<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>WASHINGTON, D.C. 20549</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 18pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Pursuant to Section&nbsp;13 or 15(d)
of the</B> <B>Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Date of report (Date of earliest event
reported): March 7, 2012 (March 1, 2012)</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U>Webxu, Inc.</U></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Exact name of registrant as specified
in Charter)</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30%; line-height: 115%; font-weight: bold; text-align: center">Delaware</TD>
    <TD STYLE="width: 4%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 33%; line-height: 115%; font-weight: bold; text-align: center">000-53095</TD>
    <TD STYLE="width: 7%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 26%; line-height: 115%; font-weight: bold; text-align: center">26-0460511</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; font-weight: bold; text-align: center">(State or other jurisdiction of incorporation)</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-weight: bold; text-align: center">(Commission File No.)</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-weight: bold; text-align: center">(IRS Employer Identification No.)</TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>11999 San Vicente Blvd., Suite 400</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U>Los Angeles, CA 90049</U></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Address of Principal Executive Offices)</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U>(310) 807-1765</U></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Registrant&rsquo;s telephone number,
including area code)</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Check the appropriate box below if the Form 8-K filing is
intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>Item 1.01&nbsp;&nbsp;Entry into a Material Definitive
Agreement.</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On March 1, 2012, Webxu, Inc. and its
subsidiaries (collectively, the &ldquo;Company&rdquo;) entered into a Loan Agreement with Breakwater Structured Growth Opportunities
Fund L.P. (&ldquo;Breakwater&rdquo;) pursuant to which the Company issued to Breakwater a Senior Secured Promissory Note with principal
in the amount of $1,200,000 for a loan by Breakwater to the Company of $1,000,000.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The note matures on May 13, 2012. Interest
accrues at 12% per annum and increases by an additional 8% upon a default. The principal plus any accrued but unpaid interest must
be repaid according to the schedule set forth in the Loan Agreement. Late payments are assessed 5% of the delinquent installment
payment amount. The Company must pay an additional 5% in liquidated damages upon any late payment.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Company previously paid to
Breakwater a non-refundable deposit of $30,000 for due diligence and other expenses and $15,000 for Breakwater&rsquo;s legal
expenses in connection with this loan transaction. At closing, the Company paid to Breakwater an origination fee of $24,000
and an additional $12,500 towards legal fees.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In connection with this loan transaction,
the Company issued to Breakwater a warrant to purchase up to 1,000,000 shares of its common stock at $1.50 per share. This warrant
contains piggyback registration rights, and expires on March 1, 2017.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Until the Company has repaid the full
balance on the note pursuant to the Loan Agreement, the Company may not:</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Make,
create, incur, assume, or suffer to exist any lien upon or with respect to any of its property other than the permitted liens set
forth in the Loan Agreement;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp;<FONT STYLE="font: 10pt Times New Roman, Times, Serif">Sell,
assign, lease, convey, transfer, or otherwise dispose of any property outside the ordinary course of business without first obtaining
Breakwater&rsquo;s written consent;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merge,
consolidate with or into, or convey, transfer, lease, or otherwise dispose of all or substantially all of its assets to or in favor
of any person without first obtaining Breakwater&rsquo;s written consent;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<!-- Field: Page; Sequence: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change
the ownership structure of its subsidiaries without first obtaining Breakwater&rsquo;s written consent;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
than certain commitments set forth in the Loan Agreement, purchase or acquire any capital stock, equity interest, or any obligations
or other securities of, or any interest in, any person, or make or commit to make any acquisitions, create any new subsidiary,
or direct any revenue, income, prospects, business, or other rights to, or make or commit to make any advance, loan, extension
of credit or capital contribution to, or any other investment in, any person without first obtaining Breakwater&rsquo;s written
