Document:

EXHIBIT 4-2

Exhibit 4.2

THE REGISTERED HOLDER OF THIS PURCHASE OPTION BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE OPTION EXCEPT AS HEREIN PROVIDED AND THE REGISTERED HOLDER OF THIS PURCHASE OPTION AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS PURCHASE OPTION FOR A PERIOD OF ONE HUNDRED EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE OTHER THAN (I) AEGIS CAPITAL CORP. OR AN UNDERWRITER OR A SELECTED DEALER IN CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE OFFICER OR PARTNER OF AEGIS CAPITAL CORP. OR OF ANY SUCH UNDERWRITER OR SELECTED DEALER. 

THIS PURCHASE OPTION IS NOT EXERCISABLE PRIOR TO ________________ [DATE THAT IS ONE YEAR AFTER DATE OF PROSPECTUS]. VOID AFTER 5:00 P.M., EASTERN TIME, ___________________ [DATE THAT IS FIVE YEARS AFTER DATE OF PROSPECTUS]. 

FORM OF COMMON STOCK PURCHASE OPTION

For the Purchase of  [_______] Shares of Common Stock
of
IZEA, INC.

1.    Purchase Option. THIS CERTIFIES THAT, in consideration of funds duly paid by or on behalf of Aegis Capital Corp. (“Holder”), as registered owner of this Purchase Option, to IZEA, Inc. (the “Company”), Holder is entitled, at any time or from time to time from ________________ [DATE THAT IS ONE YEAR AFTER DATE OF PROSPECTUS] (the “Commencement Date”), and at or before 5:00 p.m., Eastern time, ___________________ [DATE THAT IS FIVE YEARS AFTER DATE OF PROSPECTUS] (the “Expiration Date”), but not thereafter, to subscribe for, purchase and receive, in whole or in part, up to [_______] shares of common stock of the Company, par value $0.0001 per share (the “Shares”), subject to adjustment as provided in Section 6 hereof. If the Expiration Date is a day on which banking institutions are authorized by law to close, then this Purchase Option may be exercised on the next succeeding day which is not such a day in accordance with the terms herein. During the period ending on the Expiration Date, the Company agrees not to take any action that would terminate the Purchase Option. This Purchase Option is initially exercisable at $___ per Share (125% of the offering price of the Shares sold in the Offering); provided, however, that upon the occurrence of any of the events specified in Section 6 hereof, the rights granted by this Purchase Option, including the exercise price per Share and the number of Shares to be received upon such exercise, shall be adjusted as therein specified. The term “Exercise Price” shall mean the initial exercise price or the adjusted exercise price, depending on the context. 

2.    Exercise.

2.1    Exercise Form. In order to exercise this Purchase Option, the exercise form attached hereto must be duly executed and completed and delivered to the Company, together with this Purchase Option and payment of the Exercise Price for the Shares being purchased payable in cash by wire transfer of immediately 

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available funds to an account designated by the Company or by certified check or official bank check. If the subscription rights represented hereby shall not be exercised at or before 5:00 p.m., Eastern time, on the Expiration Date, this Purchase Option shall become and be void without further force or effect, and all rights represented hereby shall cease and expire. 
2.2    Cashless Exercise.  In lieu of exercising this Purchase Option by payment of cash or check payable to the order of the Company pursuant to Section 2.1 above, if at the time of exercise hereof a registration statement is not effective (or the prospectus contained therein is not available for use) for the issuance to the Holder or the resale by the Holder of the Shares issuable in such exercise of this Purchase Option, Holder may elect to receive the number of Shares equal to the value of this Purchase Option (or the portion thereof being exercised), by surrender of this Purchase Option to the Company, together with the exercise form attached hereto, in which event the issue to Holder, Shares in accordance with the following formula:

	
								
	 
	X
	=
	Y(A-B)
	 

	A
	 

	Where,
	X
	=
	The number of Shares to be issued to Holder;

	 
	Y
	=
	The number of Shares for which the Purchase Option is being exercised;

	 
	A
	=
	The fair market value of one Share; and

	 
	B
	=
	The Exercise Price.

For purposes of this Section 2.2, the fair market value of a Share is defined as follows:
(i)if the Company's common stock is traded on a national securities exchange, the value shall be deemed to be the closing price on such exchange prior to the exercise form being submitted in connection with the exercise of the Purchase Option; or
(ii)if the Company's common stock is actively traded over-the-counter, the value shall be deemed to be the closing bid price prior to the exercise form being submitted in connection with the exercise of the Purchase Option; if there is no active public market, the value shall be the fair market value thereof, as determined in good faith by the Company's Board of Directors.

2.3     Legend. Each certificate for the securities purchased under this Purchase Option shall bear a legend as follows unless such securities have been registered under the Securities Act of 1933, as amended (the “Securities Act”): 

“The securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state law. Neither the securities nor any interest therein may be offered for sale, sold or otherwise transferred except pursuant to an effective registration statement under the Securities Act, or pursuant to an exemption from registration under the Securities Act and applicable state law which, in the opinion of counsel to the Company, is available.” 

