Document:

EX-4.3

Form of Registration Rights Agreement

This Registration Rights Agreement (the “Agreement”) is made and entered into to be
effective as of the      day of      , 2007 (the “Effective Date”) between Digital Lifestyles Group
Inc., a Delaware corporation (the “Company”), and      (the “Holder”).

R e c i t a l s:

A. The Holder has loaned, or expects to loan, to the Company an aggregate principal amount of
$     evidenced by a convertible promissory note executed in favor of Holder by the Company
(the “Note”) which is convertible, at the option of the Holder, into shares of the Common Stock of
the Company in the method prescribed in the Note.

B. In connection with the Note and as additional consideration, the Company has agreed to
provide Holder a warrant(s) (the “Warrant”) to purchase up to      shares of the Company’s
Common Stock (as defined below) to Holder.

C. The Company and Holder desire to set forth the registration rights to be granted by the
Company to the Holder.

Now, Therefore, in consideration of the mutual promises, representations, warranties,
covenants, and conditions set forth herein and in the Note and Warrant, the parties mutually agree
as follows:

A g r e e m e n t:

1. Certain Definitions. As used in this Agreement, the following terms shall have the
following respective meanings:

“Approved Market” means the Nasdaq National Market, the New York Stock Exchange, Inc.,
or the American Stock Exchange, Inc.

“Business Day” means any day of the year, other than a Saturday, Sunday, or other day
on which the Commission is required or authorized to close.

“Certificate of Incorporation” means the then current and effective Certificate of
Incorporation of the Company as filed with the Secretary of State of the State of Delaware, as the
same may be amended from time to time.

“Closing Date” means      , 200     , or such other time as is mutually agreed between
the Company and the Holder for the closing of the transaction referred to in Recital A and B above.

“Commission” means the Securities and Exchange Commission or any other federal agency
at the time administering the Securities Act.

“Common Stock” means the common stock, par value $0.03 per share, of the Company and
any and all shares of capital stock or other equity securities of: (i) the Company which are added
to or exchanged or substituted for the Common Stock by reason of the declaration of any stock
dividend or stock split, the issuance of any distribution or the reclassification, readjustment,
recapitalization or other such modification of the capital structure of the Company; and (ii) any
other corporation, now or hereafter organized under the laws of any state or other governmental
authority, with which the Company is merged, which results from any consolidation or reorganization
to which the Company is a party, or to which is sold all or substantially all of the shares or
assets of the Company, if immediately after such merger, consolidation, reorganization or sale, the
Company or the stockholders of the Company own equity securities having in the aggregate more than
50% of the total voting power of such other corporation.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the Commission promulgated thereunder.

“Family Member” means (a) with respect to any individual, such individual’s spouse,
any descendants (whether natural or adopted), any trust all of the beneficial interests of which
are owned by any of such individuals or by any of such individuals together with any organization
described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, the estate of any
such individual, and any corporation, association, partnership or limited liability company all of
the equity interests of which are owned by those above described individuals, trusts or
organizations and (b) with respect to any trust, the owners of the beneficial interests of such
trust.

“Form S-1” means such form under the Securities Act as in effect on the date hereof or
any registration form under the Securities Act subsequently adopted by the Commission, which
permits inclusion or incorporation of substantial information by reference to other documents filed
by the Company with the Commission.

“Holder” means each Holder or any of his, her or its respective successors and
Permitted Assigns who acquire rights in accordance with this Agreement with respect to the
Registrable Securities directly or indirectly from a Holder, including from any Permitted Assignee.

“Inspector” means any attorney, accountant, or other agent retained by a Holder for
the purposes provided in Section 4(i).

“Permitted Assignee” means (a) with respect to a partnership, its partners or former
partners in accordance with their partnership interests, (b) with respect to a corporation, its
shareholders in accordance with their interest in the corporation, (c) with respect to a limited
liability company, its members or former members in accordance with their interest in the limited
liability company, (d) with respect to an individual party, any Family Member of such party, (e) an
entity that is controlled by, controls, or is under common control with a transferor, or (f) a
party to this Agreement.

The terms “register,” “registered,” and “registration” refers to a
registration effected by preparing and filing a registration statement in compliance with the
Securities Act, and the declaration or ordering of the effectiveness of such registration
statement.

“Registrable Securities” means shares of Common Stock issued to the Holder pursuant to
the Note or issued or issuable pursuant to the Warrant, excluding (i) any Registrable
Securities that have been publicly sold or may be sold immediately without registration under the
Securities Act either pursuant to Rule 144 of the Securities Act or otherwise; (ii) any Registrable
Securities sold by a person in a transaction pursuant to a registration statement filed under the
Securities Act or (iii) any Registrable Securities that are at the time subject to an effective
registration statement under the Securities Act.

