Document:

10.51 Robert L. Katz Letter, dated December 20, 2012

Mr. Robert Katz                        December 20, 2012
[Redacted]
Dear Bobby:
As previously communicated, the purpose of this letter is to amend that portion of your employment agreement related to your entitlement to severance payments from the company under certain conditions purely as it relates to the timing of any such payments in order to ensure compliance with Section 409A of the Internal Revenue Code. The following language shall be added as an amendment to your agreement. 

“The severance payable under your employment agreement upon your involuntary termination of employment with the Company will be paid in a lump sum within 60 days of your termination of employment, provided that you have executed a release within 45 days of your termination of employment, and, provided further, that, if that 60-day period spans two calendar years, the payment will be made in the second of those calendar years.  Notwithstanding the foregoing, if for any reason the Company is unable to make the payment by March 15 of the year following the year of your termination of employment, the payment will be made 6 months following the date of your termination of employment, if it is determined that such delayed payment is required under Section 409A of the Internal Revenue Code.”

Please sign and date below indicating your consent to the above amendment and return to Jeff Blair prior to January 1, 2013. Thank you. 
Sincerely,

/s/ Evan Turtz

Evan Turtz
Vice President and Deputy General Counsel – Labor & Employment 

I hereby agree to the aforementioned amendment to my employment agreement dated October 5, 2010.

/s/ Robert Katz

Robert Katz

December 20, 2012

GESDMS/6528223.110.53 Marcia J. Avedon Letter, dated December 20, 2012

Ms. Marcia Avedon                        December 20, 2012
[Redacted]
Dear Marcia:
As previously communicated, the purpose of this letter is to amend that portion of your employment agreement related to your entitlement to severance payments from the company under certain conditions purely as it relates to the timing of any such payments in order to ensure compliance with Section 409A of the Internal Revenue Code. The following language shall be added as an amendment to your agreement. 

“The severance payable under your employment agreement upon your involuntary termination of employment with the Company will be paid in a lump sum within 60 days of your termination of employment, provided that you have executed a release within 45 days of your termination of employment, and, provided further, that, if that 60-day period spans two calendar years, the payment will be made in the second of those calendar years.  Notwithstanding the foregoing, if for any reason the Company is unable to make the payment by March 15 of the year following the year of your termination of employment, the payment will be made 6 months following the date of your termination of employment, if it is determined that such delayed payment is required under Section 409A of the Internal Revenue Code.”

Please sign and date below indicating your consent to the above amendment and return to Jeff Blair prior to January 1, 2013. Thank you. 
Sincerely,

/s/ Evan Turtz

Evan Turtz
Vice President and Deputy General Counsel – Labor & Employment 

I hereby agree to the aforementioned amendment to my employment agreement dated January 11, 2007.

/s/ Marcia Avedon

Marcia Avedon

December 20, 2012

GESDMS/6528223.1Filed by Avantafile.com - Level20 Inc. - Exhibit 10.1

 

     

ASSET
PURCHASE AGREEMENT

        This
Asset Purchase Agreement (this “Agreement”) is made as of October 17,
2012, by and between Raptify Marketing Systems Ltd., an Alberta corporation (“Seller”)
with offices at 735 - 525 Seymour Street, Vancouver,
BC, Canada, V6B 3H7 and Level20 Inc., a Nevada
corporation, with offices at 228 Hamilton Avenue, 3rd Floor, Palo Alto, CA
94301, or its assigns (“Buyer”). In this Agreement, (i) the Buyer and
the Seller are sometimes called the “Parties,” and (ii) the Buyer's acquisition
of the Assets is sometimes called the “Transaction.”  Capitalized terms that
are not defined elsewhere in this Agreement are defined in Section 12. 

        The Seller desires to
sell to Buyer, and Buyer desires to purchase from the Seller, for the
consideration and on the terms set forth in this Agreement. In consideration of
the mutual covenants of the parties set forth in this Agreement and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties hereto agree as follows:

1.     SALE AND TRANSFER OF
ASSETS; CLOSING

        1.1     ASSETS AND
ASSUMED LIABILITIES

                  (a)   Subject
to the terms and conditions of this Agreement, at the Closing the Seller will
sell, transfer, and convey to Buyer, free and clear of any Encumbrances, and
Buyer will purchase from the Seller, all right, title and interest of Seller in
those assets of Seller as follows:

                         (i) all
items described in Schedule 1.1(a);

                         (ii) INTENTIONALLY
OMITTED;

                         (iii) all
Governmental Authorizations and all pending applications therefor or renewals
thereof, in each case to the extent transferable to Buyer;

                         (iv) all
data and Records related to the Assets of Seller, including client and customer
lists and Records, referral sources, research and development reports  and
Records, production reports and Records, service and warranty Records,
equipment logs, operating guides and manuals, financial and accounting Records,
creative materials, advertising materials, promotional materials, studies,
reports, correspondence and other similar documents and Records and, subject to
Legal Requirements, copies of all personnel Records and other Records;

                         (v) all
of the intangible rights and property of Seller relating to the Assets,
including Intellectual Property Rights listed in Schedule 2.6(a), and the Software
and Patent as listed in Schedule 2.6(c);

                         (vi) all
insurance benefits, including rights and proceeds, arising from or relating to
the Assets; and

                         (vii) all
claims of Seller against third parties relating to the Assets, whether choate
or inchoate, known or unknown, contingent or noncontingent, including all such
claims listed in Schedule 2.4; 

1

 
        All of the property and
assets to be transferred to Buyer hereunder are herein referred to collectively
as the "Assets.".

                  (b)   Subject
to the terms and conditions of this Agreement, at the Closing the Buyer will not
assume any of the Seller’s liabilities and obligations, except to the extent
such liabilities and obligations are specifically set forth in Schedule 1.1(b)
hereto (collectively, the “Assumed Obligations”). Notwithstanding anything to
the contrary above, Buyer will not assume any liabilities or obligations of the
Seller if the existence of such liabilities or obligations either are, or give
rise to or result from, facts or circumstances that constitute a
misrepresentation or breach of the representations and warranties in this
Agreement. The Assumed Obligations are the only liabilities and obligations of
the Seller that Buyer will assume in connection with the Contemplated
Transactions.  

        1.2     PURCHASE PRICE

        The purchase price (the
“Purchase Price”) for the Assets will be paid in the form of Five Million (5,000,000)
shares (the “Purchase Shares”) of Common Stock of Buyer, $0.0001 par value per
share  as set forth in the following schedule, which Purchase Shares shall be due
and delivered to Seller at the Closing:

                  (a)   Three
million (3,000,000) of the Purchase Shares to Seller; and

                  (b)   Two
million (2,000,000) of the Purchase Shares pro rata to the Bond Holders as per Schedule
1.1(b).

2.     REPRESENTATIONS AND
WARRANTIES OF THE SELLER

        The Seller represents and
warrants to Buyer as follows:

        2.1     ORGANIZATION
AND GOOD STANDING

        The Seller is a corporation
duly organized, validly existing, and in good standing under the laws of the Province
of Alberta, with full power and authority to conduct its business as it is now
being conducted, to own, hold under lease, or otherwise possess or use the
properties and assets that it purports to own, hold under lease, or otherwise
possess or use, and to perform all its obligations under the Contracts.

        2.2     AUTHORITY; NO
CONFLICT

                  (a)   This
Agreement and Seller’s Closing Documents constitute the legal, valid, and
binding obligation of the Seller, enforceable against the Seller in accordance
with its terms. The Seller has the absolute and unrestricted right, power,
authority, and capacity to execute and deliver this Agreement and Seller’s
Closing Documents and to perform its obligations under this Agreement and
Seller’s Closing Documents. Each person signing this Agreement and Seller’s
Closing Documents on behalf of Seller has all requisite legal authority to
execute and deliver this Agreement and Seller’s Closing Documents.

