Document:

SHARE EXCHANGE AGREEMENT

 

AGREEMENT made this 16th day of July,
2014 among Bitzio, Inc. d/b/a Democratique, a Nevada corporation with offices at 9625 Cozycroft Avenue, Suite A Chatsworth, CA
91311(“Democratique”), Hubert J. Blanchette, Paul John Koros, Stella Koros and Michael John Koros (collectively,
the “LL Shareholders”), and Gordon McDougall and Laura Fewtrell (collectively, the (“LL Creditors”).

 

WHEREAS, the LL Shareholders owns all
of the issued and outstanding capital stock of Lexi-Luu Designs, Inc., a Nevada corporation, which is engaged in the business of
designing, manufacturing, and marketing apparel (the “Lexi-Luu Designs Business”); and

 

WHEREAS, Democratique wishes to acquire
Lexi-Luu Designs, Inc., the LL Shareholders are willing to sell Lexi-Luu Designs, and the LL Creditors are willing to participate
in the transaction, all on the terms and conditions set forth herein.

 

NOW, THEREFORE, it is agreed:

 

1. Share Exchange.

 

a. Lexi-Luu Shares. At the Closing
(defined below), the LL Shareholders shall deliver to Democratique certificates for a total of 10 million shares of common stock
issued by Lexi-Luu Designs, Inc. (the “Lexi-Luu Designs Shares”). The certificates shall be duly endorsed for
transfer of the Lexi-Luu Designs Shares to Democratique. Each of the LL Shareholders represents and warrants that:

 

		A.	delivery of the endorsed certificate in his/her name to Democratique will vest in Democratique all of the right, title and
interest in the Lexi-Luu Designs Shares now owned by him/her, free of liens, claims or encumbrances;

 

a-1 Releases. At the Closing, the
LL Shareholders will deliver to Democratique general releases in favor of Lexi-Luu Designs, Inc. signed by each of the LL Shareholders.

 

b. Exchange Shares. At the Closing,
Democratique shall deliver to the LL Shareholders certificates for a total of three hundred million (300,000,000) shares of common
stock of Democratique (the “Exchange Shares”). The certificates shall be allocated as follows:

 

	 	●	75,000,000 shares to Paul Koros.
	 	 	 
	 	●	25,000,000 shares to Paul Koros ITF Paul Koros & Stella Koros & Michael Koros JTWROS. 
	 	 	 
	 	●	200,000,000 shares to Hubert J. Blanchette. 

 

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b-1 The certificates for the Exchange Shares
issued to Hubert J. Blanchette shall bear a legend stating that transfer of the shares is restricted by the terms of this Agreement.
In the event that a Termination Event occurs with respect to Hubert J. Blanchette prior to the second anniversary of the Closing
Date (defined below), then a portion of the Exchange Shares owned by Hubert J. Blanchette shall be automatically cancelled on the
effective date of the Termination Event. Mr. Blanchette shall experience a “Termination Event” if he terminates
his employment by Democratique without Cause (as defined in the employment agreement annexed hereto) or Democratique terminates
his employement for fraud. . The number of shares that will be cancelled in the event of a Termination Event will be:

 

	If the Termination Event

 occurs on or before:	 	Shares Cancelled	 
	September 1, 2014	 	 	50,000,000	 
	March 1, 2015	 	 	35,000,000	 
	September 1, 2015	 	 	15,000,000	 
	March 1, 2016	 	 	5,000,000	 

 

Promptly after a Termination Event, Hubert J. Blanchette shall deliver
to Democratique a certificate for no less than the number of cancelled shares as set forth above.

 

 c. Releases of Debt. At the Closing, Democratique
shall deliver to the LL Creditors certificates for a total of two hundred million (200,000,000) shares of common stock of Democratique
(the “Creditor Shares”). 100,000,000 of the Creditor Shares will be issued in name of F.A. Ventures; 100,000,000
will be issued in name of Laura Fewtrell. In exchange for the Creditor Shares, the LL Creditors will deliver to Democratique at
the Closing general releases in favor of Lexi-Luu Designs, Inc. signed by F.A. Ventures, Laura Fewtrell, Gordon McDougall and Tezi
Advisory.

 

 d. Adjustments. The number of Exchange Shares and
Creditor Shares (collectively, the “Transaction Shares”) will be adjusted in the event that one or both of the
events described in Sections 1(d-1) or 1(d-2) occur.

 

 d-1. Earn-Out Shares. In the event that the revenue
recorded by Lexi Luu Apparel, Inc. during any of the current and two subsequent calendar years equals or exceeds the Annual Threshold,
then Democratique will issue shares of its common stock (the “Earn-Out Shares”) to the LL Shareholders and the
LL Creditors. The Earn-Out Shares will be allocated among the LL Shareholders and the LL Creditors in the relative proportions
of the Transaction Shares. Certificates for the Earn-Out Shares will be issued by April 15 after the end of the calendar year during
which the Earn-Out Shares are earned.

