Document:

ASSIGNMENT

      

      This
        Assignment dated November 9, 2006 evidences an assignment by WAA, LLC, a
        limited
        liability company organized under the laws of the State of Delaware
        (“WAA”),
        to
Zeros
        & Ones, Inc., a corporation organized under the laws of the State of Nevada
        (“ZROS”),
        and certain related agreements between WAA and ZROS.

      

      BACKGROUND

      

      On
        March
        15, 1999, Lockheed Martin Corporation (“Lockheed”) and Centerpoint Broadband
        Technologies, Inc. (“Centerpoint”), entered into a Technology License Agreement
        with respect to several patents and patent applications owned by Lockheed
        or its
        wholly owned subsidiary, Loral Aerospace Corp. (the “Technology License
        Agreement”). Under the Technology License Agreement, Lockheed granted to
        Centerpoint rights under certain patents and patent applications. On or about
        April, 2000, the Technology License Agreement was amended (the “First License
        Amendment”). On October 8, 2000, the Technology License Agreement was amended
        further (the “Second License Amendment”). The Technology License Agreement has
        not been amended or modified in any other respect. . The Technology License
        Agreement, the First License Amendment and the Second License Amendment may
        sometimes be referred to herein as the “License”.

      

      On
        August
        12, 2002, Centerpoint filed for bankruptcy protection in the United States
        Bankruptcy Court, Northern District of California, Bankruptcy Petition #02-54427
        (the “Bankruptcy”). On November 24, 2004, WAA filed a motion in the Bankruptcy
        seeking approval of sale of the License from Centerpoint to WAA, as well
        as sale
        of the patent applications and related technologies and materials listed
        on the
        exhibits to the Motion. On December 15, 2004, the court approved the motion
        and
        ordered the sale to proceed. In connection therewith, on December 15, 2004,
        Centerpoint transferred to WAA its ownership interest under certain patents
        and
        patent applications listed in an Exhibit A to those documents and attached
        to
        this Assignment as Exhibit 1, and also its interest as licensee in certain
        other
        patents that had been licensed from Lockheed under the Technology License
        Agreement, also listed in Exhibit 1 to this Assignment.

      

      WAA
        has
        agreed to assign to ZROS
        all
        of its right, title and interest to all patent applications purchased from
        Centerpoint, including
        any reissues, divisionals, continuations, continuations-in-part, renewals,
        extensions and foreign counterparts of any of the foregoing (all referred
        to
        below collectively as the “Patents”), and
        all
        license interest it holds in the patents licensed from Lockheed pursuant
        to the
        License, all of which are listed in Exhibit 1 (referred to below as the
“Licensed Patents”), and specifically to transfer and assign to ZROS the
        Technology License Agreement, including both amendments.

      

      AGREEMENT

      

      1.    Assignment
        and Sale.
        In
        consideration of the purchase price specified below, WAA now assigns to ZROS
        all
        of its right, title and interest in the Patents and the License, including
        any
        rights to recover damages or other remedies in respect of all infringements
        of
        the Patents or the Licensed Patents, whether committed before or after the
        date
        of this Assignment. WAA further assigns and sells to ZROS any and all designs,
        drawings, software, boards, prototypes, hard assets, documents, inventory,
        commercial products, physical embodiments and materials in the possession
        of WAA
        received or purchased from Centerpoint (f/k/a Zaffire) pertaining to the
        Patents
        or the License. This assignment is intended to be broadly construed to include
        all intellectual property WAA purchased from Centerpoint, whether during
        the
        Bankruptcy, or before or after the Bankruptcy.

       

      
        ____________________________________

        Assignment
          dated November 9, 2006

        WAA,
          LLC,
          and
          Zeros & Ones, Inc.

        Page
          1
of
          7 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      2.    Price.
        Simultaneously with the execution of this Assignment, ZROS is delivering
        to WAA
        (a) the sum of $150,000 in cash by wire transfer in immediately available
        funds
        (the “Cash”), (b) a Secured Promissory Note with principal amount of $350,000
        (the “Note”) and (c) a warrant to purchase 7,500,000 shares of Common Stock of
        ZROS at an exercise price of $0.07 per share (the current fair market value
        of
        that stock) (the “Warrant”).

