Document:

Exhibit 10.2

THE BITZIO CORP.

STOCK ACQUISITION AGREEMENT

Date: July 13, 2011

This Stock Acquisition Agreement (''Agreement'') is between Bitzio Holdings, Inc. (the "Buyer"),  and Amish Shah (the "Seller"), the owner of 100% of the outstanding shares of Bitzio Corp. (the “Business”).  Seller has disclosed and Buyer hereby acknowledges that this Agreement will be executed while Bitzio, LLC is transitioning to Bitzio Corp.  Seller warrants that the transition will be complete prior to the Closing Date, as further defined herein.

INTRODUCTION

Seller desires to sell and Buyer desires to purchase all of the shares of the Business, which is engaged in mobile phone application development, sale, and related business operations, including those assets and only those liabilities attached therein as described in Exhibit "A" and Exhibit “B” attached hereto and incorporated herein by reference on the terms and conditions set forth in this Agreement.

It is understood and acknowledged by the Seller and Buyer that Buyer is a wholly owned subsidiary of Bitzio, Inc., a corporation whose common stock is quoted for trading on the OTC Bulletin Board, shares of which corporation are intended to be given as consideration for the Business in this transaction.

In consideration of the mutual promises of the parties; in reliance on the representations, warranties, covenants, and conditions contained in this Agreement; and for other good and valuable consideration, the parties agree as follows:

 

ARTICLE 1 SALE

 

Business Management Interests and Assets

1.01. Seller agrees to sell, convey, transfer, assign, and deliver to Buyer, and Buyer agrees to purchase or accept from Seller, one hundred percent (100%) of the equity shares of the Business, including, but not limited to, the assets (the “Assets”) described in Exhibit "A" attached hereto and incorporated herein by reference. It is the intent of the parties hereto that the stock paid by the Buyer qualifies as a tax-free reorganization under the applicable provisions of Section 368(a)(1)(B) of the Internal Revenue Code of 1986, as amended, and related sections thereunder; however, the Buyer makes no representations as to such eligibility. The Seller acknowledges that he has obtained the advice of his own tax consultants and is satisfied and accepts the tax consequences of the transaction as described in this agreement.

  

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1.02. It is understood and agreed by the Seller and the Buyer that the following assets of the Seller  are not the assets of the Business and are therefore excluded from the sale:

	
  

	
a)

	
Accounts receivable with respect to sales of the Business prior to the Closing Date.

The Seller shall provide the Buyer with a list of such accounts receivable at the Closing (as defined herein) and the Buyer shall use its best efforts to collect such accounts receivable and deliver any monies collected forthwith to the Seller.

Payment - Consideration for Sale

1.03. In consideration of the sale and transfer of the 100% equity ownership of the Business and the representations, warranties, and covenants of Seller set forth in this Agreement, Buyer shall pay the to the Seller, five million (5,000,000) shares of the common, voting stock of Bitzio, Inc. (the “Shares”) within 15 days after the Closing Date (the "Purchase Price"). The parties acknowledge that such shares will be restricted and accordingly cannot be resold without registration under the Securities Act of 1933 or an exemption therefrom.

1.04. Buyer shall assume on the Closing Date only those duties, liabilities and obligations of the Business arising after the Closing Date pursuant to the contracts, agreements, and purchase orders, insurance and leases described on Exhibit "B" attached hereto and incorporated herein by reference, and to all other purchase orders issued by Business in the ordinary course of business after the Closing Date.

Closing

1.05. The closing (the “Closing”) of the purchase and sale described herein shall be complete upon the date that is ten (10) business days following the date of this Agreement or such earlier date as the parties may agree (the ''Closing Date'').  If Buyer fails to deliver to the Seller the amounts described in section 1.03 within the time set out therein, this Agreement shall be deemed terminated by Buyer unless the Parties mutually agree in writing (via e-mail or otherwise) to an extension and new closing date.

 

ARTICLE 2 SELLERS REPRESENTATIONS AND WARRANTIES

Seller hereby represents and warrants to Buyer that the following facts and circumstances are and at all times up to the Closing Date will be true and correct:

  

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Ownership

2.01. Seller is the sole beneficial owner of the Business with full right to sell or dispose of the shares of the Business as Seller may choose. No other person or persons have any claim, right, title, interest, or lien in, to, or on the Business. No options or warrants to acquire shares of the Business exist or will exist at the Closing Date.

(a) Seller has disclosed and Buyer hereby acknowledges that the business records on file with the California Secretary of State’s office reflect that Seller is 70% owner of the Business, however Seller has acquired the remaining 30% through a contractual transfer that is not reflected in the official records.

Title to Assets and Properties

2.02. The Business has good and marketable title to all of the Assets, both tangible and intangible. All of these assets and interests are free and clear of liens, pledges, charges, encumbrances, equities, valid claims, covenants, conditions, and restrictions. The Seller agrees to indemnify the Buyer for the amount of any undisclosed liabilities and claims that are discovered after the Closing Date.

Laws and Regulations

2.03. Seller is not knowingly in default or in violation of any law; regulation; court order; or order of any federal, state, municipal, foreign, or other government department, board, bureau, agency, or instrumentality, wherever located.

Authority

2.04. Seller has the full power and authority to execute, deliver, and consummate this Agreement, subject to the conditions to Closing set forth in this Agreement. Except as otherwise disclosed in this Agreement, no notice to or approval by any other person, firm, or entity, including governmental authorities, is required by Seller to consummate the transaction contemplated by this Agreement.

Financial Information

2.05. Seller represents that the financial information disclosed to Buyer prior to and up to Closing by Seller is true and accurate and that no material information has been intentionally withheld.

Seller further represents that he will furnish financial information including accounts payable, accounts receivable and cash balances as of the Closing Date and will not deviate from any payments, collections or withdrawals without the written agreement of Buyer. Seller agrees to provide the Buyer with full access to the accounting records of the Business to complete certified audits of its accounting as may be required by the rules and regulations of the Securities and Exchange Commission of the United States of America.

