<SUBMISSION>
<ACCESSION-NUMBER>0001347078-12-000003
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>3
<PERIOD>20120106
<ITEMS>3.02
<ITEMS>9.01
<FILING-DATE>20120112
<DATE-OF-FILING-DATE-CHANGE>20120112
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>Bitzio, Inc.
<CIK>0001347078
<ASSIGNED-SIC>2060
<IRS-NUMBER>161734022
<STATE-OF-INCORPORATION>NV
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-51688
<FILM-NUMBER>12524783
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>548 MARKET STREET
<STREET2>SUITE 18224
<CITY>SAN FRANCISCO
<STATE>CA
<ZIP>94104
<PHONE>213-400-0770
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>548 MARKET STREET
<STREET2>SUITE 18224
<CITY>SAN FRANCISCO
<STATE>CA
<ZIP>94104
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>ROCKY MOUNTAIN FUDGE CO IN
<DATE-CHANGED>20051215
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8k201201061.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>Form 8-K</TITLE>
<META NAME="author" CONTENT="FreeEDGAR">
<META NAME="date" CONTENT="01/12/2012">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<A NAME="OLE_LINK1"></A><DIV style="width:468pt"><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>UNITED STATES</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin:0pt" align=center><B>Washington, D.C. &nbsp;20549</B></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:18pt; margin:0pt; font-size:16pt" align=center><B>Form 8-K</B></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:18pt; margin:0pt; font-size:16pt" align=center><B>Current Report</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934</B></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=250.2></TD><TD width=33.3></TD><TD width=133.2></TD></TR>
<TR><TD valign=top width=333.6><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>Date of Report (Date of earliest event reported):</P>
</TD><TD valign=top width=44.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=177.6><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>January 6, 2012</B></P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:18pt; margin:0pt; font-size:16pt" align=center><B>BITZIO, INC.</B></P>
<P style="margin:0pt" align=center>(Exact name of registrant as specified in its charter)</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=126.9></TD><TD width=50.2></TD><TD width=88.55></TD><TD width=50.25></TD><TD width=126.9></TD></TR>
<TR><TD valign=top width=169.2><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>Nevada</B></P>
<P style="margin:0pt" align=center>(State or other</P>
<P style="margin:0pt" align=center>jurisdiction of incorporation)</P>
</TD><TD valign=top width=66.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=118.067><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>000-51688</B></P>
<P style="margin:0pt" align=center>(Commission</P>
<P style="margin:0pt" align=center>File Number)</P>
</TD><TD valign=top width=67><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=169.2><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>16-1734022</B></P>
<P style="margin:0pt" align=center>(I.R.S. Employer</P>
<P style="margin:0pt" align=center>Identification No.)</P>
</TD></TR>
<TR><TD valign=top width=169.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=118.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=67><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=169.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=169.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=118.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=67><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=169.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=590.4 colspan=5><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>548 Market Street, Suite 18224</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>San Francisco, CA &nbsp;94104</B></P>
<P style="margin:0pt" align=center>(Address of principal executive offices) &nbsp;(zip code)</P>
</TD></TR>
<TR><TD valign=top width=169.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=118.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=67><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=169.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=169.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=118.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=67><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=169.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=590.4 colspan=5><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>(213) 400-0770</B></P>
<P style="margin:0pt" align=center>(Registrant&#146;s telephone number, including area code)</P>
</TD></TR>
<TR><TD valign=top width=169.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=118.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=67><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=169.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=169.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=118.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=67><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=169.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=590.4 colspan=5><P style="margin:0pt" align=center>&nbsp;(Former name or former address, if changed since last report.)</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; text-indent:36pt" align=justify>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify>[_] &nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify>[_] &nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify>[_] &nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify>[_] &nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>
<A NAME="node8"></A><P style="margin:0pt" align=center><BR>
<BR></P>
<P style="line-height:8pt; margin:0pt; font-size:6pt">00050980.DOC</P>
<P style="margin:0pt"><BR></P>
<HR style="margin-top:7.2pt; margin-bottom:7.2pt" noshade size=1.333>
</DIV><DIV style="width:432pt"><P style="line-height:14pt; margin:0pt; font-size:12pt; page-break-before:always" align=justify><B>Section 3 &#150; Securities and Trading Markets</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; font-size:12pt" align=justify><B>Item 3.02</B></P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><B>Unregistered Sales of Equity Securities</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify><U>Series A Convertible Redeemable Preferred Stock</U></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>On January 6, 2012, we issued an aggregate of 2,043,120 shares of our Series A Convertible Redeemable Preferred Stock to six individuals, four of which are members of our Board of Directors, namely William Schonbrun, Gordon C. McDougall (Tezi Advisory), Steven D. Moulton, and R.W. (Bob) Garnett, and one of which was our Chief Operating Officer, namely Bruce Weatherell. &nbsp;Each share of Series A Preferred Stock gives the holder the right, but not the obligation, after January 1, 2013 but before January 2, 2017, to purchase two (2) shares of the Corporation&#146;s common stock at a purchase price of Forty Cents ($0.40) per share, which was the closing price of our common stock on the last trading day prior to the transaction. &nbsp;Further, the Corporation can redeem the Series A Preferred Stock at $0.0025 per share after January 2, 2017.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>We granted rights to subscribe for the Series A Convertible Redeemable Preferred Stock to six individuals as a result of them waiving an aggregate of $465,000 of compensation in 2011, and agreeing to defer an aggregate of $360,000 of compensation otherwise due in 2012. &nbsp;The rights enabled the six individuals to acquire the preferred shares at $0.0025 per share, as follows:</P>
<P style="margin:0pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=103.35></TD><TD width=114.9></TD><TD width=97.25></TD><TD width=90></TD><TD width=94.5></TD></TR>
