Document:

Exhibit 4.2

            REGISTRATION RIGHTS AGREEMENT

             

            This Registration Rights Agreement (the “Agreement”) is made and entered into as of October 28, 2008 by and among QUALITY SYSTEMS, INC., a California corporation (the “Parent”), and PERRY SNYDER and DONALD GOOD (each a
            “Stockholder Representative” and collectively, the “Stockholder Representatives”) on behalf of those Persons listed as Holders on Schedule I hereto (“Holders”).

            This Agreement is made in connection with the Agreement and Plan of Merger, dated as of the date hereof (the “Merger Agreement”) by and among (i) the Parent, (ii) NextGen Healthcare Information Systems, Inc., a California corporation and a wholly-owned subsidiary of the Parent (iii) Ruth Merger Sub, Inc., a Maryland
            corporation and a wholly-owned subsidiary of NextGen, (iv) Practice Management Partners, Inc., a Maryland corporation, and (v) the Stockholder Representatives.

            Unless otherwise defined herein, capitalized terms so used herein and not defined shall have the same meaning as provided in the Merger Agreement.

            The parties hereby agree as follows:

            
                	
                            1.

                        	
                            Certain Definitions.

                        

            

            As used in this Agreement, the following terms shall have the following respective meanings:

            “Business Day” means any day, other than a Saturday, Sunday or legal holiday, on which banks in California are open for business.

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

            “Common Stock” means the Common Stock of the Parent.

            “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor statute thereto, and the rules and regulations of the Commission promulgated thereunder, all as the same shall be in effect at the time.

            “Holders” means the Holders referred to in the Preamble.

            “Stockholder Representatives” means Don Good and Perry Snyder.

            “Person” means an individual, partnership, corporation, association, trust, joint venture, unincorporated organization and any government, governmental department or agency or political subdivision thereof.

             

            
                

                
                    	
                                

                                

                            	
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            “Registrable Securities” means (i) any Common Stock held by any Holder that was acquired pursuant to the Merger Agreement on the Closing Date, (ii) any Common Stock issued or issuable as a result of a stock split, stock dividend, recapitalization or similar event with respect to securities described in clause
            (i) above and (iii) securities issued in replacement or exchange of any of the securities issued in clauses (i) or (ii) above; provided, however, that notwithstanding anything to the contrary contained herein, “Registrable Securities” shall not at any time include any shares of Common Stock (i) registered and sold pursuant to the Securities Act, or (ii) eligible for sale to the public pursuant to Rule 144 promulgated under the Securities Act.

            “Registration Expenses” means any and all expenses incident to the Parent’s performance of or compliance with this Agreement, including, without limitation, all registration, filing, regulatory fees, all fees and expenses of complying with securities or blue sky laws, all word processing, duplicating and
            printing expenses, all messenger and delivery expenses, any transfer taxes, the fees and expenses of the Parent’s legal counsel and independent public accountants, including the expenses of any special audits or “cold comfort” letters required by or incident to such performance and compliance, fees and disbursements of counsel for the Holders, and any fees and disbursements of underwriters (if any) customarily paid by issuers or sellers of securities, and any
            underwriting discounts and commissions. Registration Expenses shall not include Nasdaq listing fees incurred by Parent attributable to the increase in the number of Parent’s outstanding shares as a result of the issuance of the Registrable Securities under the terms of the Merger Agreement.

            “Requested Registration” has the meaning set forth in Section 2(a).

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

            
                	
                            2.

                        	
                            Registration.

                        

            

            
                	
                             

                        	
                            (a)

                        	
                            Demand Registration.

                        

            

            At any time for a period of 180 days after the Closing Date of the Merger Agreement, upon written request by the Stockholder Representatives that the Parent effect the registration under the Securities Act of all of the Registrable Securities held by the Holders (a “Requested Registration”), the Parent will use its best
            efforts to (A) effect the registration under the Securities Act of such Registrable Securities and (B) effect the filing, within twenty-one (21) days after receipt of such request, of a registration statement on Commission Form S-3 if the Parent is qualified to file a registration statement on Commission Form S-3 or any successor or similar short-form registration statement (collectively, “Commission Form S-3”). The
            Stockholder Representatives may request, and the Parent shall be required to effect upon receipt thereof as provided herein, one (1) registration under Commission Form S-3 pursuant to this Section 2(a)(i).

             

            
                

                
                    	
                                

                                

                            	
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            (b)       Registration Statement Form Filing. The Parent shall, if permitted by law, effect any registration requested under this Section 2 by the filing of a registration statement on Commission Form S-3 with respect to
            “Transactions Involving Secondary Offerings” as described in General Instruction I.B.3 of Commission Form S-3.

            (c)       Expenses. The Holders shall pay all Registration Expenses incurred in connection with the Requested Registration, which amounts shall be paid from the Escrow Account or, if the Escrow Amount at such time is not sufficient, from the Stockholder Representatives.

            (d)       Impact of Certain Material Transactions/Disclosures. Notwithstanding anything in paragraph (a) of this Section 2, the Parent shall have the right to delay any registration of Registrable Securities
            requested pursuant to paragraph (a) of this Section 2 for up to ninety (90) days if (i) such registration would, in the judgment of the Parent’s Board of Directors, substantially interfere with any material transaction being considered at the time of receipt of the request for a Requested Registration or (ii) the Parent has been advised by legal counsel that such filing or effectiveness would require disclosure of a material
            financing, acquisition or other corporate transaction, and the Board of Directors of the Parent determines in good faith that such disclosure is not in the best interests of the Parent and its stockholders.

            (e)       Required Holder Information. Notwithstanding anything to the contrary herein or in the Merger Agreement, a Holder will not be entitled to any of the rights hereunder (including, but not limited to, being named as a selling security holder in the registration statement or being
            entitled to use the registration statement for resales of Common Stock or other securities of the Parent that would otherwise qualify as Registrable Securities), and such rights will be permanently forfeited, unless such Holder: (i) has returned a completed and signed selling stockholder questionnaire to the Parent by the deadline for response set forth therein; provided, however, that Holder shall have at least five (5) calendar days from the date on which the questionnaire is
            first sent to such Holder to return a completed and signed questionnaire to the Parent; and (ii) responds within ten (10) calendar days to any other reasonable request for information as may be made from time to time by the Parent.

            (f)        Withdrawal. Upon written request given by the Stockholder Representatives to the Parent anytime after the filing of a registration statement pursuant to this Agreement but prior to such registration statement being declared effective by the
            Commission, the Parent shall reasonably promptly file a registration withdrawal request with the Commission and work diligently and in good faith to have the withdrawal request approved by the Commission. Any registration statement filed pursuant to Section 2(a) and subsequently withdrawn pursuant to this Section 2(f) shall exhaust Holders’ right to one registration
            pursuant to this Agreement.

             

            
                

                
                    	
                                

                                

                            	
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                            3.

                        	
                            Registration Procedures.