  

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Brokers

2.06. Seller has not retained, consented to, or authorized any broker, investment banker, or third party to act on his or the Business' behalf, directly or indirectly, as a broker or finder in connection with the transactions contemplated by this Agreement.

ARTICLE 3 BUYER'S REPRESENTATIONS AND WARRANTIES

Buyer represents and warrants to Seller that:

Authority

3.01. Buyer has full power and authority to execute, deliver, and consummate this Agreement subject to the conditions to Closing set forth in this Agreement. No provisions exist in any contract, document, or other instrument to which Buyer is a party or by which Buyer is bound that would be violated by consummation of the transactions contemplated by this Agreement.

Financial Information

3.02. Bitzio, Inc. currently has an authorized capitalization of 100,000,000 shares of common stock, par value $0.001 per share, of which not more than 50,000,000 shares will be issued and outstanding immediately prior to this acquisition.

3.03. Presently, there are no shares of Bitzio, Inc. common stock, options, warrants or other securities issued and outstanding other than as set forth in Bitzio, Inc.’s financial statements or otherwise disclosed to the Seller.

 

ARTICLE 4 COVENANTS

Seller covenants with Buyer that from and after the date of this Agreement until the Closing Date, Seller will and will cause Business to:

Business Operations

4.01. Operate its business and conduct its activities in the normal course of business and not introduce any new method of management, operation, or accounting without prior written approval of Buyer.

  

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Maintenance of Assets

4.02. Maintain all Assets in as good a state of operating condition and repair as they are on the date of this Agreement, except for ordinary depreciation, wear, and tear.

Absence of Liens

4.03. Not sell, pledge, lease, encumber, dispose of, or agree to do any of these acts regarding any of the Assets, without the prior written approval of Buyer.

Preservation of Business

4.04. Use its best efforts to preserve intact its organization and personnel and to keep available the services of all of its employees, agents, independent contractors, and consultants commensurate with business requirements.

Preservation of Customer Relations

4.05. Use its best efforts to preserve intact the present customers of Business and the goodwill of all customers and others with respect to the business.

Performance of Obligations

4.06. Perform all of its obligations and not make any material amendment to its obligations under all agreements relating to or affecting Business's customers, business, properties, and assets.

Notification of Litigation

4.07. Promptly notify Buyer in writing of any outstanding or threatened claims; legal, administrative, or other proceedings, suits, investigations, inquiries, complaints, notices of violation, or other process; or judgments, orders, directives, injunctions, or restrictions against or involving the Assets or that could adversely affect the Business.

4.08. Not negotiate with any person or entity, or solicit or entertain any proposal concerning any acquisition in any form of business other than ordinary day-to-day operations of the Business.

Payment of Liabilities and Waiver of Claims

4.09. Not do, or agree to do, any of the following acts:

(a) Pay any obligation or liability, fixed or contingent, other than current liabilities.

(b) Waive or compromise any right or claim.

 

  

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(c) Without full payment, cancel any note, loan, or other obligation owing to Business.

 

Maintain Existing Agreements

4.10. Not modify, amend, cancel, or terminate any of the Business's existing contracts or agreements, or agree to do so without the written consent of Buyer.

Taxes and Outstanding Payment Due

4.11. File and maintain accurate records or taxes, fees and costs of taxes that are payable or due prior to Closing, and maintain sufficient funds in business accounts acquired by Buyer to cover taxes, fees and costs accrued prior to Closing but not yet payable or due at time of Closing.

Proprietary Information

4.12. Take reasonable steps to ensure the confidentiality and security of necessary passwords and source code associated with the maintenance of the Business and the Assets prior to and after Closing.

4.13. Take reasonable steps to ensure the confidentiality and non-disclosure of information concerning the sale of the Business and its Assets, and specifically financial information not available to the public relating thereto.

 

ARTICLE 5 CONDITIONS TO BUYER'S OBLIGATION TO CLOSE

The obligation of Buyer to Close under this Agreement is subject to each of the following conditions (any one of which may, at the option of Buyer, be waived in writing by Buyer) existing on the Closing Date, or such earlier date as the context may require.

Representations and Warranties

5.01. Each of the representations and warranties of Seller in this Agreement, the disclosures contained in the exhibits to this Agreement, and all other information delivered under this Agreement shall be true in all material respects at and as of the Closing Date as though each representation, warranty, and disclosure were made and delivered at and as of the Closing Date.

Due Diligence

5.02. From the date hereof, the Seller will make available to the Buyer for review, financial statements, books, records and other corporate documents relating to the Business as the Buyer may reasonably request and the Buyer will have the opportunity to meet with the Seller’s accountants and key personnel to discuss the financial and business conditions of the Business and to make whatever further independent investigation the Buyer deems necessary and prudent.  The Seller will cooperate with the Buyer in providing such documentation and information as the Buyer may request.  In the event that the transactions contemplated herein are not consummated, the Buyer will promptly return all financial statements, books, records and other corporate documents to the Seller.

  

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5.04. Buyer and Seller shall each comply with and perform all agreements, covenants, and conditions in this Agreement required to be performed and complied with by each of them. All requisite action (corporate and other) in order to consummate this Agreement shall be properly taken by the parties.

 

ARTICLE 6 PARTIES' OBLIGATIONS AT THE CLOSING

Seller's Obligations at the Closing

6.01. At the Closing, Seller shall execute, if appropriate, and shall deliver to Buyer:

(a) A proposed amendment to Business’s Articles of Organization designating Buyer’s purchase of the Business and change of the designated agent, to be filed with the California Secretary of State.

(b) 100% of the equity shares of the Business.

(c) All documentation in the possession of Seller necessary to operate and to use all Business interests and liabilities being sold to Buyer in this Agreement.