<TR><TD style="border:0.5pt solid #000000" valign=bottom width=137.8><P style="line-height:13pt; margin:0pt; font-size:11pt"><B>Name</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=153.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>No. of Shares of Series A Convertible Redeemable Preferred Stock</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=129.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>Purchase Price</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=120><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>2011 Compensation Waived</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=126><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>2012 Compensation Deferred</B></P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=137.8><P style="line-height:13pt; margin:0pt; font-size:11pt">Schonbrun</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=153.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>588,462</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=129.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$1,471.16</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=120><P style="line-height:13pt; margin:0pt; font-size:11pt">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;127,500.00 </P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=126><P style="line-height:13pt; margin:0pt; font-size:11pt">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90,000.00 </P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=137.8><P style="line-height:13pt; margin:0pt; font-size:11pt">McDougall</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=153.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>514,904</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=129.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$1,287.26</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=120><P style="line-height:13pt; margin:0pt; font-size:11pt">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;127,500.00 </P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=126><P style="line-height:13pt; margin:0pt; font-size:11pt">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45,000.00 </P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=137.8><P style="line-height:13pt; margin:0pt; font-size:11pt">Moulton</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=153.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>276,293</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=129.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$690.73</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=120><P style="line-height:13pt; margin:0pt; font-size:11pt">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60,000.00 </P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=126><P style="line-height:13pt; margin:0pt; font-size:11pt">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60,000.00 </P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=137.8><P style="line-height:13pt; margin:0pt; font-size:11pt">Garnett</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=153.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>230,769</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=129.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$576.92</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=120><P style="line-height:13pt; margin:0pt; font-size:11pt">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50,000.00 </P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=126><P style="line-height:13pt; margin:0pt; font-size:11pt">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30,000.00 </P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=137.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=153.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>230,769</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=129.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$576.92</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=120><P style="line-height:13pt; margin:0pt; font-size:11pt">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50,000.00 </P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=126><P style="line-height:13pt; margin:0pt; font-size:11pt">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90,000.00 </P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=137.8><P style="line-height:13pt; margin:0pt; font-size:11pt">Weatherell</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=153.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>201,923</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=129.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$504.81</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=120><P style="line-height:13pt; margin:0pt; font-size:11pt">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50,000.00 </P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=126><P style="line-height:13pt; margin:0pt; font-size:11pt">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45,000.00 </P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=137.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=153.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=129.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=120><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=126><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=137.8><P style="line-height:13pt; margin:0pt; font-size:11pt">Totals</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=153.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>2,043,120</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=129.667><P style="line-height:13pt; margin:0pt; font-size:11pt">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,107.80 </P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=120><P style="line-height:13pt; margin:0pt; font-size:11pt">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;465,000.00 </P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=126><P style="line-height:13pt; margin:0pt; font-size:11pt">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;360,000.00 </P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>The issuances were exempt from registration pursuant to Section 4(2) of the Securities Act of 1933, the individuals were either accredited or sophisticated and familiar with our operations, and there was no solicitation.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:8pt; margin-top:0pt; margin-bottom:-8pt; font-size:6pt">00050980.DOC</P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt; page-break-before:always" align=justify><B>Section 9 &#150; Financial Statements and Exhibits.</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; font-size:12pt" align=justify><B>Item 9.01</B></P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><B>&nbsp;Financial Statements and Exhibits.</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; font-size:12pt">&nbsp;(d)</P>
<P style="margin:0pt; text-indent:36pt; font-size:12pt">Exhibits</P>
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<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=51.95></TD><TD width=13.5></TD><TD width=326.95></TD></TR>
<TR><TD valign=top width=69.267><P style="line-height:14pt; margin:0pt; font-size:12pt">3.4</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=435.933><P style="line-height:14pt; margin:0pt; font-size:12pt">Certificate of Designation of the Rights, Privileges and Preferences of the Series A Convertible Redeemable Preferred Stock.</P>
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<TR><TD valign=top width=69.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=435.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=69.267><P style="line-height:14pt; margin:0pt; font-size:12pt">10.1</P>
</TD><TD valign=top width=18><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=435.933><P style="line-height:14pt; margin:0pt; font-size:12pt">Form of Securities Purchase Agreement for Series A Convertible Preferred Stock.</P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>[remainder of page intentionally left blank; signature page to follow]</P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt; page-break-before:always" align=center><B>SIGNATURES</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>
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<TR><TD valign=top width=294.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=296.333><P style="margin:0pt; font-size:12pt"><B>Bitzio, Inc.</B></P>
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<TR><TD valign=top width=294.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=296.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=294.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=296.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=294.067><P style="margin:0pt; font-size:12pt" align=justify>Dated: January 12, 2012</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=296.333><P style="margin:0pt; font-size:12pt"><I>/s/ Gordon C. McDougall</I></P>
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<P style="margin:0pt; text-indent:31.8pt; font-size:12pt">Gordon C. McDougall</P>
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<TR><TD valign=top width=294.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=296.333><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:32pt; text-indent:-32pt; font-size:12pt">Its:</P>
<P style="margin:0pt; padding-left:32pt; font-size:12pt">Chief Executive Officer</P>