3.    Transfer.

3.1    General Restrictions. The registered Holder of this Purchase Option agrees by his, her or its acceptance hereof, that such Holder will not: (a) sell, transfer, assign, pledge or  hypothecate this Purchase Option for a period of one hundred eighty (180) days following the  Effective Date to anyone other than: (i) Aegis Capital Corp. (“Aegis”) or an underwriter or a selected dealer participating in the Offering, or (ii) a bona fide officer or partner of Aegis or of any such underwriter or selected dealer, in each case in accordance with FINRA Conduct Rule 5110(g)(1), or (b) cause this Purchase Option or the securities issuable hereunder 

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to be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of this Purchase Option or the securities hereunder, except as provided for in FINRA Rule 5110(g)(2). On and after 180 days after the Effective Date, transfers to others may be made subject to compliance with or exemptions from applicable securities laws. In order to make any permitted assignment, the Holder must deliver to the Company the assignment form attached hereto duly executed and completed, together with the Purchase Option and payment of all transfer taxes, if any, payable in connection therewith. The Company shall within five (5) Business Days transfer this Purchase Option on the books of the Company and shall execute and deliver a new Purchase Option or Purchase Options of like tenor to the appropriate assignee(s) expressly evidencing the right to purchase the aggregate number of Shares purchasable hereunder or such portion of such number as shall be contemplated by any such assignment. 

3.2     Restrictions Imposed by the Securities Act. The securities evidenced by this Purchase Option shall not be transferred unless and until: (i) the Company has received the opinion of counsel for the Holder that the securities may be transferred pursuant to an exemption from registration under the Securities Act and applicable state securities laws, the availability of which is established to the reasonable satisfaction of the Company (the Company hereby agreeing that the opinion of Greenberg Traurig shall be deemed satisfactory evidence of the availability of an exemption), or (ii) a registration statement or a post-effective amendment to the Registration Statement relating to the offer and sale of such securities has been filed by the Company and declared effective by the U.S. Securities and Exchange Commission (the “Commission”) and compliance with applicable state securities law has been established. 

4.    Registration Rights.

4.1    Demand Registration.

4.1.1    Grant of Right. The Company, upon written demand (a “Demand Notice”) of the Holder(s) of at least 51% of the Purchase Options and/or the underlying Shares (“Majority Holders”), agrees to register, on one occasion, all or any portion of the Shares underlying the Purchase Options (collectively, the “Registrable Securities”). On such occasion, the Company will file a registration statement with the SEC covering the Registrable Securities within sixty (60) days after receipt of a Demand Notice and use its reasonable best efforts to have the registration statement declared effective promptly thereafter, subject to compliance with review by the SEC; provided, however, that the Company shall not be required to comply with a Demand Notice if the Company has filed a registration statement with respect to which the Holder is entitled to piggyback registration rights pursuant to Section 4.2 hereof and either: (i) the Holder has elected to participate in the offering covered by such registration statement or (ii) if such registration statement relates to an underwritten primary offering of securities of the Company, until the offering covered by such registration statement has been withdrawn or until thirty (30) days after such offering is consummated. The demand for registration may be made at any time during a period of four (4) years beginning one (1) year after the Closing Date. The Company covenants and agrees to give written notice of its receipt of any Demand Notice by any Holder(s) to all other registered Holders of the Purchase Options and/or the Registrable Securities within ten (10) days after the date of the receipt of any such Demand Notice. 

4.1.2     Terms. The Company shall bear all fees and expenses attendant to the registration of the Registrable Securities pursuant to Section 4.1.1, but the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to represent them in connection with the sale of the Registrable Securities. The Company agrees to use its reasonable best efforts to cause the filing required herein to become effective promptly and to qualify or register the Registrable Securities in such States as are reasonably requested by the Holder(s); provided, however, that in no event shall the Company be required to register the Registrable Securities in a State in which such registration would cause: (i) the Company to be obligated to register or license to do business in such State or submit to general service of process in such 

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State, or (ii) the principal shareholders of the Company to be obligated to escrow their shares of capital stock of the Company. The Company shall cause any registration statement filed pursuant to the demand right granted under Section 4.1.1 to remain effective for a period of at least twelve (12) consecutive months after the date that the Holders of the Registrable Securities covered by such registration statement are first given the opportunity to sell all of such securities. The Holders shall only use the prospectuses provided by the Company to sell the shares covered by such registration statement, and will immediately cease to use any prospectus furnished by the Company if the Company advises the Holder that such prospectus may no longer be used due to a material misstatement or omission. 

4.2    “Piggy-Back” Registration.

4.2.1    Grant of Right. In addition to the demand right of registration described in Section 4.1 hereof, the Holder shall have the right, for a period of four (4) years commencing one (1) year after the Closing Date, to include the Registrable Securities as part of any other registration of securities filed by the Company (other than in connection with a transaction contemplated by Rule 145 (a) promulgated under the Securities Act or pursuant to Form S-8 or any equivalent form); provided, however, that if, solely in connection with any primary underwritten public offering for the account of the Company, the managing underwriter(s) thereof shall, in its reasonable discretion, impose a limitation on the number of shares of Common Stock which may be included in the Registration Statement because, in such underwriter(s)' judgment, marketing or other factors dictate such limitation is necessary to facilitate public distribution, then the Company shall be obligated to include in such Registration Statement only such limited portion of the Registrable Securities with respect to which the Holder requested inclusion hereunder as the underwriter shall reasonably permit. Any exclusion of Registrable Securities shall be made pro rata among the Holders seeking to include Registrable Securities in proportion to the number of Registrable Securities sought to be included by such Holders; provided, however, that the Company shall not exclude any Registrable Securities unless the Company has first excluded all outstanding securities, the holders of which are not entitled to inclusion of such securities in such Registration Statement or are not entitled to pro rata inclusion with the Registrable Securities. 