                  (b)   Neither
the execution and delivery of this Agreement or Seller’s Closing Documents, nor
the consummation or performance of any of the Contemplated Transactions will,
directly or indirectly:

                         (i)      contravene,
conflict with, or result in (with or without notice or lapse of time) a
violation or breach of (A) any provision of the organizational documents of the
Seller, (B) any 

2

 
resolution adopted by the board of directors (or any Person or
  group of Persons exercising similar authority), (C) any Legal Requirement or
  any Order to which the Seller may be subject, or give any Governmental Body or
  other Person the right (with or without notice or lapse of time) to challenge
  any of the Contemplated Transactions or to exercise any remedy or obtain any
  relief under any such Legal Requirement or Order; (D) any of the terms or requirements
  of, or give any Governmental Body the right (with or without notice or lapse of
  time) to revoke, withdraw, suspend, cancel, terminate, or modify, any
  Governmental Authorization that is held by the Seller or that otherwise relates
  to the Seller’s business or any of the Assets, or (E) any provision of, or give
  any Person the right (with or without notice or lapse of time) to declare a
  default or exercise any remedy under, including the release of any asset or
  property of the Seller held in escrow, or to accelerate the maturity or
  performance of, or to cancel, terminate, or modify, any Contract;

                         (ii)     cause
Buyer or the Seller to become subject to, or to become liable for the payment
of, any tax or cause any of the Assets to be reassessed or revalued by any
taxing authority or other Governmental body;

                         (iii)    result
in (with or without notice or lapse of time) the imposition or creation of any
Encumbrance upon or with respect to any of the Assets; or

                         (iv)    require
any notice to or Consent from any Person, except as set forth on Schedule 2.2
hereto.

        2.3     TITLE TO
PROPERTIES; ENCUMBRANCES

        The Seller has good, sole
and marketable right, title and interest to the Assets, free and clear of any
Encumbrances. The Seller has the right to convey, and upon the consummation of
the transactions contemplated by this Agreement, the Seller will have conveyed
and Buyer will be vested with, good and marketable title and interest in and to
the Assets, free and clear of all Encumbrances. The Seller has not infringed,
and is not infringing, on any copyright, patent, intellectual property right,
or Trade Secret of another person. Schedule 2.3 hereto lists all employees and
agents of the Seller who participated, in the development of any software,
method or idea of or material to the business of the Seller which may be
protected or restricted by any copyright, patent or similar law (collectively,
the “Applications”) or any portion thereof or performed any work related to any
Applications (such persons are collectively referred to as the “Application
Developers”). Each Application Developer made his contribution to the
Applications (a) within the scope of engagement with the Seller, as a “work
made for hire,” and was directed by the Seller to work on the Applications or
(b) pursuant to a consulting or other arrangement with the Seller and has
assigned all his right, title and interest to the Applications to the Seller.
The Applications and every portion thereof are an original creation of the Seller
but may contain source code or portions of source code (including any “canned
program”) created by parties other than the Application Developers which are
legal for use by Seller and can be legally transferred to Buyer. No government
funding or university or college facilities were used in the development of any
Applications, and, except for Applications developed pursuant to an Applicable
Contract, the Applications were not developed pursuant to a Contract with any
person or entity. There are no restrictions on the ability of the Seller (or
any successor or assignee of the Seller) to use or otherwise exploit any
Applications, and such use or exploitation does not and will not obligate the Seller
(or any successor or assign of the Seller, including Buyer) to pay any royalty,
fee, or other compensation to any person or entity. Schedule 2.3 hereto
contains a complete list of all third party software which is a component of or
incorporated in or specifically required to develop or support any of the Seller’s
products (“Embedded Products”), and a list of any restrictions on the Seller’s
unrestricted right to use, incorporate or distribute the Embedded Products. The
Seller is not in violation of any license,

3

 
 sublicense or agreement with respect
  to an Embedded Product. Neither the Seller nor any Representative has received
  any notice from any Person that is contrary to any of the foregoing
  representations.

        2.4     LEGAL
PROCEEDINGS; ORDERS

        Except as set forth on Schedule
2.4 hereto, there is no claim, counter-claim, action, suit, order, proceeding
or investigation pending or, to the best knowledge of the Seller formed after
due investigation, threatened against or involving the Seller (or pending or
threatened against any of the officers, directors or key employees of the Seller),
its business or the Assets, or relating to the transactions contemplated
hereby, before any court, agency or other governmental body; nor is there any
reasonable basis for any such claim, action, suit, proceeding or governmental
investigation. The Seller is not subject to or affected by any Order. The Seller
has not received any opinion or memorandum or legal advice from legal counsel
retained by them to the effect that Seller or any of its employees or agents,
from a legal standpoint, to any liability which may be material to the Seller’s
business or the Assets. The Seller is not engaged in any legal action to
recover monies due it or for damages sustained by it.

        2.5     INTENTIONALLY
OMITTED

        2.6     INTELLECTUAL
PROPERTY

                  (a)   Schedule
2.6(a) hereto contains a true and complete list of all copyrights, trademarks,
service marks, trade names, patents, patent applications, business names,
domain names and other similar intangible property rights and interests
(hereinafter sometimes individually and collectively referred to as the “Intellectual
Property Rights”) applied for, issued to or owned by the Seller and which comprise
or relate to the Assets, under which the Seller is licensed or franchised, or
used in the conduct of the Seller’s business as it relates to the Assets, all
of which are valid and in good standing and uncontested, except as disclosed on
Schedule 2.6(a) hereto. The Seller has delivered to Buyer copies of all
documents establishing the Intellectual Property Rights. Except as disclosed on
Schedule 2.6(a) hereto, the Seller is not infringing upon or otherwise acting
adversely to any Intellectual Property Right owned by any person or persons,
and there is no such claim or action pending, or to the best knowledge of the Seller
formed after due investigation, threatened with respect thereto. The Seller has
no knowledge that any Person is infringing on any Intellectual Property Right
of the Seller.

                  (b)   The Seller
has taken all reasonable security measures to protect the secrecy,
confidentiality, and value of the Trade Secrets, and any other persons who have
knowledge of or access to information relating to the Trade Secrets have been
put on notice and, if appropriate, have entered into agreements that the Trade
Secrets are proprietary to the Seller and are not to be divulged or misused.
All of the Trade Secrets are presently valid and protectable, are not part of
the public domain, and have not been used, divulged, or appropriated for the
benefit of any persons other than the Seller or to the detriment of the Seller.
The Seller has no knowledge that any Person is infringing on any Trade Secret
of the Seller.

                  (c)   Schedule
2.6(c) hereto contains a complete and accurate list of all software developed
by the Seller for itself or for third parties (the “Software”) which comprises
or relates to the Assets. Except for Software developed pursuant to Applicable
Contracts, the Seller is in actual and sole possession of the complete source
code of the Software and all Design Documentation. Except as set forth in Schedule
2.6(c) hereto there are no defects in any Software, and there are no errors in
any Design Documentation, which defects or errors would in any material respect
affect the use of any Software or the functioning of any Software in accordance
with the specifications for the Software published by the Seller or its

4

 
customers, the Software has all the features described in the Design
  Documentation for that Software and materials made available to the Seller’s
  customers, and the Software does not contain any “back door,” “time bomb,”
  “Trojan horse,” “worm,” “drop dead device,” “virus” (as these terms are
  commonly used in the computer software industry), or other software routines or
  hardware components designed to permit unauthorized access, to disable or erase
  software, hardware, or data, or to perform any other similar type of functions.
  The Seller has delivered to Buyer complete and accurate records of the Seller
  with respect to Software fixes (including fixes currently in progress), problem
  lists, maintenance of the Software, and customer complaints, and all warranty
  claims (including any pending claims) related to the Software are described in Schedule
  2.6(c) hereto. Except as set forth in Schedule 2.6(c) hereto, the Seller has
  made no representations and warranties with respect to the Software.