“Registration Default Date” means the date which is six (6) months following the
Closing Date; provided, however, if the Registration Statement is subject to review by the SEC
staff the Registration Default Date shall be the date which is ten (10) months following the
Closing Date.

“Registration Default Period” means the period following the Registration Default Date
during which any Registration Event occurs and is continuing.

“Registration Event” means the occurrence of any of the following events:

(a) the Company fails to file with the SEC the Registration Statement on or before the
date by which the Company is required to file the Registration Statement pursuant to
Section 3,

(b) the Registration Statement covering Registrable Securities is not declared
effective by the Commission on or before the Registration Default Date,

(c) after the SEC Effective Date, sales cannot be made pursuant to the Registration
Statement for any reason (including without limitation by reason of a stop order, or the
Company’s failure to update the Registration Statement) but except as excused pursuant to
Section 3, or

(d) the Common Stock generally or the Registrable Securities specifically are not
listed or included for quotation on an Approved Market, or trading of the Common Stock is
suspended or halted on the Approved Market, which at the time constitutes the principal
market for the Common Stock.

“Registration Statement” means the registration statement required to be filed by the
Company pursuant to Section 3.

“Securities Act” means the Securities Act of 1933, as amended, or any similar federal
statute promulgated in replacement thereof, and the rules and regulations of the Commission
thereunder, all as the same shall be in effect at the time.

“SEC Effective Date” means the date the Registration Statement is declared effective
by the Commission.

“S-1 Blackout Period” means, with respect to a registration, a period in each case
commencing on the day immediately after the Company notifies the Holder that they are required,
pursuant to Section 4(f), to suspend offers and sales of Registrable Securities during which the
Company, in the good faith judgment of its Board of Directors, determines (because of the existence
of, or in anticipation of, any acquisition, financing activity, or other transaction involving the
Company, or the unavailability for reasons beyond the Company’s control of any required financial
statements, disclosure of information which is in its best interest not to publicly disclose, or
any other event or condition of similar significance to the Company) that the registration and
distribution of the Registrable Securities to be covered by such registration statement, if any,
would be seriously detrimental to the Company and its shareholders and ending on the earlier of (1)
the date upon which the material non-public information commencing the S-1 Blackout Period is
disclosed to the public or ceases to be material and (2) such time as the Company notifies the
selling Holders that the Company will no longer delay such filing of the Registration Statement,
recommence taking steps to make such Registration Statement effective, or allow sales pursuant to
such Registration Statement to resume; provided, however, that the Company shall limit its use of
S-1 Blackout Periods, in the aggregate, to 45 Trading Days in any 12-month period.

“Trading Day” means a day on whichever (a) the national securities exchange, (b) the
Nasdaq Stock Market, or (c) such other securities market, in any such case which at the time
constitutes the principal securities market for the Common Stock, is open for general trading of
securities.

2. Term. This Agreement shall continue in full force and effect for a period of one
(1) year from the Effective Date or for so long as an applicable registration statement has not
been declared effective by the Commission.

3. Registration on Form S-1.

(a) The Company shall use its commercially reasonable best efforts within six (6) months
after the Closing Date (the “Registration Filing Date”) to file with the Commission a registration
statement on Form S-1 relating to the resale by the Holders of all of the Registrable Securities;
provided, however, that the Company shall not be obligated to effect any such registration,
qualification or compliance pursuant to this Section 3, or keep such registration effective
pursuant to Section 4: (i) in any particular jurisdiction in which the Company would be required to
qualify to do business as a foreign corporation or as a dealer in securities under the securities
or blue sky laws of such jurisdiction or to execute a general consent to service of process in
effecting such registration, qualification or compliance, in each case where it has not already
done so; or (ii) during any S-1 Blackout Period.

(b) Demand Registration. Notwithstanding anything herein to the contrary, and in addition to
its obligations under Section 3(a) hereinabove, the Company shall:

(i) after receipt of a written request from the Holder requesting that the Company
effect a registration (a “Demand Registration”) under the Securities Act covering all or
part of the Registrable Securities held by such Holder which specifies the intended method
or methods of disposition thereof, as expeditiously as is possible, but in any event no
later than 90 days after receipt of a written request for a Demand Registration, file with
the SEC and use its reasonable best efforts to cause to be declared effective as soon as
reasonably practicable, a registration statement (a “Demand Registration Statement”)
relating to all shares of Registrable Securities which the Company has been so requested to
register by the Holder for sale, to the extent required to permit the disposition (in
accordance with the intended method or methods thereof, as aforesaid) of the Registrable
Securities so registered.