                        

            

            (a)       If and whenever the Parent is required to use its best efforts to effect the registration of any Registrable Securities under the Securities Act as provided in Section 2, the Parent, subject to the terms and conditions of Section 2,
            will do the following:

            (i)        Prepare and file with the Commission the requisite registration statement to effect such registration and use its best efforts to cause such registration to become and remain effective;

            (ii)       Prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective and to comply with the provisions of the Securities Act with respect to the disposition of all
            securities covered by such registration statement until the earlier of (A) such time as all of such securities have been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof set forth in such registration statement or (B) the expiration of 180 days after such registration statement becomes effective;

            (iii)      Furnish to the Holders such number of conformed copies of such registration statement and of each such amendment and supplement thereto (in each case including all exhibits), such number of copies of the prospectus contained in such registration statement (including each preliminary prospectus and any summary prospectus)
            and any other prospectus filed under Rule 424 under the Securities Act, in conformity with the requirements of the Securities Act, and such other documents, as any Holder of Registrable Securities to be sold under such registration statement may reasonably and timely request;

            (iv)      Use its best efforts to register or qualify all Registrable Securities covered by such registration statement under such other United States state securities or blue sky laws of such jurisdictions as any Holder of Registrable Securities to be sold under registration statement shall reasonably request, to keep such
            registration or qualification in effect for so long as such registration remains in effect, and take any other action which may be reasonably necessary or advisable to enable the Holder of Registrable Securities to be sold under such registration statement to consummate the disposition in such jurisdictions of the securities owned by such Holder, except that the Parent shall not for any such purpose be required to (a) qualify generally to do business as a foreign corporation in any
            jurisdiction wherein it would not but for the requirements of this paragraph (iv) be obligated to be so qualified, or (b) subject itself to taxation in any such jurisdiction.

            (v)       Use its best efforts to cause all Registrable Securities covered by such registration statement to be registered with or approved by such other United States state governmental agencies or authorities as may be necessary to enable the Holder of Registrable Securities to be sold under such registration statement to
            consummate the intended disposition of such Registrable Securities; and

             

            
                

                
                    	
                                

                                

                            	
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            (vi)      Immediately notify the Holders of Registrable Securities included in such registration statement at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the happening of any event as result of which the prospectus included in such registration statement, as then in effect,
            includes an untrue statement of material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances under which they were made, and at the request of the Holders, promptly prepare and furnish to the Holders a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such securities,
            such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances under which they were made.

            (b)       The Parent may require each Holder of Registrable Securities to be sold under such registration statement, at the Holder’s expense, to furnish the Parent with such information and undertakings as it may reasonably request regarding such Holder and the distribution of such securities as the Parent may from time to time reasonably
            request in writing.

            (c)       The Stockholder Representatives, by execution of this Agreement, agree for themselves and on behalf of the Holders (A) that upon receipt of any notice of the Parent of the happening of any event deemed necessary under applicable law to discontinue the disposition of Registrable Securities, shall cause each Holder to forthwith
            discontinue its disposition of Registrable Securities pursuant to the registration statement relating to such Registrable Securities until the receipt by the Stockholder Representatives and subsequent distribution to each such Holder of the copies of the supplemented or amended prospectus and, if so directed by the Parent in writing, will cause each Holder to deliver to the Parent all copies other than permanent file copies, then in possession of the Holders of the prospectus
            relating to such Registrable Securities current at the time of receipt of such notice and (B) that they will immediately notify the Parent in writing, at any time when a prospectus relating to the registration of such Registrable Securities is required to be delivered under the Securities Act, of the happening of any event as a result of which information previously furnished by such Stockholder Representatives or any Holder to the Parent for inclusion in such prospectus contains an
            untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances under which they were made.

            
                	
                            4.

                        	
                            Preparation.

                        

            

            In connection with the preparation and filing of the registration statement under the Securities Act, the Parent will give the Stockholder Representatives, who, in turn will provide to the Holders of Registrable Securities to be sold under such registration statement, drafts and final copies of such registration statement, each prospectus included therein or filed with the
            Commission and each amendment thereof or supplement thereto, at least five (5) business days prior to the filing thereof with the Commission, and will give each of them an opportunity to comment upon the content of such registration statement.

             

            
                

                
                    	
                                

                                

                            	
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                            5.

                        	
                            Indemnification and Contribution.

                        

            

            (a)       Indemnification by the Parent. In the event of any registration under the Securities Act pursuant to Section 2 of any Registrable Securities, the Parent will, and hereby does, indemnify and hold harmless each Holder and each
            other person, if any, who controls such Holder within the meaning of the Securities Act (collectively, the “Indemnified Parties”), against any losses, claims, damages or liabilities, joint or several, to which the Indemnified Parties may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions or proceedings, whether commenced or threatened, in respect
            thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained, on the effective date thereof, in any registration statement under which such securities were registered under the Securities Act, any preliminary prospectus, final prospectus or summary prospectus contained therein or any document incorporated therein by reference, or any amendment or supplement thereto, or any omission or alleged omission to state therein a
            material fact required to be stated therein or necessary to make the statements therein not misleading, or arise out of any violation by the Parent of any rule or regulation promulgated under the Securities Act or state securities law applicable to the Parent and relating to action or inaction required of the Parent in connection with any such registration, and the Parent will reimburse the Indemnified Parties for any legal or any other expenses reasonably incurred by them in
            connection with investigating or defending any such loss, claim, liability, action or proceeding; provided, however, that the Parent shall not be liable to any Indemnified Party in any such case to the extent that any such loss, claim, damage, liability (or action or proceeding in respect thereof) or expense arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, any such preliminary
            prospectus, final prospectus, summary prospectus, amendment or supplement in reliance upon and in conformity with written information furnished to the Parent by such Indemnified Party specifically for use therein; and provided further, that the Parent shall not be required to indemnify any Person against any liability arising from any untrue or misleading statement or omission contained in any preliminary prospectus if such deficiency is corrected in the final prospectus or for any
            liability that arises out of the failure by an Indemnified Person seeking indemnity hereunder to deliver a prospectus as required by the Securities Act.

            (b)       Indemnification by the Holders. As a condition to including any Registrable Securities of any person or entity in any registration statement filed pursuant to Section 2, the Parent shall have received an undertaking reasonably
            satisfactory to it from such person or entity to indemnify and hold harmless (in the same manner and to the same extent as set forth in paragraph (a) of this Section 5, including the reimbursement for any legal or other expenses reasonably incurred by the Parent in connection therewith) the Parent, each director of the Parent, each officer of the Parent and each other person, if any, who controls the Parent within the meaning of the
            Securities Act, with respect to any statement or alleged statement in or omission or alleged omission from such registration statement, any preliminary prospectus, final prospectus or summary prospectus contained therein, or any amendment or supplement thereto, if, such statement or alleged statement or omission or alleged omission was made in reliance upon and in conformity with information furnished in writing to the Parent by such person or entity for use therein; provided,
            however, that the obligation of any Holder hereunder shall be

             

            
                

                
                    	
                                

                                

                            	
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            limited to an amount equal to the proceeds received by such Holder upon the sale of Registrable Securities sold in the offering covered by such registration.