        2.7     DISCLOSURE

                  (a)   No
representation or warranty of the Seller in this Agreement or Seller’s Closing
Documents omits to state a material fact necessary to make the statements
herein or therein, in light of the circumstances in which they were made, not
misleading.

                  (b)   No notice
given pursuant to Section 4.2 will contain any untrue statement or omit to
state a material fact necessary to make the statements therein or in this
Agreement, in light of the circumstances in which they were made, not
misleading.

                  (c)   In the
event of any inconsistency between the statements in the body of this Agreement
and those in any Schedule hereto or any of Seller’s Closing Documents (other
than an exception expressly set forth as such in a particular Schedule or
Seller Closing Document with respect to a specifically identified
representation or warranty), the statements in the body of this Agreement will
control.

        2.8     BROKERS OR
FINDERS

        Seller has not incurred any
obligation or liability, contingent or otherwise, for brokerage or finders’
fees or agents’ commissions or other similar payment in connection with this
Agreement or any transaction contemplated hereby.

        2.9     OWNERS; SECURITY
INTERESTS.

        There are no outstanding
warrants, options, commitments or rights of any kind to acquire from the Seller
any equity or other security interest in the Seller of any kind that would
affect the Assets.

        2.10   INTENTIONALLY
OMITTED.

        2.11   OPERATIONS SINCE August
15, 2012

                  (a)   Since
August 15, 2012, there has been (i) no material adverse change in the Assets
(individually or in aggregate), or the operations of the Seller related thereto,
no fact or condition exists or is contemplated or threatened which might
reasonably be expected to cause such a change in the future other than Buyer’s
purchase and use of the Assets and conditions attributable to the overall
economy and software business in general and (ii) no damage, destruction, loss
or claim, whether or not covered by insurance, or condemnation or other taking,
adversely affecting, in any material respect, the Assets or the operations of
the Seller related thereto.

5

 
                  (b)   Since August 15, 2012, the Seller has conducted
its business as it relates to the Assets in the ordinary course consistent with
existing operating procedures and practices. Without limiting the generality of
the foregoing, since August 15, 2012,
except as set forth on Schedule 2.11(b), the Seller has not:

                         (i)      sold,
leased, transferred or otherwise disposed of (except in the Ordinary Course of Business),
or mortgaged or pledged, or imposed or suffered to be imposed by lien, charge
or encumbrance on, any of the Assets;

                         (ii)     canceled
any debts owed to, or claims held by the Seller as relates to the Assets (including
the settlement of any claims or litigation) other than in the Ordinary Course
of Business consistent with past practice;

                         (iii)    canceled
or terminated any material contact, relationship, lease or agreement or entered
into and become bound by any material contract, relationship, lease or
agreement as relates to the Assets;

                         (iv)    delayed
payment of any account payable or other liability related to the Assets beyond
its due date or the date when such liability would have been paid in the Ordinary
Course of Business consistent with the past practice;

                         (v)     entered
into, amended, waived or declared (or received a declaration of) default under
any Applicable Contract;

                         (vi)    made
any distribution or other payment to any equity owner of any Asset; or

                         (vii)   made
any agreements, written or oral, to perform any of the above, other than this
Agreement.

        2.12   NO UNDISCLOSED
LIABILITIES

        The Seller is not subject
to any liability, commitment or obligation (including unasserted claims whether
known or unknown), whether absolute, contingent, accrued or otherwise, which
relates to the Assets.

        2.13   TAXES

        The Seller has and will
timely file all required federal, state, county and local income, excise,
withholding, property, sales, use, franchise and other tax returns,
declarations and reports which are required to be filed on or before the date
hereof and the Closing, and has paid or reserved for all taxes which have
become due pursuant to such returns or pursuant to any assessment which has
become payable. All monies required to be withheld by the Seller from employees
for income taxes, social security, workmen’s’ compensation, unemployment
insurance and other payroll taxes have been collected or withheld, and either
paid to the respective governmental agencies, set aside in accounts for such
purposes, or accrued, reserved against and entered upon the books of the Seller.
The returns, declarations and reports referred to in the previous sentences of
this Section 2.13 are or will be true and correct and reflect or will reflect
accurately all taxable income or tax liabilities for the periods covered
thereby. The Seller has not received a notice that any examination of or
proceeding with respect to any tax return or report has been Scheduled or
conducted. There are no outstanding agreements or waivers extending the
statutory period of limitations applicable to any tax return of the Seller.

6

 
3.     REPRESENTATIONS AND
WARRANTIES OF BUYER

        Buyer hereby represents
and warrants to the Seller as follows:

        3.1     ORGANIZATION
AND GOOD STANDING

        Buyer is a corporation duly
organized, validly existing, and in good standing under the laws of the State
of Nevada, its state of incorporation.

        3.2     AUTHORITY; NO
CONFLICT

                  (a)   This
Agreement and Buyer’s Closing Documents constitute the legal, valid, and
binding obligation of Buyer, enforceable against Buyer in accordance with their
terms. Buyer has the absolute and unrestricted right, power, and authority to
execute and deliver this Agreement and Buyer’s Closing Documents and to perform
its obligations under this Agreement and Buyer’s Closing Documents.

                  (b)   Neither
the execution and delivery of this Agreement and Buyer’s Closing Documents by
Buyer nor the consummation or performance of any of the Contemplated
Transactions by Buyer will give any Person the right to prevent, delay, or
otherwise interfere with any of the Contemplated Transactions pursuant to: (i)
any provision of Buyer’s charter documents or bylaws; (ii) any resolution
adopted by the board of directors or the stockholders of Buyer; (iii) any Legal
Requirement or Order to which Buyer may be subject; or (iv) any Contract to
which Buyer is a party or by which Buyer may be bound. Buyer is not required to
give any notice to or obtain any Consent from any Person in connection with the
execution and delivery of this Agreement by Buyer or the consummation or
performance of any of the Contemplated Transactions by Buyer.

        3.3     CERTAIN
PROCEEDINGS

        There is no pending
Proceeding that has been commenced against Buyer and that challenges, or may
have the effect of preventing, delaying, making illegal, or otherwise
interfering with, any of the Contemplated Transactions. To Buyer’s knowledge,
no such Proceeding has been threatened (orally or in writing).

        3.6     BROKERS OR
FINDERS

        Buyer and its officers
and agents have incurred no obligation or liability, contingent or otherwise,
for brokerage or finders’ fees or agents’ commissions or other similar payment
in connection with this Agreement or any transaction contemplated hereby.

7

 
4.     COVENANTS OF
THE SELLER

        4.1     PRESERVE
ACCURACY OF REPRESENTATIONS AND WARRANTIES

        The Seller shall not take
any action which would render any representation, warranty or covenant
contained in Section 2 of this Agreement inaccurate as of the Closing Date. Not
in limitation of the foregoing, between the date of execution of this Agreement
and the Closing Date, Seller shall not, without the prior written approval of
Buyer: (a) enter into any Contract that would affect the Assets, including but
not limited to issuing any release or dissolve any non-competition or
disclosure agreement related to the Seller or the Assets, (b) materially change
prices, billing practices or rates related to the Assets, (c) change salaries,
bonuses or compensation structure of any employee, (d) issue any option,
commitment or right of any kind to acquire from the Seller any security
interest or other interest in the Seller of any kind that might affect or
encumber any of the Assets, (e) merge, liquidate, consolidate, reorganize or
change the organic structure of the Seller in such a manner that might affect
or encumber any of the Assets, (f) make any distribution or enter into any
transaction that might affect or encumber any of the Assets, or (g) make any
commitment or agreement with respect to the any of foregoing.

