Document:

f8k071113ex10i_freebutton.htm

Exhibit 10.1

 

ASSET AND BUSINESS ACQUISITION AGREEMENT

 

This ASSET AND BUSINESS ACQUISITION AGREEMENT (this "AGREEMENT") is entered into as of July 11, 2013 and comes into effect on the same day by and between the following two Parties:

 

	
(1)  

	
FREEBUTTON, INC., a Nevada corporation; and

	
(2)  

	
MEDIARHYTHM GROUP, INC., a **** corporation.

 

WHEREAS, MEDIARHYTHM owns a marketing and advertising business, and related trademarks and website;

 

WHEREAS, MEDIARHYTHM has the intention to transfer the assets and business to FREEBUTTON, and FREEBUTTON has the intention to acquire the same from MEDIARHYTHM.

 

NOW, THEREFORE, upon friendly consultation, the Parties hereby enter into this Agreement as follows:

 

	
1.  

	
TRANSFER OF THE ASSETS AND BUSINESS CONTRACTS

 

	
    1.1.  

	
In accordance with the terms and conditions herein, MEDIARHYTHM agrees to transfer to FREEBUTTON all assets in relation to MEDIARHYTHM’s business.

 

	
2.  

	
PURCHASE PRICE AND ALLOCATION.

 

	
2.1.  

	
Purchase Price. The purchase price for the Assets to be purchased hereunder shall be Four Hundred and Twenty Thousand and 00/100 Dollars ($420,000) (“Purchase Price”).

 

	
2.2.  

	
Allocation. The Purchase Price shall be allocated among the Assets, including Accounts Receivable, in accordance with Schedule 1(a). MEDIARHYTHM and FREEBUTTON jointly shall complete and separately file Form 8594 with their respective federal income tax returns for the tax year in which the Closing Date occurs in accordance with such allocation and the IRS guidelines, and neither Party shall, without the written consent of the other, take a position on any tax return or before any governmental agency charged with the collection of any such tax, or in judicial proceeding, that is in any manner inconsistent with the terms of such allocation.

 

	
3.  

	
METHOD OF PAYMENT.

 

	
3.1.  

	
Upon execution of this Agreement, the Purchase  Price shall be paid in twenty-four (24) equal monthly installments commencing on the first day of August, 2013 of Seventeen Thousand Five Hundred and 00/100 Dollars ($17,500) each and a final payment on the first day of August, 2015 of Seventeen Thousand Five Hundred and 00/100 Dollars ($17,500) pursuant to the terms and conditions of a promissory note, attached hereto as Exhibit A, and made a part hereof (the “Note”). The Note shall bear no interest.

 

  

  

  

 

	
4.  

	
REPRESENTATIONS AND WARRANTIES

 

	
4.1.  

	
Each Party represents and warrants respectively to the other as follows:

 

	
4.1.1.  

	
Each Party is a company duly incorporated, has the capacity and power requisite for a company, and has taken all necessary actions for the execution and performance of this Agreement.

 

	
4.1.2.  

	
The performance of the transaction completed hereunder is not subject to the consent, approval or order of any governmental authorities or any other third parties, not is it subject to any conditions precedent as registration with, qualification verification by or document delivery to any governmental authorities or any other third parties.

 

	
5.  

	
GENERAL PROVISIONS

 

	
5.1.  

	
Costs. The Parties shall bear their respective costs incurred hereunder.

 

	
5.2.  

	
Counterparts This Agreement may be executed in two (2) or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together will constitute an integral party of this Agreement.

 

 

IN WITNESS HEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the date first hereinabove mentioned.

 

	 	FREEBUTTON, INC. 	 	 	MEDIARHYTHM	 
	 	 	 	 	 	 
	 By:	
/s/ James Edward Lynch, Jr.  

	 	 By: 	
/s/ James Edward Lynch, Jr. 