Seller, at any time before or after the Closing Date, shall execute, acknowledge, and deliver to Buyer any further assignments, conveyances, other assurances, documents, and instruments of transfer reasonably requested by Buyer.  Seller shall also take any other action consistent with the terms of this Agreement that may be reasonably requested by Buyer for the purpose of assigning, transferring, granting, conveying, and confirming to Buyer or reducing to possession any or all of the Business interests, liabilities, and Assets to be conveyed and transferred by this Agreement.  If requested by Buyer, Seller further agrees to prosecute or otherwise enforce in its own name for the benefit of Buyer any claims, rights, or benefits of the Assets that are transferred to Buyer by this Agreement and that require prosecution or enforcement in Seller' name. Any prosecution or enforcement of claims, rights, or benefits under this paragraph shall be solely at Buyer's expense, unless the prosecution or enforcement is made necessary by a material breach of this Agreement by Seller.

Buyer's Obligation at Closing

6.02. Buyer shall deliver to the Seller the shares described in section 1.03 hereof within the time set out therein. Buyer agrees to effect complete transition of the Assets listed in Exhibit “A” within 7 business days of Closing.

  

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Use of Name

6.03. Seller agrees that, after the Closing Date, it will not use or employ in any manner, directly or indirectly, the name of the Business or any variation of the name except for purposes of designating prior ownership.

Financial Statements

6.04. The Seller has provided to the Buyer the financial statements for the Business as of and for the periods ended December 31, 2010 and June 20, 2011 (the “Financial Statements”), which are attached hereto as Exhibit “C”. The Financial Statements, books of account and other financial records of the Business are in all material respects complete and correct and are maintained in accordance with good business and accounting practices. Such Financial Statements may be audited by an independent registered public accountant satisfactory to the Buyer at the Buyer’s expense, and full access to all supporting documents including but not limited to: bank statements, general ledgers, contracts, cash receipts and disbursement records and supporting invoices as shall be made available from Seller to Buyer to complete in the audit within 72 days of the Closing Date, as required by the rules and regulations of the Securities and Exchange Commission of the United States of America.

Employment and Non-Competition

6.05. The Seller will enter into an independent contractor agreement (“Employment Agreement”) with the Buyer, within fifteen (15) days of the Closing Date, which agreement will include, but not be limited to, the following:

(a) The term of the Employment Agreement will be no less than one (1) year.

(b) Seller will be compensated in the amount of fifteen thousand ($15,000) US Dollars per month, plus a bonus structure to be agreed upon by the parties.

(c)  Seller will contribute approximately 75% of his time for rendering services to Buyer under such Employment Agreement.

6.06.  Under such Employment Agreement, the Seller will retain all rights and interests to his personal brand and intellectual property including, but not limited to, the following:

	
  

	
(a)

	
Seller’s name, image and voice;

	
  

	
(b)

	
All trademarks, copyrights and goodwill associated with Seller’s personal brand.

  

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Confidentiality

6.07. The Seller shall treat confidentially and not disclose, and shall cause the Seller’s agents, directors, officers, employees, representatives, consultants and advisers (the “Seller’ Representatives”) to treat confidentially and not disclose any Confidential Information (as defined herein) unless required by law. The Seller may disclose any of the Confidential Information only to those of the Seller’s Representatives who are authorized by the Buyer and need to know such Confidential Information for the successful operation of the Business. The Seller shall inform the Seller’ Representatives of the confidential nature of such Confidential Information.  The Seller shall be responsible for any breach of this provision by any of the Seller Representatives. The Seller shall not use, and shall cause the Seller Representatives not to use, the Confidential Information for any purpose other than the successful operation of the Business. The Seller shall not use the Confidential Information in any way that is, directly or indirectly, detrimental to the Business or the Buyer. The Seller acknowledge and agrees that the Buyer shall be entitled to injunctive relief to prevent breaches of this provision and to specific performance of the terms and conditions of this provision in addition to any other remedy to which the Buyer may be entitled at law or in equity. In this section, “Confidential Information” means all information of a confidential or proprietary nature, in whatever form communicated or maintained, of or relating to the Business.

 

ARTICLE 7 GENERAL PROVISIONS

Notices

7.01. All notices that are required or that may be given pursuant to the terms of this Agreement shall be in writing and shall be sufficient in all respects if given in writing and delivered personally or by registered or certified mail, return receipt requested, postage prepaid as follows:

If to Seller: Amish Shah, 548 Market Street, Suite 57149, San Francisco, CA 92104

If to Buyer: Gordon McDougall, CEO, Bitzio Holdings, Inc., 548 Market Street, Suite 18224, San Francisco, California, 94104

Assignment of Agreement

7.02. This Agreement shall be binding on and inure to the benefit of the parties to this Agreement and their respective successors and permitted assigns. This Agreement may not be assigned by any other party without the written consent of all parties and any attempt to make an assignment without consent is void.

7.03. Notwithstanding section 7.02 hereof, the Buyer may dispose of all or any part of its interest in and to this Agreement, the Business or the Assets to its parent company, Bitzio, Inc., or a majority-owned subsidiary of Bitzio, Inc. (the “Permitted Assignee”) provided that the Permitted Assignee shall, prior to and as a condition precedent to such disposition, deliver to the Seller its covenant with and to the Seller that to the extent of the disposition, the Permitted Assignee agrees to be bound by the terms and conditions of this Agreement as if it had been an original party hereto.

  

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Governing Law and Forum

7.04. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada. Subject to the binding arbitration provisions of this Agreement, each party hereby agrees that federal and state courts located in Las Vegas, Nevada, shall have in personam jurisdiction and venue with respect to such party, and each party hereby submits to the in personam jurisdiction and venue of such courts and waives any objection based on inconvenient forum.

Amendments; Waiver

7.05. This Agreement may be amended only in writing by the mutual consent of all of the parties, evidenced by all necessary and proper authority. No waiver of any provision of this Agreement shall arise from any action or inaction of any party, except an instrument in writing expressly waiving the provision executed by the party entitled to the benefit of the provision.

