IZEA Inc. (IZEA)

[Apophis]

Entry into a Material Definitive Agreement.

On August 17, 2015, IZEA, Inc. ("IZEA") entered into a settlement agreement on its outstanding patent infringement dispute with Blue Calypso with ending all outstanding litigation between the two companies. Under the agreement, IZEA has agreed to pay Blue Calypso a royalty fee of 4.125% of revenue from IZEA's legacy platforms: SocialSpark, Sponsored Tweets, and WeReward. All of those legacy platforms were discontinued by the end of 2014. Blue Calypso has dismissed with prejudice all pending litigation against IZEA and has granted IZEA a worldwide covenant not to sue covering the IZEAx and Ebyline platforms or any reasonable iteration thereof. IZEA has developed the IZEAx and Ebyline platforms in a manner such that it believes they do not infringe Blue Calypso's current patents.




The total settlement amount is $390,506. IZEA will pay $200,000 to Blue Calypso no later than ten (10) days after the settlement is executed. The balance of $190,506 shall be paid in equal quarterly installments of $47,626.50 over 24 months. The first quarterly installment payment shall be made three months after the date the $200,000 initial installment is made.




The Company issued a press release on August 18, 2015, a full copy of which is included as Exhibit 99.1.