      

      3.    Further
        Assurances.
        WAA
        will, at the request and cost of ZROS, execute such documents and do such
        things
        as ZROS may reasonably request to enable ZROS, or its nominee, to enjoy the
        benefit of the rights now assigned to it.

      

      4.    Representations
        and Warranties.

      

      4.1   Seller
        Warranties.
        WAA
        represents and warrants to ZROS that: 

      

      (a)    WAA
        has
        not previously transferred or pledged any rights in the Patents or the License
        to another party;

      

      (b)    The
        First
        License Amendment has been duly signed by Lockheed and Centerpoint in the
        form
        previously provided to ZROS;

      

      (c)    Centerpoint
        paid the $6,000,000 payment to Lockheed pursuant to the Second License
        Amendment;

      

      (d)    To
        the
        actual knowledge of WAA, without review or investigation, no dispute with
        Lockheed currently exists regarding the validity, enforceability or exclusive
        nature of the License;

      

      (e)    To
        the
        actual knowledge of WAA, without review or investigation, no dispute exists
        with
        Lockheed or any third party regarding any alleged intellectual property
        infringement of or by the Patents or the License;

      

      (f)    
To
        the
        actual knowledge of WAA, without review or investigation, neither Centerpoint
        nor WAA has granted any material license or other right to any third party
        with
        respect to the Patents or License;

      

      (g)    WAA
        has
        and will transfer good title to the License and Buyer will acquire good title
        to
        the License, free and clear of all liens and encumbrances.  

      

      (h)    WAA
        is a
        limited liability company duly organized, validly existing and in good standing
        under the laws of the State of Delaware and has all requisite power and
        authority to own, lease and operate its properties and assets and to carry
        on
        its business as it is presently being conducted. WAA is duly qualified and
        in
        good standing to do business in each jurisdiction in which the nature of
        its
        business or the ownership or leasing of its properties makes such qualification
        necessary, except where the failure to so qualify could not reasonably be
        expected, either individually or in the aggregate, to have a material adverse
        effect on the Patents, the License, or the ability to enter into this
        Assignment. Dana Waldman is the sole owner of WAA.

       

      
        
          ____________________________________

          Assignment
            dated November 9, 2006

          WAA,
            LLC,
            and
            Zeros & Ones, Inc.

          Page 2
            of
            7 

           

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      (i)    WAA
        has
        all requisite power and authority, and has taken all action necessary, to
        execute and deliver this Assignment and each other agreement, document,
        instrument or certificate contemplated by this Assignment and to consummate
        the
        transactions contemplated hereby. This Assignment has been duly and validly
        executed and delivered by WAA and this Assignment shall constitute a valid
        and
        legally binding obligation of WAA, enforceable against WAA in accordance
        with
        its terms, except as such enforceability may be limited by (a) bankruptcy,
        insolvency, moratorium, reorganization and other similar laws affecting
        creditors’ rights generally and (b) the general principles of equity, regardless
        of whether asserted in a proceeding in equity or at law. 

      

      (j)    The
        execution, delivery and performance of this Assignment shall not, directly
        or
        indirectly (with or without notice or lapse of time): 

      

      (i)     contravene,
        conflict with or result in a violation of any provision of the Articles of
        Organization or Operating Agreement of WAA or any resolution or other action
        adopted or taken by the management or members of WAA;

      

      (ii)    contravene,
        conflict with or result in a violation of any laws or judicial
        orders;

      

      (k)    No
        brokerage fee or commission, or consulting fee, is or will become due and
        owing
        as a result of this Assignment.

      

      4.2    Buyer
        Warranties.
        ZROS
        hereby represents and warrants to WAA that:

      

      (a)    ZROS
        is a
        corporation duly organized, validly existing and in good standing under the
        laws
        of the State of Nevada and has all requisite power and authority to own,
        lease
        and operate its properties and assets and to carry on its business as it
        is
        presently being conducted. ZROS is duly qualified and in good standing to
        do
        business in each jurisdiction in which the nature of its business or the
        ownership or leasing of its properties makes such qualification necessary,
        except where the failure to so qualify could not reasonably be expected,
        either
        individually or in the aggregate, to have a material adverse effect on the
        ability to enter into this Assignment.

