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<FILING-DATE>20120918
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<CONFORMED-NAME>Bitzio, Inc.
<CIK>0001347078
<ASSIGNED-SIC>7372
<IRS-NUMBER>161734022
<STATE-OF-INCORPORATION>NV
<FISCAL-YEAR-END>1231
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<FILE-NUMBER>000-51688
<FILM-NUMBER>121097374
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<BUSINESS-ADDRESS>
<STREET1>548 MARKET STREET
<STREET2>SUITE 18224
<CITY>SAN FRANCISCO
<STATE>CA
<ZIP>94104
<PHONE>866-824-7881
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<FORMER-CONFORMED-NAME>ROCKY MOUNTAIN FUDGE CO IN
<DATE-CHANGED>20051215
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Date of Report (Date of earliest event reported): <font style="DISPLAY: inline; FONT-WEIGHT: bold">September 17</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">, 2012 (May 31, 2012)</font></font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Convertible Note Financing</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>As of September 12, 2012, for aggregate gross proceeds of $598,000 (which amounts were advanced to the Company on various dates beginning on May 31, 2012 through the Closing Date) and&#160;&#160;pursuant to the terms of a Note Purchase Agreement (the "Note Purchase Agreement"), the Company has issued and sold&#160;&#160;to seven accredited investors (1) secured convertible promissory notes (the "Convertible Notes") in an aggregate principal amount of $598,000 and (2) warrants to purchase the number of shares of common stock equal to two times the number of shares of common stock of the Company issuable upon the conversion of the Convertible Notes (the "Warrants").</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The Convertible Notes accrue interest at a rate of 10% per annum and are due and payable on the earlier of (a) one year from the date of issuance; (b) the occurrence of an event of default ("Event of Default") or (c) immediately prior to a Change of Control (as defined in the Convertible Note), in each case unless otherwise determined by the election of holders holding notes representing at least fifty-one percent (51%) of the outstanding aggregate outstanding principal amount due under the Convertible Notes ("Majority in Interest").</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>An Event of Default under the Convertible Notes includes (a) failure to pay any of the principal amount or interest due under the Convertible Notes; (b) failure to perform any covenant or breach of any provision under the loan documents; (c) the filing of any voluntary petition or action for relief under bankruptcy, reorganization, insolvency or moratorium law or other law relating to debtors or any assignment for the benefit of creditors; (d) the filing of any involuntary petition against the Company; and (e) any final judgment or order against the Company in excess of $250,000.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The Convertible Notes are convertible at the election of the holder into approximately 3,986,667 shares of common stock of the Company at a conversion rate of $0.15 per share (the "Conversion Price"). In the event the Company sells shares of common stock at a price per share that is less than the Conversion Price then in effect (the "New Issue Price"), excluding issuances under a board approved equity incentive plan or for bona fide services to officers and directors, immediately following such issuance, the Conversion Price then in effect shall be reduced to a price that is equal to the New Issue Price. The Convertible Notes are secured by a first priority interest in all of the Company's right, title, interest, claims and demands in and to certain property, including all accounts, chattel paper, deposit accounts and cash, documents, equipment, general intangibles, goods, instruments, intellectual property, inventory, investment property, letter-of-credit rights and proceeds from or related to each of the foregoing&#160;&#160;&#160;(the "Collateral") in accordance with the terms and conditions of a Security Agreement dated as of September 6, 2012 (the "Security Agreement").</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The Warrants are exercisable by the holder two years from the date of issuance at an exercise price of $0.30 per share.&#160;&#160;The Company has issued Warrants to purchase an aggregate of approximately 7,979,333 shares of common stock of the Company in connection with the Convertible Notes.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The terms of the Convertible Note, Note Purchase Agreement, Warrant and Security Agreement set forth herein are intended to be a summary only and are qualified in their entirety by the terms and conditions of the form of Convertible Note, Note Purchase Agreement, Warrant and Security Agreement attached to this current report on Form 8-K as Exhibits 4.1, 10.5, 10.6 and 10.7, respectively, and incorporated herein by this reference.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Settlement Agreement</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>In addition to the Release, the Company and the Shah Parties also agreed to (1) terminate the Consulting Agreement; (2) terminate that certain Option Agreement, dated September 30, 2011, by and between the Company and Shah, executed in connection with the Digispace Acquisition pursuant to which Shah was granted an option to purchase 500,000 shares of common stock of the Company; (3) consummate the transactions contemplated by that certain (i) Agreement, dated August 31, 2012, by and among the Company and the Shah Parties (the "Shah Agreement"); (ii) Asset Purchase Agreement, dated August 31, 2012, between the Company and Dvaraka (the "TAC Purchase Agreement"), pursuant to which the Company agreed to sell and Dvaraka agreed to acquire certain assets of the Company related to the&#160;&#160;informational product identified as "The App Code" and a platform that allows users to create mobile applications (the "TAC Business"); and (iii) Asset Purchase Agreement, dated August 31, 2012, among Digital Solutions, Inc., a California corporation ("Digital Solutions"), the Company and Dvaraka (the "Digital Solutions Purchase Agreement") pursuant to which the Company agreed to sell and&#160;&#160;Dvaraka agreed to acquire all of the Company's right, title and interest in certain assets , including but not limited to, the intellectual property rights, trade names, marks, domain names, websites and related goodwill owned and used by the Company in connection with the operation of Digispace (the "Digispace Business"), and assume certain liabilities of the Company.&#160;&#160;The Shah Agreement, TAC Purchase Agreement and Digital Solutions Purchase Agreement are each specifically described below.&#160;&#160;Pursuant to the terms of the Settlement Agreement, the Company and the Shah Parties have amicably resolved their differences and Shah resigned as an officer and director of the Company and any subsidiary of the Company.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The terms of the Settlement Agreement set forth herein are intended to be a summary only and are qualified in their entirety by the terms and conditions of the Settlement Agreement attached to this current report on Form 8-K as Exhibit 10.1 and incorporated herein by this reference.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Shah Agreement</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>In connection with the terms and conditions of the Shah Agreement, the Company and the Shah Parties agreed, among other things, that (1) Shah, or a designee, would acquire certain assets and liabilities of the Company associated with the Digispace Business, pursuant to the terms and conditions of the Digital Solutions Purchase Agreement; (2) Shah, or a designee, would acquire certain assets related to the TAC Business pursuant to the terms and conditions of the TAC Purchase Agreement; (3) the Company and the Shah Parties would waive any legal actions each may have against the other in connection with representations as to the liabilities of the Company under the purchase agreement related to the Digispace Acquisition and the Option Agreement; (4) the Company would grant Shah a perpetual, non-resellable, non-transferrable, non-sublicensable, royalty free-license to use the Company's Apwall and Adwall (5) the Consulting Agreement shall be terminated.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Shah also resigned as officer and director of the Company and agreed to restrict the sale of shares of common stock of the Company owned by the Shah Parties, or any affiliate thereof (the "Shah Shares"), as follows: (1) none of the Shah Shares shall be sold or transferred prior to January 1, 2012; (2) no more than 250,000 Shah Shares, in the aggregate, shall be sold or transferred between January 1, 2012 and June 30, 2013, provided that any such permitted sales shall not exceed one percent (1%) of the daily sales volume of the Company's shares of common stock on any day and that if an aggregate of 250,000 Shah Shares have not been sold as of June 30, 2013, Shah Shares may continue to be sold until an aggregate of 250,000 Shah Shares have been sold or transferred, at no more than one percent&#160;&#160;(1%) of the daily sales volume of the Company's shares of common stock on any day; and (3) during the period from July 1, 2013 to June 30, 2014, sales or transfers of Shah Shares shall comply with Rule 144, as such rule is applicable to officers and directors of the Company, regardless of whether Shah serves in any such capacity. Notwithstanding the foregoing, the Shah Shares may be sold or transferred on the same terms as provided in any lock-up program or agreement adopted by the Company and made applicable to its officers and directors, if the terms of such program or agreement are more favorable than the terms set forth in the Shah Agreement with respect to the sale or transfer of the Shah Shares.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The terms of the Shah Agreement set forth herein are intended to be a summary only and are qualified in their entirety by the terms and conditions of the Shah Agreement attached to this current report on Form 8-K as Exhibit 10.2&#160;&#160;and incorporated herein by this reference.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">TAC Purchase Agreement</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>In consideration for the consummation of the transactions set forth in the Shah Agreement and the Settlement Agreement, and pursuant to the terms and conditions of the TAC Purchase Agreement, Dvaraka acquired all of the Company's right, title and interest in the intellectual property rights, trade names, marks, domain names, websites and related goodwill owned and used by the Company in connection with the TAC Business (the "TAC Business Assets").&#160;&#160;The TAC Business Assets were acquired free and clear of all liabilities and any collections, payments or reimbursements received by Dvaraka after the closing of the sale of the TAC Business Assets in connection with sales or orders placed prior to the closing of the transactions set forth in the TAC Purchase Agreement and related to the TAC Business are required to be delivered to the Company, promptly following receipt by Dvaraka. Any collections, payments or reimbursements received by Dvaraka after the closing of the sale of the TAC Business Assets in connection with sales or orders placed following the closing of the sale of the TAC Business Assets and related to the TAC Business shall be retained by Dvaraka.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The terms of the TAC Purchase Agreement set forth herein are intended to be a summary only and are qualified in their entirety by the terms and conditions of the TAC Purchase Agreement attached to this current report on Form 8-K as Exhibit 10.3 and incorporated herein by this reference.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Digital Solutions Purchase Agreement</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>As additional consideration for the consummation of the transactions set forth in the Shah Agreement and the Settlement Agreement and pursuant to the terms and conditions of the Digital Solutions Purchase Agreement, Dvaraka acquired<font style="FONT-STYLE: italic; DISPLAY: inline">&#160;</font>the Company's right, title and interest in certain&#160;&#160;intellectual property rights, trade names, marks, domain names, websites and related goodwill owned and used by the Company and certain existing contracts and relationships of the Company with vendors, dealers, buyers and customers in connection with the Digispace Business sand assumed certain specified liabilities related to the Digispace Business.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The terms of the Digital Solutions Purchase Agreement set forth herein are intended to be a summary only and are qualified in their entirety by the terms and conditions of the Digital Solutions Purchase Agreement attached to this current report on Form 8-K as Exhibit 10.4&#160;&#160;and incorporated herein by this reference.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Item 2.03&#160;&#160;&#160; Creation of a Direct Financial Obligation or an Obligation under an Off-balance sheet Arrangement of a Registrant.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The information set forth in Item 1.01 of this Current Report on Form 8-K that relates to the creation of a direct financial obligation of the Company is incorporated by reference into this Item 2.03.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The information relating to the Company&#8217;s disposition of the TAC Business and the Digispace Business pursuant to the terms and conditions of the TAC Purchase Agreement and the Digital Solutions Purchase Agreement described in Item 1.01, is incorporated herein by reference.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Item 3.02&#160;&#160;&#160; Unregistered Sales of Equity Securities.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The information disclosed in Item&#160;1.01 of this Current Report on Form 8-K with respect to issuance and sale of the Convertible Notes and Warrants is incorporated herein by this reference. No commissions have been paid by the Company in connection with the sale of the Convertible Notes and Warrants. The Convertible Notes and Warrants were issued in reliance on the exemption from registration provided by Rule 506 of Regulation D as promulgated under the Securities Act of 1933, as amended, in that the Company did not engage in any general advertisement or general solicitation in connection with the offering of the Units.&#160;</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Item 5.02&#160;&#160;&#160; Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Effective September 6, 2012, Amish Shah resigned as a director of the Company.&#160;&#160;The information described above in Item 1.01 with respect to the events regarding Mr.&#160;&#160;Shah's resignation as a director of the Company is incorporated herein by this reference.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Effective September 12, 2012, William Schonbrun resigned as President and Chief Executive Officer of the Company.&#160;&#160;In addition, the Board of Directors of the Company (the "Board") appointed Mr. Schonbrun to serve as Chairman of the Board.&#160;&#160;Mr. Schonbrun's resignation as a director of the Company was not because of any disagreement with the Company on any matters relating to the Company's operations, policies or practices.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Effective September 12, 2012, Peter Henricsson was appointed to serve as the Company's new President and Chief Executive Officer and member of its Board of Directors.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Peter Henricsson</font>, 60, is our President and Chief Executive Officer, effective as of September 12, 2012. Mr. Henricsson has been the Chief Executive Officer and a director of Rocap Marketing Inc. from September 2, 2010 to the present. From 1996 to 2002, Mr. Henriccson served as Chairman and CEO of Cellpoint, Inc. ("Cellpoint"), an entity focuses on providing location based services in the technologies and services sector.&#160;Since 2002, Mr. Henricsson has focused his time and efforts as a venture capital investor and strategic advisor to emerging growth companies. &#160;</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Mr. Henricsson is a principal of Technor Services Ltd. ("Technor") and therefore has a material financial interest in certain transactions between Technor and the Company.&#160;&#160;The Company has issued Convertible Notes consisting of an aggregate principal amount of $300,000 and Warrants to purchase up to 4,000,000 shares of common stock to Technor.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>On September 12, 2012, the Company issued a press release announcing, among other things, (1) the resignations of Amish Shah as a director of the Company and William Schonbrun as Chief Executive Officer and President of the Company, and (2) the appointments of Peter Henricsson as the Chief Executive Officer and President and Mr. Schobrun as Chairman of the Board. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.</font></div>

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<TYPE>EX-4.1
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<DESCRIPTION>FORM OF CONVERTIBLE PROMISSORY NOTE
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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="FONT-VARIANT: small-caps; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">THIS CONVERTIBLE PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.&#160;&#160;NO SALE OR DISPOSITION MAY BE EFFECTED EXCEPT IN COMPLIANCE WITH RULE 144 UNDER SAID ACT OR AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL FOR THE HOLDER REASONABLY SATISFACTORY TO THE PAYOR THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT.</font></div>

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<td width="50%" style="TEXT-ALIGN: right"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">September __, 2012</font></font></td>
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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">For value received, <font style="FONT-VARIANT: small-caps; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-WEIGHT: bold">Bitzio, Inc.</font>, a Nevada corporation (&#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Payor</font>&#8221; or the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Company</font>&#8221;) promises to pay the obligations of the Company hereunder to <font style="FONT-VARIANT: small-caps; DISPLAY: inline; FONT-WEIGHT: bold">[*]</font> or its assigns (&#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Holder</font>&#8221;) the principal sum of $[*] with simple interest on the outstanding principal amount at the rate of 10% per annum calculated using a 360-day year. This note is issued as part of a series of substantially similar convertible promissory notes (each a &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Note</font>&#8221; and, collectively, the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Notes</font>&#8221;) issued or to be issued pursuant to the terms of that certain Note Purchase Agreement dated as of September 6, 2012 (the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Agreement</font>&#8221;) to the persons executing the Agreement or their assigns (collectively, the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Holders</font>&#8221;).&#160;&#160;Capitalized terms used but not defined in this Note will have the meaning given such terms in the Agreement.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">1.</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Payments.</font>&#160;&#160;All payments of interest and principal will be in lawful money of the United States of America and will be made pro rata among all Holders in accordance with the amounts due under the Notes.&#160;&#160;All payments will be applied first to accrued interest, and thereafter to principal.&#160;&#160;Except as otherwise expressly provided herein, interest shall not be payable until the Maturity Date (as defined herein).</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">5.</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Prepayment.</font>&#160;&#160;The Company shall have the right to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section 5.&#160;&#160;At the Payor&#8217;s election, the Payor shall make payment of the Optional Prepayment Amount (as defined below) to or upon the order of the Holder, or as specified by the Holder in writing to the Payor. &#160;If the Payor exercises its right to prepay the Note, the Payor shall make payment to the Holder of an amount in cash (the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Optional Prepayment Amount</font>&#8221;) equal to 120%, multiplied by the sum of: (w) the then outstanding principal amount of this Note <font style="DISPLAY: inline; TEXT-DECORATION: underline">plus</font> (x)&#160;accrued and unpaid interest on the unpaid principal amount of this Note and any other amounts payable under this Note.&#160;&#160;.&#160;&#160;In the event of the Company&#8217;s exercise of its right of prepayment as set forth above, the Holder shall have no right to convert the Note pursuant to Section 2, above, or otherwise.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">6.</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Security and Guaranty.</font>&#160;&#160;This Note is secured in accordance with the terms of the Security Agreement.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">7.</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Default.</font>&#160;&#160;If there is any Event of Default under this Note, at the option and upon the declaration by Holder and written notice to the Payor (which election and notice will not be required in the case of an Event of Default under Sections 7(c) or 7(d)), this Note will accelerate and all principal and unpaid accrued interest will become immediately due and payable.&#160;&#160;The occurrence of any one or more of the following will constitute an event of default (&#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Event of Default</font>&#8221;):</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">(a)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Payor fails to pay any of the principal amount or interest due under this Note or any of the other Notes on the date the same becomes due and payable, and such failure continues for 10 days after written notice thereof to Payor;</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">(b)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Payor defaults in its performance of any covenant or breaches any provision under the Loan Documents (after any required notice and cure period or if not so provided, if such default or breach shall continue for 30 days after delivery of written notice to the Payor);</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">(c)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Payor files any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium law or any other law for the relief of, or relating to, debtors, now or hereafter in effect, or makes any assignment for the benefit of creditors or takes any corporate action in furtherance of any of the foregoing;</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">8.</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Adjustment for Certain Issuances</font>.&#160;&#160;If and whenever on or after the date of this Note, the Company issues or sells any shares of Common Stock (or securities convertible into shares of Common Stock) for a consideration per share (the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">New Issuance Price</font>&#8221;) less than a price equal to the Conversion Price in effect immediately prior to such issue or sale or deemed issuance or sale (the foregoing a &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Dilutive Issuance</font>&#8221;), then immediately after such Dilutive Issuance, the Conversion Price then in effect shall be reduced to an amount equal to the New Issuance Price; <font style="FONT-STYLE: italic; DISPLAY: inline">provided however</font>, the Conversion Price shall not be diluted for issuances of Common Stock or common stock equivalents issued under a board approved equity incentive plan or shares issued for bona fide services to officers and directors.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">9.</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Waiver.</font>&#160;&#160;Payor hereby waives default, demand for payment, notice, presentment, protest and notice of nonpayment or dishonor and all other notices or demands relative to this instrument.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">10.</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Maximum Rate of Interest.</font> Notwithstanding any provision of this Note or the Loan Documents to the contrary, Payor shall not be obligated to pay interest pursuant to this Note in excess of the maximum rate of interest permitted by the laws of any state determined to govern this Note or the laws of the United States applicable to loans in such state. If any provisions of this Note shall ever be construed to require the payment of any amount of interest in excess of that permitted by applicable law, then the interest to be paid pursuant to this Note shall be held subject to reduction to the amount allowed under applicable law and any sums paid in excess of the interest rate allowed by law shall be applied in reduction of the principal balance outstanding pursuant to this Note. Holder acknowledges that it has been contemplated at all times by Payor that the laws of the State of California will govern the maximum rate of interest that it is permissible for Holder to charge Payor pursuant to this Note..</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">11.</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Modification; Waiver</font>.&#160;&#160;No modification or waiver of any provision of this Note or consent to departure therefrom will be effective unless in writing and approved by (i) the Company and (ii) the Holders holding Notes representing at least fifty one percent (51%) of the outstanding aggregate principal under the Notes (a &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Majority in Interest</font>&#8221;).&#160;&#160;Any provision of the Notes may be amended or waived by the written consent of the Company and the Majority in Interest, wherein such amendment or waiver shall be binding upon all Holders of Notes.&#160;&#160;Notwithstanding the foregoing, the written consent of Holder shall be required to reduce the principal amount of this Note, or reduce the rate of interest of this Note.&#160;&#160;&#8220;Affiliate&#8221; shall mean, with respect to a specified Person, an individual, firm, corporation, partnership, association, limited liability company, trust or any other entity (collectively, a &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Person</font>&#8221;) who, directly or indirectly, controls, is controlled by or is under common control with such Person, including, without limitation, any general partner, managing member, officer or director of such Person or any venture capital or investment fund now or hereafter existing that is controlled by one or more general partners or managing members of, or shares the same management company with, such Person.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">12.</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Severability.</font>&#160;&#160;If any provision of this Note becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Note, and such court will replace such illegal, void or unenforceable provision of this Note with a valid and enforceable provision that will achieve, to the extent possible, the same economic, business and other purposes of the illegal, void or unenforceable provision. The balance of this Note shall be enforceable in accordance with its terms.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">13.</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Choice of Law; Forum Selection; Consent to Jurisdiction. </font>IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS NOTE AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES THEREOF REGARDING CONFLICTS OF LAWS, AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. THE COMPANY AND EACH PURCHASER HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN LOS ANGELES COUNTY IN THE STATE OF CALIFORNIA SHALL HAVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN OR AMONG THE PURCHASERS, ON THE ONE HAND, AND COMPANY, ON THE OTHER HAND, PERTAINING TO THIS NOTE OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS NOTE.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">14.</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Miscellaneous.</font> This Note may be transferred only upon its surrender by Holder to the Payor for registration of transfer, duly endorsed, or accompanied by a duly executed written instrument of transfer in form reasonably satisfactory to the Payor.&#160;&#160;In such event, this Note will be reissued to, and registered in the name of, the transferee, or a new Note for like principal amount and interest will be issued to, and registered in the name of, the transferee.&#160;&#160;Interest and principal will be paid solely to the registered holder of this Note.&#160;&#160;Such payment will be full discharge of Payor&#8217;s obligation to pay such interest and principal.</font></div>