            (c)       Notices of Claims, etc. Promptly after receipt by an Indemnified Party of notice of the commencement of any action or proceeding involving a claim referred to in the preceding paragraphs of this Section 5, such Indemnified Party
            will, if a claim in respect thereof is to be made against a party required to provide indemnification (an “Indemnifying Party”), give written notice to the latter of the commencement of such action, provided, however, that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligation under the preceding paragraphs of this Section
            5, except to the extent that the Indemnifying Party is actually prejudiced by such failure to give notice. In case any such action is brought against an Indemnified Party, unless in such Indemnified Party’s reasonable judgment a conflict of interest between such Indemnified and Indemnifying Parties may exist in respect of such claim, the Indemnifying Party shall be entitled to participate in and to assume the defense thereof, jointly with any other
            Indemnifying Party similarly notified to the extent that it may wish, with counsel reasonably satisfactory to such Indemnified Party, and after notice from the Indemnifying Party to such Indemnified Party of its election so to assume the defense thereof, the Indemnifying Party shall not be liable to such Indemnified Party for any legal or other expenses subsequently incurred by the latter in connection with the defense thereof other than reasonable costs of investigation. No
            Indemnifying Party shall consent to entry of any judgment or enter into any settlement without the consent of the Indemnified Party which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim or litigation.

            (d)       Other Indemnification. Indemnification similar to that specified in the preceding paragraphs of this Section 5 (with appropriate modifications) shall be given by the Parent and each Holder of Registrable Securities included in
            any registration statement with respect to any required registration or other qualification of securities under any Federal or state law or regulation of any governmental authority, other than the Securities Act.

            (e)       Indemnification Payment. The indemnification required by this Section 5 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or expense, loss,
            damage or liability is incurred. In the case of indemnification by the Holders, such payment may, at Parent’s election, be made from the Escrow Amount or directly from the indemnifying party.

            (f)        Survival of Obligations. The obligations of the Parent and of the Holders under this Section 5 shall survive the completion of any offering of Registrable Securities under this Agreement.

            (g)       Contribution. If the indemnification provided for in this Section 5 is unavailable or insufficient to hold harmless an Indemnified Party, then each Indemnifying Party shall contribute to the amount paid or payable to such
            Indemnified Party as a result of the losses, claims, damages or liabilities referred to in this Section 5 an amount or additional amount, as the case may be, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party or parties on the one hand and the Indemnified Party on the other in connection with the

             

            
                

                
                    	
                                

                                

                            	
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            statements or omissions which resulted in such losses, claims, demands or liabilities as well as any other relevant equitable considerations. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Indemnifying Party
            or parties on the one hand or the Indemnified Party on the other and the parties’ relative, intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The amount paid to an Indemnified Party as a result of the losses, claims, damages or liabilities referred to in the first sentence of this Section 5(g) shall be deemed to include any legal or other expenses reasonably
            incurred by such Indemnified Party in connection with investigating or defending any action or claim which is the subject of this Section 5. No person guilty of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

            
                	
                            6.

                        	
                            Miscellaneous.

                        

            

            (a)       Notices. All demands, requests, notices and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given if delivered personally or sent by United States first class mail, postage prepaid, and to the
            parties hereto at the following address or at such other address as any party hereto shall hereafter specify by notice to the other party hereto:

             

            
                	
                             

                        	
                            (i)

                        	
                            if to the Parent, addressed to:

                        

            

             

            Quality Systems, Inc.

            
                	
                             

                        	
                            18111 Von Karman Avenue, Suite 600

                        

            

            
                	
                             

                        	
                            Irvine, CA 92612

                        

            

            
                	
                             

                        	
                            Attention: President

                        

            

            
                	
                             

                        	
                            Fax: (949) 255-2610

                        

            

            with a copy to (which shall not constitute notice):

             

            Rutan & Tucker, LLP

            611 Anton Blvd, 14th Floor

            Costa Mesa, CA 92626

            Attention: Thomas J. Crane

            Fax: (714) 546-9035

            
                	
                             

                        	
                            (ii)

                        	
                            if to the Stockholder Representatives:

                        

            

             

            
                	
                             

                        	
                            Perry Snyder

                        

            

            2405 Velvet Ridge Dr.

            Owings Mills, MD 21117

            Fax: (443) 933-4292

             

            
                

                
                    	
                                

                                

                            	
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                            Don Good

                        

            

            
                	
                             

                        	
                            16 Heritage Farm Dr

                        

            

            New Freedom, PA 17349

            Fax: (443) 9334304

             

            with a copy to (which shall not constitute notice):

             

            Whiteford, Taylor & Preston L.L.P.

            Seven Saint Paul Street

            Suite 1500

            Baltimore, MD 21202

            Attn: William M. Davidow

            Telecopy: (410) 223-4367

            Telephone: (410) 347-8767

            Except as otherwise provided herein, all such demands, requests, notices and other communications shall be deemed to have been received on the date of personal delivery thereof or on the third business day after the mailing thereof.

            (b)       Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of California, without regard to conflicts of law principles thereof.

            (c)       Headings. The descriptive headings of the several sections and paragraphs of this Agreement are inserted for convenience only, and do not constitute a part of this Agreement and shall not affect in any way the meaning or interpretation of this Agreement.

            (d)       Entire Agreement; Amendments. This Agreement and the other writings referred to herein or delivered pursuant hereto which form a part hereof contain the entire understanding of the parties with respect to its subject matter. This Agreement supersedes all prior agreements and
            understandings between or among any of the parties hereto with respect to registration rights involving securities of the Parent. This Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument duly executed by the Parent and the Stockholder Representatives and any such amendment or waiver so executed shall be binding upon all of the
            Holders, whether or not they shall have executed the same.

            (e)       Assignability. This Agreement may not be assigned by either party without the prior written consent of the other party; provided, however, that Company may assign its rights under this Agreement to a parent, affiliate, subsidiary, or successor to its business, if any, upon prior
            written notice to the Stockholder Representatives.

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

             

            
                

                
                    	
                                

                                

                            	
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            (g)       Arbitration. In the event a dispute arises between the parties hereto arising out of or in connection with or with respect to this Agreement or any breach thereof, such dispute shall be determined and settled by arbitration before a single arbitrator in Orange County, California,
            in accordance with the rules of the American Arbitration Association (“AAA”). The award rendered thereon by the arbitrator shall be final and binding on the parties thereto, and judgment thereon may be entered in any court of competent jurisdiction. Nothing in this Section shall prevent either party from applying to a court of competent jurisdiction for equitable or injunctive relief.

            (h)       Attorney Fees. If any arbitration, action, or other proceeding (“Proceeding”) is brought to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to recover all costs and
            expenses incurred in such Proceeding or on appeal, including reasonable attorney fees as fixed by the arbitrator or court, and including a reasonable amount for costs and attorney fees to be incurred in collecting any money judgment or award or otherwise enforcing each order, judgment, or decree entered in the claim for relief, action, or other proceeding.

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

            
                	
                            PARENT:

                        	
                            QUALITY SYSTEMS, INC.

                        

            

             

            
                	
                             

                        	
                            By:     /s/ Steven Plochocki              

                        

            

            
                	
                             

                        	
                            Steven Plochocki, President

                        

            

             

            
                	
                            STOCKHOLDER REPRESENTATIVES:

                        	
                             

                             

                        

            

             

            
                	
                                        /s/ Perry Snyder           

                        	
                             

                        

            

            PERRY SNYDER

             

            
                	
                                     /s/ Donald Good              

                        	
                             

                        

            

            DONALD GOOD

             

            
                

                
                    	
                                

                                

                            	
                                -10-ex101.htm

    ASSET
PURCHASE AGREEMENT

    

    THIS
ASSET PURCHASE AGREEMENT (the “Agreement”) is
entered on September 30, 2008 (the “Effective Date”)
between (i) AudioStocks, Inc., a Delaware corporation (the “Seller”), and (ii)
DAO Information Systems, LLC, a Delaware limited liability company (the “Parent”) and its
wholly owned subsidiary, DAO Information Systems, Inc., a Delaware corporation
(the “Subsidiary” and
collectively with the Parent, the “Buyer”); and (iii)
Luis J. Leung, an individual. The Seller and the Buyer may hereinafter be
referred to individually as a “Party” or
collectively as the “Parties.”