      

      (b)    ZROS
        has
        all requisite power and authority, and has taken all action necessary, to
        execute and deliver this Assignment and each other agreement, document,
        instrument or certificate contemplated by this Assignment and to consummate
        the
        transactions contemplated hereby. This Assignment has been duly and validly
        executed and delivered by ZROS and this Assignment shall constitute a valid
        and
        legally binding obligation of ZROS, enforceable against ZROS in accordance
        with
        its terms, except as such enforceability may be limited by (a) bankruptcy,
        insolvency, moratorium, reorganization and other similar laws affecting
        creditors’ rights generally and (b) the general principles of equity, regardless
        of whether asserted in a proceeding in equity or at law. 

       

      
        
          ____________________________________

          Assignment
            dated November 9, 2006

          WAA,
            LLC,
            and
            Zeros & Ones, Inc.

          Page 3
            of
            7 

        

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      (c)    The
        execution, delivery and performance of this Assignment shall not, directly
        or
        indirectly (with or without notice or lapse of time): 

      

      (i)    contravene,
        conflict with or result in a violation of any provision of the Articles of
        Organization or Bylaws of ZROS or any resolution or other action adopted
        or
        taken by the management or members of ZROS;

      

      (ii)   contravene,
        conflict with or result in a violation of any laws or judicial
        orders;

      

      4.3    Warranty
        Exclusions. Except
        as
        set forth in this Section 4, WAA makes no representation or warranty regarding
        the Patents, the License or this Assignment. ZROS understands that WAA and
        Dana
        Waldman have not been monitoring or prosecuting the patent portfolio, and
        makes
        no representation as to whether any patents or patent applications have expired
        or lapsed. Furthermore, other than as set forth in this Section 4, WAA makes
        no
        representation or warranty as to: whether any third party owns or claims
        any
        rights which would be infringed by practicing the inventions disclosed in
        the
        Patents or the Licensed Patents; nor as to the efficacy or usefulness of
        the
        Patents or Licensed Patents; nor as to whether the Patents or Licensed Patents
        are or will be valid or subsisting or (in the case of an application) will
        proceed to grant.

      

      4.4    Limitation
        of Liability. The
        liability of either party to the other for any breach of this Assignment,
        any
        negligence or arising in any other way out of the subject matter of this
        Assignment, will not extend to any indirect damages or losses, or any loss
        of
        profits, loss of revenue, loss of data, loss of contracts or opportunity,
        whether direct or indirect, even if the party bringing the claim has advised
        the
        other of the possibility of those losses, or if they were within the other
        party's contemplation.

      

      4.5    Disclaimer
        of Implied Warranties.
        The
        express undertakings and warranties given by the parties in this Assignment
        are
        in lieu of all other warranties, conditions, terms, undertakings and
        obligations, whether express or implied by statute, common law, custom, trade
        usage, course of dealing or in any other way (including the implied warranty
        of
        merchantability). All of these are excluded to the fullest extent permitted
        by
        law.

      

      5.    Related
        Transactions.
        Following the closing of this assignment, the parties will negotiate in good
        faith the terms of a definitive employment agreement under which Dana Waldman
        shall become the Chief Executive Officer and a member of the Board of Directors
        of ZROS. 

      

      6.    Governing
        Law.
        This
        Assignment is governed by, and is to be construed in accordance with the
        laws of
        the State of California. The state and federal courts located within the
        State
        of California will have exclusive jurisdiction to deal with any dispute which
        has arisen or may arise out of or in connection with this
        Assignment

       

      
        
          ____________________________________

          Assignment
            dated November 9, 2006

          WAA,
            LLC,
            and
            Zeros & Ones, Inc.

          Page 4
            of
            7 

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      7.    Indemnity.
        WAA
        will indemnify and hold harmless ZROS and its officers and directors from
        any
        claims, liabilities, or damages relating to a breach of the representations
        and
        warranties of WAA provided herein. In the event of any such claims or disputes,
        the maturity date of the Note, and vesting of the Warrant, shall be deferred
        until such claim or dispute is resolved. The liability of WAA shall be limited
        to the consideration actually paid hereunder, and any such liability shall
        be
        offset against the consideration payable hereunder. 