 

 d-1a. The number of Earn-Out Shares to be issued will be
determined by calculating the Earn-Out Value based on the annual revenue, calculated in accordance with generally accepted accounting
principles utilized in preparation of the Democratique financial statement, according to the following table:

 

	Year	 	 	Annual Threshold	 	 	Revenue for each dollar

 of Earn-Out Value	 	 	Maximum

 Earn-Out Value	 
	2014	 	 	$	420,000	 	 	$	7.50	 	 	$	100,000	 
	2015	 	 	$	660,000	 	 	$	10.00	 	 	$	100,000	 
	2016	 	 	$	780,000	 	 	$	15.00	 	 	$	100,000	 

 

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 d-1b. Thus, for example, if in calendar year 2015 Lexi-Luu
Designs records $900,000 in revenue, then Democratique will issue Earn-Out Shares with an Earn-Out Value of $90,000, but if revenue
in 2015 is less than $660,000 then no Earn-Out Shares will be issued, and if revenue in 2015 is $1,200,000, then Earn-Out Shares
with an Earn-Out Value of $100,000 will be issued.

 

 d-1c The number of Earn-Out Shares to be issued will be determined
by dividing the Earn-Out Value by the Year-End Price. The “Year-End Price” will equal the average closing bid price
for the common stock for the last sixty (60) trading days of calendar year during which the Earn-Out Shares were earned.

 

 d-1d If the annual revenue recorded by Lexi-Luu Designs,
Inc. during 2014 equals or exceeds One Million Five Hundred Thousand Dollars ($1,500,000), then, in lieu of the calculations above,
the Earn-Out Value for 2014 will be Three Hundred Thousand Dollars ($300,000) and no Earn-Out Shares will issue on account of revenue
in 2015 or 2016.

 

 d-1e If the annual revenue recorded by Lexi-Luu Designs,
Inc. during 2015 equals or exceeds One Million Five Hundred Thousand Dollars ($1,500,000), then, in lieu of the calculations above
with respect to 2015 and 2016, the Earn-Out Value for 2015 will be Three Hundred Thousand Dollars ($300,000) less any Earn-Out
Value earned during 2014 and no Earn-Out Shares will issue on account of revenue in 2016.

 

 d-2.  Qualified Placement. In the event that Democratique
closes a Qualified Placement at any time prior to the second anniversary of the Closing Date, and the Placement Price is less than
$.0015 per share (adjusted equitably for any recapitalization events after the Closing Date), then additional Transaction Shares
will be issued to the LL Shareholders and the LL Creditors and the table of “shares to be cancelled” in Section 1(b-1)
above will be adjusted proportionately. A “Qualified Placement” will be any sale for cash of equity securities
or instruments convertible into equity securities, with or without additional payment, in which the aggregate gross proceeds equal
or exceed Seven Hundred Fifty Thousand Dollars ($ 750,000). The “Placement Price” will be the average price
per share of common stock sold in the Qualified Placement or, if the Qualified Placement includes a sale of securities other than
common stock, the cash paid on a common stock equivalent basis. The aggregate number of additional Exchange Shares to be issued
shall equal the difference of (i) 450,000 divided by the Placement Price less (ii) the number of Exchange Shares previously issued.
The additional Exchange Shares shall be allocated among the LL Shareholders in the same proportion as indicated in Section 1(b)
above. The aggregate number of additional Creditor Shares to be issued shall equal the difference of (i) 300,000 divided by the
Placement Price less (ii) the number of Creditor Shares previously issued. The additional Creditor Shares shall be allocated among
the LL Creditors in the same proportion as indicated in Section 1(c) above.

 

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		2.	Closing.

 

a.  The parties shall make the deliveries
contemplated by this Agreement (the “Closing”) on the date of execution of this Agreement as set forth above
(the “Closing Date”),. The Closing will take place July 17, 2014 at the office of counsel for Democratique.

 

b. At the Closing, Democratique will deliver:

 

		A.	the stock certificates described in Sections 1(b) and 1(c) hereof with release dates on the certificates.

 

c. At the Closing, the LL Shareholders will
deliver:

 

		A.	the stock certificates described in Section 1(a) hereof.
	 	 	 
		B.	a copy of a resolution of the Board Directors of Lexi-Luu Designs, Inc. appointing Hubert Blanchette and Tamy Aberson Sloboda
to serve on the board of director of Lexi-Luu Designs, Inc..
	 	 	 
		C.	the Employment Agreement with Hubert Blanchette in the form annexed hereto as Appendix A executed by all parties.

 

3.  Democratique Representations and
Warranties. Democratique hereby represents and warrants to the LLShareholders that:

 

a.  Organization, Qualification and Authority.
Democratique is an entity duly incorporated and in good standing under the laws of the State of Nevada, with the requisite power
and authority to own and use its properties and assets and to carry on its business as currently conducted. The execution and delivery
of this agreement and the performance by Democratique of the transactions contemplated by this agreement have been duly authorized
by all necessary corporate or similar action on the part of Democratique. The execution and consummation of the transactions contemplated
by this Agreement will not violate any provision of applicable law and will not conflict with or result in any breach of any of
the terms, conditions, or provisions of, or constitute a default under, Democratique’s Articles of Incorporation or Bylaws
or, in any material respect, any indenture, lease, loan agreement or other agreement or instrument to which Democratique is a party
or by which it or any of its properties are bound, or any decree, judgment, order, statute, rule or regulation applicable to Democratique.

 

b.  Restricted Securities. Democratique
understands that the Lexi-Luu Designs Shares are “restricted securities” and have not been registered under the Securities
Act of 1933 or any applicable state securities law. Democratique is acquiring the Lexi-Luu Designs Shares as principal for its
own account and not with a view to or for distributing or reselling such Shares, has no present intention of distributing any of
such Shares, and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the
distribution of such Shares.

