Document:

amzz_ex105.htm

EXHIBIT 10.5

 

 

  

  

  

 

BASIC AGREEMENT TERMS

 

	
1. 

	
Program Description.  The purpose of the Agreement is to support the activities described in the Recipient’s Agreement with the Sponsor, hereby incorporated by reference and summarized in Attachment A: Program Description (hereafter referred to as “Project”). Recipient agrees to use all Project Support only for such activities.

 

	
2.

	
Project Support.  Project Support may include any one or more of the following types of assistance, without limitation, as set forth in the Project or as otherwise subsequently agreed by CRDF or the Sponsor: [a] individual support payments paid directly to Project Personnel, [b] equipment, materials, supplies and/or services purchased by CRDF on behalf of the Recipient, [c] travel-related direct payments to individual Project Personnel or to vendors on their behalf; and [d] direct transfers of funds to institutional accounts for project-related expenses.

 

	
3. 

	
Agreement Period.  Unless otherwise specified in the Agreement Cover Sheet, the Agreement Period commences upon date of execution of the Agreement by all parties and terminates on the expiration of the duration specified in the Agreement Cover Sheet.

 

	
4. 

	
Budget.  Recipient agrees to comply strictly with the Budget set forth in Attachment B (hereafterreferred to as “Budget”). The Budget includes line items for all types of Project support. Costs of Project support not expressly specified in the Budget, or in excess of line items therein, are not eligible costs and may not be charged to the Project unless subsequently approved in writing by CRDF.

 

	
5. 

	
Eligible Costs.  Recipient may use Project Support only for Recipient’s verifiable, reasonable, allocable and allowable direct costs necessary for performance of the activities specified in the Project and consistent with the direction of the Sponsor. All such costs must comply with the terms and conditions of the Agreement and must be incurred and expended in the Agreement Period. In incurring costs, as in other matters relating to implementation, Recipient is expected to exercise prudent management and tomake sound administrative judgments under the circumstances prevailing at the time a decision is made. Documentation supporting expenditures and other actions in implementing the Agreement must be made in advance of the action, be consistent with the Recipient’s established policies and procedures, comply with the terms of this Agreement and current CRDF policies and procedures, and reflect appropriate approvals within the organization.

 

	
6.

	
Project Funds.  Funds for Project Support have been provided by the Sponsor identified in the Agreement Cover Sheet. The amount and distribution of these funds, including schedule of disbursements and allowability of costs, are determined solely by the Sponsor. CRDF’s aggregate liability arising out of or relating to the Agreement, regardless of the type(s) and mix of Project support involved, may not under any circumstances exceed the Project Support Amount. Recipient is solely responsible for any overruns.

 

	
7.

	
Reports. Recipient may be required to submit technical and financial reports in a format to be provided by CRDF or the Sponsor. Reports shall be submitted electronically in accordance with the schedule specified herein to the attention of the Agreement Officer.

 

Apart from the aforementioned reports, the Recipient shall provide such reports as may be required by the Sponsor to detail project progress and results.

 

 

	FOCUS Project Agreement	 	September 27, 2013	 	Page 2 of 16

  

  

  

 

	
8.

	
Tax Responsibility. Neither CRDF, not the Sponsor is not responsible for any taxes associated with disbursements and other assistance in the scope of this Agreement received by the Recipient. It is recommended that the Recipient contact their tax advisor for advice on any tax implication associated with such receipt of assistance and funds.

 

	
9.

	
Project Personnel. The following Project Director(s) and/or other staff (“Project Personnel”) are deemed essential to successful implementation of the activities specified in the Project:

 

	
Participant's Name

	 	
Institute Name

	 	
Job Title

	 	 	 	 	 
	
Glazunov, Gennadiy Petrovych

	 	
NSC KIPT

	 	
senior scientist

	
Maznichenko, Sergiy Mykhaylovych

	 	
NSC KIPT

	 	
deputy head of department

	
Konotops'kyi, Oleksiy Leonidovych

	 	
NSC KIPT

	 	
sci.res.

	
Bondarenko, Mykhaylo Mykolayovych

	 	
NSC KIPT

	 	
sci.res.

	
Svinarenko, Olexandr Petrovych

	 	
NSC KIPT

	 	
sci.res.

	
Lutchenko, Evgen Valentynovych

	 	
NSC KIPT

	 	
laboratory assistant

	
Vynogradov, Dmytro Volodymirovych

	 	
NSC KIPT

	 	
sci.res.

	
Pylypenko, Mykola Mykolayovych

	 	
NSC KIPT

	 	
head of laboratory

 

	
 

	
These individuals may not be replaced without prior written approval of CRDF and the Sponsor.

 

The Project Director is responsible for overseeing the technical work to be performed under the Project; for providing technical leadership; for preparing and submitting payment requests and required reportsin accordance with Sponsor and CRDF guidelines as well as the policies of his/her respective institution; for ensuring that activities are coordinated with his institution, Project Personnel, and the Sponsor; and for managing the Project in compliance with terms of this Agreement.

 

	
10.

	
Notification of Certain Events.  Recipient shall notify the Sponsor and CRDF, in writing, of the occurrence of any of the following events:

 

A.  Any significant change in the methodology or procedures being used in the Project from those discussed in the proposal;

B. Any significant or major findings, breakthroughs, or events of unusual interest;

C.  Any problems, delays or adverse conditions that will materially affect the Project, its objectives or time schedules and actions being taken to address them,

D.  Any changes in key personnel or their status on the Project; and

E.  Any change in a Project Director’s institution, mailing address, telephone or fax numbers, or e- mail address;

F.  Any change in or absence of a Project rector or project key personnel for a period longer than thirty (30) days;

G.  Any change in Project Personnel’s level of effort devoted to the Project; H.  Any significant change in the Project objectives or scope;

 

All changes in Project Personnel, budget reallocation requests (per subparagraph (I) above), and/or changes in Project objectives or scope are subject to Sponsor and CRDF approval.

 

	FOCUS Project Agreement	 	September 27, 2013	 	Page 3 of 16

  

  

  

 

	
11.

	
Notices.  Unless otherwise approved by CRDF on a case-by-case basis, all notices in connection with the Agreement shall be made in writing to the Agreement Officer specified on the Cover Sheet.

 

	
12.

	
Authority of CRDF Agreement Officer.  The assigned Agreement Officer maintains the sole authority to interpret, modify or amend any provision of this Agreement. All financial, administrative and contractual issues should be addressed to the Agreement Officer. CRDF reserves the right to assign a new Agreement Officer at any time over the course of the award through written notification to Recipient.  All technical oversight of the Project is the sole responsibility of the assigned Sponsor Technical Representative, identified in the Agreement Cover Sheet.

 

	FOCUS Project Agreement	 	September 27, 2013	 	Page 4 of 16

  

  

  

 

ATTACHMENT A:

PROJECT DESCRIPTION

 

Super pure hydrogen is required in chemical, electronic and others industries, as well as for carrying out different scientific investigations in many plasma devices, in particular, for solving problems of controlled thermonuclear synthesis. Super pure hydrogen (purity higher than 99. 999 % vol.) producing is the actual task of the technological process of hydrogen production. Most of current methods of generating ultra pure hydrogen consist of two main steps of the technological process: producing low-purity technical hydrogen and its purification. The essential power inputs are required for both steps. Then produced pure hydrogen can be either used by consumers or accumulated in storage devices, or compressed in balloons.

 

We  had  suggested  the  method  of  hydrogen  production  (purity  is  higher  than  99.999%)  which requires only one step of the process of generating super pure hydrogen (Patent of Ukraine # 86884, Bull. #10, 2009). It is generated by means of placing the diffusion-catalytic membrane into the flame of combustion of hydrocarbons. The membrane serves to separate the volume of hydrocarbon combustion from that of pure hydrogen accumulation. Implementation of this technology allows producing super pure hydrogen simultaneously with combusting hydrocarbon materials, e.g. while water heating. As a result ofusing laboratory model (hydrogen capacity of about 1 Ncm3/s), the possibility of implementing the technology mentioned above while combusting ethyl alcohol, gas (butane) and benzene was revealed.

 

The main distinction of the suggested method is that it consists of only one step of the technological process producing super pure hydrogen. The method generates super pure hydrogen simultaneously with combustion of inflammables (hydrocarbon materials), e.g., while water heating. As a result, the power inputs for maintain necessary parameters for hydrogen producing process are saved and the need for a purification procedure is eliminated. The suggested method could be applied in hydrogen energy, chemical, electronic and fuel cells industries as well as in scientific research, in particular, for solving problems of controlled thermonuclear fusion, in many plasma devices. Evidently, it is profitable to introduce this method into the plants where large volumes of hydrocarbon materials (fuels) are used, e.g. in boiler-rooms or other devices. Consumption of fuel for hydrogen production will be negligible compared to that for fulfillment of main functions. To implement all the above it is necessary to investigate in detail the processes running both on thediffusion-catalytic membrane surfaces and within the membrane, to study life time of the membrane under conditions of its long-term exposure to the flame, to create work model of super pure hydrogen generator with hydrogen storage, e.g., with the use of intermetallides. We intend to solve all these problems within the framework of this project.

 

As a result of the project implementation the process of hydrogen penetration through diffusion-catalytic membranes on the basis of Pd and Ni from the flame zone of hydrocarbons combustion (such characteristics as hydrogen permeation rate and energy activation values will be obtained) will be investigated. The life time of the diffusion membrane material under conditions of its long-term exposure to the flame will be investigated as well. The work model of super pure hydrogen generator with its accumulation will be created; its work will be researched. On the basis of the obtained results the analysis of the possibility to develop industry technology and devices to produce and accumulate large amount of super pure hydrogen from the flame of combustion of hydrocarbons will be made. The reports, patents and scientific papers will be presented.

 

	FOCUS Project Agreement	 	September 27, 2013	 	Page 5 of 16

  

  

  

 

ATTACHMENT B:

BUDGET

 

UKP1-30036-KK-13

FOCUS Project Budget and Schedule of Payments

 

	 	 	
Quarter 1 - October

	 	
Quarter 2 - January

	 	Quarter 3 - April	 	Quarter 4 - July	 	
Quarter 5 - October

	 	
Quarter 6 - January

	 	Quarter 7 - April	 	Quarter 8 - July	 	 	 
	
Individual Financial Support (IFS)

	 	
2013

	 	
2014

	 	
2014

	 	
2014

	 	
2014

	 	
2015

	 	2015	 	2015	 	TOTAL	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Glazunov Gennadiy Petrovych

	 	$	3 780,00	 	$	3780,00	 	$	3 780,00	 	$	3 780,00	 	$	3 780,00	 	$	3 780,00	 	$	3 780,00	 	$	3 780,00	 	$	30 240,00	 
	
Maznichenko Sergiy Mykhaylovych

	 	$	1 330,00	 	$	1330,00	 	$	1 330,00	 	$	1 330,00	 	$	1 330,00	 	$	1 330,00	 	$	1 330,00	 	$	1 330,00	 	$	10 640,00	 
	
Konotops'kyi Oleksiy Leonidovych

	 	$	1 330,00	 	$	1330,00	 	$	1 330,00	 	$	1 330,00	 	$	1 330,00	 	$	1 330,00	 	$	1 330,00	 	$	1 330,00	 	$	10 640,00	 
	
Bondarenko Mykhaylo Mykolayovych

	 	$	1 050,00	 	$	1050,00	 	$	1 050,00	 	$	1 050,00	 	$	1 050,00	 	$	1 050,00	 	$	1 050,00	 	$	1 050,00	 	$	8 400,00	 
	
Svinarenko Olexandr Petrovich

	 	$	1 330,00	 	$	1330,00	 	$	1 330,00	 	$	1 330,00	 	$	1 330,00	 	$	1 330,00	 	$	1 330,00	 	$	1 330,00	 	$	10 640,00	 
	
Lutchenko Evgen Valentynovych

	 	$	875,00	 	$	875,00	 	$	875,00	 	$	875,00	 	$	875,00	 	$	875,00	 	$	875,00	 	$	875,00	 	$	7 000,00	 
	
Vynogradov Dmytro Volodymirovich

	 	$	1 050,00	 	$	1050,00	 	$	1 050,00	 	$	1 050,00	 	$	1 050,00	 	$	1 050,00	 	$	1 050,00	 	$	1 050,00	 	$	8 400,00	 
	
Pylypenko Mykola Mykolayovych

	 	$	1 000,00	 	$	1000,00	 	$	1 000,00	 	$	1 000,00	 	$	1 000,00	 	$	1 000,00	 	$	1 000,00	 	$	1 000,00	 	$	8 000,00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	-	 
	
