On March 22, 2013 Augme Technologies, Inc. ("Augme") entered into a settlement with Velti Limited and Velti USA, Inc. (collectively, "Velti"), pursuant to which Augme and Velti have settled the two pending lawsuits as between each other, namely (i) Civil Action No.1:12-cv-00294-LPS in the District of Delaware, and (ii) Civil Action No. C-13-0258 LB in the Northern District of California (collectively, the "Lawsuits").

Pursuant to the settlement, (a) Augme has granted Velti a paid-up license in all patents owned by Augme with a priority date on or before March 22, 2013 for the life of those patents, (b) Velti has granted Augme a paid-up license in all patents owned by Velti with a priority date on or before March 22, 2013 for the life of those patents, (c) Augme and Velti have covenanted not to sue each other on such patents, (d) Augme and Velti have dismissed the Lawsuits as to each other with prejudice with each side to bear its own costs, (e) Augme and Velti have released each other as to the subject matter of the Lawsuits with neither party making any admission of liability, and (f) Velti will pay Augme a lump sum payment of $200,000 no later than 10 business days following the dismissal of the Lawsuits.