	 
	 	
James Lynch 

	 	 	
James Lynch

	 
	 Its: 	
CEO  

	 	 Its: 	
President    

	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 By:	 /s/ Dallas James Steinberger  	 	 	 	 
	 	Dallas Steinberger	 	 	 	 
	 Its: 	COO  	 	 	 	 

 

  

  

  

                                                                                    

EXHIBIT A

 

PROMISSORY NOTE

	
$420,000.00 

	
                                                                  San Diego, CA 

	
  

	
July 11, 2013

FOR VALUE RECEIVED, FreeButton, its successors and assigns (“Maker”), hereby promises to pay to the order of MediaRhythm (“Holder”), in immediately available funds, the sum of Four Hundred and Twenty Thousand and 00/100 Dollars ($420,000), payable in Twenty Four (24) equal monthly installments commencing on the first  day of August, 2013 of Seventeen Thousand and Five Hundred and 00/100 Dollars ($17,500) each and a final payment on the first day of August 2015 of Seventeen Thousand and Five Hundred and 00/100 Dollars ($17,500). This Note shall bear no interest. Installments under this Note shall be made in accordance with the amortization schedule attached hereto as Schedule 1, and made a part hereof.

 

	
1.  

	
Acceleration Upon Default. At the option of the Holder, this Note shall become immediately due and payable upon the occurrence of any of the following events of default:

 

	
a.  

	
The failure of Maker to make payment of the principal or interest due under this Note within ten (10) days after receipt by Maker of written notice from Holder that an installment is past due;

 

	
b.  

	
The insolvency of Maker, the appointment of a receiver of its assets, or the institution of any involuntary proceeding under any bankruptcy or insolvency law relating to the relief of debtor for the readjustment or relief of any indebtedness of Maker, whether as a reorganization, composition, extension or otherwise, which involuntary proceeding is not terminated, dismissed or concluded in a manner not adverse to Maker within ninety (90) days of the commencement of such proceeding; or

 

	
c.  

	
The filing by Maker of an application or an assignment for the benefit of creditors or for taking advantage of the same under any bankruptcy or insolvency law.

 

	
2.  

	
Prepayment. Maker shall have the right to prepay all or any portion of the principal balance due under this Note at anytime without premium or penalty. Except as set forth above, Holder shall not have any the right to require prepayment of the principal balance due under this Note.

 

	
3.  

	
Waiver. No delay or omission on the part of Holder in exercising any right hereunder shall operate as a waiver of such right or of any other right under this Note. A waiver of any right or remedy on one occasion shall not be construed as a waiver of any right or remedy on any future occasion.

 

	
4.  

	
Attorneys’ Fees. The Holder shall be entitled to collect all costs and reasonable attorneys’ fees incurred by Holder in enforcing his rights under this Note.

 

	
5.  

	
Notice. All notices, demands and requests given or required to be given by any party hereto to the other party shall be made in writing and shall be deemed to have been properly given, made or served only if sent by registered or certified mail, postage prepaid, addressed to the other party his or its last known address, or such other address as the parties shall give prior notice.

 

	
6.  

	
Negotiability. This Note is fully negotiable and may be assigned, transferred or set over by Holder or Maker.

 

	
7.  

	
Reference. Any reference herein to the Holder shall be deemed to include and apply to any subsequent holder of this Note. Any reference herein to the Maker shall be deemed to include and apply to every person now or hereafter liable upon this Note.

 

	
8.  

	
Jurisdiction. This Note shall be deemed to have been made under and shall be governed by the laws of the State of California in all respects, including matters of construction, validity and performance and none of its terms or provisions may be waived, altered, modified or amended except as Holder may consent thereto in writing duly signed for and on his behalf.

 

	
9.  

	
Right of Setoff. Maker shall be entitled to the right of setoff against any or part of any installment due Holder hereunder for any sums owing or hereafter becoming payable to Maker from or by Holder for any reason whatsoever in accordance with the Asset Purchase Agreement by and between Maker and Holder dated July __, 2013.

 

MAKER

 

By: s/ Dallas James Steinberger

 

Dallas Steinberger, Chief Operating Officer

 

  

  

  

Schedule 1A

 

Assets

 

The following Assets shall be included in the sale from Seller to Purchaser:

 

	
·  

	
All MediaRhythm accounts receivable: 

 

	
·  

	
MediaRhythm trademarks and website; 

 

	
·  

	
MediaRhythm intellectual property:THIS AGREEMENT made this 22 day of July, 2013.