SUBTOTAL - IFS

	 	$	11 745,00	 	$	11 745,00	 	$	11 745,00	 	$	11 745,00	 	$	11 745,00	 	$	11 745,00	 	$	11 745,00	 	$	11 745,00	 	$	93 960,00	 

 

	 	 	
Quarter 1 - October

	 	
Quarter 2 - January

	 	Quarter 3 - April	 	
Quarter 4 - July

	 	
Quarter 5 - October

	 	
Quarter 6 - January

	 	
Quarter 7 - April

	 	
Quarter 8 - July

	 	
 

	 
	
Equipment, Supplies and Services

	 	
2013

	 	
2014

	 	
2014

	 	
2014

	 	
2014

	 	
2015

	 	
2015

	 	
2015

	 	
TOTAL

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Equipment

	 	$	600,00	 	$	10 000,00	 	 	 	$	18 964,00	 	$	10 000,00	 	 	 	 	 	 	 	$	39 564,00	 
	 	 	 	 	 	$	650,00	 	$	700,00	 	$	600,00	 	$	450,00	 	 	 	 	 	 	 	$	2 400,00	 
	
Supplies

	 	$	1 000,00	 	$	500,00	 	$	1 500,00	 	 	 	 	$	500,00	 	$	1 500,00	 	$	500,00	 	 	 	$	5 500,00	 
	 	 	 	 	 	$	5 000,00	 	$	500,00	 	 	 	 	$	5 000,00	 	$	2 000,00	 	 	 	 	 	 	$	12 500,00	 
	 	 	 	 	 	$	2 000,00	 	 	 	 	 	 	 	$	1 000,00	 	 	 	 	 	 	 	 	 	$	3 000,00	 
	
Other

	 	$	3 000,00	 	$	1 000,00	 	$	1760,00	 	$	1 000,00	 	$	3 000,00	 	$	1 000,00	 	$	3 000,00	 	$	1 000,00	 	$	14 760,00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	-	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
SUBTOTAL -ESS

	 	$	4 600,00	 	$	19 150,00	 	$	4460,00	 	$	20 564,00	 	$	19 950,00	 	$	4 500,00	 	$	3 500,00	 	$	1 000,00	 	$	77 724,00	 

 

	 	 	
Quarter 1 - October

	 	
Quarter 2 - January

	 	Quarter 3 - April	 	
Quarter 4 - July

	 	
Quarter 5 - October

	 	
Quarter 6 - January

	 	
Quarter 7 - April

	 	
Quarter 8 - July

	 	
 

	 
	
Travel [TR]

	 	
2013

	 	
2014

	 	
2014

	 	
2014

	 	2014	 	
2015

	 	
2015

	 	
2015

	 	
TOTAL

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
International Transportation

	 	 	 	$	3 000,00	 	 	 	$	-	 	$	-	 	 	 	$	3 500,00	 	$	-	 	$	6 500,00	 
	
Domestic Transportation

	 	$	1 000,00	 	 	 	 	$	1000,00	 	 	 	 	 	 	 	$	1 000,00	 	 	 	 	 	 	 	$	3 000,00	 
	
Other Travel Expenses

	 	 	 	 	$	2 000,00	 	 	 	 	 	 	 	 	 	 	$	2 000,00	 	 	 	 	 	 	 	$	4 000,00	 
	
GENERAL TRAVEL EXPENSES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	-	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	-	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
SUBTOTAL - TR

	 	$	1 000,00	 	$	5 000,00	 	$	1000,00	 	$	-	 	$	-	 	$	3 000,00	 	$	3 500,00	 	$	-	 	$	13 500,00	 

 

	 	 	
Quarter 1 - October

	 	
Quarter 2 - January

	 	
Quarter 3 - April

	 	
Quarter 4 - July

	 	
Quarter 5 - October

	 	
Quarter 6 - January

	 	
Quarter 7 - April

	 	
Quarter 8 - July

	 	 	 
	
Institutional Support [IS]

	 	
2013

	 	
2014

	 	
2014

	 	
2014

	 	
2014

	 	
2015

	 	
2015

	 	
2015

	 	
TOTAL

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
KIPT overhead

	 	$	1 852,00	 	$	1 852,00	 	$	1 852,00	 	$	1 852,00	 	$	1 852,00	 	$	1 852,00	 	$	1 852,00	 	$	1 852,00	 	$	14 816,00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	-	 
	
SUBTOTAL - IS

	 	$	1 852,00	 	$	1 852,00	 	$	1 852,00	 	$	1 852,00	 	$	1 852,00	 	$	1 852,00	 	$	1 852,00	 	$	1 852,00	 	$	14 816,00	 

 

TOTAL PROJECT EXPENSES

 

	
Individual Financial Support [IFS]

	 	$	93 960,00	 
	
Materials and Services [ESS]

	 	$	77 724,00	 
	
Travel [TR]

	 	$	13 500,00	 
	
Institutional Support [IS]

	 	$	14 816,00	 
	 	 	 	 	 
	
TOTAL 

	 	$	200 000,00	 

 

	FOCUS Project Agreement	 	September 27, 2013	 	Page 6 of 16

  

  

  

 

ATTACHMENT C:

INVOICING AND PAYMENT

 

	
1. 

	
Initiation of Project Support by Recipient.  Recipient will initiate the provision of Project Support by submitting to CRDF invoices or request forms in a format provided by CRDF. Invoices or requests must be submitted to the Agreement Officer or his/her designee.

 

	
2.  

	
Payments.  Recipient will receive payment for allowable Eligible Costs on a cost-reimbursable basis or as otherwise authorized by the Sponsor or as otherwise specified herein and in accordance with the Budget. All expenses must be documented with appropriate receipts and invoices. Payments will be made in reimbursement to Recipient, unless specifically authorized in advance.

 

	
3.  

	
Method of Payment.  CRDF reserves the right, in its sole discretion, to determine the method of payment, and to decline any request received that is inconsistent with the terms of this Agreement or in violation of CRDF procedures or Sponsor guidelines.

 

	
4. 

	
Payment by Electronic Funds Transfer.  To the extent possible CRDF attempts to make payment to individuals, organizations and vendors via electronic funds transfer. CRDF will make best efforts to minimize transfer fees applied by financial institutions involved in the funds transfer process. However, CRDF is not liable for transfer fees applied by intermediary financial institutions; such costs must be borne by Recipient.

 

	
5. 

	
Overpayments, Erroneous or Duplicate Payments.  If Recipient becomes aware of an overpayment, an erroneous payment, or a duplicate payment, Recipient shall immediately notify CRDF in writing and request instructions for handling the matter.

 

	
6.

	
Final Payment.  As required by the Standard Provision entitled “Closeout,” CRDF will require the submission of a Final Invoice for the Agreement, marked accordingly, as soon as possible after the end of the Agreement Period. Recipient acknowledges the importance of timely submission and the fact that undue delay in furnishing the required Final Invoice may prejudice payment in whole or in part. CRDF may pay the Final Invoice amount provided that the Recipient has [a] successfully completed performance of all of its obligations under the Agreement and [b] furnished an acceptable release of claims against and liabilities and obligations of CRDF, its officers, agents and employees, arising under or relating to the Agreement.

 

	FOCUS Project Agreement	 	September 27, 2013	 	Page 7 of 16

  

  

  

 

ATTACHMENT D:

CRDF STANDARD PROVISIONS (AUGUST 2010)

 

	
1. 

	
Relationship.  The Parties are separate organizations operating independently in connection with the Agreement. Neither Party has the authority to create obligations on behalf of the other. Each shall make this fact clear to all third parties with which it deals.

 

	
2.

	
Key Personnel.  Project Directors and other Project Personnel are subject to Sponsor approval prior to initial assignment and any replacement. Approval is hereby provided for Project Personnel specifically named in Article 8 of the Basic Agreement Terms. Departure of one or more Key Personnel, or his/her/their repeated or extended absence from the Project, may be cause for termination of the Agreement by CRDF.

 

	
3. 

	
Goods and Services.  Goods and services purchased by the Recipient with funds provided under this Agreement must be specifically identified in the Budget or approved by CRDF on a case-by-case basis after the Effective Date. Such items must be procured competitively to the extent practicable, at reasonable prices, from responsible sources selected fairly in a manner unimpaired by conflicts of interest or other malpractices. Receipt and proper use for activities within the scope of Project must be fully documented. Recipient may hold title to goods that it purchases pursuant to this Article or that are donated by CRDF, but it shall use them only for the purposes of the Project unless otherwise approved. Items over $5,000 or local currency equivalent per unit acquisition cost shall be reported to CRDF and disposition instructions requested when the items are no longer needed for such purposes.

 

	
4.  

	
Approvals.  All Agreement approvals must be in writing and requested by Recipient from CRDF sufficiently before the desired action to permit due consideration, consultation and decision. If it is not possible to obtain prior written approval within such time frame, CRDF may ratify the action after the fact, but is not obligated to do so. Recipient understands that approval requests may take time to process and may not always be granted. All decisions may be subject to Sponsor approval.

 

	
5. 

	
Financial Management System.  Recognizing the importance of properly managing Project Support, the Recipient agrees to maintain a financial management system that will enable it to comply with all applicable Agreement requirements, including, but not limited to, the following minimum standards:

 

[a] Provides accurate, current and complete financial information about activities funded under Agreement.

 

[b] Maintains records that adequately identify Project Support and the purposes for which they are used; supports accounting records with source documentation such as cancelled checks, paid bills, payrolls, and time and attendance records.

 

[c] Applies internal controls that yield effective control over and accountability for all cash, property and other assets under the Agreement, safeguards such assets, and ensures that the assets are used only for authorized purposes.

 

[d] Enables Recipient to compare actual expenditures with the Budget.

 

[e] Screens out costs that are not eligible for reimbursement under the Agreement.

 

[f] Includes procedures to ensure that invoices and requests for Project Support are issued only when the funds/support are actually needed for Project purposes.

 

	FOCUS Project Agreement	 	September 27, 2013	 	Page 8 of 16

  

  

  

 

[g] Enables financial information such as expenditures in comparison to Budget figures to be related to performance data.

 

	 	
Recipient agrees that CRDF, the Sponsor or their representatives may review Recipient’s financial management system at any time to determine whether it complies with the above requirements.

 

	
6.  

	
Individual Financial Support (IFS).  Payments to individual Project Personnel will be made, to the extent possible, directly to bank accounts designated by CRDF for the benefit of the individual in accordance with current CRDF procedures.

 

	
7.  

	
Equipment.  Items over $1,000 or local currency equivalent per unit acquisition cost and with a usable life of longer than one year shall be defined as Equipment. Purchase of Equipment and other property is subject to the following provisions:

 

	
a.  

	
No Equipment other than items identified in the Budget may be acquired under this Agreement without the express written approval of the Agreement Officer.

 

	
b.  

	
All Equipment and other property acquired under this Agreement must remain available to and be used for the Project, and may not be sold, leased, mortgaged or otherwise transferred, or used for any non-Project purpose, be located and maintained at the premises of the Recipient and remain accessible for viewing, examination or audit unless CRDF agrees otherwise in writing.

 

	
  c.  

	
Unless otherwise stipulated Equipment and other physical property received by the Recipient or Collaborator under this Agreement is supplied in the capacity of technical assistance and is transferred to the Recipient.

 

	
    d. 

	
Title to Equipment and other property acquired under this Agreement will vest in the Recipient.

 

	
 e.  

	
Use of any Equipment or other property acquired under this Agreement by military end-users or for military purposes is expressly prohibited.

 

	
f. 

	
The Recipient shall ensure that all Equipment and other property provided under this Agreement is maintained in a manner consistent with its specifications and reasonable care, security and maintenance.

 

	
g. 

	
In the event this Agreement is terminated for cause or the Recipient is in material breach thereof, CRDF may, at its sole discretion, require that any Equipment and property acquired under this Agreement be returned to CRDF or transferred to a third party as directed by CRDF.  The shipping costs related to the return or transfer of the Equipment and property will be borne by CRDF.

 

	
h. 

	
Within thirty days of receipt of Equipment, Recipient will prepare and return to CRDF an itemized receiving report, signed by an authorized representative, confirming receipt in apparent good order and working condition and registration of the Equipment on the Recipient’s balance sheet.  The report will be in a form to be provided by CRDF.

 

	
8.

	
Travel. All travel undertaken by Recipient must be authorized in writing by the Agreement Officer at least 10 business days in advance and is subject to the following provisions:

 

	
a. 

	
Travel Allowances (meals, incidentals & lodging expenses) may not exceed current US government rates unless otherwise approved by the Sponsor or provided for in Section E.

 

	
b. 