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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>3
<FILENAME>btzo_ex101.htm
<DESCRIPTION>COMPROMISE AND SETTLEMENT AGREEMENT AND GENERAL RELEASE
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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">COMPROMISE AND SETTLEMENT AGREEMENT AND GENERAL RELEASE</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">This&#160;&#160;Settlement&#160;&#160;Agreement&#160;&#160;(&#8220;Agreement&#8221;) is&#160;&#160;made&#160;&#160;by&#160;&#160;and&#160;&#160;between&#160;&#160;Bitzio,&#160;&#160;Inc.,&#160;&#160;a </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Delaware corporation (&#8220;Bitzio&#8221;) and Dvaraka Marketing, LLC, a California limited liability </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">company (&#8220;Dvaraka&#8221;) and Amish Shah, an individual residing in California (&#8220;Shah&#8221;).&#160;&#160;Shah and Dvaraka are herein after referred to jointly as &#8220;the Shah Parties.&#8221;&#160;&#160;This Agreement is effective as of this 15<font style="DISPLAY: inline; FONT-SIZE: 10pt">th</font><font style="DISPLAY: inline; FONT-SIZE: 10pt">&#160;</font>day of August, 2012 (&#8220;Settlement Effective Date&#8221;).&#160;&#160;Bitzio and the Shah Parties are sometimes referred to collectively herein as the &#8220;Parties&#8221; and/or individually as a &#8220;Party.&#8221;</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Dvaraka and Bitzio entered into a consulting agreement dated December 1, 2011 (the </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Dvaraka Consulting Agreement&#8221;) pursuant to which Dvaraka provides the services of Shah.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Shah and Bitzio have entered into a stock option agreement dated September 30, 2011 (the &#8220;Option Agreement&#8221;) in connection with the acquisition of Digispace Solutions, LLC, pursuant to which Shah was granted an option to purchase 500,000 shares of common stock of Bitzio (the &#8220;Options&#8221;).</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">C.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Pursuant to agreements dated August 3, 2011, September 1, 2011, September 30, 2011, and December 19, 2011, Bitzio (through its wholly owned subsidiary Digital Solutions, Inc. dba DigiSpace Holdings, Inc.),&#160;&#160;purchased&#160;&#160;on&#160;&#160;January&#160;&#160;10,&#160;&#160;2012&#160;&#160;all&#160;&#160;of&#160;&#160;the&#160;&#160;equity&#160;&#160;of&#160;&#160;Digispace Solutions LLC from Shah and his former partner, Jose Rivera (collectively, the &#8220;Digispace Share Acquisition Agreement&#8221;).</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">D.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Subsequently, Digital Solutions, LLC merged into Digital Solutions, Inc. with Digital </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Solutions, Inc. the surviving entity.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">E.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Certain disputes have arisen regarding the terms of the Dvaraka Consulting Agreement and the DigiSpace Share Acquisition Agreement and each party&#8217;s compliance with the terms thereof, as well as disputes over Shah&#8217;s performance of his duties as an officer and director of Bitzio and/or certain of its subsidiaries, and various actions taken in relation thereto (the &#8220;Dispute&#8221;).</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">F.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Following good faith negotiations, with no Party admitting liability, the Parties seek to extinguish all claims which they have or may have against each other arising from the&#160;&#160;Dispute, save and except only breaches of obligations of this Agreement and the related agreements incorporated herein.</font></div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">I.&#160; AGREEMENT</font><br>
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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Except for the obligations set forth in this Agreement, each party, in consideration of the promises and concessions made by the other, hereby compromises and settles any and all past, present, or future claims, demands, obligations, or causes of action, whether based in tort, contract, or other theory or theories of recovery, at law or in equity, which that party has against the other party and/or the other party's predecessors and/or successors in interest, heirs, assigns, and agents, arising from the Dispute.</font></div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">II.&#160; CONSIDERATION</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">In consideration of this Settlement Agreement, the Parties have entered into the mutual releases set forth below and the agreements and covenants set forth herein.&#160;&#160; In addition, the Parties hereby (a) terminate the Dvaraka Consulting Agreement and the Option Agreement, and (b) concurrently enter into the Shah Agreement in the form attached hereto as Exhibit A, including&#160; the&#160; DigiSpace&#160; Asset&#160; Purchase&#160; Agreement&#160; and&#160; the&#160; TAC&#160; Purchase&#160; Agreement referenced therein.&#160; The DigiSpace Asset Purchase Agreement, TAC Purchase Agreement and the Shah Agreement are incorporated herein as though fully set forth.&#160; This Agreement is the Settlement Agreement referenced in Article 1.3 of the Shah Agreement.&#160;&#160; Shah hereby resigns as an officer and director of Bitzio and of each and every subsidiary of Bitzio.</div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">III.&#160; RELEASES</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Release</font><font style="DISPLAY: inline; TEXT-DECORATION: underline"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline">by</font><font style="DISPLAY: inline; TEXT-DECORATION: underline"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline">the</font><font style="DISPLAY: inline; TEXT-DECORATION: underline"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Shah</font><font style="DISPLAY: inline; TEXT-DECORATION: underline"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Parties</font>. With the exception of the representations, warranties, and/or obligations under this Agreement, which are not released, Shah and Dvaraka, for and on behalf of himself and itself, and his and its present and future executors, trustees, beneficiaries, administrators, trusts, parent, subsidiary and affiliated companies, successors, affiliates, assigns, officers, partners, directors, employees, shareholders, managers, members, lenders, attorneys, and agents, or any and all other persons who could claim through him or it (collectively, the &#8220;Shah Releasors&#8221;), do hereby unconditionally and irrevocably remise, release, acquit, forever discharge and covenant not to sue Bitzio, or its trustees, beneficiaries, administrators, trusts, parent companies, subsidiaries, successors, affiliates, assigns, officers, directors, employees, shareholders, managers, members, and agents, including, without limitation, all current and former officers and directors of Bitzio and each of its subsidiaries, from any and all claims, counterclaims, actions, causes of action, suits, debts, demands, set-offs, costs, losses, expenses, sums of money, accounts, reckonings, debts, charges, complaints, controversies, disputes, damages, judgments, executions, promises, omissions, duties, agreements, indemnitees, rights, and any and all demands, obligations and liabilities, of whatever kind or character, direct or indirect, both in law and in equity, whether known or unknown or capable of being known, suspected or unsuspected, and whether or not concealed or hidden, which have existed or may have existed or which do exist or may exist.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">Release by Bitzio. With the exception of the representations, warranties, and/or obligations under this Agreement, which are not released, Bitzio, for and on behalf of itself, and its subsidiaries, affiliated companies, successors, affiliates, assigns, officers, partners, directors, employees, shareholders, managers, members, lenders, attorneys, and agents, or any and all other persons who could claim through it (collectively, the Bitzio Releasors), do hereby unconditionally and irrevocably remise, release, acquit, forever discharge and covenant not to sue Shah or Dvaraka, or his or its administrators, executors, trustees, beneficiaries, administrators, trusts, parent companies, subsidiaries, successors, affiliates, assigns, officers, directors, employees, shareholders, managers, members, and agents, including, without limitation, all current and former officers and directors of Dvaraka and each of its subsidiaries, from any and all claims, counterclaims, actions, causes of action, suits, debts, demands, set-offs, costs, losses, expenses, sums of money, accounts, reckonings, debts, charges, complaints, controversies, disputes, damages, judgments, executions, promises, omissions, duties, agreements, indemnitees, rights, and any and all demands, obligations and liabilities, of whatever kind or character, direct or indirect, both in law and in equity, whether known or unknown or capable of being known, suspected or unsuspected, and whether or not concealed or hidden, which have existed or may have existed or which do exist or may exist.</div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">It is the intention of the Shah Parties and Bitzio that this Agreement be effective as a full release of each and every matter to which specific or general reference is made herein. The Shah Parties and Bitzio expressly acknowledge the limiting provisions of&#160;&#160;<font style="FONT-STYLE: italic; DISPLAY: inline; TEXT-DECORATION: underline">Cal.Civ.C</font>., &#167; 1542.&#160;&#160;&#160;The Shah Parties and Bitzio each acknowledge that each is familiar with, and has discussed with their respective counsel, <font style="FONT-STYLE: italic; DISPLAY: inline">&#167; 1542</font>, which provides as follows:</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The Shah Parties and Bitzio each waives and relinquishes any rights and benefits which each has or may have under <font style="FONT-STYLE: italic; DISPLAY: inline">&#160;</font><font style="FONT-STYLE: italic; DISPLAY: inline; TEXT-DECORATION: underline">Cal.Civ.C.</font><font style="FONT-STYLE: italic; DISPLAY: inline">&#160;</font><font style="FONT-STYLE: italic; DISPLAY: inline">&#167;</font><font style="FONT-STYLE: italic; DISPLAY: inline">&#160;</font><font style="FONT-STYLE: italic; DISPLAY: inline">1542</font><font style="FONT-STYLE: italic; DISPLAY: inline">&#160;</font>to the full extent that each may lawfully waive all such rights and benefits pertaining to the subject matter of this Agreement. The Shah Parties and Bitzio each acknowledge that each is aware that they may hereafter discover facts in addition to or different from those which they now know or believe to be true with respect to the subject matter of the Agreement, but it is their mutual intention herein to fully and finally forever settle and release any and all matters, disputes, and differences, known or unknown, which heretofore have existed between them, except as are created herein. In furtherance of this mutual intent, the releases herein given shall be, and will remain, in effect as full and complete general releases, notwithstanding discovery or existence of any additional or different facts hereafter.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The Shah Parties and Bitzio agree that the settlement and compromise herein is in their collective best interests.</font></div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">V.&#160; MUTUAL REPRESENTATIONS</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Such Party has received competent and independent legal advice from its counsel regarding the meaning and legal effect of and the advisability of entering into this Agreement and fully understands the same;</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">B.&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;Each of the Parties is the owner of the claims herein released and have not assigned to any person or entity any claims against any other Party whom they are releasing herein;</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">C. Each person executing this Agreement warrants that he or she has the full right and authority to enter into this Agreement on behalf of the Party on whose behalf he or she purports to act and the full right and authority to bind fully said Party to the terms and obligations of this Agreement; and</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">D. This Agreement and the releases set forth above shall be valid and enforceable notwithstanding any breach or failure to perform by any Party of this Agreement or of the DigiSpace Asset Purchase Agreement or Shah Consulting Agreement.</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">The Parties agree that they will not make any negative or derogatory remarks about the other party. In this regard, the Parties agree that they each shall be entitled to indicate that, the dispute between the Parties has been resolved amicably. Any other statement about the relationship of the Parties, including any press release or communication to vendors, suppliers, employees and third-parties, if beyond merely confirming certain terms of this Agreement, shall be provided to the other party in advance for approval or disapproval, provided that if such disclosure is required by applicable law, the other party shall act reasonably and provide either approval or comments, in writing, within two (2) days of request, or shall be deemed to have granted approval.</div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">VII.&#160;&#160;&#160;ADDITIONAL COVENANTS AND CONDITIONS</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Successors,</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Assigns</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">and</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Third</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Parties:</font>&#160;&#160;This Agreement shall inure to the benefit of and be binding upon the Parties to this Agreement and their respective owners, heirs, successors, assigns, attorneys, agents, employees, directors, consultants, advisors, representatives (past and present), and each of them.&#160;&#160;Further, the releases of the Parties and entities who are not signatories to this Agreement are made expressly for their benefit and they shall be deemed third party beneficiaries of this Agreement and the General Releases contained herein.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Further</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Assurances</font>:&#160;&#160;&#160;The Parties agree to perform such acts and to prepare, execute and file any documents or stipulations reasonably required to perform the covenants contained herein, to satisfy the conditions contained herein or to give full force and effect to this Agreement.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">C.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Meaning</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">of</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Pronouns</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">and</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Effect</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">of</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Captions</font>:&#160;&#160;&#160;As used in this Agreement, the masculine, feminine and/or neuter gender, in the singular or plural, shall be deemed to include the others whenever the text so requires. Captions and paragraph headings are inserted solely for convenience and shall not be deemed to restrict or limit the meaning of the text.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">D.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Interpretation</font>:&#160;&#160;Each Party acknowledges that it has received independent legal advice regarding this Agreement and has had the opportunity to negotiate modifications to the language of this Agreement.&#160;&#160;&#160;Accordingly, in any dispute regarding the interpretation or construction of this Agreement, no presumption shall operate in favor of or against any Party by virtue of its role in drafting or not drafting the terms and conditions set forth herein.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">E.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Admissions</font>:&#160;&#160;This Agreement is intended to be in compromise and settlement of doubtful, disputed and unliquidated claims.&#160;&#160;&#160;Nothing herein shall constitute or be asserted as constituting any admission of liability or wrongdoing by or against any Party.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">F.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Counterparts</font>:&#160;&#160;This Agreement may be signed in one or more counterparts, each of which shall be deemed an original.&#160;&#160;This Agreement shall be deemed fully executed when all <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Parties have executed at least one of the counterparts, even though no single counterpart bears all such signatures.</font></font></div>

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<div style="TEXT-ALIGN: left; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">G.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Notices</font>:&#160;All&#160;notices&#160;required&#160;hereunder&#160;may&#160;be&#160;given&#160;as follows:</font></div>

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<table cellpadding="0" cellspacing="0" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
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<div style="TEXT-ALIGN: left; TEXT-INDENT: 63pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">(a)</font></div>
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<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">To the Shah Parties:</font></div>
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<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Dana B. Robinson, Esq. Techlaw LLP</font></div>
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<td valign="top" width="12%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<td valign="top" width="17%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<td valign="top" width="71%" style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">3655 Nobel Dr. Ste. 620</font></div>

<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">San Diego, CA 92122</font></div>
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<td valign="top" width="71%" style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">dana@techlawllp.com</font></div>
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<td valign="top" width="71%" style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></td>
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<td valign="top" width="12%" style="TEXT-ALIGN: left; TEXT-INDENT: 63pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 63pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">(b)</font></div>
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<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">To Bitzio</font></div>
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<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Bitzio, Inc.</font></div>
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<td valign="top" width="17%" style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></td>
<td valign="top" width="71%" style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">548 Market Street, Suite 18224</font></font></td>
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<td valign="top" width="71%" style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">San Francisco, California 94104</font></font></td>
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<div><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">With a copy by email to:</font></font></div>

<div><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">David Lewis</font></font></div>
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<td valign="top" width="17%" style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></td>
<td valign="top" width="71%" style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">davidllewis@rogers.com</font></font></td>
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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">H.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Governing </font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Law</font>:&#160;&#160;&#160;&#160;This&#160;&#160;Agreement&#160;&#160;shall&#160;&#160;be&#160;&#160;governed&#160;&#160;by&#160;&#160;and&#160;&#160;construed&#160;&#160;in accordance with the laws of the State of California and deemed performed in the County of San Diego, California.&#160;&#160;The parties consent to the jurisdiction and venue of the U.S. District Court, Southern District of California, as set forth above.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">IN</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">WITNESS</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">WHEREOF</font>, the Parties have executed this Settlement Agreement effective on the day and year set forth above.</font></div>

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<td valign="top" width="35%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">DVARAKA<font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">MARK</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">E</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">T</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">I</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">NG</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">, </font><font style="DISPLAY: inline; FONT-WEIGHT: bold">LL</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">C</font>, a limited liability</font></td>
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<td valign="top" width="35%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">company formed under the laws of California</font></td>
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<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>4
<FILENAME>btzo_ex102.htm
<DESCRIPTION>AGREEMENT
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<div style="TEXT-ALIGN: right"><font style="FONT-WEIGHT: bold">EXHIBIT 10.2</font></div>

<div>&#160;</div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">AGR</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">EE</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">M</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">NT</font></font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">THIS AGREEMENT (the "Agreement") is effective as of August 31, 2012 (the &#8220;Effective Date&#8221;)</font></div>

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<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">B&#160;E&#160;T&#160;W&#160;E&#160;E&#160;N:</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 72pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">DVARAKA</font><font style="DISPLAY: inline; FONT-WEIGHT: bold"> </font><font style="DISPLAY: inline; FONT-WEIGHT: bold">MARK</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">E</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">T</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">I</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">NG</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-WEIGHT: bold">,</font><font style="DISPLAY: inline; FONT-WEIGHT: bold"> </font><font style="DISPLAY: inline; FONT-WEIGHT: bold">LL</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">C</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> a limited liability company formed under the laws of the State of California<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> with a principal place of business at 8605 Santa Monica Blvd<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.,</font> Suite </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">57149, Los Angeles CA 90069 ( &#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">D</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">varaka</font>&#8221;)</font></div>

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<div style="TEXT-ALIGN: left; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">- and -</div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 72pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">AM</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">I</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">S</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">H</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">S</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">HAH</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> and individual with an address at 8605 Santa Monica Blvd<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.,</font> Suite 57149<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> Los Angeles CA&#160;&#160;90069 (&#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Shah</font>&#8221;)</font></div>

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<div style="TEXT-ALIGN: left; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">- and -</div>

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<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">B</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">I</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">T</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">Z</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">I</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">O</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-WEIGHT: bold">,</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">I</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">N</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">C.</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> a corporation incorporated under the laws of the State of Nevada<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> with a </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">principal&#160;place&#160;of&#160;business&#160;at&#160;548&#160;Market&#160;Street,&#160;Suite&#160;18224<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font>&#160;San&#160;Francisco<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font>&#160;California </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">94104&#160;(&#160;&#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">B</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">i</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">tz</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">i</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">o</font>&#8221;),</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">WHEREAS Dvaraka and Bitzio have entered into a consulting agreement dated December 1<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> 2011 (the &#8220;Consulting Agreement&#8221;) pursuant to which Dvaraka provides the services of Shah;</font></div>

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<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">THIS AGREEMENT WITNESSES that in consideration of the covenants and agreements contained herein and other good and valuable consideration<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> the sufficiency of which is hereby acknowledged<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> the Parties agree as follows:</font></div>

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TEXT-DECORATION: underline">IO</font></font></div>

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<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.1</font></div>
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<div style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Subject to the terms and conditions set out in a definitive Asset Purchase Agreement and in consideration of the terms and conditions of this Agreement<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> Bitzio agrees to sell to Shah and Shah agrees to acquire from Bitzio the assets and liabilities associated with Digispace Solutions LLC (&#8220;Digispace&#8221;) as set forth in the Asset Purchase Agreement set out in Schedule A attached hereto (the &#8220;Digispace Purchase Agreement&#8221;)<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font></font></div>
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<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.2</font></div>
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<div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The acquisition&#160;&#160;of Digispace&#160;&#160;shall be on an &#8220;As Is&#8221; basis&#160;&#160;and not affect&#160;&#160;any monies&#160;&#160;paid by Bitzio (directly or indirectly) to Digispace or Shah<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> investments made therein or debts incurred thereby.</font></div>
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<table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
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<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.3</font></div>
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<div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The Parties agree to waive any legal action they may have in connection with representations as to the liabilities of the company under the Digispace Agreement<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> as further set forth in the Settlement Agreement<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> attached hereto as Exhibit B (the &#8220;Settlement Agreement&#8221;)<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font></font></div>
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<div>
<table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
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<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.4</font></div>
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<div style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">As part of the acquisition of Digispace as set out in 1<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font>1 above<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> Bitzio shall include<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> <font style="FONT-STYLE: italic; DISPLAY: inline">i</font><font style="FONT-STYLE: italic; DISPLAY: inline">nter</font><font style="FONT-STYLE: italic; DISPLAY: inline"> </font><font style="FONT-STYLE: italic; DISPLAY: inline">a</font><font style="FONT-STYLE: italic; DISPLAY: inline">li</font><font style="FONT-STYLE: italic; DISPLAY: inline">a</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> the assets know as &#8220;The App Code&#8221; info product (&#8220;TAC&#8221;) and &#8220;Everyone Apps&#8221;. These assets shall be transferred to Shah (or as he directs) solely on an &#8220;As Is&#8221; basis with no representations or warranties of any nature. TAC includes any trademarks web information and other related materials, as set forth in the purchase agreement attached hereto as Exhibit C (the &#8220;TAC Purchase Agreement&#8221;)<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font></font></div>
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<div>
<table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
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<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.5</font></div>
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<div style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Any non-&#173;&#8208;Digispace expenses that Bitzio is currently charging to Digispace accounts will be transitioned to Bitzio prior to completion of the acquisition of Digispace<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font></font></div>
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<div>
<table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
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<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.6</font></div>
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<td width="1102" style="TEXT-ALIGN: justify">
<div style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Any costs or commissions related to Digispace or sales of TAC incurred prior to the acquisition, shall remain the responsibility of Bitzio<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> including<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> without limitation<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> $44<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font>051 owed to joint venture affiliates for past TAC commissions (the &#8220;JV&#8217;s&#8221;)<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> to be paid within forty-&#173;&#8208;five (45) days of closing. Payment to the JV&#8217;s will be facilitated by arranging to have Studio 23<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> Inc<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font> DBA: &#8220;App Empire&#8221; pay $44<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font>051 of the accounts payable due to Bitzio for September 2012 and October 2012 (the &#8220;Chad Funds&#8221;) to the trust account of Dana Robinson<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> with funds being paid by Robinson to the JV&#8217;s in the amounts set out in Exhibit D attached hereto. Should the Chad Funds not be sufficient to cover the sums due to JV&#8217;s by October 31, 2012<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> Shah shall provide written notice of the amount of the shortfall and Bitzio shall pay such amounts to Robinson within fifteen (15) days of receipt of the notice. In the event that Bitzio fails to make such payment (if necessary) Bitzio will agree to unlock Shah&#8217;s shares such that he may liquidate a sufficient amount of stock to repay the JV&#8217;s himself<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> and then seek reimbursement from Bitzio for any sums so paid. All sales of Bitzio stock shall be made in an orderly manner and shall be subject to all applicable regulations. Dvaraka is not responsible for accounting fees incurred as of the date of August 22<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> 2011.</font></div>
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<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">1.7</font></div>
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<div style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Shah&#8217;s merchant account contains a sum held in reserve which Shah will retain as the funds are released.</font></div>
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<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.8</font></div>
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<td width="1102" style="TEXT-ALIGN: justify">
<div style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Shah will take responsibility for hosting<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> at Shah&#8217;s expense<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> the seminar for Master Mind group members that was to be hosted by Bitzio<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font></font></div>
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<div>&#160;</div>

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<div id="PN" style="PAGE-BREAK-AFTER: always; WIDTH: 100%">
<div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: effontselection; FONT-SIZE: 10pt">2</font></div>