        4.2     NOTIFICATION

        Between the date of this
Agreement and the Closing Date, the Seller will promptly notify Buyer in
writing if the Seller becomes aware of any fact or condition that causes or
constitutes a misrepresentation or breach of any of the Seller’s
representations and warranties as of the date of this Agreement, or if the Seller
becomes aware of the occurrence after the date of this Agreement of any fact or
condition that would cause or constitute a misrepresentation or breach of any
such representation or warranty had such representation or warranty been made
as of the time of occurrence or discovery of such fact or condition. During the
same period, the Seller will promptly notify Buyer of the occurrence of any
breach of any covenant of the Seller in this Section 4 or of the occurrence of
any event that may make the satisfaction of the conditions in Section 6
impossible or unlikely.

        4.3     BEST EFFORTS

        Between the date of this
Agreement and the Closing Date, the Seller will use its best efforts to cause
the conditions in Section 6 to be satisfied.

        4.4     ACCESS AND
INVESTIGATION

        During the period from
the date of this Agreement to the Closing Date, the Seller will (i) afford
Buyer and its Representatives full and free access to the Seller’s personnel,
properties, contracts, books and records, and other documents and data which
constitute or relate to the Assets, (ii) furnish Buyer and its Representatives
with copies of all such contracts, books and records, and other existing
documents and data as Buyer may reasonably request which constitute or relate
to the Assets, and (iii) furnish Buyer and its Representatives with such
additional financial, operating, and other data and information which
constitute or relate to the Assets as Buyer may reasonably request.

        4.5     ASSIGNMENT OF CONSULTING
SERVICES

        To facilitate the orderly
transfer of the Assets, concurrent with the execution of this Agreement, Russell
Krywolt will enter into a Consulting Services Agreement with Buyer providing
services to Buyer to facilitate the orderly transfer of assets and unencumbered
use thereof.

8

 
        4.6     NONCOMPETITION,
NONSOLICITATION AND NONDISPARAGEMENT

                  (a)   Noncompetition.
For a period of two (2) years after the Closing Date, Seller shall not,
anywhere in North America, directly or indirectly invest in, own, manage,
operate, finance, control, advise, render services to or guarantee the
obligations of any Person engaged in or planning to become engaged in the online
contesting business, provided, however, that Seller may purchase or otherwise
acquire up to (but not more than) 4.99% of any class of the securities of any
Person (but may not otherwise participate in the activities of such Person) if
such securities are listed on any national or regional securities exchange or
have been registered under Section 12(g) of the Exchange Act.

                  (b)   Nonsolicitation.
For a period of two (2) years after the Closing Date, Seller shall not,
directly or indirectly:

                         (i)      solicit
the business of any Person who is a customer of Buyer; 

                         (ii)     cause,
induce or attempt to cause or induce any customer, supplier, licensee,
licensor, franchisee, employee, consultant or other business relation of Buyer
to cease doing business with Buyer, to deal with any competitor of Buyer or in
any way interfere with its relationship with Buyer;

                         (iii)    cause,
induce or attempt to cause or induce any customer, supplier, licensee,
licensor, franchisee, employee, consultant or other business relation of Seller
on the Closing Date or within the year preceding the Closing Date to cease
doing business with Buyer, to deal with any competitor of Buyer or in any way
interfere with its relationship with Buyer; or

                         (iv)    hire,
retain or attempt to hire or retain any employee or independent contractor of
Buyer or in any way interfere with the relationship between Buyer and any of
its employees or independent contractors.

                  (c)   Nondisparagement.
After the Closing Date, Seller will not disparage Buyer or any of Buyer's
shareholders, directors, officers, employees or agents.

                  (d)  Modification
of Covenant. If a final judgment of a court or tribunal of competent
jurisdiction determines that any term or provision contained in Section 4.6(a)
through (c) is invalid or unenforceable, then the parties agree that the court
or tribunal will have the power to reduce the scope, duration or geographic
area of the term or provision, to delete specific words or phrases or to
replace any invalid or unenforceable term or provision with a term or provision
that is valid and enforceable and that comes closest to expressing the
intention of the invalid or unenforceable term or provision. This Section 4.6
will be enforceable as so modified after the expiration of the time within
which the judgment may be appealed. This Section 4.6 is reasonable and
necessary to protect and preserve Buyer's legitimate business interests and the
value of the Assets and to prevent any unfair advantage conferred on Seller.

5.     COVENANTS OF BUYER

        5.1     PRESERVE ACCURACY
OF REPRESENTATIONS AND WARRANTIES

        The Buyer shall refrain
from taking any action which would render any representation, warranty or
covenant contained in Section 3 of this Agreement inaccurate as of the Closing
Date

        5.2     NOTIFICATION

9

 
        Between the date of this
Agreement and the Closing Date, the Buyer will promptly notify the Seller in
writing if the Buyer becomes aware of any fact or condition that causes or
constitutes a misrepresentation or breach of any of the Buyer’s representations
and warranties as of the date of this Agreement, or if the Buyer becomes aware
of the occurrence after the date of this Agreement of any fact or condition
that would cause or constitute a misrepresentation or breach of any such
representation or warranty had such representation or warranty been made as of
the time of occurrence or discovery of such fact or condition.

        5.3     BEST EFFORTS

        Between the date of this
Agreement and the Closing Date, Buyer will use its best efforts to cause the
conditions in Section 7 to be satisfied.

6.     CONDITIONS PRECEDENT TO
BUYER’S OBLIGATION TO CLOSE

        Buyer’s obligation to purchase
the Assets and to take the other actions required to be taken by Buyer at the
Closing is subject to the satisfaction, at or prior to the Closing, of each of
the following conditions (any of which may be waived by Buyer, in whole or in
part):

        6.1     ACCURACY OF
REPRESENTATIONS

        Each of the Seller’s
representations and warranties in this Agreement and Seller’s Closing Documents
must have been accurate in all respects as of the date of this Agreement, and
must be accurate in all respects as of the Closing Date as if made on the
Closing Date.

        6.2     THE SELLER’S
PERFORMANCE

                  (a)   Each of
the covenants and obligations that the Seller is required to perform or to
comply with pursuant to this Agreement and Seller’s Closing Documents at or
prior to the Closing must have been duly performed and complied with in all
material respects.

                  (b)   The Seller
must have delivered to Buyer Seller’s Closing Documents and each of the
documents and items required to be delivered by the Seller pursuant to Section
9.2, and each of the other covenants and obligations in Section 4.1 and Section
4.3 must have been performed and complied with in all respects.

        6.3     CONSENTS

        Each of the Consents
identified in Schedule 2.2 hereto must have been obtained and must be in full
force and effect.

        6.4     NO PROCEEDINGS

        Since the date of this
Agreement, there must not have been commenced or threatened (orally or in
writing) against Buyer, or against any Related Person of Buyer, any material
Proceeding (a) involving any challenge to, or seeking damages or other relief
in connection with, any of the Contemplated Transactions, or (b) that may have
the effect of preventing, delaying, making illegal, or otherwise interfering
with any of the Contemplated Transactions.

        6.5     NO CLAIM
REGARDING ASSETS OR SALE PROCEEDS

10

 
        There must not have been
made or threatened (orally or in writing) by any Person any claim asserting
that such Person (a) has the right to acquire or obtain any interest in the
Assets, or (b) is entitled to all or any portion of the Purchase Price payable
for the Assets.

        6.6     NO PROHIBITION

        Neither the consummation
nor the performance of any of the Contemplated Transactions by the Seller will,
directly or indirectly (with or without notice or lapse of time), materially
contravene, or conflict with, or result in a material violation of, or cause
Buyer or any Person affiliated with Buyer to suffer any material adverse
consequence under, (i) any applicable Legal Requirement or Order, or (ii) any
Legal Requirement or Order that has been published, introduced, or otherwise
formally proposed by or before any Governmental Body.

        6.7     DUE
DILIGENCE

        Buyer has satisfactorily
completed its “due diligence” investigation relating to the Assets.