	
All air transportation purchased must be at the “lowest logical airfare.” “Lowest logical airfare”is defined as the lowest cost alternative that accommodates business commitments at the place of departure and travel destination.  Premium-, Business-class and first-class tickets are not allowable expenses under this Agreement unless approved by the Sponsor or provided for in Section E of this Agreement.

 

	
c. 

	
Traveler’s medical insurance is required for the duration of each trip.performance of the Project shall be governed by the relevant provisions of the existing agreement period.

 

	FOCUS Project Agreement	 	September 27, 2013	 	Page 9 of 16

  

  

  

 

	
9. 

	
Intellectual Property.   The ownership and disposition of Intellectual Property conceived or developed in performance of the Project shall be governed by the relevant provisions of the existing agreement between the Recipient and the Sponsor. CRDF makes no claim to any Intellectual Property conceived or first developed in the performance of the Project.

 

	
10.

	
Integrity and Ethics.  At all times during the Agreement Period, both in expending Project Support as well as in its other activities, Recipient shall adhere to the highest standards of integrity and ethics. Without prejudice to the generality of the foregoing, Recipient shall ensure that it has not provided or offered, and will not provide or offer, any corrupt, prohibited, unethical or even unseemly payment or other benefit directly or indirectly to CRDF, any government official(s), or any agent or representative of either of the foregoing.

 

	
 

	
The Recipient shall have in place established policies and procedures for the identification, reporting and investigation of research misconduct. Any potential incidents of research misconduct that, if valid, would cast significant doubt on the validity of the research results resulting under the Project shall be reported promptly, in writing, to CRDF.

 

	
11.

	
Conflicts of Interest. All Recipients shall adhere to the highest ethical standards in all matters related to this Agreement, and shall assure that the Project Personnel adhere to those standards.

 

	
 

	For purposes of this Article—

 

	
 

	“Conflict of Interest” means a family or other personal relationship, a business or financial interest, or any other relationship, interest or activity that

 

(i) impairs (or might impair) his/her objectivity in performing his/her obligations under this Agreement;

 

(ii) makes him/her unable to render impartial assistance or advice under this Agreement; or

 

(iii) gives him/her an unfair competitive advantage.

 

	
 

	“Interest” means a relationship of any kind from which a person or organization derives (or might derive) pecuniary or in-kind benefits.

 

	
 

	No Recipient or Project Personnel may participate in any decision involving the obligation of Project funds or the use or disposition of Project funds if he/she knows, or reasonably should know, that such participation involves an actual or potential Conflict or Interest, or the appearance of such a Conflict of Interest.

 

	
 

	To implement this requirement the Recipient will:

 

	
 

	Disclose promptly to CRDF and the Sponsor any close family relationship or interest that may constitute or create a Conflict of Interest or the appearance of a Conflict of Interest;

 

	
 

	o  Refrain from participating in, and from using his/her personal influence in connection with,decisions where such participation may involve a Conflict of Interest or the appearance of a Conflict of Interest except:

 

To provide information when requested, or

 

To provide information known to him/her indicating that a proposed or existing transaction could be contrary to this policy.

 

	FOCUS Project Agreement	 	September 27, 2013	 	Page 10 of 16

  

  

  

 

	
 

	o  Refrain from dealing on behalf of CRDF with organizations or persons on transactions involving the obligation of Project Support or the use thereof except after full disclosure and with the express written authorization of the Agreement Officer.

 

	
 

	o  Assure that Project Personnel comply with the requirements of this Article.

 

	
 

	The Recipient will monitor its relationships and interests, and those of the Project Personnel, on an ongoing basis and will report any relationships or interests that might violate the provisions of this Article.

 

	
12. 

	
Whistleblower Policy. It is the policy of CRDF Global that grantees, vendors and contractors are encouraged and expected to report possible violations of laws, rules and regulations, as well as fraudulent or dishonest use or misuse of CRDF Global resources or property, violations of CRDF Globals conflict of interest policy and other serious misconduct. Reports may be made directly to CRDF Global management (who can be contacted via the main CRDF Global website www.crdfglobal.org or via the Global Compliance hotline available at https://crdfglobal.altertline.com/gcs/welcome?locale=en. All information will be treated confidentially and all complaints will be investigated by CRDF Global management and regularly reported to the Audit Committee of the Board of Directors. CRDF Global will not retaliate, nor will CRDF Globaltolerate retaliation by any of its employees, against any grantee, vendor or contractor who makes a good faith report pursuant to this policy; even if an investigation shows that there has not been a violation.

 

	
13.

	
Confidential Information.  Confidential information, as used in this Agreement, means: 1) information or data of a personal nature about an individual or 2) information or data submitted by or pertaining to the Recipient, the Sponsor, Secondary Collaborators, subcontractors, subawardees or CRDF.

 

Information may be further identified as “business-confidential” if (1) a person having the information may derive an economic benefit from it or obtain a competitive advantage over those who do not have it, (2) the information is not generally known or publicly available from other sources, and (3) the owner of the information has not previously made it available without imposing in a timely manner an obligation to keep it confidential.

 

In the event that information identified in a timely fashion as confidential or business-confidential is furnished or created under the award, Recipient and Project Personnel shall protect such information in accordance with applicable laws, regulations, and administrative or internal practice.

 

All aspects of this Agreement, except its financial aspects and information specifically designated as confidential in accordance with the provisions set forth in this Agreement, are considered accessible to the public.  Confidential information, as defined in (1) and (2) above, shall not be disclosed without the prior written consent of the Recipient, Project Personnel, the Sponsor or CRDF as appropriate.

 

Whenever the Recipient is uncertain with regard to the proper handling of material under the Project, or if the material in question is confidential information subject to this Agreement, Recipient shall obtain a written determination from the Agreement Officer prior to any release, disclosure, dissemination, or publication.

 

In addition to the types of confidential information described above, information which might require special consideration with regard to the timing of its disclosure may derive from studies or research, during which public disclosure of preliminary invalidated findings could create erroneous conclusions which might threaten public health or safety if acted upon.

 

Written advance notice of at least forty-five (45) days will be provided to the Agreement Officer of Recipient’s intent to release findings of studies or research, which have the possibility of adverse effects on the public, CRDF or the Sponsor.  If the Agreement Officer does not pose any objections in writing within the forty-five (45) day period, Recipient may proceed with disclosure.

 

 

	FOCUS Project Agreement	 	September 27, 2013	 	Page 11 of 16

  

  

  

 

	
14. 

	
Debarment and Other Responsibility Matters.  By signing this Agreement, the Recipient certifies that neither it nor any individual Project Personnel is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from activities subject to the debarment or suspension, by any US Federal, State, or local department or agency. Recipient is responsible for notifying CRDF immediately in writing if it or individual Project Personnel becomes debarred, suspended, declared ineligible or voluntarily excluded from activities to subject to debarment or suspension or is proposed for debarment.

 

	
15.

	
Compliance with Law.  In performing its duties under the Agreement, Recipient shall ensure that it strictly complies with all applicable laws and mandatory public policies (including, but not limited to, those relating to corporate operations, taxation, employment and the environment), and shall be solely responsible for all costs, risks and delays resulting from doing so, or the failure to do so. The Recipient further acknowledges that, when applicable, it has the responsibility to obtain export licenses, or other export authority as may be required, with respect to activities undertaken in connection with this Agreement.

 

	
16. 

	
Foreign Taxes and Related Considerations. Funds provided under this Agreement may not be used to pay any customs, duties, taxes, fees or other such levies and costs incurred within the territory of the Recipient’s country unless otherwise authorized by the Agreement Officer. Recipient shall inform CRDF immediately, in writing, of any tax or duty imposed on funds or materials provided by CRDF under this Agreement. Recipient shall comply with all applicable local tax regulations and reporting requirements, and Recipient may choose to seek advice from appropriate tax authorities or other professionals to ensure their compliance.

 

	
17. 

	
Records. Recipient agrees [a] to keep complete records of all costs charged to the Agreement for at least three years after the Expiration Date or until such later date as any claim, audit or review begun before then is completed, and [b] to ensure that the foregoing are supported by adequate documentation.Records shall be kept in accordance with formally prescribed generally accepted accounting principles. Timely, unrestricted access to records shall be provided to CRDF, the Sponsor or their representatives to make audits, examinations, excerpts, transcripts and copies for as long as the records are kept. Timely and reasonable access to Recipient personnel for interviews and discussions related to such records shall also be ensured.

 

	
18.

	
Monitoring and Evaluation. CRDF may appropriately monitor and evaluate (“M&E”) the financial and programmatic progress of Agreement activities. Recipient agrees to cooperate with all reasonable requests for assistance in connection with such M&E, including but not limited to facilitating site visits, providing records or other information pertinent to such activities. Recipient also agrees to prepare and submit required reports in a timely manner period.

 

	
19.

	
Audits.  At any time during or after the Agreement Period and/or closeout, CRDF reserves the right [a] for itself, the Sponsor, and/or their representatives to conduct limited-scope (agreed-upon procedures) audits of Agreement expenditures and other support; [b] to issue management decisions in response to any resulting finding(s); and [c] to adjust its records, and to require Recipient to adjust its records, in accordance with such decisions. CRDF also reserves the right to take such other measures as it may deem necessary, in its sole discretion, as a result of such audits and audit findings.

 

	FOCUS Project Agreement	 	September 27, 2013	 	Page 12 of 16

  

  

  

 

	
20.

	
Human Subjects Research.

 

[RESERVED]

 

	
21. 

	
Animal Welfare.

 

[RESERVED]

 

	
22.

	
Research Involving Recombinant DNA Molecules.

 

[RESERVED]

 

	
23.

	
Terrorism.  As a material condition of receiving support under this Agreement, Recipient accepts the obligation to take all reasonable steps to prevent financing or any other form of material support being provided to terrorists and individuals and entities that provide support or services to, are owned or controlled by, act for or on behalf of, or are otherwise associated with terrorists. With prejudice to the generality of the foregoing, Recipient agrees to ensure that it does not engage in any transaction with or otherwise provide any financing or other material support to an individual or entity on the Specially Designated National (SDN) list issued by the Office of Foreign Assets Control of the US Treasury Department (http://www.treas.gov/offices/enforcement/ofac/sdn”). Recipient will also require all subrecipients, contractors and others with whom it deals under the Project to comply with this provision.

 

	
24. 

	
Human Trafficking and Forced Labor.  During the Agreement Period, Recipient agrees not to engage in severe forms of human trafficking, procure a commercial sex act, or use forced labor in performance of the Agreement. Recipient further agrees to ensure that its employees and subrecipients observe the same requirement, and to disclose any information or allegations of violations that come to its attention; failure to comply with the requirements of this Article may result in unilateral termination of the Agreement by CRDF without penalty or further payment.

 

	
25.

	
Liability. Recipient agrees and shall require individual Project Personnel to agree that CRDF shall have no liability to the Recipient, Project Personnel or any other entity or person for any claims arising out of, or related to, the performance of this Agreement or the representations or warranties made by the Recipient and Project Personnel herein except if, and to the extent, due to the negligent, willful or intentional misconduct of CRDF, its officers, employees or agents. In addition, except as prohibited by applicable law, all parties to this Agreement assume their own respective liability that may be incurred, including attorney's fees, in defending any action as a result of performance under this Agreement to the extent such liability is a result of the party's negligent, willful or intentional misconduct. The Recipient is advised to take such steps as may be deemed necessary to insure or protect themselves, their employees and property.

 

	
26.

	
No Third-Party Beneficiary. Except as specifically set forth in this Agreement, this Agreement is not intended to create and does not create any rights in or benefits to any third party.

 

	
27.

	
Force Majeure. No party shall be liable for any failure to perform its obligations under this Agreement, if such failure results from any Acts of God, Acts of War, riot, civil unrest, flood, earthquake or other similar cause beyond such party’s reasonable control (including any mechanical, electronic or communications failure, but excluding failure caused by a party’s financial condition or negligence).

 

	FOCUS Project Agreement	 	September 27, 2013	 	Page 13 of 16

  

  

  

 

	
 

	
A party experiencing a Force Majeure circumstance shall notify the other party(ies), in writing, as soon as possible describing the situation and its impact on the conduct of the Project. The term of this Agreement may be automatically extended by a period equivalent to the period of the force majeure. Should the force majeure situation make it impractical to continue with the execution of the Project, this Agreement may be terminated in accordance with the provisions of this Agreement.

 

	
28.

	
Suspension.  At any time during the Agreement Period, CRDF may suspend the Agreement for any reason for up to 60 days, or longer if deemed necessary. Suspension may be in whole or in part and shall be effective on the date stated in a written notice to Recipient. The notice will identify the type of action taken and instruct Recipient to cease incurring costs for Project activities, subject to any exceptions stated.

