Document:

Exhibit 10.2

SUBSCRIPTION AGREEMENT

THE SECURITIES OFFERED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR THE SECURITIES LAWS OF ANY STATE. THERE ARE FURTHER
RESTRICTIONS ON THE TRANSFERABILITY OF THE SHARES DESCRIBED HEREIN.

THE ACQUISITION
OF THE SECURITIES OFFERED HEREBY INVOLVES A HIGH DEGREE OF RISK AND SHOULD BE CONSIDERED ONLY BY PERSONS WHO CAN BEAR THE RISK
OF THE LOSS OF THEIR ENTIRE INVESTMENT.

Liberator, Inc.

2745 Bankers Industrial Drive

Atlanta, GA 30360

 

Gentlemen:

 

The undersigned understands
that Liberator, Inc., a Florida corporation (the “Company”), is offering for sale up to 2,850,000 Shares of its Common
Stock, $.01 par value per share (the “Shares”) at a price of $0.10 per share of common stock. This offering is made
pursuant to a Private Placement Term Sheet (the "Term Sheet") dated April 19, 2012, and the Offering Documents, as that
term is described in the Term Sheet. The undersigned further understands that the issuance of the Shares is part of a private offering
by the Company (the “Offering”) that is being made without registration of the Securities under the Securities Act
of 1933, as amended (the “Securities Act”), and is being made only to “Accredited Investors” (as defined
in Rule 501 of Regulation D under the Securities Act).

Section
1.                 
Subscription. Subject to the terms and conditions hereof and the provisions of the
Term Sheet, the undersigned hereby irrevocably subscribes the Shares in the amount set forth on the Signature Page hereto, which
amount is payable as described in Section 4 hereof. The undersigned acknowledges that the Shares, if issued by the Company, will
be subject to restrictions on transfer as further set forth in this Subscription Agreement (the “Agreement”).

Section
2.                 
Acceptance of Subscription and Issuance of Shares. It is understood and agreed that
the Company shall have the sole right, at its complete discretion, to accept or reject this subscription, in whole or in part,
for any reason and that the same shall be deemed to be accepted by the Company only when it is signed by a duly authorized officer
of the Company and delivered to the undersigned at the Closing referred to in Section 3 hereof. Subscriptions need not be accepted
in the order received, and the Shares may be allocated among subscribers. Notwithstanding anything in this Agreement to the contrary,
the Company shall have no obligation to issue the Shares to any person who is a resident of a jurisdiction in which the issuance
of the Shares to him would constitute a violation of the securities, “blue sky” or other similar laws of such jurisdiction
(collectively referred to as the “State Securities Laws”).

Section
3.                 
The Closing. Promptly after receiving the subscriptions for the minimum number of Shares
as set forth in the Term Sheet, the closings of the issuance of the Shares (the “Closing”) shall take place at the
offices of Liberator, Inc. or at such other time and place as the Company shall designate by notice to the undersigned.

 

Section
4.                 
Payment for Shares. Payment for the Shares shall be sent to Continental Stock Transfer
and Trust Company, the escrow agent, by the undersigned in the form of wire transfer of immediately available funds at or prior
to the Closing, in an amount as set forth on the Signature Page hereto. The Company and/or its Transfer Agent shall deliver the
Shares, issued by the Company, to the undersigned within three (3) business days of the Closing.

Section
5.                 
Representations, Warranties and Covenants of the Undersigned. The undersigned hereby
represents and warrants to and covenants with the Company and each officer, director, and agent of the Company that:

5.1             
General.

(a)               
The undersigned has all requisite authority to enter into this Agreement and to perform all the obligations required to
be performed by the undersigned hereunder.

(b)              
The undersigned is a resident of the state set forth on the signature page hereto and is not acquiring an interest in the
Shares as an agent or otherwise for any other person.

5.2             
Information Concerning the Company.

(a)               
The undersigned has received a copy of the Offering Documents. The undersigned has not received any other offering literature
and has relied solely only upon the information contained within such documents in deciding whether to subscribe for the Shares.

(b)              
The undersigned is aware that the Company has a limited operating history and is familiar with the business and financial
condition, properties, operations and prospects of the Company, all as generally described in the Offering Documents. The undersigned
has been given the opportunity to obtain any information necessary to verify the accuracy of the information set forth in the Offering
Documents and has been furnished all such information so requested.

(c)               
The undersigned understands that, unless he notifies the Company in writing to the contrary at or before the Closing, all
the undersigned’s representations, warranties and acknowledgements contained in this Agreement will be deemed to have been
reaffirmed and confirmed as of the Closing, taking into account all information received by the undersigned.

(d)              
The undersigned understands that the investment in the Company through the Shares involves various risks as outlined in
the Offering Documents.

(e)The undersigned understands
that no federal or state agency has passed upon the Shares or made any finding or determination concerning the fairness or advisability
of this investment.

(f)The undersigned acknowledges
that neither the Company nor any other person offered to sell the Shares to it by means of any form of general advertising, such
as media advertising or seminars.

(g)The undersigned acknowledges
that the Company has the right, in its sole and absolute discretion, to abandon this Offering at any time prior to the Closing
and to return the previously paid subscription amount as set forth on the Signature Page hereto without interest or penalty thereon,
to the undersigned.

(h)The undersigned has not
used any person as a “Purchaser Representative” with the meaning of Regulation D of the Securities Act to represent
it in determining whether it should purchase the Shares.

(i)The undersigned has sufficient
knowledge and experience in financial, business and commercial matters to be capable of evaluating the merits and risks of an investment
in the Company and making an informed investment decision with respect thereto. In this regard, the undersigned is not acquiring
the Shares based upon any representation, oral or written, by any person with respect to the future value of, or income from, the
Shares but rather upon the undersigned's examination and judgment as to the prospects of the Company.

(j)The undersigned has consulted
with the undersigned’s attorney, financial advisors and others regarding all financial, securities and tax aspects of the
proposed investment, and that said advisors have reviewed all Offering Documents on the undersigned’s behalf.

(k) Disclosure; Access to Information. The
Investor has received all documents, records, books and other publicly available information pertaining to the Investor’s
investment in the Company as the Investor has requested. The Company has attached as Appendix A its Form 10-K filed with the SEC
on October 12, 2011, its Form 10-Q filed with the SEC on February 14, 2012, and Form 10-Q filed with the SEC on November 17, 2011,
and various Form 8-K’s. The Company has attached as Appendix B a Risk Disclosure Statement dated April 19, 2012. The Investor
acknowledges that the Company is subject to the periodic reporting requirements of the Exchange Act, and the Investor has been
afforded the opportunity to review copies of all SEC Documents deemed relevant by the Investor and the investor acknowledges that
such information can be accessed through the SEC website at www.sec.gov.

