party.  In case any such action is brought
against any indemnified party, and it notifies an indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate
therein, and to the extent that it may wish, jointly with any other indemnifying
party, similarly notified, to assume the defense thereof, with counsel who shall
be to the reasonable satisfaction of such indemnified party, and after notice
from the indemnifying party to such indemnified party of its election so to
assume the defense thereof, the indemnifying party will not be liable to such
indemnified party under this Section 6 for any legal or other expenses
subsequently incurred by such indemnified party in connection with the defense
thereof.  Any such indemnifying party shall not be liable to any such
indemnified party on account of any settlement of any claim or action effected
without the consent of such indemnifying party.

     

    
      
         

      

      
         

        
          

        

      

      
        
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    7.4           Contribution 
If the
indemnification provided for in this Section 7 is unavailable to any indemnified
party (other than as a result of the failure to notify the indemnifying party as
provided in Section 7.3 hereof) in respect to any losses, claims, damages,
liabilities or expenses referred to therein, then the indemnifying party, in
lieu of indemnifying such indemnified party, will contribute to the amount paid
or payable by such indemnified party, as a result of such losses, claims,
damages, liabilities or expenses (i) in such proportion as is appropriate to
reflect the relative benefits received by the Company on the one hand, and the
Placement Agent, on the other hand, from the Offering, or (ii) if the allocation
provided by clause (i) above is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred
to in clause (i) above, but also the relative fault of the Company, on the one
hand , and of the Placement Agent, on the other hand, in connection with the
statements or omissions which resulted in such losses, claims, damages,
liabilities or expenses as well as any other relevant equitable
considerations.  The relative benefits received by the Company, on the
one hand, and the Placement Agent, on the other hand, shall be deemed to be in
the same proportion as the total proceeds from the Offering (net of sales
commissions, but before deducting other expenses) received by the Company bear
to the commissions received by the Placement Agent.  The relative
fault of the Company, on the one hand, and the Placement Agent, on the other
hand, will be determined with reference to, among other things, whether the
untrue or alleged untrue statement of a material fact of the omission to state a
material fact relates to information supplied by the Company, on the one hand,
and the Placement Agent, on the other hand, and their relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.

     

    7.5           Equitable
Considerations  The
Company and the Placement Agent agree that it would not be just and equitable if
contribution pursuant to this Section 7 were determined by pro rata allocation
or by any method of allocation which does not take into account the equitable
consideration referred to in the immediately preceding paragraph.  No
person guilty of fraudulent misrepresentation (within the meaning of Section 11
(f) of the 1933 Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation.

     

    7.6           Attorneys’ Fees 
The
amount payable by a party under this Section 7 as a result of the losses,
claims, damages, liabilities or expenses referred to above will be deemed to
include any legal or other fees or expenses reasonably incurred by such party in
connection with investigating or defending any action or claim (including,
without limitation, fees and disbursements of counsel incurred by an indemnified
party in any action or proceeding between the indemnifying party and indemnified
party or between the indemnified party and any third party or
otherwise).

     

    8.      Termination 
Prior to
the completion of the Offering Documents and the commencement of the Offering,
either party may terminate this Agreement by giving a prior written notice to
the other party, provided that the terminating party agrees to reimburse the
other party in full for its reasonable out-of-pocket expenses (including,
without limitation, its legal fees and disbursements), up to a maximum of
$10,000. Following the completion of the Offering Documents and the commencement
of the Offering, each of the Company and the Placement Agent will have the right
to terminate this Agreement for any reason by giving a 30-day prior written
notice to the other party, or, immediately upon notice at any time, at or prior
to the Initial Closing:  (a) if the other party shall have failed,
refused, or been unable to perform any of its obligations hereunder, or breached
any of its representations or warranties hereunder; or (b) if, in the Placement
Agent’s or the Company’s reasonable opinion, there has occurred an event
materially affecting the value of the Securities.  If the Placement
Agent elects not to proceed with the Offering as a result of the condition
enumerated in clause (a) above, or the Company elects not to proceed with the
Offering for any reason other than the Placement Agent’s failure to proceed
expeditiously with the Offering, the Company shall reimburse the Placement Agent
in full for its reasonable out-of-pocket expenses (including, without
limitation, its legal fees and disbursements), up to a maximum of $10,000. If
the Company elects not to proceed with the Offering as a result of the condition
enumerated in clause (a) above, or the Placement Agent elects not to proceed
with the Offering for any reason other than the Company’s failure to proceed
expeditiously with the Offering, the Placement Agent shall reimburse the Company
in full for its reasonable out-of-pocket expenses (including, without
limitation, its legal fees and disbursements), up to a maximum of
$10,000.