4.2.2     Terms. The Company shall bear all fees and expenses attendant to registering the Registrable Securities pursuant to Section 4.2.1 hereof, but the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to represent them in connection with the sale of the Registrable Securities. In the event of such a proposed registration, the Company shall furnish the then Holders of outstanding Registrable Securities with not less than thirty (30) days written notice prior to the proposed date of filing of such registration statement. Such notice to the Holders shall continue to be given for each registration statement filed by the Company until such time as all of the Registrable Securities have been sold by the Holder. The holders of the Registrable Securities shall exercise the “piggy-back” rights provided for herein by giving written. notice, within ten (10) days of the receipt of the Company's notice of its intention to file a registration statement. 

4.3    General Terms.

4.3.1    Indemnification. The Company shall indemnify the Holder(s) of the Registrable Securities to be sold pursuant to any registration statement hereunder and each person, if any, who controls such Holders within the meaning of Section 15 of the Securities Act or Section 20 (a) of the Securities Exchange Act of 1934, as amended (“Exchange Act”), against all loss, claim, damage, expense or liability (including all reasonable attorneys' fees and other expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which any of them may become subject under the Securities Act, the Exchange Act or otherwise, arising from such registration statement but only to the same extent and with the same effect as the provisions pursuant to which the Company has agreed to indemnify the Underwriter contained in Section 

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5.1 of the Underwriting Agreement between the Underwriter and the Company, dated as of ___________, 2012. The Holder(s) of the Registrable Securities to be sold pursuant to such registration statement, and their successors and assigns, shall severally, and not jointly, indemnify the Company, against all loss, claim, damage, expense or liability (including all reasonable attorneys' fees and other expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which they may become subject under the Securities Act, the Exchange Act or otherwise, arising from information furnished by or on behalf of such Holders, or their successors or assigns, in writing, for specific inclusion in such registration statement to the same extent and with the same effect as the provisions contained in Section 5.2 of the Underwriting Agreement pursuant to which the Underwriter have agreed to indemnify the Company. 

4.3.2     Exercise of Purchase Options. Nothing contained in this Purchase Option shall be construed as requiring the Holder(s) to exercise their Purchase Options prior to or after the initial filing of any registration statement or the effectiveness thereof. 

4.3.3     Documents Delivered to Holders. The Company shall furnish to each Holder participating in any of the foregoing offerings and to each underwriter of any such offering, if any, a signed counterpart, addressed to such Holder or underwriter, of: (i) an opinion of counsel to the Company, dated the effective date of such registration statement (and, if such registration includes an underwritten public offering, an opinion dated the date of the closing under any underwriting agreement related thereto), and (ii) a “cold comfort” letter dated the effective date of such registration statement (and, if such registration includes an underwritten public offering, a letter dated the date of the closing under the underwriting agreement) signed by the independent registered public accounting firm which has issued a report on the Company's financial statements included in such registration statement, in each case covering substantially the same matters with respect to such registration statement (and the prospectus included therein) and, in the case of such accountants' letter, with respect to events subsequent to the date of such financial statements, as are customarily covered in opinions of issuer's counsel and in accountants' letters delivered to underwriters in underwritten public offerings of securities. The Company shall also deliver promptly to each Holder participating in the offering requesting the correspondence and memoranda described below and to the managing underwriter, if any, copies of all correspondence between the SEC and the Company, its counsel or auditors and all memoranda relating to discussions with the SEC or its staff with respect to the registration statement and permit each Holder and underwriter to do such investigation, upon reasonable advance notice, with respect to information contained in or omitted from the registration statement as it deems reasonably necessary to comply with applicable securities laws or rules of FINRA. Such investigation shall include access to books, records and properties and opportunities to discuss the business of the Company with its officers and independent auditors, all to such reasonable extent and at such reasonable times as any such Holder shall reasonably request. 

4.3.4     Underwriting Agreement. The Company shall enter into an underwriting agreement with the managing underwriter(s), if any, selected by any Holders whose Registrable Securities are being registered pursuant to this Section 4, which managing underwriter shall be reasonably satisfactory to the Company. Such agreement shall be reasonably satisfactory in form and substance to the Company, each Holder and such managing underwriters, and shall contain such representations, warranties and covenants by the Company and such other terms as are customarily contained in agreements of that type used by the managing underwriter. The Holders shall be parties to any underwriting agreement relating to an underwritten sale of their Registrable Securities and may, at their option, require that any or all the representations, warranties and covenants of the Company to or for the benefit of such underwriters shall also be made to and for the benefit of such Holders. Such Holders shall not be required to make any representations or warranties to or agreements with the Company or the underwriters except as they may relate to such Holders, their Shares and their intended methods of distribution. 

4.3.5     Documents to be Delivered by Holder(s). Each of the Holder(s) participating in any of the 

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foregoing offerings shall furnish to the Company a completed and executed questionnaire provided by the Company requesting information customarily sought of selling security holders. 