 

(l)The undersigned acknowledges the conflicts
of interest disclosed in the Term Sheet. As a result there may be a conflict of interest between the undersigned and the Placement
Agent and the undersigned hereby waives any claim for conflict of interest against the Placement Agent.

 

5.3             
Status of Undersigned.

(a)               
The undersigned has such knowledge, skill and experience in business, financial and investment matters so that he is capable
of evaluating the merits and risks of an investment in the Company through the Shares.

(b)              
The undersigned is an “Accredited Investor” as defined in Rule 501(a) under the Securities Act. The undersigned
agrees to furnish any additional information requested to assure compliance with applicable federal and state securities laws in
connection with the issued of the Shares. The undersigned acknowledges that he has completed the Questionnaire contained in Appendix
C and that the information contained therein is complete and accurate as of the date thereof and is hereby affirmed as of the date
hereof.

5.4             
Restrictions on Transfer or Sale of Securities.

(a)               
The undersigned is being issued the Shares (the securities represented thereby being referred to herein as the “Securities”)
solely for his own beneficial account, for investment purposes, and not with a view to, or for, resale in connection with any distribution
of the Securities. The undersigned understands that the Securities have not been registered under the Securities Act or any State
Securities Laws by reason of specific exemptions under the provisions thereof which depend in part upon the investment intent of
the undersigned and of the other representations made by the undersigned in this Agreement. The undersigned understands that the
Company is relying upon the representations and agreements contained in this Agreement (and any supplemental information) for the
purpose of determining whether this transaction meets the requirements for such exemptions.

(b)              
The undersigned understands that the Securities are “restricted securities” under applicable federal securities
laws and that the Securities Act and the rules of the Securities and Exchange Commission (the “Commission”) provide
in substance that the undersigned may dispose of the Securities only pursuant to an effective registration statement under the
Securities Act or an exemption therefrom, and the undersigned understands that the Company has no obligation or intention to register
the Securities, except for certain registration rights as set forth in Section 8 below, or to take action so as to assist sales
pursuant to the Securities Act (including Rule 144 thereunder). Accordingly, the undersigned understands that under the Commission’s
rules, the undersigned may dispose of the Securities principally only in “private transactions” which are exempt from
registration under the Securities Act, in which event the transferee will acquire “restricted securities” subject to
the same limitations as in the hands of the undersigned. As a consequence, the undersigned understands that he must bear the economic
risks of the investment in the Securities for an indefinite period of time.

(c)               
The undersigned understands that a limited public market exists for the Common Stock of the Company and a more significant
public market may never develop.

(d)              
The undersigned agrees: (A) that he will not sell, assign, pledge, give, transfer or otherwise dispose of the Shares or
any interest therein, or make any offer or attempt to do any of the foregoing, except pursuant to a registration of the Shares,
as applicable, under the Securities Act and all applicable State Securities Laws or in a transaction which is exempt from the registration
provisions of the Securities Act and all applicable State Securities Laws; (B) that the certificate(s) for the Shares may bear
a legend making reference to the foregoing restrictions; and (C) that the Company and any transfer agent for the Shares shall not
be required to give effect to any purported transfer of such shares except upon compliance with the foregoing restrictions.

(e)               
The undersigned has not offered or sold any portion of the Shares with others nor has entered into an agreement reselling
or otherwise disposing of any portion of the Shares.

Section 6.                 
Representations, Warranties and Covenants of the Company.

 

As a material inducement
of the Subscribers to enter into this Subscription Agreement and subscribe for the Securities, the Company represents and warrants
to the Subscriber, as of the date hereof, as follows:

 

		(a)	Organization and Standing. The Company is a duly organized corporation, validly existing
and in good standing under the laws of the State of Florida, has full power to carry on its business as and where such business
is now being conducted and to own, lease and operate the properties and assets now owned or operated by it and is duly qualified
to do business and is in good standing in each jurisdiction where the conduct of its business or the ownership of its properties
requires such qualification except where the failure to be so qualified would not have a Material Adverse Effect on the Company.
“Material Adverse Effect” means any circumstance, change in, or effect on the Company that, individually or in the
aggregate with any other similar circumstances, changes in, or effects on, the Company taken as a whole: (i) is, or is reasonably
expected to be, materially adverse to the business, operations, assets, liabilities, employee relationships, customer or supplier
relationships, prospects, results of operations or the condition (financial or otherwise) of the Company taken as a whole, or (ii)
is reasonably expected to adversely affect the ability of the Company to operate or conduct the Company’s business in the
manner in which it is currently operated or conducted or proposed to be operated or conducted by the Company; provided, however,
that none of the following shall be deemed in and of themselves, either alone or in combination, to constitute, and none of the
following shall be taken into account in determining whether there has been or will be, a Material Adverse Effect: (i) any change,
event, state of facts or development generally affecting the general political, economic or business conditions of the United States;
(ii) any change, event, state of facts or development generally affecting the sexual health and wellness industry; (iii) any change,
event, state of facts or development arising from or relating to compliance with the terms of this Subscription Agreement; (iv)
acts of war (whether or not declared), the commencement, continuation or escalation of a war, acts of armed hostility, sabotage
or terrorism or other international or national calamity or any material worsening of such conditions; (v) changes in laws or Generally
Accepted Accounting Principles after date hereof or interpretation thereof; or (vi) any matter set forth in the Offering Documents
or the Schedules or Exhibits thereto.

 

(b)
Subsidiaries. Except for One Up Innovations, Inc. and Foam Labs, Inc., as of the date herein, the Company does not
own or control any subsidiaries. For purposes of this Agreement, “Subsidiary” means, with respect to any entity at
any date, any corporation, limited or general partnership, limited liability company, trust, estate, association, joint venture
or other business entity of which more than 30% of (i) the outstanding capital stock having (in the absence of contingencies)
ordinary voting power to elect a majority of the board of directors or other managing body of such entity, (ii) in the case
of a partnership or limited liability company, the interest in the capital or profits of such partnership or limited liability
company or (iii) in the case of a trust, estate, association, joint venture or other entity, the beneficial interest in such
trust, estate, association or other entity business is, at the time of determination, owned or controlled directly or indirectly
through one or more intermediaries, by such entity.

 

		(c)	Authority. The execution, delivery and performance of this Subscription Agreement and the
Offering Documents by the Company and the consummation of the transactions contemplated hereby have been duly authorized by the
Board of Directors of the Company. Each of the documents contained in the Offering Documents has been (or upon delivery will be)
duly executed by the Company is or, when delivered in accordance with the terms hereof, will constitute, assuming due authorization,
execution and delivery by each of the parties thereto, the valid and binding obligation of the Company enforceable against the
Company in accordance with its terms.