     

    
      
         

      

      
         

        
          

        

      

      
        
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    9.      Competing Claims 
The
Company acknowledges and agrees that the Placement Agent will not proceed to
perform hereunder until it receives assurances, in form and substance
satisfactory to the Placement Agent and their counsel, that as of the first date
that the Offering Documents are presented to potential purchasers of Shares,
there will be no claims or payments for services in the nature of a finder’s fee
with respect to the Offering or any other arrangements, agreements, payments,
issuances or understandings that may affect the Placement Agent’s compensation
hereunder other than any claims that may be made by the Placement Agent’s own
personnel.  The
Placement Agent shall compensate any of its personnel who may have acted in such
capacities, as it shall determine.

     

    10.      Miscellaneous.

     

    (a)           Governing
Law.  This Agreement will be deemed to have been made and
delivered in the State of New York and will be governed as to validity,
interpretation, construction, effect and in all other respects by the internal
law of the State of New York, without regard to principles of conflicts of
law.  The Company (i) agrees that any legal suit, action or proceeding
arising out of or relating to this Agreement shall be instituted exclusively in
the Supreme Court of New York, or in the United States District Court for the
Southern District of New York, (ii) waives any objection to the venue of any
such suit, action or proceeding, and the right to assert that such forum is an
inconvenient forum, and (iii) irrevocably consents to the jurisdiction of the
Supreme Court of New York, and the United States District Court for the Southern
District of New York in any such suit, action or proceeding.  The
Company further agrees to accept and acknowledge service of any and all process
which may be served in any such suit, action or proceeding in the Supreme Court
of New York or the United States District Court for the Southern District of New
York and agrees that service of process upon it mailed by certified mail to its
address shall be deemed in every respect effective service of process upon it in
any such suit, action or proceeding.

     

    (b)           Counterparts.  This
Agreement may be executed in any number of counterparts each of which shall be
deemed an original and all of which together shall constitute one and the same
instrument.

     

    
      
         

      

      
         

        
          

        

      

      
        
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    (c)           Parties.  This
Agreement will inure to the benefit of and be binding upon the parties hereto
and their respective successors and assigns.  Neither party may assign
this Agreement or its obligations hereunder without the prior written consent of
the other party.  This Agreement is intended to be, and is, for the
sole and exclusive benefit of the parties hereto and the persons described in
Section 6.1 and 6.2 hereof and their respective successors and assigns, and for
the benefit of no other person, and no other person will have any legal or
equitable right, remedy or claim under, or in respect of this
Agreement.

     

    (d)           Amendment and/or
Modification.  Neither this Agreement, nor any term or
provision hereof, may not be changed, waived, discharged, amended, modified or
terminated orally, or in any manner other than by an instrument in writing
signed by each of the parties hereto.

     

    (e)           Validity.  In
case any term of this Agreement will be held invalid, illegal or unenforceable,
in whole or in part, the validity of any of the other terms of this Agreement
will not in any way be affected thereby.

     

    (f)           Waiver of
Breach.  The failure of any party hereto to insist upon strict
performance of any of the covenants and agreements herein contained, or to
exercise any option or right herein conferred in any one or more instances, will
not be construed to be a waiver or relinquishment of any such option or right,
or of any other covenants or agreements, and the same will be and remain in full
force and effect.

     

    (g)           Further
Assurances.  Each party to this Agreement will perform any and
all acts and execute any and all documents as may be necessary and proper under
the circumstances in order to accomplish the intents and purposes of this
Agreement and to carry out its provisions.

     

    11.           Entire
Agreement.  This Agreement contains the entire agreement and
understanding of the parties with respect to the subject matter hereof and
thereof, respectively, and there are no representations, inducements, promises
or agreements, oral or otherwise, not embodied in this Agreement.  Any
and all prior discussions, negotiations, commitments and understanding relating
to the subject matter of these agreements are superseded by them.