consent;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Create,
incur, assume, suffer to exist, or otherwise become or remain liable with respect to any indebtedness other than indebtedness set
forth in the Loan Agreement;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Enter
into any transaction outside the ordinary course of business with any affiliates on terms that are less favorable to the Company
than those that would be obtainable at the time in an arms-length transaction with a non-affiliate;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(viii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Materially
increase the cash compensation for any executive officer, director, or affiliate other than commercially reasonable salaries paid
in the ordinary course to full-time employees who are non-affiliates or directors and compensation approved by Webxu, Inc.&rsquo;s
board of directors prior to the closing date of the loan transaction described in this Item 1.01;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(ix)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Create,
incur, assume, or suffer to exist any contingent obligations;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
than certain permitted payments set forth in the Loan Agreement, declare or make any dividend payment or other distribution of
assets, properties, cash, cash equivalents, rights, obligations, or securities on account of any shares of any class of its capital
stock, or purchase, redeem, or otherwise acquire such shares, except that a subsidiary my make distributions to Webxu, Inc.;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(xi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Engage
in any material line of business substantially different from the existing business of the Company;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(xii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Without
first obtaining Breakwater&rsquo;s written consent, (a) make any material changes to the equity capital structure or amend organization
documents in any respect materially adverse to Breakwater, (b) sell all or substantially all of its assets, (c) sell, transfer,
or assign all or any portion of its ownership interest in any subsidiary, and (d) form, conduct any business through, or transfer
any of its assets to any subsidiary or other entity other than the subsidiaries;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(xiii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Make
any significant change in accounting treatment or reporting practices, except as required by GAAP, or change the fiscal year;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(xiv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change
its name or any location storing the collateral for the loan or establish an additional place of business or new trade name without
giving Breakwater 60 days&rsquo; prior notice. Prior to establishing a new place of business or trade name, the Company must execute
any documents reasonably required by Breakwater to preserve the perfection of Breakwater&rsquo;s security interests in the collateral;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(xv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Permit
the debt coverage ratio to exceed 1.25 at any time. The Company must provide Breakwater with unaudited financial statements and
a calculation of the debt coverage ratio certified by an officer by the 25<SUP>th</SUP> day of each month; and</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<!-- Field: Page; Sequence: 3 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(xvi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Make
or incur during any fiscal year any obligation to make capital expenditures in excess of an aggregate $250,000.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Company granted to Breakwater a security
interest in certain of its assets under a Pledge and General Security Agreement dated March 1, 2012, for which the collateral is
set forth in the agreement. The collateral includes cash funds in certain bank accounts.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>Item 2.03 Creation of a Direct Financial Obligation or
an Obligation under an Off-Balance Sheet Arrangement of a Registrant.</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On March 1, 2012, and also as more fully
described in Item 1.01 above, the Company&nbsp;became obligated on a short-term debt obligation in the amount of $1,200,000 to
Breakwater Structured Growth Opportunities Fund L.P. pursuant to a Loan Agreement and Senior Secured Promissory Note.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The note matures on May 13, 2012, when
the balance of the unpaid principal and accrued interest is due and payable without demand or other notice. Interest accrues at
12% per annum and increases by an additional 8% upon the Company&rsquo;s failure to make a required payment or defaults on any
other obligation owed to Breakwater (a &ldquo;Default Event&rdquo;). The principal plus any accrued but unpaid interest must be
repaid according to the schedule set forth in the Loan Agreement. Late payments are assessed 5% of the delinquent installment