 

		(d)	No Conflict. The execution, delivery and performance of this Subscription Agreement and
the consummation of the transactions contemplated hereby do not (i) violate or conflict with the Company’s Certificate of
Incorporation, By-laws or other organizational documents, (ii) conflict with or result (with the lapse of time or giving of notice
or both) in a material breach or default under any material agreement or instrument to which the Company is a party or by which
the Company is otherwise bound, or (iii) violate any order, judgment, law, statute, rule or regulation applicable to the Company,
except where such violation, conflict or breach would not have a Material Adverse Effect on the Company. This Subscription Agreement
when executed by the Company will be a legal, valid and binding obligation of the Company enforceable in accordance with its terms
(except as may be limited by bankruptcy, insolvency, reorganization, moratorium and similar laws and equitable principles relating
to or limiting creditors’ rights generally).

 

		(e)	Authorization. Issuance of the Securities to Subscriber has been duly authorized by all
necessary corporate actions of the Company.

 

		(f)	Litigation and Other Proceedings. There are no actions, suits, proceedings or investigations
pending or, to the knowledge of the Company, threatened against the Company at law or in equity before or by any court or Federal,
state, municipal or their governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign which
could materially adversely affect the Company. The Company is not subject to any continuing order, writ, injunction or decree of
any court or agency against it which would have a material adverse effect on the Company.

 

		(g)	Use of Proceeds. The proceeds of this Offering and sale of the Securities, net of payment
of placement expenses, will be used by the Company for working capital and general corporate purposes.

 

		(h)	Consents/Approvals. No consents, filings (other than Federal and state securities filings
relating to the issuance of the Securities pursuant to applicable exemptions from registration, which the Company hereby undertakes
to make in a timely fashion), authorizations or other actions of any governmental authority are required to be obtained or made
by the Company for the Company’s execution, delivery and performance of this Subscription Agreement which have not already
been obtained or made or will be made in a timely manner following the initial Closing.

 

		(i)	No Commissions. The Company has not incurred any obligation for any finder’s, broker’s
or agent’s fees or commissions in connection with the transaction contemplated hereby other than those fees payable to the
Placement Agent pursuant to that certain Engagement Letter dated April 12, 2012.

 

		(j)	Capitalization. A capitalization table illustrating the authorized and outstanding capital
stock of the Company as of the date hereof is attached as Schedule 5(j). All of such outstanding shares have been, or upon issuance
will be, validly issued, fully paid and nonassessable. As of the date hereof, except as disclosed in the Offering Documents and
except for Securities issued in the Offering (i) no shares of the Company’s capital stock are subject to preemptive rights
or any other similar rights or any liens or encumbrances suffered or permitted by the Company, (ii) there are no outstanding debt
securities, (iii) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its subsidiaries,
or contracts, commitments, understandings or arrangements by which the Company or any of its subsidiaries is or may become bound
to issue additional shares of capital stock of the Company or any of its subsidiaries or options, warrants, scrip, rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital
stock of the Company or any of its subsidiaries, (iv) except for its obligations under Section 4 of this Agreement, there are no
agreements or arrangements under which the Company or any of its subsidiaries is obligated to register the sale of any of their
securities under the Act, (v) there are no outstanding securities of the Company or any of its subsidiaries which contain any redemption
or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its
subsidiaries is or may become bound to redeem a security of the Company or any of its subsidiaries, and (vi) there are no securities
or instruments containing anti-dilution or similar provisions that will be triggered by the issuance or exercise of the Securities
as described in this Subscription Agreement.

		(k)	Intellectual Property Rights. The Company owns or possesses adequate rights or licenses
to use all trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights,
inventions, licenses, approvals, governmental authorizations, trade secrets and rights necessary to conduct its businesses as now
conducted. The Company does not have any knowledge of any infringement by the Company of trademark, trade name rights, patents,
patent rights, copyrights, inventions, licenses, service names, service marks, service mark registrations, trade secret or other
similar rights of others, or of any such development of similar or identical trade secrets or technical information by others and
there is no claim, action or proceeding being made or brought against, or to the Company’s knowledge, being threatened against,
the Company regarding trademarks, trade name rights, patents, patent rights, inventions, copyrights, licenses, service names, service
marks, service mark registrations, trade secrets or other infringement.

 

		(l)	Disclosure. No representation or warranty by the Company in this Subscription Agreement,
the Offering Documents, nor in any certificate, Schedule or Exhibit delivered or to be delivered pursuant to this Subscription
Agreement or the Offering Documents: contains or will contain any untrue statement of material fact or omits or will omit to state
a material fact necessary to make the statements contained herein or therein not misleading. To the knowledge of the Company at
the time of the execution of this Subscription Agreement and at each Closing, there is no information concerning the Company which
has not heretofore been disclosed to the Subscribers that would have a Material Adverse Effect.

 

		(m)	Title. With the exception of a $750,000 asset based line
of credit (as further described in the Notes to Consolidated Financial Statements – Note K-Line of Credit, set forth in the
Form 10k annexed as Appendix A), the Company has good and marketable title to all personal property owned by it which is material
to the business of the Company, in each case free and clear of all liens, encumbrances and defects. 

		(n)	Tax Status. The Company has made or filed all United States federal and state income and
all other tax returns, reports and declarations required by any jurisdiction to which it is subject and all such returns, reports
and declarations are true, correct and accurate in all material respects. The Company has paid all taxes and other governmental
assessments and charges, shown or determined to be due on such returns, reports and declarations, except those being contested
in good faith, for which adequate reserves have been established, in accordance with generally accepted accounting principles (“GAAP”).

 

		(o)	Compliance with Laws. The business of the Company has been and is presently being conducted
so as to comply with all applicable material federal, state and local governmental laws, rules, regulations and ordinances.

			

		(p)	Restrictions on Business Activities. There is no judgment, order, decree, writ or injunction
binding upon the Company or any subsidiary or, to the knowledge of the Company or any subsidiary, threatened that has or could
prohibit or impair the conduct of their respective businesses as currently conducted or any business practice of the Company or
any subsidiary, including the acquisition of property, the provision of services, the hiring of employees or the solicitation of
clients, in each case either individually or in the aggregate.

 

		(r)	Issuances. The Company’s common stock will be validly issued, fully paid and nonassessable.