     

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OF THIS PAGE INTENTIONALLY LEFT BLANK]

     

    [SIGNATURE
PAGES FOLLOW]

     

    
      
         

      

      
         

        
          

        

      

      
        
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    If you
find the foregoing is in accordance with our understanding, kindly sign and
return to us a counterpart hereof, whereupon this instrument along with all
counterparts will become a binding agreement between us.

     

    
      
        
          	 	Very
      truly yours,	 
	 	 	 
	 	
                  Accelerize
      New Media, Inc.

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	
                  /s/ Brian Ross

                	 
	 	 	Brian Ross	 
	 	 	Chief Executive Officer	 

        

      

       

      
        AGREED
TO:

        

        SKYEBANC,
INC.

      

       

      
        
          	 	 	 	 	 	 
	By: 	
                  /s/ Mario Marsillo
      Jr.

                	 	 	
                   

                	 
	 	
                  Mario
      Marsillo Jr.

                	 	 	
                   

                	 
	 	Vice President of Private
    Equity	 	 	
                   

                	 

        

      

    

    
      
 

    

    
      
         

      

      
         

        
          

        

      

      
        
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    EXHIBIT
A

    

    LIST
OF INVESTORS INTRODUCED TO THE COMPANY

    BY
THE PLACEMENT AGENTex10-3.htm

    Exhibit 10.3

     

    Security
Research Associates, Inc.

    
 

    November
23, 2009

    

    Brian
Ross

    CEO

    Accelerize
New Media, Inc.

    12121
Wilshire Blvd.,  Suite 322

    Los
Angeles, CA 90025

    

    Dear Mr.
Ross:

    

               We are pleased to confirm the terms
under which Security Research Associates, Inc. (“SRA”) is engaged by Accelerize
New Media, Inc. (OTCBB:
ACLZ.OB) (the “Company”)
as non-exclusive placement agent on a
“best-efforts” basis in connection with a proposed private placement of
securities to be issued by the Company in accordance with the proposed terms set
forth in the Term Sheet attached hereto as Annex
A (the
“Financing”).  Unless otherwise terminated in
accordance with the terms of this Agreement, the term of this letter agreement
(“Agreement”) shall commence on the date first written above and extend through
February 28, 2010.  In the event a placement occurs in which the
Company accepts funds from sources other than SRA, the Company agrees to
allocate a minimum of one million dollars ($1,000,000) to the said SRA Investors
to participate in the financing.

    

               During
the term of this Agreement, and upon your written request, we will provide you
with assistance in connection with the Financing, which may include performing
valuation analyses and assisting you in negotiating the financial aspects of the
transaction.  During the term of this Agreement, we will also identify
and contact potential investors and review the Term Sheet, the Subscription
Agreement and Investor Questionnaire, the Common Stock Purchase Warrant and
other documents related to the Financing, which are prepared by the
Company.

    

    In the
event the Financing is consummated, the Company agrees to pay to SRA a
transaction fee (the “Transaction Fee”) consisting of (i) eight percent (8%) of
the gross proceeds from the Financing received by the Company from investors
initially introduced to the Company by SRA (the “SRA Investors”), and (ii) five
(5) year warrants to acquire a number of shares of the Company’s Common Stock
equal to eight percent (8%) of the gross proceeds from the Financing received by
the Company from SRA Investors, divided by the effective price per share of the
Company's Common Stock (on an as-if converted basis in the event of a
convertible security) (the “SRA Warrants”).

    

    Upon
execution of this agreement, the Company will pay to SRA a non-refundable
upfront retainer of $5,000, which will be applied against any future Transaction
Fee.

     

    If the
Company, in lieu of or in addition to a Financing, enters into a transaction,
during the term of this Agreement or within twelve (12) months of the
termination of this Agreement, pursuant to which the Company sells or licenses
to SRA Investors any of the Company’s divisions, business segments or material
assets, (“Asset Sale”) the Company will, pay to SRA an Asset Sale Fee equal to
three percent (3.0%) of the value attributable to the deal as reasonably
determined using traditional methods of valuation (the “Acquisition Price”). The
Asset Sale Fee shall be paid upon consummation of the Asset Sale.

     

    
       

      
        	

                

                  Security
      Research Associates, Inc.

                

                

                  80
      East Sir Francis Drake Blvd., Suite 3F, Larkspur, CA  94939 /
      Phone: 415-925-0346 / Fax: 415-925-0264

                

              
	 	 	 
	SRA-Accelerize
      Engagement Letter-Redline.doc	CONFIDENTIAL	Page 1 of
      8

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Security
Research Associates, Inc.