payment amount. The Company must pay an additional 5% in liquidated damages upon any late payment.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Upon a Default Event, Breakwater may
in its sole discretion declare the balance of the unpaid principal and accrued interest immediately due and payable without prior
notice.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Reference is made to the disclosures
set forth in Item 1.01 of this Form 8-K, which disclosures are incorporated herein by reference.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>Item 3.02 Unregistered Sales of Equity Securities.</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On March 1, 2012, and also as more fully
described in Item 1.01 above, we&nbsp;issued to Breakwater Structured Growth Opportunities Fund L.P. a warrant to purchase up to
1,000,000 shares of our common stock at $1.50 per share. The warrant expires on March 1, 2017. Reference is made to the disclosures
set forth in Item 1.01 of this Form 8-K, which disclosures are incorporated herein by reference.&nbsp;&nbsp;The issuance of the
warrant to Breakwater was exempt from registration under the Securities Act pursuant to Section 4(2) of the Securities Act.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Page; Sequence: 4 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>Item 9.01&nbsp;&nbsp;Financial Statements and Exhibits.</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%; line-height: 115%">(d)&nbsp;</TD>
    <TD STYLE="width: 93%; line-height: 115%"><U>Exhibits</U>.</TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 13%; line-height: 115%">Exhibit No.&nbsp;</TD>
    <TD STYLE="width: 80%; line-height: 115%">Exhibit Description</TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; margin-left: 0">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%">&nbsp;</TD>
    <TD STYLE="width: 13%; line-height: 115%">10.1&nbsp;</TD>
    <TD STYLE="width: 80%">
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Loan Agreement between Webxu, Inc., Bonus Interactive Inc.,
        Webxu Media, Inc., Lot6 Media, Inc., and Breakwater Structured Growth Opportunities Fund L.P., dated March 1, 2012</P>
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="line-height: 115%">10.2&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Senior Secured Promissory Note issued by Webxu, Inc., Bonus
        Interactive Inc., Webxu Media, Inc., and Lot6 Media, Inc. to Breakwater Structured Growth Opportunities Fund L.P., dated March
        1, 2012</P>
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="line-height: 115%">10.3&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Warrant to Purchase Common Stock issued by Webxu, Inc. to
        Breakwater Structured Growth Opportunities Fund L.P., dated March 1, 2012</P>
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="line-height: 115%">10.4&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Pledge and General Security Agreement between Webxu, Inc.,
        Bonus Interactive Inc., Webxu Media, Inc., Lot6 Media, Inc., and Breakwater Structured Growth Opportunities Fund L.P., dated March
        1, 2012</P>
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<!-- Field: Page; Sequence: 5 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Pursuant to the requirements of the Securities
Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="line-height: 115%"><B>Webxu, Inc.</B> &nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 51%; line-height: 115%">Date:&nbsp;March 7, 2012</TD>
    <TD STYLE="width: 3%; line-height: 115%">By:</TD>
    <TD NOWRAP STYLE="width: 35%; border-bottom: windowtext 1pt solid; line-height: 115%">/s/&nbsp;Jeffrey Aaronson</TD>
    <TD STYLE="width: 11%; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="line-height: 115%">Jeffrey Aaronson &nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="line-height: 115%">Chief Financial Officer &nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></P>



<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<!-- Field: Page; Sequence: 6; Options: Last -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->
<P STYLE="margin: 0"></P>

</BODY>
</HTML>
[{"type": "8-K", "sequence": "1", "filename": "v304921_8k.htm", "description": "CURRENT REPORT", "secsgml_size_bytes": 29440}]
{"company-data": {"conformed-name": "WebXU, Inc.", "cik": "0001416729", "assigned-sic": "8742", "irs-number": "000000000", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-53095", "film-number": "12674067"}, "business-address": {"street1": "3435 OCEAN PARK BLVD., SUITE 107-282", "city": "SANTA MONICA", "state": "CA", "zip": "90405", "phone": "310-807-1765"}, "mail-address": {"street1": "3435 OCEAN PARK BLVD., SUITE 107-282", "city": "SANTA MONICA", "state": "CA", "zip": "90405"}, "former-company": [{"former-conformed-name": "CST HOLDING CORP.", "date-changed": "20100317"}, {"former-conformed-name": "CST Holding Corp.", "date-changed": "20100125"}, {"former-conformed-name": "WhistlePig Enterprises, Inc.", "date-changed": "20100125"}]}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the
Securities Exchange Act of 1934
Date of report (Date of earliest event
reported): March 7, 2012 (March 1, 2012)
Webxu, Inc.
(Exact name of registrant as specified
in Charter)
Delaware
000-53095
26-0460511
(State or other jurisdiction of incorporation)
(Commission File No.)
(IRS Employer Identification No.)