      

      8.    Publicity.
        No
        party to this Assignment shall issue any press release or make any public
        announcement regarding the transactions contemplated by this Assignment without
        the prior approval of the other party.

      

      9.    Confidential
        Information.
        The
        parties acknowledge that the transaction described in this Assignment is
        of a
        confidential nature and shall not be disclosed except to advisors with a
        need to
        know, as required by Law, upon mutual agreement, or until such time as the
        parties make a public announcement regarding the transaction. 

      

      10.         
        Expenses.
        The
        parties shall each bear its own expenses, including attorneys’, accountants’ and
        other professionals’ fees, incurred in connection with the negotiation and
        execution of this Assignment, provided, however, that ZROS will reimburse
        the
        reasonable legal fees of WAA.

      

      11.          Specific
        Performance.
        WAA and
        ZROS acknowledge and agree that the Breach of this Agreement by a party would
        cause irreparable damage to the other and that the non breaching party may
        not
        have an adequate remedy at law. Therefore, the obligations of WAA and ZROS
        under
        this Agreement, including, without limitation, WAA’s obligation to transfer the
        Patents and License to ZROS, and ZROS’s obligation to purchase the Patents and
        License from WAA, shall be enforceable by a decree of specific performance
        issued by any court of competent jurisdiction, and appropriate injunctive
        relief
        may be applied for and granted in connection therewith. Such remedies shall,
        however, be cumulative and not exclusive and shall be in addition to any
        other
        remedies which any party may have under this Assignment or
        otherwise.

      

      12.         
        Waiver
        of Jury Trial.
        Each
        party hereto hereby expressly waives any right to trial by jury of any claim,
        demand, action or cause of action arising under or in connection with this
        Assignment or the transactions contemplated hereby.

      

      13.         
        Entire
        Agreement; Amendments and Waivers.
        This
        Assignment, including the schedules and exhibits hereto, represents the entire
        understanding and agreement between the parties hereto with respect to the
        subject matter hereof and can be amended, supplemented or changed, and any
        provision hereof can be waived, only by written instrument making specific
        reference to this Assignment signed by the party against whom enforcement
        of any
        such amendment, supplement, modification or waiver is sought. 

      

      15.          Notices.
        All
        notices, requests, approvals, consents, demands, claims and other communications
        required or permitted to be given under this Agreement shall be in writing
        and
        shall be served personally, or sent by a national overnight delivery or courier
        company, or by fax or email delivery. Such notices shall be deemed given
        upon
        delivery.

       

      
        
          ____________________________________

          Assignment
            dated November 9, 2006

          WAA,
            LLC,
            and
            Zeros & Ones, Inc.

          Page 5
            of
            7 

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      16.    Severability.
        In the
        event that any one or more of the provisions contained in this Assignment
        or in
        any other instrument referred to herein, shall, for any reason, be held to
        be
        invalid, illegal or unenforceable in any respect, then to the maximum extent
        permitted by law, such invalidity, illegality or unenforceability shall not
        affect any other provision of this Assignment or any other such
        instrument.

      

      17.    Binding
        Effect; Third Party Beneficiaries; Assignment.
        This
        Assignment shall be binding upon and inure to the benefit of the parties
        hereto
        and their respective successors and permitted assigns. Nothing in this
        Assignment shall create or be deemed to create any rights as third party
        beneficiaries to this Agreement in any person not a party to this Agreement,
        except as provided below; provided, however, that any person that is not
        a party
        to this Assignment but, by the terms hereof is entitled to indemnification,
        shall be considered a third party beneficiary of this Agreement, with full
        rights of enforcement as though such person was a signatory to this Agreement.
        No assignment of this Agreement or of any rights or obligations hereunder
        may be
        made by either party (by operation of law or otherwise) without the prior
        written consent of the other party hereto and any attempted assignment without
        the required consent shall be void.