       

       

      If the
Company, due to a change of control (merger or buy out of more than fifty
percent (50%) of the total issued and outstanding shares of the Company on an
as-converted basis), elects not to consummate any transaction with SRA Investors
during the term of this agreement, the Company shall pay a total amount of
twenty thousand dollars ($20,000) as break up fee to SRA upon consummation of
the change of control transaction.

    

     

    The SRA
Warrants issued by the Company pursuant to this Agreement will have an exercise
price which will be the same as the price of such warrants issued to the SRA
Investors in the Financing or, if the SRA Investors receive a convertible
security, the lowest common stock conversion price of such
security.  If SRA Investors do not receive warrants or a convertible
security, the exercise price of the SRA Warrants shall be the fair market value
of one share of the Company’s common stock on the day the transaction causing
the SRA Warrants to be issued is consummated. SRA Warrants issued pursuant to
this Agreement shall have piggyback registration rights, will include customary
adjustments in the event of stock dividends and/or stock splits,
reclassifications, reorganizations and/or business combinations involving the
Company, will have a “cashless exercise” provision and, in the event SRA
Investors receive warrants, will contain such additional rights as are contained
in the warrants issued to the SRA Investors.

     

    The
Company agrees to provide all information and documents reasonably required to
permit the SRA Investors to make an informed investment decision with respect to
an investment in the Company. Such information and documents shall be provided
at the cost of the Company.

     

    The
Company also agrees to reimburse SRA periodically, upon request, or upon
termination of our services pursuant to this Agreement, for our expenses
incurred in connection with our financial advisory services and the Financing,
including fees and expenses of legal counsel, travel expenses and printing. All
such non-accountable fees and expenses shall not exceed a combined aggregate
amount of ten thousand dollars ($10,000).  SRA must obtain written
approval from Company for any individual non-accountable fees or expenses
exceeding $2000 in one or a series of transactions or expenses.

     

    Please
note that any written or oral opinion or advice provided by SRA in connection
with our engagement is exclusively for the information of the Board of Directors
and senior management of the Company, and may not be disclosed to any third
party (other than the Company’s legal, accounting or other advisors, who shall
have been instructed with respect to the confidentiality of such advice) or
circulated or referred to publicly without our prior written consent, except as
to the extent required by law, judicial or administrative process or regulatory
demand.

    

    Each of
the Company or SRA shall be entitled to terminate this Agreement for any reason
upon a thirty (30) days prior written notice to the other party at the address
set forth for such party on the signature page hereof.  In the event
of the termination of this Agreement, SRA shall be entitled to be paid its
expenses subject to the terms and up to the maximum amount described
above.  The confidentiality provisions of this Agreement shall be
unaffected by the termination of this Agreement.  The Company shall
not be obligated to reimburse any expenses incurred by SRA or its advisors with
respect to activities undertaken after notification of termination is
given.  In the event this Agreement is terminated and prior to the
expiration of twelve (12) months from the date of such termination, an agreement
is entered into by the Company with respect to any transaction contemplated by
this Agreement with investors initially introduced to the Company by SRA (the
“Introduced Parties”), SRA will be entitled to the Transaction Fee set forth
above.  Upon the termination or expiration of this Agreement, SRA
shall provide the Company with a list of Introduced Parties with respect to the
Financing.

     

     

    
      	

              

                Security
      Research Associates, Inc.

              

              

                80
      East Sir Francis Drake Blvd., Suite 3F, Larkspur, CA  94939 /
      Phone: 415-925-0346 / Fax: 415-925-0264

              

            
	 	 	 
	SRA-Accelerize
      Engagement Letter-Redline.doc	CONFIDENTIAL	Page 2 of
      8

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Security
Research Associates, Inc.

     

     

               SRA
is an independent contractor and placement agent of the Company. SRA will not
have any right or authority to bind the Company or otherwise create any
obligations of any kind on behalf of the Company and will make no representation
to any third party to the contrary.