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<hr style="COLOR: black" noshade size="2">
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<table border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
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<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman">1</font><font style="DISPLAY: inline; FONT-FAMILY: times new roman">.</font><font style="DISPLAY: inline; FONT-FAMILY: times new roman">8</font></font></div>
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<div style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Shah shall be granted a perpetual<font style="DISPLAY: inline; FONT-FAMILY: times new roman">,</font> non-&#173;&#8208;resellable<font style="DISPLAY: inline; FONT-FAMILY: times new roman">,</font> non-&#173;&#8208;transferable<font style="DISPLAY: inline; FONT-FAMILY: times new roman">,</font> non-&#173;&#8208;sublicensable<font style="DISPLAY: inline; FONT-FAMILY: times new roman">,</font> royalty-&#173;&#8208; free license to use Bitzio&#8217;s Apwall and Adwall<font style="DISPLAY: inline; FONT-FAMILY: times new roman">,</font> which license is provided on an AS IS basis with not warranties or indemnities related thereto.</font></div>
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<table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
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<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.9</font></div>
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<td width="1102" style="TEXT-ALIGN: justify">
<div style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Bitzio will cooperate with Shah in the transfer of the Digispace assets<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> and the assets of TAC and EA<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> including<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> for a period of forty-&#173;&#8208;five (45) days from Closing<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> making commercially reasonable efforts to provide prompt responses and support to Shah in the transition and transfer of websites, data, databases, software, agreements, and relationships, at no cost to Shah or Dvaraka. Bitzio will close the Digispace bank account within a reasonable time after Closing (but no more than 3<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">0</font> days after Closing)<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> and ensure that any auto-&#173;&#8208;payments that are assumed by Dvaraka are transitioned, and any auto-&#173;&#8208;payments that are not assumed by Dvaraka are paid in full and terminated<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font></font></div>
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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">R</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">I</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">C</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">W</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">O</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">-</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">RM</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">I</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">NAT</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">I</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ON</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">OF</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">C</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ON</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">U</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">I</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">N</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">G</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">AGR</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">EE</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">M</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">N</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">T</font></font></div>

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<table border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
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<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman">2.1</font></font></div>
</td>
<td width="1102" style="TEXT-ALIGN: justify">
<div style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Shah shall be granted a perpetual<font style="DISPLAY: inline; FONT-FAMILY: times new roman">,</font> non-&#173;&#8208;resellable<font style="DISPLAY: inline; FONT-FAMILY: times new roman">,</font> non-&#173;&#8208;transferable<font style="DISPLAY: inline; FONT-FAMILY: times new roman">,</font> non-&#173;&#8208;sublicensable<font style="DISPLAY: inline; FONT-FAMILY: times new roman">,</font> royalty-&#173;&#8208; free license to use Bitzio&#8217;s Apwall and Adwall<font style="DISPLAY: inline; FONT-FAMILY: times new roman">,</font> which license is provided on an AS IS basis with not warranties or indemnities related thereto.</font></div>
</td>
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</div>

<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<table border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
<td style="WIDTH: 54px">
<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman">2.2</font></font></div>
</td>
<td width="1102" style="TEXT-ALIGN: justify">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The Consulting Agreement is terminated without cause, as of the Effective Date. </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Notwithstanding anything to the contrary in the Consulting Agreement, the Digispace Agreement or in any other agreement or understanding between the Parties or any affiliate thereof<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> the Parties agree that no cash<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> shares or option amounts<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> including penalty payments due or accruing<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> are owed or owing thereunder<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> no notice or pay in lieu of notice shall be made </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">and that no fees<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> penalties or other amounts are due or payable as a result of such termination<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font></font></div>
</td>
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</div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>

<div>
<table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
<td style="WIDTH: 54px">
<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.3</font></div>
</td>
<td width="1102">
<div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Shah shall resign as an officer and director of Bitzio as of the Effective Date. All communications (whether in writing or verbal) regardless of medium or forum<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> shall state the reason for the resignation was &#8220;to allow Shah to pursue other interests&#8221;. Shah will be entitled to access to his amish@bitzio<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font>com email address for sixty (60) days after the Effective Date, and for sixty (60) days thereafter an autoresponder will be placed on his <font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">sh</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">@</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">b</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">z</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; TEXT-DECORATION: underline">.</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">co</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font> email directing recipients to contact Shah at a new e-&#173;&#8208;mail address. Shah will be permitted to use this account for receiving e-&#173;&#8208;mail only and will not respond from this account or send any mail out from it<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font></font></div>
</td>
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</div>

<div>&#160;</div>

<div>
<table border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
<td style="WIDTH: 54px">
<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman">2.4</font></font></div>
</td>
<td width="1102" style="TEXT-ALIGN: justify">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Shah shall not have any non-&#173;&#8208;compete or restrictions related to the Consulting Agreement<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font></font></div>
</td>
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</div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">&#160;</font></div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">R</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">I</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">C</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">H</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">R</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">-</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">RM</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">I</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">NAT</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">I</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">O</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">N</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">O</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">F</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">O</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">P</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">I</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">O</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">N</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">AGR</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">EE</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">M</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">N</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">T</font></font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block">
<table border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
<td style="WIDTH: 54px">
<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman">3.1</font></font></div>
</td>
<td width="1102" style="TEXT-ALIGN: justify">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The Option Agreement and all Options thereunder are terminated as of the Effective Date.</font></font></div>
</td>
</tr></table>
</div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>

<div>
<table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
<td style="WIDTH: 54px">
<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.2</font></div>
</td>
<td width="1102">
<div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Each Party hereby releases and forever discharges the other Party, and its officers, directors<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> employees, shareholders and agents (collectively the &#8220;Releasees&#8221;) from any and all actions<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> causes of action<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> claims<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> complaints and demands whatsoever arising from the Option Agreement<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> this Agreement or the termination of the Option Agreement<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font></font></div>
</td>
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</div>

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<div>
<table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
<td style="WIDTH: 54px">
<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.3</font></div>
</td>
<td width="1102" style="TEXT-ALIGN: justify">
<div style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The Parties each further agrees not to make any claim or commence any proceedings against any other individual<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> partnership<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> association<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> trust<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> unincorporated organization or corporation with respect to any matters which may have arisen between the Parties in <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">connection with the termination of the Option Agreement, this Agreement or the termination of the Options<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font></font></font></div>
</td>
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</div>

<div>&#160;</div>

<div id="PGBRK" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="FTR">
<div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160; </font></div>
</div>

<div id="PN" style="PAGE-BREAK-AFTER: always; WIDTH: 100%">
<div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: effontselection; FONT-SIZE: 10pt">3</font></div>

<div style="TEXT-ALIGN: center; WIDTH: 100%">
<hr style="COLOR: black" noshade size="2">
</div>
</div>

<div id="HDR">
<div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160; </font></div>
</div>
</div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">&#160;</font></div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-SIZE: 10pt; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; TEXT-DECORATION: underline">R</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; TEXT-DECORATION: underline">I</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; TEXT-DECORATION: underline">C</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; TEXT-DECORATION: underline">F</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; TEXT-DECORATION: underline">O</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; TEXT-DECORATION: underline">U</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; TEXT-DECORATION: underline">R</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; TEXT-DECORATION: underline">-</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; TEXT-DECORATION: underline">O</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; TEXT-DECORATION: underline">C</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; TEXT-DECORATION: underline">K</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; TEXT-DECORATION: underline">-</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; TEXT-DECORATION: underline">UP</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; TEXT-DECORATION: underline">OF</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; TEXT-DECORATION: underline">HAR</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; TEXT-DECORATION: underline">S</font></font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block"><br>
</div>

<div>
<table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
<td style="WIDTH: 54px">
<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.1</font></div>
</td>
<td width="1102">
<div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Shah agrees to lock up all common stock of Bitzio owned<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> held or controlled in any way<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> either directly&#160;&#160;or&#160;&#160;indirectly&#160;&#160;by&#160;&#160;Shah,&#160;&#160;Dvaraka&#160;&#160;or&#160;&#160;any&#160;&#160;affiliate&#160;&#160;of&#160;&#160;Shah&#160;&#160;or&#160;&#160;Dvaraka&#160;&#160;(the&#160;&#160;&#8220;Shares&#8221;) pursuant to the following terms:</font></div>
</td>
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<div>&#160;</div>

<div>
<table border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
<td style="WIDTH: 1px">
<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></div>
</td>
<td width="5%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></td>
<td width="4%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">4.1.1</font></td>
<td width="91%" style="TEXT-ALIGN: justify">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">no Shares may be sold or transferred in any way prior to January 1<font style="DISPLAY: inline; FONT-FAMILY: times new roman">,</font> 2012;</font></font></font></div>
</div>
</td>
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</div>

<div>&#160;</div>

<div>
<table border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
<td style="WIDTH: 1px">
<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></div>
</td>
<td width="5%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></td>
<td width="4%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">4.1.2</font></td>
<td width="91%" style="TEXT-ALIGN: justify">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">During the period from January 1, 2012 to June 30, 2013, no more than 250,000 Shares (in the aggregate) may be sold or transferred, provided that all such sales or transfers shall be pursuant to a </font><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">10B-&#173;&#8208;5 filing and shall not exceed one percent (1%) of the daily sales volume of Bitzio shares on any day, and in the event that 250,000 shares have not been sold by June 30, 2013, Shah may continue selling shares until he has sold an aggregate 250,000 shares at no more than one percent (1%) of the daily sales volume of Bitzio shares on any day;</font></font></font></div>
</div>
</td>
</tr></table>
</div>

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<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<table border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
<td style="WIDTH: 1px">
<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></div>
</td>
<td width="5%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></td>
<td width="4%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">4.1.3</font></td>
<td width="91%" style="TEXT-ALIGN: justify">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">During the period from July 1, 2013 to June 30, 2014, Shares sold shall be subject to the SEC Rule 144 provisions, as if Shah is an officer or director of Bitzio (regardless as to his actual status during that period);</font></font></font></div>
</div>
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<div>&#160;</div>

<div>
<table border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
<td style="WIDTH: 1px">
<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></div>
</td>
<td width="5%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></td>
<td width="4%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">4.1.4</font></td>
<td width="91%" style="TEXT-ALIGN: justify">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">All directors&#160;&#160;and officers of Bitzio are subject to statutory&#160;&#160;lockups/restrictions&#160;&#160;on their ability to sell Bitzio stock.&#160;&#160;&#160;Notwithstanding&#160;&#160;the provisions set out in clauses 4.1.1 -&#173; 4.1.4 above, if Bitzio puts in place a formal lock-&#173;&#8208;up program for its directors and officers which offers greater liquidity, or additional benefits or more favourable terms&#160;&#160;than&#160;&#160;as set out herein,&#160;&#160;Shah&#160;&#160;shall&#160;&#160;be permitted&#160;&#160;to participate&#160;&#160;on the same terms.</font></font></font></div>
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<table border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
</table>
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<div>&#160;</div>

<div align="center">
<table border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
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<div>
<table border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
<td style="WIDTH: 1px">
<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></div>
</td>
<td width="5%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></td>
<td width="4%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">4.1.1</font></td>
<td width="91%" style="TEXT-ALIGN: justify">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
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<div align="center">
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<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">&#160;</font></div>

<div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">R</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">I</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">C</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">F</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">I</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">V</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">-</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">I</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">NT</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">R</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">P</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">R</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">TAT</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">I</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ON</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">AND</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">N</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">F</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">OR</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">CE</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">M</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">NT</font></font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block"><br>
<table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
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<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.1</font></div>
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<td width="1102">
<div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">Section</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">an</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">d</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">H</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">ea</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">d</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">ings</font></font></font></div>
</td>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The division of this Agreement into Articles and Sections and the insertion of headings are for the convenience of reference only and will not affect the construction or interpretation of this Agreement. The terms &#8220;this Agreement&#8221;<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> &#8220;hereof&#8221;<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> &#8220;hereunder&#8221; and similar expressions refer to this Agreement and not to any particular Article<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> Section or other portion of this Agreement. References in this Agreement to &#8220;$&#8221; or &#8220;dollars&#8221; refer to United States dollars. References in this Agreement to Articles and Sections refer to articles and sections of this Agreement<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> unless expressly stated otherwise<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font></font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div id="PGBRK" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="FTR">
<div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160; </font></div>
</div>

<div id="PN" style="PAGE-BREAK-AFTER: always; WIDTH: 100%">
<div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: effontselection; FONT-SIZE: 10pt">4</font></div>

<div style="TEXT-ALIGN: center; WIDTH: 100%">
<hr style="COLOR: black" noshade size="2">
</div>
</div>

<div id="HDR">
<div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160; </font></div>
</div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>

<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<table border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
<td align="right" style="WIDTH: 54px">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">5.2</font></font></div>
</td>
<td align="left" width="1102">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">N</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">u</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">be</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">and</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">G</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">ende</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">r</font></font></div>
</td>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: 2.65pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In this Agreement<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> words importing the singular number only shall include the plural and <font style="DISPLAY: inline; TEXT-DECORATION: underline">v</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ce</font> <font style="DISPLAY: inline; TEXT-DECORATION: underline">versa</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; TEXT-DECORATION: underline">,</font>&#160;and&#160;words&#160;importing&#160;the&#160;masculine&#160;gender&#160;&#160;shall&#160;&#160;include&#160;the&#160;feminine&#160;and&#160;neuter genders and <font style="DISPLAY: inline; TEXT-DECORATION: underline">v</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">c</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font> <font style="DISPLAY: inline; TEXT-DECORATION: underline">versa</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; TEXT-DECORATION: underline">,</font> and words importing persons shall include individuals<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> partnerships, associations<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> trusts<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> unincorporated organizations and corporations and <font style="DISPLAY: inline; TEXT-DECORATION: underline">v</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">c</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font> <font style="DISPLAY: inline; TEXT-DECORATION: underline">versa</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font></font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>

<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<table border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
<td align="right" style="WIDTH: 54px">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">5.3</font></font></div>
</td>
<td align="left" width="1102">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">Ent</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">gree</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">ent</font></font></div>
</td>
</tr></table>
</div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">This Agreement<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> and the Exhibits hereto<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> constitute the entire agreement between the Parties with respect to the subject matter hereof and replaces and supersedes any prior understandings and agreements between them with respect thereto. There are no representations<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> warranties<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> forms<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> conditions<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> undertakings or collateral agreements<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> express or implied, between the Parties with respect to the subject matter hereof, other than as expressly set forth in this Agreement<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font></font></div>

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<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<table border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
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<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">5.4</font></font></div>
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<td align="left" width="1102">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">end</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">ent</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">an</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">d</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">W</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">ver</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">s</font></font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">No amendment to this Agreement shall be valid or binding<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> unless set forth in writing and duly executed by all Parties. No waiver of any breach of any term or provision of this Agreement will be effective or binding<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> unless made in writing and signed by the Party purporting to give the same and<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> unless otherwise provided in the written waiver<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> will be limited to the specific breach waived. Any handwritten changes made to this Agreement (with the exception of the Effective Date when the Effective Date is handwritten onto the Agreement) must be initialled by all Parties in order to be binding on the Parties<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font></font></div>

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<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<table border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
<td align="right" style="WIDTH: 54px">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">5.5</font></font></div>
</td>
<td align="left" width="1102">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">Severa</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">b</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">l</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">it</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">y</font></font></div>
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</div>

<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">If any provision of this Agreement is determined to be invalid or unenforceable in whole or in part<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> such invalidity or unenforceability will attach only to such provision or part thereof<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> and the remaining part of such provision and all other provisions hereof shall continue in full force and effect.</font></div>

<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<table border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
<td align="right" style="WIDTH: 54px">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">5.6</font></font></div>
</td>
<td align="left" width="1102">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">N</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">ot</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">ce</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">s</font></font></div>
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<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Any demand, notice or other communication to be given in connection with this Agreement will be given in writing and may be given by personal delivery<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> by electronic delivery (with proof of successful transmission) or by registered or certified mail<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> return receipt requested, addressed to the recipient as follows:</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div align="center">
<table bgcolor="white" cellpadding="0" cellspacing="0" width="50%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
<td valign="top" width="50%">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">To the Dvaraka and </font><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Shah:</font></font></div>
</td>
<td width="50%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 124.75pt" align="left"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">8605 Santa Monica Blvd.</font></font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 124.75pt" align="left"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Suite 57149 </font></font>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: -1pt" align="left"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Los&#160;Angeles&#160;California<font style="DISPLAY: inline; FONT-FAMILY: times new roman">,</font>&#160;90069</font></font></font></div>
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<td width="50%">&#160;</td>
<td width="50%">&#160;</td>
</tr><tr>
<td valign="top" width="50%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">To&#160;Bitzio:</font></td>
<td width="50%">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">B</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">i</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">tz</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">i</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">o</font><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-WEIGHT: bold">,</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">I</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">nc</font><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-WEIGHT: bold">. </font></font></font>

<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: normal">548&#160;Market&#160;Street<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-WEIGHT: normal">,</font>&#160;Suite&#160;18224</font></font></font></font></div>

<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: normal">San&#160;Francisco<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-WEIGHT: normal">,</font>&#160;California&#160;94104</font></font></font></font></div>
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<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">or such other address or individual as may be designated by notice by either party to the other<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font></font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt">&#160;</div>

<div id="PGBRK" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="FTR">
<div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160; </font></div>
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<div id="PN" style="PAGE-BREAK-AFTER: always; WIDTH: 100%">
<div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: effontselection; FONT-SIZE: 10pt">5</font></div>

<div style="TEXT-ALIGN: center; WIDTH: 100%">
<hr style="COLOR: black" noshade size="2">
</div>
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<div id="HDR">
<div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160; </font></div>
</div>
</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt">&#160;</div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: 2.4pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Any communication given by personal delivery will be conclusively deemed to have been given on the day of actual delivery thereof; or if made or given by electronic delivery<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> on the business day following receipt thereof; or if made or given by registered or certified mail<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> on the 7<font style="DISPLAY: inline; FONT-SIZE: 10pt">th</font><font style="DISPLAY: inline; FONT-SIZE: 10pt">&#160;</font>day, other than a Saturday<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> Sunday or Statutory holiday in California<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> following the deposit thereof in the mail<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font></font></div>

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</div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: 2.6pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">If the party giving any communication&#160;&#160;knows or ought reasonably to know of any difficulties with the postal system that might affect the delivery of mail<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> then such communication will not be mailed but will be given by facsimile or personal delivery<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font></font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: 2.6pt" align="justify">&#160;</div>

<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<table border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
<td align="right" style="WIDTH: 54px">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">5.7</font></font></div>
</td>
<td align="left" width="1102">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">G</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">overn</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">ng</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">Law</font></font></font></font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: 2.6pt" align="justify">&#160;</div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: 2.6pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">This Agreement will be deemed to have been entered into<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> and will be governed by<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> and interpreted and construed in accordance with the laws of the State of California<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font></font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block">
<table border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
<td align="right" style="WIDTH: 54px">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">5.8</font></font></div>
</td>
<td align="left" width="1102">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline"><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">Cour</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">J</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">ur</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">sd</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">ct</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">on</font></font></font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: 2.3pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">For&#160;&#160;the&#160;&#160;purpose&#160;&#160;of&#160;&#160;all&#160;&#160;legal&#160;&#160;proceedings&#160;&#160;this&#160;&#160;Agreement&#160;&#160;shall&#160;&#160;be&#160;&#160;deemed&#160;&#160;to&#160;&#160;have&#160;&#160;been performed in the State of California.&#160;&#160;&#160;The Corporation and the Consultant each hereby attorns to the exclusive jurisdiction of the courts of the State of California and all courts competent to hear appeals therefrom<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font></font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: 2.3pt">&#160;</div>

<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<table border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
<td align="right" style="WIDTH: 54px">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">5.9</font></font></div>
</td>
<td align="left" width="1102">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">Counterpart</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">s</font></font></font></font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: 2.3pt" align="justify">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: 2.55pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">This Agreement may be executed in two or more identical counterparts<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> facsimile counterparts or electronic counterparts<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">,</font> each of which when executed by a party shall be deemed to be an original and such counterparts shall together constitute one and the same Agreement.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: 2.55pt">&#160;</div>

<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<table border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
<td align="right" style="WIDTH: 54px">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">5.10</font></font></div>
</td>
<td align="left" width="1102">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">Copy</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">of</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">gree</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">ent</font></font></font></font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block"><br>
</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The Consultant acknowledges receipt of a copy of this Agreement duly signed by the </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Consultant and the Corporation<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">.</font></font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block"><br>
</div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Signature page follows</font></div>

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<div id="PGBRK" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="FTR">
<div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160; </font></div>
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<div id="PN" style="PAGE-BREAK-AFTER: always; WIDTH: 100%">
<div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: effontselection; FONT-SIZE: 10pt">6</font></div>

<div style="TEXT-ALIGN: center; WIDTH: 100%">
<hr style="COLOR: black" noshade size="2">
</div>
</div>

<div id="HDR">
<div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160; </font></div>
</div>
</div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">IN WITNESS WHEREOF the parties have executed this Agreement as of the Effective Date.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block">&#160;</div>

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<div>
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<TYPE>EX-10.3
<SEQUENCE>5
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<DESCRIPTION>ASSET PURCHASE AGREEMENT
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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">ASSET PURCHASE AGREEMENT</font></div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">DVARAKA MARKETING, LLC,</font></div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">AND</font></div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">ASSE</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">PURC</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">H</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">AS</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">G</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">REE</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">M</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ENT</font></font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">REC</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">I</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">TALS</font></font></div>

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<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
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<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
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<div style="TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">1.1<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">D</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">efi</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">iti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ons</font>.&#160; <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">The following terms, as used herein, have the following meanings: </font></font></font></div>