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<DIV style="width:468pt"><P style="line-height:14pt; margin:0pt; font-family:Arial; font-size:12pt"><FONT FACE="Arial"><B>Exhibit 3.4</B></FONT></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><FONT FACE="Times New Roman"><B>CERTIFICATE OF DESIGNATION</B></FONT></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>OF THE RIGHTS, PREFERENCES, PRIVILEGES</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>AND RESTRICTIONS, WHICH HAVE NOT BEEN SET</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>FORTH IN THE CERTIFICATE OF INCORPORATION</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>OR IN ANY AMENDMENT THERETO,</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>OF THE</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>SERIES A CONVERTIBLE REDEEMABLE PREFERRED STOCK</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>OF</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>BITZIO, INC.</B></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>The undersigned, Gordon C. McDougall and Steven D. Moulton, do hereby certify that:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>A. </P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify>They are the President and Secretary, respectively, of Bitzio, Inc., a Nevada corporation (the &#147;Corporation&#148;).</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, the Certificate of Incorporation of the Corporation authorizes a class of stock designated as Preferred Stock, with a par value of $0.001 per share (the &#147;Preferred Class&#148;), comprising Ten Million (10,000,000) shares and provides that the Board of Directors of the Corporation may fix the terms, including any dividend rights, dividend rates, conversion rights, voting rights, rights and terms of any redemption, redemption, redemption price or prices, and liquidation preferences, if any, of the Preferred Class;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">WHEREAS, the corporation has not issued any shares of the Preferred Class;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, the Board of Directors believes it in the best interests of the Corporation to create a new series of preferred stock consisting of Two Million Five Hundred Thousand (2,500,000) shares and designated as the &#147;Series A Convertible Redeemable Preferred Stock&#148; having certain rights, preferences, privileges, restrictions and other matters relating to the Series A Convertible Redeemable Preferred Stock.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby fix and determine the rights, preferences, privileges, restrictions and other matters relating do the Series A Convertible Redeemable Preferred Stock as follows:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>1.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Definitions.</U> &nbsp;For purposes of this Certificate of Designation, the following definitions shall apply:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>1.1</P>
<P style="line-height:14pt; margin:0pt; text-indent:90pt; font-size:12pt" align=justify>&#147;Board&#148; shall mean the Board of Directors of the Corporation.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>1.2</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:90pt; font-size:12pt" align=justify>&nbsp;</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Corporation&#148; shall mean Bitzio, Inc., a Nevada corporation.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>1.3</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:90pt; font-size:12pt" align=justify>&nbsp;</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Common Stock&#148; shall mean the common stock, $0.001 par value per share, of the Corporation.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>1.4</P>
<P style="line-height:14pt; margin:0pt; text-indent:90pt; font-size:12pt" align=justify>&#147;Conversion Date&#148; shall have the meaning set forth in Section 4(b).</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>1.5</P>
<P style="line-height:14pt; margin:0pt; text-indent:90pt; font-size:12pt" align=justify>&#147;Holder&#148; shall mean a holder of the Series A Convertible Redeemable Preferred Stock.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>1.6</P>
<P style="line-height:14pt; margin:0pt; text-indent:90pt; font-size:12pt" align=justify>&#147;Liquidation Price&#148; shall mean $0.0025 per share for the Series A Convertible Redeemable Preferred Stock.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>1.7</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:90pt; font-size:12pt" align=justify>&nbsp;</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Original Issue Date&#148; shall mean the date on which the first share of Series A Convertible Redeemable Preferred Stock is issued by the Corporation.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>1.8</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:90pt; font-size:12pt" align=justify>&nbsp;</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Person&#148; shall mean an individual, a corporation, a partnership, an association, a limited liability company, an unincorporated business organization, a trust or other entity or organization, and any government or political subdivision or any agency or instrumentality thereof.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>1.9</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:90pt; font-size:12pt" align=justify>&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Series A Convertible Redeemable Preferred Stock&#148; shall mean the Series A Convertible Redeemable Preferred Stock, $0.001 par value per share, of the Corporation.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>2.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Dividend Rights</U>. &nbsp;The Series A Convertible Redeemable Preferred Stock shall have no dividend rights.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>3.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Liquidation Rights.</U> &nbsp;In the event of any liquidation, dissolution or winding up of the Corporation; whether voluntary or involuntary, the funds and assets of the Corporation that may be legally distributed to the Corporation's shareholders (the &#147;Available Funds and Assets&#148;) shall be distributed to shareholders in the following manner:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>3.1</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Series A Convertible Redeemable Preferred Stock. The holders of each share of Series A Preferred Stock then outstanding shall be entitled to be paid, out of the Available Funds and Assets, and prior and in preference to any payment or distribution (or any setting apart of any payment or distribution) of any Available Funds and Assets on any shares of Common Stock or subsequent series of preferred stock, an amount per share equal to the Liquidation Price of the Series A Convertible Redeemable Preferred Stock plus all declared but unpaid dividends on the Series A Convertible Redeemable Preferred Stock. &nbsp;If upon any liquidation, dissolution or winding up of the Corporation, the Available Funds and Assets shall be insufficient to permit the payment to holders of the Series A Convertible Redeemable Preferred Stock of their full preferential amount as described in this subsection, then all of the remaining Available Funds and Assets shall be distributed among the holders of the then outstanding Series A Convertible Redeemable Preferred Stock pro rata, according to the number of outstanding shares of Series A Convertible Redeemable Preferred Stock held by each holder thereof.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>3.2</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Participation Rights. &nbsp;If there are any Available Funds and Assets remaining after the payment or distribution (or the setting aside for payment or distribution) to the holders of the Series A Convertible Redeemable Preferred Stock of their full preferential </P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt; page-break-before:always" align=justify>amounts described above in this Section 3, then all such remaining Available Funds and Assets shall be distributed among the holders of the then outstanding Common Stock and Preferred Stock pro rata according to the number and preferences of the shares of Common Stock and Preferred Stock (as converted to Common Stock) held by such holders.