     

    The
Company and SRA each agree to keep confidential and not disclose to any third
party any confidential information of the other party, and to use such
confidential information only in connection with the engagement hereunder;
provided, however, the foregoing will not prohibit disclosures (i) to the
parties’ employees, agents, representatives, and others to the extent necessary
to enable the Company or SRA to perform its responsibilities under this
Agreement, (ii) to the extent required by law, judicial or administrative
process or regulatory demand, or (iii) with respect to matters which become
public other than by the actions of the disclosing party hereunder. The
confidentiality provisions of this Agreement shall survive the termination of
this Agreement for a period of five (5) years.

    

               Each
of the Company and SRA hereby agrees, warrants and represents to conduct the
Financing in a manner intended to qualify for the exemption from the
registration requirements of the Securities Act of 1933, as amended (the “Act”),
provided by Section 4(2) of the Act.  Each of the Company and SRA
hereby agrees, warrants and represents to limit offers to sell, and
solicitations of offers to buy, securities of the Company in connection with the
Financing to persons reasonably believed by it to be “qualified institutional
buyers” as such term is defined in Rule 144A under the Act and “accredited
investors” as such term is defined in Rule 501(a) of Regulation D promulgated
under the Act.  SRA represents and warrants that it is a registered
broker/dealer and understands that the availability of a securities law
exemption for the Financing may depend on such status.  Accordingly,
SRA hereby indemnifies and holds harmless the Company and its affiliates,
controlling persons, directors, officers, representatives and agents against any
and all losses, claims, damages or liabilities (including, without limitation,
reasonable attorneys fees and expenses) to which the Company and such persons
may become subject arising out of or in connection with SRA’s failure to be so
registered or any breach of warranties or representations made by SRA in this
Agreement.

    

               Each
of the Company and SRA hereby agrees warrants and represents that any offers
made in connection with the Financing will be made only to prospective
purchasers on an individual basis and that no form of general solicitation or
general advertising (within the meaning of Rule 502 under the Act) will be used
in connection with the Financing.  Each of the Company and SRA hereby
agrees, warrants and represents to conduct the Financing in a manner intended to
comply with the registration or qualification requirements, or available
exemptions there from, under applicable state “blue sky” laws and applicable
securities laws of other jurisdictions.

    

               The
Company may decline to consummate the Financing with any prospective purchaser
introduced by SRA or otherwise, in the Company’s sole and absolute
discretion.

    

      The
Company agrees to:

      

      
        	
                 
      

              	
                (a)

              	
                Indemnify
      and hold SRA harmless against any and all losses, claims, damages or
      liabilities to which SRA may become subject arising out of or in
      connection with any breach of any warranties or representations made by
      the Company pursuant to this Agreement, unless such losses, claims,
      damages or liabilities are finally judicially determined to have resulted
      directly from the gross negligence or willful misconduct of SRA;
      and

              

      

       

       

      
        
          	

                  

                    Security
      Research Associates, Inc.

                  

                  

                    80
      East Sir Francis Drake Blvd., Suite 3F, Larkspur, CA  94939 /
      Phone: 415-925-0346 / Fax: 415-925-0264

                  

                
	 	 	 
	SRA-Accelerize
      Engagement Letter-Redline.doc	CONFIDENTIAL	Page 3 of
      8

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        Security
Research Associates, Inc.

         

      

      
        	
                 
      

              	
                (b)

              	
                Reimburse
      SRA periodically for reasonable legal fees or other reasonable expenses
      incurred by SRA in connection with investigating, preparing to defend or
      defending, or providing evidence in or preparing to serve or serving as a
      witness with respect to, any lawsuits, investigations, claims or other
      proceedings arising in any manner out of or in connection with any breach
      of any warranties or representations made by the Company pursuant to this
      Agreement (including, without limitation, in connection with the
      enforcement of this Agreement and the indemnification obligations set
      forth herein); it being understood however that the Company shall have no
      obligation to reimburse SRA for any such expenses and SRA shall
      immediately repay any such reimbursements by the Company in the event any
      losses, claims, damages or liabilities are finally judicially determined
      to have resulted directly from the gross negligence and willful misconduct
      of SRA.