 

	
29. 

	
Termination.  At any time during the Agreement Period, CRDF may take any one or more of the following actions: [a] unilaterally terminate the Agreement for convenience with fifteen days notice [b] unilaterally terminate the Agreement due to Recipient’s material breach or noncompliance with the terms and conditions of the Agreement, Recipient insolvency, or upon the direction of any cognizant government official or requirement of applicable law; [c] terminate by mutual agreement of the Parties; or [d] terminate at Recipient’s request. Termination shall be effective on the date stated in a written notice to Recipient. The notice will identify the type of action taken and instruct Recipient to cease incurring costs for Project activities, subject to any exceptions stated. Unilateral notices of termination(except for material breach/noncompliance by Recipient, government direction or requirement of law, in which cases CRDF shall have no further liability) will ask Recipient promptly to submit a claim for reimbursement of eligible costs incurred before the termination effective date.

 

	
30.

	
Resolution of Disputes.  The Parties will exert their best efforts to consult and resolve all issues in connection with the Agreement amicably, equitably and in a mutually satisfactorily manner. Issues that cannot be resolved by communications between the contact persons specified on the Cover Sheet will be reviewed by each Party’s senior management. Any remaining issues may be resolved by any agreed non-judicial procedure, absent agreement on which the sole recourse of either Party shall be the courts in the Commonwealth of Virginia, USA. Claims may not include losses, damages or other relief based on harm that could have been avoided or mitigated by reasonable actions of the claiming Party or any exemplary, consequential or punitive damages, however described.

 

	
31.

	
Governing Law.  This Agreement, its making and performance, and the surrounding facts and circumstances shall be interpreted in accordance with the laws in effect in the Commonwealth of Virginia, USA, without effect to its conflict-of-law rules.

 

	
32.

	
Amendments.  The Agreement may only be modified by a written amendment signed by both Parties.

 

	
33. 

	
Issuance in Multiple Languages. For explanatory purposes or for the sake of clarification, this Agreement and associated documents may be translated into one or more languages other than English. In the event of the existence of such translations, the English-language version shall serve as the definitive version determining the interpretation of any provision contained herein.

 

	
34.

	
 Closeout. To facilitate timely closeout of the Agreement, Recipient agrees to perform all of its Agreement obligations in a timely manner and to take all necessary and appropriate steps to assist CRDF in the closeout process. Closeout shall, in addition to such other steps as CRDF may reasonably request, follow standard CRDF procedures which include the following Recipient actions:  [a] liquidation of unliquidated obligations, [b] submission of a Final Invoice as applicable, [c] refund of unobligated balances, [d] accounting for and, if instructed by CRDF or the Sponsor, disposing of goods and other items procured with Project support; and [e] execution of an acceptable release.  Upon completion of closeout, CRDF will make any final payment due as approved by the Sponsor. Recipient agrees to complete any required closeout actions within 30 days after the Expiration Date unless an extension is granted by CRDF.

 

	FOCUS Project Agreement	 	September 27, 2013	 	Page 14 of 16

  

  

  

 

	
35. 

	
Refunds.  Recipient agrees to promptly refund to CRDF (1) upon request at any time, whether during or after the Agreement Period, or prior to or after closeout, any costs charged to the Agreement or uses of other Project Support that are determined to be ineligible in accordance with the terms and conditions of the Agreement; or (2) after the Expiration Date, any balance of Project Support not already expended or irrevocably obligated.

 

	
36.

	
Offsets.  CRDF may deduct from any payment all or part of any amount, whether in connection with the Agreement or any other agreement, owed to it by Recipient.

 

	
37.

	
Non-Waiver.  Failure of either or both Parties to enforce any Agreement provision(s) shall not be deemed a waiver or Amendment of the Agreement or a waiver of any prior or subsequent breach.

 

	
38.

	
Successors and Assigns.  This Agreement shall insure to the benefit of and be binding on the Parties’ respective heirs, executors, administrators, successors and approved assigns.

 

	
39. 

	
Assignment and Subagreements.  Recipient may not assign, subcontract, grant, subgrant or otherwise transfer any rights (including, but not limited to, claims and rights to receive payment) or obligations under the Agreement to any other person or entity without the written approval of the Sponsor and CRDF.

 

	
40. 

	
Severability  Any Agreement provision(s) determined by a court or other competent authority to contravene applicable law or mandatory public policy will be rendered void or unenforceable only to the extent of such contravention; remaining provisions shall continue in full force and effect and be construed to implement the Parties’ intent to the maximum extent practicable.

 

	
41. 

	
Publications. Unless otherwise provided in Section E, the Recipient is free to publish the results and findings of research performed under the Project. Unless otherwise specified in Section E all publications must acknowledge the support provided by the Sponsor.

 

	FOCUS Project Agreement	 	September 27, 2013	 	Page 15 of 16

  

  

  

 

ATTACHMENT E

SPONSOR CONDITIONS & EXCEPTIONS

 

	
1. 

	
Official Address. This Agreement is issued under the authority of the U.S. Civilian Research & Development Foundation, whose corporate headquarters is located at 1776 Wilson Boulevard, Suite 300, Arlington, VA 22209 USA.

 

{For use if CRDF Kyiv contact information is used on the cover sheet}

 

	
2. 

	
Order of Precedence. The attached agreement, and all associated appendices, between {Sponsor} and the{Recipient} are hereby incorporated, in their entirety, to this Agreement. In the event of a conflict between CRDF agreement terms and the terms of the incorporated agreement, the terms of the incorporated agreement shall govern.

 

 

 

 

 

	FOCUS Project Agreement	 	September 27, 2013	 	Page 16 of 16PURCHASE
AGREEMENT

 

THIS
AGREEMENT, effective as of December 12, 2012 (“Effective Date”) is made by and between Roger Mincheff (“Mincheff’),
whose address is_____________________, and WOWIO, Inc. (“Wowio”) whose address is 6310 San Vicente Blvd., Suite 240,
Los Angeles, CA 90048 regarding the purchase of the Wowio properties outlined below.

 

WHEREAS,
Mincheff and Wowio entered into two agreements: (i) a Corporate Acquisition Agreement dated as of September 24, 2010, whereby
Wowio acquired Spacedog Entertainment, Inc. (the “Corporate Acquisition Agreement”); and (ii) an Asset Purchase Agreement
dated as of May 15, 2010, whereby Wowio acquired WeVolt and Panel Flow assets (the “Asset Purchase Agreement”);

 

WHEREAS,
pursuant to the Corporate Acquisition Agreement and Asset Purchase Agreement, Mincheff received a total of $107,000 in cash and
20,043,000 shares of Wowio common stock.

 

WHEREAS,
the Corporate Acquisition Agreement included (among other provisions) the transfer of a library of intellectual property, comprised
primarily of graphic novels at various stages of production; and

 

WHEREAS,
Mincheff and Wowio have agreed to transfer the rights of certain intellectual property acquired by Wowio pursuant to the Corporate
Acquisition Agreement back to Mincheff.

 

ACCORDINGLY,
the parties hereby agree as follows:

 

	1.		Conditions
                                                                                                                                                                                                           Precedent:
                                                                                                                                                                                                           This
                                                                                                                                                                                                           Agreement
                                                                                                                                                                                                           shall
                                                                                                                                                                                                           have
                                                                                                                                                                                                           no
                                                                                                                                                                                                           force
                                                                                                                                                                                                           or
                                                                                                                                                                                                           effect
                                                                                                                                                                                                           whatsoever
                                                                                                                                                                                                           until
                                                                                                                                                                                                           the
                                                                                                                                                                                                           following
                                                                                                                                                                                                           conditions
                                                                                                                                                                                                           have
                                                                                                                                                                                                           been
                                                                                                                                                                                                           met:

 

		1.1	Execution of Agreement.
Wowio’s receipt of fully-executed copies of this Agreement by Mincheff; and

 

		1.2	Assignment. Full execution
of the attached short form assignment.

 

		1.3	Mincheff’s
                                                                                                                                                                                                                     Wowio
                                                                                                                                                                                                                     Stock.
                                                                                                                                                                                                                     Wowio’s
                                                                                                                                                                                                                     receipt
                                                                                                                                                                                                                     of
                                                                                                                                                                                                                     stock
                                                                                                                                                                                                                     certificates
                                                                                                                                                                                                                     representing
                                                                                                                                                                                                                     Minchelff
                                                                                                                                                                                                                     s
                                                                                                                                                                                                                     20,043,000
                                                                                                                                                                                                                     shares
                                                                                                                                                                                                                     of
                                                                                                                                                                                                                     Wowio
                                                                                                                                                                                                                     common
                                                                                                                                                                                                                     stock,
                                                                                                                                                                                                                     executed
                                                                                                                                                                                                                     stock
                                                                                                                                                                                                                     power
                                                                                                                                                                                                                     and
                                                                                                                                                                                                                     any
                                                                                                                                                                                                                     other
                                                                                                                                                                                                                     documents
                                                                                                                                                                                                                     reasonably
                                                                                                                                                                                                                     required
                                                                                                                                                                                                                     by
                                                                                                                                                                                                                     Wowio’s
                                                                                                                                                                                                                     transfer
                                                                                                                                                                                                                     agent
                                                                                                                                                                                                                     in
                                                                                                                                                                                                                     connection
                                                                                                                                                                                                                     with
                                                                                                                                                                                                                     this
                                                                                                                                                                                                                     Agreement.

 

	2.		Properties
                                                                                                                                                                                                               to
                                                                                                                                                                                                               be
                                                                                                                                                                                                               Acquired
                                                                                                                                                                                                               by
                                                                                                                                                                                                               Mincheff/Grant
                                                                                                                                                                                                               of
                                                                                                                                                                                                               Rights:
                                                                                                                                                                                                               Subject
                                                                                                                                                                                                               to
                                                                                                                                                                                                               the
                                                                                                                                                                                                               terms
                                                                                                                                                                                                               outlined
                                                                                                                                                                                                               herein,
                                                                                                                                                                                                               Wowio
                                                                                                                                                                                                               hereby
                                                                                                                                                                                                               agrees
                                                                                                                                                                                                               to
                                                                                                                                                                                                               sell,
                                                                                                                                                                                                               assign
                                                                                                                                                                                                               and
                                                                                                                                                                                                               transfer
                                                                                                                                                                                                               to
                                                                                                                                                                                                               Mincheff,
                                                                                                                                                                                                               its
                                                                                                                                                                                                               successors
                                                                                                                                                                                                               and
                                                                                                                                                                                                               assigns,
                                                                                                                                                                                                               in
                                                                                                                                                                                                               perpetuity,
                                                                                                                                                                                                               all
                                                                                                                                                                                                               rights
                                                                                                                                                                                                               of
                                                                                                                                                                                                               every
                                                                                                                                                                                                               kind
                                                                                                                                                                                                               and
                                                                                                                                                                                                               nature
                                                                                                                                                                                                               in
                                                                                                                                                                                                               and
                                                                                                                                                                                                               to
                                                                                                                                                                                                               those
                                                                                                                                                                                                               certain
                                                                                                                                                                                                               properties
                                                                                                                                                                                                               listed
                                                                                                                                                                                                               below
                                                                                                                                                                                                               (collectively
                                                                                                                                                                                                               “Properties”),
                                                                                                                                                                                                               including
                                                                                                                                                                                                               without
                                                                                                                                                                                                               limitation,
                                                                                                                                                                                                               all
                                                                                                                                                                                                               motion
                                                                                                                                                                                                               picture,
                                                                                                                                                                                                               television,
                                                                                                                                                                                                               remake,
                                                                                                                                                                                                               sequel
                                                                                                                                                                                                               and
                                                                                                                                                                                                               other
                                                                                                                                                                                                               analogous
                                                                                                                                                                                                               and
                                                                                                                                                                                                               allied
                                                                                                                                                                                                               rights
                                                                                                                                                                                                               and
                                                                                                                                                                                                               any
                                                                                                                                                                                                               and
                                                                                                                                                                                                               all
                                                                                                                                                                                                               synopses,
                                                                                                                                                                                                               ueaunems,
                                                                                                                                                                                                               scenarios,
                                                                                                                                                                                                               screenplays,
                                                                                                                                                                                                               grapnic
                                                                                                                                                                                                               novels
                                                                                                                                                                                                               anu
                                                                                                                                                                                                               an
                                                                                                                                                                                                               copyrignis
                                                                                                                                                                                                               in
                                                                                                                                                                                                               connection
                                                                                                                                                                                                               therewith
                                                                                                                                                                                                               and
                                                                                                                                                                                                               all
                                                                                                                                                                                                               tangible
                                                                                                                                                                                                               and
                                                                                                                                                                                                               intangible
                                                                                                                                                                                                               properties
                                                                                                                                                                                                               with
                                                                                                                                                                                                               respect
                                                                                                                                                                                                               to
                                                                                                                                                                                                               the
                                                                                                                                                                                                               Properties
                                                                                                                                                                                                               whether
                                                                                                                                                                                                               currently
                                                                                                                                                                                                               in
                                                                                                                                                                                                               existence
                                                                                                                                                                                                               or
                                                                                                                                                                                                               to
                                                                                                                                                                                                               be
                                                                                                                                                                                                               developed
                                                                                                                                                                                                               in
                                                                                                                                                                                                               the
                                                                                                                                                                                                               future.
                                                                                                                                                                                                               The
                                                                                                                                                                                                               Properties
                                                                                                                                                                                                               are
                                                                                                                                                                                                               currently
                                                                                                                                                                                                               entitled:

 

    	- 1 -

    	 

    

 

	 	2.1	Big Trouble in Little China
	 	2.2.	Court, The
	 	2.3.	Cousins Club
	 	2.4 	Hip Hop Chronicles
	 	2.5	Hollow Mark
	 	2.6	Husk
	 	2.7	Little Sonny Bunny
	 	2.8	State of Ward
	 	2.9	Proximity Effect 
	 	2.10 	Trail, The
	 	2.11 	Wight & Associates

 

	3	 	Consideration: As
                                                                                                                                                                                                                                                                                                                    full
                                                                                                                                                                                                                                                                                                                    and
                                                                                                                                                                                                                                                                                                                    complete
                                                                                                                                                                                                                                                                                                                    consideration
                                                                                                                                                                                                                                                                                                                    for
                                                                                                                                                                                                                                                                                                                    the
                                                                                                                                                                                                                                                                                                                    purchase
                                                                                                                                                                                                                                                                                                                    of
                                                                                                                                                                                                                                                                                                                    the
                                                                                                                                                                                                                                                                                                                    Properties,
                                                                                                                                                                                                                                                                                                                    Mincheff
                                                                                                                                                                                                                                                                                                                    shall
                                                                                                                                                                                                                                                                                                                    provide
                                                                                                                                                                                                                                                                                                                    Wowio
                                                                                                                                                                                                                                                                                                                    with
                                                                                                                                                                                                                                                                                                                    the
                                                                                                                                                                                                                                                                                                                    following:

 

		3.1	Mincheff
                                                                                                                                                                                                                      shall
                                                                                                                                                                                                                      transfer
                                                                                                                                                                                                                      2,550,000
                                                                                                                                                                                                                      shares
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      Wowio
                                                                                                                                                                                                                      common
                                                                                                                                                                                                                      stock
                                                                                                                                                                                                                      back
                                                                                                                                                                                                                      to
                                                                                                                                                                                                                      Wowio.
                                                                                                                                                                                                                      (Wowio
                                                                                                                                                                                                                      shall
                                                                                                                                                                                                                      prepare
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      appropriate
                                                                                                                                                                                                                      transfer
                                                                                                                                                                                                                      documents
                                                                                                                                                                                                                      to
                                                                                                                                                                                                                      perfect
                                                                                                                                                                                                                      such
                                                                                                                                                                                                                      return.)

 

		3.2	Pursuant
                                                                                                                                                                                                                      to
                                                                                                                                                                                                                      paragraph
                                                                                                                                                                                                                      1.3
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      Corporate
                                                                                                                                                                                                                      Acquisition
                                                                                                                                                                                                                      Agreement,
                                                                                                                                                                                                                      Mincheff
                                                                                                                                                                                                                      shall
                                                                                                                                                                                                                      reduce
                                                                                                                                                                                                                      his
                                                                                                                                                                                                                      “Contingent
                                                                                                                                                                                                                      Limited
                                                                                                                                                                                                                      Royalties
                                                                                                                                                                                                                      for
                                                                                                                                                                                                                      Exploitation
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      SDE
                                                                                                                                                                                                                      Properties”
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      $1,000,000
                                                                                                                                                                                                                      to
                                                                                                                                                                                                                      $500,000
                                                                                                                                                                                                                      (“Mincheff
                                                                                                                                                                                                                      Royalties”).

 

		3.3	For
                                                                                                                                                                                                                      a
                                                                                                                                                                                                                      period
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      36
                                                                                                                                                                                                                      months
                                                                                                                                                                                                                      commencing
                                                                                                                                                                                                                      on
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      Effective
                                                                                                                                                                                                                      Date
                                                                                                                                                                                                                      first
                                                                                                                                                                                                                      written
                                                                                                                                                                                                                      above,
                                                                                                                                                                                                                      Mincheff
                                                                                                                                                                                                                      shall
                                                                                                                                                                                                                      pay
                                                                                                                                                                                                                      Wowio
                                                                                                                                                                                                                      50%
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      all
                                                                                                                                                                                                                      Net
                                                                                                                                                                                                                      Revenue
                                                                                                                                                                                                                      generated
                                                                                                                                                                                                                      from
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      Properties.
                                                                                                                                                                                                                      Net
                                                                                                                                                                                                                      Revenue
                                                                                                                                                                                                                      shall
                                                                                                                                                                                                                      be
                                                                                                                                                                                                                      defined
                                                                                                                                                                                                                      as
                                                                                                                                                                                                                      all
                                                                                                                                                                                                                      revenues
                                                                                                                                                                                                                      received
                                                                                                                                                                                                                      from
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      sale
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      license
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      Properties,
                                                                                                                                                                                                                      including
                                                                                                                                                                                                                      any
                                                                                                                                                                                                                      ancillaries,
                                                                                                                                                                                                                      less
                                                                                                                                                                                                                      only
                                                                                                                                                                                                                      actual
                                                                                                                                                                                                                      costs
                                                                                                                                                                                                                      incurred
                                                                                                                                                                                                                      in
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      production
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      exploitation
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      Properties
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      Mincheff
                                                                                                                                                                                                                      Royalties
                                                                                                                                                                                                                      (“Net
                                                                                                                                                                                                                      Revenue”).
                                                                                                                                                                                                                      Commencing
                                                                                                                                                                                                                      after
                                                                                                                                                                                                                      such
                                                                                                                                                                                                                      36-month
                                                                                                                                                                                                                      period
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      continuing
                                                                                                                                                                                                                      in
                                                                                                                                                                                                                      perpetuity,
                                                                                                                                                                                                                      Wowio
                                                                                                                                                                                                                      will
                                                                                                                                                                                                                      receive
                                                                                                                                                                                                                      25%
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      all
                                                                                                                                                                                                                      Net
                                                                                                                                                                                                                      Revenue.

 

		3.4	Wowio
                                                                                                                                                                                                                      shall
                                                                                                                                                                                                                      receive
                                                                                                                                                                                                                      an
                                                                                                                                                                                                                      Executive
                                                                                                                                                                                                                      Producer
                                                                                                                                                                                                                      credit
                                                                                                                                                                                                                      for
                                                                                                                                                                                                                      one
                                                                                                                                                                                                                      designee,
                                                                                                                                                                                                                      on
                                                                                                                                                                                                                      any
                                                                                                                                                                                                                      web,
                                                                                                                                                                                                                      motion
                                                                                                                                                                                                                      picture
                                                                                                                                                                                                                      and/or
                                                                                                                                                                                                                      television
                                                                                                                                                                                                                      productions
                                                                                                                                                                                                                      based
                                                                                                                                                                                                                      on
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      Properties.

 

	4		Reservation
                                                                                                                                                                                                                                                                                                              of
                                                                                                                                                                                                                                                                                                              Rights:
                                                                                                                                                                                                                                                                                                              Wowio
                                                                                                                                                                                                                                                                                                              hereby
                                                                                                                                                                                                                                                                                                              reserves
                                                                                                                                                                                                                                                                                                              the
                                                                                                                                                                                                                                                                                                              non-exclusive
                                                                                                                                                                                                                                                                                                              right
                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                              publish
                                                                                                                                                                                                                                                                                                              the
                                                                                                                                                                                                                                                                                                              Properties
                                                                                                                                                                                                                                                                                                              on
                                                                                                                                                                                                                                                                                                              the
                                                                                                                                                                                                                                                                                                              Wowio
                                                                                                                                                                                                                                                                                                              eBook
                                                                                                                                                                                                                                                                                                              platform,
                                                                                                                                                                                                                                                                                                              only.
                                                                                                                                                                                                                                                                                                              Wowio
                                                                                                                                                                                                                                                                                                              shall
                                                                                                                                                                                                                                                                                                              exploit
                                                                                                                                                                                                                                                                                                              these
                                                                                                                                                                                                                                                                                                              rights
                                                                                                                                                                                                                                                                                                              only
                                                                                                                                                                                                                                                                                                              upon
                                                                                                                                                                                                                                                                                                              prior
                                                                                                                                                                                                                                                                                                              written
                                                                                                                                                                                                                                                                                                              notification
                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                              Mincheff
                                                                                                                                                                                                                                                                                                              and
                                                                                                                                                                                                                                                                                                              confirmation
                                                                                                                                                                                                                                                                                                              from
                                                                                                                                                                                                                                                                                                              Mincheff
                                                                                                                                                                                                                                                                                                              within
                                                                                                                                                                                                                                                                                                              3
                                                                                                                                                                                                                                                                                                              days
                                                                                                                                                                                                                                                                                                              after
                                                                                                                                                                                                                                                                                                              receiving
                                                                                                                                                                                                                                                                                                              notification
                                                                                                                                                                                                                                                                                                              that
                                                                                                                                                                                                                                                                                                              such
                                                                                                                                                                                                                                                                                                              publication
                                                                                                                                                                                                                                                                                                              shall
                                                                                                                                                                                                                                                                                                              not
                                                                                                                                                                                                                                                                                                              present
                                                                                                                                                                                                                                                                                                              a
                                                                                                                                                                                                                                                                                                              conflict
                                                                                                                                                                                                                                                                                                              with
                                                                                                                                                                                                                                                                                                              the
                                                                                                                                                                                                                                                                                                              distribution
                                                                                                                                                                                                                                                                                                              of
                                                                                                                                                                                                                                                                                                              the
                                                                                                                                                                                                                                                                                                              applicable
                                                                                                                                                                                                                                                                                                              Property.

 

    	- 2 -

    	 

    

 

	5		Wowio
                                                                                                                                                                                                                          Representations
                                                                                                                                                                                                                          and
                                                                                                                                                                                                                          Warranties:

 

		5.1	Power
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      Authorization.
                                                                                                                                                                                                                      The
                                                                                                                                                                                                                      execution,
                                                                                                                                                                                                                      delivery
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      performance
                                                                                                                                                                                                                      by
                                                                                                                                                                                                                      Wowio
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      this
                                                                                                                                                                                                                      Agreement
                                                                                                                                                                                                                      to
                                                                                                                                                                                                                      which
                                                                                                                                                                                                                      it
                                                                                                                                                                                                                      is
                                                                                                                                                                                                                      a
                                                                                                                                                                                                                      party
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      consummation
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      transactions
                                                                                                                                                                                                                      contemplated
                                                                                                                                                                                                                      herewith
                                                                                                                                                                                                                      are
                                                                                                                                                                                                                      within
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      power
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      authority
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      Wowio
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      have
                                                                                                                                                                                                                      been
                                                                                                                                                                                                                      duly
                                                                                                                                                                                                                      authorized
                                                                                                                                                                                                                      by
                                                                                                                                                                                                                      all
                                                                                                                                                                                                                      necessary
                                                                                                                                                                                                                      action.
                                                                                                                                                                                                                      This
                                                                                                                                                                                                                      Agreement
                                                                                                                                                                                                                      will
                                                                                                                                                                                                                      be
                                                                                                                                                                                                                      duly
                                                                                                                                                                                                                      executed
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      delivered
                                                                                                                                                                                                                      by
                                                                                                                                                                                                                      Wowio
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      is
                                                                                                                                                                                                                      a
                                                                                                                                                                                                                      legal,
                                                                                                                                                                                                                      valid
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      binding
                                                                                                                                                                                                                      obligation
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      Wowio
                                                                                                                                                                                                                      enforceable
                                                                                                                                                                                                                      against
                                                                                                                                                                                                                      Wowio
                                                                                                                                                                                                                      in
                                                                                                                                                                                                                      accordance
                                                                                                                                                                                                                      with
                                                                                                                                                                                                                      its
                                                                                                                                                                                                                      terms.