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>3.3</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Merger or Sale of Assets. A reorganization or any other consolidation or merger of the Corporation with or into any other corporation, or any other sale of all or substantially all of the assets of the Corporation, shall not be deemed to be a liquidation, dissolution or winding up of the Corporation within the meaning of this Section 3, and the Series A Convertible Redeemable Preferred Stock shall be entitled only to (i) the right provided in any agreement or plan governing the reorganization or other consolidation, merger or sale of assets transaction, (ii) the rights contained in the General Corporation Law of the State of Nevada and (iii) the rights contained in other Sections hereof.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>3.4</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Non-Cash Consideration. &nbsp;If any assets of the Corporation distributed to shareholders in connection with any liquidation, dissolution or winding up of the Corporation are other than cash, then the value of such assets shall be their fair market value as determined by the Board.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>4.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Conversion Rights</U>.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>4.1</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Conversion of Preferred Stock. &nbsp;Each share of Series A Convertible Redeemable Preferred Stock shall be convertible, at the option of the holder thereof, at any time after January 1, 2013 but before January 2, 2017 (the &#147;Conversion Window&#148;), and upon payment to the Corporation of a conversion premium of Forty Cents ($0.40) per share of common stock acquired upon conversion (the &#147;Conversion Premium&#148;), into two (2) fully paid and nonassessable shares of Common Stock of the Corporation (the &#147;Conversion Shares&#148;).</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>4.2</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Procedures for Exercise of Conversion Rights. &nbsp;The holders of any shares of Series A Convertible Redeemable Preferred Stock may exercise their conversion rights as to all such shares or any part thereof by delivering to the Corporation during regular business hours, at the office of any transfer agent of the Corporation for the Series A Convertible Redeemable Preferred Stock, or at the principal office of the Corporation or at such other place as may be designated by the Corporation, the certificate or certificates for the shares to be converted, duly endorsed for transfer to the Corporation (if required by the Corporation), accompanied by written notice stating that the holder elects to convert such shares, and the Conversion Premium. &nbsp;Conversion shall be deemed to have been effected on the date when such delivery is made, and such date is referred to herein as the &#147;Conversion Date.&#148; &nbsp;As promptly as practicable after the Conversion Date, the Corporation shall issue and deliver to or upon the written order of such holder, at such office or other place designated by the Corporation, a certificate or certificates for the number of full shares of Common Stock to which such holder is entitled and a check for cash with respect to any fractional interest in a share of Common Stock as provided in section 4(c) below. &nbsp;The holder shall be deemed to have become a shareholder of record on the Conversion Date. &nbsp;Upon conversion of only a portion of the number of shares of Series A Convertible Redeemable Preferred Stock represented by a certificate surrendered for conversion, the Corporation shall issue and deliver to or upon the written order of the holder of the certificate so </P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt; page-break-before:always" align=justify>surrendered for conversion, at the expense of the Corporation, a new certificate covering the number of shares of Series A Convertible Redeemable Preferred Stock representing the unconverted portion of the certificate so surrendered.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>4.3</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>No Fractional Shares. &nbsp;No fractional shares of Common Stock or scrip shall be issued upon conversion of shares of Series A Convertible Redeemable Preferred Stock. &nbsp;If more than one share of Series A Convertible Redeemable Preferred Stock shall be surrendered for conversion at any one time by the same holder, the number of full shares of Common Stock issuable upon conversion thereof shall be computed on the basis of the aggregate number of shares of Series A Convertible Redeemable Preferred Stock so surrendered. &nbsp;Instead of any fractional shares of Common Stock which would otherwise be issuable upon conversion of any shares of Series A Convertible Redeemable Preferred Stock, the Corporation shall pay a cash adjustment in respect of such fractional interest equal to the fair market value of such fractional interest as determined by the corporation's Board of Directors.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>4.4</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Payment of Taxes for Conversions. &nbsp;The Corporation shall pay any and all issue and other taxes that may be payable in respect of any issue or delivery of shares of Common Stock on conversion pursuant hereto of Series A Convertible Redeemable Preferred Stock. &nbsp;The Corporation shall not, however, be required to pay any tax which may be payable in respect of any transfer involved in the issue and delivery of shares of Common Stock in a name other than that in which the shares of Series A Convertible Redeemable Preferred Stock so converted were registered, and no such issue or delivery shall be made unless and until the person requesting such issue has paid to the corporation the amount of any such tax, or has established, to the satisfaction of the Corporation, that such tax has been paid.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>4.5</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Reservation of Common Stock. &nbsp;The Corporation shall at all times reserve and keep available, out of its authorized but unissued Common Stock, solely for the purpose of effecting the conversion of the Series A Convertible Redeemable Preferred Stock, the full number of shares of Common Stock deliverable upon the conversion of all shares of all series of preferred stock from time to time outstanding.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>4.6</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Registration or Listing of Shares of Common Stock. &nbsp;If any shares of Common Stock to be reserved for the purpose of conversion of shares of Series A Convertible Redeemable Preferred Stock require registration or listing with, or approval of, any governmental authority, stock exchange or other regulatory body under any federal or state law or regulation or otherwise, before such shares may be validly issued or delivered upon conversion, the Corporation will in good faith and as expeditiously as possible endeavor to secure such registration, listing or approval, as the case may be.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>4.7</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Status of Common Stock Issued Upon Conversion. &nbsp;All shares of Common Stock which may be issued upon conversion of the shares of Series A Convertible Redeemable Preferred Stock will upon issuance by the Corporation be validly issued, fully paid and nonassessable and free from all taxes, liens and charges with respect to the issuance thereof.</P>
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<BR></P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt; page-break-before:always" align=justify>4.8</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Status of Converted Preferred Stock. &nbsp;In case any shares of Series A Convertible Redeemable Preferred Stock shall be converted pursuant to this section 4, the shares so converted shall be canceled and shall not be issuable by the Corporation.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>5.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Adjustment of Conversion Price</U>.