              

      

       

      The
Company agrees that the indemnification and reimbursement commitments set forth
in this Agreement shall apply whether or not SRA is a formal party to any
lawsuits, arbitrations, claims or other proceedings and that such commitments
shall extend upon the terms set forth in this paragraph to any controlling
person, affiliate, director, officer, employee or agent of SRA (each, with SRA,
an “Indemnified Person”).  In the event an Indemnified Person is made
a formal party to a lawsuit, claim or other proceeding arising out of or in
connection with any of the services rendered by SRA pursuant to this Agreement,
and the Company takes over the defense of such action for an Indemnified Person,
the Company further agrees that it will not, without such Indemnified Person’s
prior written consent, which consent shall not be unreasonably withheld, enter
into any settlement of a lawsuit, claim or other proceeding arising out of or in
connection with the Financing unless such settlement includes an express and
unconditional release from the party bringing the lawsuit, claim or other
proceeding of all Indemnified Persons.  With respect to the
immediately preceding sentence, in the event an Indemnified Person reasonably
withholds their consent to a settlement, the Indemnified Person shall be
responsible for all subsequent costs and expenses arising out of the defense of
the Indemnified Person.

    

     

    The
Company further agrees that the Indemnified Persons are entitled to retain
separate counsel of their selection in connection with any of the matters in
respect of which indemnification, reimbursement or contribution may be sought
under this Agreement, provided that, in connection with any one action or
proceeding, the Company shall not be responsible for the fees and expenses of
more than one separate law firm or individual attorney in any one jurisdiction
for all Indemnified Persons.

     

    This
Agreement and any claim or dispute of any kind or nature whatsoever arising out
of or in any way relating to this Agreement, directly or indirectly, shall be
governed by and construed in accordance with the laws of California applicable
to contracts executed and to be wholly performed therein without giving effect
to its conflicts of laws, principles or rules.  The Company and SRA
agree that any claim or dispute arising out of this Agreement shall be resolved
in an arbitration conducted in San Francisco, California pursuant to the rules
of the Financial Industry Regulatory Authority.

     

    This
Agreement, together with Annex A hereto, contains the entire agreement
between SRA and the Company with respect to the subject matter of this
Agreement, and supersedes any prior understanding or agreement.  The
Company and SRA each acknowledge that no representations, inducements, promises
or agreements (oral or written), have been made by the Company or SRA, or anyone
acting on behalf of the Company or SRA, which are not contained in this
Agreement, and any prior agreements, promises, negotiations, or representations
with respect to the subject matter of this Agreement (whether written or oral),
not expressly set forth in this Agreement, are of no force or
effect.  This Agreement may be amended or modified only by writing
signed by the parties hereto.

     

    
       

      
        	

                

                  Security
      Research Associates, Inc.

                

                

                  80
      East Sir Francis Drake Blvd., Suite 3F, Larkspur, CA  94939 /
      Phone: 415-925-0346 / Fax: 415-925-0264

                

              
	 	 	 
	SRA-Accelerize
      Engagement Letter-Redline.doc	CONFIDENTIAL	Page 4 of
      8

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Security
Research Associates, Inc.

               Please
confirm that the foregoing is in accordance with your understanding by signing
and returning to us the enclosed copy of this Agreement, which shall become a
binding agreement upon our receipt. We are delighted to accept this engagement
and look forward to working with you on this assignment.

    

    Very
truly yours,

    

    

    Brian G.
Swift, Chairman and CEO

    

    Agreement
Confirmed by:

     

    
      
        	
                Security Research Associates,
      Inc.

                80
      E. Sir Francis Drake Boulevard, Suite 3F

                Larkspur,
      CA 94939 

              	 	 	
                Accelerize New Media,
      Inc.

                12121
      Wilshire Blvd.,  Suite 322

                Los
      Angeles, CA 90025

              	 
	 	 	 	 	 
	
                /s/
      Brian G. Swift

              	 	 	
                /s/
      Brian Ross

              	 
	
                Brian
      G. Swift

                Chairman
      and
      CEO                                                                                

                Date:
      November 23, 2009 

              	 	 	
                Brian
      Ross

                Chief
      Executive Officer

                Date:
      November 23, 2009

              	 

      

    

     

                                                                   

     

    
      	

              

                Security
      Research Associates, Inc.

              

              

                80
      East Sir Francis Drake Blvd., Suite 3F, Larkspur, CA  94939 /
      Phone: 415-925-0346 / Fax: 415-925-0264

              

            
	 	 	 
	SRA-Accelerize
      Engagement Letter-Redline.doc	CONFIDENTIAL	Page 5 of
  8

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Security
Research Associates, Inc.