    

    RECITALS

    

    WHEREAS,
Seller desires to sell certain of Seller's assets and properties, including all
rights and interests associated therewith to Buyer; and

    

    WHEREAS,
Buyer desires to purchase from Seller, upon the terms and conditions set forth
herein, such assets, properties, rights and interests and, in connection
therewith, Buyer will assume certain liabilities of Seller.

    

    AGREEMENT

    

    NOW,
THEREFORE, in consideration of the mutual covenants contained in this Agreement,
and for good and valuable consideration, the receipt of which is hereby
acknowledged, it is hereby agreed as follows:

    

    

    ARTICLE
I

     

    DEFINITIONS

    

    1.1           Certain Definitions.
In addition to other terms defined throughout this Agreement, the following
terms have the following meanings when used herein:

    

    (a)
"Assets" shall
include the following assets, properties, rights and interests of
Seller:

    

    (i)           the
existing licensing rights and interests of the Seller associated with the
Seller’s Audiostocks.com business division (the “AudioStocks
Business”) which shall include the trade names “AudioStocks” and
“AudioNews;” the rights to the domain name www.Audiostocks.com; the AudioStocks
logo; and the Audiostocks.com software program including all related files,
documentation, manuals, code and other materials, whether in whole or in part,
including any and all modifications, derivative works, and copies of the
foregoing, regardless of the form or media in or on which they may exist (the
“Seller Intellectual
Property”);

    

     (ii)           all
rights, interest and claims to all accounts receivable related to the
AudioStocks Business as set forth in Schedule A
(collectively the “Accounts
Receivable”);

    

    (iii)           all
future Net Sales Proceeds1 from the eventual sale of all
shares of stock held by the Seller as set forth in Schedule B
(collectively the “Seller Securities”);
and

    

    (iv)           all
of the intangible rights and property of Seller related to the AudioStocks
Business, including going concern value, goodwill, websites, URL listings and
e-mail addresses; and

    

    (v)           all
data and records ("Records") related to
the AudioStocks Business, including client and customer lists and records,
referral sources, research and development reports 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;

    

    (b)           "Assumed Liabilities"
means all liabilities whatsoever relating to the AudioStocks business to be
assumed by Buyer, including those known and unknown, disclosed and undisclosed,
contingent, and including, but not limited to, the specific liabilities of
Seller set forth in Schedule
C.

    

    (c)           "Consent" means any
notice to or consent, approval, authorization, order, filing, registration or
qualification of or with any court, governmental body or third
party.

    

    (d)           "Business Day" means
any day other than (a) Saturday or Sunday or (b) any other day on which banks in
California are permitted or required to be closed.

    

    (e)           "Governmental Body"
means any:

    

    (i)           nation,
state, county, city, town, borough, village, district or other
jurisdiction;

    

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

    

    (iii)           governmental
or quasi-governmental authority of any nature (including any agency, branch,
department, board, commission, court, tribunal or other entity exercising
governmental or quasi-governmental powers);

    

    (iv)           multinational
organization or body;

    

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

    

    (vi)           official
of any of the foregoing.

    

    (f)           "Legal Requirement"
means any federal, state, local, municipal, foreign, international,
multinational or other constitution, law, ordinance, principle of common law,
code, regulation, statute or treaty.

    

    (g)           "Person" means an
individual, partnership, corporation, business trust, limited liability company,
limited liability partnership, joint stock company, trust, unincorporated
association, joint venture or other entity or a Governmental Body.

    

    

    ARTICLE
II

     

    PURCHASE
AND SALE

    

    2.1           Purchase. Upon the
terms and subject to the conditions set forth herein, on the Closing Date (as
defined herein), Buyer shall purchase from Seller the Assets, and Seller shall
sell and convey the Assets to Buyer.

    

    2.2           Transfer of Assets.
Upon the terms and subject to the conditions set forth herein, Seller shall, on
the Closing Date, sell and transfer to Buyer all right, title and interest of
Seller in and to the Assets. Seller shall execute and deliver all additional
transfer documents required in order to convey title to all of the Assets. The terms and conditions of the transfer of Assets related to
the eventual sale of the Seller Securities and receipt of the Accounts
Receivable following the Closing Date shall be governed by Section 6.1
herein.

    

    2.3           Consideration; Assumption of
Liabilities. In consideration for the transfer of the Assets, upon the
terms and subject to the conditions set forth herein, Buyer shall, on the
Closing Date, assume all Assumed Liabilities. Buyer shall execute and deliver
all additional documents required in order to effectuate such assumption of
Assumed Liabilities. The terms and conditions of the payment
of the Assumed Liabilities following the Closing Date shall be governed by
Section 6.1 herein.

    

    

    ARTICLE
III

     

    CLOSING

    

    3.1           Closing. On the terms
and subject to the conditions set forth in this Agreement, the closing of the
transactions contemplated herein (the "Closing") shall take
place after the Effective Date and as soon as practicable following the
satisfaction of all conditions set forth herein (the "Closing
Date").

    

    

    ARTICLE
IV

     

    REPRESENTATIONS
AND WARRANTIES OF SELLER

    

    Seller
represents and warrants on the date hereof and on the Closing Date that the
following representations and warrants are true and correct:

    

    4.1           Organization.  Seller
is a corporation 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
or lease the properties used in its business and to carry on such business as
presently conducted.

    

    4.2           Authorization. This
Agreement has been duly authorized, executed and delivered by Seller, and this
Agreement is the legal, valid and binding obligation of Seller, enforceable
against it in accordance with its terms, except to the extent that
enforceability may be limited by bankruptcy, insolvency, fraudulent transfer,
moratorium, reorganization and other laws affecting the enforcement of
creditors' rights generally and by principles of equity.

    

    4.3           Intellectual
Property.  The Seller Intellectual Property constitutes
substantially all of the intellectual property used in or necessary to conduct
the AudioStocks Business as conducted prior to the Closing. Buyer expressly
acknowledges that they have been noticed that Seller does not own the rights to
the Seller Intellectual Property, but rather licenses such rights from certain
third parties (the “Third Party
Licensors”) pursuant to a licensing agreement (the “Licensing
Agreement”). Upon Closing, the Seller and the Third Party Licensors shall
deliver to the Buyer an acknowledgment and consent amendment to the Licensing
Agreement (the “Licensing Agreement,”
a copy of which has been attached hereto as Exhibit A)
authorizing and approving of the transfer of licensing rights to the Seller
Intellectual Property pursuant to the terms of the Licensing Agreement. The
Licensing Rights to the Seller Intellectual Property shall be transferred to the
Buyer and shall continue under the same terms of the original Licensing
Agreement.

    

    4.4           Brokers. No broker,
investment banker or other Person is entitled to any broker's, finder's or other
similar fee or commission in connection with the transactions contemplated by
this Agreement based upon arrangements made by or on behalf of the Seller.