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>5.1</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>General Provisions. &nbsp;In case, at any time after the date hereof, of any capital reorganization, or any reclassification of the stock of the Corporation (other than a change in par value or as a result of a stock dividend or subdivision, split-up or combination of shares), or the consolidation or merger of the Corporation with or into another person (other than a consolidation or merger in which the Corporation is the continuing entity and which does not result in any change in the Common Stock), or of the sale or other disposition of all or substantially all the properties and assets of the Corporation as an entirety to any other person, the shares of Series A Convertible Redeemable Preferred Stock shall, after such reorganization, reclassification, consolidation, merger, sale or other disposition, be convertible into the kind and number of shares of stock or other securities or property of the Corporation or of the entity resulting from such consolidation or surviving such merger or to which such properties and assets shall have been sold or otherwise disposed to which such holder would have been entitled if immediately prior to such reorganization, reclassification, consolidation, merger, sale or other disposition it had converted its shares of Series A Convertible Redeemable Preferred Stock into Common Stock. &nbsp;The provisions of this section 5.1 shall similarly apply to successive reorganizations, reclassifications, consolidations, mergers, sales or other dispositions.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>5.2</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>No Impairment. &nbsp;The Corporation will not, through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, including amending this Certificate of Designation, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Corporation, but will at all times in good faith assist in the carrying out of all the provisions of this section 5 and in the taking of all such action as may be necessary or appropriate in order to protect the conversion rights of the holders of Series A Convertible Redeemable Preferred Stock against impairment. &nbsp;This provision shall not restrict the Corporation from amending its Articles of Incorporation in accordance with the Nevada Revised Statutes and the terms hereof.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>6. &nbsp;</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Redemption Provisions</U>. &nbsp;The Series A Convertible Redeemable Preferred Stock may be redeemed by the Corporation on the following terms:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>6.1</P>
<P style="line-height:14pt; margin:0pt; text-indent:99pt; font-size:12pt" align=justify>Redemption Right; Notice. &nbsp;At any time after January 2, 2017 the Corporation may, as determined by the Board of Directors at its sole discretion, redeem any or all of the Series A Convertible Redeemable Preferred Stock by providing thirty (30) days advance written notice to the holders whose shares shall be redeemed. &nbsp;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>6.2</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Redemption Price. &nbsp;For purposes of this Section 6, the redemption price of the Series A Convertible Redeemable Preferred Stock shall be equal to the Liquidation Price.</P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>&nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:18pt; text-indent:54pt; font-size:12pt" align=justify>6.3</P>
<P style="line-height:14pt; margin:0pt; padding-left:18pt; text-indent:90pt; font-size:12pt" align=justify>Redemption Procedures. &nbsp;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt; page-break-before:always" align=justify>(a)</P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; text-indent:108pt; font-size:12pt" align=justify>Any redemption of the Series A Convertible Redeemable Preferred Stock pursuant to Section 6.1 above shall be deemed to be effective and consummated (for purposes of determining the Redemption Price and the time at which the holders shall thereafter not be entitled to deliver a Notice of Conversion for the Preferred Shares) on the Redemption Date set forth in the notice of redemption (which shall be at least thirty (30) days after the delivery of the notice of redemption, on a date chosen by the Corporation).</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt" align=justify>(b)</P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; text-indent:108pt; font-size:12pt" align=justify>On the effective date of a redemption of the Series A Convertible Redeemable Preferred Stock as specified above, the Corporation shall deliver by wire transfer of funds the Redemption Price to the holders of the Series A Convertible Redeemable Preferred Stock subject to redemption. &nbsp;</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt" align=justify>(c)</P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; text-indent:108pt; font-size:12pt" align=justify>Should any Series A Convertible Redeemable Preferred Stock required to be redeemed under the terms hereof not be redeemed solely by reason of limitations imposed by law, the applicable Series A Convertible Redeemable Preferred Stock shall be redeemed on the earliest possible dates thereafter to the maximum extent permitted by law.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt" align=justify>(d)</P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; text-indent:108pt; font-size:12pt" align=justify>Any Notice of Conversion delivered by a holder (including delivery via facsimile) to the Corporation prior to the Redemption Date pursuant to Section 6.1 shall be honored by the Corporation and the conversion of the Series A Convertible Redeemable Preferred Stock shall be deemed effected on the Conversion Date. &nbsp;In addition, between the effective date of a redemption pursuant to Section 6.1 above and the date the Corporation is required to deliver the redemption proceeds in full to the applicable holder(s), the holder may deliver a Notice of Conversion to the Corporation. &nbsp;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>7.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Voting Provisions</U>. &nbsp;The Series A Convertible Redeemable Preferred Stock shall have no voting rights.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>IN WITNESS WHEREOF, the Corporation has caused this Certificate of Designation of Series A Convertible Redeemable Preferred Stock to be duly executed by its President and attested to by its Secretary this 2nd day of January, 2012.</P>
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<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=239.4></TD><TD width=239.4></TD></TR>
<TR><TD valign=top width=319.2><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify><I><U>/s/ Gordon C. McDougall</U></I></P>
</TD><TD valign=top width=319.2><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify><I><U>/s/ Steven D. Moulton</U></I></P>
</TD></TR>
<TR><TD valign=top width=319.2><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; font-size:12pt" align=justify>By:</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>Gordon C. McDougall</P>
</TD><TD valign=top width=319.2><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; font-size:12pt" align=justify>By:</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>Steven D. Moulton</P>
</TD></TR>
<TR><TD valign=top width=319.2><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; font-size:12pt" align=justify>Its:</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>President</P>
</TD><TD valign=top width=319.2><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; font-size:12pt" align=justify>Its:</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>Secretary</P>
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<FILENAME>exhibit101.htm
<DESCRIPTION>EXHIBIT 10.1
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<TITLE>Exhibit 10.1</TITLE>
<META NAME="author" CONTENT="Brian A. Lebrecht">
<META NAME="date" CONTENT="01/12/2012">
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<DIV style="width:432pt"><P style="line-height:14pt; margin-top:0pt; margin-bottom:24pt; font-family:Arial; font-size:12pt"><FONT FACE="Arial"><B>Exhibit 10.1</B></FONT></P>
<P style="margin-top:0pt; margin-bottom:32pt" align=center><BR></P>
<P style="margin-top:0pt; margin-bottom:32pt" align=center><BR></P>
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<P style="line-height:18pt; margin:0pt; font-family:Times New Roman Bold; font-size:16pt" align=center><FONT FACE="Times New Roman Bold"><B>BITZIO, INC.</B></FONT></P>
<P style="line-height:16pt; margin:0pt; font-size:14pt" align=center><FONT FACE="Times New Roman"><B>____________________________</B></FONT></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:16pt; margin:0pt; font-size:14pt" align=center><B>SECURITIES PURCHASE AGREEMENT</B></P>
<P style="line-height:16pt; margin:0pt; font-size:14pt" align=center><B>Series A Convertible Redeemable Preferred Stock</B></P>
<P style="line-height:16pt; margin:0pt; font-size:14pt" align=center><B>at</B></P>
<P style="line-height:16pt; margin:0pt; font-size:14pt" align=center><B>$0.0025 per Share</B></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:16pt; margin:0pt; font-size:14pt" align=center><B>__________________________</B></P>