      

      18.    Attorneys’
        Fees and Costs.
        In the
        event of any action at law or in equity between the parties hereto to enforce
        any of the provisions hereof, the unsuccessful party to such litigation shall
        pay to the successful party all costs and expenses, including reasonable
        attorneys’ fees, incurred therein by such successful party; and if such
        successful party shall recover judgment in any such action or proceeding,
        such
        costs, expenses and reasonable attorneys’ fees may be included in and as part of
        such judgment. The successful party shall be the party who is entitled to
        recover its costs of suit, whether or not the suit proceeds to final judgment.
        A
        party not entitled to recover its costs shall not recover attorneys’
fees.

      

      19.    Counterparts.
        This
        Agreement may be executed in one or more counterparts, each of which shall
        be
        deemed an original, but all of which together shall constitute one and the
        same
        instrument.

      

      20.    Representation
        by Counsel.
        Each
        party hereto represents and agrees with each other that it has been represented
        by or had the opportunity to be represented by independent counsel of its
        own
        choosing, and that it has had the full right and opportunity to consult with
        its
        respective attorney(s) to the extent, if any, that it desired, it availed
        itself
        of this right and opportunity, that it or its authorized officers (as the
        case
        may be) have carefully read and fully understand this Assignment in its entirety
        and have had it fully explained to them by such party’s respective counsel, that
        each is fully aware of the contents thereof and its meaning, intent and legal
        effect, and that it or its authorized officer (as the case may be) is competent
        to execute this Assignment and has executed this Assignment free from coercion,
        duress or undue influence.

      

      21.    No
        Interpretation Against Drafter.
        This
        Agreement is the product of negotiations between the parties hereto represented
        by counsel and any rules of construction relating to interpretation against
        the
        drafter of an agreement shall not apply to this Agreement and are expressly
        waived.

       

      
        
          ____________________________________

          Assignment
            dated November 9, 2006

          WAA,
            LLC,
            and
            Zeros & Ones, Inc.

          Page 6
            of
            7 

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS whereof
        WAA and ZROS
        have
executed
        this Assignment on November 9, 2006.

      

      WAA,
        LLC

      

      
        	
                By:

              	/s/ Dana
                Waldman	 	 	 
	 	
                
Dana
                Waldman, Manager	 	 	
              

      Zeros
        & Ones, Inc.

       

      
        
          	
                  By:

                	/s/ Mark
                  Laisure	 	 	 
	 	
                  
Mark
                  Laisure, President	 	 	
                

        

         

         

        ____________________________________

      

      
        
          Assignment
            dated November 9, 2006

          WAA,
            LLC,
            and
            Zeros & Ones, Inc.

          Page 7
            of
            7Unassociated Document

    SECURED
      PROMISSORY NOTE

    

    
      	
              $350,000.00

            	
              November
                9, 2006

            

    

    

    For
      value
      received, Zeros
      & Ones, Inc. ("Company"),
      promises to pay to the order of WAA, LLC (herein,
      together with its successors and assigns who become holders of this Note, the
      "Holder"), the principal sum of Three Hundred and Fifty Thousand Dollars
      $350,000.00 (the "Principal Amount"), together with interest thereon at the
      rate
      of 8% per annum (subject to adjustment as set forth in Section 1 below).

     

    1. Interest.
      Interest shall accrue beginning on the date of this Note and shall continue
      to
      accrue on the unpaid principal hereof until this Note is paid in full or
      otherwise converted as herein provided. Interest shall be paid quarterly on
      each
      January 1, April 1, July 1 and October 1, commencing with January 1, 2007.
      Notwithstanding the provisions of this Note, if the rate of interest payable
      hereunder is limited by law, the rate payable hereunder shall be the lesser
      of:
      (a) the rate set forth in this Note; or (b) the maximum rate permitted
      by law. Upon an Event of Default, as defined in Section 4, and so long as that
      Event of Default continues, the interest rate shall increase from 8% per annum
      to 10% per annum from the date of the Event of Default to the date of
      payment.

     

    2. Principal
      Payments.

     

    2.1 Pro
      Rata Payments.
      It is
      understood that the Company also owes to Mark Laisure and Scott Fairbairn
      approximately $350,000 each (the “Management Debt”). For as long as any amount
      is outstanding under this Note, the Company will not make any payment of the
      Management Debt unless at the same time it pays under this Note an amount equal
      to one half of the payment of Management Debt. For example, if the Company
      repays $100,000 to Mark Laisure and $100,000 to Scott Fairbairn for a total
      repayment of $200,000 of Management Debt, the Company must also repay $100,000
      of the amount outstanding under this Note. The timing and total amounts of
      such
      repayments of Management Debt and amounts owed under this Note shall be
      determined (subject to Section 2.2 below) by agreement between Laisure,
      Fairbairn and Waldman.