 

B E T W E E N:

 

Brazo River Technologies, LLC

(hereinafter referred to as the "Vendor")

 

OF THE FIRST PART

 

- and -

 

Myriad Interative Media Inc

(hereinafter referred to as the "Purchaser")

 

OF THE SECOND PART.

 

WHEREAS the Vendor carries on a web
marketing business under the trade name "Brazo River Technologies." located at 6615 Sondra Drive, Dallas Texas (the "Business");

 

AND WHEREAS the Vendor has agreed to
sell and the Purchaser has agreed to purchase certain of the assets of the Business upon such terms and conditions as hereinafter
set out;

 

NOW THEREFORE THIS AGREEMENT WITNESSETH
that in consideration of the premises hereto and the covenants hereinafter contained and other good and valuable consideration
(the sufficiency and receipt of which is hereby acknowledged by all parties), the parties hereto agree as follows:

 

ARTICLE I – RECITALS

 

1.01 The recitals hereto are true and correct.

 

ARTICLE II – DEFINITIONS

 

2.01 In this Agreement, unless the context
otherwise requires, the following terms shall have the following meaning:

 

(a) "Agreement" means this agreement
and any schedules and attachments to this agreement, and the words "herein", "hereof", "hereunder",
and any similar words or expressions shall mean this Agreement;

 

(b) "Asset Purchase Price" means
the aggregate purchase price set forth in paragraph 4.01 hereof subject to adjustment as provided for in paragraph 4.03 hereof;

    	 

    	 

    

 

(c) "Business"
means the business of the Vendor described in the recitals hereto and carried out at the Leasehold Premises;

 

(d) "Closing Date" means the 1 day
of October, 2012 or such other date as may be mutually agreed upon in writing by the parties hereto;

 

(e) "Equipment" means all equipment,
leasehold improvements, furnishings and accessories of all kinds used in connection with the Business, including, without limiting
the generality of the foregoing, those listed in Schedule "A" attached hereto;

 

(f) "Goodwill" means the goodwill
of the Business, together with the exclusive right of the Purchaser to represent itself as carrying on the Business in continuation
of and in succession to the Vendor;

 

(g) "Inventory" means all useable
inventories of food products and other stock in trade owned by the Vendor and acquired for the purpose of the Business but
not yet consumed as of the Closing Date;

 

(h) "Leasehold Premises" means those
premises occupied by the Vendor municipally known as Unit No. *, * Street, Dallas, Texas and "Lease" means the lease
for the Leasehold Premises, dated the * day of *, 20** between * as Landlord and * as Tenant;

 

(i) "Purchased Assets" means the
aggregate of assets described in paragraph 3.01 hereof; and

 

(j) "Time of Closing" means the hour
of 3:00 o'clock in the afternoon on the Closing Date.

 

2.02 The insertion of headings in this Agreement
are for convenience of reference only and shall not affect the construction or interpretation hereof.

 

2.03 In this Agreement, where the context requires,
words importing the singular include the plural and vice versa and words importing gender include the masculine, feminine and neuter
genders.

 

2.04 This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware.

2.05 All dollar amounts referred to in this
Agreement are in Canadian funds.

 

ARTICLE III - PURCHASED ASSETS

 

3.01 Subject to the terms and conditions of
this Agreement, the Vendor agrees to sell to the Purchaser and the Purchaser agrees to purchase from the Vendor all of the following
assets:

    	2

    	 

    

 

(a) 100% Ownership Rights
to The MyMobilePoints Application

 

ARTICLE IV - ASSET PURCHASE PRICE

 

4.01 The aggregate purchase price for the Purchased
Assets is the sum of 7.5 Million Shares of the Purchaser’s previously authorized but issued common stock.