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</DIV><DIV style="width:468pt"><P style="line-height:14pt; margin:0pt; font-size:12pt; page-break-before:always" align=center><B>SECURITIES PURCHASE AGREEMENT</B></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>This Securities Purchase Agreement (this &#147;Agreement&#148;) is made and entered into effective as of the 2nd day of January, 2012 (the &#147;Effective Date&#148;) by and between Bitzio, Inc., a Nevada corporation (the &#147;Company&#148;), and [insert] (the &#147;Purchaser&#148;). &nbsp;The Company and Purchaser shall each be referred to as a &#147;Party&#148; and collectively as the &#147;Parties.&#148;</P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>AGREEMENT</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>1.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>PURCHASE OF SECURITIES</U>: &nbsp;On the Closing Date (as hereinafter defined), subject to the terms and conditions set forth in this Agreement, the Purchaser hereby agrees to purchase, and the Company hereby agrees to sell, [insert] ([insert]) shares of Series A Convertible Redeemable Preferred Stock (the &#147;Shares&#148; or &#147;Securities&#148;) of the Company at a per-share purchase price of $0.0025 per share, for a total purchase price of [insert] ($[insert]) (the &#147;Purchase Price&#148;). </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>2.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>CLOSING AND DELIVERY</U>: &nbsp;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>a)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Upon the terms and subject to the conditions set forth herein, the consummation of the purchase and sale of the Shares (the &#147;Closing&#148;) shall be held simultaneous with the execution of this Agreement, or at such other time mutually agreed upon between the constituent Parties (the &#147;Closing Date&#148;). &nbsp;The Closing shall take place at the offices of the Company set forth in Section 6 hereof, or by the exchange of documents and instruments by mail, courier, facsimile and wire transfer to the extent mutually acceptable to the Parties hereto.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>b)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>At the Closing:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:36pt; font-size:12pt" align=justify>(i)</P>
<P style="line-height:14pt; margin:0pt; padding-left:72pt; text-indent:72pt; font-size:12pt" align=justify>The Company and the Purchaser shall execute this Agreement, which shall serve as evidence of ownership of the Shares, free from restrictions on transfer except as set forth in this Agreement. &nbsp;Subsequent to the Closing, at a time chosen by the Company in its sole discretion, the Company will issue a stock certificate to the Purchaser to evidence the Shares.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:36pt; font-size:12pt" align=justify>(ii)</P>
<P style="line-height:14pt; margin:0pt; padding-left:72pt; text-indent:72pt; font-size:12pt" align=justify>The Purchaser shall deliver to the Company the Purchase Price.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>3. </P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>REPRESENTATIONS, WARRANTIES AND AGREEMENTS BY PURCHASER</U>: &nbsp;The Purchaser hereby represents, warrants and agrees as follows:</P>
<P style="margin:0pt" align=justify><BR></P>
<A NAME="_Toc357899556"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify><I>a)</I></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt" align=justify><I>Purchase for Own Account</I>. &nbsp;Purchaser represents that he is acquiring the Securities solely for his own account and beneficial interest for investment and not for sale or with a view to distribution of the Securities or any part thereof, has no present intention of selling (in connection with a distribution or otherwise), granting any participation in, or otherwise distributing the same, and does not presently have reason to anticipate a change in such intention.<A NAME="_Toc357899559"></A></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify><I>b)</I></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt" align=justify><I>Ability to Bear Economic Risk</I>. &nbsp;Purchaser acknowledges that an investment in the Securities involves a high degree of risk, and represents that he is able, without materially </P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt; page-break-before:always" align=justify>impairing his financial condition, to hold the Securities for an indefinite period of time and to suffer a complete loss of his investment.<A NAME="_Toc357899560"></A></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify><I>c)</I></P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify><I>Access to Information.</I> &nbsp;The Purchaser acknowledges that the Purchaser has been furnished with such financial and other information concerning the Company, the directors and officers of the Company, and the business and proposed business of the Company as the Purchaser considers necessary in connection with the Purchaser&#146;s investment in the Securities. &nbsp;Purchaser acknowledges that he is an officer, director, or material service provide to the Company, and as a result, the Purchaser is thoroughly familiar with the proposed business, operations, properties and financial condition of the Company and has discussed with officers of the Company any questions the Purchaser may have had with respect thereto. &nbsp;The Purchaser understands:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:36pt; font-size:12pt" align=justify>(i)</P>
<P style="line-height:14pt; margin:0pt; padding-left:72pt; text-indent:72pt; font-size:12pt" align=justify>The risks involved in this investment, including the speculative nature of the investment;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:36pt; font-size:12pt" align=justify>(ii) </P>
<P style="line-height:14pt; margin:0pt; padding-left:72pt; text-indent:72pt; font-size:12pt" align=justify>The financial hazards involved in this investment, including the risk of losing the Purchaser&#146;s entire investment;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:36pt; font-size:12pt" align=justify>(iii)</P>
<P style="line-height:14pt; margin:0pt; padding-left:72pt; text-indent:72pt; font-size:12pt" align=justify>The lack of liquidity and restrictions on transfers of the Securities; and</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:36pt; font-size:12pt" align=justify>(iv)</P>
<P style="line-height:14pt; margin:0pt; padding-left:72pt; text-indent:72pt; font-size:12pt" align=justify>The tax consequences of this investment.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>The Purchaser has consulted with the Purchaser&#146;s own legal, accounting, tax, investment and other advisers with respect to the tax treatment of an investment by the Purchaser in the Securities and the merits and risks of an investment in the Securities.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify><I>d)</I></P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify><I>Securities Part of Private Placement</I>. &nbsp;The Purchaser has been advised that the Securities have not been registered under the Securities Act of 1933, as amended (the &#147;Act&#148;), or qualified under the securities law of any state, on the ground, among others, that no distribution or public offering of the Securities is to be effected and the Securities will be issued by the Company in connection with a transaction that does not involve any public offering within the meaning of section 4(2) of the Act and/or Regulation D as promulgated by the Securities and Exchange Commission under the Act, and under any applicable state blue sky authority. &nbsp;The Purchaser understands that the Company is relying in part on the Purchaser&#146;s representations as set forth herein for purposes of claiming such exemptions and that the basis for such exemptions may not be present if, notwithstanding the Purchaser&#146;s representations, the Purchaser has in mind merely acquiring the Securities for resale on the occurrence or nonoccurrence of some predetermined event. &nbsp;The Purchaser has no such intention.