     

    2.2 Maturity
      Date.
      If not
      previously paid pursuant to the provisions above, all principal and any unpaid
      interest under this Secured Promissory Note shall be due on November 9, 2009,
      three years from the date of issuance of this Note. Upon the occurrence of
      an
      Event of Default, Holder may declare all amounts outstanding under the Note
      immediately due and take any other action provided under the Security Agreement
      or otherwise allowed by law.

     

     

      
        

      

    

    Promissory
      Note Zeros & Ones, Inc. to WAA, LLC

    
      November
        9, 2006

    

    Page
      1
      of
      7

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    2.3 Optional
      Prepayment.
      The
      Company shall have the right to prepay this Note at any time. 

     

    2.4 Method
      of Payment.
      All
      payments of principal and interest under this Note shall be made in lawful
      money
      of the United States of America in cash or cash equivalent at c/o Dana Waldman,
      128 Waverly Place, Mountain View, CA 94040, or
      at
      such other place as Holder shall have designated in writing.

     

    3. Security
      Interest.
      

     

    3.1 Grant.
      The
      Company hereby grants to Holder a security interest in and to the Collateral
      (as
      defined in Section 3.2 below) to secure the due, punctual and unconditional
      performance by the Company of its obligations under this Note. The Company
      agrees to participate in the preparation of and to execute one or more financing
      statements and appropriate filings with the U.S. Patent and Trademark Office
      as
      required and to take any other acts as the Holder may reasonably request, in
      order to evidence or to perfect the security interest granted herein. However,
      this Note is a full recourse note and Holder may, at its option, elect to
      proceed directly against the Company, whether before, after or without
      proceeding against any or all of the Collateral.

    

    3.2 Collateral.
      “Collateral” shall mean all of the Company’s right, title and interest in and to
      the following items of personal property of the Company, whether tangible or
      intangible, presently owned or subsequently acquired, wherever
      located:

    

    (a)
      all
      of
      the assets transferred to the Company under the Assignment dated the same date
      as this Note from WAA, LLC to the Company; and

     

    (b)
      all
      proceeds and products of any property described in clause (a) or this clause
      (b), whether received upon the sale, lease, transfer, damage or destruction
      of
      such property or otherwise.

     

    3.3 Remedies.
      Upon
      the occurrence and continuation of an Event of Default under this Note the
      Holder shall have the right to exercise any or all available legal and equitable
      rights and remedies available to a secured party either directly or through
      an
      agent or agents. The Company hereby irrevocably appoints the Holder as its
      lawful attorney-in-fact with full power to take all actions and execute and
      acknowledge all documents with respect to the Collateral that the Holder may
      deem necessary or advisable to secure any of the Holder’s rights as provided
      herein upon the occurrence of an Event of Default. This appointment as
      attorney-in-fact is irrevocable as it is coupled with an interest.

     

    
      

    

    Promissory
      Note Zeros & Ones, Inc. to WAA, LLC

    November
      9, 2006

    
      Page
        2
        of
        7

    

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    

    3.4 Termination
      of Security Interest.
      The
      security interest of Holder under this Note shall terminate upon the complete
      and unconditional performance of all obligations of the Company under this
      Note.
      Upon such termination, the Holder shall execute and deliver to the Company
      any
      instruments reasonably requested by the Company to evidence the termination
      of
      the security interest hereby created. 