 

		(s)	USA PATRIOT Act and Money Laundering Laws. The operations of the Company are and have been
conducted at all times in compliance with the money laundering requirements of all applicable governmental authorities and any
related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental authority (collectively,
the “Money Laundering Laws”) and the Uniting and Strengthening America by Providing Appropriate Tools Required
to Intercept and Obstruct Terrorism Act of 2001 (Title III of Pub. L. 107-56 (signed into Law October 26, 2001) (the “USA
PATRIOT Act”) and no action, suit or proceeding by or before any court or governmental authority or any arbitrator involving
any of the Company or any of its Subsidiaries with respect to the Money Laundering Laws or USA PATRIOT Act is pending or, to the
best knowledge of the Company, threatened.

 

 

Section
7.                 
Conditions to Obligations of the Undersigned and the Company. The obligations of the
undersigned to purchase and pay for that portion of the Shares specified in the Signature Page hereto and of the Company to issue
the Shares are subject to the satisfaction at or prior to the Closing of the following conditions precedent: (i) the representations
and warranties of the undersigned contained in Section 5 hereof, shall be true and correct on and as of the Closing in all respects
with the same effect as though such representations and warranties had been made on and as of the Closing; and (ii) the undersigned
shall complete, execute and deliver this Agreement and all documents contemplated hereby and provided for herein.

Section
8.                 
Legend. Any certificate for the Shares, if issued, will be imprinted with a legend
in substantially the following form:

“THE SECURITIES REPRESENTED BY
THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER
ANY STATE SECURITIES LAWS, AND MAY NOT BE PLEDGED, SOLD, ASSIGNED, HYPOTHECATED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION
STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR (2) THE ISSUER
OF SUCH SECURITIES RECEIVES AN OPINION OF COUNSEL TO THE ISSUER OR HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE REASONABLY
ACCEPTABLE TO THE ISSUER, THAT SUCH SECURITIES MAY BE PLEDGED, SOLD, ASSIGNED, HYPOTHECATED OR OTHERWISE TRANSFERRED WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS.”

Section
9.                 
Registration Rights. 

9.1             
Subject to the terms of this Section 8, if the Company decides to register any shares of Common Stock, other than on a Form
S-4 or Form S-8 relating to securities to be issued in connection with any acquisition of any entity or equity securities issuable
in connection with a stock option plan or other employee benefit plan, the Company shall: (a) promptly give Investors written
notice thereof (which shall include a list of the jurisdictions in which the Company intends to attempt to qualify such securities
under the applicable blue sky or other state securities laws), and (b) include, subject to Section 9.2 below, in such registration
(and any related qualification under blue sky laws or other compliance), and in any underwriting involved therein, all the Common
Stock specified in a written request delivered to the Company by the Investors within twenty (20) days after delivery of such written
notice from the Company.

9.2             
In connection with any offering involving an underwriting of shares of the Common Stock, the Company shall not be required
under this Section to include any of the Investors’ shares of Common Stock in such underwriting unless the Investor accepts
the terms of the underwriting as agreed upon between the Company and the underwriters selected by it, and then only in such quantity
as the underwriters determine, in their sole discretion, will not jeopardize the success of the offering by the Company.

Section
10. Waiver; Amendment. Neither this Agreement nor any provisions hereof shall be modified, amended, discharged or terminated
except by an instrument in writing, signed by the party against whom any modification, amendment, discharge or termination is sought.
Any term or condition of this Agreement may be waived at any time by the party that is entitled to the benefit thereof, but no
such waiver shall be effective unless set forth in a written instrument duly executed by or on behalf of the party waiving such
term or condition. No waiver by any party of any term or condition of this Agreement, in any one or more instances, shall be deemed
to be or construed as a waiver of the same on any other term or condition of this Agreement on any future occasion. All remedies,
either under this Agreement or by law or otherwise afforded, will be cumulative and not alternative.

Section
11. Assignability. Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason
hereof shall be assignable by either the Company (except to a subsidiary or parent entity of the Company) or the undersigned without
the prior written consent of the other party.

Section
12. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED, AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER DETERMINED,
IN ACCORDANCE WITH AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (AS PERMITTED BY SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW (OR ANY SIMILAR SUCCESSOR PROVISION) WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW RULE THAT WOULD CAUSE THE APPLICATION
OF THE LAWS OF ANY JURISDICTION OTHER THAN THE INTERNAL LAWS OF THE STATE OF NEW YORK TO THE RIGHTS AND DUTIES OF THE PARTIES;
PROVIDED, HOWEVER, THAT ALL LAWS PERTAINING OR RELATING TO CORPORATE GOVERNANCE OF THE COMPANY SHALL BE CONSTRUED IN ACCORDANCE
WITH AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF GEORGIA WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW RULE THAT WOULD CAUSE
THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE INTERNAL LAWS OF THE STATE OF GEORGIA TO THE CORPORATE GOVERNANCE
OF THE COMPANY.

Section
13. Section and Other Headings. The section and other headings contained in this Agreement are for reference purposes only
and shall not affect the meaning or interpretation of this Agreement.

Section
14. Counterparts/Facsimile Execution. This Agreement may be executed in any number of counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which together shall be deemed to be one and the same agreement.
In addition, this Agreement may be executed by facsimile, and each copy shall be deemed an original for all purposes.

Section
15. Notices. All notices and other communications provided for herein shall be in writing and shall be deemed to have been
duly given if delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid:

15.1If to the Company, to
it at the following address:

Liberator, Inc.

2745 Bankers Industrial Drive

Atlanta, GA 30360

Attention: Louis Friedman

President

 

15.2 If to the undersigned,
to him at the address set forth on the signature page hereto; or at such other address as either party shall have specified by
notice in writing to the other.

Section
16. Binding Effect. The provisions of this Agreement shall be binding upon and accrue to the benefit of the parties hereto
and their respective heirs, legal representatives, successors and assigns.

Section
17. Survival. All representations, warranties and covenants contained in this Agreement shall survive (i) the acceptance
of the subscription by the Company, (ii) changes in the transactions, documents and instruments described in the Term Sheet which
are not material or which are to the benefit of the undersigned, and (iii) the death or disability of the undersigned.

Section
18. Notification of Changes. The undersigned hereby covenants and agrees to notify the Company upon the occurrence of any
event prior to the Closing pursuant to this Agreement which would cause any representation, warranty, or covenant of the undersigned
contained in this Agreement to be false or incorrect.

Section
19. Entire Agreement. This Agreement, including Appendix A and B attached hereto, supersede all prior discussions and agreements
among the parties hereto with respect to the subject matter hereof and thereof and contain the sole and entire agreement among
the parties hereto with respect to the subject matter hereof and thereof.