<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#8220;Acquisition Assets&#8221; shall have the meaning set forth in <font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ecti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">2</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">.</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">1</font>.</font></font></font></div>
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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Agreement&#8221; means this Asset Purchase Agreement. </font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Business&#8221; shall have the meaning set forth in Recital A.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Buyer&#8221; shall have the meaning set forth in the Preamble.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Closing&#8221; means the consummation of the transactions contemplated by this Agreement.&#160;&#160;The date </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Closing Date&#8221; and place of the Closing are set forth in <font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ecti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">8</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">.</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">1</font>.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Intellectual Property&#8221; shall mean patents, trademarks, copyrights, trade dress, trade secrets and other confidential information.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Internal Revenue Code&#8221; means the Internal Revenue Code of 1986, as amended.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Laws&#8221; shall have the meaning set forth in <font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ecti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">3</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">.</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">4</font>.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Lien&#8221; means, with respect to any asset, any mortgage, lien, pledge, charge, claim, security interest or encumbrance of any kind in respect of such asset.&#160;&#160;For the purposes of this Agreement, the Seller shall be deemed to own subject to a Lien any asset which it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement, capital lease or other title retention agreement or security interest relating to such asset.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Person&#8221; means an individual, a corporation, a limited liability company, a partnership, an association, a trust or any other entity or organization, including without limitation a Government Entity.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Purchase Price&#8221; shall have the meaning set forth in <font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ecti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">2</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">.</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">4</font>. </font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Seller&#8221; shall have the meaning set forth in the Preamble.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Tax&#8221; shall mean any and all taxes, charges, fees, levies or assessments payable to any Governmental Entity including, without limitation, (i) income, franchise, profits, gross receipts, minimum, alternative minimum, estimated ad valorem, value added, sales, use, service, real or personal property, capital stock, license, payroll, withholding, disability, employment, social security, worker&#8217;s compensation, unemployment </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">compensation, utility, severance, excise, stamp, windfall profits, transfer and gains taxes, (ii) custom duties, imposts, charges, levies or other similar assessments of any kind and (iii) interest, penalties and additions to tax imposed with respect thereto.</font></div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">ARTICLE II</font></div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">PURCHASE AND SALE OF ASSETS</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">sset</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">b</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Conv</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">y</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">d</font>.&#160;&#160;Upon the terms and subject to the conditions of this Agreement, Seller agrees, at the Closing, to sell to Buyer and Buyer agrees to purchase, for the consideration set forth in <font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ecti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">2</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">.</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">4</font>, all right, title and interest of Seller in and to (collectively, the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">c</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">qu</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">isiti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ssets</font>&#8221;):</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;All Intellectual Property rights, including, without limitation, rights to the name THE APP CODE and variations thereof; EVERYONE APPS, and variations thereof, and all other common law, unregistered service and trademarks owned by Seller and used in connection with the Business;</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;All goodwill of the Business represented in the trade names, marks, domain names, phone numbers and otherwise, to the extent such items exist;</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The assets identified on the attached Exhibit B;</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;All domain names and related websites currently owned, operated, and/or registered to the Seller related to the Business.&#160;&#160;The transferred rights shall include: internet traffic to such website; copyrights to web pages, page layouts, graphics, online forms, search engines, and banner advertisements used at such website; and, all registered or unregistered trademarks and service marks associated with any such domain name and/or website.&#160;&#160;A list of all domain names and websites is attached as Exhibit C;</font></div>

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<div style="TEXT-ALIGN: left; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">D</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">b</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t,</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Ob</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">li</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">g</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">,</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ia</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">b</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ilitie</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font></font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.3.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">No</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ss</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">u</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ed</font>.&#160; It is expressly understood and agreed that Buyer is not assuming and shall not be liable for any liability related to TAC or EA.&#160;&#160;The Acquisition Assets shall be free of all liabilities and encumbrances. Seller agrees to pay, perform and discharge any such liability.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Pu</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rc</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">h</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">as</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">P</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rice</font>.&#160;&#160;The purchase price consideration shall be the terms of the Agreement dated </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">August 31, 2012 and the Settlement Agreement attached thereto.</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">P</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">of</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Co</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">llecti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ons</font>.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Any collections, payments or reimbursements which the Buyer received after the Closing for sales from orders placed on or prior to the Closing, shall be the property of Seller, and shall be promptly paid over to the Seller by the Buyer.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Except for the amounts to be turned over to Seller under (a) above, all other amounts received by Buyer after the Closing for product sales shall belong to Buyer.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ales</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">d</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ra</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">sfer</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">x</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font>.&#160;&#160;&#160;All applicable sales, value added, transfer, documentary, use filing and other similar taxes and fees that may be levied on the sale, assignment, transfer or delivery of the Acquisition Assets to Buyer as contemplated hereunder, shall be paid by the party from whom it is assessed.&#160;&#160;Seller shall, at its own expense, file all necessary returns and other documentation with respect to all such sales or transfer taxes and, if required by applicable law, Buyer shall join the execution of such returns or other documents.&#160;&#160;Any decision as to value shall be determined by Buyer in its sole discretion, as it is the intent of the parties that the Buyer receive the most favorable tax treatment available to the Buyer.</font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">&#160;</font></div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">ARTICLE III</font></div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">REPRESENTATIONS&#160;&#160;AND WARRANTIES OF SELLER</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Bitzio represents and warrant to Buyer that:</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">O</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">g</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">izati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Qu</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">alificati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font>:&#160;&#160;Bitzio, is a Delaware corporation duly organized, validly existing </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">and in good standing under the laws of the State of Delaware, and has the power and authority to own and dispose of all of its properties and assets, including the Acquisition Assets.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.2&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Au</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ho</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rit</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">y</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">R</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">elati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ve</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">h</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Ag</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ree</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font>.&#160;&#160;Seller has the power and authority to execute and deliver this Agreement and to consummate the transactions contemplated by this Agreement.&#160;&#160;The execution and delivery by Seller of this Agreement, and the consummation by it of the transactions contemplated by this Agreement, have </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">been duly authorized by all necessary individuals on the part of Seller and no other proceedings on the part of Seller will be necessary thereto.&#160;&#160;This Agreement constitutes the valid and binding obligation of Seller enforceable in accordance with its terms except as the same may be limited by (i) any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditor&#8217;s rights generally, or (ii) general principles of equity, whether considered in a proceeding in equity or at law.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Con</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">se</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">nd</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">App</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ov</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">als</font>.&#160;&#160;Seller expressly represents that there is no requirement applicable to Seller to make any filing with, or to obtain any permit, authorization, consent, waiver or approval of any Person, including any Governmental Entity, as a condition to the execution and delivery by Seller of this Agreement or the lawful consummation of the transactions contemplated by this Agreement, specifically including the sale of the customer list, name and goodwill of the business and certain of its tangible assets.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Non</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">-</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Con</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">tra</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">v</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font>.&#160;&#160;&#160;Neither the execution and delivery by Seller of this Agreement nor the consummation of the transactions contemplated by this Agreement will violate, conflict with, result in a breach of, result in or constitute a default (or an event which, with the giving of notice or lapse of time or both, would constitute a default) under, or result in the cancellation or unilateral modification or amendment of, or accelerate the performance required by, or result in a right of termination or acceleration under, or result in the creation of any </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Lien upon any of the Acquisition Assets under any of the terms, conditions or provisions of (i) the Articles or Bylaws of Seller (ii) any other note, bond, mortgage, indenture, deed of trust, license, agreement, lease or other instrument, obligation or arrangement to which any of the Acquisition Assets may be subject, except for such defaults (or rights of termination, cancellation or acceleration) as to which requisite waivers of consents have been or will be obtained by Seller prior to the Closing or the obtaining of which has been waived by Buyer, or (iii) any order, writ, judgment, injunction, decree, citation, award, ruling, law, statute, rule or regulation (individually a &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">w</font>&#8221; and collectively, &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">w</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font>&#8221;) applicable to Seller, any of the Acquisition Assets, or the Business.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Co</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">p</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">lia</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ce</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">w</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">it</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">h</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">w</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font>.&#160;&#160;To Seller&#8217;s knowledge, Seller has operated the Business in compliance in all material respects with all applicable Laws including, without limitation, those related to unfair competition and trade matters, civil rights, public health and safety, worker health and safety and labors and nondiscrimination. </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Seller has not received any written notice alleging noncompliance with any Law.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">iti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">g</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font>.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Seller has not received written notice of the filing or commencement of (including, without limitation, service of process with respect to) any actions, suits, claims, investigations or proceedings (legal, administrative or arbitrative) pending or, to Seller&#8217;s knowledge, threatened against or affecting Seller or which relate or may affect Acquisition Assets, whether at law or in equity and whether civil or criminal in nature, before any Governmental Entity, nor are there any valid and binding judgments, decrees or orders of any Governmental Entity outstanding against or affecting Seller or which relate to or may affect the Acquisition Assets, or which seek specifically to prevent, restrict or delay consummation of the transactions contemplated by, or fulfillment of any of the conditions of, this Agreement. There are no unsatisfied valid and binding judgments of record relating to or affecting the Acquisition Assets or the Business that have not been disclosed to Buyer, and of which Buyer is unaware.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Seller has not admitted in writing its inability to pay its debts generally as they become due, filed or consented to the filing against it of a petition in bankruptcy or a petition to take advantage of any insolvency act, made an assignment for the benefit of creditors, consented to the appointment of a receiver for itself or for the whole or any substantial part of its property, or had a petition in bankruptcy filed against it, been adjudicated a bankrupt, or filed a petition or answer seeking reorganization or arrangement under the federal bankruptcy laws, or any other similar law of any jurisdiction.</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">itl</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">nd</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Cond</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">iti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">of</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">P</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">op</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">erties</font>.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Seller has, and will transfer to Buyer at Closing, good and marketable title to the Acquisition Assets free and clear of any Liens or rights of others.&#160;&#160;Buyer shall be given physical custody of all property included in the Acquisition Assets at Closing.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Acquisition Assets are being sold AS IS, and without any warranties.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">F</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">nd</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">er</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font>.&#160;&#160;No broker or finder is entitled to any fee or commission from the Seller for services rendered on behalf of Seller in connection with the transactions contemplated by this Agreement.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.10&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">x</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">es</font>.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Seller has filed or cause to be filed on a timely basis all Tax returns and any other filings in respect of Taxes that are or were required to be filed by or with respect to it during the period that Seller owned or reported the income of the Business, either separately or as a member of a group of corporations, with respect to taxable periods (or any portion thereof) ending on or prior to the Closing Date pursuant to applicable legal requirements; (ii) </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">all such Tax returns and other filings were correct and complete in all material respects; (iii) Seller has paid, or made provision for payment of, all Taxes that have or may have become due pursuant to those Tax returns and other filings, or pursuant to any assessment received by Seller or its business and any other Taxes due and payable by it </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">for all tax periods (or any portion thereof) ending on or prior to the Closing Date; (iv) no claim has ever been made by an authority in a jurisdiction where Seller does not file Tax returns that it is or may be subject to taxation by that jurisdiction; and (v) there are no Liens for Taxes upon the Acquisition Assets.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;That there is no dispute or claim concerning any Tax liability of Seller either (i) claimed raised by any authority in writing or (ii) as to which any of Seller and the directors and officers (and employees responsible for Tax matters) of Seller has actual knowledge after reasonable investigation.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Seller has not waived any statute of limitation in respect of Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.11&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Fu</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ll</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">D</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">iscl</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">u</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font>. To Seller&#8217;s knowledge, none of the representations and warranties of Seller made in this Agreement, any exhibit or schedule attached to this Agreement, or any certificate delivered by or on behalf of Seller to Buyer pursuant to this Agreement, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">not misleading.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.12&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#8220;AS IS&#8221; Transaction.&#160;&#160;The Buyer hereby acknowledges and agrees that, except as otherwise expressly provided in this Agreement, the Seller makes no representations or warranties whatsoever, express or implied, with respect to any matter relating to the Business or the Acquisition Assets (including, without limitation, income to be derived or expenses to be incurred in connection with the Acquisition Assets, the value or transferability of the Acquisition Assets (or any portion thereof), the merchantability or fitness of the Acquisition Assets (or any portion thereof for any particular purpose, or any other matter or thing relating to the Business or the Acquisition Assets or any portion thereof).&#160;&#160;Without in any way limiting the foregoing, the Seller hereby disclaims any warranty (express or implied) of merchantability or fitness for any particular purpose as to any portion of the Acquisition Assets.&#160;&#160;The Buyer further acknowledges that the Buyer has full knowledge of all such other matters relating to or affecting the Acquisition Assets as the Buyer deemed necessary or appropriate and that in proceeding with its acquisition of the Acquisition Assets, the Buyer is doing so based solely upon such knowledge. Accordingly, the Buyer accepts the Acquisition Assets at the Closing &#8220;AS IS,&#8221; &#8220;WHERE IS,&#8221; and &#8220;WITH ALL FAULTS.&#8221;</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Buyer represents and warrants to Seller that:</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">O</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">g</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">izati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Qu</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">alificati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font>:&#160;&#160;Buyer, Dvaraka Marketing, LLC, duly organized, validly existing and in good standing under the laws of the State of California, and has the corporate power and authority to own all of its properties and assets, and carry on its business as proposed to be conducted.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Au</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ho</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rit</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">y</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">R</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">elati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ve</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">h</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Ag</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ree</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font>.&#160;&#160;Buyer has corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated by this Agreement.&#160;&#160;The execution and delivery by Buyer of this Agreement, and the consummation by it of the transactions contemplated by this Agreement, have been duly authorized by all necessary corporate action on the part of Buyer and no other corporate proceedings on the part of Buyer will be necessary thereto.&#160;&#160;This Agreement constitutes the valid and binding obligation of Buyer enforceable in accordance with its terms except as the same may be limited by (i) any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditor&#8217;s rights generally, or (ii) </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">general principles of equity, whether considered in a proceeding in equity or at law.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Con</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">se</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">nd</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">App</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ov</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">als</font>.&#160;&#160;There is no requirement applicable to Buyer to make any filing with, or to obtain any permit, authorization, consent, waiver or approval of any Governmental Entity as a condition to the execution and delivery by Buyer of this Agreement or the lawful consummation of the transactions contemplated by this Agreement.&#160;&#160;There is no requirement that any party to any agreement to which Buyer is a party consent to the execution and delivery of, or the consummation of the transactions contemplated by, this Agreement.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Non</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">-</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Con</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">tra</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">v</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font>.&#160;&#160;&#160;The execution and delivery by Buyer of this Agreement does not, and the consummation of the transactions contemplated by this Agreement will not violate, conflict with, result in a breach of, result in or constitute a default (or an event which, with the giving of notice or lapse of time or both, would constitute a default) under, or result in the cancellation or unilateral modification or amendment of, or accelerate the performance required by, or result in a right of termination or acceleration under, or result in the creation of any </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Lien upon any of the assets of Buyer under any of the terms, conditions or provisions of (a) the Articles of Incorporation or Bylaws of Buyer (b) any note, bond, mortgage, indenture, deed of trust, license, agreement, lease or other instrument, obligation or arrangement to which Buyer is a party or to which Buyer or any of its assets may be subject, except for such defaults (or rights of termination, cancellation or acceleration) as to which requisite waivers of consents have been or will be obtained by Buyer prior to the Closing or the obtaining of which has been waived </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">by Seller, or (c) any Law applicable to Buyer or any of its assets.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.5<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">B</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ok</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">er&#8217;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">or</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">F</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">nd</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">er&#8217;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">F</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ee</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font>.&#160;&#160;Neither the Buyer nor any affiliate of the Buyer has authorized any person to act as broker, finder, banker, consultant, intermediary or in any other similar capacity which would entitle such person to any investment banking, brokerage, finder&#8217;s or similar fee in connection with the transactions contemplated by this Agreement, except where any fee or payment due such persons would be solely the obligation of the Buyer.</font></div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">ARTICLE V</font></div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">ADDITIONAL AGREEMENTS</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ll</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">cati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">f</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Pu</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rc</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">h</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ase</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">P</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ric</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font>.&#160;&#160;Seller and Buyer agree that in reporting the transaction contemplated by this Agreement to the Internal Revenue Service, as is required by Section 1060 of the Internal Revenue Code, they will cooperate with each other in meeting the requirements of the Internal Revenue Code and the regulations promulgated thereunder.&#160;&#160;The parties agree not to take positions on their respective income tax filings that are inconsistent with the intent set forth in <font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ecti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">2</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">.</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">6</font>.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Bu</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">l</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">k</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ales</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">w</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font>.&#160;&#160;Seller will indemnify and hold harmless Buyer pursuant to Article IX from and against any and all claims made by creditors of Seller relating to provisions of the &#8220;bulk sales laws&#8221; of any state or other jurisdiction which may be applicable to the transactions contemplated by this Agreement and from all costs (including reasonable attorney&#8217;s fees) incurred in the defense of any claims made under such laws.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">M</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">aterial</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">d</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Co</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rres</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">pond</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ce</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">R</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ecei</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">v</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ed</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">fter</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">C</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">l</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">si</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">g</font>. Following the Closing, Seller promptly shall deliver to Buyer all future orders, mail, email, and other communications it receives relating to the Acquisition Assets or the Business.&#160;&#160;Seller agrees to refer any and all inquiries by or from any past, present, or prospective customers relating to the Business, to Buyer.&#160;&#160;Seller also agrees, on the Closing Date, to switch all phone numbers, mailing addresses, shipping addresses, web site, client lists, good will and trade names to Buyer.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ff</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rt</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Con</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">u</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">mm</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ate</font>.&#160;&#160;Subject to the terms and conditions herein provided, Seller shall use commercially reasonable efforts to take, or cause to be taken, all action and to do, or cause to be done, all things necessary, proper or advisable to consummate, as promptly as practicable, the transactions contemplated by this Agreement including, without limitation, the obtaining of all necessary consents, waivers, authorizations, orders and </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">approvals of third parties, whether private or governmental, required of it by this Agreement.&#160;&#160;Seller shall cooperate with Buyer in assisting it to comply with the provisions of this Section.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Fu</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rt</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">h</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">er</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ss</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">u</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ra</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ces</font>.&#160;&#160;Each party shall, at the request of the other party, at or after the Closing, without further consideration and at such requesting party&#8217;s expense, promptly execute and deliver such additional documents as that parties may reasonably deem necessary or desirable in order to consummate more effectively the transactions contemplated by the Agreement.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">p</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">l</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">oy</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ee</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">M</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">atters</font>.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">G</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">eral</font>. Seller shall be solely responsible for all obligations with respect to all of the employees and Staff of the Business relating to the period through and including the Closing Date, including without limitation, all severance pay, workers&#8217; compensation and unemployment insurance, and all Federal, state and local tax withholdings and other social and employment benefits through and including the Closing Date.&#160;&#160;Seller agrees to assume total responsibility for any claims, obligations or benefits whatsoever under any plans or agreements relating to Seller&#8217;s employees, including any fiduciary or administrative responsibility to account for or dispose of any such benefits.&#160;&#160;Seller shall comply in all respects with the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">W</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">k</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">er</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Ad</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">j</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">u</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">st</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">nt</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">R</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">etrai</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ng</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">nd</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">No</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">tificati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">c</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font>&#8221; to the extent applicable.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">M</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ai</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">te</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">c</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">of</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Bu</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">si</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ess</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">,</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">N</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">C</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">reati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">of</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ie</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font>.&#160;&#160;Seller covenants and agrees that prior to the Closing Date, it shall (i) comply in all material respects with all Laws applicable to it and the Business; (ii) promptly notify Buyer of any event occurring after the date of execution of this Agreement which causes or is reasonably expected to cause any representation or warranty in this Agreement to be incorrect or incomplete.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.9&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">N</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">g</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ve</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Cov</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ts</font>.&#160;&#160;Seller covenants and agrees that, prior to the Closing, Seller shall not do any of the following without the prior written consent of Buyer, which shall not be unreasonably withheld, conditional or delayed:</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Sell, lease, exchange, mortgage, pledge, transfer or otherwise dispose of, or agree to sell, lease, exchange, mortgage, pledge, transfer or otherwise dispose of, any of the Acquisition Assets, including the disposition of assets held for resale or lease in the ordinary course of business;</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Create or suffer to exist any Lien on any of the Acquisition Assets; or</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Undertake any action outside the ordinary course of its business.</font></div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">ARTICLE VI</font></div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">BUYER COVENANTS</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">6.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ff</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rt</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Con</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">u</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">mm</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">at</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font>.&#160;&#160;Subject to the terms and conditions herein provided, Buyer shall use its best efforts to take, or cause to be taken, all action and to do, or cause to be done, all things necessary, proper or advisable to consummate, as practicable, the transactions contemplated by this Agreement including, without limitation, the obtaining of all necessary consents, waivers, authorizations, orders and approvals of third parties, whether private or governmental, required of it by this Agreement.&#160;&#160;Buyer shall cooperate fully with Seller to the extent it is required to perform any actions under this Section.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">6.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Fu</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rt</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">h</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">er</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ss</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">u</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ra</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ces</font>.&#160;&#160;Buyer shall, at the request of Seller, at or after the Closing, without further consideration and at Seller&#8217;s expense, promptly execute and deliver such additional documents as Seller may reasonably deem necessary or desirable in order to consummate more effectively the transactions contemplated by this Agreement.&#160;&#160;In addition, Buyer shall grant Seller access upon reasonable advanced written notice and during </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">regular business hours to the customer files transferred to Buyer pursuant to this Agreement, or copies thereof, to the extent Seller needs to review such files to satisfy reporting requirements or other business purposes.</font></div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">ARTICLES VII</font></div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">CONDITIONS TO CLOSING</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">7.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Cond</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">iti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ons</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Ob</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">li</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">g</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ons</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">of</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Buy</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">er</font>.&#160;&#160;The obligations of the Buyer to consummate the Closing is subject to the following conditions:</font></div>

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<div style="TEXT-INDENT: 72pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;No default or breach of any covenants by Seller.</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">7.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Cond</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">iti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ons</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Ob</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">li</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">g</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ons</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">of</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">eller</font>. The obligations of the Seller to consummate the Closing is subject to the following conditions:</font></div>

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<div style="TEXT-INDENT: 72pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;No default or breach of any covenants by Buyer.</font></div>

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<div>
<div style="TEXT-ALIGN: left; TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font></font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">All representations and warranties of Seller contained in this Agreement were true and correct when given and are true and correct as of the Closing Date; and</font></div>
</div>