(ii) If the Company is eligible to use Form S-3, any Demand Registration Statement may
be required by the Holder to be in an appropriate form under the Securities Act relating to
any or all of the Registrable Securities in accordance with the methods and distribution
set forth in the Form S-3 and Rule 415 under the Securities Act (the “Shelf Registration”).
Any such demand to file a Form S-3 shall require the use of one Demand Registration. The
Holder shall be entitled to an aggregate of two registrations of Registrable Securities.

(iii) The Company shall not be required to effect a registration pursuant to this
Section 3:

(1) pursuant to a written opinion of counsel for the Company, all the
Registrable Securities can be sold pursuant to Rule 144 in any three month period
(such date being the “144 Sale Date”); or

(2) during the period starting with the date 45 days prior to the Company’s
estimated date of filing of, and ending on the date 90 days immediately following
the effective date of, any registration statement pertaining to an underwritten
public offering of newly issued securities of the Company with respect to which the
Holder has the right to request inclusion of Registrable Securities pursuant to
Section 3, provided that the Company is actively employing in good faith
commercially reasonable efforts to cause such registration to become effective.

(c) Piggy-Back Registration.

(i) If (but without any obligation to do so) the Company proposes to register
(including for this purpose a registration effected by the Company for shareholders other
than the Holder) any of its stock or other securities under the Securities Act in
connection with the public offering of such securities on any form (other than a
registration statement on Form S-4 or S-8 or any successor form for securities to be
offered in a transaction of the type referred to in Rule 145 under the Securities Act or to
employees of the Company pursuant to any employee benefit plan, respectively) (a
“Piggy-Back Registration”), it will promptly (and in any case at least 45 days before the
initial filing with the SEC of such piggy-back registration statement (the “Piggy-Back
Registration Statement”)) give written notice to each Holder, which notice shall set forth
the intended method of disposition of the securities proposed to be registered by the
Company. The notice shall offer to include in such filing the aggregate number of shares of
Registrable Securities as the Holder may request. If the Holder desires to have its
Registrable Securities registered under this Section 3, such Holder shall advise the
Company in writing within 20 days after the date of receipt of such offer from the Company,
setting forth the amount of such Registrable Securities for which registration is
requested. The Company shall thereupon include in such filing the number or amount of
Registrable Securities for which registration is so requested, subject to provisions of
Section 3 below, and shall use its reasonable best efforts to effect registration of such
Registrable Securities under the Securities Act; provided, however, that the Company shall
not be obligated to include any Registrable Securities in any such registration,
qualification or compliance, pursuant to this Section 3 after the 144 Sale Date.

(ii) The Company shall have the right to terminate or withdraw any Piggy-Back
Registration initiated by it under this Section 3 prior to the effectiveness of such
Piggy-Back Registration whether or not the Holder has elected to include securities in such
Piggy-Back Registration.

(iii) If the Piggy-Back Registration relates to an underwritten public offering and
the managing underwriter of such proposed public offering advises in writing that, in its
opinion, the amount of Registrable Securities requested to be included in the Piggy-Back
Registration then, in the event that the Company initiated the Piggy-Back Registration, the
Company shall include in such Piggy-Back Registration first, the securities the Company
proposes to register and second, the securities of all other selling security holders,
including the Holder, to be included in such Piggy-Back Registration in an amount which
together with the securities the Company proposes to register to be allocated among such
selling security holders on a pro rata basis (based on the number of securities of the
Company held by each such selling security holder).

4. Registration Procedures. In the case of each registration, qualification, or
compliance effected by the Company pursuant to Section 3 hereof, the Company will keep Holder
including securities therein reasonably advised in writing as to the initiation of each
registration, qualification, and compliance and as to the completion thereof. At its expense with
respect to any registration statement filed pursuant to Section 3, the Company will use its
commercially reasonable best efforts to:

(a) prepare and file with the Commission with respect to such Registrable Securities, a
registration statement on Form S-1, and use its commercially reasonable efforts to cause such
registration statement to become and remain effective at least for a period ending with the first
to occur of (i) the sale of all Registrable Securities covered by the registration statement, (ii)
the availability under Rule 144 for the Holder to immediately, freely resell without restriction
all Registrable Securities covered by the registration statement, and (iii) one year after a
registration statement filed pursuant to Section 3 is declared effective by the Commission (in
either case, the “Effectiveness Period”); provided, however, if at the end of such one-year period,
any Holder is not able to immediately, freely resell all Registrable Securities that it owns, the
Effectiveness Period shall continue until terminated pursuant to clause (i) or (ii); provided that
no later than five business days before filing with the Commission a registration statement or
prospectus or any amendments or supplements thereto, including documents incorporated by reference
after the initial filing of any registration statement, the Company shall notify Holder of the
Registrable Securities covered by such registration statement of any stop order issued or
threatened by the Commission and take all reasonable actions required to prevent the entry of such
stop order or to remove it if entered;