 

4.02 The Asset Purchase Price shall be payable
by the Purchaser to the Vendor as follows:

 

(a) a certificate in the sum of SEVEN MILLION
FIVE HUNDRED THOUSAND (7,500,000) Shares, made payable to Brazo River Technologies, LLC, shall be submitted at the time of closing
this Agreement.

 

(b) a further ONE MILLION SHARES (1,000,000)
Shares, made payable to Ticker Logix, Inc. for advisory services shall also be paid on the closing of this agreement.

 

4.03 The Vendor and the Purchaser hereby agree
that the Purchase Price is allocated among the Purchased Assets as follows:

 

(a) 100% Ownership Rights to The MyMobiPoints
Application:

 

(i) Source Code Delivery 7,000,000

(ii) MyMobiPoints Domain 500,000

    	3

    	 

    

 

ARTICLE V - CLOSING

 

5.01 The sale and purchase of the Purchased
Assets provided for in this Agreement shall be formally closed at a place to be mutually agreed upon by the parties’ solicitors
at the Time of Closing or such other time mutually agreed upon by the parties hereto.

 

ARTICLE VI - REPRESENTATIONS AND WARRANTIES

 

6.01 The Vendor represents and warrants to
the Purchaser and acknowledges, that the Purchaser is relying on such representations and warranties as follows:

 

(a) the Vendor is a resident of Canada within
the meaning of Section 116 of the Income Tax Act (Canada);

 

(b) the Purchased Assets are owned by the Vendor
as the beneficial owner thereof and, as at the Time of Closing, the Vendor shall have good and marketable title thereto free and
clear of any mortgages, liens, charges, pledges, claims or encumbrances of any nature and kind whatsoever;

 

(c) that no person or legal entity other than
the Purchaser has any agreement or option, right or privilege (whether by law, pre-emptive or contractual) capable of becoming
an agreement for the purchase of the Purchased Assets;

 

(d) there are no actions, suits or proceedings
pending or threatened against or affecting the Vendor in law or in equity, before any federal, provincial, municipal or other government
department, commission, board, agency or instrumentality, domestic or foreign, regarding title to or any claim for an interest
in the Purchased Assets;

 

(e) the Vendor holds all proper licenses, permits
and authorities as may be required by any government or software licensing authority having jurisdiction there over to carry on
the Business and all such licenses, permits and authorities are in good standing and undisputed;

 

(f) that the directors will not own, operate,
finance, be a partner, director or officer or have any interest, either directly or indirectly, in any similar type of business
to that of the Business for a period of five (5) years from the Closing Date;

 

(g) the Vendor will carry on the Business in
the ordinary course and in a good and reputable manner until the Closing Date;

 

(h) the Vendor does not have any information
or knowledge of any facts relating to the Purchased Assets of the Business which if known to the Purchaser might reasonably be
expected to deter the Purchaser from completing the transaction herein contemplated;

    	4

    	 

    

 

(i) that all taxes and other government levies
in connection with every aspect of the Business have been or shall be fully paid up to the Closing Date.

 

6.02 The Purchaser represents and warrants
to the Vendor, and acknowledges that the Vendor is relying on such representation and warranty as follows:

 

(a) that the Purchaser is a non-Canadian within
the meaning of the Investment Canada Act.

 

6.03 Unless waived in accordance with the provisions
of this Agreement, the parties hereto agree that notwithstanding the Closing of this transaction of purchase and sale of the Purchased
Assets contemplated herein, the representations and warranties contained in this Agreement shall survive Closing.

 

ARTICLE VII - CONDITIONS ON CLOSING

 

7.01 The Purchaser shall not be obliged to
complete the transaction herein provided for unless, at the Time of Closing, each of the following conditions shall have been satisfied,
it being understood that the said conditions are included for the exclusive benefit of the Purchaser and may be waived by the Purchaser
in whole or in part, in writing at any time; and the Vendor shall use his best efforts to ensure that such conditions are fulfilled
on or before the Time of Closing:

 

(a) the representations and warranties set
forth in paragraph 6.01 shall be true and correct in all material respects at the Time of Closing as if such representations and
warranties were made at the Time of Closing and a certificate, duly executed by the Vendor, evidencing same shall have been delivered
to the Purchaser on closing;