4.3.6     Damages. Should the registration or the effectiveness thereof required by Sections 4.1 and 4.2 hereof be delayed by the Company or the Company otherwise fails to comply with such provisions, the Holder(s) shall, in addition to any other legal or other relief available to the Holder(s), be entitled to obtain specific performance or other equitable (including injunctive) relief against the threatened breach of such provisions or the continuation of any such breach, without the necessity of proving actual damages and without the necessity of posting bond or other security. 

5.    New Purchase Options to be Issued.

5.1    Partial Exercise or Transfer. Subject to the restrictions in Section 3 hereof, this Purchase Option may be exercised or assigned in whole or in part. In the event of the exercise or assignment hereof in part only, upon surrender of this Purchase Option for cancellation, together with the duly executed exercise or assignment form and funds sufficient to pay any Exercise Price and/or transfer tax if exercised pursuant to Section 2.1 hereto, the Company shall cause to be delivered to the Holder without charge a new Purchase Option of like tenor to this Purchase Option in the name of the Holder evidencing the right of the Holder to purchase the number of Shares purchasable hereunder as to which this Purchase Option has not been exercised or assigned. 

5.2     Lost Certificate. Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Purchase Option and of reasonably satisfactory indemnification or the posting of a bond, the Company shall execute and deliver a new Purchase Option of like tenor and date. Any such new Purchase Option executed and delivered as a result of such loss, theft, mutilation or destruction shall constitute a substitute contractual obligation on the part of the Company. 

6.    Adjustments.

6.1    Adjustments to Exercise Price and Number of Securities. The Exercise Price and the number of Shares underlying the Purchase Option shall be subject to adjustment from time to time as hereinafter set forth: 
6.1.1    Share Dividends; Split Ups. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding Shares is increased by a stock dividend payable in Shares or by a split up of Shares or other similar event, then, on the effective day thereof, the number of Shares purchasable hereunder shall be increased in proportion to such increase in outstanding shares, and the Exercise Price shall be proportionately increased. 

6.1.2     Aggregation of Shares. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding Shares is decreased by a consolidation, combination or reclassification of Shares or other similar event, then, on the effective date thereof, the number of Shares purchasable hereunder shall be decreased in proportion to such decrease in outstanding shares. 

6.1.3      Replacement of Securities upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding Shares other than a change covered by Section 6.1.1 or 6.1.2 hereof or that solely affects the par value of such Shares, or in the case of any share reconstruction or amalgamation or consolidation of the Company with or into another corporation (other than a consolidation or share reconstruction or amalgamation in which the Company is the continuing corporation and that does not result in any reclassification or reorganization of the outstanding Shares), or in the case of any sale or conveyance 

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to another corporation or entity of the property of the Company as an entirety or substantially as an entirety in connection with which the Company is dissolved, the Holder of this Purchase Option shall have the right thereafter (until the expiration of the right of exercise of this Purchase Option) to receive upon the exercise hereof, for the same aggregate Exercise Price payable hereunder immediately prior to such event, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization, share reconstruction or amalgamation, or consolidation, or upon a dissolution following any such sale or transfer, by a Holder of the number of Shares of the Company obtainable upon exercise of this Purchase Option immediately prior to such event; and if any reclassification also results in a change in Shares covered by Section 6.1.1 or 6.1.2, then such adjustment shall be made pursuant to Sections 6.1.1, 6.1.2 and this Section 6.1.3. The provisions of this Section 6.1.3 shall similarly apply to successive reclassifications, reorganizations, share reconstructions or amalgamations, or consolidations, sales or other transfers. 

6.1.4     Changes in Form of Purchase Option. This form of Purchase Option need not be changed because of any change pursuant to this Section 6.1, and Purchase Options issued after such change may state the same Exercise Price and the same number of Shares as are stated in the Purchase Options initially issued pursuant to this Agreement. The acceptance by any Holder of the issuance of new Purchase Options reflecting a required or permissive change shall not be deemed to waive any rights to an adjustment occurring after the Commencement Date or the computation thereof. 

6.2     Substitute Purchase Option. In case of any consolidation of the Company with, or share reconstruction or amalgamation of the Company with or into, another corporation (other than a consolidation or share reconstruction or amalgamation which does not result in any reclassification or change of the outstanding Shares), the corporation formed by such consolidation or share reconstruction or amalgamation shall execute and deliver to the Holder a supplemental Purchase Option providing that the holder of each Purchase Option then outstanding or to be outstanding shall have the right thereafter (until the stated expiration of such Purchase Option) to receive, upon exercise of such Purchase Option, the kind and amount of shares of stock and other securities and property receivable upon such consolidation or share reconstruction or amalgamation, by a holder of the number of Shares of the Company for which such Purchase Option might have been exercised immediately prior to such consolidation, share reconstruction or amalgamation, sale or transfer. Such supplemental Purchase Option shall provide for adjustments which shall be identical to the adjustments provided for in this Section 6. The above provision of this Section shall similarly apply to successive consolidations or share reconstructions or amalgamations. 

6.3     Elimination of Fractional Interests. The Company shall not be required to issue certificates representing fractions of Shares upon the exercise of the Purchase Option, nor shall it be required to issue scrip or pay cash in lieu of any fractional interests, it being the intent of the parties that all fractional interests shall be eliminated by rounding any fraction up or down, as the case may be, to the nearest whole number of Shares or other securities, properties or rights. 