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</div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">ARTICLE VIII</font></div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">CLOSING</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">8.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">d</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">P</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">lace</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">f</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">C</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">l</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">si</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ng</font>.&#160;&#160;The Closing shall take place concurrently with the execution and delivery hereof, and the Closing shall take place not later than 5:00 p.m., P.S.T.&#160;&#160;on August 31 1, 2012, at the offices of Seller or at such other earlier time, date and place as the parties shall agree.&#160;&#160;If the Closing takes place, the </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Closing and all of the transactions contemplated by this Agreement shall be deemed to have occurred simultaneously and become effective as of 11:59 p.m. on the date that the Closing takes place.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">8.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">D</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">eli</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">v</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">eries</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">b</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">y</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">eller</font>. Within seven calendar days after Closing, Seller shall deliver to Buyer all </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Acquisition Assets.&#160;&#160;Any cost associated with the transfer of the Acquisition Assets shall be born by Buyer.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">8.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">D</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">eli</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">v</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">eries</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">b</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">y</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Buy</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">er</font>.&#160;&#160;At the Closing Buyer shall deliver to Seller the agreements set forth in <font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ecti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">2</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">.</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">4</font>, and any documents as Seller may reasonably request (in the form satisfactory to Seller) to the extent necessary to implement the terms and conditions of this Agreement.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">8.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">R</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">is</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">k</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">of</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Lo</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font>.&#160;&#160;Risk of loss for the Acquisition Assets shall remain with the Seller until Closing, at which time it shall pass to Buyer.</font></div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">GENERAL PROVISIONS</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; TEXT-DECORATION: underline">No</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">tices</font>.&#160;&#160;All notices and other communications required or permitted to be given by this Agreement shall be in writing and shall be deemed duly given (a) one Business Day after delivery, if delivered personally, (b) four Business Days after posting, if mailed by registered or certified first class air mail (return receipt requested) or (c) one Business Day after dispatch if sent by telex or telefax (with an answer back from the receiving party and a confirmatory mailing as provided in (b) by the sender) or by email (provided no email return to sender message is returned to the sender) to the parties at the following addresses (or at such other address for the party as shall be specified by like notice):</font></div>

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<td width="50%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">To the Dvaraka and Shah:</font></td>
<td width="50%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">8605 Santa Monica Blvd<font style="DISPLAY: inline; FONT-FAMILY: times new roman">.</font></font></font></td>
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<td width="50%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></td>
<td width="50%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Suite 57149</font></td>
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<td width="50%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></td>
<td width="50%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Los Angeles California, 90069</font></font></td>
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<td width="50%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">To&#160;Bitzio:</font></td>
<td width="50%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">B<font style="DISPLAY: inline; FONT-WEIGHT: bold">i</font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold">tz</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">i</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">o</font><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-WEIGHT: bold">,</font><font style="DISPLAY: inline; FONT-WEIGHT: bold"> I</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">nc.</font></font></td>
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<td width="50%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">548&#160;Market&#160;Street, Suite&#160;18224</font></font></td>
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<td width="50%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">San&#160;Francisco, California&#160;94104</font></font></td>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Rejection or other refusal to accept, or the inability to deliver because of a changed address of which no notice was given, shall not affect the date of such notice in accordance with the foregoing provisions.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">I</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ter</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">p</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">retati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">.</font>&#160;The headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.&#160;&#160;Unless the context otherwise required are used herein, words in the singular shall include words in the plural and vice versa, words in one gender shall include words in the other gender.&#160;&#160;Time is of the essence in this Agreement.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Coun</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ter</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">p</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">arts</font>.&#160;&#160;This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ssi</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">gn</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font>. This Agreement shall be binding upon and inure to the benefit of the parties hereto, and their respective successors and permitted assigns; <font style="DISPLAY: inline; TEXT-DECORATION: underline">p</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ov</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">d</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">d</font>, <font style="DISPLAY: inline; TEXT-DECORATION: underline">how</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">v</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">er</font>, that neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned by any of the parties hereto without the prior written consent of the other parties.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">En</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">tir</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Ag</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ree</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font>.&#160;&#160;This Agreement, including all exhibits and schedules constitutes the entire agreement and supersedes all other agreements and understandings, both written and oral, between the parties with respect to the transactions contemplated by this Agreement.&#160;&#160;There are no restrictions, agreements, promises, warranties, covenants or undertakings with respect to the transactions contemplated by this Agreement other than those expressly set forth herein.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">M</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">od</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ification</font>. No modification to this Agreement will be effective unless assented to in writing by the party to be charged.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Gov</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">er</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ng</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">w</font>. This Agreement and the relationship between the parties shall be governed in all respects by the laws of the State of California without regard to its laws or regulations relating to conflicts of laws. Both parties expressly consent to the jurisdiction of the courts in the County of San Diego, City of San Diego, relative to any dispute arising out of this Agreement.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">B</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">efits</font>.&#160;&#160;This Agreement is not intended to and shall not confer upon any other Person, other than the parties respective heirs and legal representatives, any rights or remedies with respect to the subject matter hereof.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.9&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">v</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">era</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">b</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ilit</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">y</font>.&#160;&#160;If any one or more of the provisions of this Agreement shall be held to be invalid, illegal or unenforceable the validity, legality or enforceability of the remaining provisions of this Agreement shall not be affected thereby.&#160;&#160;To the extent permitted by applicable law, each party waives any provision of law which </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">renders any provision of this Agreement invalid, illegal or unenforceable.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.10&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">R</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">elati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">h</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">p</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">f</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">h</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">P</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">arties</font>.&#160;&#160;Nothing in this Agreement shall be deemed to constitute a partnership, joint venture or other form of entity.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.11&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">P</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">re</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">p</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">arati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">f</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Ag</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ree</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">nt</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">.</font>&#160;&#160;It is acknowledged by each party that such party either had separate and independent advice of counsel or the opportunity to avail itself of same and chose not to at its own peril.&#160;&#160;In light of these facts, it is acknowledged that no party shall be construed to be solely responsible for the drafting hereof, and therefore any ambiguity shall not be construed against any party as the alleged draftsman of this Agreement.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.12&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Coop</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">erati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font>.&#160;&#160;Each party agrees, without further consideration, to cooperate and diligently perform any further acts, deeds and things and to execute and deliver any documents that may from time to time be reasonably necessary or otherwise reasonably required to consummate, evidence, confirm and/or carry out the intent and provisions of this Agreement, all without undue delay or expense.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.13&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">W</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ai</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">v</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">er</font>.&#160;&#160;No breach of any agreement or provision herein contained, or of any obligation under this Agreement, may be waived, nor shall any extension of time for performance of any other obligations or acts contained herein, except by written instrument signed by the party to be charged or as otherwise expressly authorized herein.&#160;&#160;No waiver of any breach of any agreement or provision herein contained shall be deemed a waiver of any proceeding or succeeding breach thereof, or a waiver or relinquishment of any other agreement or provision or right or power herein contained.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.14&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">R</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">d</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ies</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Cu</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">u</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">lati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">v</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font>.&#160;&#160;The remedies of each party under this Agreement are cumulative and shall not exclude any other remedies to which such party may be lawfully entitled.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

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<div>&#160;</div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Form of Assignment for Intellectual Property</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">&#160;</font></div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">ASSIGNMENT AGREEMENT</font><br>
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<td width="50%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></td>
<td width="3%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></td>
<td width="35%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></td>
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<div style="TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Sworn and subscribed before me this&#160;____________&#160;day of&#160;______________________&#160;, 2012, by</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block">_________________________________ .<br>
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<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>6
<FILENAME>btzo_ex104.htm
<DESCRIPTION>ASSET PURCHASE AGREEMENT
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<div style="TEXT-ALIGN: right; TEXT-INDENT: 0pt; DISPLAY: block"><font style="FONT-WEIGHT: bold">EXHIBIT 10.4</font><br>
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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">DVARAKA MARKETING, LLC,</font></div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">ASSE</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">PURC</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">H</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">AS</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">G</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">REE</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">M</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ENT</font></font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">A.</font></div>
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<div style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Seller is engaged in the operation of a company commonly referred to as &#8220;Digispace&#8221; which includes informational product sales and services, and related services (collectively, the &#8220;Business&#8221;).</font></div>
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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Agreement&#8221; means this Asset Purchase Agreement. </font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Business Day&#8221; means any day except a Saturday, Sunday or other day on which commercial banks in San Diego County, California are authorized or required by law to close.&#160;&#160;Whenever this Agreement refers to a number of days, such number shall refer to calendar days unless Business Days are specified.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Buyer&#8221; shall have the meaning set forth in the Preamble.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Closing&#8221; means the consummation of the transactions contemplated by this Agreement.&#160;&#160;The date </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Closing Date&#8221; and place of the Closing are set forth in <font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ecti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">8</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">.</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">1</font>.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Government Entity&#8221; means any Federal, state, local or foreign government, </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">authority, agency, department, bureau, commission, court or other body, officer, instrumentality or entity, and any arbitrator with authority to bind a party at law.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Indemnified Party&#8221; shall have the meaning set forth in <font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ecti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">9</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">.</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">3</font>.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Indemnifying Party&#8221; shall have the meaning set forth in <font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ecti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">9</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">.</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">3</font>.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Intellectual Property&#8221; shall mean patents, trademarks, copyrights, trade dress, trade secrets and other confidential information.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Internal Revenue Code&#8221; means the Internal Revenue Code of 1986, as amended.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Laws&#8221; shall have the meaning set forth in <font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ecti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">3</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">.</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">4</font>.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Lien&#8221; means, with respect to any asset, any mortgage, lien, pledge, charge, claim, security interest or encumbrance of any kind in respect of such asset.&#160;&#160;For the purposes of this Agreement, the Seller shall be deemed to own subject to a Lien any asset which it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement, capital lease or other title retention agreement or security interest relating to such asset.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Person&#8221; means an individual, a corporation, a limited liability company, a partnership, an association, a trust or any other entity or organization, including without limitation a Government Entity.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Purchase Price&#8221; shall have the meaning set forth in <font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ecti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">2</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">.</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">4</font>. </font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Seller&#8221; shall have the meaning set forth in the Preamble.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Tax&#8221; shall mean any and all taxes, charges, fees, levies or assessments payable to any Governmental Entity including, without limitation, (i) income, franchise, profits, gross receipts, minimum, alternative minimum, estimated ad valorem, value added, sales, use, service, real or personal property, capital stock, license, payroll, withholding, disability, employment, social security, worker&#8217;s compensation, unemployment </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">compensation, utility, severance, excise, stamp, windfall profits, transfer and gains taxes, (ii) custom duties, imposts, charges, levies or other similar assessments of any kind and (iii) interest, penalties and additions to tax imposed with respect thereto.</font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">ARTICLE II</font></div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">PURCHASE AND SALE OF ASSETS</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">sset</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">b</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Conv</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">y</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">d</font>.&#160;&#160;Upon the terms and subject to the conditions of this Agreement, Seller agrees, at the Closing, to sell to Buyer and Buyer agrees to purchase, for the consideration set forth in <font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ecti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">2</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">.</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">4</font>, all right, title and interest of Seller in and to (collectively, the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">c</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">qu</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">isiti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ssets</font>&#8221;):</font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;All Intellectual Property rights pertaining to the Business, including, without limitation rights to the name &#8220;DIGISPACE&#8221; or &#8220;DIGISPACE SOLUTIONS, LLC&#8221; and any variation of DIGISPACE; MBS, MAGIC BULLET SYSTEM; or any variation of MAGIC BULLET and all other common law, unregistered service and trademarks owned by Seller and used in connection with the Business;</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;All goodwill of the Business represented in the trade name, marks, domain name, phone numbers and otherwise, to the extent such items exist;</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Certain ongoing business, including relationships and contracts with vendors; buyers, customers, dealers which will be individually assigned where applicable identified on the attached Exhibit A;</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;All domain names and related websites currently owned, operated, and/or registered to the Seller which specifically include the word &#8220;Digispace&#8221;.&#160;&#160;The transferred rights shall include: internet traffic to such website; copyrights to web pages, page layouts, graphics, online forms, search engines, and banner advertisements used at such website; and, all registered or unregistered trademarks and service marks associated with any such domain name and/or website.&#160;&#160;A list of all domain names and websites is attached as Exhibit B;</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: -1pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Ex</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">cl</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ud</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ed</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ssets</font>.&#160;&#160;Seller is not selling, and Buyer is not purchasing, the corporate entity Digispace </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Holdings, Inc., the corporate record book and all stock evidencing ownership of the entity, which shall be retained by the Seller, and subsequently renamed or dissolved (the &#8220;Excluded Assets&#8221;).</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: -1pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">D</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">b</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t,</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Ob</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">li</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">g</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">,</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ia</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">b</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ilitie</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font></font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>