(b) if a registration statement is subject to review by the Commission, promptly respond to
all comments and diligently pursue resolution of any comments to the satisfaction of the
Commission;

(c) prepare and file with the Commission such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be necessary to keep such
registration statement effective during the Effectiveness Period (but in any event at least until
expiration of the 90-day period referred to in Section 4(3) of the Securities Act and Rule 174, or
any successor thereto, thereunder, if applicable), and comply with the provisions of the Securities
Act with respect to the disposition of all securities covered by such registration statement during
such period in accordance with the intended method(s) of disposition by the sellers thereof set
forth in such registration statement;

(d) furnish, without charge, to each Holder of Registrable Securities covered by such
registration statement (i) a reasonable number of copies of such registration statement (including
any exhibits thereto other than exhibits incorporated by reference), each amendment and supplement
thereto as such Holder may request, (ii) such number of copies of the prospectus included in such
registration statement (including each preliminary prospectus and any other prospectus filed under
Rule 424 under the Securities Act) as such Holder may request, in conformity with the requirements
of the Securities Act, and (iii) such other documents as such Holder may reasonably request in
order to facilitate the disposition of the Registrable Securities owned by such Holder, but only
during the Effectiveness Period;

(e) use its commercially reasonable best efforts to register or qualify such Registrable
Securities under such other applicable securities or blue sky laws of such jurisdictions as any
Holder of Registrable Securities covered by such registration statement reasonably requests as may
be necessary for the marketability of the Registrable Securities (such request to be made by the
time the applicable registration statement is deemed effective by the Commission) and do any and
all other acts and things which may be reasonably necessary or advisable to enable such Holder to
consummate the disposition in such jurisdictions of the Registrable Securities owned by such
Holder; provided that the Company shall not be required to (i) qualify generally to do
business in any jurisdiction where it would not otherwise be required to qualify but for this
paragraph (e), (ii) subject itself to taxation in any such jurisdiction, or (iii) consent to
general service of process in any such jurisdiction;

(f) notify each Holder of such Registrable Securities at any time when a prospectus relating
thereto is required to be delivered under the Securities Act of the happening of any event which
comes to the Company’s attention if as a result of such event the prospectus included in such
registration statement contains an untrue statement of a material fact or omits to state any
material fact required to be stated therein or necessary to make the statements therein not
misleading and the Company shall promptly prepare and furnish to such Holder a supplement or
amendment to such prospectus (or prepare and file appropriate reports under the Exchange Act) so
that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus
shall not contain an untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein not misleading, unless
suspension of the use of such prospectus otherwise is authorized herein or in the event of an S-1
Blackout Period, in which case no supplement or amendment need be furnished (or Exchange Act filing
made) until the termination of such suspension or S-1 Blackout Period;

(g) comply, and continue to comply during the period that such registration statement is
effective under the Securities Act, in all material respects with the Securities Act and the
Exchange Act and with all applicable rules and regulations of the Commission with respect to the
disposition of all securities covered by such registration statement, and make available to its
security holders, as soon as reasonably practicable, an earnings statement covering the period of
at least twelve (12) months, but not more than eighteen (18) months, beginning with the first full
calendar month after the effective date of such registration statement, which earnings statement
shall satisfy the provisions of Section 11(a) of the Securities Act.

(h) as promptly as practicable after becoming aware of such event, notify each Holder of
Registrable Securities being offered or sold pursuant to the Registration Statement of the issuance
by the Commission of any stop order or other suspension of effectiveness of the Registration
Statement at the earliest possible time;