    

    

    ARTICLE
V

     

    REPRESENTATIONS
AND WARRANTIES OF BUYER

    

    Buyer
represents and warrants to Seller on the date hereof and on the Closing Date
that the following representations and warranties are true and
correct:

    

    5.1           Organization; Qualification;
Subsidiaries.   Parent 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 enter into this Agreement.
Subsidiary is a newly formed Delaware corporation that has never conducted
business.

    

    5.2           Authorization. This
Agreement has been duly authorized, executed and delivered by Buyer, and this
Agreement is the legal, valid and binding obligation of Buyer, enforceable
against Buyer in accordance with their respective terms, except to the extent
that enforceability may be limited by bankruptcy, insolvency, fraudulent
transfer, moratorium, reorganization and other laws affecting the enforcement of
creditors' rights generally and by principles of equity.

     

    5.3           No Conflict or Violation;
Default. Neither the execution and delivery of this Agreement nor the
consummation of the transactions contemplated hereby will violate, conflict with
or result in a breach of or constitute a default under (a) or result in the
termination or the acceleration of, or the creation in any Person of any right
(whether or not with notice or lapse of time or both) to declare a default,
accelerate, terminate, modify or cancel any indenture, contract, lease,
sublease, loan agreement, note or other obligation or liability (each, a "Buyer Contract") to
which Buyer is a party or by which it is bound, (b) any provision of the
certificate of incorporation or bylaws Buyer, (c) any judgment, order, decree,
rule or regulation of any Governmental Body to which Buyer’s business is subject
or (d) any applicable laws or regulations. There is no (with or without the
lapse of time or the giving of notice or both) violation or default or, to the
knowledge of Buyer, threatened violation or default of or under any Buyer
Contract.

    

    5.4           Compliance with
Laws.  Buyer’s business has at all times been conducted and is
currently in compliance with all applicable laws, regulations, rules ordinances,
bylaws, orders and determinations of any Governmental Body, including those
related to the environment or health and safety, and whether existing on or
prior to the date hereof or subsequently amended, enacted or
promulgated.

    

    5.5           Consents.  No
Consent is required to be made or obtained by Buyer in connection with the
execution and delivery of this Agreement or the consummation by Buyer of the
transactions contemplated herein.

    

    5.6           Litigation. There is
no claim, action, suit, proceeding, or investigation pending or, to the
knowledge of Buyer threatened against Buyer or its directors, officers, agents
or employees (in their capacity as such) relating to Buyer’s business, its
assets or any properties or rights of Buyer’s business or that is reasonably
likely to adversely affect the transactions contemplated hereby. There are no
orders, writs, injunctions or decrees currently in force against Buyer or its
directors, officers, agents or employees (in their capacity as such) with
respect to the conduct of Buyer’s business.

    

    5.7           Brokers. There is no
investment banker, broker, finder, financial advisor or other person which has
been retained by or is authorized to act on behalf of Buyer who might be
entitled to any fee or commission in connection with the transactions
contemplated by this Agreement.

    

    

    ARTICLE
VI

     

    ADDITIONAL
AGREEMENTS

    

    6.1           Payment of Assumed
Liabilities.  Following the Closing and assumption of Assumed
Liabilities, Buyer hereby covenants and agrees as follows:

    

    (a)           
Payment of Assumed
Liabilities from Future Buyer Revenues.   Subsequent to
Closing, Buyer’s future gross revenues from all business and financing
operations (the “Future Revenues”)
shall be allocated directly towards the payment of the Assumed Liabilities. The
priority of payment of each individual liability of the Assumed Liabilities from
the Future Revenues shall be payable to according to the priority schedule
listed in Schedule
C. Buyer shall provide Seller with an accounting of all Future Revenues
on a quarterly basis beginning December 31, 2008 or at anytime upon demand by
Seller. In the event the Buyer does not deliver any portion of the Future
Revenues in accordance with the terms herein, Seller shall have the exclusive
right to retain from the Accounts Receivable amount due to the Buyer as
described in Section 6.1(b) below, the dollar amount of such Future Revenues
that should have been applied to the Assumed Liabilities from such Future
Revenues.

    

    (b)           Payment of Assumed
Liabilities from Accounts Receivable.   Due to the
difficulties associated with the valid transfer of the Accounts Receivable from
the Seller to the Buyer, the Parties hereby agree that such Accounts Receivable
shall remain in the Seller’s name as nominee for the benefit of the Buyer.
Following the eventual and final receipt, if any, of the Accounts Receivable,
the Seller shall deliver 100% of funds from such Accounts Receivable directly
towards the payment of the Assumed Liabilities. The priority of payment of each
individual liability of the Assumed Liabilities from the receipt of the Accounts
Receivable, if any, shall be payable to according to the priority schedule
listed in Schedule
C.

    

    (c)           Payment of Assumed
Liabilities from Seller Securities.   Due to the
difficulties associated with the valid transfer of the Seller Securities from
the Seller to the Buyer, the Parties hereby agree that such Seller Securities
shall remain in the Seller’s name as nominee for the benefit of the Buyer.
Following the eventual and final sale of the Seller Securities and receipt of
the Net Sales Proceeds (“Net Sales Proceeds”
shall equal the gross proceeds received from the sale of the Seller Securities,
less reasonable brokerage commissions and related fees, including reasonable
legal and accounting fees.thereunder) if any, the Seller shall deliver
100% of the Net Sales Proceeds from the sale of such securities directly towards
the payment of the Assumed Liabilities. The priority of payment of each
individual liability of the Assumed Liabilities from the Net Sales Proceeds from
the sale of the Seller Securities, if any, shall be payable to according to the
priority schedule listed in Schedule
C.

    

    (d)           Reversion of
Assets.  In the event the Assumed Liabilities are not
completely satisfied within thirty six (36) months following the Closing Date
from funds pursuant to Section 6.1 (a) thru (c) herein, or in the event of a
breach of any section or term of this Agreement by the Buyer the Assets shall
automatically revert back to the Seller (an “Asset Reversion”);
provided, however, in
the event of an Asset Reversion, as compensation for the use of the Assets for
the period following the Closing and prior to an Asset Reversion, the Purchaser
shall remain liable for the payment of all Assumed Liabilities and any and all
Assumed Liabilities due and payable to any officer, director or employee of the
Buyer shall automatically be forgiven.

     

    
      “Net Sales Proceeds”
shall equal the gross proceeds received from the sale of the Seller Securities,
less reasonable brokerage commissions and related fees, including reasonable
legal and accounting fees.

    

    6.2           Reasonable Best
Efforts.

    

    (a)           Upon
the terms and subject to the conditions set forth in this Agreement, each of the
Parties hereto agrees to use its reasonable best efforts to take, or cause to be
taken, all actions, and to do, or cause to be done, and to assist and cooperate
with the other Parties in doing, all things necessary, proper or advisable to
consummate and make effective, in the most expeditious manner practicable, the
sale of the Assets to Buyer and the other transactions contemplated by this
Agreement, including: (i) obtaining all necessary actions or nonactions,
waivers, consents and approvals from all Governmental Bodies and the making of
all necessary registrations and filings (including filings with Governmental
Bodies) and taking all reasonable steps as may be necessary to obtain an
approval or waiver from, or to avoid an action or proceeding by, any
Governmental Body; (ii) obtaining all necessary Consents; (iii) defending any
lawsuits or other legal proceedings, whether judicial or administrative,
challenging this Agreement or the consummation of the transactions contemplated
hereby, including seeking to have any stay or temporary restraining order
entered by any court or other Governmental Body vacated or reversed; and (iv)
executing and delivering any additional instruments necessary to consummate the
transactions contemplated by this Agreement. No Party shall consent to any
voluntary delay of the consummation of the sale of the Assets at the behest of
any Governmental Body without the consent of the other Parties to this
Agreement, which consent shall not be unreasonably withheld.