7.     Reservation and Listing. The Company shall at all times reserve and keep available out of its authorized Shares, solely for the purpose of issuance upon exercise of the Purchase Options, such number of Shares or other securities, properties or rights as shall be issuable upon the exercise thereof. The Company covenants and agrees that, upon exercise of the Purchase Options and payment of the Exercise Price therefor, in accordance with the terms hereby, all Shares and other securities issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable and not subject to preemptive rights of any shareholder. The Company further covenants and agrees that upon exercise of the Purchase Options and payment of the exercise price therefor, all Shares and other securities issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable and not subject to preemptive rights of any shareholder. As long as the Purchase Options shall be outstanding, the Company shall use its commercially reasonable efforts to cause all Shares 

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issuable upon exercise of the Purchase Options to be listed (subject to official notice of issuance) on all national securities exchanges (or, if applicable, on the OTC Bulletin Board or any successor trading market) on which the Shares issued to the public in the Offering may then be listed and/or quoted. 

8.    Certain Notice Requirements.

8.1    Holder's Right to Receive Notice. Nothing herein shall be construed as conferring upon the Holders the right to vote or consent or to receive notice as a shareholder for the election of directors or any other matter, or as having any rights whatsoever as a shareholder of the Company. If, however, at any time prior to the expiration of the Purchase Options and their exercise, any of the events described in Section 8.2 shall occur, then, in one or more of said events, the Company shall give written notice of such event at least fifteen days prior to the date fixed as a record date or the date of closing the transfer books for the determination of the shareholders entitled to such dividend, distribution, conversion or exchange of securities or subscription rights, or entitled to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of the closing of the transfer books, as the case may be. Notwithstanding the foregoing, the Company shall deliver to each Holder a copy of each notice given to the other shareholders of the Company at the same time and in the same manner that such notice is given to the shareholders. 

8.2     Events Requiring Notice. The Company shall be required to give the notice described in this Section 8 upon one or more of the following events: (i) if the Company shall take a record of the holders of its Shares for the purpose of entitling them to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of retained earnings, as indicated by the accounting treatment of such dividend or distribution on the books of the Company, (ii) the Company shall offer to all the holders of its Shares any additional shares of capital stock of the Company or securities convertible into or exchangeable for shares of capital stock of the Company, or any option, right or warrant to subscribe therefor, or (iii) a dissolution, liquidation or winding up of the Company (other than in connection with a consolidation or share reconstruction or amalgamation) or a sale of all or substantially all of its property, assets and business shall be proposed. 

8.3     Notice of Change in Exercise Price. The Company shall, promptly after an event requiring a change in the Exercise Price pursuant to Section 6 hereof, send notice to the Holders of such event and change (“Price Notice”). The Price Notice shall describe the event causing the change and the method of calculating same and shall be certified as being true and accurate by the Company's Chief Financial Officer. 

8.4     Transmittal of Notices. All notices, requests, consents and other communications under this Purchase Option shall be in writing and shall be deemed to have been duly made when hand delivered, or mailed by express mail or private courier service: (i) if to the registered Holder of the Purchase Option, to the address of such Holder as shown on the books of the Company, or (ii) if to the Company, to following address or to such other address as the Company may designate by notice to the Holders: 

If to the Holder:
Aegis Capital Corp.
810 Seventh Avenue, 11th Floor
New York, New York 10019
Attn: Mr. David Bocchi, Senior Managing Director of
Investment Banking
Fax No.: (212) 813-1047

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Copy to:

Gersten Savage, LLP
600 Lexington Ave., 9th Floor
New York, New York 10022
Attn: David Danovitch, Esq.
Fax No.: (212) 752-9700
If to the Company:

IZEA, Inc.
150 N. Orange Avenue, Suite 412
Orlando, Florida 32801
Attention: Mr. Edward H. (Ted) Murphy
President and Chief Executive Officer
Fax No: (407) 264-8489
Copy to:

Greenberg Traurig, LLP
MetLife Building
200 Park Avenue, 15th Floor
New York, New York 10166
Attn: Spencer G. Feldman, Esq.
Fax No.: (212) 801-6400
9.    Miscellaneous.

9.1    Amendments. The Company and Aegis may from time to time supplement or amend this Purchase Option without the approval of any of the Holders in order to cure any ambiguity, to correct or supplement any provision contained herein that may be defective or inconsistent with any other provisions herein, or to make any other provisions in regard to matters or questions arising hereunder that the Company and Aegis may deem necessary or desirable and that the Company and Aegis shall deem not to adversely affect the interest of the Holders. All other modifications or amendments shall require the written consent of and be signed by the party against whom enforcement of the modification or amendment is sought. 

9.2     Headings. The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the meaning or interpretation of any of the terms or provisions of this Purchase Option. 

9.3.     Entire Agreement. This Purchase Option (together with the other agreements and documents being delivered pursuant to or in connection with this Purchase Option) constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof. 

9.4     Binding Effect. This Purchase Option shall inure solely to the benefit of and shall be binding upon, the Holder and the Company and their permitted assignees, respective successors, legal representative and assigns, and no other person shall have or be construed to have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Purchase Option or any provisions herein contained. 