Section
20. Expenses; Attorneys Fees. Except as otherwise expressly set forth herein, each party shall pay all expenses incurred
by it or on its behalf in connection with this Agreement or any transaction contemplated hereby.

Section
21. Further Assurances. Each party hereto shall execute and deliver such additional documents as may be necessary or desirable
to consummate the transactions contemplated by this Agreement.

Section
21. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective
and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law,
such provisions shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement.

[The remainder of this page is intentionally
left blank.]

 

 

     

     

    

Liberator Inc.

Subscription Agreement Signature Page

 

 

Principal Amount of Investment : $____________________

 

 

Number of Shares subscribed : ____________________

(i.e. Principal Amount of investment
divided by $.10 per share)

 

 

__________________________________________________________________

Subscriber Name (print or type name)Subscriber Name (print or
type name)

(only if joint subscription)

 

 

Subscriber’s Address:___________________________________

 

___________________________________

 

 

 

__________________________________________________________________

Signature Signature (if joint subscription)

Title (if applicable):_________________

 

 

Subscriber’s Social Security Number or Tax ID# : ____________________________

 

 

Registration for the investment (how I want the investment titled):

 

 

____________________________________________________ 

 

 

 

 

If Joint Ownership, check one (all parties must sign above):

 

( )Joint Tenants with( )Tenants in Common ( ) Community
Property

Right of Survivorship

 

If Fiduciary or Corporation, check one:

 

( )Trust( ) Estate( )Power of Attorney ( ) Corporation

 

     

     

    

 

 

The Company has accepted this subscription this
  day of  , 2012.

 

 

LIBERATOR, INC.

 

 

By: _____________________________

Louis Friedman, CEO

 

 

 

 

Wire Instructions: INSTRUCTIONS FOR WIRE TRANSFER 

 

To: JP Morgan Chase

270 Park Avenue, 41st Floor

New York, NY 10005

 

Account Name:CST&T AAF Liberator

 

Acct. No.:530-156725

 

ABA No.: 021000021

 

Swift Code: CHASUS33Exhibit 10.3

 

 

 

April 12, 2012

 

Liberator, Inc.

Attn: Louis Friedman, CEO

2745 Bankers Industrial Drive

Atlanta, GA 30360

 

Re: Engagement Letter

 

Dear Sirs:

 

We are pleased that Liberator,
Inc. (the “Company”), has decided to retain Brookville Capital Partners LLC (“Brookville Capital”)
to provide general financial advisory and investment banking services as set forth herein. This letter agreement (the “Agreement”)
will confirm Brookville Capital’s acceptance of such retention and set forth the terms of our engagement. For purposes of
this Agreement, the term “Company” shall include all of Liberator, Inc. and its subsidiaries, successors and assigns
and any other entity that survives following any transaction in which Liberator, Inc. merges or combines with another entity.

 

1.Retention.
The Company hereby retains Brookville Capital as financial advisor and investment banker to provide investment banking services
to the Company, including, in connection with a potential equity financing for the Company of up to $285,000 (the “Financing”).
It is contemplated that the Financing shall be on terms similar to those set forth on Exhibit C attached hereto or such
other terms as agreed to by the Company and Brookville Capital. Brookville Capital accepts such retention on a “best efforts”
basis and on the other terms and conditions set forth in this agreement.

 

In such capacity, Brookville
Capital shall:

 

(i) familiarize itself,
to the extent appropriate and feasible, with the business, operations, properties, financial condition, management and prospects
of the Company;

 

(ii) advise the Company
on matters relating to the structure of its financial instruments and recommend financing structures;

 

(iii) provide such other
financial advisory and investment banking services upon which the parties may mutually agree.

 

2.Information.
In connection with Brookville Capital’s activities hereunder, the Company will cooperate with Brookville Capital and furnish
Brookville Capital upon request with all information regarding the business, operations, properties, financial condition, management
and prospects of the Company (all such information so furnished being the “Information”) and will provide Brookville
Capital with reasonable access to the officers, directors, employees, independent accountants and legal counsel of the Company.
In connection with capital raising efforts, the Company will also provide Brookville Capital with a Term Sheet (such Term Sheet
in the form authorized by the Company, including any exhibits or supplements thereto, being the “Offering Materials”).
The Company represents and warrants to Brookville Capital that all Information and Offering Materials made available to Brookville
Capital hereunder will be complete and correct in all material respects and will not contain any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements therein not misleading in light of the circumstances
under which such statements are or will be made. The Company further represents and warrants that any projections and other forward-looking
information provided by it to Brookville Capital will have been prepared in good faith and will be based upon assumptions which,
in light of the circumstances under which they are made, are reasonable. The Company recognizes and confirms that Brookville Capital:
(i) will use and rely primarily on the Information and the Offering Materials and on information available from generally recognized
public sources in performing the services contemplated by this Agreement without having independently verified the same; (ii)
does not assume responsibility for the accuracy or completeness of the Information and Offering Materials and such other information;
(iii) will not make an appraisal of any assets of the Company; and (iv) retains the right to continue to perform due diligence
during the course of the engagement. In addition, Brookville Capital is authorized as the Company’s placement agent in connection
with capital raising efforts to transmit to any prospective investor a copy or copies of the Offering Materials, forms of purchase
agreements and any other legal documentation supplied to Brookville Capital for transmission to any prospective investor by or
on behalf of the Company or by any of the officers, representatives or agents of the Companies, in connection with the performance
of Brookville Capital’s services hereunder or any transaction contemplated hereby; provided, however, that prior to the
delivery of the Offering Materials such prospective investor executes a non-disclosure agreement with respect to the Offering
Materials and the Information contained therein in a form acceptable to the Company. Brookville Capital may rely on a signed ‘blanket’
Non-Disclosure Agreement covering numerous prospective investments including those contemplated hereunder. Any advice rendered
by Brookville Capital pursuant to this Agreement may not be disclosed publicly without Brookville Capital’s prior written
consent. Brookville Capital hereby acknowledges that certain of the Information received by Brookville Capital may be confidential
and/or proprietary, including Information with respect to the technologies, products, business plans, marketing, and other Information
of the Company which must be maintained by Brookville Capital as confidential unless; (i) disclosure is required by law or requested
by any government, regulatory or self-regulatory agency or body; (ii) any Information is or becomes generally available to the
public; or (iii) any Information was or becomes available to Brookville Capital on a non-confidential basis from a source other
than the Company or any of its representatives. Brookville Capital agrees that, except as set forth herein, it will not disclose
such confidential and/or proprietary Information to any other persons or use such confidential and/or proprietary Information
to the detriment of the Company.