     

    Annex A

    CONFIDENTIAL

    Term Sheet for Private Placement of
Accelerize New Media,
Inc. Securities

    

    

    
    

    CONFIDENTIAL
TERM SHEET

    

    Accelerize
New Media, Inc.

    

    (OTCBB:
ACLZ.OB)

    

    November
20, 2009

    

    [$2,000,000]
of Common Stock and Warrants

    

    
      	 	 
	Issuer:	Accelerize
      New Media, Inc. (the “Company”), a Delaware
      Corporation (OTCBB: ACLZ.OB). The Company’s Common Stock is currently
      quoted on the OTC Bulletin Board under the symbol “ACLZ.OB”. The closing
      price of the Company’s Common Stock (the “Common Stock”) on
      November 20, 2009 was [$0.73] per share.
	 	 
	Capitalization:	The
      Company’s authorized capital stock consists of 100,000,000 shares of
      common stock, par value $0.001 per share and 2,000,000 shares of blank
      check preferred stock, par value $0.001 per share, of which 54,000 shares
      have been designated Series A Convertible Preferred Stock (the “Series A Preferred”) and
      144,000 shares have been designated Series B Convertible Preferred Stock
      (the “Series B
      Preferred”). As of November 11, 2009 the Company had an aggregate
      of 28,737,607 shares of Common Stock issued and outstanding, 54,000 shares
      of Series A Preferred issued and outstanding, and 118,875 shares of Series
      B Preferred issued 

              and
      outstanding.

            
	 	 
	Purchasers:	Financial
      institutions and other “accredited investors”.
	 	 
	Offering:	[twelve
      thousand (12,000)] units (the “Units”), each consisting
      of [two hundred and fifty (250)] shares of Common Stock, par value $0.001
      per share (the “Common
      Stock”) and a 3-year warrant (the “Warrant”) to purchase up
      to [two hundred and fifty (250)] shares of Common Stock with an exercise
      price of [$0.65] per share. The Company will have the right, in its sole
      discretion, to close the offering at a lower or higher number of Units in
      the event that the offering is undersubscribed or oversubscribed,
      respectively.
	 	 
	Price
      Per Unit:	[$100.00]
      per Unit.
	 	 
	Minimum
      Subscription:	[one
      thousand (1000) Units.]
	 	 
	Registration
      Rights:	None
	 	 
	Warrant
      Exercise Price:	[$0.65]
      per share.
	 	 

       

      
         

        
          	

                  

                    Security
      Research Associates, Inc.

                  

                  

                    80
      East Sir Francis Drake Blvd., Suite 3F, Larkspur, CA  94939 /
      Phone: 415-925-0346 / Fax: 415-925-0264

                  

                
	 	 	 
	SRA-Accelerize
      Engagement Letter-Redline.doc	CONFIDENTIAL	Page 6 of
      8

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        Security
Research Associates, Inc.

      

       

       

      	Additional
      Warrant Terms:	For
      every [two hundred and fifty (250)] shares of Common Stock issued to a
      Purchaser in this offering, the Purchaser will receive a Warrant to
      purchase up to an additional [two hundred and fifty (250)] shares of
      Common Stock exercisable at a purchase price of $0.65 per share, for a
      period of three (3) years from the Closing Date. The Warrants will have
      standard anti-dilution provisions.
	 	 
	 	The
      Company reserves the right to call the Warrants, at a redemption price of
      $.001 per Warrant, commencing on the first trading day after the Common
      Stock of the Company has traded for ten (10) consecutive trading days at
      an average closing price at or exceeding [$1.25] per share. Warrant
      holders will have ten (10) days from the date of such notice to exercise
      the Warrants, and in the event the Warrants are not exercised, the Company
      may cancel them, and holders will receive payment of $0.001 per Warrant.
      In the case holders failed to exercise the Warrants within the said 10-day
      period, the Company will also have the right to assign the right to
      exercise the Warrant to another person whether or not such person is an
      existing shareholder of the Company.  Holders will not receive
      any proceeds in the event such other person exercises the
      Warrant.
	 	 
	Proceeds:	Assuming
      [twelve thousand (12,000)] Units are sold, the net proceeds to be received
      by the Company from the sale of the Units will be [one million two hundred
      thousand dollars ($1,200,000)] less offering expenses and finder fees. In
      addition, the Company may receive an additional amount of [one million six
      hundred and twenty-five thousand dollars ($1,625,000)] from the exercise
      of the Warrants.
	 	 