 

		5.2	Properties.
                                                                                                                                                                                                                      Wowio
                                                                                                                                                                                                                      represents
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      warrants
                                                                                                                                                                                                                      that
                                                                                                                                                                                                                      with
                                                                                                                                                                                                                      respect
                                                                                                                                                                                                                      to
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      Properties
                                                                                                                                                                                                                      hereunder,
                                                                                                                                                                                                                      Wowio
                                                                                                                                                                                                                      has
                                                                                                                                                                                                                      not
                                                                                                                                                                                                                      altered
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      Properties
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      Properties
                                                                                                                                                                                                                      shall
                                                                                                                                                                                                                      be
                                                                                                                                                                                                                      in
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      same
                                                                                                                                                                                                                      condition
                                                                                                                                                                                                                      as
                                                                                                                                                                                                                      when
                                                                                                                                                                                                                      originally
                                                                                                                                                                                                                      acquired
                                                                                                                                                                                                                      by
                                                                                                                                                                                                                      Wowio.

 

		5.3	No
                                                                                                                                                                                                                      Other
                                                                                                                                                                                                                      Warranties
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      Representations.
                                                                                                                                                                                                                      Except
                                                                                                                                                                                                                      for
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      representations
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      warranties
                                                                                                                                                                                                                      contained
                                                                                                                                                                                                                      in
                                                                                                                                                                                                                      this
                                                                                                                                                                                                                      Section
                                                                                                                                                                                                                      5,
                                                                                                                                                                                                                      neither
                                                                                                                                                                                                                      Wowio
                                                                                                                                                                                                                      nor
                                                                                                                                                                                                                      any
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      its
                                                                                                                                                                                                                      representatives
                                                                                                                                                                                                                      makes
                                                                                                                                                                                                                      any
                                                                                                                                                                                                                      other
                                                                                                                                                                                                                      express
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      implied
                                                                                                                                                                                                                      representation
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      warranty
                                                                                                                                                                                                                      with
                                                                                                                                                                                                                      respect
                                                                                                                                                                                                                      to
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      Properties,
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      Wowio
                                                                                                                                                                                                                      disclaims
                                                                                                                                                                                                                      any
                                                                                                                                                                                                                      other
                                                                                                                                                                                                                      representations
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      warranties,
                                                                                                                                                                                                                      whether
                                                                                                                                                                                                                      made
                                                                                                                                                                                                                      by
                                                                                                                                                                                                                      Wowio
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      any
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      its
                                                                                                                                                                                                                      representatives.
                                                                                                                                                                                                                      Without
                                                                                                                                                                                                                      limiting
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      generality
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      foregoing,
                                                                                                                                                                                                                      subject
                                                                                                                                                                                                                      to
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      express
                                                                                                                                                                                                                      representations
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      warranties
                                                                                                                                                                                                                      contained
                                                                                                                                                                                                                      in
                                                                                                                                                                                                                      this
                                                                                                                                                                                                                      Section
                                                                                                                                                                                                                      5,
                                                                                                                                                                                                                      (i)
                                                                                                                                                                                                                      Wowio
                                                                                                                                                                                                                      makes
                                                                                                                                                                                                                      no
                                                                                                                                                                                                                      representation
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      warranty
                                                                                                                                                                                                                      whatsoever,
                                                                                                                                                                                                                      express
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      implied,
                                                                                                                                                                                                                      concerning
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      Properties,
                                                                                                                                                                                                                      including,
                                                                                                                                                                                                                      without
                                                                                                                                                                                                                      limitation,
                                                                                                                                                                                                                      any
                                                                                                                                                                                                                      representation
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      warranty
                                                                                                                                                                                                                      as
                                                                                                                                                                                                                      to
                                                                                                                                                                                                                      value,
                                                                                                                                                                                                                      true
                                                                                                                                                                                                                      ownership,
                                                                                                                                                                                                                      merchantability,
                                                                                                                                                                                                                      suitability
                                                                                                                                                                                                                      for
                                                                                                                                                                                                                      use,
                                                                                                                                                                                                                      salability,
                                                                                                                                                                                                                      validity
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      enforceability
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      ownership,
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      (ii)
                                                                                                                                                                                                                      Mincheff
                                                                                                                                                                                                                      specifically
                                                                                                                                                                                                                      acknowledges
                                                                                                                                                                                                                      that
                                                                                                                                                                                                                      no
                                                                                                                                                                                                                      warranties
                                                                                                                                                                                                                      that
                                                                                                                                                                                                                      any
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      Properties
                                                                                                                                                                                                                      are
                                                                                                                                                                                                                      merchantable
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      fit
                                                                                                                                                                                                                      for
                                                                                                                                                                                                                      any
                                                                                                                                                                                                                      particular
                                                                                                                                                                                                                      purpose
                                                                                                                                                                                                                      are
                                                                                                                                                                                                                      made
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      should
                                                                                                                                                                                                                      be
                                                                                                                                                                                                                      implied.

 

	6		Mincheff
                                                                                                                                                                                                             Representations
                                                                                                                                                                                                             and
                                                                                                                                                                                                             Warranties:
                                                                                                                                                                                                             Mincheff
                                                                                                                                                                                                             represents
                                                                                                                                                                                                             and
                                                                                                                                                                                                             warrants
                                                                                                                                                                                                             that
                                                                                                                                                                                                             he
                                                                                                                                                                                                             is
                                                                                                                                                                                                             free
                                                                                                                                                                                                             to
                                                                                                                                                                                                             enter
                                                                                                                                                                                                             into
                                                                                                                                                                                                             this
                                                                                                                                                                                                             Agreement
                                                                                                                                                                                                             and
                                                                                                                                                                                                             will
                                                                                                                                                                                                             not
                                                                                                                                                                                                             do
                                                                                                                                                                                                             or
                                                                                                                                                                                                             permit
                                                                                                                                                                                                             any
                                                                                                                                                                                                             act
                                                                                                                                                                                                             which
                                                                                                                                                                                                             will
                                                                                                                                                                                                             interfere
                                                                                                                                                                                                             with
                                                                                                                                                                                                             or
                                                                                                                                                                                                             derogate
                                                                                                                                                                                                             from
                                                                                                                                                                                                             Wowio’s
                                                                                                                                                                                                             exercise
                                                                                                                                                                                                             of
                                                                                                                                                                                                             the
                                                                                                                                                                                                             rights
                                                                                                                                                                                                             herein
                                                                                                                                                                                                             granted.
                                                                                                                                                                                                             Additionally,
                                                                                                                                                                                                             with
                                                                                                                                                                                                             regard
                                                                                                                                                                                                             to
                                                                                                                                                                                                             the
                                                                                                                                                                                                             intellectual
                                                                                                                                                                                                             property
                                                                                                                                                                                                             that
                                                                                                                                                                                                             was
                                                                                                                                                                                                             purchased
                                                                                                                                                                                                             by
                                                                                                                                                                                                             Wowio
                                                                                                                                                                                                             pursuant
                                                                                                                                                                                                             to
                                                                                                                                                                                                             the
                                                                                                                                                                                                             Corporate
                                                                                                                                                                                                             Acquisition
                                                                                                                                                                                                             Agreement
                                                                                                                                                                                                             and
                                                                                                                                                                                                             of
                                                                                                                                                                                                             which
                                                                                                                                                                                                             Wowio
                                                                                                                                                                                                             is
                                                                                                                                                                                                             retaining
                                                                                                                                                                                                             ownership
                                                                                                                                                                                                             (“Wowio
                                                                                                                                                                                                             Properties”),
                                                                                                                                                                                                             neither
                                                                                                                                                                                                             Mincheff
                                                                                                                                                                                                             nor
                                                                                                                                                                                                             any
                                                                                                                                                                                                             of
                                                                                                                                                                                                             his
                                                                                                                                                                                                             representatives
                                                                                                                                                                                                             makes
                                                                                                                                                                                                             any
                                                                                                                                                                                                             express
                                                                                                                                                                                                             or
                                                                                                                                                                                                             implied
                                                                                                                                                                                                             representation
                                                                                                                                                                                                             or
                                                                                                                                                                                                             warranty
                                                                                                                                                                                                             with
                                                                                                                                                                                                             respect
                                                                                                                                                                                                             to
                                                                                                                                                                                                             the
                                                                                                                                                                                                             Wowio
                                                                                                                                                                                                             Properties,
                                                                                                                                                                                                             and
                                                                                                                                                                                                             Mincheff
                                                                                                                                                                                                             disclaims
                                                                                                                                                                                                             any
                                                                                                                                                                                                             other
                                                                                                                                                                                                             representations
                                                                                                                                                                                                             or
                                                                                                                                                                                                             warranties,
                                                                                                                                                                                                             whether
                                                                                                                                                                                                             made
                                                                                                                                                                                                             by
                                                                                                                                                                                                             Mincheff
                                                                                                                                                                                                             or
                                                                                                                                                                                                             any
                                                                                                                                                                                                             of
                                                                                                                                                                                                             his
                                                                                                                                                                                                             representatives.
                                                                                                                                                                                                             Without
                                                                                                                                                                                                             limiting
                                                                                                                                                                                                             the
                                                                                                                                                                                                             generality
                                                                                                                                                                                                             of
                                                                                                                                                                                                             the
                                                                                                                                                                                                             foregoing,
                                                                                                                                                                                                             subject
                                                                                                                                                                                                             to
                                                                                                                                                                                                             the
                                                                                                                                                                                                             express
                                                                                                                                                                                                             representations
                                                                                                                                                                                                             and
                                                                                                                                                                                                             warranties
                                                                                                                                                                                                             contained
                                                                                                                                                                                                             in
                                                                                                                                                                                                             this
                                                                                                                                                                                                             Section
                                                                                                                                                                                                             6,
                                                                                                                                                                                                             (i)
                                                                                                                                                                                                             Mincheff
                                                                                                                                                                                                             makes
                                                                                                                                                                                                             no
                                                                                                                                                                                                             representation
                                                                                                                                                                                                             or
                                                                                                                                                                                                             warranty
                                                                                                                                                                                                             whatsoever,
                                                                                                                                                                                                             express
                                                                                                                                                                                                             or
                                                                                                                                                                                                             implied,
                                                                                                                                                                                                             concerning
                                                                                                                                                                                                             the
                                                                                                                                                                                                             properties,
                                                                                                                                                                                                             including,
                                                                                                                                                                                                             without
                                                                                                                                                                                                             limitation,
                                                                                                                                                                                                             any
                                                                                                                                                                                                             representation
                                                                                                                                                                                                             or
                                                                                                                                                                                                             warranty
                                                                                                                                                                                                             as
                                                                                                                                                                                                             to
                                                                                                                                                                                                             value,
                                                                                                                                                                                                             true
                                                                                                                                                                                                             ownership,
                                                                                                                                                                                                             merchantability,
                                                                                                                                                                                                             suitability
                                                                                                                                                                                                             for
                                                                                                                                                                                                             use,
                                                                                                                                                                                                             salability,
                                                                                                                                                                                                             validity
                                                                                                                                                                                                             or
                                                                                                                                                                                                             enforceability
                                                                                                                                                                                                             of
                                                                                                                                                                                                             ownership,
                                                                                                                                                                                                             and
                                                                                                                                                                                                             (ii)
                                                                                                                                                                                                             Wowio
                                                                                                                                                                                                             specifically
                                                                                                                                                                                                             acknowledges
                                                                                                                                                                                                             that
                                                                                                                                                                                                             no
                                                                                                                                                                                                             warranties
                                                                                                                                                                                                             that
                                                                                                                                                                                                             any
                                                                                                                                                                                                             of
                                                                                                                                                                                                             the
                                                                                                                                                                                                             Wowio
                                                                                                                                                                                                             Properties
                                                                                                                                                                                                             are
                                                                                                                                                                                                             merchantable
                                                                                                                                                                                                             or
                                                                                                                                                                                                             fit
                                                                                                                                                                                                             for
                                                                                                                                                                                                             any
                                                                                                                                                                                                             particular
                                                                                                                                                                                                             purpose
                                                                                                                                                                                                             are
                                                                                                                                                                                                             made
                                                                                                                                                                                                             or
                                                                                                                                                                                                             should
                                                                                                                                                                                                             be
                                                                                                                                                                                                             implied

 

	7		Miscellaneous:

 

		7.1	Arbitration:
                                                                                                                                                                                                                     All
                                                                                                                                                                                                                     disputes
                                                                                                                                                                                                                     under
                                                                                                                                                                                                                     this
                                                                                                                                                                                                                     Agreement
                                                                                                                                                                                                                     shall
                                                                                                                                                                                                                     be
                                                                                                                                                                                                                     settled
                                                                                                                                                                                                                     pursuant
                                                                                                                                                                                                                     to
                                                                                                                                                                                                                     binding
                                                                                                                                                                                                                     arbitration
                                                                                                                                                                                                                     under
                                                                                                                                                                                                                     the
                                                                                                                                                                                                                     commercial
                                                                                                                                                                                                                     arbitration
                                                                                                                                                                                                                     rules
                                                                                                                                                                                                                     of
                                                                                                                                                                                                                     the
                                                                                                                                                                                                                     American
                                                                                                                                                                                                                     Arbitration
                                                                                                                                                                                                                     Association
                                                                                                                                                                                                                     (“AAA”)
                                                                                                                                                                                                                     before
                                                                                                                                                                                                                     a
                                                                                                                                                                                                                     single
                                                                                                                                                                                                                     arbitrator
                                                                                                                                                                                                                     with
                                                                                                                                                                                                                     expertise
                                                                                                                                                                                                                     in
                                                                                                                                                                                                                     entertainment
                                                                                                                                                                                                                     matters.
                                                                                                                                                                                                                     The
                                                                                                                                                                                                                     arbitration
                                                                                                                                                                                                                     shall
                                                                                                                                                                                                                     take
                                                                                                                                                                                                                     place
                                                                                                                                                                                                                     in
                                                                                                                                                                                                                     Los
                                                                                                                                                                                                                     Angeles,
                                                                                                                                                                                                                     California.
                                                                                                                                                                                                                     The
                                                                                                                                                                                                                     prevailing
                                                                                                                                                                                                                     party
                                                                                                                                                                                                                     will
                                                                                                                                                                                                                     be
                                                                                                                                                                                                                     entitled
                                                                                                                                                                                                                     to
                                                                                                                                                                                                                     reasonable
                                                                                                                                                                                                                     attorney
                                                                                                                                                                                                                     fees
                                                                                                                                                                                                                     and
                                                                                                                                                                                                                     costs.