    

    (b)           Each
Party hereto shall use its reasonable best efforts not to take any action, or
enter into any transaction, which would cause any of its representations or
warranties contained in this Agreement to be untrue in any material respect or
result in a material breach of any covenant made by it in this Agreement or
which could reasonably be expected to impede, interfere with, prevent or delay
in any material respect, the sale of the Assets.

    

    6.3           Public Announcements.
Neither Buyer nor Seller shall issue any press release with respect to the
transactions contemplated by this Agreement or otherwise issue any written
public statements with respect to such transactions without prior consultation
with the other Party, except as may be required by applicable law or by
obligations pursuant to any listing agreement with any national securities
exchange or the rules of the NASDAQ national market ("NASDAQ").

    

    6.4           Employees and Employee
Benefits.

    

    (a)           Information on Active
Employees. For the purpose of this Agreement, the term "Active Employees"
shall mean all employees employed on the Closing Date by Seller for its
AudioStocks Business who are employed exclusively in Seller's AudioStocks
Business as currently conducted, including employees on temporary leave of
absence, including family medical leave, military leave, temporary disability or
sick leave, but excluding employees on long-term disability leave.

    

    (b)           Employment of Active
Employees by Buyer.

    

    (i)           Buyer
is not obligated to hire any Active Employee but may interview all Active
Employees for employment purposes. Buyer will provide Seller with a list of
Active Employees to whom Buyer has made an offer of employment that has been
accepted to be effective on the Closing Date (the "Hired Active
Employees"). Subject to Legal Requirements, Buyer will have reasonable
access to the Seller's office and personnel records (including performance
appraisals, disciplinary actions, grievances and medical records) of Seller for
the purpose of preparing for and conducting employment interviews with all
Active Employees and will conduct the interviews as expeditiously as possible
prior to the Closing Date. Access will be provided by Seller upon reasonable
prior notice during normal business hours. Effective immediately before the
Closing, Seller will terminate the employment of all of its Hired Active
Employees.

    

    (ii)           It
is understood and agreed that (A) Buyer's expressed intention to extend offers
of employment as set forth in this Section 6.4 shall not constitute any
commitment, Contract or understanding (expressed or implied) of any obligation
on the part of Buyer to a post-Closing employment relationship of any fixed term
or duration or upon any terms or conditions other than those that Buyer may
establish pursuant to individual offers of employment, and (B) employment
offered by Buyer is "at will" and may be terminated by Buyer or by an employee
at any time for any reason (subject to any written commitments to the contrary
made by Buyer or an employee and Legal Requirements). Nothing in this Agreement
shall be deemed to prevent or restrict in any way the right of Buyer to
terminate, reassign, promote or demote any of the Hired Active Employees after
the Closing or to change adversely or favorably the title, powers, duties,
responsibilities, functions, locations, salaries, other compensation or terms or
conditions of employment of such employees.

    

    6.5           Retention Records and
Access. After the Effective Date, Buyer shall retain for a period of ten
(10 years, those Records of Seller delivered to Buyer. Buyer also shall provide
Seller and its representatives reasonable access thereto, during normal business
hours and on at least three days' prior written notice, to enable them to
prepare financial statements. After the Effective Date, Seller shall provide
Buyer and its representatives reasonable access to Records, during normal
business hours and on at least three days' prior written notice, for any
reasonable business purpose specified by Buyer in such notice.

    

    

    ARTICLE
VII

     

    TERMINATION,
AMENDMENT AND WAIVER

    

    7.1           Termination. Subject
to Section 7.2 herein, this Agreement may be terminated at any time prior to the
Closing:

    

    (a)           by
mutual written consent of Buyer and Seller;

    

    (b)           by
Seller if the Buyer shall have failed to comply in any material respect with any
of its covenants or agreements contained in this Agreement; or

    

    (c)           by
Seller if any court or other Governmental Body having jurisdiction over a Party
hereto shall have issued an order, decree or ruling or taken any other action
permanently enjoining, restraining or otherwise prohibiting the consummation of
the sale of the Assets and such order, decree, ruling or other action shall have
become final and nonappealable;

    

    7.2           Waiver. At any time
prior to the Closing, the Parties hereto may (a) extend the time for the
performance of any of the obligations or other acts of the other Parties hereto,
(b) waive any inaccuracies in the representations and warranties contained
herein or in any document delivered pursuant hereto and (c) waive compliance
with any of the agreements or conditions contained herein which may legally be
waived. Any agreement on the part of a Party hereto to any such extension or
waiver shall be valid only if set forth in an instrument in writing signed on
behalf of such Party.

    

    

    ARTICLE
VIII

     

    INDEMNIFICATION

    

    8.1           Indemnification by
Buyer. The Buyer agrees to indemnify the Seller and hold harmless against
any losses, claims, damages or liabilities incurred by the Seller, in connection
with, or relating in any manner, directly or indirectly, to the Seller in
connection with this Agreement, unless it is determined by a court of competent
jurisdiction that such losses, claims, damages or liabilities arose out of the
Seller’s gross negligence, willful misconduct, dishonesty or fraud.
Additionally, the Buyer agrees to reimburse the Seller immediately for any and
all expenses, including, without limitation, attorney fees, incurred by the
Seller in connection with investigating, preparing to defend or defending, or
otherwise being involved in, any lawsuits, claims or other proceedings arising
out of or in connection with or relating in any manner, directly or indirectly,
from the Agreement (as defendant, nonparty, or in any other capacity other than
as a plaintiff, including, without limitation, as a party in an interpleader
action). The Buyer further agrees that the indemnification and reimbursement
commitments set forth in this section shall extend to any controlling person,
strategic alliance, partner, member, shareholder, director, officer, employee,
agent or subcontractor of the Seller and their heirs, legal representatives,
successors and assigns. The provisions set forth in this section shall remain in
full force and effect for 120 months thereafter, at which time all such claims
shall terminate except such claims notice of which has been given to Seller
prior to the expiration of such period.

    

    

    ARTICLE
IX

     

    MISCELLANEOUS

    

    9.1           Expenses. Seller and
Buyer shall each pay all costs and expenses incurred by it on its behalf, in
connection with this Agreement and the transactions contemplated hereby,
including fees and expenses of their financial consultants, accountants and
legal counsel.

    

    9.2           Notices. All notices,
requests, demands and other communications given hereunder shall be in writing
and delivered personally or by overnight courier to the Parties at the following
addresses or sent by telecopier or telex, with confirmation received, to the
telecopy specified below:

    

    
      	
              If to Seller:

               

              AudioStocks,
      Inc.