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9.5     Governing Law; Submission to Jurisdiction. This Purchase Option shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect to conflict of laws principles thereof. The Company hereby agrees that any action, proceeding or claim against it arising out of, or relating in any way to this Purchase Option shall be brought and enforced in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any process or summons to be served upon the Company may be served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 8 hereof. Such mailing shall be deemed personal service and shall be legal and binding upon the Company in any action, proceeding or claim. The Company and the Holder agree that the prevailing party(ies) in any such action shall be entitled to recover from the other party(ies) all of its reasonable attorneys' fees and expenses relating to such action or proceeding and/or incurred in connection with the preparation therefor. 

9.6     Waiver, etc. The failure of the Company or the Holder to at any time enforce any of the provisions of this Purchase Option shall not be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Purchase Option or any provision hereof or the right of the Company or any Holder to thereafter enforce each and every provision of this Purchase Option. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Purchase Option shall be effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement of such waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be a waiver of any other or subsequent breach, non-compliance or non-fulfillment. 

9.7     Execution in Counterparts. This Purchase Option may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement, and shall become effective when one or more counterparts has been signed by each of the parties hereto and delivered to each of the other parties hereto. Such counterparts may be delivered by facsimile transmission or other electronic transmission. 

9.8     Exchange Agreement. As a condition of the Holder's receipt and acceptance of this Purchase Option, Holder agrees that, at any time prior to the complete exercise of this Purchase Option by Holder, if the Company and Aegis enter into an agreement (“Exchange Agreement”) pursuant to which they agree that all outstanding Purchase Options will be exchanged for securities or cash or a combination of both, then Holder shall agree to such exchange and become a party to the Exchange Agreement. 

[Remainder of page intentionally left blank]

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IN WITNESS WHEREOF, the Company has caused this Purchase Option to be signed by its duly authorized officer as of the ____ day of _______, 2012. 

IZEA, INC.

By:_________________________________
Edward H. (Ted) Murphy
President and Chief Executive Officer

11Exhibit 10.1: FORM OF NON-QUALIFIED OPTION AGREEMENT

POWER REIT
2012 EQUITY INCENTIVE PLAN
NON-QUALIFIED OPTION AGREEMENT

Power REIT, a Maryland real estate investment trust (the "Company"),
hereby grants an option to purchase shares of its common stock, par value
$0.001 (the "Option"), to the Grantee named below, subject to the vesting
and other conditions set forth below. Additional terms and conditions of
the grant are set forth in this cover sheet and in the attachment
(collectively, the "Agreement"), and in the Company's 2012 Equity
Incentive Plan (as amended from time to time, the "Plan").

Grant Date: 				_______________________

Name of Grantee: 			_______________________

Number of Shares Covered by Option: 	_______________________

Option Price per Share: 		$_______________________

Vesting Schedule 		The Option shall vest on
				each vesting date set forth below*:

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*Vesting shall be rounded to the nearest
whole share and in no event shall the
cumulative number of options vested exceed
the shares covered by this grant.

By your signature below, you agree to all of the terms and conditions
described herein, in the attached Agreement and in the Plan, a copy of
which is also attached. You acknowledge that you have carefully reviewed
the Plan, and agree that the Plan will control in the event any provision
of this cover sheet or Agreement should appear to be inconsistent.

Grantee:  	_____________   Date:  _____________
		(Signature)

Company:  	_____________   Date:  _____________
		(Signature)

Title:  	_____________________________

Attachment

This is not a stock certificate or a negotiable instrument.

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POWER REIT
2012 EQUITY INCENTIVE PLAN
NON-QUALIFIED OPTION AGREEMENT

Non-qualified Option

This Agreement evidences an award of an Option exercisable for that number
of shares of Stock set forth on the cover sheet and subject to the vesting
and other conditions set forth herein, in the Plan and on the cover sheet.
This option is not intended to be an incentive option under Section 422 of
the Internal Revenue Code and will be interpreted accordingly.

Transfer of Option

During your lifetime, only you (or, in the event of your legal incapacity,
incompetency or death, your guardian or legal representative) may exercise
the Option. The Option may not be sold, assigned, transferred, pledged,
hypothecated or otherwise encumbered, whether by operation of law or
otherwise, nor may the Option be made subject to execution, attachment or
similar process. If you attempt to do any of these things, this Option
will immediately become forfeited.

Notwithstanding these restrictions on transfer, the Plan administrator may
authorize, in its sole discretion, the transfer of a vested Option (in
whole or in part) to a member of your immediate family or a trust for the
benefit of your immediate family.

Vesting

Your Option shall vest in accordance with the vesting schedule shown on
the cover sheet so long as you continue in Service on the vesting dates
set forth on the cover sheet and is exercisable only as to its vested
portion.

Notwithstanding your vesting schedule, your Option will become 100% vested
upon termination of your Service due to your death, Disability or
Involuntary Termination.