11999 San Vicente Blvd., Suite 400
Los Angeles, CA 90049
(Address of Principal Executive Offices)
(310) 807-1765
(Registrant's telephone number,
including area code)
Check the appropriate box below if the Form 8-K filing is
intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01  Entry into a Material Definitive
Agreement.
On March 1, 2012, Webxu, Inc. and its
subsidiaries (collectively, the "Company") entered into a Loan Agreement with Breakwater Structured Growth Opportunities
Fund L.P. ("Breakwater") pursuant to which the Company issued to Breakwater a Senior Secured Promissory Note with principal
in the amount of $1,200,000 for a loan by Breakwater to the Company of $1,000,000.
The note matures on May 13, 2012. Interest
accrues at 12% per annum and increases by an additional 8% upon a default. The principal plus any accrued but unpaid interest must
be repaid according to the schedule set forth in the Loan Agreement. Late payments are assessed 5% of the delinquent installment
payment amount. The Company must pay an additional 5% in liquidated damages upon any late payment.
The Company previously paid to
Breakwater a non-refundable deposit of $30,000 for due diligence and other expenses and $15,000 for Breakwater's legal
expenses in connection with this loan transaction. At closing, the Company paid to Breakwater an origination fee of $24,000
and an additional $12,500 towards legal fees.
In connection with this loan transaction,
the Company issued to Breakwater a warrant to purchase up to 1,000,000 shares of its common stock at $1.50 per share. This warrant
contains piggyback registration rights, and expires on March 1, 2017.
Until the Company has repaid the full
balance on the note pursuant to the Loan Agreement, the Company may not:
(i)         Make,
create, incur, assume, or suffer to exist any lien upon or with respect to any of its property other than the permitted liens set
forth in the Loan Agreement;
(ii)
Sell,
assign, lease, convey, transfer, or otherwise dispose of any property outside the ordinary course of business without first obtaining
Breakwater's written consent;
(iii)       Merge,
consolidate with or into, or convey, transfer, lease, or otherwise dispose of all or substantially all of its assets to or in favor
of any person without first obtaining Breakwater's written consent;
(iv)         Change
the ownership structure of its subsidiaries without first obtaining Breakwater's written consent;
(v)          Other
than certain commitments set forth in the Loan Agreement, purchase or acquire any capital stock, equity interest, or any obligations
or other securities of, or any interest in, any person, or make or commit to make any acquisitions, create any new subsidiary,
or direct any revenue, income, prospects, business, or other rights to, or make or commit to make any advance, loan, extension
of credit or capital contribution to, or any other investment in, any person without first obtaining Breakwater's written
consent;
(vi)         Create,
incur, assume, suffer to exist, or otherwise become or remain liable with respect to any indebtedness other than indebtedness set
forth in the Loan Agreement;
(vii)        Enter
into any transaction outside the ordinary course of business with any affiliates on terms that are less favorable to the Company
than those that would be obtainable at the time in an arms-length transaction with a non-affiliate;
(viii)       Materially
increase the cash compensation for any executive officer, director, or affiliate other than commercially reasonable salaries paid
in the ordinary course to full-time employees who are non-affiliates or directors and compensation approved by Webxu, Inc.'s
board of directors prior to the closing date of the loan transaction described in this Item 1.01;
(ix)         Create,
incur, assume, or suffer to exist any contingent obligations;
(x)          Other
than certain permitted payments set forth in the Loan Agreement, declare or make any dividend payment or other distribution of
assets, properties, cash, cash equivalents, rights, obligations, or securities on account of any shares of any class of its capital
stock, or purchase, redeem, or otherwise acquire such shares, except that a subsidiary my make distributions to Webxu, Inc.;
(xi)         Engage
in any material line of business substantially different from the existing business of the Company;
(xii)        Without
first obtaining Breakwater's written consent, (a) make any material changes to the equity capital structure or amend organization
documents in any respect materially adverse to Breakwater, (b) sell all or substantially all of its assets, (c) sell, transfer,
or assign all or any portion of its ownership interest in any subsidiary, and (d) form, conduct any business through, or transfer
any of its assets to any subsidiary or other entity other than the subsidiaries;
(xiii)       Make
any significant change in accounting treatment or reporting practices, except as required by GAAP, or change the fiscal year;
(xiv)       Change
its name or any location storing the collateral for the loan or establish an additional place of business or new trade name without
giving Breakwater 60 days' prior notice. Prior to establishing a new place of business or trade name, the Company must execute
any documents reasonably required by Breakwater to preserve the perfection of Breakwater's security interests in the collateral;
(xv)        Permit
the debt coverage ratio to exceed 1.25 at any time. The Company must provide Breakwater with unaudited financial statements and
a calculation of the debt coverage ratio certified by an officer by the 25
th
day of each month; and
(xvi)      Make
or incur during any fiscal year any obligation to make capital expenditures in excess of an aggregate $250,000.