              2038
      Corte del Nogal, Suite 110

              Carlsbad,
      California 92011

              Fax-
      760-804-8845

            	
              If to Parent or Subsidiary:

               

              DAO
      Information Systems, LLC

              15818
      SweetRose Place

              Houston,
      Texas  77095

              Fax-
      832-202-2474

            

    

    

    All
notices shall be deemed delivered when actually received if delivered personally
or by overnight courier, sent by telecopier or telex (promptly confirmed in
writing), addressed as set forth above. Each of the Parties shall hereafter
notify the other in accordance with this section of any change of address or
telecopy number to which notice is required to be mailed.

    

    9.3           Necessary
Acts.  Each Party to this Agreement agrees to perform any
further acts and execute and deliver any further documents that may be
reasonably necessary to carry out the provisions of this Agreement.

    

    9.4           Counterparts. This
Agreement may be executed simultaneously in one or more counterparts, and by
different Parties hereto in separate counterparts, each of which when executed
shall be deemed an original, but all of which taken together shall constitute
one and the same instrument.

    

    9.5           Entire Agreement;
Modifications; Waiver.  This Agreement constitutes the entire
agreement between the Parties pertaining to the subject matter contained in it.
This Agreement supersedes all prior and contemporaneous agreements,
representations, and understandings of the Parties.  No supplement,
modification, or amendment of this Agreement shall be binding unless executed in
writing by all the Parties.  No waiver of any of the provisions of
this Agreement shall be deemed, or shall constitute, a waiver of any other
provisions, whether or not similar, nor shall any waiver constitute a continuing
waiver.  No waiver shall be binding unless executed in writing by the
Party making the waiver.

    

    9.6           Headings. The
headings contained in this Agreement and in the Schedules and Exhibits hereto
are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

    

    9.7           Assignment. This
Agreement shall be binding upon the respective successors and assigns of the
Parties hereto. This Agreement may not be assigned by any Party hereto without
the prior written consent of the Seller.

    

    9.8           Governing
Law.  The subject matter of this Agreement shall be governed by
and construed in accordance with the laws of the State of California (without
reference to its choice of law principles) as applied to residents of the State
of California relating to contracts executed in and to be performed solely
within the State of California, and to the exclusion of the law of any other
forum, without regard to the jurisdiction in which any action or special
proceeding may be instituted.  EACH PARTY HERETO AGREES TO SUBMIT TO
THE PERSONAL JURISDICTION AND VENUE OF THE STATE AND/OR FEDERAL COURTS LOCATED
IN NORTH COUNTY OF SAN DIEGO, CALIFORNIA FOR RESOLUTION OF ALL DISPUTES ARISING
OUT OF, IN CONNECTION WITH, OR BY REASON OF THE INTERPRETATION, CONSTRUCTION,
AND ENFORCEMENT OF THIS AGREEMENT, AND HEREBY WAIVES THE CLAIM OR DEFENSE
THEREIN THAT SUCH COURTS CONSTITUTE AN INCONVENIENT FORUM. AS A MATERIAL
INDUCEMENT FOR THIS AGREEMENT, EACH PARTY SPECIFICALLY WAIVES THE RIGHT TO TRIAL
BY JURY OF ANY ISSUES SO TRIABLE.

    

    9.9           Attorneys’
Fees.  Should any Party hereto employ an attorney for the
purpose of enforcing or constituting this Agreement, or any judgment based on
this Agreement, in any legal proceeding whatsoever, including insolvency,
bankruptcy, arbitration, declaratory relief or other litigation, the prevailing
party shall be entitled to receive from the other Party or Parties thereto
reimbursement for all reasonable attorneys’ fees and all reasonable costs,
including but not limited to service of process, filing fees, court and court
reporter costs, investigative costs, expert witness fees, and the cost of any
bonds, whether taxable or not, and that such reimbursement shall be included in
any judgment or final order issued in that proceeding.

    

    9.10           Specific
Performance.  The Parties hereby acknowledge and agree that
irreparable damage would occur in the event that any of the provisions of this
Agreement were not performed in accordance with their specific terms or were
otherwise breached.  It is accordingly agreed that the Parties shall
have the right to demand specific performance of the terms, and each of them, of
this Agreement.

    

    9.11           Severability. If any
term or other provision of this Agreement is invalid, illegal or incapable of
being enforced by any rule of law, or public policy, all other conditions and
provisions of this Agreement shall nevertheless remain in full force and effect
so long as the economic or legal substance of the transactions contemplated
hereby is not affected in any manner adverse to any Party. Upon such
determination that any term or other provision is invalid, illegal or incapable
of being enforced, the Parties hereto shall negotiate in good faith to modify
this Agreement so as to affect the original intent of the Parties as closely as
possible in an acceptable manner to the end that transactions contemplated
hereby are fulfilled to the extent possible.

    

    9.12           Conflicts of
Interest.  The Parties shall exercise their best efforts to
make the other party aware of any conflicts of interest that exist, including
any conflicts of interest related to any other business or entity that a Party
beneficially owns or controls. Such conflicts of interest known as of the
Effective Date herein have been disclosed in Exhibit B.
Disclosure, acknowledgment and waiver of future discovered or created conflicts
of interest may be made in writing or through oral communication.

    

    9.13           Joint Drafting and Exclusive
Agreement.  This Agreement is the only Agreement executed by
and between the Parties related to the subject matter described
herein.  There are no additional oral agreements or other
understandings related to the subject matter described herein.  This
Agreement shall be deemed to have been drafted jointly by the Parties hereto,
and no inference or interpretation against any one Party shall be made solely by
virtue of such Party allegedly having been the draftsperson of this
Agreement.  The Parties have each conducted sufficient and appropriate
due diligence with respect to the facts and circumstances surrounding and
related to this Agreement.  The Parties expressly disclaim all
reliance upon, and prospectively waive any fraud, misrepresentation, negligence
or other claim based on information supplied by the other Party, in any way
relating to the subject matter of this Agreement.

    

    9.14           Acknowledgments and
Assent.  The Parties acknowledge that they have been given at
least ten (10) days to consider this Agreement and that they were advised to
consult with an independent attorney prior to signing this Agreement and that
they have in fact consulted with counsel of their own choosing prior to
executing this Agreement.  The Parties may revoke this Agreement for a
period of three (3) calendar days after signing this Agreement, and the
Agreement shall not be effective or enforceable until the expiration of this
three (3) day revocation period.  The Parties agree that they have
read this Agreement and understand the content herein, and freely and
voluntarily assent to all of the terms herein.  A facsimile copy of
this Agreement shall have the same legal effect as an original of the
same.

    

    9.15           Incorporation of Exhibits
and Schedules. The Exhibits and Schedules hereto are incorporated into
this Agreement and shall be deemed a part hereof as if set forth herein in full.
References herein to "this Agreement" and the words "herein," "hereof" and words
of similar import refer to this Agreement (including its Exhibits and Schedules)
as an entirety. In the event of any conflict between the provisions of this
Agreement and any such Exhibit or Schedule, the provisions of this Agreement
shall control.

    
 

    IN
WITNESS WHEREOF, the Parties have duly executed and delivered this Agreement as
of the day and year first above written.

    

    
      	
              SELLER:

               

              AudioStocks,
      Inc.

               

              /s/ Luis J. Leung

               

              ____________________________

              By:
      Luis J. Leung

              Its:
      President

            	
              PARENT:

               

              DAO
      Information Systems, LLC

               

              /s/ Luis J. Leung

               

              ____________________________

              By:
      Luis J. Leung

              Its:
      Managing Member

               

            
	 
      	
              SUBSIDIARY:

               

              DAO
      Information Systems, Inc.