 

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c.  Capitalization. The authorized
capital stock of Democratique consists of 2,000,000,000 shares of common stock, $.001 par value, of which no more than 300,000,000
shares are issued and outstanding, and 25,000,000 authorized shares of preferred stock, $.001 par value, out of which 1,000,000
shares have been designated as Series B Preferred Shares and 999 shares have been designated as Series C Preferred Stock, with
500,000 shares of Series B Preferred Stock and 999 shares of Series C Preferred Stock issued and outstanding. Except for a Securities
Purchase Agreement between Democratique and 112359 Factor Fund, LLC that contemplates the sale of 500,000 shares of Series B Preferred
Stock, there are no outstanding options, warrants, subscription rights or commitments of any character whatsoever giving any person
any right to acquire any shares of Democratique capital stock or capital stock equivalents.

 

d.  SEC Filings. Democratique is a
fully compliant reporting company under the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
and all Democratique public filings required under the Exchange Act have been made. All public filings by Democratique under the
Exchange Act are true, correct and complete in all material respects, are not misleading and do not omit to state any material
fact which is necessary to make the statements contained in such public filings not misleading in any material respect.

 

e. Legal Proceedings. There is no
action, suit, inquiry, notice of violation, proceeding or investigation pending or, to Democratique’s knowledge, threatened
against or affecting Democratique or any of its properties before or by any court, arbitrator, governmental or administrative agency
or regulatory authority (federal, state, county, local or foreign)

 

4.  Lexi-Luu Representations and Warranties.
Hubert J. Blanchette (“Blanchette”) and the LL Creditors, jointly and severally, hereby represent and warrant
to Democratique that:

 

a.  Organization, Qualification and Authority.
Lexi-Luu Designs, Inc. is an entity duly incorporated and in good standing under the laws of the State of Nevada, with the requisite
power and authority to own and use its properties and assets and to carry on its business as currently conducted. Lexi-Luu Designs,
Inc. is qualified to do business in every state in which the nature of its business requires that it be so qualified. Lexi-Luu
Designs, Inc. has no subsidiaries. The execution and consummation of the transactions contemplated by this Agreement will not violate
any provision of applicable law and will not conflict with or result in any breach of any of the terms, conditions, or provisions
of, or constitute a default under, Lexi-Luu Designs, Inc.’s Articles of Incorporation or Bylaws or, in any material respect,
any indenture, lease, loan agreement or other agreement or instrument to which Lexi-Luu Designs, Inc. or any of the LL Shareholders
or LL Creditors is a party or by which it or him/her or any of its or his/her properties are bound, or any decree, judgment, order,
statute, rule or regulation applicable to Lexi-Luu Designs, Inc. or any of the LL Shareholders or any of the LL Creditors.

 

b. Authority. Neither Blanchette nor
any of the LL Creditors is party to any agreement or subject to any judgment or any other instrument that may prevent him/her from
carrying out the transactions contemplated by this Agreement, nor is Hubert Blanchette in any such manner prevented from carrying
on the Lexi-Luu Designs Business or fulfilling his obligations under his Employment Agreement.

 

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c.  Restricted Securities. Each of
the LL Shareholders and LL Creditors understands that the shares to be issued to him/her by Democratique pursuant to Section 1
hereof are “restricted securities” and have not been registered under the Securities Act of 1933 or any applicable
state securities law. Each of the LL Shareholders and LL Creditors is acquiring the shares as principal for his/her own account
and not with a view to or for distributing or reselling such shares, has no present intention of distributing any of such shares,
and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution
of such shares.

 

d.  Capitalization. The authorized
capital stock of Lexi-Luu Designs, Inc. consists of 25,000,000 shares of common stock authorized, $.0001 par value, of which 10,000,000
common stock shares are issued and outstanding, and owned of record and beneficially as follows: Hubert J. Blanchette 8,000,000
shares, Paul John Koros 1,500,000 shares, and Paul John Koros, Stella Koros & Michael Koros 500,000 shares. There are no outstanding
options, warrants, subscription rights or commitments of any character whatsoever giving any person any right to acquire any shares
of Lexi-Luu Designs, Inc. common stock or common stock equivalents.

 

e.  Legal Proceedings. There is no
action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of any of Blanchette or the
LL Creditors, threatened against or affecting Lexi-Luu Designs, Inc. or any of its properties before or by any court, arbitrator,
governmental or administrative agency or regulatory authority (federal, state, county, local or foreign).

 

f.  Financial Condition. The financial
statements of Rocap Marketing, Inc. for the year ended December 31, 2013 and the three months ended March 31, 2014 filed with the
Securities and Exchange Commission (the “Rocap Financials”) fairly present the results of operations of Rocap
Marketing, Inc. for the periods presented and the financial condition of Rocap Marketing, Inc. as of the dates thereof. All of
the assets of Lexi-Luu Designs reflected on such financial statements or subsequently acquired are in good and merchantable condition,
and are free of liens.

 

g. No Contracts or Undisclosed Liabilities.
Lexi-Luu Designs is not party to any contract that it cannot terminate at will without penalty. Except as set forth in the Rocap
Financials or subsequently accrued in the ordinary course of business, there are no liabilities or debts of Lexi-Luu Designs, Inc.
of any kind whatsoever, whether accrued, contingent, absolute, determined, determinable or otherwise, and there is no existing
condition, situation or set of circumstances which could reasonably be expected to result in such a liability or debt other than
purchase orders placed in the ordinary course of business. There are no “employee benefit plans” (as
defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended) or any other plan, program, arrangement
or agreement with respect to which Lexi-Luu Designs, Inc. is obligated to provides bonuses, incentive compensation, vacation pay,
severance pay, insurance or any other perquisite or benefit to officers, employees or consultants of Lexi-Luu Designs, Inc.