 

3.Compensation.
As consideration for Brookville Capital’s services pursuant to this Agreement, Brookville Capital shall be entitled to receive,
and the Company agrees to pay Brookville Capital the following compensation:

 

(a)The
Company agrees to pay Brookville Capital a cash fee equal to $25,000.00 in the event the entire $285,000 is raised. Said cash fee
shall be paid directly out of the closing; howeverthe closing shall not occur until such time as a minimum of $285,000 is raised
inasmuch as the offering is being conducted on an ‘all-or-none’ basis.

 

(b)The Company agrees
to pay Brookville Capital or its designees an equity fee consisting of 650,000 common shares of the Company in the event the entire
$285,000 is raised.

 

 

4.Certain
Placement Procedures. The Company and Brookville Capital each represents to the other that it has not taken, and the
Company and Brookville Capital each agrees with the other that it will not take, any action, directly or indirectly, so as to
cause the Financing to fail to be entitled to rely upon the exemption from registration afforded by Section 4(2) of the Securities
Act of 1933, as amended (the “Act”). In effecting the Financing, the Company and Brookville Capital each agrees
to comply in all material respects with applicable provisions of the Act and any regulations thereunder and any applicable state
laws and requirements. The Company agrees that any representations and warranties made by it to any investor in the Financing
shall be deemed incorporated herein in their entirety and also to be made to Brookville Capital for its benefit. The Company agrees
that it shall cause an opinion of its counsel to be addressed and delivered to Brookville Capital and any investors in the Financing.
Brookville Capital agrees, represents and warrants that it will not communicate to or deliver to any investor or prospective investor
in the Financing any materials or other Information other than what is contained in the Offering Materials, nor will Brookville
Capital make any verbal or written representation, description or prediction regarding the Company or its business or industry
other than as set forth in the Offering Materials.

5.Expenses.
In addition to the fees referenced in Section 3 hereof, the Company agrees to pay attorneys’ fees incurred by Brookville
Capital in an amount not to exceed $10,000. The Company agrees that the expense shall be paid directly to Brookville Capital’s
attorneys, McLaughlin & Stern LLP, out of the proceeds of the closing assuming same occurs; however the Company’s obligation
for same is absolute, and in no way conditioned upon the occurrence of such closing. The Company further agrees to pay the
first $1,250 in escrow banking fees, with any such fees in excess thereof to be paid by Brookville Capital.

 

6.Indemnification.
The Company agrees to indemnify Brookville Capital in accordance with the indemnification and other provisions attached to this
Agreement attached as Exhibit A, which provisions are incorporated herein by reference. Brookville Capital agrees to indemnify
the Company in accordance with the indemnification and other provisions to this Agreement attached as Exhibit B, which provisions
are incorporated herein by reference. Exhibit A and Exhibit B are referred to herein as the “Indemnification Provisions”).

 

7.Future Rights.

 

(a)As additional
consideration for its services hereunder and as an inducement to cause Brookville Capital to enter into this Agreement, if at any
time before one year from the date hereof, the Company proposes to effect a public or private offering of its securities,
a financing or any other transaction or to engage an investment banking firm to provide such services to the Company (other than
during the term of this Agreement the services to be provided by Brookville Capital hereunder), the Company shall offer to retain
Brookville Capital as manager of such offering, or as its exclusive advisor, agent and/or investment banker in connection with
such financing or other matter, upon such terms as the parties may mutually agree, such terms to be set forth in a separate engagement
letter or other agreement between the parties. Such offer shall be made in writing in order to be effective. The Company shall
not offer to retain any other investment banking firm in connection with any such offering, financing or other matter on terms
more favorable than those discussed with Brookville Capital without offering to retain Brookville Capital on such more favorable
terms. Brookville Capital shall notify the Company within ten (10) days of its receipt of the written offer contemplated above
as to whether or not it agrees to accept such retention. If Brookville Capital should decline such retention, the Company shall
have no further obligations to Brookville Capital, except as specifically provided for herein. If such right is exercised
by Brookville Capital, the terms of any such engagement of Brookville Capital will be separately agreed upon between the Company
and Brookville Capital.

 

(b)If,
within two years after the Termination Date (as defined below), any of the Company completes any financing of equity or debt or
other capital raising activity of such Company with any of the potential investors who were first introduced to the Company in
connection with the financing contemplated hereby by Brookville Capital, the Company will pay to Brookville Capital upon the closing
of such financing a prorated amount of the compensation set forth in Section 3 as a “Source Fee”.

 

 

8.Other Activities.
The Company acknowledges that Brookville Capital has been, and may in the future be, engaged to provide services as an underwriter,
placement agent, finder, advisor and investment banker to other companies in the industry in which the Company is involved. Subject
to the confidentiality provisions of Brookville Capital contained in Section 2 hereof, the Company acknowledges and agrees that
nothing contained in this Agreement shall limit or restrict the right of Brookville Capital or of any member, manager, officer,
employee, agent or representative of Brookville Capital, to be a member, manager, partner, officer, director, employee, agent or
representative of, investor in, or to engage in, any other business, whether or not of a similar nature to the Company’s
business, nor to limit or restrict the right of Brookville Capital to render services of any kind to any other corporation, firm,
individual or association. Brookville Capital may, but shall not be required to, present opportunities to the Company.

 

9.Termination; Survival
of Provisions.

 

This
Agreement shall terminate on June 30, 2012 unless the contemplated offering commences prior to said date, in which case
this Agreement shall terminate upon the date upon which the contemplated offering is terminated (included extensions of the offering
period), which shall be mutually agreed upon and specified in the Transaction Documents. Upon non-renewal or termination
of this Agreement, Brookville Capital shall provide the Company with a written list of parties with whom it has had discussions
in connection with any proposed transaction and/or financing. Notwithstanding any such non-renewal or termination, Brookville Capital
shall be entitled to the compensation provided under Section 3 hereof with respect to any transaction or financing which shall
be consummated within two (2) years following such non-renewal or termination with any party named on such list. In
the event of such termination, the Company shall (i) pay and deliver to Brookville Capital: (A) all compensation earned through
the date of such termination (“Termination Date”) pursuant to any provision of Section 3 hereof, and (B) all
compensation which may be earned by Brookville Capital after the Termination Date pursuant to Section 3 hereof, and (ii) reimburse
Brookville Capital for all expenses incurred by Brookville Capital in connection with its services hereunder pursuant to Section
5 hereof. All such fees and reimbursements due to Brookville Capital pursuant to the immediately preceding sentence shall be paid
to Brookville Capital on or before the Termination Date (in the event such fees and reimbursements are earned or owed as of the
Termination Date) or upon the closing of a Financing or any applicable portion thereof (in the event such fees are due pursuant
to the terms of Section 3 hereof). Notwithstanding anything expressed or implied herein to the contrary, the terms and provisions
of Sections 2, 3, 5, 6 (including, but not limited to, the Indemnification Provisions attached to this Agreement and incorporated
herein by reference), 7, 8, 11, 13, and 15, shall survive the termination of this Agreement. 