               

              /s/ Luis J. Leung

               

              ____________________________

              By:
      Luis J. Leung

              Its:
      President

               

            
	 
      	
              Luis
      J. Leung

               

              /s/ Luis J. Leung

               

              ____________________________

              By:
      Luis J. Leung

              An
      individual

            

    

    

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    

    

    
 

    

    SCHEDULES

    

    SCHEDULE
A

    

    Cash
Accounts Receivable

    

    
      	
              Accounts
      Receivable

            	
              Amount
      Due

            	
              Receivable
      Description

            
	 
      	 
      	 
      
	
              China
      Broadband, Inc

               

            	
              $11,000.00

            	
              Service
      Contract

            
	
              International
      Coastal Biofuels, Inc

               

            	
              5,000.00

            	
              Service
      Contract

            
	
              Physicians
      Adult Daycare, Inc

               

            	
              2,120.00

            	
              Press
      Releases

            

    

    

    

    

    

    

    

    

    

     

     

     

     

    
 

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
 

    

    

    SCHEDULE
B

    

    Seller
Securities

    

    

    
      	
              Issuer

            	
              Symbol

            	
              Number
      of Shares

            
	 
      	 
      	 
      
	
              Mezey
      Howarth Racing Stables, Inc.

            	
              MZYH

            	
              5,000

            
	
              American
      Scientific Resources, Inc.

            	
              ASFX

            	
              200,000

            
	
              Biogold
      Fuels Corporation

            	
              BIFC

            	
              58,750

            
	
              Stimulated
      Environment Concepts, Inc.

            	
              SMEV

            	
              2,500,000

            
	
              Davi
      Skin, Inc.

            	
              DAVN

            	
              304,500

            
	
              XXIS
      Corporation

            	
              XXIS

            	
              200,000

            
	
              XXIS
      Corporation

            	
              XXIS

            	
              200,000

            
	
              Physicians
      Adult Daycare, Inc.

            	
              PHYA

            	
              2,500,000

            
	
              Physicians
      Adult Daycare, Inc.

            	
              PHYA

            	
              1,000,000

            
	
              Sparrowtech
      Resources, Inc.

            	
              SPMC

            	
              750,000

            
	
              Lantis
      Laser, Inc.

            	
              LLSR

            	
              19,000

            
	
              Smart
      SMS Corporation

            	
              STMC

            	
              19,000

            
	
              North
      American Energy Group Corporation

            	
              NNYR

            	
              95,000

            
	
              B2Digital,
      Inc.

            	
              BTDG

            	
              5,475

            
	
              Prime
      Companies, Inc.

            	
              PRMC

            	
              11,400

            
	
              Luvoo
      International, Inc.

            	
              LUVT

            	
              350,000

            
	
              JC
      Data Solutions, Inc.

            	
              JCDS

            	
              342,000

            

    

    

    

    

    

    

    

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
 

    SCHEDULE
C

    

    Assumed
Liabilities

    

    The below
chart represents the Assumed Liabilities assumed by the Seller in connection
with the Agreement as of the Effective Date. All payments to be made and
applicable to the Assumed Liabilities pursuant to Section 6.1 (the “Assumed Liability
Payments”) herein shall be payable to the individuals or entities below
as follows:

    

    Class 1
Assumed Liability Payments- All Assumed Liability Payments shall
initially be made to the Class 1 individuals or entities based upon the priority
of listing from top to bottom in the chart below. For example, if the initial
Assumed Liability Payment totaled $42,000, the first $27,461.25 would be paid
directly to Chisholm, Bierwolf & Nilson, LLC, the next
$18,504.67  would be paid to Luis J. Leung,  and the
remaining $114.08 would be used to pay down a portion of the $81,963.37 owed to
Black Forest International, LLC.

    

    Class 2
Assumed Liability Payments- Following the payment of all Class 1 Assumed
Liabilities, all Assumed Liability Payments shall next be made to the Class 2
individuals or entities on a pro rata basis based upon the chart below. For
example, if the Assumed Liability Payment due and owing to the Class 2
individuals or entities totaled $100,000, $91,781.33 would be paid directly to
BCGU, LLC and $8,218.66 would be paid directly to Luis J. Leung.

    

    Class 3
Assumed Liability Payments- Following the payment of all Class 2 Assumed
Liabilities, all Assumed Liability Payments shall next be made to the Class 3
individuals or entities on a pro rata basis based upon the chart
below.

    

    The
priority of any Assumed Liability Payment may be amended upon written consent by
both Parties.

    

    
      	
              Class

            	
              Debtor/Vendor

            	
              Amount
      Owed (US $)

            	
              Debt
      Description

            
	 
      	 
      	 
      	 
      
	
              Class
      1

            	
              Chisholm,
      Bierwolf & Nilson, LLC

               

            	
              $27,461.25

            	
              Audit

               

            
	
              Luis
      J. Leung

               

            	
              18,504.67

            	
              Credit
      Advances

               

            
	
              Black
      Forest International, LLC

               

            	
              81,963.37

            	
              Notes
      Payable

            
	
              Class
      2

            	
              BCGU,
      LLC

               

            	
              242,894.34

            	
              Licensing
      Fees related to contracts

               

            
	
              Luis
      J. Leung

               

            	
              21,750.25

            	
              Officer
      Bonus related to contracts

            
	 
      	 
      	 
      	 
      
	
              Class
      3

            	
              The
      Company Corporation

            	
              225.00

            	
              Corporate
      Maintenance

               

            
	
              Ronald
      Garner

               

            	
              3,750.00

            	
              Accrued
      Compensation

               

            
	
              Paychex,
      Inc

               

            	
              279.14

            	
              Payroll
      Service

               

            
	
              American
      Express

               

            	
              2,866.39

            	
              Credit
      Card

               

            
	
              Business
      Wire, Inc.

               

            	
              6,005.00

            	
              Press

               

            
	
              Doty
      Scott Enterprises, Inc.

               

            	
              2,500

            	
              Bookkeeping

               

            
	
              IKON
      Financial Services, Inc.

               

            	
              662.19

            	
              Office
      Support

               

            
	
              Marketwire,
      Inc.

               

            	
              140.00

            	
              Press

               

            
	
              Quotemedia,
      Inc.

               

            	
              1,100

            	
              Technology
      Support

               

            
	
              Softmart,
      Inc.

               

            	
              249.00

            	
              Office
      Support

               

            

    

    

    

    

    

    

    
 

    

    

    

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    

    

    

    

    

    

    

    EXHIBIT
A

    

    Licensing
Agreement

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    

    

    

    EXHIBIT
B

    

    Conflicts
of Interest

    

    As of the
Effective Date, the following possible conflicts of interests exist in
relationship to the Agreement:

    

    
      	
              1.  

            	
              Luis J.
      Leung.

            

    

    

    Mr. Leung
is currently President, Secretary, Treasurer and sole Director of AudioStocks,
Inc. In addition, Mr. Leung is currently the Managing Director of DAO
Information Systems, LLC and President, Secretary, Treasurer and sole Director
of DAO Information Systems, Inc.

    

    Mr. Leung
has provided certain IT and technology related advisory services to the Third
Party Licensors. Mr. Leung has received no compensation for such
services.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00150-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00150-of-00352.parquet"}]]