 

    	- 3 -

    	 

    

 

		7.2	Indemnification:
                                                                                                                                                                                                                      Wowio
                                                                                                                                                                                                                      shall
                                                                                                                                                                                                                      indemnify
                                                                                                                                                                                                                      Mincheff
                                                                                                                                                                                                                      from
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      against
                                                                                                                                                                                                                      any
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      all
                                                                                                                                                                                                                      claims
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      damages
                                                                                                                                                                                                                      arising
                                                                                                                                                                                                                      from:
                                                                                                                                                                                                                      (i)
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      breach
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      any
                                                                                                                                                                                                                      term,
                                                                                                                                                                                                                      representation
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      warranty
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      Wowio
                                                                                                                                                                                                                      hereunder;
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      (ii)
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      production,
                                                                                                                                                                                                                      distribution,
                                                                                                                                                                                                                      exhibition
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      exploitation
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      Properties
                                                                                                                                                                                                                      by
                                                                                                                                                                                                                      Wowio
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      its
                                                                                                                                                                                                                      assignees,
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      any
                                                                                                                                                                                                                      element
                                                                                                                                                                                                                      thereof
                                                                                                                                                                                                                      to
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      extent
                                                                                                                                                                                                                      such
                                                                                                                                                                                                                      claim
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      damage
                                                                                                                                                                                                                      arises
                                                                                                                                                                                                                      from
                                                                                                                                                                                                                      an
                                                                                                                                                                                                                      action
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      omission
                                                                                                                                                                                                                      taken
                                                                                                                                                                                                                      by
                                                                                                                                                                                                                      Wowio
                                                                                                                                                                                                                      during
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      time
                                                                                                                                                                                                                      Wowio
                                                                                                                                                                                                                      controlled
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      Properties.
                                                                                                                                                                                                                      Mincheff
                                                                                                                                                                                                                      shall
                                                                                                                                                                                                                      indemnify
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      defend
                                                                                                                                                                                                                      Wowio
                                                                                                                                                                                                                      from
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      against
                                                                                                                                                                                                                      any
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      all
                                                                                                                                                                                                                      claims
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      damages
                                                                                                                                                                                                                      arising
                                                                                                                                                                                                                      from:
                                                                                                                                                                                                                      (i)
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      breach
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      any
                                                                                                                                                                                                                      term,
                                                                                                                                                                                                                      representation
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      warranty
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      Mincheff
                                                                                                                                                                                                                      hereunder;
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      (ii)
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      production,
                                                                                                                                                                                                                      distribution,
                                                                                                                                                                                                                      exhibition
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      exploitation
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      Properties
                                                                                                                                                                                                                      by
                                                                                                                                                                                                                      Mincheff
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      its
                                                                                                                                                                                                                      assignees,
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      any
                                                                                                                                                                                                                      element
                                                                                                                                                                                                                      thereof,
                                                                                                                                                                                                                      to
                                                                                                                                                                                                                      the
                                                                                                                                                                                                                      extent
                                                                                                                                                                                                                      such
                                                                                                                                                                                                                      claim
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      damage
                                                                                                                                                                                                                      does
                                                                                                                                                                                                                      not
                                                                                                                                                                                                                      arise
                                                                                                                                                                                                                      out
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      a
                                                                                                                                                                                                                      breach
                                                                                                                                                                                                                      of
                                                                                                                                                                                                                      any
                                                                                                                                                                                                                      term,
                                                                                                                                                                                                                      representation
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      warranty
                                                                                                                                                                                                                      made
                                                                                                                                                                                                                      by
                                                                                                                                                                                                                      Wowio
                                                                                                                                                                                                                      hereunder.

 

		7.3	Assignment:
                                                                                                                                                                                                                                                                                                                The
                                                                                                                                                                                                                                                                                                                parties
                                                                                                                                                                                                                                                                                                                may
                                                                                                                                                                                                                                                                                                                assign
                                                                                                                                                                                                                                                                                                                their
                                                                                                                                                                                                                                                                                                                rights
                                                                                                                                                                                                                                                                                                                and
                                                                                                                                                                                                                                                                                                                obligations
                                                                                                                                                                                                                                                                                                                hereunder;
                                                                                                                                                                                                                                                                                                                provided,
                                                                                                                                                                                                                                                                                                                however,
                                                                                                                                                                                                                                                                                                                if
                                                                                                                                                                                                                                                                                                                this
                                                                                                                                                                                                                                                                                                                Agreement
                                                                                                                                                                                                                                                                                                                is
                                                                                                                                                                                                                                                                                                                assigned
                                                                                                                                                                                                                                                                                                                to
                                                                                                                                                                                                                                                                                                                a
                                                                                                                                                                                                                                                                                                                person
                                                                                                                                                                                                                                                                                                                or
                                                                                                                                                                                                                                                                                                                entity
                                                                                                                                                                                                                                                                                                                other
                                                                                                                                                                                                                                                                                                                than
                                                                                                                                                                                                                                                                                                                a
                                                                                                                                                                                                                                                                                                                bona
                                                                                                                                                                                                                                                                                                                fide
                                                                                                                                                                                                                                                                                                                distributor,
                                                                                                                                                                                                                                                                                                                financier,
                                                                                                                                                                                                                                                                                                                major
                                                                                                                                                                                                                                                                                                                or
                                                                                                                                                                                                                                                                                                                mini-major
                                                                                                                                                                                                                                                                                                                studio
                                                                                                                                                                                                                                                                                                                that
                                                                                                                                                                                                                                                                                                                assumes
                                                                                                                                                                                                                                                                                                                all
                                                                                                                                                                                                                                                                                                                obligations
                                                                                                                                                                                                                                                                                                                in
                                                                                                                                                                                                                                                                                                                writing,
                                                                                                                                                                                                                                                                                                                the
                                                                                                                                                                                                                                                                                                                assigning
                                                                                                                                                                                                                                                                                                                party
                                                                                                                                                                                                                                                                                                                shall
                                                                                                                                                                                                                                                                                                                remain
                                                                                                                                                                                                                                                                                                                secondarily
                                                                                                                                                                                                                                                                                                                liable
                                                                                                                                                                                                                                                                                                                to
                                                                                                                                                                                                                                                                                                                the
                                                                                                                                                                                                                                                                                                                non-assigning
                                                                                                                                                                                                                                                                                                                party.

 

		7.4	Notices:
                                                                                                                                                                                                                                                                                                                Any
                                                                                                                                                                                                                                                                                                                notice
                                                                                                                                                                                                                                                                                                                under
                                                                                                                                                                                                                                                                                                                this
                                                                                                                                                                                                                                                                                                                Agreement
                                                                                                                                                                                                                                                                                                                shall
                                                                                                                                                                                                                                                                                                                be
                                                                                                                                                                                                                                                                                                                written
                                                                                                                                                                                                                                                                                                                and
                                                                                                                                                                                                                                                                                                                delivered
                                                                                                                                                                                                                                                                                                                by
                                                                                                                                                                                                                                                                                                                hand,
                                                                                                                                                                                                                                                                                                                by
                                                                                                                                                                                                                                                                                                                a
                                                                                                                                                                                                                                                                                                                recognized
                                                                                                                                                                                                                                                                                                                courier
                                                                                                                                                                                                                                                                                                                service
                                                                                                                                                                                                                                                                                                                such
                                                                                                                                                                                                                                                                                                                as
                                                                                                                                                                                                                                                                                                                Federal
                                                                                                                                                                                                                                                                                                                Express,
                                                                                                                                                                                                                                                                                                                or
                                                                                                                                                                                                                                                                                                                by
                                                                                                                                                                                                                                                                                                                facsimile
                                                                                                                                                                                                                                                                                                                or
                                                                                                                                                                                                                                                                                                                e-mail
                                                                                                                                                                                                                                                                                                                with
                                                                                                                                                                                                                                                                                                                confirmation
                                                                                                                                                                                                                                                                                                                of
                                                                                                                                                                                                                                                                                                                receipt
                                                                                                                                                                                                                                                                                                                and
                                                                                                                                                                                                                                                                                                                prepaid
                                                                                                                                                                                                                                                                                                                first
                                                                                                                                                                                                                                                                                                                class
                                                                                                                                                                                                                                                                                                                (air
                                                                                                                                                                                                                                                                                                                mail
                                                                                                                                                                                                                                                                                                                if
                                                                                                                                                                                                                                                                                                                posted
                                                                                                                                                                                                                                                                                                                to
                                                                                                                                                                                                                                                                                                                another
                                                                                                                                                                                                                                                                                                                country)
                                                                                                                                                                                                                                                                                                                post
                                                                                                                                                                                                                                                                                                                to
                                                                                                                                                                                                                                                                                                                the
                                                                                                                                                                                                                                                                                                                party
                                                                                                                                                                                                                                                                                                                at
                                                                                                                                                                                                                                                                                                                its
                                                                                                                                                                                                                                                                                                                address
                                                                                                                                                                                                                                                                                                                above.
                                                                                                                                                                                                                                                                                                                Notices
                                                                                                                                                                                                                                                                                                                shall
                                                                                                                                                                                                                                                                                                                be
                                                                                                                                                                                                                                                                                                                deemed
                                                                                                                                                                                                                                                                                                                to
                                                                                                                                                                                                                                                                                                                have
                                                                                                                                                                                                                                                                                                                been
                                                                                                                                                                                                                                                                                                                served
                                                                                                                                                                                                                                                                                                                on
                                                                                                                                                                                                                                                                                                                the
                                                                                                                                                                                                                                                                                                                same
                                                                                                                                                                                                                                                                                                                business
                                                                                                                                                                                                                                                                                                                day
                                                                                                                                                                                                                                                                                                                if
                                                                                                                                                                                                                                                                                                                hand
                                                                                                                                                                                                                                                                                                                delivered,
                                                                                                                                                                                                                                                                                                                faxed
                                                                                                                                                                                                                                                                                                                or
                                                                                                                                                                                                                                                                                                                e-mailed
                                                                                                                                                                                                                                                                                                                during
                                                                                                                                                                                                                                                                                                                business
                                                                                                                                                                                                                                                                                                                hours
                                                                                                                                                                                                                                                                                                                (or
                                                                                                                                                                                                                                                                                                                otherwise
                                                                                                                                                                                                                                                                                                                when
                                                                                                                                                                                                                                                                                                                the
                                                                                                                                                                                                                                                                                                                next
                                                                                                                                                                                                                                                                                                                business
                                                                                                                                                                                                                                                                                                                day
                                                                                                                                                                                                                                                                                                                starts).