 

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 h.  Intellectual Property. Lexi-Luu Designs, Inc.
has, or has rights to use, all designs, copyrights, licenses, trademarks, trademark applications, service marks, trade names, trade
dress, trade secrets, inventions and other intellectual property rights and similar rights as necessary or material for use in
connection with the Lexi-Luu Designs Business (collectively, the “Intellectual Property Rights”). Neither Lexi-Luu
Designs, Inc. nor Blanchette nor any of the LL Creditors has received a notice (written or otherwise) that any of the Intellectual
Property Rights used by Lexi-Luu Designs, Inc. or which Lexi-Luu Designs, Inc. contemplates using violates or infringes upon the
rights of any person. To the knowledge of Blanchette and each of the LL Creditors, all such Intellectual Property Rights are enforceable
and there is no existing infringement by another person of any of the Intellectual Property Rights. Each of Blanchette and the
LL Creditors reasonably believes that Lexi-Luu Designs, Inc. will be able to carry out all aspects of the Lexi-Luu Designs Business
as currently contemplated without purchasing or licensing any additional intellectual property or violating or infringing upon
the intellectual property rights of any person.

 

 i. Finder Fees. Lexi-Luu Designs, Inc. has not incurred,
nor will it incur, directly or indirectly, any liability for brokers’ or finders’ fees or agents’ commissions
or investment bankers’ fees or any similar charges in connection with this Agreement or any transaction contemplated hereby.

 

5.  Management. Unless Democratique
and Blanchette otherwise agree in writing, the following covenants shall govern the management of Lexi-Luu Designs, Inc.

 

 a.  Board of Directors. Board of Director of Lexi-Luu
Designs, Inc. shall consist of Hubert J. Blanchette and one designee of Democratique. The initial designee of Democratique shall
be Tamy Aberson Sloboda.

 

 b.  Employment of Blanchette. On or prior to the Closing
Date, Blanchette and Lexi-Luu Designs, Inc. will execute the Employment Agreement annexed hereto as Appendix A, pursuant to which
Blanchette shall serve Chief Executive Officer of Lexi-Luu Designs, Inc. and will have full authority to decide how to use funding
allocated to Lexi-Luu Designs Inc to grow the revenues.

 

 c. Independent Entity. Prior to the second anniversary
of the Closing Date:

 

		A.	No action shall be taken to end the corporate existence of Lexi-Luu Designs, Inc.
	 	 	 
		B.	Democratique shall not sell any capital stock of Lexi Luu Designs. nor make any sale of assets of Lexi Luu Designs outside
the ordinary course of business. without Board of Directors Approval.
	 	 	 
		C.	Lexi Luu. shall not issue any capital stock without Board of Director Approval. without Board of Directors approval.
	 	 	 
		D.	Lexi-Luu Designs, Inc. shall not declare or pay any dividend without Board of Director Approval.
	 	 	 
		E.	Management of Lexi-Luu Designs, Inc. shall maintain books and records of Lexi-Luu Designs, Inc. as a wholly-owned subsidiary,
which shall accurately record the assets and liabilities of Lexi-Luu Designs, Inc.

 

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 d. Financing. Democratique will provide working capital
to Lexi-Luu Designs, Inc. The amount and timing of the capital will be determined in the sole discretion of the board of directors
of Democratique, based on the board’s assessment of Democratique’s available cash resources and the cash requirements
of its several businesses. The parties contemplate that no more than $300,000 in capital from Democratique will be required in
order for Lexi-Luu Designs, Inc. to implement its business plan. However, the parties acknowledge that Democratique has very limited
cash resources at this time and, accordingly, Democratique makes no covenant nor representation or promise regarding the amount
of financing, if any, that it will provide for the Lexi-Luu Designs Business.

 

 7. Reversion Option. Democratique hereby
grants to the LL Shareholders an option to purchase the Lexi-Luu Designs Shares for a price of $.0001 per share (the “Reversion
Option”). The Reversion Option may be exercised during the period commencing on the occurrence of an Insolvency Event
and ending on the second anniversary of the Closing Date. In order to exercise the Reversion Option, the holders of a majority
in interest of the LL Shareholders must deliver to the executive offices of Democratique: a written notice of exercise, a personal
check for the option exercise price, and a bank check in the amount of any outstanding loans from Democratique to Lexi-Luu Designs,
Inc. Upon receipt of the aforesaid three items, Democratique shall deliver to the LL Shareholders certificates for the Lexi-Luu
Designs Shares in the same names and numbers of shares as were delivered pursuant to Section 1(a) hereof.

 

As used herein, “Insolvency Event”
means (i) Democratique shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief
with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking
the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial part of its property,
or shall consent to any such relief or to the appointment of or taking possession by any such official in an involuntary case or
other proceeding commenced against it, or shall make a general assignment for the benefit of creditors, or shall fail generally
to pay its debts as they become due, or shall take any corporate action to authorize any of the foregoing; (ii) an involuntary
case or other proceeding shall be commenced against Democratique seeking liquidation, reorganization or other relief with respect
to it or its debts under bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a
trustee, receiver, liquidator, custodian or other similar official of it or any substantial part of its property, and such involuntary
case or other proceeding shall remain undismissed and unstayed for a period of 60 days; or (iii) an order for relief shall
be entered against Democratique under the federal bankruptcy laws in effect at such time.