7.     CONDITIONS PRECEDENT TO SELLER’S
OBLIGATION TO CLOSE

        The Seller’s obligation
to sell the Assets and to take the other actions required to be taken by the Seller
at the Closing is subject to the satisfaction, at or prior to the Closing, of
each of the following conditions (any of which may be waived by the Seller, in
whole or in part):

        7.1     ACCURACY OF
REPRESENTATIONS

        Each of Buyer’s
representations and warranties in this Agreement and Buyer’s Closing Documents must
have been accurate in all respects as of the date of this Agreement and must be
accurate in all respects as of the Closing Date as if made on the Closing Date.

        7.2     BUYER’S
PERFORMANCE

                  (a)   Each of
the covenants and obligations that Buyer is required to perform or to comply
with pursuant to this Agreement and Buyer’s Closing Documents at or prior to the
Closing must have been performed and complied with in all material respects.

                  (b)   Buyer
must have delivered to the Seller each of the documents and payments required
to be delivered by Buyer pursuant to Section 9.2.

        7.3     NO PROCEEDINGS

        Since the date of this
Agreement, there must not have been commenced or threatened (orally or in
writing) against the Seller, or against any Related Person of Seller, any
material Proceeding (a) involving any challenge to, or seeking damages or other
relief in connection with, any of the Contemplated Transactions, or (b) that
may have the effect of preventing, delaying, making illegal, or otherwise
interfering with any of the Contemplated Transactions.

        7.4     NO PROHIBITION

        Neither the consummation
nor the performance of any of the Contemplated Transactions by the Seller will,
directly or indirectly (with or without notice or lapse of time), materially
contravene, or

11

 
 conflict with, or result in a material violation of, or cause
  the Seller or any Related Person of Seller to suffer any material adverse
  consequence under, (i) any applicable Legal Requirement or Order, or (ii) any
  Legal Requirement or Order that has been published, introduced, or otherwise
  formally proposed by or before any Govern mental Body.

8.     TERMINATION

        8.1     TERMINATION
EVENTS

        This Agreement may, by
written notice given prior to or at the Closing, be terminated:

                  (a)   by either
Buyer or the Seller if a material breach of any provision of this Agreement has
been committed by the other party and such breach has not been waived;

                  (b)  either

                         (i)      by
Buyer if any of the conditions in Section 6 has not been satisfied as of the
Closing Date or if satisfaction of such a condition is or becomes impossible
(other than through the failure of Buyer to comply with its obligations under
this Agreement) and Buyer has not waived such condition on or before the
Closing Date; or

                         (ii)     by
the Seller, if any of the conditions in Section 7 has not been satisfied as of
the Closing Date or if satisfaction of such a condition is or becomes
impossible (other than through the failure of the Seller to comply with its
obligations under this Agreement) and the Seller has not waived such condition
on or before the Closing Date; or

                  (c)   by mutual
consent of Buyer and the Seller.

        8.2     EFFECT OF
TERMINATION

        Each party’s right of
termination under Section 8.1 is in addition to any other rights it may have
under this Agreement or otherwise, and the exercise of a right of termination
will not be an election of remedies. If this Agreement is terminated pursuant
to Section 8.1, all further obligations of the parties under this Agreement
will terminate, except that the obligations in Sections 13.1, 13.5 and 13.9
will survive; provided, however, that if this Agreement is terminated by a
party because of the breach of the Agreement by the other party or because one
or more of the conditions to the terminating party’s obligations under this
Agreement is not satisfied as a result of the other party’s failure to comply
with its obligations under this Agreement, the terminating party’s right to
pursue all legal remedies will survive such termination unimpaired.

9.     CLOSING

        9.1     CLOSING DATE

        The purchase and sale
(the “Closing”) provided for in this Agreement will take place at the offices
of Buyer at 10:00 a.m. (local time) on or before October 31, 2012 (the “Closing
Date”), or at such other time and place as the parties may agree. Subject to
the provisions of Section 8, failure to consummate the purchase and sale
provided for in this Agreement on the Closing Date will not result in the
termination of this Agreement and will not relieve any party of any obligation
under this Agreement.

12

 
        9.2     CLOSING
DELIVERIES

        At the Closing:

                  (a)   The Seller
will deliver to Buyer:

                         (i)      such
bills of sale, assignments, and other good and sufficient instruments of
conveyance as are necessary to vest Buyer with good title to the Assets; 

                         (ii)     all
Design Documentation, any lists of prospective customers, and any problem
lists;

                         (iii)    all
copies of the source code for the Software and all copies of the Software in
machine-readable form that are in the possession of the Seller;

                         (iv)    all
of the Seller’s business Records related to the Assets (to the extent not
previously delivered to Buyer);

                         (v)     a
certificate executed by the Chief Executive Officer of the Seller to the effect
that (A) each of the Seller’s representations and warranties in this Agreement
and Seller’s Closing Documents was accurate in all respects as of the date of
this Agreement and is accurate in all respects as of the Closing Date as if
made on the Closing Date (giving full effect to any supplements to any Schedule
hereto that were delivered by the Seller to Buyer prior to the Closing Date in
accordance with Section 4.2), and (B) the Seller has performed and complied
with all covenants and conditions required to be performed or complied with by
it prior to or at the Closing;

                         (vi)    a
copy of resolutions of the Seller’s board of directors, executed after review
by them of the information described in Section 11, as authorizing and
approving the Seller’s execution and delivery of this Agreement and
consummation of the Contemplated Transactions; and

                         (vii)   such other documents, instruments, certificates
and opinions as Buyer may reasonably request for the purpose of consummating
the Contemplated Transactions.

                         (viii)
debt conversion agreements signed by the Bond Holders identified in Schedule
1.1(b) to convert their debt into 2,000,000 Purchase Shares.

                  (b)   Buyer
will deliver to the Seller:

                         (viii)  share
certificates representing the Purchase Shares.

10.   INDEMNIFICATION; REMEDIES

        10.1   SURVIVAL

        All representations and
warranties in this Agreement, the Buyer’s Closing Documents, the Seller’s
Closing Documents and any other certificate or document delivered pursuant to
this Agreement will survive the Closing. The right to indemnification,
reimbursement or other remedy based on such representations and warranties will
not be affected by any investigation conducted by Buyer or its agents.
Notwithstanding the foregoing, (a) all representations and warranties shall
continue in effect if a claim for breach thereof has been made prior to the
expiration of the applicable survival period and shall 

13

 
survive until such claim
  is resolved and (b) any representation or warranty of which either the Seller
  or any Representative had knowledge of a misrepresentation or breach at any
  time prior to the date on which such representation or warranty is made shall
  survive indefinitely.

        10.2   INDEMNIFICATION
AND REIMBURSEMENT BY THE SELLER 

        The Seller will indemnify
and hold harmless Buyer and its employees, officers, directors, stockholders,
controlling persons, and affiliates (collectively, the “Indemnified Persons”),
and will reimburse the Indemnified Persons, for any loss, liability, claim,
damage, expense (including costs of investigation and defense and reasonable
attorneys’ fees) or diminution of value, but excluding consequential or
punitive damages, whether or not involving a third-party claim (collectively,
“Damages”), arising from or in connection with:

                  (a)   any
material misrepresentation or breach of any representation or warranty made by
the Seller in or pursuant to this Agreement, the Seller’s Closing Documents, or
any other certificate or document delivered by the Seller pursuant to this
Agreement;

                  (b)   any
non-compliance with or breach by the Seller of any covenant or obligation of
the Seller in this Agreement;

                  (c)   (i) the
operation of the Seller’s business (including the development, manufacture,
sale, shipment, license or use of the Software or other product of, or services
provided by, the Seller) prior to the Closing Date, or (ii) any liabilities or
obligations of the Seller other than the Assumed Obligations; or

                  (d)  any claim
by any Person for brokerage or finder’s fees or commissions or similar payments
based upon any agreement or understanding alleged to have been made by any such
Person with the Seller (or any Person acting on its behalf) in connection with
any of the Contemplated Transactions.