"Involuntary Termination" means termination of your Service by reason of
your involuntary dismissal by the Company or its successor for reasons
other than Cause[; or your voluntary resignation for Good Reason as
defined in any applicable employment or severance agreement, plan, or
arrangement between you and the Company, or if none, then following (x) a
substantial adverse alteration in your title or responsibilities from
those in effect immediately prior to such alteration; (y) a reduction in
your annual base salary or consulting fee (or as the same may be increased
from time to time) or a material reduction in your annual target bonus
opportunity; or (z) the relocation of your principal place of employment
to a location more than 35 miles from your principal place of employment
or the Company's requiring you to be based anywhere other than such
principal place of employment (or permitted relocation thereof) except for
required travel on the Company's business to an extent substantially
consistent with your business travel obligations prior to such new travel
requirements. To qualify as an "Involuntary Termination" you must provide
notice to the Company of any of the foregoing occurrences within 120 days
of the initial occurrence and the Company shall have 30 days to remedy
such occurrence]. [Include bracketed section for senior management and
other individuals so designated by the Board]

Change in Control

Notwithstanding the vesting schedule set forth above, upon the
consummation of a Change in Control, this option will become 100% vested
(i) if it is not assumed, or equivalent options are not substituted for
the options, by the Company or its successor, or (ii) if assumed or
substituted for, upon your Involuntary Termination following the
consummation of the Change in Control.

Forfeiture of Unvested Options / Term

Unless the termination of your Service triggers accelerated vesting or
other treatment of your Option pursuant to the terms of this Agreement,
the Plan, or any other written agreement between an Applicable Entity and
you, you will automatically forfeit to the Company those portions of the
Option that have not yet vested in the event your Service terminates for
any reason. Your option will expire in any event at the close of business
at Company headquarters on the day before the 10th anniversary of the
Grant Date, as shown on the cover sheet. Your option will expire earlier
if your Service terminates, as described below.

Expiration of Vested Options After Service Terminates

If your Service terminates for any reason, other than death, Disability,
Involuntary Termination or Cause, then the vested portion of your Option
will expire at the close of business at Company headquarters on the 120th
day after your termination date.

If your Service terminates for death, Disability or Involuntary
Termination, then the vested portion of your Option will expire at the
close of business at the Company headquarters on the date twelve (12)
months from such death, Disability or Involuntary Termination.  If your
Service terminates for death or Disability, during that twelve (12) month
period, your estate / heirs, personal representative or assign may
exercise the vested portion of your Option.

If your Service is terminated for Cause, then you shall immediately
forfeit all rights to your entire Option and the Option shall immediately
expire.

Forfeiture of Rights

If you should take actions in violation or breach of or in conflict with
any non-competition agreement, any agreement prohibiting solicitation of
employees or clients of the Company or any Affiliate or any
confidentiality obligation with respect to the Company or any Affiliate or
otherwise directly in competition with the Company or any Affiliate or if
you are terminated for Cause ("Forfeiture Actions"), the Company has the
right to cause an immediate forfeiture of your rights to this Option and
the Option shall immediately expire.  In addition, if you have exercised
any options during the one (1) year period prior to receiving a forfeiture
notice from Company, you will owe the Company a cash payment (or
forfeiture of shares of such Stock) in an amount determined as follows:
(1) for any shares of Stock acquired through this Agreement that you have
sold prior to receiving notice from the Company, the amount will be the
proceeds received from the sale(s) of such Stock, less the option exercise
price, and (2) for any shares of Stock that you have acquired through this
Agreement that you still own, the amount will be the number of shares of
such Stock owned times the Fair Market Value of the shares of Stock on the
date you receive notice from the Company, less the option exercise price
(provided, that the Company may require you to satisfy your payment
obligations hereunder either by forfeiting and returning to the Company
such shares or making a cash payment or a combination of these methods as
determined by the Company in its sole discretion).

Leaves of Absence

For purposes of this Agreement, your Service does not terminate when you
go on a bona fide leave of absence that was approved by the Company in
writing if the terms of the leave provide for continued Service crediting,
or when continued Service crediting is required by applicable law. Your
Service terminates in any event when the approved leave ends unless you
immediately return to active employee work.
The Company may determine, in its discretion, which leaves count for this
purpose, and when your Service terminates for all purposes under the Plan
in accordance with the provisions of the Plan.

Notice of Exercise

The Option may be exercised, in whole or in part, to purchase a whole
number of vested shares of Stock of not less than 100 shares, unless the
number of vested shares purchased is the total number available for
purchase under the option, by following the procedures set forth in the
Plan and in this Agreement.

When you wish to exercise this Option, you must exercise in a manner
required or permitted by the Company. If someone else wants to exercise
this Option after your death, that person must prove to the Company's
satisfaction that he or she is entitled to do so.

Restrictions on Exercise and REIT Compliance

It is intended that any exercise of the vested portion of this Option
shall not result, on a pro-forma basis, in the Company failing to qualify
as a real estate investment trust.  Therefore, the vested portion of this
Option may only be exercised to purchase Stock if, after giving effect to
such purchase, (i) you do not beneficially or constructively exceed the
Ownership Limit under the Company's declaration of trust, as may be
amended from time to time ("Declaration"), or (ii) the Board of Trustees
have provided you a written waiver from the Ownership Restrictions
pursuant to the Declaration. If it is determined that there is a conflict
between this Agreement and the company's compliance with REIT
concentration tests, the company shall reserve the right to amend this
Agreement, only to the minimum extent necessary, to remain in compliance
with such REIT concentration rules.