<div style="TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 5.35pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.3.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ss</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">u</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">d</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">.</font>&#160;&#160;Buyer agrees to assume the liabilities of the Seller in respect to any Digispace liability as set forth in Exhibit C, attached hereto and incorporated herein by this reference.</font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.3.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">No</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ss</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">u</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ed</font>. It is expressly understood and agreed that Buyer is not assuming and shall not be liable for any liability other than as set forth in Exhibit C, including without limitation, any liability or obligation relating to any Excluded Assets; any loans from equity holder(s) of the Business (excluding the Buyer or affiliates of the Buyer); approximately $44,000 owed to joint venture affiliates for past TAC commissions, to be paid by Seller within forty-five (45) days of Closing as set out in Exhibit D (the &#8220;JV Payments&#8221;); (the &#8220;Excluded Liabilities&#8221;).</font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Seller agrees to pay, perform and discharge the Excluded Liabilities.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Until the JV Payments are satisfied by the Seller, Seller shall indemnify and hold harmless Buyer and its respective officers, directors, employees, agents and counsel against and from any and all damages, liabilities, costs, expenses, claims and liabilities, any and all claims arising from such failure to pay and satisfy the JV Payments.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Pu</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rc</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">h</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">as</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">P</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rice</font>.&#160;&#160;The purchase price consideration shall be the terms of the Agreement dated </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">August 31, 2012 and the Settlement Agreement attached thereto.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">P</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">of</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Co</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">llecti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ons</font>.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Any collections, payments or reimbursements which the Buyer received after the Closing for sales from orders placed on or prior to the Closing, shall be the property of Seller, and shall be promptly paid over to the Seller by the Buyer.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Except for the amounts to be turned over to Seller under (a) above, all other amounts received by Buyer after the Closing for product sales shall belong to Buyer.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ales</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">d</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ra</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">sfer</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">x</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font>.&#160;&#160;&#160;All applicable sales, value added, transfer, documentary, use filing and other similar taxes and fees that may be levied on the sale, assignment, transfer or delivery of the Acquisition Assets to Buyer as contemplated hereunder, shall be paid by the party from whom it is assessed.&#160;&#160;Seller shall, at its own expense, file all necessary returns and other documentation with respect to all such sales or transfer taxes and, if required by applicable law, Buyer shall join the execution of such returns or other documents.&#160;&#160;Any decision as to value shall be determined by Buyer in its sole discretion, as it is the intent of the parties that the Buyer receive the most favorable tax treatment available to the Buyer.</font></div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">ARTICLE III </font></div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">REPRESENTATIONS AND WARRANTIES OF SELLER</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: -1pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Company, and Bitzio jointly and severally represent and warrant to Buyer that:</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">O</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">g</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">izati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Qu</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">alificati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font>:&#160;&#160;Company, is a California limited liability company duly organized, validly existing and in good standing under the laws of the State of California, and its sole shareholder is Bitzio, Inc., who has the power and authority to own and dispose of all of its properties and assets, including the Acquisition Assets.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Au</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ho</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rit</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">y</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">R</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">elati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ve</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">h</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Ag</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ree</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font>.&#160;&#160;Seller has the power and authority to execute and deliver this Agreement and to consummate the transactions contemplated by this Agreement.&#160;&#160;The execution and delivery by Seller of this Agreement, and the consummation by it of the transactions contemplated by this Agreement, have </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">been duly authorized by all necessary individuals on the part of Seller and no other proceedings on the part of Seller will be necessary thereto.&#160;&#160;This Agreement constitutes the valid and binding obligation of Seller enforceable in accordance with its terms except as the same may be limited by (i) any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditor&#8217;s rights generally, or (ii) general principles of equity, whether considered in a proceeding in equity or at law.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Con</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">se</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">nd</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">App</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ov</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">als</font>.&#160;&#160;Seller expressly represents that there is no requirement applicable to Seller to make any filing with, or to obtain any permit, authorization, consent, waiver or approval of any Person, including any Governmental Entity, as a condition to the execution and delivery by Seller of this Agreement or the lawful consummation of the transactions contemplated by this Agreement, specifically including the sale of the customer list, name and goodwill of the business and certain of its tangible assets.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Non</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">-</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Con</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">tra</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">v</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font>.&#160;&#160;&#160;Neither the execution and delivery by Seller of this Agreement nor the consummation of the transactions contemplated by this Agreement will violate, conflict with, result in a breach of, result in or constitute a default (or an event which, with the giving of notice or lapse of time or both, would constitute a default) under, or result in the cancellation or unilateral modification or amendment of, or accelerate the performance required by, or result in a right of termination or acceleration under, or result in the creation of any </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Lien upon any of the Acquisition Assets under any of the terms, conditions or provisions of (i) the Articles or Bylaws of Seller (ii) any other note, bond, mortgage, indenture, deed of trust, license, agreement, lease or other instrument, obligation or arrangement to which any of the Acquisition Assets may be subject, except for such defaults (or rights of termination, cancellation or acceleration) as to which requisite waivers of consents have been or will be obtained by Seller prior to the Closing or the obtaining of which has been waived by Buyer, or (iii) any order, writ, judgment, injunction, decree, citation, award, ruling, law, statute, rule or regulation (individually a &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">w</font>&#8221; and collectively, &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">w</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font>&#8221;) applicable to Seller, any of the Acquisition Assets, or the Business.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Co</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">p</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">lia</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ce</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">w</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">it</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">h</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">w</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font>.&#160;&#160;To Seller&#8217;s knowledge, Seller has operated the Business in compliance in all material respects with all applicable Laws including, without limitation, those related to unfair competition and trade matters, civil rights, public health and safety, worker health and safety and labors and nondiscrimination.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Seller has not received any written notice alleging noncompliance with any Law.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">iti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">g</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font>.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Seller has not received written notice of the filing or commencement of (including, without limitation, service of process with respect to) any actions, suits, claims, investigations or proceedings (legal, administrative or arbitrative) pending or, to Seller&#8217;s knowledge, threatened against or affecting Seller or which relate or may affect Acquisition Assets, whether at law or in equity and whether civil or criminal in nature, before any Governmental Entity, nor are there any valid and binding judgments, decrees or orders of any Governmental Entity outstanding against or affecting Seller or which relate to or may affect the Acquisition Assets, or which seek specifically to prevent, restrict or delay consummation of the transactions contemplated by, or fulfillment of any of the conditions of, this Agreement. There are no unsatisfied valid and binding judgments of record relating to or affecting the Acquisition Assets or the Business that have not been disclosed to Buyer, and of which Buyer is unaware.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Seller has not admitted in writing its inability to pay its debts generally as they become due, filed or consented to the filing against it of a petition in bankruptcy or a petition to take advantage of any insolvency act, made an assignment for the benefit of creditors, consented to the appointment of a receiver for itself </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">or for the whole or any substantial part of its property, or had a petition in bankruptcy filed against it, been adjudicated a bankrupt, or filed a petition or answer seeking reorganization or arrangement under the federal bankruptcy laws, or any other similar law of any jurisdiction.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: -1pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">itl</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">nd</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Cond</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">iti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">of</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">P</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">op</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">erties</font>.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Seller has, and will transfer to Buyer at Closing, good and marketable title to the Acquisition Assets free and clear of any Liens or rights of others.&#160;&#160;Buyer shall be given physical custody of all property included in the Acquisition Assets at Closing.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Acquisition Assets are being sold AS IS, and without any warranties.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">F</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">nd</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">er</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font>.&#160;&#160;No broker or finder is entitled to any fee or commission from the Seller for services rendered on behalf of Seller in connection with the transactions contemplated by this Agreement.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: -1pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.10&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">x</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">es</font>.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Seller has filed or cause to be filed on a timely basis all Tax returns and any other filings in respect of Taxes that are or were required to be filed by or with respect to it during the period that Seller owned or reported the income of the Business, either separately or as a member of a group of corporations, with respect to taxable periods (or any portion thereof) ending on or prior to the Closing Date pursuant to applicable legal requirements; (ii) all such Tax returns and other filings were correct and complete in all material respects; (iii) Seller has paid, or made provision for payment of, all Taxes that have or may have become due pursuant to those Tax returns and other filings, or pursuant to any assessment received by Seller or its business and any other Taxes due and payable by it for all tax periods (or any portion thereof) ending on or prior to the Closing Date; (iv) no claim has ever been made by an authority in a jurisdiction where Seller does not file Tax returns that it is or may be subject to taxation by that jurisdiction; and (v) there are no Liens for Taxes upon the Acquisition Assets.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;That there is no dispute or claim concerning any Tax liability of Seller either (i) claimed raised by any authority in writing or (ii) as to which any of Seller and the directors and officers (and employees responsible for Tax matters) of Seller has actual knowledge after reasonable investigation.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Seller has not waived any statute of limitation in respect of Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.11&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Fu</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ll</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">D</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">iscl</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">u</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font>. To Seller&#8217;s knowledge, none of the representations and warranties of Seller made in this Agreement, any exhibit or schedule attached to this Agreement, or any certificate delivered by or on behalf of Seller to Buyer pursuant to this Agreement, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made,</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">not misleading.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.12&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#8220;AS IS&#8221; Transaction.&#160;&#160;The Buyer hereby acknowledges and agrees that, except as otherwise expressly provided in this Agreement, the Seller makes no representations or warranties whatsoever, express or implied, with respect to any matter relating to the Business or the Acquisition Assets (including, without limitation, income to be derived or expenses to be incurred in connection with the Acquisition Assets, the value or transferability of the Acquisition Assets (or any portion thereof), the terms, amount, validity or enforceability of any liabilities set out in Exhibit C, the merchantability or fitness of the Acquisition Assets (or any portion thereof for any particular purpose, or any other matter or thing relating to the Business or the Acquisition Assets or any portion thereof).&#160;&#160;Without in any way limiting the foregoing, the Seller hereby disclaims any warranty (express or implied) </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">of merchantability or fitness for any particular purpose as to any portion of the Acquisition Assets.&#160;&#160;The Buyer </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">further acknowledges that the Buyer has full knowledge of all such other matters relating to or affecting the Acquisition Assets as the Buyer deemed necessary or appropriate and that in proceeding with its acquisition of the Acquisition Assets, the Buyer is doing so based solely upon such knowledge.&#160;&#160;Accordingly, the Buyer accepts the Acquisition Assets at the Closing &#8220;AS IS,&#8221; &#8220;WHERE IS,&#8221; and &#8220;WITH ALL FAULTS.&#8221;</font></div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">ARTICLE IV </font></div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">REPRESENTATIONS AND WARRANTIES OF BUYER</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Buyer represents and warrants to Seller that:</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">O</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">g</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">izati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Qu</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">alificati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font>:&#160;&#160;Buyer, Dvaraka Marketing, LLC, duly organized, validly existing and in good standing under the laws of the State of California, and has the corporate power and authority to own all of its properties and assets, and carry on its business as proposed to be conducted.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Au</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ho</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rity</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">R</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">elati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">v</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">h</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Ag</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ree</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">nt</font>.&#160;&#160;Buyer has corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated by this Agreement.&#160;&#160;The execution and delivery by Buyer of this Agreement, and the consummation by it of the transactions contemplated by this Agreement, have been duly authorized by all necessary corporate action on the part of Buyer and no other corporate proceedings on the part of Buyer will be necessary thereto.&#160;&#160;This Agreement constitutes the valid and binding obligation of Buyer enforceable in accordance with its terms except as the same may be limited by (i) any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditor&#8217;s rights generally, or (ii) general principles of equity, whether considered in a proceeding in equity or at law.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Con</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">se</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">nd</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">App</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ov</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">als</font>.&#160;&#160;There is no requirement applicable to Buyer to make any filing with, or to obtain any permit, authorization, consent, waiver or approval of any Governmental Entity as a condition to the execution and delivery by Buyer of this Agreement or the lawful consummation of the transactions contemplated by this Agreement.&#160;&#160;There is no requirement that any party to any agreement to which Buyer is a party consent to the execution and delivery of, or the consummation of the transactions contemplated by, this Agreement.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Non</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">-</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Con</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">tra</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">v</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font>.&#160;&#160;&#160;The execution and delivery by Buyer of this Agreement does not, and the consummation of the transactions contemplated by this Agreement will not violate, conflict with, result in a breach of, result in or constitute a default (or an event which, with the giving of notice or lapse of time or both, would constitute a default) under, or result in the cancellation or unilateral modification or amendment of, or accelerate the performance required by, or result in a right of termination or acceleration under, or result in the creation of any </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Lien upon any of the assets of Buyer under any of the terms, conditions or provisions of (a) the Articles of Incorporation or Bylaws of Buyer (b) any note, bond, mortgage, indenture, deed of trust, license, agreement, lease or other instrument, obligation or arrangement to which Buyer is a party or to which Buyer or any of its assets may be subject, except for such defaults (or rights of termination, cancellation or acceleration) as to which requisite waivers of consents have been or will be obtained by Buyer prior to the Closing or the obtaining of which has been waived </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">by Seller, or (c) any Law applicable to Buyer or any of its assets.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; TEXT-DECORATION: underline">B</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ok</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">er&#8217;s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">F</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">nd</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">er&#8217;s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">F</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ees</font>.&#160;&#160;Neither the Buyer nor any affiliate of the Buyer has authorized any person to act as broker, finder, banker, consultant, intermediary or in any other similar capacity which would entitle such person to any investment banking, brokerage, finder&#8217;s or similar fee in connection with the transactions contemplated by this Agreement, except where any fee or payment due such persons would be solely the obligation of the Buyer.</font></div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">ARTICLE V </font></div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">ADDITIONAL AGREEMENTS</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">N</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Ch</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ng</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font>.&#160;&#160;Within sixty (60) days after this Agreement has been executed, Seller shall cause its name to be changed.&#160;&#160;Thereafter, Seller shall forever cease and desist from holding itself out as &#8220;DIGISPACE,&#8221; or any similar name and, with the sole exception set forth in <font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ecti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">2</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">.</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">2</font>, shall no longer have any right, interest, and/or license to operate under the name &#8220;DIGISPACE&#8221; or any similar name.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Bu</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">l</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">k</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ales</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">w</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font>.&#160;&#160;Seller will indemnify and hold harmless Buyer pursuant to Article IX from and against any and all claims made by creditors of Seller relating to provisions of the &#8220;bulk sales laws&#8221; of any state or other jurisdiction which may be applicable to the transactions contemplated by this Agreement and from all costs (including reasonable attorney&#8217;s fees) incurred in the defense of any claims made under such laws.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">M</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">aterial</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">d</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Co</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rres</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">pond</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ce</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">R</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ecei</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">v</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ed</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">fter</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">C</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">l</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">si</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">g</font>. Following the Closing, Seller promptly shall deliver to Buyer all future orders, mail, email, and other communications it receives relating to the Acquisition Assets or the Business.&#160;&#160;Seller agrees to refer any and all inquiries by or from any past, present, or prospective customers relating to the Business, to Buyer.&#160;&#160;Seller also agrees, on the Closing Date, to switch all phone numbers, mailing addresses, shipping addresses, web site, client lists, good will and trade names to Buyer.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ff</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rt</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Con</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">u</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">mm</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ate</font>.&#160;&#160;Subject to the terms and conditions herein provided, Seller shall use commercially reasonable efforts to take, or cause to be taken, all action and to do, or cause to be done, all things necessary, proper or advisable to consummate, as promptly as practicable, the transactions contemplated by this Agreement including, without limitation, the obtaining of all necessary consents, waivers, authorizations, orders and approvals of third parties, whether private or governmental, required of it by this Agreement.&#160;&#160;Seller shall cooperate with Buyer in assisting it to comply with the provisions of this Section.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Fu</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rt</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">h</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">er</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ss</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">u</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ra</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ces</font>.&#160;&#160;Each party shall, at the request of the other party, at or after the Closing, without further consideration and at such requesting party&#8217;s expense, promptly execute and deliver such additional documents as that parties may reasonably deem necessary or desirable in order to consummate more effectively the transactions contemplated by the Agreement.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">p</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">l</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">oy</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ee</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">M</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">atters</font>.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">G</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">eral</font>. Seller shall be solely responsible for all obligations with respect to all of the employees and Staff of the Business relating to the period through and including the Closing Date, including without limitation, all severance pay, workers&#8217; compensation and unemployment insurance, and all Federal, state and local tax withholdings and other social and employment benefits through and including the Closing Date.&#160;&#160;Seller agrees to assume total responsibility for any claims, obligations or benefits whatsoever under any plans or agreements relating to Seller&#8217;s employees, including any fiduciary or administrative responsibility to account for or dispose of any such benefits.&#160;&#160;Seller shall comply in all respects with the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">W</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">k</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">er</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Ad</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">j</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">u</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">st</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">nt</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">R</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">etrai</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ng</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">nd</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">No</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">tificati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">c</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font>&#8221; to the extent applicable.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">M</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ai</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">te</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">c</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">of</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Bu</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">si</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ess</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">,</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">N</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">C</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">reati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">of</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ie</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font>.&#160;&#160;Seller covenants and agrees that prior to the </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Closing Date, it shall (i) comply in all material respects with all Laws applicable to it and the Business; (ii) promptly </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">notify Buyer of any event occurring after the date of execution of this Agreement which causes or is reasonably expected to cause any representation or warranty in this Agreement to be incorrect or incomplete.</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 2.65pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.10&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">N</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">g</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ve</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Cov</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ts</font>.&#160;&#160;Seller covenants and agrees that, prior to the Closing, Seller shall not do any of the following without the prior written consent of Buyer, which shall not be unreasonably withheld, conditional or delayed:</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Sell, lease, exchange, mortgage, pledge, transfer or otherwise dispose of, or agree to sell, lease, exchange, mortgage, pledge, transfer or otherwise dispose of, any of the Acquisition Assets, including the disposition of assets held for resale or lease in the ordinary course of business;</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Create or suffer to exist any Lien on any of the Acquisition Assets; or</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Undertake any action outside the ordinary course of its business.</font></div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">ARTICLE VI </font></div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">BUYER COVENANTS</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">6.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">E</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ff</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rt</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Con</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">su</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">mm</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">at</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font>.&#160;&#160;Subject to the terms and conditions herein provided, Buyer shall use its best efforts to take, or cause to be taken, all action and to do, or cause to be done, all things necessary, proper or advisable to consummate, as practicable, the transactions contemplated by this Agreement including, without limitation, the obtaining of all necessary consents, waivers, authorizations, orders and approvals of third parties, whether private or governmental, required of it by this Agreement.&#160;&#160;Buyer shall cooperate fully with Seller to the extent it is required to perform any actions under this Section.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">6.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Fu</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rt</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">h</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">er</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ss</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">u</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ra</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ces</font>.&#160;&#160;Buyer shall, at the request of Seller, at or after the Closing, without further consideration and at Seller&#8217;s expense, promptly execute and deliver such additional documents as Seller may reasonably deem necessary or desirable in order to consummate more effectively the transactions contemplated by this Agreement.&#160;&#160;In addition, Buyer shall grant Seller access upon reasonable advanced written notice and during regular business hours to the customer files transferred to Buyer pursuant to this Agreement, or copies thereof, to the extent Seller needs to review such files to satisfy reporting requirements or other business purposes.</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 14.25pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">7.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Cond</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">iti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ons</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Ob</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">li</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">g</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ons</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">of</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Buy</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">er</font>.&#160;&#160;The obligations of the Buyer to consummate the Closing is subject to the following conditions:</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 81pt; MARGIN-RIGHT: -1pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;No default or breach of any covenants by Seller.</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 19.8pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">7.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Cond</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">iti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ons</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Ob</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">li</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">g</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ons</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">of</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">eller</font>. The obligations of the Seller to consummate the Closing is subject to the following conditions:</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 81pt; MARGIN-RIGHT: -1pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;No default or breach of any covenants by Buyer.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">All representations and warranties of Seller contained in this Agreement were true and correct when given and are true and correct as of the Closing Date; and</font></div>
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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">ARTICLE VIII</font></div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">CLOSING</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">8.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">d</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">P</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">lace</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">f</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">C</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">l</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">si</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ng</font>.&#160;&#160;The Closing shall take place concurrently with the execution and delivery hereof, and the Closing shall take place not later than 5:00 p.m., P.S.T.&#160;&#160;on August 31 1, 2012, at the offices of Seller or at such other earlier time, date and place as the parties shall agree.&#160;&#160;If the Closing takes place, the </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Closing and all of the transactions contemplated by this Agreement shall be deemed to have occurred simultaneously and become effective as of 11:59 p.m. on the date that the Closing takes place.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">8.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">D</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">eli</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">v</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">eries</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">b</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">y</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">eller</font>. Within seven calendar days after Closing, Seller shall deliver to Buyer all </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Acquisition Assets.&#160;&#160;Any cost associated with the transfer of the Acquisition Assets shall be born by Buyer.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">8.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">D</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">eli</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ve</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rie</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">by</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Buy</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font>.&#160;&#160;At the Closing Buyer shall deliver to Seller the agreements set forth in <font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ecti</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">2</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">.</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">4</font>, and any documents as Seller may reasonably request (in the form satisfactory to Seller) to the extent necessary to implement the terms and conditions of this Agreement.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">8.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">R</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">is</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">k</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">of</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Lo</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font>.&#160;&#160;Risk of loss for the Acquisition Assets shall remain with the Seller until Closing, at which time it shall pass to Buyer.</font></div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">ARTICLE XI </font></div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">GENERAL PROVISIONS</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">No</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">tices</font>.&#160;&#160;All notices and other communications required or permitted to be given by this Agreement shall be in writing and shall be deemed duly given (a) one Business Day after delivery, if delivered personally, (b) four Business Days after posting, if mailed by registered or certified first class air mail (return receipt requested) or (c) one Business Day after dispatch if sent by telex or telefax (with an answer back from the receiving party and a confirmatory mailing as provided in (b) by the sender) or by email (provided no email return to sender message is returned to the sender) to the parties at the following addresses (or at such other address for the party as shall be specified by like notice):</font></div>

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<td valign="top" width="40%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">To the Dvaraka and Shah:</font></font></td>
<td width="60%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">8605 Santa Monica Blvd<font style="DISPLAY: inline; FONT-FAMILY: times new roman">.</font> </font></font>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 108.45pt" align="left"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Suite 57149</font></font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: -1pt" align="left"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Los Angeles California, 90069</font></font></div>
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<td valign="top" width="40%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">To&#160;Bitzio:&#160;&#160;&#160;&#160;</font></td>
<td width="60%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">B</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">i</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">tz</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">i</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">o</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">, I</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">nc.</font></font> </font>

<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">548 Market Street, Suite 18224</font></font></div>

<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">San&#160;Francisco, California&#160;94104</font></font></div>
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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Rejection or other refusal to accept, or the inability to deliver because of a changed address of which no notice was given, shall not affect the date of such notice in accordance with the foregoing provisions.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">I</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ter</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">p</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">retati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">.</font>&#160;&#160;The headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.&#160;&#160;Unless the context otherwise required are used herein, words in the singular shall include words in the plural and vice versa, words in one gender shall include words in the other gender.&#160;&#160;Time is of the essence in this Agreement.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Coun</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ter</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">p</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">arts</font>.&#160;&#160;This Agreement may be executed in counterparts, each of which shall be deemed an </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">original, and all of which together shall constitute one and the same instrument.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ssi</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">gn</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font>.&#160; This Agreement shall be binding upon and inure to the benefit of the parties hereto, and their respective successors and permitted assigns; <font style="DISPLAY: inline; TEXT-DECORATION: underline">p</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ov</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">d</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">d</font>, <font style="DISPLAY: inline; TEXT-DECORATION: underline">how</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">v</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">er</font>, that neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned by any of the parties hereto without the prior written consent of the other parties.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; TEXT-DECORATION: underline">En</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">tir</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Ag</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ree</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font>.&#160; This Agreement, including all exhibits and schedules constitutes the entire agreement and supersedes all other agreements and understandings, both written and oral, between the parties with respect to the transactions contemplated by this Agreement.&#160;&#160;There are no restrictions, agreements, promises, warranties, covenants or undertakings with respect to the transactions contemplated by this Agreement other than those expressly set forth herein.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; TEXT-DECORATION: underline">M</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">od</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ification</font>.&#160; No modification to this Agreement will be effective unless assented to in writing by the party to be charged.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; TEXT-DECORATION: underline">Gov</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">er</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ng</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">w</font>.&#160; This Agreement and the relationship between the parties shall be governed in all respects by the laws of the State of California without regard to its laws or regulations relating to conflicts of laws. Both parties expressly consent to the jurisdiction of the courts in the County of San Diego, City of San Diego, relative to any dispute arising out of this Agreement.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; TEXT-DECORATION: underline">B</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">efits</font>.&#160; This Agreement is not intended to and shall not confer upon any other Person, other than the parties respective heirs and legal representatives, any rights or remedies with respect to the subject matter hereof.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.9&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">v</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">era</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">b</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ilit</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">y</font>.&#160; If any one or more of the provisions of this Agreement shall be held to be invalid, illegal or unenforceable the validity, legality or enforceability of the remaining provisions of this Agreement shall not be affected thereby.&#160;&#160;To the extent permitted by applicable law, each party waives any provision of law which renders any provision of this Agreement invalid, illegal or unenforceable.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.10&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">R</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">elati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">h</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">p</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">f</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">h</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">P</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">arties</font>.&#160; Nothing in this Agreement shall be deemed to constitute a partnership, joint venture or other form of entity.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.11&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">P</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">re</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">p</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">arati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">f</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Ag</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ree</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">nt</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">.</font>&#160; It is acknowledged by each party that such party either had separate and independent advice of counsel or the opportunity to avail itself of same and chose not to at its own peril.&#160;&#160;In light of these facts, it is acknowledged that no party shall be construed to be solely responsible for the drafting hereof, and therefore any ambiguity shall not be construed against any party as the alleged draftsman of this Agreement.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.12&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Coop</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">erati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font>.&#160; Each party agrees, without further consideration, to cooperate and diligently perform any further acts, deeds and things and to execute and deliver any documents that may from time to time be reasonably necessary or otherwise reasonably required to consummate, evidence, confirm and/or carry out the intent and provisions of this Agreement, all without undue delay or expense.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.13&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">W</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ai</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">v</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">er</font>.&#160; No breach of any agreement or provision herein contained, or of any obligation under this Agreement, may be waived, nor shall any extension of time for performance of any other obligations or acts contained herein, except by written instrument signed by the party to be charged or as otherwise expressly authorized herein.&#160;&#160;No waiver of any breach of any agreement or provision herein contained shall be deemed a waiver of any proceeding or succeeding breach thereof, or a waiver or relinquishment of any other agreement or provision or right or power herein contained.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.14&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">R</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">d</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ies</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Cu</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">u</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">lati</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">v</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font>.&#160;&#160;The remedies of each party under this Agreement are cumulative and shall not exclude any other remedies to which such party may be lawfully entitled.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.15&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">tt</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">y</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s'</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">fees</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">d</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">c</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">st</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font>.&#160;&#160;If any party institutes or should the parties otherwise become a party to any action or proceeding based upon or arising out of this Agreement including, without limitation, to enforce or interpret this Agreement or any provision hereof, or for damages by reason of any alleged breach of this Agreement or any provision hereof, or for a declaration of rights in connection herewith, or for any other relief, including equitable relief, in connection herewith, the prevailing party in any such action or proceeding, whether or not such action or proceeding proceeds to final judgment or determination, shall be entitled to receive from the non- prevailing party as a cost of suit, and not as damages, all costs and expenses of prosecuting or defending the action or proceeding, as the case may be, including, without limitation, reasonable attorneys' and other fees.</font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized officers.</font></div>

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<div><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">DVARAKA MARKETING, LLC.&#160;</font></div>

<div><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">a California limited liability company</font></div>
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<div><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">DIGITAL SOLUTIONS, INC.</font> </div>