	Signing
      and Closing Date:	Signing
      of definitive purchase agreements by the Company and the respective
      Purchasers, and closings with respect thereto is expected to take place
      between December, 2009 and February, 2010.  The final Closing
      will take place no later than March 15, 2010 or such other date as the
      Company may determine (the “Closing
  Date”).
	 	 
	Payment:	The
      price of [$100.00] per Unit will be payable in full by each Purchaser upon
      signing the respective Purchase Agreement.
	 	 
	Use
      of Proceeds:	Net
      proceeds will be used for research and development, marketing, working
      capital and general corporate purposes.
	 	 
	
              Type
      of Offering:

            	
              The
      shares of Common Stock offered herein, and the shares of Common Stock
      underlying the Warrants (collectively, the “Securities”) are being
      offered for sale directly by the Company to the Purchasers.  The
      Securities are being offered for sale on a private placement basis to the
      Purchasers as “accredited investors”, exempt from the prospectus and
      registration requirements of the United States. The
      Offering shall comply with all applicable securities laws to the
      satisfaction of the Company, and the Purchasers shall execute and deliver
      such subscription documents as may be necessary or customary in Regulation
      D private placements.

            

      
        
           

           

          
            	

                    

                      Security
      Research Associates, Inc.

                    

                    

                      80
      East Sir Francis Drake Blvd., Suite 3F, Larkspur, CA  94939 /
      Phone: 415-925-0346 / Fax: 415-925-0264

                    

                  
	 	 	 
	SRA-Accelerize
      Engagement Letter-Redline.doc	CONFIDENTIAL	Page 7 of
      8

          

           

          
            
               

            

            
               

              
                

              

            

            
               

            

          

          Security
Research Associates, Inc.

        

      

       

       

      	 	The
      Securities will be issued by the Company at Closing pursuant to a
      Securities Purchase Agreement (the “Purchase Agreement”)
      between the Company and each of the Purchasers.  The Purchase
      Agreement will contain certain covenants, representations, warranties and
      indemnities of the Company for the benefit of the Purchasers of a nature
      and scope customary in private placements of this type, and certain covenants,
      representations, warranties and indemnities of the Purchasers for the
      benefit of the Company of a nature and scope customary in private
      placements of this type.
	 	 
	Finder
      Fees:	The
      Company engaged Securities Research Associates, Inc ("SRA") as
      non-exclusive placement agent, and will pay SRA fees consisting of (i)
      eight percent (8%) of the gross proceeds received from investors
      introduced initially by SRA (the “SRA Investors”), and (ii) issue five (5)
      year warrants to acquire a number of shares of the Company’s Common Stock
      equal to eight percent (8%) of the aggregate gross proceeds received from
      SRA Investors divided by the effective price per share of the Company's
      Common Stock (on an as-if converted basis in the event of a convertible
      security) at closing (the “SRA Warrants”). The Company will pay to SRA a
      non-refundable upfront retainer of $5,000, which will be applied against
      any future finder fees.
	 	 
	Risk
      Factors:	The
      Securities offered hereby are highly speculative and involve a high degree
      of risk and, therefore, should not be purchased by anyone who cannot
      afford the loss of their entire investment.  Prospective
      Purchasers should carefully review and consider the risk factors set forth
      in the Company’s quarterly and annual reports on Form 10-Q and Form 10-K,
      as filed with the Securities and Exchange Commission, as well as other
      information contained therein, before subscribing for any of the
      Securities.  In addition, early Purchasers cannot be assured
      that all or even most of the Units will be sold.
	 	 
	

              Financial
      and

              Other
      Public

              Information:

            	

              Financial
      and other public information as filed with the Securities and Exchange
      Commission will be provided by us upon demand and can also be found under
      the Company’s name at: www.sec.gov.

            

    

    
       

      75001\0\3

      
 

    

    
      
        
          	

                  

                    Security
      Research Associates, Inc.

                  

                  

                    80
      East Sir Francis Drake Blvd., Suite 3F, Larkspur, CA  94939 /
      Phone: 415-925-0346 / Fax: 415-925-0264

                  

                
	 	 	 
	SRA-Accelerize
      Engagement Letter-Redline.doc	CONFIDENTIAL	Page 8 of
      8

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