On January 8, 2014, Accelerize New Media, Inc., or the Company, entered into an office lease agreement, or the Lease, with Ferrado Bayview, LLC, or the Lessor, to lease approximately 8,754 usable square feet of office space at 20411 SW Birch Street, Newport Beach, California 92660, or the Premises, to which the Company intends to relocate its principal executive offices which currently occupy approximately 3,900 usable square feet of office space at 2244 West Coast Highway, Newport Beach, California 92663. The Lease is for a term of four years, commencing on or about March 1, 2014 and provides for an option by the Company to extend the term for an additional 36 month period following the initial term. The initial base rent for the Lease is $22,247.44 per month, increasing to $25,366.24 per month by the end of the initial term and adjustable in accordance with the terms of the Lease.

The Company will also pay a 10.23% share of the Premises' operating expense increases over the term of the Lease. The Lessor will provide up to $150,000 for tenant improvements to the office space which the Company currently estimates to equal approximately $225,000, the balance of which will be paid by the Company. In connection with the Lease, the Company's current lease, or the Existing Lease, with 2244 West Coast Highway LLC, or the Existing Lessor, will be cancelled by its terms on or about February 28, 2014 by the payment by the Company of a cancellation fee, equal to the unamortized tenant improvement costs and leasing commissions under the Existing Lease, of $15,756.91 to the Existing Lessor.