 

(b) all of the terms, covenants and agreements
set forth in this Agreement to be complied with or performed by the Vendor on or before the Time of Closing shall have been complied
with or performed by the Vendor on or before the Time of Closing;

 

(c) the Vendor shall deliver to the Purchaser
possession of the Purchased Assets;

 

(d) the Vendor shall deliver to the Purchaser
a duly executed Bill of Sale and such other assignments or title documents necessary to properly sell, transfer, assign and convey
the Purchased Assets to the Purchaser;

 

(e) the purchase and sale of the Purchased
Assets shall be made in compliance with the Retail Sales Tax Act of Ontario and the Vendor shall deliver to the Purchaser a certificate
from the Ministry of Finance pursuant to Section 6 of said Act;

    	5

    	 

    

 

(f) the Vendor shall deliver to the Purchaser
duly executed and proper assignments of all transferable licenses, permits and authorities necessary for the Purchaser to operate
the Business after the Time of Closing, including without limiting the generality of the foregoing, an assignment of the existing
telephone number;

 

(g) the Vendor shall deliver to the Purchaser
such other documents, materials, or assurances necessary to give effect to the transactions contemplated by the terms of this Agreement;

 

(h) the Vendor shall deliver to the Purchaser
a Non-Competition Covenant agreeing not to compete, either directly or indirectly, in any capacity whatsoever, whether as
owner, operator, financier, partner, director or officer, with the Business, and not to have any interest, either directly or indirectly,
in any business that is similar to or in competition with the Business, for a period of five (5) years from the Closing , such
Non-Competition Covenant to be in a form reasonably acceptable to the solicitor for the Purchaser;

 

(i) the Vendor shall deliver to the Purchaser
an indemnity duly executed by the Vendor with respect to any loss suffered by the Purchaser as a result of any breach of any representation,
warranty or covenant contained in this Agreement on the part of the Vendor, such indemnity to be in a form reasonably acceptable
to the solicitor for the Purchaser.

 

7.02 The Vendor shall not be obliged to complete
the transaction herein provided forum less, at the Time of Closing, each of the following conditions shall have been satisfied,
it being understood that the said conditions are included for the exclusive benefit of the Vendor and may be waived by the Vendor
in whole or in part, in writing at any time; and the Purchaser shall use his best efforts to ensure that such conditions are fulfilled
on or before the Time of Closing:

 

(a) the representations and warranties set
forth in paragraph 6.02 shall be true and correct in all material respect at the Time of Closing as if such representations and
warranties were made at the Time of Closing and a certificate duly executed by the Purchaser, evidencing same shall have been delivered
to the Vendor on Closing;

 

(b) all the terms, covenants and agreements
set forth in this Agreement to be complied with or performed by the Purchaser on or before the Time of Closing shall have been
complied with or performed by the Purchaser on or before the Time of Closing; and

 

(b) the Purchaser shall deliver to the Vendor
such other documents, materials, or assurances as the Vendor may reasonably request in order to give effect to the transactions
contemplated by the terms of this Agreement.

    	6

    	 

    

 

ARTICLE VIII - CONDITIONS AND FURTHER
ASSURANCES

 

8.01 At any time and from time after the Time
of Closing, the Vendor will, at the Purchaser's request and expense, execute and deliver to the Purchaser such further instruments
of title and perform all acts reasonably necessary in order to vest and affirm in the Purchaser title to the Purchased Assets.

 

8.02 The Vendor and the Purchaser agree to
execute and file a joint election pursuant to section 167(1) of the Excise Tax Act in order that the Purchased Assets may be purchased
by the Purchaser hereunder with no GST payable on closing.

 

8.03 The Vendor shall provide, at no cost
whatsoever, full and dedicated training to the Purchaser (or its principals) concerning all aspects of the Business, including
without limitation the introduction of the Purchaser to all of the Vendor's suppliers, for a period of one (1) month, prior to
and after the Closing Date, during normal business hours.