    

    4. Events
      of Default.
      The
      occurrence of any of the following shall be deemed to be an event of default
      (an
      "Event of Default"):

    

    4.1 failure
      to make any payment of principal, interest or other amounts when due according
      to the terms of this Note;

    

    4.2 failure
      to comply with any other covenant or obligation under this Note, if that failure
      is not subject to cure, or remains uncured for a period of thirty days after
      written notice from the Holder;

    

    4.3 both
      Mark
      Laisure and Scott Fairbairn cease to be employed by the Company (or a subsidiary
      of the Company) or either of them sells capital stock (or securities convertible
      into or exerciseable for capital stock) representing more than 2% of the voting
      power of the Company’s capital stock; provided, however, that more than 2% of
      the voting power of the Company’s capital stock may be transferred without
      constituting a default under this Note if the transfer is a private transfer
      to
      a family member or to a controlled entity of Mark Laisure or Scott Fairbairn;
      provided, further, that any further transfer by that family member or entity
      controlled by Laisure or Fairbairn shall be treated as a transfer by Laisure
      or
      Fairbairn; 

     

    4.4 The
      Company or any of its subsidiaries pays any of the Management Debt, without
      the
      corresponding pro rate payment required under Section 2.1 of this
      Note;

     

    4.5 The
      Company or any of its subsidiaries (i) is generally not paying its debts as
      they
      become due, (ii) files any petition or answer seeking for itself any
      reorganization, arrangement, composition, readjustment, liquidation, dissolution
      or similar relief under any present or future bankruptcy, insolvency or similar
      statute, law or regulation (a "Filing"), (iii) files any answer admitting or
      not
      contesting the material allegations of a petition filed against the Company
      or
      such subsidiary in any such proceeding, (iv) seeks, consents to or acquiesces
      in
      the appointment of any trustee, custodian, receiver or liquidator of the Company
      or such subsidiary all or any substantial part of its properties (an
      "Appointment"), or (v) takes any action for the purpose of any of the
      foregoing; or

     

    
      

    

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      Note Zeros & Ones, Inc. to WAA, LLC

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    4.6 a
      Filing
      is made against the Company or any of its subsidiaries without its consent
      and
      is not stayed or dismissed within 60 days, or an order for an Appointment is
      entered. 

     

    5. Covenants.
      The
      Company covenants and agrees that, until the payment in full of all principal
      and interest with respect to this Note together with any other amounts then
      owed
      hereunder, or unless Holder consents:

     

    5.1 Mergers
      and Consolidations.
      The
      Company will not merge or consolidate with or into any other corporation or
      other entity (or cause a subsidiary of the Company to merge or consolidate
      with
      or into any entity other than a wholly owned subsidiary of the Company), unless
      the stockholders (excluding any Acquiring Stockholder) of the Company
      immediately prior to any such transaction are holders immediately after that
      event of at least a majority of the voting power of the surviving corporation
      or
      entity, or of the acquiring corporation or entity or the entity controlling
      the
      surviving corporation. An “Acquiring Stockholder” means any person or entity
      that holds stock of the Company prior to the transaction in question, and that,
      together with any affiliates, owns more than 50% of the voting capital stock
      of
      the surviving corporation following the transaction; 

    

    5.2 Asset
      Transfers.
      The
      Company will not sell or otherwise transfer more than 50% in value of the assets
      of the Company (including the assets of its subsidiaries), or effect any series
      of related transactions resulting in the sale or other transfer of more than
      50%
      in value of the assets of the Company (including the assets of its
      subsidiaries), excluding, in each case, sales of inventory in the ordinary
      course of business;

     

    5.3 Dividends
      and Repurchases.
      The
      Company will not declare or make any dividend payment (other than a stock
      dividend), or make any other distribution of cash, property or assets, in
      respect of any of its capital stock, or purchase, redeem, retire or otherwise
      acquire for value any shares of its capital stock.

    

    5.4 Application
      of Equity Financing.
      The
      Company will apply to payment of the Note (and the Management Debt) at least
      a
      portion (with the exact amount to be agreed by Dana Waldman and the Company)
      of
      any funds raised from the sale of common stock, preferred stock, debt that
      is
      convertible to stock, options or warrants to purchase stock, or other equity
      securities, excluding, however, proceeds from the sale of shares of common
      stock
      issued or issuable hereafter to employees, officers, directors, contractors,
      consultants or advisers to, the Company or any subsidiary upon the exercise
      of
      stock options or pursuant to restricted stock purchase agreements that are
      approved by a majority of the Company’s Board of Directors or Securities
      Issuance Committee. 