(i) make available for inspection by any Holder and any Inspector retained by such Holder, at
such Holder’s sole expense, all Records as shall be reasonably necessary to enable such Holder to
exercise its due diligence responsibility, and cause the Company’s officers, directors, and
employees to supply all information which such Holder or any Inspector may reasonably request for
purposes of such due diligence; provided, however, that such Holder shall hold in confidence and
shall not make any disclosure of any record or other information which the Company determines in
good faith to be confidential, and of which determination such Holder is so notified at the time
such Holder receives such information, unless (i) the disclosure of such record is necessary to
avoid or correct a misstatement or omission in the Registration Statement and a reasonable time
prior to such disclosure the Holder shall have informed the Company of the need to so correct such
misstatement or omission and the Company shall have failed to correct such misstatement of
omission, (ii) the release of such record is ordered pursuant to a subpoena or other order from a
court or governmental body of competent jurisdiction or (iii) the information in such record has
been made generally available to the public other than by disclosure in violation of this or any
other agreement. The Company shall not be required to disclose any confidential information in
such records to any Inspector until and unless such Inspector shall have entered into a
confidentiality agreement with the Company with respect thereto, substantially in the form of this
Section 4(i), which agreement shall permit such Inspector to disclose records to the Holder who has
retained such Inspector. Each Holder agrees that it shall, upon learning that disclosure of such
Records is sought in or by a court or governmental body of competent jurisdiction or through other
means, give prompt notice to the Company and allow the Company, at the Company’s expense, to
undertake appropriate action to prevent disclosure of, or to obtain a protective order for, the
records deemed confidential. The Company shall hold in confidence and shall not make any
disclosure of information concerning an Holder provided to the Company pursuant to this Agreement
unless (i) disclosure of such information is necessary to comply with federal or state securities
laws, (ii) disclosure of such information is necessary to avoid or correct a misstatement or
omission in the Registration Statement, (iii) release of such information is ordered pursuant to a
subpoena or other order from a court or governmental body of competent jurisdiction, or (iv) such
information has been made generally available to the public other than by disclosure in violation
of this or any other agreement. The Company agrees that it shall, upon learning that disclosure of
such information concerning a Holder is sought in or by a court or governmental body of competent
jurisdiction or through other means, give prompt notice to such Holder and allow such Holder, at
such Holder’s expense, to undertake appropriate action to prevent disclosure of, or to obtain a
protective order for, such information;

(j) use its best efforts to cause all the Registrable Securities covered by the Registration
Statement to be quoted on the Over-the-Counter Bulletin Board or Pink Sheets Market or such other
principal securities market on which securities of the same class or series issued by the Company
are then listed or traded;

(k) provide a transfer agent and registrar, which may be a single entity, for the Registrable
Securities at all times;

(l) cooperate with the Holder of Registrable Securities being offered pursuant to the
Registration Statement to facilitate the timely preparation and delivery of certificates (not
bearing any restrictive legends) representing Registrable Securities to be offered pursuant to the
Registration Statement and enable such certificates to be in such denominations or amounts as the
Holders may reasonably request and registered in such names as the Holders may request;

(m) take all other reasonable actions necessary to expedite and facilitate disposition by the
Holders of the Registrable Securities pursuant to the Registration Statement.

5. Suspension of Offers and Sales. Each Holder of Registrable Securities
agrees that, upon receipt of any notice from the Company of the happening of any event of
the kind described in Section 4(f) hereof or of the commencement of an S-1 Blackout Period,
such Holder shall discontinue disposition of Registrable Securities pursuant to the
registration statement covering such Registrable Securities until such Holder’s receipt of
the copies of the supplemented or amended prospectus contemplated by Section 4(f) hereof or
notice of the end of the S-1 Blackout Period, and, if so directed by the Company, such
Holder shall deliver to the Company (at the Company’s expense) all copies (including,
without limitation, any and all drafts), other than permanent file copies, then in such
Holder’s possession, of the prospectus covering such Registrable Securities current at the
time of receipt of such notice. In the event the Company shall give any such notice, the
period mentioned in Section 4(a)(iii) hereof shall be extended by the greater of (i) ten
business days or (ii) the number of days during the period from and including the date of
the giving of such notice pursuant to Section 4(f) hereof to and including the date when
each Holder of Registrable Securities covered by such registration statement shall have
received the copies of the supplemented or amended prospectus contemplated by Section 4(f)
hereof.

6. Registration Expenses. The Company shall pay all expenses in connection with any
registration, including, without limitation, all registration, filing, stock exchange and NASD
fees, printing expenses, all fees and expenses of complying with securities or blue sky laws, the
fees and disbursements of counsel for the Company and of its independent accountants. Except as
provided above in this Section 6 and Section 9, the Company shall not be responsible for the
expenses of any attorney or other advisor employed by a Holder of Registrable Securities.

7. Assignment of Rights. No Holder may assign its rights under this Agreement to any
party without the prior written consent of the Company; provided, however, that a Holder may assign
its rights under this Agreement without such restrictions to a Permitted Assignee as long as (a)
such transfer or assignment is effected in accordance with applicable securities laws; (b) such
transferee or assignee agrees in writing to become subject to the terms of this Agreement; and (c)
the Company is given written notice by such Holder of such transfer or assignment, stating the name
and address of the transferee or assignee and identifying the Registrable Securities with respect
to which such rights are being transferred or assigned.

8. Information by Holder. The Holder or Holders of Registrable Securities included in
any registration shall furnish to the Company such information regarding such Holder or Holders and
the distribution proposed by such Holder or Holders as the Company may request in writing.