Form of Payment

When you exercise your Option, you must include payment of the option
price indicated on the cover sheet for the shares you are purchasing.
Payment may be made in one (or a combination) of the following forms:

- Cash, your personal check, a cashier's check, a money order or
another cash equivalent acceptable to the Company; or

- Shares of Stock which are owned by you and which are surrendered to
the Company. The Fair Market Value of the shares as of the effective
date of the option exercise will be applied to the option price; or

- By delivery (on a form prescribed by the Company) of an irrevocable
direction to a licensed securities broker acceptable to the Company
to sell Stock and to deliver all or part of the sale proceeds to the
Company in payment of the aggregate option price and any withholding
taxes (if approved in advance by the Committee of the Board if you
are either an executive officer or a director of the Company); or

- Or another form approved by the Company, in its sole discretion,
which form of payment results in the same economic result as the
three forms of payment listed above.

Evidence of Issuance

The issuance of the shares upon exercise of this Option shall be evidenced
in such a manner as the Company, in its discretion, will deem appropriate,
including, without limitation, book-entry, registration or issuance of one
or more share certificates.

Withholding Taxes

You agree as a condition of this grant that you will make acceptable
arrangements to pay any withholding or other taxes that may be due as a
result of the Option exercise or sale of Stock acquired under this Option.
In the event that any Applicable Entity determines that any federal,
state, local or foreign tax or withholding payment is required relating to
the exercise of this Option or sale of Stock arising from this Option, the
Applicable Entity shall have the right to require such payments from you,
or withhold such amounts from other payments due to you from the
Applicable Entity (including withholding the delivery of vested shares of
Stock otherwise deliverable under this Agreement).

Retention Rights

This Agreement and this Option do not give you the right to be retained by
any Applicable Entity in any capacity. Unless otherwise specified in an
employment or other written agreement between the Applicable Entity and
you, the Applicable Entity reserves the right to terminate your Service at
any time and for any reason.

Stockholder Rights

You, or your estate or heirs, have no rights as a shareholder of the
Company until the Stock has been issued upon exercise of your Option and
either a certificate evidencing your Stock has been issued or an
appropriate entry has been made on the Company's books. No adjustments are
made for dividends, distributions or other rights if the applicable record
date occurs before your certificate is issued (or an appropriate book
entry is made), except as described in the Plan.

Your Option shall be subject to the terms of any applicable agreement of
merger, liquidation or reorganization in the event the Company is subject
to such corporate activity.

Clawback

This Award is subject to mandatory repayment by you to the Company to the
extent you are or in the future become subject to any Company "clawback"
or recoupment policy that requires the repayment by you to the Company of
compensation paid by the Company to you in the event that you fail to
comply with, or violate, the terms or requirements of such policy.

If the Company is required to prepare an accounting restatement due to the
material noncompliance of the Company, as a result of misconduct, with any
financial reporting requirement under the securities laws, and you are
subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley
Act of 2002 and you knowingly engaged in the misconduct, were grossly
negligent in engaging in the misconduct, knowingly failed to prevent the
misconduct or were grossly negligent in failing to prevent the misconduct,
you shall reimburse the Company the amount of any payment in settlement of
this Award earned or accrued during the 12-month period following the
first public issuance or filing with the United States Securities and
Exchange Commission (whichever first occurred) of the financial document
that contained such material noncompliance.

[Notwithstanding any other provision of the Plan or any provision of this
Agreement, if the Company is required to prepare an accounting
restatement, then you shall forfeit any cash or Stock received in
connection with this Award (or an amount equal to the fair market value of
such Stock on the date of delivery if you no longer hold the shares of
Stock) if pursuant to the terms of this Agreement, the amount of the Award
earned or the vesting in the Award was explicitly based on the achievement
of pre-established performance goals set forth in this Agreement
(including earnings, gains, or other criteria) that are later determined,
as a result of the accounting restatement, not to have been achieved.]
[Include if any performance goals are included in award]

Applicable Law

This Agreement will be interpreted and enforced under the laws of the
State of Maryland, other than any conflicts or choice of law rule or
principle that might otherwise refer construction or interpretation of
this Agreement to the substantive law of another jurisdiction.

The Plan

The text of the Plan is incorporated in this Agreement by reference.
Certain capitalized terms used in this Agreement are defined in the Plan,
and have the meaning set forth in the Plan.

This Agreement and the Plan constitute the entire understanding between
you and the Company regarding this Option. Any prior agreements,
commitments or negotiations concerning this grant are superseded; except
that any written employment, consulting, confidentiality, non-competition,
non-solicitation and/or severance agreement between you and any Applicable
Entity shall supersede this Agreement with respect to its subject matter.

Data Privacy

In order to administer the Plan, the Company may process personal data
about you. Such data includes, but is not limited to, information provided
in this Agreement and any changes thereto, other appropriate personal and
financial data about you such as your contact information, payroll
information and any other information that might be deemed appropriate by
the Company to facilitate the administration of the Plan.

By accepting this grant, you give explicit consent to the Company to
process any such personal data.

Code Section 409A

It is intended that this Award comply with Section 409A of the Code
("Section 409A") or an exemption to Section 409A. To the extent that the
Company determines that you would be subject to the additional 20% tax
imposed on certain non-qualified deferred compensation plans pursuant to
Section 409A as a result of any provision of this Agreement, such
provision shall be deemed amended to the minimum extent necessary to avoid
application of such additional tax. The nature of any such amendment shall
be determined by the Company. For purposes of this Award, a termination of
Service only occurs upon an event that would be a Separation from Service
within the meaning of Section 409A.

By signing this Agreement, you agree to all of the terms and conditions
described above and in the Plan.

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