<div><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">a Delaware corporation</font></div>
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<td width="35%" style="BORDER-BOTTOM: black 2px solid"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><img src="btzo_ex104002.jpg"></font></td>
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<td width="35%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Amish Shah, CEO</font></font></td>
<td width="7%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></td>
<td width="3%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></td>
<td width="35%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">William Schonbrun, President</font></font></td>
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<td colspan="2" width="38%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">BITZIO, INC.</font></font></td>
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<td valign="bottom" width="3%" style="PADDING-BOTTOM: 2px"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">By:</font></td>
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<TYPE>EX-10.5
<SEQUENCE>7
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<DESCRIPTION>NOTE PURCHASE AGREEMENT
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<div style="TEXT-ALIGN: right"><font style="FONT-WEIGHT: bold">EXHIBIT 10.5</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-VARIANT: small-caps; DISPLAY: inline; FONT-WEIGHT: bold">Now, Therefore</font>, in consideration of the foregoing, and the representations, warranties, covenants and conditions set forth below, the Company and each Purchaser, intending to be legally bound, hereby severally and not jointly agree as follows:</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">1. <font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font></font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-VARIANT: small-caps; DISPLAY: inline; FONT-WEIGHT: bold">Amount and Terms of the Loans</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">.</font>&#160;&#160;Subject to the terms of this Agreement, at the Closing (as defined below) the Company agrees to issue and sell to each of the Purchasers, and each Purchaser agrees, severally and not jointly, to purchase from the Company, a convertible promissory note in the form attached to this Agreement as <font style="DISPLAY: inline; TEXT-DECORATION: underline">Exhibit&#160;A</font><font style="FONT-STYLE: italic; DISPLAY: inline">&#160;</font>(each, a &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Note</font>&#8221; and collectively, the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Notes</font>&#8221;) in the principal amount set forth on each Purchaser&#8217;s signature page (each, a &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Loan Amount</font>&#8221;), in an aggregate principal amount not to exceed $1,500,000, provided, however, that the Company may accept more than $1,500,000 in aggregate principal amount upon the written agreement of the Company and a majority of the Purchasers (the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Aggregate Offering Amount</font>&#8221;.&#160;&#160;The Notes shall mature twelve months from the date of issuance, or such earlier date set forth in the Notes (the <font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">&#8220;Maturity Date&#8221;</font>).</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">2. <font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font></font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-VARIANT: small-caps; DISPLAY: inline; FONT-WEIGHT: bold">Additional Consideration</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">.</font>&#160;&#160;In addition to the Notes, each Purchaser shall also receive a warrant (each a &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Warrant</font>&#8221; and collectively, the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Warrants</font>&#8221;), exercisable until two years after the date of issuance, in substantially the form attached hereto as <font style="DISPLAY: inline; TEXT-DECORATION: underline">Exhibit B</font>, to purchase the number of shares of common stock of the Company (&#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Warrant Shares</font>&#8221;) equal to two times the product obtained by multiplying the Purchaser&#8217;s Loan Amount by the Initial Conversion Price.&#160;&#160;The Warrant shall initially have a strike price equal to $0.30 per share of common stock (the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Strike Price</font>&#8221;).</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">3. <font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font></font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-VARIANT: small-caps; DISPLAY: inline; FONT-WEIGHT: bold">Collateral.&#160;&#160;</font>Pursuant to the Security Agreement in the form attached hereto as <font style="DISPLAY: inline; TEXT-DECORATION: underline">Exhibit C</font><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font>(the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Security Agreement</font>&#8221;), the Company shall grant to the Purchasers a continuing security interest in all Collateral (as defined in the Security Agreement) to secure all obligations and performance of each of the Company&#8217;s duties under the Notes and any related documentation.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">4. <font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font></font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-VARIANT: small-caps; DISPLAY: inline; FONT-WEIGHT: bold">Conversion. </font>The Notes will be convertible into shares of the Company&#8217;s Common Stock, par value $0.001 per share (&#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Common Stock</font>&#8221;), at $0.15 per share (the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Initial</font> <font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Conversion Price</font>&#8221;).&#160;&#160;The Initial Conversion Price of the shares of Common Stock issued in connection with the conversion of any particular Note shall be subject to adjustment from time to time in the manner set forth in the Note.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">5. <font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font></font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-VARIANT: small-caps; DISPLAY: inline; FONT-WEIGHT: bold">Use of Proceeds</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">.</font> The proceeds from the sale of the Notes will be used for general corporate purposes, including working capital and the payment and repayment of various Company and subsidiary obligations.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">6.1&#160;&#160;&#160;&#160;&#160;&#160; </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Closing Date.</font>&#160;&#160;The initial closing of the sale and purchase of the Notes (the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Initial</font> <font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Closing</font>&#8221;) shall be held on the Effective Date, or at such other time as the Company and the initial Note Purchaser agree.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">6.2&#160;&#160;&#160;&#160;&#160;&#160; </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Subsequent Closing(s).</font>&#160;&#160;At any time, the Company may, at its discretion, allow one or more subsequent closings of the purchase and sale of the Notes in an aggregate principal amount not to exceed $1,500,000 (each a &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Subsequent Closing</font>&#8221; and together with the Initial Closing and each other Subsequent Closing, each, a &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Closing</font>&#8221;).&#160;&#160;Upon their execution and delivery of this Agreement and such other counterpart signature pages as contemplated by Section 6.3 below, such parties shall be deemed to be &#8220;Purchasers&#8221; for all purposes under this Agreement.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">6.3&#160;&#160;&#160;&#160;&#160;&#160; </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Delivery.</font>&#160;&#160;At each Closing, (i)&#160;each Purchaser will deliver to the Company (a) the signature page to this Agreement completed by the Purchaser, (b) a signature page to the Escrow Agreement, if applicable, and (c) a check or wire transfer of funds in the amount of such Purchaser&#8217;s Loan Amount or, in the sole discretion of the Company, by tendering any previously issued notes or other cancellation of indebtedness of the Company held by such Purchaser; and (ii)&#160;the Company will issue and deliver to each Purchaser (a) a Note in favor of such Purchaser payable in the principal amount of such Purchaser&#8217;s Loan Amount, (b) a corresponding Warrant, and (c) a fully executed copy of the Security Agreement.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">7. <font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font></font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-VARIANT: small-caps; DISPLAY: inline; FONT-WEIGHT: bold">Representations and Warranties of the Company.&#160;&#160;</font>The Company hereby represents and warrants to each Purchaser in a Closing, as of the date of such Closing, as follows:</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">7.1&#160;&#160;&#160;&#160;&#160;&#160; </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Organization, Good Standing and Qualification</font>.&#160;&#160;The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada.&#160;&#160;The Company has the requisite corporate power to own and operate its properties and assets and to carry on its business as now conducted and as proposed to be conducted.&#160;&#160;The Company is duly qualified and is authorized to do business and is in good standing as a foreign corporation in all jurisdictions in which the nature of its activities and of its properties (both owned and leased) makes such qualification necessary, except for those jurisdictions in which failure to do so would not have a material adverse effect on the Company or its business.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">7.2&#160;&#160;&#160;&#160;&#160;&#160; </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Corporate</font> <font style="DISPLAY: inline; FONT-WEIGHT: bold">Power</font>.&#160;&#160;The Company has all requisite corporate power to execute and deliver this Agreement, the Notes, the Warrants, the Security Agreement and any other related documentation (collectively, the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Loan Documents</font>&#8221;) and to carry out and perform its obligations under the Loan Documents, including, but not limited to, its obligations to issue the Securities (defined below).</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">7.3&#160;&#160;&#160;&#160;&#160;&#160; </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Authorization.</font>&#160;&#160;All corporate action on the part of the Company, its directors and its stockholders necessary for the authorization, execution, delivery and performance of the Loan Documents by the Company and the performance of the Company&#8217;s obligations thereunder, including the issuance of the Securities, has been properly taken.&#160;&#160;The Loan Documents, when executed and delivered by the Company, will 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.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">7.4&#160;&#160;&#160;&#160;&#160;&#160; </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Capitalization</font>.&#160;&#160;The capitalization of the Company immediately prior to the initial Closing consists of a total of: (A) 25,000,000 authorized shares of preferred stock, par value $0.001 per share, consisting of 2,500,000 shares designated as Series A Convertible Redeemable Preferred Stock (&#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Series A Preferred Stock</font>&#8221;), of which 5,343,120 are issued and outstanding and (B) a total of 250,000,000 authorized shares of common stock, par value $0.001 per share, of which 63,414,821 are issued and outstanding.&#160;&#160;The Common Stock and Series&#160;A Preferred Stock shall have the rights, preferences, privileges and restrictions set forth in the Company&#8217;s Articles of Incorporation, including any certificates of designation.&#160;&#160;The outstanding shares have been duly authorized and validly issued, are fully paid and nonassessable, and were issued in compliance with applicable laws.&#160;&#160;The Company has reserved up to 30,000,000 shares of Common Stock for issuance upon conversion of the Notes and exercise of the Warrants issued hereunder.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">7.5&#160;&#160;&#160;&#160;&#160;&#160; </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Options, Warrants, Reserved Shares</font>.&#160;&#160;Except as otherwise provided in the Loan Documents and except for (i) the conversion privileges of the Series A Preferred Stock; (ii)&#160;warrants exercisable for up to 2,544,000 shares of Common Stock and (iii) options exercisable for up to 21,648,462 shares of Common Stock, as of the initial Closing there are no options, warrant or other rights to purchase or acquire any of the Company&#8217;s capital stock or otherwise reserved for issuance.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">7.6&#160;&#160;&#160;&#160;&#160;&#160; </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Agreements</font>.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">(a)&#160;&#160;&#160;&#160;&#160;&#160; </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Except for the Loan Documents and agreements between the Company and its employees with respect to sales of the Company&#8217;s Common Stock, there are no agreements, understandings or proposed transactions between the Company and any of its officers, directors, affiliates, or any affiliate thereof other than as disclosed in the SEC Filings (as defined below).</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">(b)&#160;&#160;&#160;&#160;&#160;&#160; </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Other than as disclosed in the SEC Filings, there are no agreements, understandings, instruments, contracts, proposed transactions, judgments, orders, writs or decrees to which the Company is a party or by which it is bound that may involve&#160;obligations or liabilities (contingent or otherwise) of, or payments by the Company in excess of, $50,000 other than in the ordinary course of the Company&#8217;s business.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">7.7&#160;&#160;&#160;&#160;&#160;&#160; </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Title to Property</font>.&#160;&#160;Other than as disclosed in the SEC Filings, the Company has good and marketable title to its properties and assets, and has good title to all its leasehold interests, in each case subject to no material mortgage, pledge, lien, lease, encumbrance or charge (&#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Lien</font>&#8221;), other than Permitted Liens (as defined in the Security Agreement). With respect to the property and assets it leases, the Company is in compliance with such leases in all material respects.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">7.8&#160;&#160;&#160;&#160;&#160; </font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Litigation</font>.&#160;&#160;There are no actions, suits, proceedings or investigations pending against the Company or its properties (nor has the Company received notice of any threat thereof) before any court or governmental agency that, either individually or in the aggregate, if determined adversely to the Company, would or could reasonably be expected to have a material adverse effect or result in any change in the current equity ownership of the Company. The Company is not a party or subject to the provisions of any order, writ, injunction, judgment or decree of any court or government agency or instrumentality. There is no action, suit or proceeding initiated by the Company currently pending or which the Company currently intends to initiate.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">7.9&#160;&#160;&#160;&#160;&#160;&#160; </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Changes</font>.&#160;&#160;Since March 31, 2012 there has not been a material adverse change in the assets, liabilities, financial condition or operating results of the Company from that reflected in the financial statements, except changes in the ordinary course of business or otherwise disclosed in the SEC Filings.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">7.10&#160;&#160;&#160;&#160; </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Filings.&#160;&#160;</font>All documents filed with the Securities and Exchange Commission (the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Commission</font>&#8221;) subsequent to December 19, 2011 (the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">SEC Filings</font>&#8221;) complied as to form in all material respects with the requirements of the Securities Act of 1933, as amended (the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Act</font>&#8221;) and the Securities Exchange Act of 1934, as amended, (the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Exchange Act</font>&#8221;) as applicable, and the rules and regulations of the Commission thereunder.&#160;&#160;None of the SEC Filings, when such documents became effective or were so filed, as the case may be, contained an untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">7.11&#160;&#160;&#160;&#160; </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Governmental Consents</font>.&#160;&#160;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 Notes or the consummation of any other transaction contemplated by the Loan Documents will have been obtained and will be effective at the Closing.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">7.12&#160;&#160;&#160;&#160; </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Compliance with Laws</font>.&#160;&#160;The Company is not in violation of any applicable statute, rule, regulation, order or restriction of any domestic or foreign government or any instrumentality or agency thereof in respect of the conduct of its business or the ownership of its properties, the violation of which would materially and adversely affect the business, assets, liabilities, financial condition, operations or prospects of the Company.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">7.13&#160;&#160;&#160;&#160; </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Compliance with Other Instruments</font>.&#160;&#160;The Company is not in violation or default of any term of its articles of incorporation, including any certificate of designation, or bylaws, or, except as disclosed in an SEC Filing, of any provision of any mortgage, indenture, contract, agreement or instrument to which it is a party and by which it is bound or of any judgment, decree, order or writ, other than such violation(s) that would not have a material adverse effect on the Company. The execution, delivery and performance of the Loan Documents, and the consummation of the transactions contemplated thereby will not result in any such violation or be in conflict with, or constitute, with or without the passage of time and giving of notice, either a default under any such provision, instrument, judgment, decree, order or writ or an event that results in the creation of any Lien (except as contemplated herein), charge or encumbrance upon any assets of the Company or the suspension, revocation, impairment, forfeiture, or nonrenewal of any material permit, license, authorization or approval applicable to the Company, its business or operations or any of its assets or properties.&#160;&#160;Without limiting the foregoing, the Company has obtained all waivers reasonably necessary with respect to any preemptive rights, rights of first refusal or similar rights, including any notice or offering periods provided for as part of any such rights, in order for the Company to consummate the transactions contemplated by the Loan Agreements without any third party obtaining any rights to cause the Company to offer or issue any securities of the Company as a result of the consummation of the transactions contemplated hereunder.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">7.14&#160;&#160;&#160;&#160; </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Offering.</font>&#160;&#160;Assuming the accuracy of the representations and warranties of the Purchasers contained in Section&#160;<a href="#_Ref196195802">8</a> hereof, the offer, issue, and sale of the Notes and Warrants are and will be exempt from the registration and prospectus delivery requirements of the Act, and have been registered or qualified (or are exempt from registration and qualification) under the registration, permit, or qualification requirements of all applicable state securities laws.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">8. <font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font></font><font style="FONT-VARIANT: small-caps; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Representations and Warranties of the Purchasers</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">8.1&#160;&#160;&#160;&#160;&#160; </font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Purchase for Own Account</font>.&#160;&#160;Each Purchaser represents that it is acquiring the Notes and Warrants and any securities issued upon the full conversion or exercise thereof (collectively, the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Securities</font>&#8221;) solely for its 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.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">8.2&#160;&#160;&#160;&#160;&#160; </font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Information and Sophistication</font>.&#160;&#160;Without lessening or obviating the representations and warranties of the Company set forth in Section 7, each Purchaser hereby: (i) acknowledges that it has received all the information it has requested from the Company and it considers necessary or appropriate for deciding whether to acquire the Securities, (ii) represents that it has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of the Securities and to obtain any additional information necessary to verify the accuracy of the information given the Purchaser and (iii) further represents that it has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risk of this investment.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">8.3&#160;&#160;&#160;&#160;&#160; </font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Ability to Bear Economic Risk</font>.&#160;&#160;Each Purchaser acknowledges that investment in the Securities involves a high degree of risk, and represents that it is able, without materially impairing its financial condition, to hold the Securities for an indefinite period of time and to suffer a complete loss of its investment.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">8.4&#160;&#160;&#160;&#160;&#160; </font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Accredited Investor Status.</font>&#160;&#160;Each Purchaser is an &#8220;accredited investor&#8221; as such term is defined in Rule 501 under the Act.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">9.1&#160;&#160;&#160;&#160;&#160; </font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Protective Provisions</font>.&#160;&#160;So long as at least 50% of the aggregate principal under the Notes is outstanding, the Company shall not, without the prior written consent of a Majority in Interest (as defined below) incur, create, assume, become liable for or grant any Lien, other than Permitted Liens, on the Company&#8217;s assets or permit any of its direct or indirect subsidiaries to do the same.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font style="FONT-VARIANT: small-caps; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Miscellaneous</font></div>
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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">10.1&#160;&#160;&#160;&#160; </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Binding</font> <font style="DISPLAY: inline; FONT-WEIGHT: bold">Agreement</font>.&#160;&#160;The terms and conditions of this Agreement will inure to the benefit of and be binding upon the respective successors and assigns of the parties.&#160;&#160;Nothing in this Agreement, expressed or implied, is intended to confer upon any third party any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">10.2&#160;&#160;&#160;&#160; </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Governing Law.</font>&#160;&#160;IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES THEREOF REGARDING CONFLICTS OF LAWS, AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. THE COMPANY AND EACH PURCHASER HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN LOS ANGELES COUNTY IN THE STATE OF CALIFORNIA SHALL HAVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN OR AMONG THE PURCHASERS, ON THE ONE HAND, AND COMPANY, ON THE OTHER HAND, PERTAINING TO THIS AGREEMENT OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS AGREEMENT.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">10.3&#160;&#160;&#160; </font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Counterparts.</font>&#160;&#160;This Agreement may be executed in two or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">10.4&#160;&#160;&#160; </font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Titles and Subtitles.</font>&#160;&#160;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.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">10.5&#160;&#160;&#160; </font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Further Actions.</font> The Company will execute and deliver such other agreements, conveyances, and other documents, and take such other action, as may be reasonably requested by the Purchasers in order to give effect to the transactions contemplated by this Agreement and the other Loan Documents.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">10.6&#160;&#160;&#160; </font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Notices</font>.&#160;&#160;All notices required or permitted hereunder will be in writing and will be deemed effectively given: (a)&#160;upon personal delivery to the party to be notified, (b)&#160;when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient, if not, then on the next business day, (c)&#160;five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d)&#160;one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.&#160;&#160;All communications will be sent to the Company at 548 Market Street, Suite 18224 San Francisco, CA 94104 and to Purchaser at the address(es) set forth on each Purchaser&#8217;s signature page or at such other address(es) as the Company or Purchaser may designate by ten (10) days advance written notice to the other parties to this Agreement.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">10.7&#160;&#160;&#160; </font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Modification; Waiver</font>.&#160;&#160;No modification or waiver of any provision of this Agreement or consent to departure therefrom will be effective unless in writing and approved by (i) the Company and (ii) the Purchasers holding Notes representing at least fifty one percent (51%) of the outstanding aggregate Loan Amounts (a &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Majority in Interest</font>&#8221;).&#160;&#160;Any provision of the Notes may be amended or waived by the written consent of the Company and a Majority in Interest.&#160;&#160;Notwithstanding the foregoing, the written consent of Purchaser shall be required to reduce the principal amount of a Note held by Purchaser, or reduce the rate of interest of the Note held by Purchaser.&#160;&#160;&#8220;Affiliate&#8221; shall mean, with respect to a specified Person, an individual, firm, corporation, partnership, association, limited liability company, trust or any other entity (collectively, a &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: bold">Person</font>&#8221;) who, directly or indirectly, controls, is controlled by or is under common control with such Person, including, without limitation, any general partner, managing member, officer or director of such Person or any venture capital or investment fund now or hereafter existing that is controlled by one or more general partners or managing members of, or shares the same management company with, such Person.</font></div>

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<DOCUMENT>
<TYPE>EX-10.6
<SEQUENCE>8
<FILENAME>btzo_ex106.htm
<DESCRIPTION>FORM OF WARRANT
<TEXT>
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<div style="TEXT-ALIGN: right; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold"><font style="FONT-WEIGHT: normal"><font style="FONT-WEIGHT: bold"><font style="FONT-WEIGHT: bold">EXHIBIT</font> 10.6</font></font></font></font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE &#8220;SECURITIES ACT&#8221;), OR ANY OTHER APPLICABLE STATE AND FOREIGN SECURITIES LAWS AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH OTHER SECURITIES LAWS.&#160;&#160;NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED, OR OTHERWISE DISPOSED OF, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.</font></div>

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<td width="50%"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Warrant No.&#160;&#160;[____]&#160;</font></td>
<td width="50%" style="TEXT-ALIGN: right"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">September __, 2012</font></td>
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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">WARRANT TO PURCHASE SHARES OF COMMON STOCK</font></div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">OF</font></div>

<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">BITZIO, INC.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">THIS CERTIFIES that, for value received, [_______________________] or its assigns is entitled to purchase from <font style="FONT-VARIANT: small-caps; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-WEIGHT: bold">Bitzio, Inc.</font>, a Nevada corporation (the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline">Corporation</font>&#8221;), subject to the terms and conditions hereof, [________] shares (the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline">Warrant Shares</font>&#8221;) of common stock of the Company, $0.001 par value (the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline">Common Stock</font>&#8221;).&#160;&#160;This warrant, together with all warrants hereafter issued in exchange or substitution for this warrant is referred to as the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline">Warrant</font>&#8221; and the holder of this Warrant is referred to as the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline">Holder</font>.&#8221;&#160;&#160;The number of Warrant Shares is subject to adjustment as hereinafter provided.&#160;&#160;Notwithstanding anything to the contrary contained herein, this Warrant shall expire at 5:00 pm Eastern Time on [*], 2014, (the &#8220;<font style="FONT-STYLE: italic; DISPLAY: inline">Warrant</font> <font style="FONT-STYLE: italic; DISPLAY: inline">Termination Date</font>&#8221;).</font></div>

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</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">This Warrant is being issued in connection with the purchase by the initial Holder of this Warrant of a convertible promissory note of the Company dated as of the date hereof in the original principal amount of $________ (the "<font style="FONT-STYLE: italic; DISPLAY: inline">Note</font>") pursuant to the Note Purchase Agreement dated as of September 6, 2012 (the "<font style="FONT-STYLE: italic; DISPLAY: inline">Note Purchase Agreement</font>") by and among the Company, the initial Holder and the other persons named therein.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; TEXT-DECORATION: underline">Exercise of Warrant</font>.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;&#160; </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The Holder may, at any time prior to the Warrant Termination Date exercise this Warrant in whole or in part.&#160;&#160;The exercise price shall be at a price per share equal to $0.30 (&#8220;<font style="FONT-STYLE: italic; DISPLAY: inline">Exercise Price</font>&#8221;).<font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font>The Holder may exercise this Warrant by (1) surrendering this Warrant (properly endorsed) at the principal office of the Corporation, or at such other agency or office of the Corporation in the United States of America as the Corporation may designate, (2) providing written notice stating the Holder elects to exercise the Warrant and specifying the number of Warrants being exercised and the name or names in which the Holder wishes the Certificate for shares of Common Stock to be issued, and (3) paying to the Corporation the Exercise Price in lawful money of the United States by check or wire transfer for each share of Common Stock being purchased.&#160;&#160;Upon any partial exercise of this Warrant, there shall be executed and issued to the Holder a new Warrant in respect of the shares of Common Stock as to which this Warrant shall not have been exercised.&#160;&#160;In the event of the exercise of the rights represented by this Warrant, a certificate or certificates for the Warrant Shares so purchased, as applicable, registered in the name of the Holder, shall be delivered to the Holder hereof as soon as practicable after the rights represented by this Warrant shall have been so exercised.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;&#160; </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">If at any time after the date of issuance of this Warrant, there is no effective registration statement registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder, then in lieu of exercising this Warrant pursuant to Section 1(a), if the fair market value of one share of Common Stock is greater than the Exercise Price (at the date of calculation as set forth below), the Holder may elect to receive a number of Warrant Shares equal to the value of this Warrant (or of any portion of this Warrant being canceled) by surrender of this Warrant at the principal office of the Company (or such other office or agency as the Company may designate) together with a properly completed and executed Notice of Exercise reflecting such election, in which event the Company shall issue to the Holder that number of Shares computed using the following formula:</font></div>