9. Indemnification.

(a) In the event of the offer and sale of Registrable Securities held by Holders under the
Securities Act, the Company shall, and hereby does, indemnify and hold harmless, to the fullest
extent permitted by law, each Holder, its directors, officers, partners, each other person who
participates as an underwriter in the offering or sale of such securities, and each other person,
if any, who controls or is under common control with such Holder or any such underwriter within the
meaning of Section 15 of the Securities Act, against any losses, claims, damages or liabilities,
joint or several, and expenses to which the Holder or any such director, officer, partner or
underwriter or controlling person may become subject under the Securities Act or otherwise, insofar
as such losses, claims, damages, liabilities or expenses (or actions or proceedings, whether
commenced or threatened, in respect thereof) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in any registration statement under which
such shares were registered under the Securities Act, any preliminary prospectus, final prospectus
or summary prospectus contained therein, or any amendment or supplement thereto, or any omission or
alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein in light of the circumstances in which they were made not misleading,
and the Company shall reimburse the Holder, and each such director, officer, partner, underwriter
and controlling person for any legal or any other expenses reasonably incurred by them in
connection with investigating, defending or settling any such loss, claim, damage, liability,
action or proceeding; provided that the Company shall not be liable in any such case (i) to the
extent that any such loss, claim, damage, liability (or action or proceeding in respect thereof) or
expense arises out of or is based upon an untrue statement or alleged untrue statement in or
omission or alleged omission from such registration statement, any such preliminary prospectus,
final prospectus, summary prospectus, amendment or supplement in reliance upon and in conformity
with written information furnished to the Company through an instrument duly executed by or on
behalf of such Holder specifically stating that it is for use in the preparation thereof or (ii) if
the person asserting any such loss, claim, damage, liability (or action or proceeding in respect
thereof) who purchased the Registrable Securities that are the subject thereof did not receive a
copy of an amended preliminary prospectus or the final prospectus (or the final prospectus as
amended or supplemented) at or prior to the written confirmation of the sale of such Registrable
Securities to such person because of the failure of such Holder or underwriter to so provide such
amended preliminary or final prospectus and the untrue statement or alleged untrue statement or
omission or alleged omission of a material fact made in such preliminary prospectus was corrected
in the amended preliminary or final prospectus (or the final prospectus as amended or
supplemented). Such indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of the Holders, or any such director, officer, partner, underwriter or
controlling person and shall survive the transfer of such shares by the Holder.

(b) As a condition to including any Registrable Securities to be offered by a Holder in any
registration statement filed pursuant to this Agreement, each such Holder agrees to be bound by the
terms of this Section 9 and to indemnify and hold harmless, to the fullest extent permitted by law,
the Company, its directors and officers, and each other person, if any, who controls the Company
within the meaning of Section 15 of the Securities Act, against any losses, claims, damages or
liabilities, joint or several, to which the Company or any such director or officer or controlling
person may become subject under the Securities Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions or proceedings, whether commenced or threatened, in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue statement in or
omission or alleged omission from such registration statement, any preliminary prospectus, final
prospectus or summary prospectus contained therein, or any amendment or supplement thereto, if such
statement or alleged statement or omission or alleged omission was made in reliance upon and in
conformity with written information about such Holder as a Holder of the Company furnished to the
Company, and such Holder shall reimburse the Company, and each such director, officer, and
controlling person for any legal or other expenses reasonably incurred by them in connection with
investigating, defending, or settling and such loss, claim, damage, liability, action, or
proceeding; provided, however, that such indemnity agreement found in this Section 8(b) shall in no
event exceed the gross proceeds from the offering received by such Holder. Such indemnity shall
remain in full force and effect, regardless of any investigation made by or on behalf of the
Company or any such director, officer or controlling person and shall survive the transfer by any
Holder of such shares.

(c) Promptly after receipt by an indemnified party of notice of the commencement of any action
or proceeding involving a claim referred to in Section 9(a) or (b) hereof (including any
governmental action), such indemnified party shall, if a claim in respect thereof is to be made
against an indemnifying party, give written notice to the indemnifying party of the commencement of
such action; provided that the failure of any indemnified party to give notice as provided herein
shall not relieve the indemnifying party of its obligations under Section 9(a) or (b) hereof,
except to the extent that the indemnifying party is actually prejudiced by such failure to give
notice. In case any such action is brought against an indemnified party, unless in the reasonable
judgment of counsel to such indemnified party a conflict of interest between such indemnified and
indemnifying parties may exist or the indemnified party may have defenses not available to the
indemnifying party in respect of such claim, the indemnifying party shall be entitled to
participate in and to assume the defense thereof, with counsel reasonably satisfactory to such
indemnified party and, after notice from the indemnifying party to such indemnified party of its
election so to assume the defense thereof, the indemnifying party shall not be liable to such
indemnified party for any legal or other expenses subsequently incurred by the latter in connection
with the defense thereof, unless in such indemnified party’s reasonable judgment a conflict of
interest between such indemnified and indemnifying parties arises in respect of such claim after
the assumption of the defenses thereof or the indemnifying party fails to defend such claim in a
diligent manner, other than reasonable costs of investigation. Neither an indemnified nor an
indemnifying party shall be liable for any settlement of any action or proceeding effected without
its consent. No indemnifying party shall, without the consent of the indemnified party, consent to
entry of any judgment or enter into any settlement, which does not include as an unconditional term
thereof the giving by the claimant or plaintiff to such indemnified party of a release from all
liability in respect of such claim or litigation. Notwithstanding anything to the contrary set
forth herein, and without limiting any of the rights set forth above, in any event any party shall
have the right to retain, at its own expense, counsel with respect to the defense of a claim.