Entire Agreement

7.06. This Agreement, together with any documents and exhibits given or delivered pursuant to this Agreement, constitutes the entire agreement between the parties to this Agreement. No party shall be bound by any communications between them on the subject matter of this Agreement unless the communication is (a) in writing, (b) bears a date contemporaneous with or subsequent to the date of this Agreement, and (c) is agreed to by all parties to this Agreement. On execution of this Agreement, all prior agreements or understandings between the parties shall be null and void.

Reliance Upon Representations and Warranties

7.07. The parties mutually agree that, notwithstanding any right of Buyer to fully investigate the affairs of the Business and notwithstanding any knowledge of facts determined or determinable by Buyer pursuant to the investigation or right to investigate, Buyer may fully rely upon the material representations, warranties, and covenants made to Buyer in this Agreement and on the accuracy of any document, certificate, or exhibit given or delivered to Buyer pursuant to this Agreement.

Dispute Resolution

7.08. Any conflicts, disputes or controversies arising out of or relating to this Agreement shall be settled by expedited, binding arbitration conducted in Las Vegas, Nevada, under the Commercial Arbitration Rules of the American Arbitration Association (“AAA”) then in effect and in accordance with such rules. The parties shall mutually agree to one arbitrator within thirty (30) days from a panel of arbitrators knowledgeable and experienced in Internet-based commercial transactions.  In the event that the parties cannot agree upon an arbitrator, the parties agree to use three (3) arbitrators. In accordance with said rules, each party shall each have the right to select one (1) arbitrator; and the two selected arbitrators shall select the third arbitrator. The arbitrators shall, by majority vote, set a limited time period and establish procedures designed to reduce the cost and time for discovery while allowing the parties an adequate opportunity to discover relevant information regarding the subject matter of the dispute. A majority of the arbitrators shall rule upon motions to compel or limit discovery and shall have the authority to impose sanctions, including attorney’s fees and costs, should such majority determine that discovery was sought without substantial justification or that discovery was refused or objected to without substantial justification.  The arbitrators shall render their decision in writing within sixty (60) days of the commencement of the arbitration proceeding.  The decision of a majority of the arbitrators shall be final and binding on the parties.  Judgment upon any award rendered by the arbitrators may be entered in any court having jurisdiction.  Arbitration fees and costs shall be split equally, and the parties are solely responsible for their respective lawyer fees.

  

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Force Majeure

 

7.09. Neither party shall be liable for failure to perform any of its obligations under this Agreement during any period in which such party cannot perform due to fire, earthquake, flood, or other natural disaster, epidemic, explosion, casualty, war, terrorism, embargo, riot, civil disturbance, act of public enemy, act of God, or the intervention of any government authority, or similar cause beyond either party’s control, and provided further that the other party may terminate this Agreement if such force majeure condition has continued for a period of thirty (30) consecutive days.

 

Headings

 

7.10. The section and other headings contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement. All references to this Agreement and the words “herein”, “hereof”, “hereto” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Section or other subdivision.  This Agreement shall be interpreted in accordance with the plain meaning of its terms and not strictly for or against any party hereto or the drafter(s) of this Agreement.

 

Counterparts

7.11. This Agreement may be signed in counterparts which, together, shall constitute one and the same agreement.  Delivery of an executed counterpart of a signature page to this Agreement by facsimile or other electronic means (e.g., electronic mail or PDF) shall be effective as delivery of a manually executed counterpart to Agreement.

We understand and agree with the terms and conditions of this Agreement and sign our names with the intent to be legally bound by the Agreement.

BUYER:

	
/s/ Gordon McDougall

	  	
July 13, 2011

	 
	
Gordon McDougall, CEO

	  	
Date

	 
	
Bitzio Holdings, Inc.

	
  

	  	 

SELLER:

	
/s/ Amish Shah

	  	
July 13, 2011

	 
	
Amish Shah, Owner

	
  

	
Date

	 

  

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EXHIBIT "A"

THE ASSETS

	
  

	
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All management interests in and to Bitzio Corp. , a California Corporation.

	
  

	
·

	
Domain ownership and registration for Bitzio.com.

	
  

	
·

	
Website hosting account for Bitzio.com.

	
  

	
·

	
All 163 current applications (and any others that may be added before closing) source code files and intellectual property, including sole ownership of the copyrights where applicable.  As of July 6, 2011 the current applications are:

1.   Amazing Hotel Deals, Tips, Pics and More!

2.   Taylor Swift Lyrics, Music and Videos

3.   Hot New Movies, Trailers and More!

4.   Home Tips, Prices and News

5.   Michael Jackson Lyrics, Tunes and Videos

6.   Schooling Tips, Lessons and More

7.   Actors and Artists Hub

8.   The Beatles Lyric Central

9.   Super CarBuddy - Find Deals and Tips About Cars

10. CreditSavior - Credit tips and credit-repair tracker

11. Bob Marley Lyrics, Photos and Videos

12. Cheap Flights, Deals, Coupons and More!

13.  Hotel Deals, Prices, News, Pics and More!

14.  Kid Rock Lyrics, Photos and Videos

15.  Film School Photos, Videos and Lessons

16.  Ultimate Software and Web 2.0 Buzz

17.  Auto Insurance Deals, Tips, Tools and More

18.  Rental Home Hub - Deals and Tips!

19.  The Traveling App - Never Travel Without It!

20.  Editing Times - Know Everything about Editing!

21.  Mortgage Toolshop - Rate News, Loan Calculator and More!

22.  Eminem: Lyrics, Pics, Videos, News

23.  Katy Perry: Lyrics Pics, Videos, News

24.  Loan Calculator Central

25.  Mortgage Times

26.  Flight Deals, Tips and More

27.  Computer Ratings, Reviews, News and Deals!

28.  Snoop Dogg: Lyrics, Pics, Videos & News

29.  Los Angeles City Guide

30.  Jay Z - Lyrics, Pics, Videos & More

31.  Extended Stay Vacation Guide

32.  Home Insurance Central

33.  Travel Insurance Buddy

34.  Best Car Deal List

  