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify><I>e)</I></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt" align=justify><I>Further Limitations on Disposition</I>. &nbsp;Purchaser further acknowledges that the Securities are restricted securities under Rule 144 of the Act, and, therefore, if the Company, in its sole discretion, chooses to issue any certificates reflecting the ownership interest in the Securities, those certificates will contain a restrictive legend substantially similar to the following:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; padding-right:72pt; font-size:12pt" align=justify>THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE &#147;ACT&#148;). &nbsp;</P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; padding-right:72pt; font-size:12pt; page-break-before:always" align=justify>THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-size:12pt" align=justify>Without in any way limiting the representations set forth above, Purchaser further agrees not to make any disposition of all or any portion of the Securities unless and until:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:36pt; font-size:12pt" align=justify>(i)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; text-indent:72pt; font-size:12pt" align=justify>There is then in effect a Registration Statement under the Act covering such proposed disposition and such disposition is made in accordance with such Registration Statement; or</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:36pt; font-size:12pt" align=justify>(ii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; text-indent:72pt; font-size:12pt" align=justify>Purchaser shall have obtained the consent of the Company and notified the Company of the proposed disposition and shall have furnished the Company with a detailed statement of the circumstances surrounding the proposed disposition, and if reasonably requested by the Company, Purchaser shall have furnished the Company with an opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require registration under the Act or any applicable state securities laws.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-size:12pt" align=justify>Notwithstanding the provisions of subparagraphs (i) and (ii) above, no such registration statement or opinion of counsel shall be necessary for a transfer by such Purchaser to a partner (or retired partner) of Purchaser, or transfers by gift, will or intestate succession to any spouse or lineal descendants or ancestors, if all transferees agree in writing to be subject to the terms hereof to the same extent as if they were Purchasers hereunder as long as the consent of the Company is obtained.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify><I>f)</I></P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify><I>No Backup Withholding. &nbsp;</I>The Social Security Number or taxpayer identification shown in this Agreement is correct, and the Purchaser is not subject to backup withholding because (i)&nbsp;the Purchaser has not been notified that he or she is subject to backup withholding as a result of a failure to report all interest and dividends or (ii) the Internal Revenue Service has notified the Purchaser that he or she is no longer subject to backup withholding.</P>
<P style="margin:0pt" align=justify><BR></P>
<A NAME="_Toc357899561"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify><I>g)</I></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt" align=justify><I>Accredited Investor Status (Please check one)</I>.<I> </I>&nbsp;Purchaser </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:36pt; font-size:12pt" align=justify>_____ is </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:36pt; font-size:12pt" align=justify>_____ is not </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify>an &#147;accredited investor&#148; as such term is defined in Rule 501 under the Act.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>4. </P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>REPRESENTATIONS, WARRANTIES AND AGREEMENTS BY COMPANY</U>: &nbsp;The Company hereby represents, warrants and agrees as follows:</P>
<P style="margin:0pt" align=justify><BR></P>
<A NAME="_Toc357899551"></A><P style="margin:0pt" align=justify><BR>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt; page-break-before:always" align=justify><I>a)</I></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt" align=justify><I>Authority of Company</I>. &nbsp;The Company has all requisite authority to execute and deliver this Agreement and to carry out and perform its obligations under the terms of this Agreement.<A NAME="_Toc357899552"></A></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify><I>b)</I></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt" align=justify><I>Authorization</I>. &nbsp;All actions on the part of the Company necessary for the authorization, execution, delivery and performance of this Agreement by the Company and the performance of the Company&#146;s obligations hereunder has been taken or will be taken prior to the issuance of the Securities. &nbsp;This Agreement, when executed and delivered by the Company, shall constitute valid and binding obligations of the Company enforceable in accordance with their terms, subject to laws of general application relating to bankruptcy, insolvency, the relief of debtors and, with respect to rights to indemnity, subject to federal and state securities laws. &nbsp;The issuance of the Securities will be validly issued, fully paid and nonassessable, will not violate any preemptive rights, rights of first refusal, or any other rights granted by the Company, and will be issued in compliance with all applicable federal and state securities laws, and will be free of any liens or encumbrances, other than any liens or encumbrances created by or imposed upon the Purchaser through no action of the Company; provided, however, that the Securities may be subject to restrictions on transfer under state and/or federal securities laws as set forth herein or as otherwise required by such laws at the time the transfer is proposed.<A NAME="_Toc357899553"></A></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify><I>c)</I></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt" align=justify><I>Governmental Consents</I>. &nbsp;All consents, approvals, orders, or authorizations of, or registrations, qualifications, designations, declarations, or filings with, any governmental authority required on the part of the Company in connection with the valid execution and delivery of this Agreement, the offer, sale or issuance of the Securities, or the consummation of any other transaction contemplated hereby shall have been obtained, except for notices required or permitted to be filed with certain state and federal securities commissions, which notices will be filed on a timely basis.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>5.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>INDEMNIFICATION</U>: &nbsp;The Purchaser hereby agrees to indemnify and defend the Company and its officers and directors and hold them harmless from and against any and all liability, damage, cost or expense incurred on account of or arising out of:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>a)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Any breach of or inaccuracy in the Purchaser&#146;s representations, warranties or agreements herein;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>b)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Any disposition of any Securities contrary to any of the Purchaser&#146;s representations, warranties or agreements herein;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>c)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Any action, suit or proceeding based on (i) a claim that any of said representations, warranties or agreements were inaccurate or misleading or otherwise cause for obtaining damages or redress from the Company or any director or officer of the Company under the Act, or (ii) any disposition of any Securities.</P>
<P style="margin:0pt" align=justify><BR></P>