The Company granted to Breakwater a security
interest in certain of its assets under a Pledge and General Security Agreement dated March 1, 2012, for which the collateral is
set forth in the agreement. The collateral includes cash funds in certain bank accounts.
Item 2.03 Creation of a Direct Financial Obligation or
an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On March 1, 2012, and also as more fully
described in Item 1.01 above, the Company became obligated on a short-term debt obligation in the amount of $1,200,000 to
Breakwater Structured Growth Opportunities Fund L.P. pursuant to a Loan Agreement and Senior Secured Promissory Note.
The note matures on May 13, 2012, when
the balance of the unpaid principal and accrued interest is due and payable without demand or other notice. Interest accrues at
12% per annum and increases by an additional 8% upon the Company's failure to make a required payment or defaults on any
other obligation owed to Breakwater (a "Default Event"). The principal plus any accrued but unpaid interest must be
repaid according to the schedule set forth in the Loan Agreement. Late payments are assessed 5% of the delinquent installment
payment amount. The Company must pay an additional 5% in liquidated damages upon any late payment.
Upon a Default Event, Breakwater may
in its sole discretion declare the balance of the unpaid principal and accrued interest immediately due and payable without prior
notice.
Reference is made to the disclosures
set forth in Item 1.01 of this Form 8-K, which disclosures are incorporated herein by reference.
Item 3.02 Unregistered Sales of Equity Securities.
On March 1, 2012, and also as more fully
described in Item 1.01 above, we issued to Breakwater Structured Growth Opportunities Fund L.P. a warrant to purchase up to
1,000,000 shares of our common stock at $1.50 per share. The warrant expires on March 1, 2017. Reference is made to the disclosures
set forth in Item 1.01 of this Form 8-K, which disclosures are incorporated herein by reference.  The issuance of the
warrant to Breakwater was exempt from registration under the Securities Act pursuant to Section 4(2) of the Securities Act.
Item 9.01  Financial Statements and Exhibits.
(d)
Exhibits
.
Exhibit No.
Exhibit Description
10.1
Loan Agreement between Webxu, Inc., Bonus Interactive Inc.,
        Webxu Media, Inc., Lot6 Media, Inc., and Breakwater Structured Growth Opportunities Fund L.P., dated March 1, 2012
10.2
Senior Secured Promissory Note issued by Webxu, Inc., Bonus
        Interactive Inc., Webxu Media, Inc., and Lot6 Media, Inc. to Breakwater Structured Growth Opportunities Fund L.P., dated March
        1, 2012
10.3
Warrant to Purchase Common Stock issued by Webxu, Inc. to
        Breakwater Structured Growth Opportunities Fund L.P., dated March 1, 2012
10.4
Pledge and General Security Agreement between Webxu, Inc.,
        Bonus Interactive Inc., Webxu Media, Inc., Lot6 Media, Inc., and Breakwater Structured Growth Opportunities Fund L.P., dated March
        1, 2012
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Webxu, Inc.
Date: March 7, 2012
By:
/s/ Jeffrey Aaronson
Jeffrey Aaronson
Chief Financial Officer