        10.3   INDEMNIFICATION
AND REIMBURSEMENT BY BUYER

        Buyer shall indemnify and
hold harmless the Seller, and will reimburse the Seller, for any Damages
arising from or in connection with:

                  (a)   any claim
by any Person arising from the Buyer’s ownership or utilization of the Assets
after the Closing Date (except to the extent such claim relates to a matter for
which Buyer is entitled to indemnification pursuant to Section 10.2); or

                  (b)   any claim
by any Person for brokerage or finder’s fees or commissions or similar payments
based upon any agreement or understanding alleged to have been made by such
Person with Buyer (or any Person acting on its behalf) in connection with any
of the Contemplated Transactions.

        10.4   RIGHT OF SETOFF

        Upon notice to the Seller
specifying in reasonable detail the damages which are the basis for any such
set-off, Buyer may set off an amount equal to the known or reasonably
anticipated Damages to which it may be entitled under this Section 10 against
amounts otherwise payable under Section 1.2. Neither the exercise of nor the
failure to exercise such right of set-off will constitute an election of

14

 
remedies or limit Buyer in any manner in the enforcement of any other remedies
  that may be available to it.

        10.5   PROCEDURE FOR
INDEMNIFICATION—THIRD PARTY CLAIMS

                  (a)   Promptly
after receipt by an indemnified party under Section 10.2 or 10.3 of notice of a
claim against it (a “Claim”), the indemnified party will, if a claim is to be
made against an indemnifying party under such Section, give notice to the
indemnifying party of the Claim, but the failure to notify the indemnifying
party will not relieve the indemnifying party of any liability that it may have
to any indemnified party, except to the extent that the indemnifying party
demonstrates that the defense of such action is prejudiced by the indemnified
party’s failure to give such notice.

                  (b)   If any
Claim referred to in Section 10.5(a) is made against an indemnified party and
it gives notice to the indemnifying party of the Claim, the indemnifying party
will, unless the Claim involves tax liabilities, be entitled to participate in
the defense of the Claim and, to the extent that it wishes (unless (i) the
indemnifying party is also a party to the Claim and the indemnified party
determines in good faith that joint representation would result in a conflict
of interest, or (ii) the indemnifying party fails to provide reasonable
assurance to the indemnified party of its financial capacity to defend the
Claim and provide indemnification with respect to the Claim), to assume the
defense of the Claim with counsel satisfactory to the indemnified party and,
after notice from the indemnifying party to the indemnified party of its
election to assume the defense of the Claim, the indemnifying party will not,
as long as it diligently conducts such defense, be liable to the indemnified
party under such Section for any fees of other counsel or any other expenses
with respect to the defense of the Claim in each case subsequently incurred by
the indemnified party in connection with the defense of the Claim, other than
reasonable costs of investigation. If the indemnifying party assumes the
defense of a Claim, (a) no compromise or settlement of such claims may be
effected by the indemnifying party without the indemnified party’s consent
unless (i) there is no finding or admission of any violation of Legal
Requirements or any violation of the rights of any Person and no effect on any
other Claims that may be made against the indemnified party, and (ii) the sole
relief provided is monetary damages that are paid in full by the indemnifying
party; and (b) the indemnifying party will have no liability with respect to
any compromise or settlement of such claims effected without its consent. If
notice is given to an indemnifying party of a Claim and the indemnifying party
does not, within ten days after the indemnified party’s notice is given, give
notice to the indemnified party of its election to assume the defense of the
Claim, the indemnifying party will be bound by any determination with respect
to the Claim or any compromise or settlement effected by the indemnified party.

                  (c)   Notwithstanding
the foregoing, if an indemnified party determines in good faith that there is a
reasonable probability that a Claim may adversely affect it or its Related
Persons other than as a result of monetary damages for which it would be
entitled to indemnification under this Agreement, the indemnified party may, by
notice to the indemnifying party, assume the exclusive right to defend, compromise,
or settle the Claim, but the indemnifying party will not be bound by any
determination of a Claim so defended or any compromise or settlement effected
without its consent (which may not be unreasonably withheld).

                  (d)  The Seller
and Buyer hereby consent to the non-exclusive jurisdiction of any court in
which a Claim is brought against any indemnified person for purposes of any
claim that an indemnified party may have under this Agreement with respect to
such Claim or the matters alleged therein, and agree that process may be served
on the Seller and Buyer with respect to such a claim anywhere in the world.

15

 
        10.6   PROCEDURE FOR
INDEMNIFICATION—OTHER CLAIMS

        A claim for
indemnification for any matter not involving a third-party claim may be
asserted by notice to the party from whom indemnification is sought.

11.   SECURITIES LAW MATTERS

        The Seller and Buyer
agree as follows with respect to the purchase and the sale or other disposition
of the Purchase Shares by the Seller after the Closing:

        11.1   ACQUISITION AND
DISPOSITION OF PURCHASE SHARES

        The Seller represents and
warrants that the Seller:

                  (a)   was
provided the opportunity to ask questions of and receive answers from Buyer, or
its representative, concerning the operations, business and financial condition
of Buyer, and all such questions have been answered to his full satisfaction
and any information necessary to verify such responses has been made available
to Seller; 

                  (b)   has
received such documents, materials and information as he deems necessary or
appropriate for evaluation of Purchase Shares, and further confirms that Seller
has carefully read and understands these materials and has made such further
investigation as was deemed appropriate to obtain additional information to
verify the accuracy of such materials; 

                  (c) confirms
that Purchase Shares were not offered to Seller by any means of general
solicitation or general advertising; 

                  (d) and its
managing representatives have such knowledge and experience in financial and
business matters that they are capable of evaluating the merits and risks of an
investment in the Purchase Shares; 

                  (e) is
acquiring the Purchase Shares for its own account, for investment purposes
only, and not with a view towards the sale or other distribution thereof, in
whole or in part, and understands and agrees that the Purchase Shares will be
“restricted securities” subject to the restrictions on resale set forth in Rule
502(d) of Regulation D as promulgated by the U.S. Securities and Exchange
Commission and, as such, may not be resold without registration under the
Securities Act of 1933, as amended, or pursuant to an exemption therefrom.

12.   DEFINITIONS

        For purposes of this
Agreement, the following terms have the meanings specified:

        “Applicable Contract”—any Contract which
relates directly or indirectly to the Assets or to services rendered to or by
or to be rendered to or by the Seller.

        “Buyer’s Closing
Documents”—the documents to be delivered by Buyer to the Seller pursuant to
Section 9.2(b).

        “Closing Date”—the date and time as
of which the Closing actually takes place.

16

 
        “Seller’s Closing
Documents”—the
documents to be delivered by the Seller to Buyer pursuant to Section 9.2(a).

        “Consent”—any approval,
consent, ratification, waiver, or other authorization (including any
Governmental Authorization).

        “Contemplated
Transactions”—all
of the transactions contemplated by this Agreement, including:

                         (i)      the
sale of the Assets by the Seller to Buyer;

                         (ii)     the
execution, delivery, and performance of the Seller’s Closing Documents and
Buyer’s Closing Documents; and

                         (iii)    the
performance by Buyer and the Seller of their respective covenants and
obligations under this Agreement and the Parties’ respective Closing Documents
as applicable.

        “Contract”—any agreement,
contract, obligation, promise, or undertaking (whether written or oral and
whether express or implied) that is legally binding and (a) under which the Seller
has or may acquire any rights, (b) under which the Seller has or may become
subject to any obligation or liability, or (c) by which the Seller or any of
the Assets is or may become bound.

        “Design Documentation”—all documentation,
specifications, manuals, user guides, promotional material, internal notes and
memos, technical documentation, drawings, flow-charts, diagrams, source
language statements, demo disks, benchmark test results, and other written
materials related to, associated with or used or produced in the development of
the Software.

