Date: September 27, 2009

To: Xedia Distributors

Subject: The Settlement of the TRO with Xedia

I am sending this communication to insure that all Xedia Distributors have a clear understanding of the settlement Xedia has negotiated with the State of Texas and what affect, if any, the settlement will have on you and your Xedia business.

On September 1, 2009 the Attorney General of the State of Texas filed an Agreed Final Judgment and Permanent Injunction for Xium, Inc., Xedia, Inc. and Greg Dockery. The action of the Texas Attorney General means that the state’s case against Xedia, Xium and me has been settled and the decision is final.

The agreed Final Judgment and Permanent Injunction is specifically applicable to Xedia’s corporate business operation in the State of Texas and Xedia intends to be 100% compliant. Furthermore, all distributors who live and do business in the State of Texas are also required to comply with the stipulations in the settlement. The business conduct of all Xedia distributors who live and conduct business outside the State of Texas is not subject to the terms of the agreement. However, for the record let me be very clear in stating that it is the company’s expectation that every Xedia distributor will conduct business at all times in an legal, ethical and honest manner.

During the more than two years since we launched Xedia we have had a clean business record. With the exception of the filing of the Texas TRO, which primarily stemmed from Xium’s relationship with Forum Technologies, there have been no other formal complaints or legal actions against Xedia. That is a record we are proud of and intend to maintain.

For additional information about the settlement including a summary document, an audio overview and the entire agreement go to www.myxedia.com and select “Legal Notice” link at the bottom of the page.

All the best,

Greg

For a recorded Settlement Audio Overview from the company click here
Texas Compromise Agreement Summary click here
The Final Compromise Settlement Agreement click here.