 

 8. Indemnification.  Democratique, on the
one hand, and the LL Shareholders and LL Creditors, on the other hand, shall indemnify, defend and hold harmless the other against
all losses, claims, damages, costs, expenses (including reasonable attorneys’ fees), liabilities or judgments or amounts
that are paid in settlement of or in connection with any threatened or actual third party claim, action, suit, proceeding or investigation
based in whole or in part on or arising in whole or in part out of any breach of this Agreement by the party from whom indemnification
is sought (the “Indemnifier”), including but not limited to failure of any representation or warranty made by
the Indemnifier to be true and correct at or before the Closing. Any party wishing to claim indemnification under this Section
8, upon learning of any such claim, action, suit, proceeding or investigation, shall notify the Indemnifier in writing, but the
failure to so notify shall not relieve the Indemnifier from any liability that it or she may have under this Section 8, except
to the extent that such failure would materially prejudice the Indemnifier.

 

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		9.	Miscellaneous

 

a. Governing Law. All questions
concerning the construction, validity, enforcement and interpretation of this agreement shall be governed by and construed and
enforced in accordance with the internal laws of the State of California, without regard to the principles of conflicts of law
thereof.

 

b. Arbitration.
Any controversy, claim, or dispute arising out of or relating to the terms and conditions of this agreement shall be settled by
arbitration, before a panel of one arbitrator, conducted in Los Angeles County, California in accordance with the Commercial Arbitration
Rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrators’ award in any court
having jurisdiction.

 

 c. Successors and Assigns. This Agreement shall
be binding upon and inure to the benefit of the parties and their successors and permitted assigns.

 

 d. Entire Agreement. This agreement contains
the entire understanding of the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings,
oral or written, with respect to such matters, which the parties acknowledge have been merged into this agreement.

 

e.  Notices. Any and all notices
or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given
and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile to a
facsimile number maintained in the executive offices of the receiving party for that purpose, (b) the second business day following
the date of mailing, if sent by a U.S. nationally recognized overnight courier service or (c) upon actual receipt by the party
to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the first
pages of this agreement, unless such address is changed by notice to the other party hereto.

 

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IN WITNESS WHEREOF, the parties
have made this agreement as of the date written on its first line.

 

	BITZIO, INC.	 	THE LL SHAREHOLDERS:
	 	 	 	 
	By:	/s/ Tamy
    Aberson Sloboda	 	/s/ Hubert
    J. Blanchette
	 	Tamy Aberson Sloboda, President	 	Hubert J. Blanchette
	 	 	 	6040 East Main St., #446 
	 	 	 	Mesa, AZ 85205

  

THE LL CREDITORS:

 

	 	 	/s/
    Paul John Koros
	 	 	Paul John Koros
	/s/ Gordon
    McDougall	 	7 - 930 Chilco Street
	Gordon McDougall	 	Vancouver, BC V6G 2R4 
	416 E. Broadway Ave. Suite 105	 	 
	Glendale, CA 91205	 	/s/ Paul
    Koros as PoA for Stella Koros
	 	 	Stella Koros
	/s/ Laura
    Fewtrell	 	ibid.
	Laura Fewtrell	 	 
	ibid.	 	/s/ Paul
    Koros as PoA for Michael John Koros
	 	 	Michael John Koros
	 	 	ibid.

 

    	10EMPLOYMENT
AGREEMENT

 

This
Employment Agreement (this “Agreement”),
dated as of this 17th day of July, 2014, is entered into by and between Hubert J. Blanchette (“Executive”)
and Bitzio, Inc., a Nevada corporation (the “Company”).

 

RECITALS

 

WHEREAS,
Executive and the Company have entered into a Share Exchange Agreement pursuant to which the Company is purchasing Lexi-Luu Designs,
Inc. from Executive and others, and said agreement contemplates that the parties will enter into this Employment Agreement.

 

WHEREAS,
the Company believes that the future growth, profitability and success of the business of the Company will be significantly enhanced
by the employment of Executive as Chief Executive Officer of its subsidiary, Lexi-Luu Designs , Inc.

 

WHEREAS,
subject to the terms and conditions of this Agreement, the Company desires to employ the Executive, and the Executive desires
to accept such employment with the Company.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the foregoing premises and certain other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Parties agree as follows:

 

I.
DEFINITIONS

 

1.1
Certain Definitions. Capitalized terms used but not otherwise defined in this Agreement shall have the meanings set forth
below:

 

(a)
“Act” means the Nevada General Corporation Law, as amended from time to tim.

 

(b)
“Agreement”: has the meaning set forth in the introductory paragraph.

 

(c)
“Board”: means the Board of Directors of the Company.

 

(d)
“Business Day”: means any day other than a Saturday or Sunday or a day on which the Federal Reserve
Bank of New York is closed.