(d) In the event that an indemnifying party does or is not permitted to assume the defense of
an action pursuant to Section 9(c) or in the case of the expense reimbursement obligation set forth
in Section 9(a) and (b), the indemnification required by Section 9(a) and (b) hereof shall be made
by periodic payments of the amount thereof during the course of the investigation or defense, as
and when bills received or expenses, losses, damages, or liabilities are incurred.

(e) If the indemnification provided for in this Section 9 is held by a court of competent
jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim,
damage or expense referred to herein, the indemnifying party, in lieu of indemnifying such
indemnified party hereunder, shall (i) contribute to the amount paid or payable by such indemnified
party as a result of such loss, liability, claim, damage or expense as is appropriate to reflect
the proportionate relative fault of the indemnifying party on the one hand and the indemnified
party on the other (determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or omission relates to information supplied by the indemnifying
party or the indemnified party and the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such untrue statement or omission), or (ii) if the allocation
provided by clause (i) above is not permitted by applicable law or provides a lesser sum to the
indemnified party than the amount hereinafter calculated, not only the proportionate relative fault
of the indemnifying party and the indemnified party, but also the relative benefits received by the
indemnifying party on the one hand and the indemnified party on the other, as well as any other
relevant equitable considerations. No indemnified party guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any indemnifying party who was not guilty of such fraudulent misrepresentation.

(f) Other Indemnification. Indemnification similar to that specified in the preceding
subsections of this Section 9 (with appropriate modifications) shall be given by the Company and
each Holder of Registrable Securities with respect to any required registration or other
qualification of securities under any federal or state law or regulation or governmental authority
other than the Securities Act.

10. Miscellaneous

(a) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Tennessee and the United States of America, both substantive and
remedial. Any judicial proceeding brought against either of the parties to this agreement or any
dispute arising out of this Agreement or any matter related hereto may be brought in the courts of
the State of Tennessee or in the United States District Court for the Middle District of Tennessee
and, by its execution and delivery of this agreement, each party to this Agreement accepts the
jurisdiction of such courts. The foregoing consent to jurisdiction shall not be deemed to confer
rights on any person other than the parties to this Agreement.

(b) Successors and Assigns. Except as otherwise provided herein, the provisions
hereof shall inure to the benefit of, and be binding upon, the successors, Permitted Assigns,
executors and administrators of the parties hereto. In the event the Company merges with, or is
otherwise acquired by, a direct or indirect subsidiary of a publicly traded company, the Company
shall condition the merger or acquisition on the assumption by such parent company of the Company’s
obligations under this Agreement.

(c) Entire Agreement. This Agreement constitutes the full and entire understanding
and agreement between the parties with regard to the subjects hereof.

(d) Notices, etc. All notices or other communications which are required or permitted
under this Agreement shall be in writing and sufficient if delivered by hand, by facsimile
transmission, by registered or certified mail, postage pre-paid, or by courier or overnight
carrier, to the persons at the addresses set forth below (or at such other address as may be
provided hereunder), and shall be deemed to have been delivered as of the date so delivered:

	 	 	 
	If to the Company:

	 	Digital Lifestyles Group, Inc.

1872 West Avenue

Suite 102

Crossville, Tennessee 38555

Attention: Chief Executive Officer
	 
	 	 
	If to the Holder:

	 	

     

     

or at such other address as any party shall have furnished to the other parties in writing.

(e) Delays or Omissions. No delay or omission to exercise any right, power or remedy
accruing to any Holder of any Registrable Securities, upon any breach or default of the Company
under this Agreement, shall impair any such right, power or remedy of such Holder nor shall it be
construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any
similar breach or default thereunder occurring; nor shall any waiver of any single breach or
default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any
waiver, permit, consent or approval of any kind or character on the part of any Holder of any
breach or default under this Agreement, or any waiver on the part of any Holder of any provisions
or conditions of this Agreement, must be in writing and shall be effective only to the extent
specifically set forth in such writing. All remedies, either under this Agreement, or by law or
otherwise afforded to any holder, shall be cumulative and not alternative.