10.Notices.
All notices provided hereunder shall be given in writing and either delivered personally or by overnight courier service or sent
by certified mail, return receipt requested, if to Brookville Capital, to Brookville Capital Partners LLC, 384 RXR Plaza, Uniondale,
NY 11556 Attention: Anthony Lodati, and if to the Company, to the address set forth on the first page of this Agreement, Attention:
Louis Friedman, President. Any notice delivered personally shall be deemed given upon receipt; any notice given by express courier
shall be deemed given on the fifth business day after delivery to the express courier; and any notice given by certified mail
shall be deemed given upon the 10th business day after certification thereof.

 

11.Governing Law;
Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by and construed in accordance with the laws of the State
of New York applicable to agreements made and to be fully performed therein, without regard to conflicts of law principles. The
Company irrevocably submits to the exclusive jurisdiction of any court of the State of New York or the United States District Court
for the Southern District of the State of New York for the purpose of any suit, action or other proceeding arising out of this
Agreement, or any of the agreements or transactions contemplated hereby, which is brought by or against the Company, and agrees
that service of process in connection with any such suit, action or proceeding may be made upon the Company in accordance with
Section 10 hereof. The parties hereby expressly waive all rights to trial by jury in any suit, action or proceeding arising under
this Agreement.

 

12.Amendments.
This Agreement may not be modified or amended except in a writing duly executed by the parties hereto.

 

13.Independent
Contractor; Nondisclosure of Confidential Information. Brookville Capital has been retained under this agreement as an independent
contractor with duties owed solely to the Company and nothing in this Agreement or the nature of the Brookville Capital’s
services shall be deemed to create a fiduciary or agency relationship between the Company and Brookville Capital and shall not
be deemed to be, an agent or fiduciary of the stockholders or creditors of the Company or any other person by virtue of this Agreement
or the retention of Brookville Capital hereunder, all of which are hereby expressly waived. The advice, written or oral, rendered
by Brookville Capital pursuant to this Agreement is intended solely for the benefit and use of the Company in considering the
matters to which this agreement relates, and the Company agrees that such advice may not be relied upon by any other person, used
for any other purpose, reproduced, disseminated, or referred to at any time, in any manner or for any purpose, nor shall any public
references to Brookville Capital be made by the Company, without the prior written consent of Brookville Capital, which consent
shall not be unreasonably withheld.

14.
Best Efforts Engagement for Capital Raising. It is expressly understood and acknowledged that Brookville Capital’s
engagement for the Financing does not constitute any commitment, express or implied, on the part of Brookville Capital or of any
of its affiliates to purchase or place the securities of the Company or to provide any type of financing and that the Financing
will be conducted by Brookville Capital on a “best efforts” basis.

15.Press
Announcements. Each of the Companies agrees that Brookville Capital shall, upon a successful transaction, have the right to
place advertisements in financial and other newspapers and journals at its own expense describing its services to the Company
hereunder, provided that Brookville Capital shall submit a copy of any such advertisement to the Company for its approval, such
approval not to be unreasonably withheld.

16.Headings.
The section headings in this Agreement have been inserted as a matter of reference and are not part of this Agreement.

 

17.Successors and
Assigns. The benefits of this Agreement shall inure to the parties hereto, their respective successors and assigns and to the
indemnified parties hereunder and their respective successors and assigns, and the obligations and liabilities assumed in this
Agreement shall be binding upon the parties hereto and their respective successors and assigns. Notwithstanding anything contained
herein to the contrary, neither Brookville Capital nor the Company shall assign any of its obligations hereunder without the prior
written consent of the other party.

 

18.No Third Party
Beneficiaries. This Agreement does not create, and shall not be construed as creating, any rights enforceable by any person
or entity not a party hereto, except those entitled to the benefits of the Indemnification Provisions.

 

19.No Commitment.
It is expressly understood and acknowledged that Brookville Capital’s engagement with respect to capital raising activities
does not constitute any commitment, express or implied, on the part of Brookville Capital or of any of its affiliates to purchase
or place the Company’s securities or to provide any type of financing.

 

20.Waiver. Any
waiver or any breach of any of the terms or conditions of this Agreement shall not operate as a waiver of any other breach of such
terms or conditions or of any other term or condition, nor shall any failure to insist upon strict performance or to enforce any
provision hereof on any one occasion operate as a waiver of such provision or of any other provision hereof or a waiver of the
right to insist upon strict performance or to enforce such provision or any other provision on any subsequent occasion. Any waiver
must be in writing.

 

21.Counterparts.
This Agreement may be executed in any number of counterparts and by facsimile transmission, each of which shall be deemed to be
an original instrument, but all of which taken together shall constitute one and the same agreement. Facsimile signatures shall
be deemed to be original signatures for all purposes.

 

 

 

If the foregoing correctly
sets forth our agreement, please sign the enclosed copy of this Agreement in the space provided below and return it to us.

 

 

Very truly yours,

 

BROOKVILLE CAPITAL PARTNERS LLC

 

 

 

By: /s/ Anthony Lodati

Anthony Lodati,
President

 

 

 

Agreed to and accepted this 12th day of
April, 2012

 

LIBERATOR, INC.

 

 

 

By: /s/ Louis S. Friedman

Louis Friedman, President

 

     

     

    

Exhibit A

 

COMPANY INDEMNIFICATION PROVISIONS

 

Capitalized terms used
in this Exhibit shall have the meanings ascribed to such terms in the Agreement to which this Exhibit is attached.

 

The Company, jointly and
severally, agrees to indemnify and hold harmless Brookville Capital (the "Placement Agent") and each of the other Indemnified
Parties (as hereinafter defined) from and against any and all losses, claims, damages, obligations, penalties, judgments, awards,
liabilities, costs, expenses and disbursements, and any and all actions, suits, proceedings and investigations in respect thereof
and any reasonable legal and other costs, expenses and disbursements in giving testimony or furnishing documents in response to
a subpoena or otherwise (including, without limitation, the costs, expenses and disbursements, as and when incurred, of investigating,
preparing, pursing or defending any such action, suit, proceeding or investigation (whether or not in connection with litigation
in which any Indemnified Party is a party)) (collectively, “Losses”), caused by, relating to, based upon, arising out
of, or in connection with, Placement Agent’s acting for the Company, including, without limitation, any breach by the Company
of any representation, warranty, covenant or agreement contained in the Agreement (or in any instrument, document or agreement
relating thereto), or the enforcement by Placement Agent of its rights under the Agreement or these indemnification provisions,
except to the extent that any such Losses resulted from the negligence or willful misconduct of any of the Indemnified Parties.