  

    	 

    	 

    

 

(e)
“Cause”: means (i) the willful failure of Executive to perform substantially Executive’s duties
with the Company (as described in Section 2.2) or to follow a lawful reasonable directive from the Board (other than any such
failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered
to Executive by the Board which specifically identifies the manner in which the Board believes that Executive has not substantially
performed Executive’s duties or to follow a lawful reasonable directive and Executive is given a reasonable opportunity
(not to exceed thirty (30) days) to cure any such failure to substantially perform, if curable; or (ii) (A) any willful act of
fraud, or embezzlement or theft by Executive, in each case, in connection with Executive’s duties hereunder or in the course
of Executive’s employment hereunder or (B) Executive’s admission in any court, or conviction of, a felony involving
moral turpitude, fraud, or embezzlement, theft or misrepresentation. For the avoidance of doubt, no act or failure to act, on
the part of Executive, shall be considered “willful” unless it is done, or omitted to be done, by Executive in bad
faith and without reasonable belief that Executive’s action or omission was in the best interests of the Company. Any act,
or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel
for the Company shall be conclusively presumed to be done, or omitted to be done, by Executive in good faith and in the best interests
of the Company. The cessation of employment of Executive shall not be deemed to be for Cause unless and until there shall have
been delivered to Executive a copy of a resolution duly adopted by the Board at a meeting of the Board called and held for such
purpose (after reasonable notice is provided to Executive and Executive is given an opportunity, together with counsel for Executive,
to be heard before the Board), finding that, in the good faith opinion of the Board, Executive is guilty of the conduct described
above, and specifying the particulars thereof in detail.

  

(f)
“Company”: has the meaning set forth in the introductory paragraph.

 

(g)
“Disability”: means a physical or mental incapacity as a result of which Executive becomes unable to
continue to perform fully his duties under this Agreement for 90 consecutive calendar days or for shorter periods aggregating
90 or more days in any 12-month period or upon the determination by a physician selected by the Company on account of Executive’s
mental or physical incapacity that Executive will be unable to return to work and perform his duties on a full-time basis within
90 calendar days following the date of such determination.

 

(h)
“Effective Date”: means July 17, 2014.

 

(i)
“Executive”: has the meaning set forth in the introductory paragraph.

 

(j)
“Employment Period”: has the meaning set forth in Section 2.1.

 

(k)
“Good Reason”: means, without Executive’s express written consent, the occurrence of any of the
following circumstances unless such circumstances are fully corrected prior to the date of termination specified in the written
notice given by Executive notifying the Company of his resignation for Good Reason:

 

	 	i.	The
    assignment to Executive of any duties inconsistent with his status as Chief Executive Officer of Lexi Luu, Inc. or an adverse
    alteration in the nature or status of his responsibilities;
	 	 	 
	 	ii.	The
    failure of Executive to be elected/re-elected as a member of the board of directors of Lexi Luu, Inc.;

 

    	2

    	 

    

 

	 	iii.
    	A
    reduction by the Company in his base salary as set forth in Section 2.3(a) or as the same may be increased from time to time
    pursuant to paragraph 2.3(a) hereof;
	 	 	 
	 	iv.	The
    relocation of the principal executive offices of Lexi Luu Designs, Inc. to a location other than its current place of operation,
    or the Company’s requiring Executive to be based anywhere other than at the aforesaid offices; or
	 	 	 
	 	v.	The
    failure by the Company to pay to Executive any material portion of his compensation, except pursuant to a compensation deferral
    elected by Executive.

 

(l)
“Person”: means an individual, a corporation, a partnership, a limited liability company, an association,
a trust, a joint stock company, a joint venture, an unincorporated organization or any federal, state, county, city, municipal
or other local or foreign government or any subdivision, authority, commission, board, bureau, court, administrative panel or
other instrumentality thereof.

 

(m)
“Profit Share”: has the meaning set forth in Section 2.3(b). “

 

(n)
“Salary”: has the meaning set forth in Section 2.3(a). “

 

(o)
“Termination Date”: has the meaning set forth in Section 2.1.

 

II.
TERMS OF EMPLOYMENT

 

2.1
Employment Period. Executive’s employment under this Agreement will commence on the Effective Date and shall continue
until the fifth anniversary of the Effective Date, unless sooner terminated in accordance with Section 2.5. The period of Executive’s
employment under this Agreement as determined under the preceding sentence is referred to herein as the “Employment
Period,” and the date on which such employment terminates pursuant to this Section 2.1 or Section 2.5 is referred
to herein as the “Termination Date.”

 

2.2
Duties During Employment Period. Executive will be employed by the Company as the Chief Executive Officer of Lexi Luu,
Inc. Executive will report to the Chief Executive Officer of the Company and to the Board. In such capacity, Executive will perform
such duties and exercise such powers as are set forth in the Act or as reasonably assigned to Executive by the Board or by the
Chief Executive Officer from time to time. Executive will also serve as a member of the Board of Directors of the Company and
the Board of Directors of Lexi-Luu Designs, Inc. Executive shall devote his full business time and attention to his duties hereunder,
except that Executive may serve on advisory boards or the board of directors of other companies if such service does not substantially
interfere with his duties to the Company or create a conflict of interest.

 

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2.3
Compensation.

 

(a)
Salary. For Executive’s services under this Agreement, the Company will pay to Executive an annual salary (“Salary”).
The annual Salary will be One Hundred Fifty Thousand Dollars ($150,000). The Board may review the amount of the Salary in six
months, and the Board may adjust the Salary upwards after any such review, with any such upward adjustments effective as of the
dates determined by the Board. There will be no diminution of the Salary (as increased from time to time). Except as set forth
in Section 2.3(a-1) below, Executive’s Salary will be payable to Executive periodically, but not less frequently than once
a month.