        “Encumbrance”—any claim, lien,
pledge, charge, security interest, equitable interest, option, right of first
refusal, condition, or other restriction or adverse claim of rights of any
kind, including any restriction on use, transfer, voting (in the case of a
security), receipt of income, or exercise of any other attribute of ownership.

        “Governmental
Authorization”
any approval, consent, license, permit, waiver, or other authorization issued,
granted, given, or otherwise made available by or under the authority of any
Governmental Body or pursuant to any Legal Requirement.

        “Governmental Body”—any:

                         (i)      nation,
state, county, city, town, village, district, or other jurisdiction of any
nature;

                         (ii)     federal,
state, local, municipal, foreign, or other government;

                         (iii)    governmental
or quasi-governmental authority of any nature (including any governmental
agency, branch, department, official, or other entity and any court or other
tribunal);

                         (iv)    multi-national
organization or body; or

                         (v)     body
exercising, or entitled or purporting to exercise, any administrative,
executive, judicial, legislative, police, regulatory, or taxing authority or
power of any nature.

        “Legal Requirement”—any federal, state,
local, municipal, foreign, or other constitution, ordinance, regulation,
statute, treaty, or other law adopted, enacted, implemented, or promulgated by
or

17

 
 under the authority of any Governmental Body or by the eligible voters of
  any jurisdiction, and any agreement, approval, consent, injunction, judgment,
  license, order, or permit by or with any Governmental Body to which the Seller
  is a party or by which the Seller is bound.

        “Order”—any award,
injunction, judgment, order, ruling, subpoena, or verdict or other decision
entered, issued, made, or rendered by any court, administrative agency, or
other Governmental Body or by any arbitrator.

        “Ordinary Course of
Business”—an
action taken by a Person will be deemed to have been taken in the “Ordinary
Course of Business” only if:

                         (i)      such
action is consistent with the past practices of such Person and is taken in the
ordinary course of the normal day-to-day operations of such Person;

                         (ii)     such
action is not required to be authorized by the board of directors of such
Person (or by any Person or group of Persons exercising similar authority); and

                         (iii)    such
action is similar in nature and magnitude to actions customarily taken, without
any authorization by the board of directors (or any Person or group of Persons
exercising similar authority), in the ordinary course of the normal day-to-day
operations of other Persons that are in the same line of business as such
Person.

        “Person” any individual,
corporation (including any non-profit corporation), general or limited
partnership, limited liability Seller, joint venture, estate, trust,
association, organization, or other entity or Governmental Body.

        “Proceeding”—any suit, litigation,
arbitration, hearing, audit, investigation, or other action (whether civil,
criminal, administrative, investigative, or informal) commenced, brought,
conducted, or heard by or before, or otherwise involving, any Governmental Body
or arbitrator.

        “Record”--information
that is inscribed on a tangible medium or that is stored in an electronic or
other medium and is retrievable in perceivable form.

        “Related Person”—with respect to a particular
individual:

                         (i)      each
other member of such individual’s Family; and

                         (ii)     any
Person that is directly or indirectly controlled by any one or more members of
such individual’s Family.

With respect to a specified
Person other than an individual:

                         (i)      any
Person that, directly or indirectly, controls, is controlled by, or is under
common control with such specified Person; and

                         (ii)     each
Person that serves as a director, executive officer, general partner, executor,
agent, employee or trustee of such specified Person (or in a similar capacity);

For purposes of this definition,
the “Family” of an individual includes (i) such individual, (ii) the
individual’s spouse and former spouses, (iii) any lineal ancestor descendant of
the individual, or (iv) a 

18

 
trust for the benefit of the foregoing. A Person will
  be deemed to control another Person, for purposes of this definition, if the
  first Person possesses, directly or indirectly, the power to direct, or cause
  the direction of, the management policies of the second Person, (x) through the
  ownership of voting securities, (y) through common directors, trustees or
  officers, or (z) by contract or otherwise.

        “Representative”—with respect to a
particular Person, any director, officer, employee, agent, consultant, advisor,
or other representative of such Person, including legal counsel, accountants,
and financial advisors.

        “Trade Secrets”—all licenses,
processes, algorithms, formulae, designs, methods, trade secrets, inventions,
proprietary or technical information, Design Documentation and data covering or
embodied in any software or other assets owned by the Seller or used in the
conduct of its business.

13.   GENERAL PROVISIONS

        13.1   EXPENSES

        The Seller and Buyer will
each bear their own expenses incurred in connection with the Contemplated
Transactions. The Seller will pay any legal, accounting, or other expenses
incurred by the Seller in connection with the Contemplated Transactions.

        13.2   NOTICES

        All notices, consents,
waivers, and other communications under this Agreement must be in writing and
will be deemed to have been duly given (a) when delivered by hand; (b) when
sent by facsimile transmission, provided that a copy is mailed by U.S.
certified mail, return receipt requested; or (c) one day after deposit with a
nationally recognized overnight delivery service, in each case to the
appropriate addresses and fax numbers set forth below (or to such other
addresses and fax numbers as a party may designate by notice to the other
parties):

	 	To the Seller:

  

  Raptify
    Marketing Systems Inc.
    

    Attn:
    Russ Krywolt
    

    735
    - 525 Seymour Street

    Vancouver, BC, Canada, V6B 3H7
    

    430-644-9807
    
	To the Buyer:

      

      Level
    20 Inc.

    Attn:
    Rob Danard
    

    228
    Hamilton Avenue

    Palo
    Alto, CA, 94301

  403-614-4441
	 	With a copy to:
    

    

    General Counsel	With a copy to:
    

    

    Scott Doney
    

    3273 E. Warm Springs Road

  Las Vegas, NV 89120

  (702) 312-6255

  (702) 944-7100 (fax)

        13.3   FURTHER ASSURANCES

19

 
        The parties agree (a) to
furnish upon request to each other such further information, (b) to execute and
deliver to each other such other documents, and (c) to do such other acts and
things, all as the other party may reasonably request for the purpose of
carrying out the intent of the Contemplated Transactions.

        13.4   WAIVER

        The rights and remedies
of the parties to this Agreement are cumulative and not alternative. Neither
the failure nor any delay by any party in exercising any right, power, or
privilege under this Agreement or the documents referred to in this Agreement
will operate as a waiver of such right, power, or privilege, and no single or
partial exercise of any such right, power, or privilege will preclude any other
or further exercise of such right, power, or privilege or the exercise of any
other right, power, or privilege.

        13.5   ENTIRE AGREEMENT
AND MODIFICATION

        This Agreement supersedes
all prior oral or written agreements between the parties with respect to its
subject matter and constitutes (along with the documents referred to in this
Agreement) a complete and exclusive statement of the terms of the agreement
between the parties with respect to its subject matter. This Agreement may not
be amended except by a written agreement executed by the party to be charged
with the amendment.

        13.6   ASSIGNMENTS,
SUCCESSORS, AND NO THIRD-PARTY RIGHTS

        Neither party may assign
any of its rights under this Agreement without the prior consent of the other
parties except that Buyer may assign any of its rights under this Agreement to
any subsidiary of Buyer; provided, no such assignment shall relieve Buyer of
its obligations under this Agreement. Subject to the preceding sentence, this
Agreement will apply to, be binding in all respects upon, and inure to the
benefit of the successors and permitted assigns of the parties. Nothing
expressed or referred to in this Agreement will be construed to give any Person
other than the parties to this Agreement any legal or equitable right, remedy,
or claim under or with respect to this Agreement or any provision of this
Agreement.

        13.7   SEVERABILITY

        If any provision of this
Agreement is held invalid or unenforceable by any court of competent
jurisdiction, the other provisions of this Agreement will remain in full force
and effect. Any provision of this Agreement held invalid or unenforceable only
in part or degree will remain in full force and effect to the extent not held
invalid or unenforceable.