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35.  Debt Relief Checklist

36.  Victoria's Interior Decorating and Furniture Deals

37.  Chicago City Guide

38.  Shopping Pal (Save Big Money)

39.  Bruno Mars Central

40.  Rihanna Lyrics and Music

41.  Usher Lyrics, Videos & Pics

42.  Kanye West Lyrics and Photos

43.  Laptop Ratings, Reviews and Deals

44.  Grand Theft Auto Guide + Cheat

45.  Grad School Planner

46.  College Planner

47.  Law School Study Guide

48.  Halo 3 Guide + Cheats

49.  Black Friday Deals

50.  Medical School Study Guide

51.  Diabetes Help

52.  Bed Bugs Help

53.  Lyme Disease Help

54.  New York City Guide

55.  Call Of Duty: Black Ops - Walk Through + Cheats

56.  Miami City Guide

57.  Las Vegas CIty Guide

58.  Paris City Guide

59.  London City Guide

60.  New Years Eve Party Guide

61.  Christmas Deals and Steals

62.  Super Meat Boy Walkthrough & Cheats

63.  WWE Fans: Pics, Vids, News & More

64.  UFC Fans: Pics, Vids, News & More

65.  Teeth Care: Healthy Teeth & Great Smiles

66.  Alicia Keys Lyrics, Pics, Videos & News

67.  Chris Brown Lyrics, Pics, Vids & News

68.  Mothers Day Guide & Tips

69.  Valentine's Day Ultimate Ideas

70.  Fathers Day Guide & Tips

71.  Thanksgiving Guide & Recipes

72.  Herpes Help & Support

73.  Natural Wart Removal

74.  Rotator Cuff Help

75.  Mariah Carey Lyrics, Pics & Videos

76.  Lil Wayne Lyrics, Pics & Videos

77.  Trey Songz Lyrics, Pics & Vids

78.  Justin Bieber Lyrics, Pics & Videos

79.  Notre Dame Football

80.  Oregon Ducks Football App (TM)

  

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81.  Boise St Football

82.  Los Angeles Lakers. (Period)

83.  Auburn Tigers Football

84.  Dallas Cowboys Football

85.  The Simpsons

86.  Family Guy

87.  The Holy Bible

88.  Sex Tips

89.  Drugs

90.  TCU Football

91.  New York Yankees

92.  Nelly Lyrics, Pics & Videos

93.  Flo Rida Lyrics, Pics & Videos

94.  Sleeping Help

95.  Yoga App

96.  Hypnosis 101

97.  Positive Thinking 101

98.  Daily Exercise App

99.  The Official Pug App (TM)

100.  Cute Dog Pictures & More Dogs

101.  Tattoo Designs

102.  Pink Lyrics, Pics & Videos

103.  Taio Cruz Lyrics, Pics, Videos & News

104.  Rick Ross: Lyrics, Pics, Videos & News

105.  Cute Overload: Funny Cat Pictures!

106.  Drake Lyrics, Pics, Vids & News

107.  Fresno St Football.

108.  Linkin Park: Lyrics, Pics, Vids & News

109.  Godsmack Lyrics, Pics, Videos & News

110.  Jimmy Eat World Lyrics, Pics, Videos & News

111.  Kylie Minogue Lyrics, Pics, Videos & News

112.  Like a G6

113.  The Grammy's: News, Pics & Vids

114.  The Oscars! News, Pics & Vids

115.  Solar Energy Tips And DIY Guide

116.  Electric Cars: News, Pics & Vids

117.  Weight Loss Tips that Really Work

118.  Money Making Strategies That Really Work

119.  Best Makeup Guide: Tips, Tricks and Reviews

120.  Women's Health Tips

121.  ScreamFree Parenting Tips

122.  Pocket Stylist: Best Fashion Guide App

123.  The Only Astrology App You'll Ever Need

124.  Hotels

125.  Cars

126.  The Wine Bible

  

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127.  Official CPA Exam Guide

128.  The Beer App

129.  The Official Fly Fishing App

130.  Gardening For Noobies

131.  Official Surf App

132.  Official Cheese Guide

133.  Games

134.  Lose Weight

135.  Gran Turismo App

136.  Elvis Presley Lyric Portal

137.  yoga App

138.  Madonna Lyric World

139.  Led Zeppelin Music Zone

140.  Queen Lyric World

141.  AC/DC Music World

142.  Bee Gees Lyric Zone

143.  Celine Dion Lyric Zone

144.  Elton John Lyric Zone

145.  Enrique Iglesias Music World

146.  Mariah Carey Music Zone

147.  Nana Mouskouri Music Portal

148.  Pink Floyd Music World

149.  The Rolling Stones Music Zone

150.  Aerosmith Lyric Zone

151.  Backstreet Boys Music Center

152.  Barbra Streisand Music Zone

153.  Barry White Lyric Place

154.  Billy Joel Music Place

155.  Boney M. Music Zone

156.  Bon Jovi Music Place

157.  Britney Spears Music World

158.  Burce Springsteen Music World

159.  Female Orgasm Tips

160.  Beautiful Photos

161.  LEGO Builders Guide!

162.  The Survival App

163.  Bryan Adams Music Center

	
  

	
·

	
Pipeline of current applications in any stage of development, including but not limited to initial ideation.

All trademarks, service marks, names, logos, images and copy used or created for the Business, including but not limited to the name “Bitzio”.

  

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EXHIBIT "B"

DUTIES, OBLIGATIONS, AND LIABILITIES ASSUMED

1. Domain registration for Bitzio.com.

2. Website hosting for Bitzio.com.

 

  

16Exhibit 10.3

	
DigiSpace Holdings, Inc.

	
548 Market Street, Suite 18224

	
San Francisco, California, 94104

	
Telephone (604) 313-9344

August 3, 2011

Mr. Amish Shah, Mr. Jose Rivera

and DigiSpace Solutions LLC

2534 State Street, Suite 436,

San Diego, California 92101

Dear Amish and Jose:

Re: Proposed acquisition of DigiSpace Solutions, LLC by DigiSpace Holdings, Inc.