 

(a-1)
Salary Deferral. During the period from the Effective Date through May 31, 2015, the Company will defer payment of $7,500
per month and pay only $5,000 per month in cash, provided that portions approved by Executive of the salaries of the Company’s
other executive officers are likewise deferred. The Company’s obligation to pay the deferred portion will be satisfied by
issuing to Executive on June 1, 2015 52,500,000 shares of the Company’s common stock, representing deferred salary of $78,750
converted to shares at $0.0015 per share.

 

(b)
Profit Share. Thirty days after the end of each half-calendar year (i.e. on January 30 and July 30 of each year), Lexi-Luu
Designs, Inc. will pay Executive an amount equal to five percent (5%) of the contribution margin realized by Lexi-Luu Designs,
Inc. during the preceding half-year from sales to the Existing Customers. Contribution margin will be measured in a manner consistent
with the Company’s general practice for marketing metrics. The “Existing Customers” consist of
all entities that submitted purchase orders to Lexi-Luu Designs, Inc. during the twenty-four months preceding the Effective Date.

 

(c)
Equity Interest. Promptly after the execution of this agreement, the Executive will be issued 50,000,000 shares of the
Company’s common stock, which will vest over a 2 year period, with 1/8 of the shares vesting every quarter.

 

(d)
Deductions and Withholdings. All amounts payable or that become payable under this Agreement will be subject to any deductions
and withholdings required by law.

 

2.4
Benefits.

 

(a)
Benefits. Except as otherwise addressed in this Section 2.4, during the Employment Period, Executive shall be entitled
to participate in all pension, medical, retirement and other benefit plans and programs generally available to the Company’s
senior officers, including participation in incentive compensation programs such as bonus programs and stock options. The Company
will adopt a stock option program during 2014 for the benefit of executives and key employees.

 

(b)
Vacation. Executive shall be entitled to paid vacation time of four (4) weeks per fiscal year taken in accordance with
the vacation policy of the Company. Executive shall also be entitled to all paid holidays and to reasonable sick leave in accordance
with the policies of the Company applicable to its executive management. Executive will accrue vacation pro rata on a monthly
basis so long as Executive’s total accrued vacation does not exceed eight (8) weeks. Should Executive’s accrued vacation
time reach 8 weeks, Executive will cease to accrue vacation until Executive’s accrued vacation time falls below that level.

 

    	4

    	 

    

 

(c)
Expenses. Subject to compliance with the Company’s policies as from time to time in effect regarding the incurrence,
substantiation and verification of business expenses during the Employment Period, the Company will pay or reimburse Executive
for all reasonable expenses incurred in connection with the performance of Executive’s duties under this Agreement or for
promoting, pursuing or otherwise furthering the business of the Company, including Executive’s reasonable expenses for travel,
entertainment and similar items.

 

2.5
Termination. Executive acknowledges and agrees that Executive’s right to compensation under this Agreement terminates
at the end of the Employment Period, except as otherwise provided in this Agreement or by law.

 

(a)
Termination by the Company for Cause or Resignation without Good Reason.

 

(b)
The Company will have the right to terminate Executive’s employment under this Agreement for Cause upon ten (10) days prior
written notice to Executive and pursuant to the definition of “Cause” as set forth in Section 1.1(e) hereof. In the
event that the Company has afforded the Executive a cure period as described in Section 1.1(e), the notice period to Executive
may, at the option of the Board, run concurrent with the cure period. Executive shall resign from the Board promptly after the
Company’s request, in the event Executive is so terminated or Executive resigns with or without Good Reason.

 

(c)
If Executive is terminated For Cause, or if he resigns his position without Good Reason, then: (a) all of his rights and benefits
under this Agreement shall thereupon terminate and his employment shall be deemed terminated on the date of such termination or
resignation; (b) he shall be entitled to all accrued Salary, Profit Share, vested options, rights, payments and benefits earned,
vested or paid on or before such date under the Company’s plans and programs, but unvested Company stock options granted
to Executive by the Company pursuant to a Company stock option plan (“Company Stock Options”) will be
deemed terminated; (c) his right to exercise vested Company Stock Options will expire 90 days from the date of such termination
or resignation, and all stock options not so exercised will be deemed terminated; (d) the Company shall pay Executive all accrued
but unused vacation earned by Executive through the Termination Date and all unreimbursed expenses incurred by Executive prior
to the Termination Date; and (e) his right to indemnification under the Company’s charter and bylaws or pursuant to the
Act will continue in force. The Company shall make all payments due to Executive pursuant to this Section 2.5 promptly following
his last day of employment with the Company.

 

    	5

    	 

    

 

(d)
Termination by Death of Executive. If Executive dies during the Employment Period, the Company will pay to such Person
or Persons as Executive may designate in writing or, in the absence of such designation, to the estate of Executive, the sum of
(i) accrued but unpaid Salary earned prior to Executive’s death, (ii) accrued but unused vacation earned prior to Executive’s
death, (iii) all unreimbursed expenses incurred by Executive prior to his death, (iv) all benefits they are entitled to under
the terms of the Company’s benefit plans and programs by reason of a participant’s death during active employment,
including applicable rights and benefits under the Company’s equity plans. Notwithstanding anything to the contrary contained
in the Company’s equity plan documents or in this paragraph, upon Executive’s death one hundred percent (100%) of
Executive’s unvested Company Stock Options, if any, will vest.