<A NAME="_Toc357899562"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">6.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt"><U>M<A NAME="_Toc357899563"></A>ISCELLANEOUS</U>:</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify><I>a)</I></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt" align=justify><I>Binding Agreement</I>. &nbsp;The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the Parties. &nbsp;Nothing in this Agreement, expressed or implied, is intended to confer upon any third party any rights, remedies, </P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt; page-break-before:always" align=justify>obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.<A NAME="_Toc357899564"></A></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify><I>b)</I></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt" align=justify><I>Governing Law; Venue</I>. &nbsp;This Agreement shall be governed by and construed under the laws of the State of California as applied to agreements among California residents, made and to be performed entirely within the State of <A NAME="_Toc357899565"></A>California. &nbsp;The Parties agree that any action brought to enforce the terms of this Agreement will be brought in the appropriate federal or state court having jurisdiction over San Francisco, California, United States of America.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify><I>c)</I></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt" align=justify><I>Counterparts</I>. &nbsp;This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.<A NAME="_Toc357899566"></A></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify><I>d)</I></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt" align=justify><I>Titles and Subtitles</I>. &nbsp;The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.<A NAME="_Toc357899567"></A></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify><I>e)</I></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt" align=justify><I>Notices</I>. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the Party to be notified, (b) when sent by confirmed facsimile if sent during normal business hours of the recipient, if not, then on the next business day, or (c) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. &nbsp;All communications shall be sent as follows:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>If to the Company:</P>
<P style="line-height:14pt; margin:0pt; text-indent:180pt; font-size:12pt" align=justify>Bitzio, Inc.</P>
<P style="line-height:14pt; margin:0pt; text-indent:180pt; font-size:12pt">548 Market Street, Suite 18224</P>
<P style="line-height:14pt; margin:0pt; text-indent:180pt; font-size:12pt">San Francisco, CA &nbsp;94104</P>
<P style="line-height:14pt; margin:0pt; text-indent:180pt; font-size:12pt">Facsimile (801) 302-1037</P>
<P style="line-height:14pt; margin:0pt; text-indent:180pt; font-size:12pt" align=justify>Attn: &nbsp;President and Secretary</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:36pt; font-size:12pt" align=justify>with a copy to:</P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; text-indent:180pt; font-size:12pt" align=justify>The Lebrecht Group, APLC</P>
<P style="line-height:14pt; margin:0pt; text-indent:216pt; font-size:12pt" align=justify>406 W. South Jordan Parkway, Suite 160</P>
<P style="line-height:14pt; margin:0pt; text-indent:216pt; font-size:12pt" align=justify>South Jordan, UT &nbsp;84095</P>
<P style="line-height:14pt; margin:0pt; text-indent:216pt; font-size:12pt" align=justify>Attn: &nbsp;Brian A. Lebrecht, Esq.</P>
<P style="line-height:14pt; margin:0pt; text-indent:216pt; font-size:12pt" align=justify>Facsimile (801) 983-4958</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">If to Purchaser:</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:180pt; font-size:12pt">Facsimile (___) </P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-size:12pt" align=justify>&nbsp;or at such other address as the Company or Purchaser may designate by ten (10) days advance written notice to the other Party hereto.<A NAME="_Toc357899568"></A></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify><I>f)</I></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt" align=justify><I>Modification; Waiver</I>. &nbsp;No modification or waiver of any provision of this Agreement or consent to departure therefrom shall be effective unless in writing and approved by the Company and the Purchaser.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt; page-break-before:always" align=justify><I>g)</I></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt" align=justify><I>Entire Agreement; Successors</I>. &nbsp;This Agreement and the Exhibits hereto constitute the full and entire understanding and agreement between the Parties with regard to the subjects hereof and no Party shall be liable or bound to the other Party in any manner by any representations, warranties, covenants and agreements except as specifically set forth herein. &nbsp;The representations, warranties and agreements contained in this Agreement shall be binding on the Purchaser&#146;s successors, assigns, heirs and legal representatives and shall inure to the benefit of the respective successors and assigns of the Company and its directors and officers.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify><I>h)</I></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt" align=justify><I>Expenses</I>. &nbsp;Each Party shall pay their own expenses in connection with this Agreement. &nbsp;In addition, should either Party commence any action, suit or proceeding to enforce this Agreement or any term or provision hereof, then in addition to any other damages or awards that may be granted to the prevailing Party, the prevailing Party shall be entitled to have and recover from the other Party such prevailing Party&#146;s reasonable attorneys&#146; fees and costs incurred in connection therewith.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify><I>i)</I></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt" align=justify><I>Currency</I>. &nbsp;All currency is expressed in U.S. dollars.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-size:12pt; page-break-before:always" align=justify>IN WITNESS WHEREOF,<B> </B>the Parties have executed this Securities Purchase Agreement<B> </B>as of the date first written above.</P>
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<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=247.75></TD><TD width=227.05></TD></TR>
<TR><TD valign=top width=330.333><P style="line-height:14pt; margin:0pt; font-size:12pt"><B>&#147;Company&#148;</B></P>
</TD><TD valign=top width=302.733><P style="line-height:14pt; margin:0pt; font-size:12pt"><B>&#147;Purchaser&#148;</B></P>
</TD></TR>
<TR><TD valign=top width=330.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=302.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=330.333><P style="line-height:14pt; margin:0pt; font-size:12pt">Bitzio, Inc.,</P>
</TD><TD valign=top width=302.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=330.333><P style="line-height:14pt; margin:0pt; font-size:12pt">a Nevada corporation</P>
</TD><TD valign=top width=302.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=330.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=302.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=330.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=302.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=330.333><P style="margin:0pt"><BR></P>
</TD><TD valign=top width=302.733><P style="margin:0pt"><BR></P>
</TD></TR>
<TR><TD valign=top width=330.333><P style="line-height:14pt; margin:0pt; font-size:12pt">By:</P>
</TD><TD valign=top width=302.733><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; font-size:12pt">By:</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">[insert]</P>
</TD></TR>
<TR><TD valign=top width=330.333><P style="line-height:14pt; margin:0pt; font-size:12pt">Its:</P>
</TD><TD valign=top width=302.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">To be completed by Purchaser:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=221.4></TD><TD width=221.4></TD></TR>
<TR><TD valign=top width=295.2><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>Email:</P>
</TD><TD valign=top width=295.2><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>SSN or FEIN:</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=295.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=295.2><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>Home Phone:</P>
</TD><TD valign=top width=295.2><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>Work Phone:</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>State of Residence: ________________________________________________________</P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>For how long?____________________________________________________________</P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>Do you maintain a residence in any other state? __________________________________</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>In which state(s) do you</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>File state income tax returns: _____________________________________________</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>Vote: _______________________________________________________________</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>Hold current driver&#146;s license: ____________________________________________</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>Maintain a house or apartment: ___________________________________________</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
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