This letter of intent confirms our recent discussions with respect to the proposed acquisition (the “Acquisition”) from Amish Shah and Jose Rivera (collectively, the “Vendors”) of all the Vendors’ shares of DigiSpace Solutions, LLC (“DigiSpace Solutions”), a privately held California limited liability company having its principal offices in San Diego, California by DigiSpace Holdings, Inc. (the “Purchaser”), a Nevada corporation having an office in San Francisco, California, in exchange for the consideration and pursuant to the terms and conditions set out in this letter of intent. The parties acknowledge that the Purchaser is a wholly owned subsidiary of Bitzio, Inc., a Nevada corporation whose common stock is quoted for trading on the OTC Bulletin Board, shares of which corporation are intended to be given as consideration for the Acquisition. It has been the objective of our discussions to execute and carry out as soon as practical a definitive agreement (the “Agreement”) between the Purchaser and the Vendors that, among other things, would provide for the various matters set out below.

	
1.

	
Acquisition.

	
1.01

	
The Purchaser will acquire all of the issued and outstanding membership interests of DigiSpace Solutions on or before August 22, 2011 (the “Closing Date”).  The parties will use their best efforts to accelerate the closing date but agree that the Closing Date will be no later than August 22, 2010. It is contemplated that the Acquisition will be accomplished by a triangular merger or other form as depicted in the Agreement.  Following the Acquisition, DigiSpace Solutions will become the wholly owned subsidiary of the Purchaser.

	
1.02

	
Upon execution of this letter of intent and the parties agreeing to the terms set forth herein, the parties will take all reasonable actions to facilitate the proposed transaction and cause to be prepared the Agreement and all other necessary documentation required for consummation of the transactions contemplated in this letter of intent.  The parties agree that the Agreement will be entered as soon as practical but no later than August 22, 2011.

  

 

  

	
1.03

	
It is the intent of the parties that the Acquisition and the consummation of the transactions contemplated in this letter of intent will be subject only to the fulfillment of the terms and conditions set forth herein and in the Agreement.

	
2.

	
Consideration.

	
2.01

	
As consideration for the Acquisition and the representations, warranties and covenants of the Vendors as set out in this letter of intent, the Purchaser will pay to the Vendors:

	
  

	
a)

	
Two Hundred Thousand U.S. Dollars ($200,000.00) cash payable in twelve (12) monthly installments each in the amount of Sixteen Thousand Six Hundred Sixty-Six U.S. Dollars and Sixty-Seven Cents ($16,666.67) commencing on or before the Closing Date, and

	
  

	
b)

	
on or before the date that is ten business days following the Closing Date, options (the “Options”) to purchase 1,000,000 shares (the “Shares”) of the common stock of Bitzio, Inc. at a price of $0.45 per such Share until the date that is five (5) years following the Closing Date.

	
2.02

	
All Options and Shares will be deemed “restricted securities” as defined by Rule 144 of the Securities Act of 1933, as amended.

	
3.

	
Consents.

	
3.01

	
Upon execution of this letter of intent, the Purchaser will immediately take the necessary and appropriate actions to authorize the Acquisition, and the Vendors will cause DigiSpace Solutions and all of its members to take the necessary and appropriate actions immediately to consummate the Acquisition, including shareholder and member approval if required.  Further, the Purchaser and Vendors will each take whatever other actions reasonably necessary by each respective party in order to carry out the transactions anticipated in this letter of intent.

	
4.

	
Representations of the Purchaser.

	
4.01

	
The Purchaser hereby represents and warrants to the Vendors as follows:

	
  

	
a)

	
The Purchaser is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada and has the authority to execute this letter of intent and to be bound by the terms and conditions hereof and to enter into and be bound by the Agreement.

	
  

	
b)

	
The Purchaser will obtain prior to the Closing Date, all necessary corporate actions required for the execution of this letter of intent.

  

 

  

	
  

	
c)

	
Prior to the Closing Date and execution of the Agreement, the Purchaser will not enter into any material contract or agreement with any other person or entity that may affect the terms or materiality of this letter of intent without the express written consent of the Vendors.

	
  

	
d)

	
The Purchaser will provide such other representations and warranties in the Agreement as are customary in a transaction of this nature.

	
5.

	
Representations of the Vendors.

	
5.01

	
The Vendors and DigiSpace Solutions hereby represent and warrant to the Purchaser as follows:

	
  

	
a)

	
DigiSpace Solutions is a limited liability company duly organized, validly existing and in good standing under the laws of the State of California and it and the Vendors have the authority to execute this letter of intent and to be bound by the terms and conditions hereof and to enter into and be bound by the Agreement.

	
  

	
b)

	
The Vendors and DigiSpace Solutions will obtain prior to the Closing Date, all necessary actions required for the execution of this letter of intent.

	
  

	
c)

	
Prior to the Closing Date and the execution of the Agreement, the Vendors and DigiSpace Solutions will not enter into any material contract or agreement with any other person or entity that may affect DigiSpace Solutions or the terms or materiality of this letter of intent without the express written consent of the Purchaser.

	
  

	
d)

	
DigiSpace Solutions has good and marketable title to all assets, properties, technology, subsidiaries, intellectual property, contracts and business arrangements as set forth in its financial statements and other documents provided to or to be provided to the Purchaser and that any and all liens, mortgages or encumbrances against said assets or other debts and liabilities are duly and completely disclosed in writing to the Purchaser.

	
  

	
e)

	
The Vendors are the sole members of record and sole beneficial owners of DigiSpace Solutions and no person, firm or corporation other than the Purchaser has any agreement or right capable of becoming an agreement for the acquisition of an interest in DigiSpace Solutions, and to the Vendors’ knowledge there is no basis for and there are no actions, suits, judgements, investigations or proceedings outstanding or pending or threatened, or charges, liens, encumbrances or obligations which might affect DigiSpace Solutions or the Vendors’ interests in DigiSpace Solutions;

	
  

	
f)

	
The Vendors and DigiSpace Solutions represent that all representations made in its business plan or other written documents, including representations on the Internet, regarding DigiSpace Solutions’ business, results of operations, financial position, technology, contracts and capabilities are complete and accurate in all material respects.