(f) Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be enforceable against the parties actually executing such counterparts, and all of
which together shall constitute one instrument.

(g) Severability. In the case any provision of this Agreement shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining provisions
shall not in any way be affected or impaired thereby.

(h) Amendments. The provisions of this Agreement may be amended at any time and from
time to time, and particular provisions of this Agreement may be waived, with and only with an
agreement or consent in writing signed by the Company and by the Holder of Registrable Securities
as of the date of such amendment or waiver.

(i) Limitation on Subsequent Registration Rights. After the date of this Agreement,
the Company shall not, without the prior written consent of the Holder enter into any agreement
with any holder or prospective holder of any securities of the Company that would grant such holder
registration rights senior to those granted to the Holders hereunder.

[Remainder of page intentionally left blank. Signature page to follow.]

1

This Registration Rights Agreement is hereby executed as of the date first above written.

COMPANY:

DIGITAL LIFESTYLES GROUP, INC.

By:

Name:

Its: Chief Executive Officer

HOLDER:

     

2EX-10.1

April 23, 2007

Mr. L.E. Smith

Chairman & Chief Executive Officer

Digital Lifestyles Group, Inc. and affiliates

1872 West Avenue, Suite 102

Crossville, TN 38555

Re: Side Letter

Dear Mr. Smith:

Reference is hereby made to that certain Security Agreement dated as of November 29, 2004 by
and among Digital Lifestyles Group, Inc., a Delaware corporation (“DLFG”), hip-e Operating Company,
Inc., a Delaware corporation, Northgate Operating Company, Inc., a California corporation and such
other subsidiaries and/or affiliates of DLFG named in that certain Security Agreement or which
thereafter became a party thereto (collectively, the “Company”) and Laurus Master Fund, Ltd.
(“Laurus”) (the “Security Agreement”). Capitalized terms used but not defined herein shall have
the meanings ascribed them in the Security Agreement.

As of the date hereof, the Company owes Laurus principal pursuant to the terms of the Security
Agreement and the Ancillary Agreements referred to therein in the aggregate amount of $1,900,000
(the “Outstanding Amount”). On the Settlement Effectiveness Date (as defined below), Laurus hereby
agrees to deem the Outstanding Amount to be satisfied and repaid in full and to cancel (and to
remit evidence of such cancellation to the Company) the Security Agreement and Ancillary Agreements
(and to release any UCC filings of record); provided that obligations pursuant to indemnification
and other provisions of the Security Agreement and Ancillary Agreements which by their terms
survive the payment of the Outstanding Amount shall so survive. The “Settlement Effectiveness
Date” shall mean the first date upon which each of the following conditions shall be satisfied: (i)
each of DLFG and Laurus shall have executed and DLFG shall have delivered to Laurus its respective
counterpart to this Side Letter (such date of execution and delivery by DLFG to Laurus, the
“Closing Date”); (ii) on or prior to the Closing Date, DLFG shall have paid $50,000 to Laurus via
wire transfer in immediately available funds (the “Initial Payment”) (see Exhibit A for wiring
instruction information); (iii) on or before August 1, 2007, DLFG shall have paid to Laurus via
wire transfer in immediately available funds an additional $150,000; (iv) on the Closing Date,
DLFG shall have issued to Laurus and Laurus shall have received a duly executed seven year warrant
to purchase 1,000,000 shares of the common stock of the Company with an exercise price of $0.40 per
share substantially in the form attached hereto as Exhibit B, (the “Additional Warrant”) and (v)
the Exercise Price set forth in the previously issued Warrant as part of the Ancillary Agreements
is hereby amended to $0.40.

This letter may not be amended or waived except by an instrument in writing signed by the
Company and Laurus. This letter may be executed in any number of counterparts, each of which shall
be an original and all of which, when taken together, shall constitute one agreement. Delivery of
an executed signature page of this letter by facsimile transmission shall be effective as delivery
of a manually executed counterpart hereof or thereof, as the case may be. This letter shall be
governed by, and construed in accordance with, the laws of the State of New York. This letter sets
forth the entire agreement between the parties hereto as to the matters set forth herein and
supersede all prior communications, written or oral, with respect to the matters herein.

IN WITNESS WHEREOF, each of the parties hereto has executed this Side Letter or has caused
this Side Letter to be executed on its behalf by a representative duly authorized, all as of the
date first above set forth.

LAURUS MASTER FUND, LTD.

By: /s/ David Grin     

Name: David Grin

Title: Director

DIGITAL LIFESTYLES GROUP, INC.

By:_/s/L.E.Smith     

Name: L.E. Smith

Title: Chief Executive Officer

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