     

    
      

    

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    6. Waiver
      of Presentment, Notice and Other Formalities.
      The
      Company and any endorser or other person liable under this Note (if any)
      expressly agree that (a) presentment, notice of dishonor, and protest, notice
      of
      protest and any and all demands or notices are hereby waived; (b) this Note
      shall be binding upon the Company and any endorser (if any) and their respective
      successors in interest; and (c) this Note and any payment hereunder may be
      extended from time to time without in any way affecting liability
      hereunder.

    

    7. Amendments
      and Waivers.
      This
      Note may only be amended or waived with the written consent of the Holder and
      the Company.

     

    8. Replacement
      of Note.
      In the
      case of the loss, theft or destruction of this Note, the Company shall execute
      and deliver to the Holder a replacement hereof upon delivery by the Holder
      to
      the Company of evidence reasonably satisfactory to the Company of the loss,
      theft or destruction along with an indemnity agreement reasonably satisfactory
      in form and substance to the Company.

     

    9. Assignment.
      This
      Note may not be assigned by the Company without the prior written consent of
      the
      Holder. Any party to whom the Holder transfers the Note takes it subject to
      any
      defense that the Company could raise against WAA, LLC. A merger or consolidation
      of the Company (or Holder) with or into any other corporation or other entity
      shall be deemed to be an assignment hereof,
      unless
      immediately after that event the stockholders (excluding any Acquiring
      Stockholder as defined in Section 5.1 above) of the Company (or Holder)
      immediately prior to any such transaction are holders of at least a majority
      of
      the voting power of the surviving corporation or entity, or of the acquiring
      corporation or entity or the entity controlling the surviving corporation.
      

     

    10. Governing
      Law; Jurisdiction.
      This
      Note shall be governed by and construed and enforced in accordance with the
      laws
      of the State of California, without giving effect to its conflicts of laws
      principles. The parties consent to the personal jurisdiction of the state and
      federal courts located in California, for purposes of any action under or
      pertaining to this Note.

     

    11. Severability.
      If one
      or more provisions of this Note are held to be unenforceable under applicable
      law, such provision shall be excluded from this Note and the balance of the
      Note
      shall be interpreted as if such provision were so excluded and shall be
      enforceable in accordance with its terms. 

     

    12. Attorneys’
      Fees and Costs.
      If any
      action at law or in equity is necessary to enforce or interpret the terms of
      this Note, the prevailing party shall be entitled to reasonable attorneys’ fees,
      costs and disbursements in addition to any other relief to which such party
      may
      be entitled.

     

    
      

    

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    13. Entire
      Agreement.
      This
      Note, together with the list of assets transferred to the Company under the
      Assignment referred to in Section 3.2, constitutes the entire agreement among
      the parties hereto with respect to the subject matter hereof and supersedes
      all
      prior and contemporaneous negotiations, agreements and
      understandings.

     

    14. Counterparts;
      Electronic Delivery.
      This
      Note may be executed in one or more counterparts, each of which shall be deemed
      an original, but all of which together shall constitute one and the same
      instrument. Electronic delivery of an executed counterpart of this Note (whether
      by fax, email or otherwise) shall be equally as effective as delivery of an
      originally executed tangible copy of the same. Any party doing so shall also
      deliver the originally executed hard copy of same promptly thereafter, but
      the
      failure by such party to do so shall not affect the validity, enforceability
      and
      binding effect of this Note.

     

    (SIGNATURES
      ON FOLLOWING PAGE)

     

    
      

    

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    IN
      WITNESS WHEREOF, the Company has issued this Note on the day and year written
      on
      the first page of the Note.

     

     

     

    
      	 	 	 
	 	ZEROS
              & ONES, INC.
	 	
              

            
	 
 	 
 	 
 
	 	By:  	/s/
              Mark M. Laisure
	 	
               

              
                
                  Title:    
                    

                

              

            	
              
President
	 	 	
              

            

    

     

    
      	 	 	 
	 	
              AGREED
                AND ACCEPTED BY HOLDER:

               

              
                WAA,
                  LLC

              

            
	 
 	 
             	 
 
	
            	By:  	
              /s/
                Dana
                Waldman

            
	 	
              
Dana
              Waldman

    

     

    
      

    

    Promissory
      Note Zeros & Ones, Inc. to WAA, LLC

    November
      9, 2006

    
      Page 7
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