        13.8   SECTION HEADINGS,
CONSTRUCTION

        The headings of Sections
in this Agreement are provided for convenience only and will not affect their
construction or interpretation. All references to “Sections” refer to the
corresponding Sections of this Agreement. All words used in this Agreement will
be construed to be of such gender or number as the circumstances require.
Unless otherwise expressly provided, the word “include” or “including” does not
limit the preceding words or terms. The language used in this Agreement will be
deemed to be the language chosen by the parties to express their mutual intent,
and no rule of strict construction will be applied against any party.

20

 
        13.9   CONFIDENTIALITY OF
AGREEMENT

        The Seller will keep the
terms of this Agreement and the other agreements contemplated by this Agreement
confidential and will not, without the prior consent of Buyer, disclose such
terms to any person or entity other than their accountant’s and attorneys who
agree to be bound by this confidentiality provision, provided that this
confidentiality obligation will terminate with respect to any information that
becomes generally available to the public through no fault of the Seller or
their accountants or attorneys or where required by law.

        13.10 GOVERNING LAW

        This Agreement will be
governed by and construed under the laws of the State of Nevada without regard
to conflicts of laws principles.

        13.11 COUNTERPARTS

        This Agreement may be
executed in one or more counterparts, each of which will be deemed to be an
original copy of this Agreement and all of which, when taken together, will be
deemed to constitute one and the same agreement.

        IN WITNESS WHEREOF, the parties have
executed this Asset Purchase Agreement as of the date first written above.

	 	“Seller” 

  Raptify Marketing Systems Inc.

  

  _____________________________

  

    By:  Russell Krywolt

    Its:  Chief Executive Officer	“Buyer” 

    Level20 Inc

    

    _____________________________

    

      By:  Robert Danard

    Its:  President

21

 Schedule 1.1(a)

Assets

	
Amt.  	 	
Item Description  
	3	 	HP Laptops (HP320CA)
	1	 	Samsung CLP-310 color laser printer
	1	 	Dlink Network bridge
	26	 	Dell Poweredge 1850 1U Rack mount server - Dual 2.8GHz Xeon, 4GB
  mem, 2x73GB 10k SCSI (client stack systems) w/ DRAC (note: not all may be
  currently functioning)
	14	 	Generic P4 rack mount servers - P4/Pentium D, 1GB mem, no HDD,
  dual GB nic (used for firewall/VPN) (note: not all may be currently
  functioning)
   
	 2	 	 Poweredge 2650 2U rackmount servers (note: not all may be
  currently functioning)
	3	 	Dlink 1GB switch for client stack
	1	 	APC 2kVA rack mount UPS (used w/ new batteries)
	1	 	HP 72u server rack - mesh doors, rear butterfly doors
	1	 	Office server - Core i7 860, 8GB memory, dual 1TB Raid 1 HDD
  (virtualized, hosts Windows 2003 server for office files, Linux for offsite
  near line backup of client data)
	 	 	All IP, software and data records
	Misc	 	As per computer systems hardware/software accounting receipts

22

 Schedule 1.1(b)

Assumed Obligations

Raptify Marketing
Systems Ltd. – Bond Holders

	
Bond Holders
  	
Investment  	
Level20 Shares to be
  issued  
	1447162 Alberta Ltd. (E. Jean Parsons)	$250,000	1,000,000
	Lana Blain	$25,000	100,000
	Tamara MacDonald	$25,000	100,000
	Wendy Phillips	$25,000	100,000
	Kirstie Egan	$25,000	100,000
	1319627 Alberta Ltd. (Ken Elder)	$50,000	200,000
	Tradefinder Inc. (Michael Gouveia)	$100,000	400,000

23

 Schedule 2.2

Consents

Class A Shares

100
- 1439701 Alberta Ltd. (Russell Krywolt)

Total:
100

24

 Schedule 2.3

Employees
Participating in Asset Development

Russell
Krywolt - Founder

Edward
Liposcak - Operations 

Duncan
Armitage - Development (contracted through Photaris Technology Solutions Inc.)

Bill
Cowan - Development (contracted through Photaris Technology Solutions Inc.)

*Photaris
Technology Solutions Inc. is a Canadian company wholly owned by Russell Krywolt

*Russ to assign or transfer non-circumvent non-disclosure agreements
as per his employee / contractor agreements.

*Russ to assign or transfer all other existing non-circumvent
non-disclosure agreements obtained through the normal course of business
through third party dealings.

Third Party Software
Necessary for Assets

As
per the agreement seller will assign and or transfer all third party software necessary
to the assets; included but not limited to such software necessary to operate
the server and hosting environment and any other software necessary to maintain
the integrity and utilization of the assets. 

25

 

 

Legal Proceedings;
Orders

None

26

 Schedule 2.5

INTENTIONALLY OMITTED 

27

 Schedule 2.6(a)

Intellectual Property

	All Intellectual Property Rights of Seller related to the Assets,
  including but not limited to the following:
	     Websites,  Domains Names and Email Addresses -. Login, IDs, Passwords and Account  Control;
	     Corporate  Material as related to the Transaction;
	     System  and Technology Development;
	     Operational  Systems and Code;
	     Digital  Backups and Tapes;
	     Source  Code;
	     Technical,  infrastructure and Design Documentation and logging files;
	     Copyright  and Trademarks;
	     All  contestant and user data records
	     All  Patents and Assignments;
	     Software  Licenses;
	     Trade  Secrets; and
	     all Records related  to any of the foregoing

Documentation
and supporting materials provided in digital copy.

Digital
copy includes but not limited to the following:

1-
Godaddy Inc. Domain Receipt#: 324120034, Customer #: 4206842

2-CA Patent Filing Notice 20100602.pdf

3- Canadian Patent Docs

           01-Can Pat Cover.pdf

           02-Can Pat App.pdf

           03-Can Pat Figures.pdf

           04-Can Pat Filing.pdf

4-Canadian Patent Docs.zip

5-Diagrams

           RapitfyPt0.pdf

           RapitfyPt1.pdf

           RaptifyPt2.pdf

           RaptifyPt3.pdf

6-PCT Filing Notice.pdf

28

 
7-US Patent Docs

            00-US Pat App Trans.pdf

             01-US Pat Fee Trans.pdf

             02-US Pat Declaration.pdf

             03-US Pat App.pdf

             04-US Pat Figures.pdf

           ]05-US Pat Power of Attorney.pdf

           06-US Pat Data.pdf

           07-US Pat Filing.pdf

8- US Patent Docs.zip

9- US Patent Filing Receipt 20100615.pdf

29

 Schedule 2.6(c)

the “Software”

The
Seller’s software utilizes patent pending technologies and methodologies to
create direct, targeted, effective and inexpensive marketing campaigns for its
clients. 

Using
this incentive-based marketing solution, combined with directed interest
promotions and its tiered exponential reward structure it results in a
successful and widespread unique viral marketing campaign with measurable
impact.

“This incentive marketing
systems tap into the power of shared interests and personal relationships
between individuals in a target market to initiate a chain reaction where your
brand, message, or sales offering is passed from one person to another in rapid
succession. The unique incentive structure builds a momentum for our clients'
message, ensuring that those who respond to the campaign tell their friends,
family, and associates, who in turn tell their friends, family, and associates,
and so on.” 

the “Patent”

System
and Method for Social Network Marketing

Field
of the Invention/Patent

Embodiments
of the present invention relate to social network marketing system, in which
information about a product or service is disseminated to a plurality of users
who are encouraged to provide their contact information to the marketer in
exchange for the possibility of obtaining a reward from the marketer. The
system utilizes relationships among the users to encourage them to provide
their information to the marketer, in a multi-level, exponential, potential
reward structure. 

Patent
Filing and Documentation provided in digital copy 

30

 Schedule 2.11(b)

Seller’s Operation Statement

None

31

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}]]