 

 

These Indemnification Provisions
shall extend to the following persons (collectively, the “Indemnified Parties”): Placement Agent, its present and former
affiliated entities, managers, members, officers, employees, and controlling persons (within the meaning of the federal securities
laws),. These indemnification provisions shall be in addition to any liability which the Company may otherwise have to any Indemnified
Party.

 

If any action, suit, proceeding
or investigation is commenced, as to which an Indemnified Party proposes to demand indemnification, it shall notify the Company
with reasonable promptness. An Indemnified Party shall have the right to retain counsel subject to the prior written consent of
the Company which may not be unreasonably withheld, and the reasonable fees, expenses and disbursements of such counsel shall be
borne by the Company. Any such counsel shall, to the extent consistent with its professional responsibilities, cooperate with the
Company and any counsel designated by the Company. The Company shall be liable for any settlement of any claim against any Indemnified
Party made with the written consent of the Company. The Company shall not, without the prior written consent of Placement Agent
which may not be unreasonably withheld, settle or compromise any claim, or permit a default or consent to the entry of any judgment
in respect thereof, unless such settlement, compromise or consent (i) includes, as an unconditional term thereof, the giving by
the claimant to all of the Indemnified Parties of an unconditional release from all liability in respect of such claim, and (ii)
does not contain any factual or legal admission by or with respect to an Indemnified Party or an adverse statement with respect
to the character, professionalism, expertise or reputation of any Indemnified Party or any action or inaction of any Indemnified
Party.

 

 

Neither termination nor
completion of the Agreement shall affect these Indemnification Provisions which shall remain operative and in full force and effect.
The Indemnification Provisions shall be binding upon the Company and its successors and assigns and shall inure to the benefit
of the Indemnified Parties and their respective successors, assigns, heirs and personal representatives.

     

     

    

Exhibit B

 

BROOKVILLE CAPITAL INDEMNIFICATION PROVISIONS

 

Capitalized terms used
in this Exhibit shall have the meanings ascribed to such terms in the Agreement to which this Exhibit is attached.

 

Brookville Capital (the
"Placement Agent"), jointly and severally, agrees to indemnify and hold harmless the Company and each of the other Indemnified
Parties (as hereinafter defined) from and against any and all losses, claims, damages, obligations, penalties, judgments, awards,
liabilities, costs, expenses and disbursements, and any and all actions, suits, proceedings and investigations in respect thereof
and any reasonable legal and other costs, expenses and disbursements in giving testimony or furnishing documents in response to
a subpoena or otherwise (including, without limitation, the costs, expenses and disbursements, as and when incurred, of investigating,
preparing, pursing or defending any such action, suit, proceeding or investigation (whether or not in connection with litigation
in which any Indemnified Party is a party)) (collectively, “Losses”), caused by, relating to, based upon, arising out
of, or in connection with, Placement Agent’s acting for the Company, including, without limitation, any breach by the Placement
Agent of any representation, warranty, covenant or agreement contained in the Agreement (or in any instrument, document or agreement
relating thereto), or the enforcement by the Company of its rights under the Agreement or these indemnification provisions, except
to the extent that any such Losses resulted from the negligence or willful misconduct of any of the Indemnified Parties.

 

These Indemnification Provisions
shall extend to the following persons (collectively, the “Indemnified Parties”): the Company, its present and former
affiliated entities, shareholders, directors, officers, employees, and controlling persons (within the meaning of the federal securities
laws) and the officers, shareholders, directors, officers, employees, and controlling persons of any of them. These indemnification
provisions shall be in addition to any liability which the Placement Agent may otherwise have to any Indemnified Party.

 

If any action, suit, proceeding
or investigation is commenced, as to which an Indemnified Party proposes to demand indemnification, it shall notify the Placement
Agent with reasonable promptness. An Indemnified Party shall have the right to retain counsel subject to the prior written consent
of the Placement Agent which may not be unreasonably withheld, and the reasonable fees, expenses and disbursements of such counsel
shall be borne by Placement Agent. Any such counsel shall, to the extent consistent with its professional responsibilities, cooperate
with Placement Agent and any counsel designated by Placement Agent. Placement Agent shall be liable for any settlement of any claim
against any Indemnified Party made with the written consent of Placement Agent. Placement Agent shall not, without the prior written
consent of the Company which may not be unreasonably withheld, settle or compromise any claim, or permit a default or consent to
the entry of any judgment in respect thereof, unless such settlement, compromise or consent (i) includes, as an unconditional term
thereof, the giving by the claimant to all of the Indemnified Parties of an unconditional release from all liability in respect
of such claim, and (ii) does not contain any factual or legal admission by or with respect to an Indemnified Party or an adverse
statement with respect to the character, professionalism, expertise or reputation of any Indemnified Party or any action or inaction
of any Indemnified Party.

 

 

Neither termination nor
completion of the Agreement shall affect these Indemnification Provisions which shall remain operative and in full force and effect.
The Indemnification Provisions shall be binding upon Placement Agent and its successors and assigns and shall inure to the benefit
of the Indemnified Parties and their respective successors, assigns, heirs and personal representatives.

     

     

    

Exhibit C

Term Sheet

 

 

 

Issuer:Liberator,
Inc. (the “Company”)

 

Issue:Shares
of the Company’s common stock (“Shares”) at a price of $0.10 per share

 

		Amount:	The offering shall be conducted on an ‘all-or-none’ basis; i.e. there shall
be no closing until such time as the entire $285,000 is raised.

 

Investors:The Shares will be offered
to accredited investors only

 

Escrow:Continental Stock Transfer
& Trust Company

 

			

Registration
Rights:Piggy-back; In the event the Company registers any stock with the S.E.C., it shall include the shares of common
stock issued to Investors, and the equity fee issued to Brookville Capital and/or its designees, as part of the Registration Statement.

 

 

Use of Proceeds:The
proceeds shall be used for general working capital purposes.

 

 

			

 

Neither this
Term Sheet, Engagement Letter, nor any discussion or negotiation of the proposed transaction constitutes an agreement or obligation
on the part of any person to purchase securities of the Company or enter into any agreement to purchase securities of the Company.
Any such agreement or obligation shall arise solely upon execution and delivery to the Company by a purchaser of definitive documents
acceptable to the Company and such purchaser.

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