  

 

  

	
  

	
g)

	
The unaudited financial statements of DigiSpace Solutions as of and for the periods ended December 31, 2009, December 31, 2010 and April 30, 2011 (the “Financial Statements”) are attached hereto as Schedule “A.”  The Financial Statements, books of account and other financial records of DigiSpace Solutions are in all material respects complete and correct and are maintained in accordance with good business and accounting practices, except for the absence of the liabilities of DigiSpace Solutions listed in Schedule “B” attached hereto. The Vendors acknowledge that a minimum of two years of audited financial information will be required to be filed with the Securities and Exchange Commission within 71 days of the Closing Date.

	
  

	
h)

	
The Vendors have advised the Purchaser of all of the material information relating to DigiSpace Solutions of which the Vendors have knowledge, and the Vendors are not entering into this letter of intent as a result of material adverse changes not previously disclosed to the Purchaser.

	
  

	
i)

	
On or before the Closing Date, DigiSpace Solutions will have sold or transferred all of its automobiles. Except as provided for in this section, since April 30, 2011 DigiSpace Solutions has not disposed of and will not dispose of any assets of DigiSpace Solutions outside of the ordinary course of business.

	
  

	
j)

	
As of the Closing Date, DigiSpace will not have any liabilities, other than:

	
  

	
(i)

	
liabilities fully and adequately reflected in the Financial Statements as of and for the period ended April 30, 2011 and which liabilities will not exceed $10,000.00; and

	
  

	
(ii)

	
liabilities payable to the creditors set out in Schedule “B” attached hereto and which liabilities will not exceed the amounts set opposite each such creditor’s name.

To the Vendors’ knowledge, there is no circumstance, condition, event or arrangement which may give rise to any liabilities not in the ordinary course of business.

	
  

	
k)

	
The Vendors and DigiSpace Solutions have filed all tax, governmental and related forms and reports (or extensions thereof) due or required to be filed in respect of the year ended December 31, 2010 and all taxes and other amounts payable have been paid in full.

	
  

	
l)

	
The Vendors and DigiSpace Solutions will provide such other representations and warranties in the Agreement as are customary in a transaction of this nature.

  

 

  

	
6.

	
Due Diligence.

	
6.01

	
From the date hereof, the Vendors will make available to the Purchaser and its agents for review at the Purchaser’s expense, financial statements, books, records and other documents relating to DigiSpace Solutions as the Purchaser and its agents may reasonably request.  The Purchaser and its agents will have the opportunity to meet with DigiSpace Solutions’ accountants and key personnel to discuss the financial and business conditions of DigiSpace Solutions and to make whatever further independent investigation the Purchaser deems necessary and prudent. The Vendors will cooperate with the Purchaser and its agents in providing such documentation and information as the Purchaser may request.  In the event that the transactions contemplated herein are not consummated, the Purchaser will promptly return all financial statements, books, records and other corporate documents to the Vendors.

	
6.02

	
On or before the Closing Date, the Purchaser may, at its sole option, elect to not complete the transactions contemplated herein based upon its investigation. If the Purchaser so elects, the Vendors shall refund any monies paid to the Vendors hereunder and the obligations of the parties in this letter of intent shall terminate.

	
6.03

	
The Purchaser may, at its expense, cause the Financial Statements to be audited by an independent registered public accountant satisfactory to the Purchaser within 71 days following the Closing Date. The Vendors will cooperate with the Purchaser and its agents in providing such documentation and information as the Purchaser and its agents may request to carry out such audits.

	
7.

	
Confidentiality.

	
7.01

	
This letter of intent, the Agreement and the terms, conditions and transactions contemplated by such documents, are to be kept confidential by the parties hereto and will not be disclosed to the public or any other party except for any requisite filings to be made with the Securities and Exchange Commission and disclosures to the Purchaser’s stockholders, which may be required, and by an appropriate public press release to be made only by and upon the approval of the Purchaser.

	
8.

	
Non-Competition

	
8.01

	
Except as provided in section 8.02, neither of the Vendors shall, directly or indirectly, for a period of 18 months after the Closing Date:

	
  

	
a)

	
be a director, officer, consultant, employee or controlling owner of any corporation or other entity that owns or will own business interests with products or services which are the same or substantially similar to, or in competition with, those of DigiSpace Solutions or any of its affiliates at the Closing Date without the prior written consent of the Purchaser;

  

 

  

	
  

	
b)

	
directly or indirectly contact or solicit any customers of DigiSpace Solutions or any of its affiliates for the purpose of selling to those customers any products or services which are the same as or substantially similar to, or in competition with, those of DigiSpace Solutions or any of its affiliates at the Closing Date; or

	
  

	
c)

	
directly or indirectly persuade any officers, employees or contractors of DigiSpace Solutions or any of its affiliates to resign or offer or cause to be offered employment (on the Vendor’s own behalf or on behalf of a third party) to any such officer, employee or contractor.

	
8.02

	
Notwithstanding section 8.01, DigiSpace Solutions will grant to the Vendors on the Closing Date a non-exclusive and non-transferrable license to use the software, and underlying technology, owned by DigiSpace Solutions (hereinafter “Software”) as of the Closing Date.

	
8.03

	
Notwithstanding section 8.01, DigiSpace Solutions will grant to Jose Rivera (“Rivera”) a non-exclusive and non-transferable license to use the mailing list data (the mailing list data and the Software to be collectively referred to as “licensed materials”) owned by DigiSpace Solutions as of the Closing Date.  Rivera may use all or a portion of such licensed materials to offer services which are the same or substantially similar to, or in competition with, those of DigiSpace Solutions. Rivera acknowledges and agrees that any such services or products will be offered to end users under limited run time licenses for use explicitly in the form designed by Rivera.  Should Rivera wish to sell or transfer any portion of the Software, Rivera agrees to obtain written permission from, and may be required to provide remuneration to, DigiSpace Solutions or its affiliates as set forth in the finalized Agreement.