 

8.04 This Agreement is conditional, for a period
of ten (10) days from acceptance herein, upon the Purchaser reviewing the source code and satisfying itself as to all the authenticity
of the applications development. In the event that the Purchaser, in its absolute and unfettered discretion, is not completely
satisfied with the coding in the said application (within such 10 day period) it shall have the right to declare this Agreement
null and void and thereafter all deposit money shall immediately be returned to the Purchaser in full, without interest or deduction.

 

8.05 This Agreement is conditional, for a period
of ten (10) days from acceptance herein, upon the Purchaser conducting its due diligence and inspection of the source code and
being satisfied with the scalability of the application. The Vendor covenants to give the Purchaser and/or its representatives
access to review certain pieces of the source code, service contract agreements, web development statements, etc. during said ten
(10) day period so as to allow the Purchaser to conduct its due diligence. This condition is being inserted for the sole benefit
of the Purchaser. In the event that the Purchaser does not waive said condition, in writing, within the aforementioned time period,
this Agreement shall be null and void and thereafter all deposit monies shall immediately be returned to the Purchaser, in full,
without interest or deduction.

 

ARTICLE IX – NOTICE

 

9.01 Any notice to be given under or pursuant
to the provisions of this Agreement or in any way concerning the same shall be sufficiently given if reduced to writing and personally
delivered or mailed by prepaid registered mail addressed to:

 

	If to the Purchaser at:	
        7 Ingram Drive Suite 128 Toronto, Ontario Canada

         

	If to the Vendor at:	
        6615 Sondra Drive, Dallas Texas

         

    	7

    	 

    

 

or at such other address as any of the parties
hereto may hereafter designate by notice given in the manner herein provided, and such notice shall be deemed to have been received
when delivered, or if mailed, three (3) days after mailing (excluding Saturdays, Sundays and legal holidays); provided that in
the event of postal disruption of any nature or kind whatsoever, any notice required to be given under this Agreement shall be
personally delivered to either party hereto at the address specified above.

 

ARTICLE X - ENTIRE AGREEMENT

 

10.01 This Agreement constitutes the entire
Agreement between the parties hereto pertaining to the subject matter hereof and supersedes all prior contracts, agreements and
undertakings of the parties in connection herewith. No modifications or alterations to this Agreement shall be binding unless executed
in writing by the parties hereto. No waiver of any provision of this Agreement shall be deemed or shall constitute a waiver of
any other provisions hereof (whether or not similar) nor shall a waiver constitute a continuing waiver unless expressly stated
to be so.

 

ARTICLE XI - TIME

 

11.01 Time shall be of the essence in this
Agreement and every part hereof.

 

ARTICLE XII - SUCCESSORS AND ASSIGNS

 

12.01 This Agreement shall ensure to the benefit
of and be binding upon the parties hereto and their respective heirs, executors, administrators, legal representatives, successors
and assigns, as the case may be.

 

ARTICLE XIII - PROFESSIONAL FEES

 

13.01 Each of the parties hereto shall be responsible
and liable for any of their own legal, accounting or other professional fees and disbursements incurred in connection with the
preparation of and transactions arising out of this Agreement.

 

ARTICLE XIV - SCHEDULE

 

14.01 The following Schedules shall form part
of and be incorporated into this Agreement:

 

	Schedule "A"	Asset List

 

IN WITNESS WHEREOF the Vendor and the
Purchaser have hereunto executed this Agreement under seal.

 

This undersigned consent to all the provisions
in this Agreement, signed this 23 day of July, 2013.

 

 

	Derek Ivany	Jeffrey Linder
	Myriad Interactive Media Inc.	
        Brazo River Technologies, LLC.

         

	/s/ Derek Ivany	/s/ Jeffrey Linder
	Signature	Signature

 

This undersigned consent to all the provisions
in this Agreement, signed this 23 day of July, 2013.

 

	Derek Ivany	Jeffrey Linder
	Myriad Interactive Media Inc.	
        Brazo River Technologies, LLC.

         

	/s/ Derek Ivany	/s/ Jeffrey Linder
	Signature	Signature

 

    	8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00219-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00219-of-00352.parquet"}]]