 

(e)
Termination for Disability. The Company will have the right to terminate Executive’s employment under this Agreement
at any time upon the Disability of Executive during the Employment Period. If Executive’s employment is terminated because
of Executive’s Disability, the Company will pay to Executive the sum of (i) accrued but unpaid Salary earned prior to Executive’s
Disability, (ii) accrued but unused vacation earned by Executive prior to Executive’s Disability and (iii) all unreimbursed
expenses incurred by Executive prior to his Disability. Notwithstanding such termination of employment, the Company shall continue
to provide to Executive the benefits of those Company plans under which Executive qualifies until the expiration of the term remaining
in this Agreement.

 

III.
MISCELLANEOUS

 

3.1
Assignment of Inventions. Executive agrees to promptly make full written disclosure to the Company of all Inventions, and
to assign to the Company all right, title and interest in and to any and all Inventions. Executive further acknowledges that all
Inventions are “works made for hire” as that term is defined in the United States Copyright Act. As used herein, the
term “Inventions” means all original designs, works of authorship, developments, concepts, improvements or trade secrets,
whether or not patentable or registrable under copyright or similar laws, that Executive may individually or jointly conceive
or develop or reduce to practice, or cause to be conceived or developed or reduced to practice during the period of employment
with the Company. The term “Inventions” does not, however, apply to, and this Section 3.1 does not require an assignment
of, any invention that the Executive develops entirely on his own time without using the Company’s equipment, supplies,
facilities, or trade secret information, except for those inventions that either: (i) relate at the time of conception or reduction
to practice to the Company’s business, or actual or demonstrably anticipated research or development of the Company, or
(ii) result from any work performed by Executive for the Company.

 

3.2
Notices. Any notice to be given or to be served upon any Party in connection with this Agreement must be in writing (which
may include facsimile) and will be deemed to have been given and received when delivered to the address specified by the Party
to receive the notice. Any Party may, at any time by giving five (5) days’ prior written notice to the other Party, designate
any other address in substitution of the foregoing address to which such notice will be given. Such notices will be given to a
Party at the address specified below:

 

If
to Company:

Bitzio,
Inc.

9625
Cozycroft Avenue, Suite A

Chatsworth,
CA 91311

 

    	6

    	 

    

 

If
to Executive:

Hubert
J. Blanchette

6040
East Main St.#446

Mesa,
AZ 85205

 

Notices,
requests and other communications will be deemed given upon the first to occur of such item having been (a) delivered personally
to the address provided in this Section 3.2, (b) delivered by confirmed facsimile transmission to the facsimile number provided
in this Section 3.2, (c) by email, confirmed by one of the other means described in this Section 3.2, or (d) delivered by registered
or certified mail or by reputable national overnight courier service in the manner described above to the address provided in
this Section 3.2 (in each case regardless of whether such notice, request or other communication is received by any other Person
to whom a copy of such notice, request or other communication is to be delivered pursuant to this Section 3.2). Any Party from
time to time may change its address, facsimile number or other information for the purpose of notices to that Party by giving
notice specifying such change to the other Party.

 

3.3
Entire Agreement. This Agreement supersedes all prior discussions and agreements, whether oral or written, between the
Parties with respect to the subject matter hereof, and contains the entire agreement between the Parties with respect to the subject
matter thereof.

 

3.4
Waiver. Any term or condition of this Agreement may be waived at any time by the Party that is entitled to the benefit
thereof, but no such waiver shall be effective unless set forth in a written instrument duly executed by or on behalf of the Party
waiving such term or condition and delivered pursuant to Section 3.2. No waiver by any Party of any term or condition of this
Agreement, in any one or more instances, shall be deemed to be or construed as a waiver of the same or any other term or condition
of this Agreement on any future occasion. All remedies, either under this Agreement or by applicable law or otherwise afforded,
will be cumulative and not alternative.

 

3.5
Governing Law. This agreement shall be governed by and construed in accordance with the laws of the State of California
without regard to its principles of conflicts of laws.

 

3.6
Waiver of Jury Trial. EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING
RELATING TO A DISPUTE AND FOR ANY COUNTERCLAIM WITH RESPECT THERETO.

 

    	7

    	 

    

 

3.7
Jurisdiction. Any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of
or in connection with, this Agreement or the transactions contemplated hereby may be brought in any court of competent jurisdiction
in Los Angeles County, California or any federal court sitting in Los Angeles County, California, and each of the parties hereby
consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding
and irrevocably waives, to the full extent permitted by law, any objection which it may now or hereafter have to the laying of
the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding which is brought
in any such court has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any
party anywhere in the world, whether within or without the jurisdiction of any such court. Without limiting the foregoing, each
party agrees that service of process on such party as provided in Section 3.2 will be deemed effective service of process on such
party.

 

3.8
Successors and Assigns. The provisions of this Agreement will be binding upon and inure to the benefit of the parties and
their respective successors and assigns, provided that Executive may not assign, delegate or otherwise transfer any of his rights
or obligations under this Agreement without the prior written consent of the Company.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

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IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written.

 

	 	COMPANY:
	 	 
	 	Bitzio, Inc.
	 	A Nevada corporation
	 	 
	 	By:	/s/ Tamy
    Aberson Sloboda
	 	Name:	Tamy Aberson Sloboda
	 	Title:	President
	 	 	 
	 	EMPLOYEE:
	 	 
	 	/s/ Hubert J. Blanchette
	 	Hubert J. Blanchette

 

[Signature
Page to Employment Agreement] 

 

    	9

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