	
8.04

	
Rivera acknowledges and agrees that aspects of the licensed materials, including the data and specific design and structure of individual programs comprising the licensed materials, constitute trade secrets or copyrighted material of DigiSpace Solutions. Rivera agrees not to disclose, provide or otherwise make available such trade secrets or copyrighted material in any form to any third party without the prior written consent of DigiSpace Solutions. Rivera agrees to implement reasonable security measures to protect such trade secrets and copyrighted material. Title to the licensed materials and documentation shall remain solely with DigiSpace Solutions. The licensed materials are provided as is, DigiSpace Solutions provides no warranty that the licensed materials are free of defects in materials or workmanship, and DigiSpace Solutions will not update or repair the licensed materials. Rivera acknowledges and agrees that DigiSpace Solutions is not liable to Rivera for the loss of, or damage to, data; special, incidental, exemplary or indirect damages, or for any economic consequential damages; or lost profits, business, revenue, goodwill, or anticipated savings.

	
8.05

	
Notwithstanding, section 8.01, the Purchaser and Bitzio, Inc. acknowledge that Amish Shah (“Shah”) uses and will continue to use his personal mailing list which may contain data that is the same, or substantially similar to, the mailing list data owned by DigiSpace Solutions as of the Closing Date.  Unless otherwise agreed to by the parties, Shah agrees to refrain from utilizing his personal mailing list to offer services which are the same or in direct competition with, those of DigiSpace Solutions and/or Bitzio, Inc.

  

 

  

	
8.06

	
DigiSpace Solutions will permit the Vendors to utilize their existing “digispace.com” email addresses for so long as they are employees of, or contractors to, DigiSpace Solutions or its affiliates.

	
8.07

	
The parties acknowledge and agree that the restrictions set out in this article 8 are reasonable under the circumstances to protect DigiSpace Solutions’ legitimate business interests and do not oppressively restrain the Vendors. The Vendors acknowledge that a breach by the Vendors of this article 8 may cause irreparable harm to DigiSpace Solutions; therefore, the Purchaser shall be entitled, in addition to any other right or remedy it may have at law, to seek and obtain injunctive relief against the Vendors.

	
8.08

	
The parties agree that the restrictions set forth and incorporated in this article 8 are reasonable in order to protect the Purchaser and DigiSpace Solutions.  If any such restrictions shall be deemed to be unenforceable by reason of the extent, duration, geographical scope or other provisions, then the parties contemplate that the court or arbitrator shall reduce such extent, duration, geographical scope or other provisions and enforce this agreement to the fullest extent in its reduced form for all purposes.

	
9.

	
General Provisions.

	
9.01

	
This letter of intent and the subsequent Agreement related to the Acquisition will be construed, and the legal relations between the parties determined, in accordance with the laws of the State of Nevada, thereby precluding any choice of law rules which may direct the application of the laws of any other jurisdiction.

	
9.02

	
Each party agrees that they will pay their own out-of-pocket expenses incurred in connection with this letter of intent and the subsequent Agreement.

	
9.03

	
This letter of intent will not be assignable or transferable by either party hereto.

	
9.04

	
Notwithstanding section 9.03 hereof, the Purchaser may dispose of all or any part of its interest in and to this letter of intent to its parent company, Bitzio, Inc., or a majority-owned subsidiary of Bitzio, Inc. (the “Permitted Assignee”) provided that the Permitted Assignee shall, prior to and as a condition precedent to such disposition, deliver to the Vendors its covenant with and to the Vendors that to the extent of the disposition, the Permitted Assignee agrees to be bound by the terms and conditions of this letter of intent as if it had been an original party hereto.

	
9.05

	
This letter of intent may be amended in writing and only with the written consent of all parties hereto.

  

 

  

	
9.06

	
This letter of intent may be executed in one or more counterparts, each of which will be deemed an original and together will constitute one document. It is further agreed that the delivery by facsimile, e-mail or other recognized electronic medium of an executed counterpart of this letter will be deemed to be an original and will have the full force and effect of an original executed copy.

	
9.07

	
This letter of intent constitutes the entire agreement between the parties and supersedes all inconsistent prior agreements and understandings, oral or written, by and between any of the parties with respect to the subject matter of this letter of intent.

If the foregoing accurately reflects our discussion and is in accordance with the understandings of the Purchaser, the Vendors and DigiSpace Solutions, please so indicate by signing this letter of intent and returning it to us at your earliest convenience.  Execution by both parties will constitute a binding agreement between the parties in accordance with the terms hereof.

Yours truly,

DIGISPACE HOLDINGS, INC.

	
/s/ Gordon C. McDougall

	  
	
per Gordon C. McDougall, CEO

	  

The foregoing letter of intent is accepted, approved and agreed to this 3rd day of August, 2011 by the undersigned:

	
/s/ Amish Shah

	  
	
Amish Shah

	  
	  	  
	
/s/ Jose Rivera

	  
	
Jose Rivera

	  

	
DIGISPACE SOLUTIONS INC.

	  
	  	  
	
/s/ Jose Rivera

	  
	
Authorized Signatory

	  

  

 

  

Schedule “B”

Liabilities of DigiSpace Solutions Not Included

in the Financial Statements

	
Description

	 	
Amount Payable

	 
	
Joint venture commissions payable

	 	$	250,000.00	 
	
Bank of America business loan payable

	 	 	40,000.00	 
	
yMultimedia affiliate commissions payable

	 	 	80,000.00	 
	
Microsoft Corporation lawsuit settlement payable

	 	 	120,000.00	 
	
Nathanial Broughton consulting payable

	 	 	75,000.00	 
	
Total

	 	$	565,000.00

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