 

		7.5	Tax
                                                                                                                                                                                                                                                                                                                Treatment:
                                                                                                                                                                                                                                                                                                                Wowio
                                                                                                                                                                                                                                                                                                                and
                                                                                                                                                                                                                                                                                                                Mincheff
                                                                                                                                                                                                                                                                                                                acknowledge
                                                                                                                                                                                                                                                                                                                that
                                                                                                                                                                                                                                                                                                                they
                                                                                                                                                                                                                                                                                                                each
                                                                                                                                                                                                                                                                                                                have
                                                                                                                                                                                                                                                                                                                been
                                                                                                                                                                                                                                                                                                                represented
                                                                                                                                                                                                                                                                                                                by
                                                                                                                                                                                                                                                                                                                their
                                                                                                                                                                                                                                                                                                                own
                                                                                                                                                                                                                                                                                                                tax
                                                                                                                                                                                                                                                                                                                advisors
                                                                                                                                                                                                                                                                                                                in
                                                                                                                                                                                                                                                                                                                connection
                                                                                                                                                                                                                                                                                                                with
                                                                                                                                                                                                                                                                                                                this
                                                                                                                                                                                                                                                                                                                transaction;
                                                                                                                                                                                                                                                                                                                that
                                                                                                                                                                                                                                                                                                                none
                                                                                                                                                                                                                                                                                                                of
                                                                                                                                                                                                                                                                                                                them
                                                                                                                                                                                                                                                                                                                has
                                                                                                                                                                                                                                                                                                                made
                                                                                                                                                                                                                                                                                                                a
                                                                                                                                                                                                                                                                                                                representation
                                                                                                                                                                                                                                                                                                                or
                                                                                                                                                                                                                                                                                                                warranty
                                                                                                                                                                                                                                                                                                                to
                                                                                                                                                                                                                                                                                                                any
                                                                                                                                                                                                                                                                                                                of
                                                                                                                                                                                                                                                                                                                the
                                                                                                                                                                                                                                                                                                                other
                                                                                                                                                                                                                                                                                                                parties
                                                                                                                                                                                                                                                                                                                with
                                                                                                                                                                                                                                                                                                                respect
                                                                                                                                                                                                                                                                                                                to
                                                                                                                                                                                                                                                                                                                the
                                                                                                                                                                                                                                                                                                                tax
                                                                                                                                                                                                                                                                                                                treatment
                                                                                                                                                                                                                                                                                                                accorded
                                                                                                                                                                                                                                                                                                                this
                                                                                                                                                                                                                                                                                                                transaction,
                                                                                                                                                                                                                                                                                                                or
                                                                                                                                                                                                                                                                                                                the
                                                                                                                                                                                                                                                                                                                effect
                                                                                                                                                                                                                                                                                                                individually
                                                                                                                                                                                                                                                                                                                or
                                                                                                                                                                                                                                                                                                                corporately
                                                                                                                                                                                                                                                                                                                on
                                                                                                                                                                                                                                                                                                                any
                                                                                                                                                                                                                                                                                                                party
                                                                                                                                                                                                                                                                                                                under
                                                                                                                                                                                                                                                                                                                the
                                                                                                                                                                                                                                                                                                                applicable
                                                                                                                                                                                                                                                                                                                tax
                                                                                                                                                                                                                                                                                                                laws,
                                                                                                                                                                                                                                                                                                                regulations,
                                                                                                                                                                                                                                                                                                                or
                                                                                                                                                                                                                                                                                                                interpretations;
                                                                                                                                                                                                                                                                                                                and
                                                                                                                                                                                                                                                                                                                that
                                                                                                                                                                                                                                                                                                                no
                                                                                                                                                                                                                                                                                                                opinion
                                                                                                                                                                                                                                                                                                                of
                                                                                                                                                                                                                                                                                                                counsel
                                                                                                                                                                                                                                                                                                                or
                                                                                                                                                                                                                                                                                                                private
                                                                                                                                                                                                                                                                                                                revenue
                                                                                                                                                                                                                                                                                                                ruling
                                                                                                                                                                                                                                                                                                                has
                                                                                                                                                                                                                                                                                                                been
                                                                                                                                                                                                                                                                                                                obtained
                                                                                                                                                                                                                                                                                                                with
                                                                                                                                                                                                                                                                                                                respect
                                                                                                                                                                                                                                                                                                                to
                                                                                                                                                                                                                                                                                                                the
                                                                                                                                                                                                                                                                                                                effects
                                                                                                                                                                                                                                                                                                                of
                                                                                                                                                                                                                                                                                                                this
                                                                                                                                                                                                                                                                                                                transaction
                                                                                                                                                                                                                                                                                                                under
                                                                                                                                                                                                                                                                                                                the
                                                                                                                                                                                                                                                                                                                Code.
                                                                                                                                                                                                                                                                                                                Each
                                                                                                                                                                                                                                                                                                                party
                                                                                                                                                                                                                                                                                                                is
                                                                                                                                                                                                                                                                                                                responsible
                                                                                                                                                                                                                                                                                                                for
                                                                                                                                                                                                                                                                                                                paying
                                                                                                                                                                                                                                                                                                                its
                                                                                                                                                                                                                                                                                                                own
                                                                                                                                                                                                                                                                                                                tax
                                                                                                                                                                                                                                                                                                                liabilities
                                                                                                                                                                                                                                                                                                                in
                                                                                                                                                                                                                                                                                                                connection
                                                                                                                                                                                                                                                                                                                with
                                                                                                                                                                                                                                                                                                                this
                                                                                                                                                                                                                                                                                                                Agreement.

 

		7.6	This
                                                                                                                                                                                                                      agreement
                                                                                                                                                                                                                      may
                                                                                                                                                                                                                      be
                                                                                                                                                                                                                      signed
                                                                                                                                                                                                                      in
                                                                                                                                                                                                                      counterparts,
                                                                                                                                                                                                                      and
                                                                                                                                                                                                                      all
                                                                                                                                                                                                                      scanned
                                                                                                                                                                                                                      or
                                                                                                                                                                                                                      facsimile
                                                                                                                                                                                                                      copies
                                                                                                                                                                                                                      shall
                                                                                                                                                                                                                      be
                                                                                                                                                                                                                      deemed
                                                                                                                                                                                                                      originals
                                                                                                                                                                                                                      for
                                                                                                                                                                                                                      all
                                                                                                                                                                                                                      purposes.

 

		7.7	The
                                                                                                                                                                                                                     parties
                                                                                                                                                                                                                     hereto
                                                                                                                                                                                                                     agree
                                                                                                                                                                                                                     to
                                                                                                                                                                                                                     sign
                                                                                                                                                                                                                     such
                                                                                                                                                                                                                     other
                                                                                                                                                                                                                     documents,
                                                                                                                                                                                                                     do
                                                                                                                                                                                                                     and
                                                                                                                                                                                                                     perform
                                                                                                                                                                                                                     and
                                                                                                                                                                                                                     cause
                                                                                                                                                                                                                     to
                                                                                                                                                                                                                     be
                                                                                                                                                                                                                     done
                                                                                                                                                                                                                     and
                                                                                                                                                                                                                     performed
                                                                                                                                                                                                                     such
                                                                                                                                                                                                                     further
                                                                                                                                                                                                                     and
                                                                                                                                                                                                                     other
                                                                                                                                                                                                                     acts
                                                                                                                                                                                                                     consistent
                                                                                                                                                                                                                     herewith
                                                                                                                                                                                                                     as
                                                                                                                                                                                                                     may
                                                                                                                                                                                                                     be
                                                                                                                                                                                                                     necessary
                                                                                                                                                                                                                     or
                                                                                                                                                                                                                     desirable
                                                                                                                                                                                                                     in
                                                                                                                                                                                                                     order
                                                                                                                                                                                                                     to
                                                                                                                                                                                                                     give
                                                                                                                                                                                                                     full
                                                                                                                                                                                                                     effect
                                                                                                                                                                                                                     to
                                                                                                                                                                                                                     this
                                                                                                                                                                                                                     Agreement.

 

    	- 4 -

    	 

    

 

		7.8	This
                                                                                                                                                                                                                Agreement
                                                                                                                                                                                                                constitutes
                                                                                                                                                                                                                the
                                                                                                                                                                                                                entire
                                                                                                                                                                                                                agreement
                                                                                                                                                                                                                between
                                                                                                                                                                                                                the
                                                                                                                                                                                                                parties
                                                                                                                                                                                                                hereto
                                                                                                                                                                                                                with
                                                                                                                                                                                                                respect
                                                                                                                                                                                                                to
                                                                                                                                                                                                                all
                                                                                                                                                                                                                of
                                                                                                                                                                                                                the
                                                                                                                                                                                                                matters
                                                                                                                                                                                                                herein
                                                                                                                                                                                                                and
                                                                                                                                                                                                                its
                                                                                                                                                                                                                execution
                                                                                                                                                                                                                has
                                                                                                                                                                                                                not
                                                                                                                                                                                                                been
                                                                                                                                                                                                                induced
                                                                                                                                                                                                                by,
                                                                                                                                                                                                                nor
                                                                                                                                                                                                                do
                                                                                                                                                                                                                any
                                                                                                                                                                                                                of
                                                                                                                                                                                                                the
                                                                                                                                                                                                                parties
                                                                                                                                                                                                                hereto
                                                                                                                                                                                                                rely
                                                                                                                                                                                                                upon
                                                                                                                                                                                                                or
                                                                                                                                                                                                                regard
                                                                                                                                                                                                                as
                                                                                                                                                                                                                material,
                                                                                                                                                                                                                any
                                                                                                                                                                                                                representations
                                                                                                                                                                                                                or
                                                                                                                                                                                                                writing
                                                                                                                                                                                                                whatsoever
                                                                                                                                                                                                                not
                                                                                                                                                                                                                incorporated
                                                                                                                                                                                                                herein
                                                                                                                                                                                                                and
                                                                                                                                                                                                                made
                                                                                                                                                                                                                a
                                                                                                                                                                                                                part
                                                                                                                                                                                                                hereof.

 

	 	 	WOWIO, Inc.
	 	 	 
	 	/s/
    Roger Mincheff	 	 	/s/
    Brian Altounian
	By:	Roger Mincheff	 	By:	Brian Altounian
	 	 	 	Its:	Chief Executive Officer

 

    	- 5 -

    	 

    

 

ASSIGNMENT

 

This
Assignment Agreement (“Agreement”) is entered into as of December 12, 2012, by and between WOWIO, Inc. (“Assignor”)
and Roger Mincheff (“Assignee”).

 

Reference
is made to the following intellectual property (“IP”):

 

Big Trouble
in Little China

Court,
The

Cousins
Club

Hip Hop
Chronicles

Hollow
Mark Husk

Little
Sonny Bunny

State
of Ward Proximity Effect 

Trail,
The

Wight
& Associates

 

FOR
GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of which are hereby acknowledged, and subject to the terms and conditions
in the attached Purchase Agreement between the parties of the same date, Assignor and Assignee hereby agree as follows:

 

1. Assignor
hereby grants and assigns to Assignee, its successors, licensees and assigns, all of Assignor’s right, title and interest
in and to the IP, including any and all underlying agreements related to the IP (“Underlying Agreements”). [What are
the “Underlying Agreements?”

 

2. Assignee hereby agrees to carry out and faithfully perform each and all of the terms, covenants, conditions and other provision
contained in the Underlying Agreements required to be kept and performed subsequent to the date thereof under and by virtue of
the Underlying Agreements.

 

3. Assignor represents and warrants that it has performed and has not breached any of its obligations which have accrued to the date
hereof under the Underlying Agreements, and all sums which have accrued and are payable pursuant to the provisions of the Underlying
Agreement have been paid by Assignor.

 

4. Assignee shall indemnify and otherwise hold Assignor harmless from and against any and all damages, claims, demands, liabilities
or expenses (including reasonable attorneys’ fees) which Assignor may suffer or incur arising out of or resulting from any
breach of Assignee’s representations, warranties or agreements hereunder or by Assignee’s failure to keep and perform
the obligations and duties assumed by Assignee hereunder or that were in existence at the time of the original assignment from
Assignee. Assignor shall indemnify and otherwise hold Assignee harmless from and against any and all damages, claims, demands,
liabilities or expenses (including reasonable attorneys’ fees) which Assignee may suffer or incur arising out of or resulting
of or any breach of Assignor’s representations, warranties or agreements hereunder.

 

    	- 6 -

    	 

    

 

5. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and
assigns.

 

6. This Agreement shall be governed by and construed in accordance with the laws of the State of California applicable to contracts
wholly negotiated, executed and to be performed therein.

 

7. This Agreement includes the entire understanding of the parties hereto and may not be modified except in a written instrument
signed by the parties hereto.

 

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

 

	WOWIO,
    Inc.	 
	 	 	 
	By:	/s/
    Brian Altounian	 
	Name:	Brian
    Altounian	 
	Its:	Chief
    Executive Officer	 
	 	 	 
	By:	/s/
    Roger Mincheff	 
	Name:	Roger
    Mincheff	 

 

    	- 7 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00222-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00222-of-00352.parquet"}]]