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<td rowspan="2" valign="middle" width="4%" style="PADDING-BOTTOM: 2px">
<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">X&#160;&#160;&#160;&#160; </font>=</font></div>
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<td width="12%" style="BORDER-BOTTOM: black 2px solid">
<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Y (A &#8211; B)</font></font></div>
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<td width="41%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></td>
<td width="2%">&#160;</td>
<td width="12%">
<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">A</font></font></div>
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<td width="41%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></td>
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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; MARGIN-LEFT: 36pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Where:</font></div>
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<table cellpadding="0" cellspacing="0" width="90%" style="TEXT-ALIGN: justify; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
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<td valign="top" width="4%" style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">X</font></div>
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<td valign="top" width="4%" style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">=</font></div>
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<td valign="top" width="92%" style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">The number of shares of Common Stock to be issued to the Holder</font></div>
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<td valign="top" width="4%" style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Y</font></div>
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<td valign="top" width="4%" style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">=</font></div>
</td>
<td valign="top" width="92%" style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">The number of shares of Common Stock purchasable under this Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being canceled (at the date of such calculation)</font></div>
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<td valign="top" width="4%" style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">A</font></div>
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<td valign="top" width="4%" style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">=</font></div>
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<td valign="top" width="92%" style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">The fair market value of one share of Common Stock (at the date of such calculation)</font></div>
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<td valign="top" width="4%" style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">B</font></div>
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<td valign="top" width="4%" style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">=</font></div>
</td>
<td valign="top" width="92%" style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">The Exercise Price (as adjusted to the date of such calculation)</font></div>
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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><br>
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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">For purposes of the calculation above, the fair market value of one Share shall be determined by the Board of Directors of the Company, acting in good faith; <font style="FONT-STYLE: italic; DISPLAY: inline">provided, however,</font> that where a public market exists for the Company&#8217;s Common Stock at the time of such exercise, the fair market value per share of Common Stock shall be the average market closing price for the Company&#8217;s Common Stock as determined for the thirty-day period ending two business days&#160;&#160;prior to the date of determination of fair market value.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">No Stockholder Rights</font>.&#160;&#160;Prior to the exercise of this Warrant, Holder shall not have any voting rights or other rights as a stockholder of the Corporation with respect to the Warrant Shares.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Transferability of Warrant</font>.&#160;&#160;Prior to the Warrant Termination Date and subject to compliance with applicable laws, this Warrant and all rights hereunder are transferable, in whole or in part, at the office or agency of the Corporation by the Holder in person or by duly authorized attorney, upon surrender of this Warrant together with the Assignment Form annexed hereto properly endorsed for transfer. Any registration rights to which this Warrant may then be subject shall be transferred together with the Warrant to the subsequent purchaser.&#160;&#160;PLEASE NOTE, HOWEVER, the Warrants and any shares of our Common Stock will be subject to certain restrictions on transferability and may not be resold or otherwise transferred except pursuant to registrations under or exemptions from the registration requirements of the Securities Act and applicable state and foreign securities laws.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Certain Adjustments</font>.&#160;&#160;With respect to any rights that Holder has to exercise this Warrant and convert into shares of Common Stock, Holder shall be entitled to the following adjustments:</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Merger, Consolidation or Reorganization</font>.&#160;&#160;If at any time there shall be a merger, consolidation or reorganization of the Corporation with or into another corporation when the Corporation is not the surviving corporation, then, as part of such merger, consolidation or reorganization, lawful provision shall be made so that the holder hereof shall thereafter be entitled to receive upon exercise of this Warrant, during the period specified herein and upon payment of the aggregate Exercise Price then in effect, the number of shares of stock or other securities or property (including cash) of the successor corporation resulting from such merger, consolidation or reorganization, to which the holder hereof as the holder of the stock deliverable upon exercise of this Warrant would have been entitled in such merger, consolidation or reorganization if this Warrant had been exercised immediately before such merger, consolidation or reorganization.&#160;&#160;In any such case, appropriate adjustment shall be made in the application of the provisions of this Warrant with respect to the rights and interests of the holder hereof as the holder of this Warrant after the merger, consolidation or reorganization.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline">(d)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Adjustment Upon Issuance of Shares of Common Stock</font>. <font style="DISPLAY: inline; FONT-SIZE: 10pt">Deleted.</font></font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Notice of Adjustments</font>. Upon any adjustment in accordance with this Section 5, the Company shall give notice thereof to the Holder, which notice shall state the event giving rise to the adjustment, the Exercise Price as adjusted and the number of securities or other property purchasable upon the exercise of the rights under this Warrant, setting forth in reasonable detail the method of calculation of each. The Company shall, upon the written request of any Holder, furnish or cause to be furnished to such Holder a certificate setting forth (i) such adjustments, (ii) the Exercise Price at the time in effect and (iii) the number of securities and the amount, if any, of other property that at the time would be received upon exercise of this Warrant.</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Legend and Stop Transfer Orders</font>.&#160;&#160;Unless the Warrant Shares have been registered under the Securities Act, and then in that case subject to the Holders&#8217; compliance with the prospectus delivery requirements of Section 5 of the Securities Act, upon exercise of any part of the Warrant, the Corporation shall instruct its transfer agent to enter stop transfer orders with respect to such Warrant Shares, and all certificates or instruments representing the Warrant Shares shall bear on the face thereof substantially the following legend:</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE &#8220;SECURITIES ACT&#8221;), OR ANY OTHER APPLICABLE STATE OR FOREIGN SECURITIES LAWS AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH OTHER SECURITIES LAWS.&#160;&#160;NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED, OR OTHERWISE DISPOSED OF, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED.</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; TEXT-DECORATION: underline">Miscellaneous</font>.&#160;&#160;This Warrant shall be governed by and construed in accordance with the laws of the State of California.&#160;&#160;All the covenants and provisions of this Warrant by or for the benefit of the Corporation shall bind and inure to the benefit of its successors and assigns hereunder.&#160;&#160;Nothing in this Warrant shall be construed to give to any person or corporation other than the Corporation and the holder of this Warrant any legal or equitable right, remedy or claim under this Warrant.&#160;&#160;This Warrant shall be for the sole and exclusive benefit of the Corporation and the holder of this Warrant.&#160;&#160;The section headings herein are for convenience only and are not part of this Warrant and shall not affect the interpretation hereof.&#160;&#160;Upon receipt of customary and reasonable indemnity and evidence satisfactory to the Corporation of the loss, theft, destruction or mutilation of this Warrant, and of indemnity reasonably satisfactory to the Corporation, if lost, stolen or destroyed, and upon surrender and cancellation of this Warrant, if mutilated, the Corporation shall execute and deliver to the Holder a new Warrant of like date, tenor and denomination. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant, but in lieu of such fractional shares the Company shall make a cash payment for such fractional shares on the basis of the Exercise Price then in effect. No provision of this Warrant, in the absence of affirmative action by the Holder to purchase the Warrant Shares, and no mere enumeration in this Warrant of the rights or privileges of the Holder, shall give rise to any liability of such Holder for the Exercise Price, whether such liability is asserted by the Company or by creditors of the Company.</font></div>

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<td valign="top" width="4%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Title:</font></td>
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<td width="50%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">To:&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;BITZIO, INC.</font></td>
<td width="50%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Dated:_____________________</font></td>
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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The undersigned, pursuant to the provisions set forth in the attached Warrant No. ______, hereby irrevocably elects to purchase <font style="FONT-STYLE: italic; DISPLAY: inline">(check applicable box)</font>:</font></div>

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<div align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The maximum number of shares of Common Stock covered by such Warrant.</font></div>
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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The undersigned herewith makes payment of the full purchase price for such shares at the price per share provided for in such Warrant.&#160;&#160;Such payment takes the form of <font style="FONT-STYLE: italic; DISPLAY: inline">(check applicable box or boxes)</font>:</font></div>

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<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Net exercise pursuant to Section 1(b) of the Warrant</font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The undersigned hereby requests that certificates for the Warrant Shares purchased hereby be issued in the name of:</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">_____________________________________________</div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">_____________________________________________</div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">_____________________________________________</div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">_____________________________________________&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<br>
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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">and if such number of shares of Common Stock shall not be all the shares evidenced by this Warrant Certificate, that a new Warrant for the balance of such shares be registered in the name of, and delivered to, Holder.</font></div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">ASSIGNMENT FORM</font></div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(To assign the foregoing warrant, execute </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">this form.&#160;&#160;Do not use this form to exercise the warrant.)</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">______________________________________________________________________ whose address is</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">NOTE:&#160;&#160;The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank or trust corporation.&#160;&#160;Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.</font></div>

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<TYPE>EX-10.7
<SEQUENCE>9
<FILENAME>btzo_ex107.htm
<DESCRIPTION>SECURITY AGREEMENT
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">SECURITY AGREEMENT</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">This Security Agreement (as amended, modified or otherwise supplemented from time to time, this &#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Security Agreement</font>&#8221;), dated as of September 6, 2012, is executed by <font style="DISPLAY: inline; FONT-WEIGHT: bold">Bitzio, Inc.</font>, a Nevada corporation (the &#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Company</font>&#8221;), in favor of <font style="DISPLAY: inline; FONT-WEIGHT: bold">Collateral Agent</font> (as herein defined) on behalf of the purchasers executing this Security Agreement (&#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Purchasers</font>&#8221;).</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">RECITALS</font></font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Company and certain Purchasers have entered into a Note Purchase Agreement, dated as of the date hereof (as amended, modified or otherwise supplemented from time to time, the &#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Purchase Agreement</font>&#8221;), pursuant to which Company has issued, or may issue, convertible<font style="FONT-STYLE: italic; DISPLAY: inline">&#160;</font>promissory notes (each a &#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Note</font>&#8221; and collectively, the &#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Notes</font>&#8221;).</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In order to induce each Purchaser to extend the credit evidenced by the Notes, Company desires to enter into this Security Agreement and to grant Collateral Agent, for the benefit of itself and the Purchasers, the security interest in the Collateral described below and the Collateral Agent appointed herein will endeavor to serve all Purchasers equally in right of payment and exercising rights with respect to any security interests in the Collateral.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">AGREEMENT</font></font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">NOW, THEREFORE, in consideration of the above recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Company hereby agrees with Collateral Agent and the Purchasers as follows:</font></div>

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<div style="TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Definitions and Interpretation</font>.&#160;&#160;When used in this Security Agreement, the following terms have the following respective meanings:</font></div>

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<div style="TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Collateral</font>&#8221; has the meaning given to that term in <font style="DISPLAY: inline; TEXT-DECORATION: underline">Section 2</font> hereof.</font></div>

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<div style="TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Obligations</font>&#8221; means all loans, advances, debts, liabilities and obligations, howsoever arising, owed by Company to Collateral Agent and the Purchasers of every kind and description (whether or not evidenced by any note or instrument and whether or not for the payment of money), now existing or hereafter arising under or pursuant to the terms of the Notes and the other Loan Documents, including, all interest, fees, charges, expenses, attorneys&#8217; fees and costs and accountants&#8217; fees and costs chargeable to and payable by Company hereunder and thereunder, in each case, whether direct or indirect, absolute or contingent, due or to become due, and whether or not arising after the commencement of a proceeding under Title 11 of the United States Code (11 U.S.C. Section 101 et seq.), as amended from time to time (including post-petition interest) and whether or not allowed or allowable as a claim in any such proceeding.</font></div>

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<div style="TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Person</font>&#8221; means and includes an individual, a partnership, a corporation (including a business trust), a joint stock company, a limited liability company, an unincorporated association, a joint venture or other entity or a governmental authority.</font></div>

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<div style="TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">UCC</font>&#8221; means the Uniform Commercial Code as in effect in the Commonwealth of California from time to time.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Grant of Security Interest; Acknowledgment</font>.&#160;&#160;As security for the Obligations, Company hereby pledges to Collateral Agent and grants to Collateral Agent a security interest of first priority in all right, title and interests of Company and its subsidiaries in and to the property described in <font style="DISPLAY: inline; TEXT-DECORATION: underline">Attachment 1</font> hereto, whether now existing or hereafter from time to time acquired (collectively, the &#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Collateral</font>&#8221;).&#160;&#160;Notwithstanding the foregoing, the security interest granted herein shall not extend to and the term &#8220;Collateral&#8221; shall not include (i)&#160;Liens (as defined in the Note Purchase Agreement) for current taxes not yet due and payable, (ii)&#160;Liens imposed by law and incurred in the ordinary course of business for obligations not past due, (iii)&#160;Liens in respect of pledges or deposits under workers&#8217; compensation laws or similar legislation, (iv)&#160;Liens, encumbrances and defects in title which do not in any case materially detract from the value of the property subject thereto or have a material adverse effect, and which have not arisen otherwise than in the ordinary course of business, (v) any shares or other equity ownership of subsidiaries of the Company, (vi) any equipment or other property financed by a third party, or (vii) any other secured interests existing as of the date of this Security Agreement (each a &#8220;Permitted Lien&#8221;).</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Each Purchaser and the Company understands, acknowledges and agrees that the payment of all or any portion of the outstanding principal amount under the Notes and all interest thereon shall be <font style="FONT-STYLE: italic; DISPLAY: inline">pari passu</font> in right of payment and in all other respects to the other Notes.&#160;&#160;Unless approved by a majority in interest of disinterested Purchasers (i.e., those not receiving a cash payment), the Company (a) shall not pay the Optional Prepayment Amount to any Purchaser unless concurrently paid to all Purchasers holding outstanding Notes at the time of such payment, (b) shall not pay any principal or interest on a Note to any Purchaser unless paid to all such Purchasers holding outstanding Notes and then only according to the Pro Rata Share payable for such Notes, and (c) in the event a Purchaser receives payments in excess of its Pro Rata Share (as defined below) of the Company&#8217;s payments to the Purchasers of all of the Notes, then Purchaser shall hold in trust all such excess payments for the benefit of the holders of the other Notes and shall pay such amounts held in trust to such other holders upon demand by such holders.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">General Representations and Warranties</font>.&#160;&#160;Company represents and warrants to Collateral Agent and the Purchasers that (a)&#160;Company is the owner of the Collateral (or, in the case of after-acquired Collateral, at the time Company acquires rights in the Collateral, will be the owner thereof) and that no other Person has (or, in the case of after-acquired Collateral, at the time Company acquires rights therein, will have) any right, title, claim or interest (by way of Lien or otherwise) in, against or to the Collateral, other than Permitted Liens; (b) upon the filing of UCC-1 financing statements in the appropriate filing offices, Collateral Agent has (or in the case of after-acquired Collateral, at the time Company acquires rights therein, will have) a first priority perfected security interest in the Collateral to the extent that a security interest in the Collateral can be perfected by such filing, except for Permitted Liens; (c)&#160;all Inventory has been (or, in the case of hereafter produced Inventory, will be) produced in compliance with applicable laws, including the Fair Labor Standards Act; (d)&#160;all accounts receivable and payment intangibles are genuine and enforceable against the party obligated to pay the same; and (e) the originals of all documents evidencing all accounts receivable and payment intangibles of Company and the only original books of account and records of Company relating thereto are, and will continue to be, kept at the address of the Company set forth in <font style="DISPLAY: inline; TEXT-DECORATION: underline">Section 7</font> of this Security Agreement.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Authorized Action by Collateral Agent</font>.&#160;&#160;Company hereby irrevocably appoints Collateral Agent as its attorney-in-fact (which appointment is coupled with an interest) and agrees that Collateral Agent may perform (but Collateral Agent shall not be obligated to and shall incur no liability to Company or any third party for failure so to do) any act which Company is obligated by this Security Agreement to perform, and to exercise such rights and powers as Company might exercise with respect to the Collateral, including the right to (a)&#160;collect by legal proceedings or otherwise and endorse, receive and receipt for all dividends, interest, payments, proceeds and other sums and property now or hereafter payable on or on account of the Collateral; (b)&#160;enter into any extension, reorganization, deposit, merger, consolidation or other agreement pertaining to, or deposit, surrender, accept, hold or apply other property in exchange for the Collateral; (c)&#160;make any compromise or settlement, and take any action it deems advisable, with respect to the Collateral; (d)&#160;insure, process and preserve the Collateral; (e)&#160;pay any indebtedness of Company relating to the Collateral; and (f)&#160;file UCC financing statements and execute other documents, instruments and agreements required hereunder; <font style="DISPLAY: inline; TEXT-DECORATION: underline">provided</font>, <font style="DISPLAY: inline; TEXT-DECORATION: underline">however</font>, that Collateral Agent shall not exercise any such powers granted pursuant to subsections (a) through (e) prior to (x) the occurrence of an Event of Default and shall only exercise such powers during the continuance of an Event of Default, and (y) separate written instruction to take such actions from a Majority in Interest of Purchasers.&#160;&#160;Company agrees to reimburse Collateral Agent upon demand for any reasonable costs and expenses, including attorneys&#8217; fees, Collateral Agent may incur while acting as Company&#8217;s attorney-in-fact hereunder, all of which costs and expenses are included in the Obligations.&#160;&#160;Company further agrees to pay Collateral Agent a nonrefundable fee of $2,500 per year, paid in advance each year, for serving as Collateral Agent, and a further fee of $100 per hour, if applicable, for reasonable and necessary time spent exercising the powers set forth in subsections (a) through (e) above.&#160;&#160;It is further agreed and understood between the parties hereto that such care as Collateral Agent gives to the safekeeping of its own property of like kind shall constitute reasonable care of the Collateral when in Collateral Agent&#8217;s possession; <font style="DISPLAY: inline; TEXT-DECORATION: underline">provided</font>, <font style="DISPLAY: inline; TEXT-DECORATION: underline">however</font>, that Collateral Agent shall not be required to make any presentment, demand or protest, or give any notice and need not take any action to preserve any rights against any prior party or any other person in connection with the Obligations or with respect to the Collateral.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Default and Remedies</font>.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Default</font>.&#160;&#160;Company shall be deemed in default under this Security Agreement upon the occurrence and during the continuance of an Event of Default (as defined in the Notes).</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Remedies</font>.&#160;&#160;Upon the occurrence and during the continuance of any such Event of Default, Collateral Agent shall have the rights of a secured creditor under the UCC, all rights granted by this Security Agreement and by law, including the right to:&#160;&#160;(a)&#160;require Company to assemble the Collateral and make it available to Collateral Agent and the Purchasers at a place to be designated by Collateral Agent and the Purchasers; and (b)&#160;prior to the disposition of the Collateral, store, process, repair or recondition it or otherwise prepare it for disposition in any manner and to the extent Collateral Agent and the Purchasers deem appropriate.&#160;&#160;Company hereby agrees that ten (10) days&#8217; notice of any intended sale or disposition of any Collateral is reasonable.&#160;&#160;In furtherance of Collateral Agent&#8217;s rights hereunder, Company hereby grants to Collateral Agent an irrevocable, non-exclusive license, exercisable without royalty or other payment by Collateral Agent, and only in connection with the exercise of remedies hereunder, to use, license or sublicense any patent, trademark, trade name, copyright or other intellectual property in which Company now or hereafter has any right, title or interest together with the right of access to all media in which any of the foregoing may be recorded or stored. During the continuance of any Event of Default, the Company shall not, without the written consent of the Collateral Agent, sell, license, grant a right of use or otherwise dispose of any patent, trademark, trade name, copyright or other intellectual property in which Company has any right, title or interest, other than pursuant to standard end-user license agreements, support/maintenance agreements and agreements entered in the ordinary course of the Company&#8217;s business.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(c)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Application of Collateral Proceeds</font>.&#160;&#160;The proceeds and/or avails of the Collateral, or any part thereof, and the proceeds and the avails of any remedy hereunder (as well as any other amounts of any kind held by Collateral Agent at the time of, or received by Collateral Agent after, the occurrence of an Event of Default) shall be paid to and applied as follows:</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 126pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(i)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">First</font>, to the payment of reasonable costs and expenses, including all amounts expended to preserve the value of the Collateral, of foreclosure or suit, if any, and of such sale and the exercise of any other rights or remedies, and of all proper fees, expenses, liability and advances, including reasonable legal expenses and attorneys&#8217; fees, incurred or made hereunder by Collateral Agent;</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 126pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(ii)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Second</font>, to the payment to each Purchaser of the amount then owing or unpaid on such Purchaser&#8217;s Note, and in case such proceeds shall be insufficient to pay in full the whole amount so due, owing or unpaid upon such Note, then its Pro Rata Share of the amount remaining to be distributed (to be applied first to accrued interest and second to outstanding principal);</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 126pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(iii)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Third</font>, to the payment of other amounts then payable to each Purchaser under any of the Loan Documents, and in case such proceeds shall be insufficient to pay in full the whole amount so due, owing or unpaid under such Loan Documents, then its Pro Rata Share of the amount remaining to be distributed; and</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 126pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(iv)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Fourth</font>, to the payment of the surplus, if any, to Company, its successors and assigns, or to whomsoever may be lawfully entitled to receive the same.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">For purposes of this Security Agreement, the term &#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Pro Rata Share</font>&#8221; shall mean, when calculating a Purchaser&#8217;s portion of any distribution or amount, that distribution or amount (expressed as a percentage) equal to a fraction (i) the numerator of which is the aggregate amount of principal and interest then outstanding under such Purchaser&#8217;s Note and (ii) the denominator of which is the aggregate amount of principal and interest then outstanding under all Notes held by all Purchasers.&#160;&#160;In the event that a Purchaser receives payments or distributions in excess of its Pro Rata Share, then such Purchaser shall hold in trust all such excess payments or distributions for the benefit of the other Purchasers and shall pay such amounts held in trust to such other Purchasers upon demand by such Purchasers.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">6.</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Collateral Agent</font>.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Appointment</font>.&#160;&#160;The Purchasers hereby appoint Chris Achar as collateral agent for the Purchasers under this Security Agreement (in such capacity, the &#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Collateral Agent</font>&#8221;) to serve from the date hereof until the termination of the Security Agreement or until the Collateral Agent resigns from such appointment or is removed by a Majority in Interest.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Powers and Duties of Collateral Agent, Indemnity by Purchasers</font>.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 126pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(ii)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Neither the Collateral Agent nor any of its member, managers, directors, officers, employees, attorneys, or representatives (collectively, the &#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Representatives</font>&#8221;) shall be liable or responsible to any Purchaser or to Company for any action taken or omitted to be taken by Collateral Agent or any other such person hereunder or under any related agreement, instrument or document, except in the case of gross negligence or willful misconduct on the part of the Collateral Agent, nor shall the Collateral Agent or any of its Representatives be liable or responsible for (i)&#160;the validity, effectiveness, sufficiency, enforceability or enforcement of the Notes, this Security Agreement or any instrument or document delivered hereunder or relating hereto; (ii)&#160;the title of Company to any of the Collateral or the freedom of any of the Collateral from any prior or other liens or security interests; (iii)&#160;the determination, verification or enforcement of Company&#8217;s compliance with any of the terms and conditions of this Security Agreement; (iv)&#160;the failure by Company to deliver any instrument&#160;&#160;or document required to be delivered pursuant to the terms hereof; or (v)&#160;the receipt, disbursement, waiver, extension or other handling of payments or proceeds made or received with respect to the collateral, the servicing of the Collateral or the enforcement or the collection of any amounts owing with respect to the Collateral.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 126pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(iii)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In the case of this Security Agreement and the transactions contemplated hereby and any related document relating to any of the Collateral, each of the Purchasers agrees to pay to the Collateral Agent, on demand, such Purchaser&#8217;s Pro Rata Share of all fees and all expenses incurred in connection with the operation and enforcement of this Security Agreement, the Notes or any related agreement to the extent that such fees or expenses have not been paid by Company.&#160;&#160;In the case of this Security Agreement and each instrument and document relating to any of the Collateral, each of the Purchasers and the Company hereby agrees to hold the Collateral Agent harmless, and to indemnify the Collateral Agent from and against any and all loss, damage, expense or liability which may be incurred by the Collateral Agent under this Security Agreement and the transactions contemplated hereby and any related agreement or other instrument or document, as the case may be, unless such liability shall be caused by the willful misconduct or gross negligence of the Collateral Agent.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 126pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(iv)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Collateral Agent may resign at any time from its appointment for any reason upon written notice thereof to the Company.&#160;&#160;Collateral Agent may be removed by a Majority in Interest upon written notice to Collateral Agent and the Company.&#160;&#160;Collateral Agent shall have no liability to any party arising from such resignation or removal or with respect to acts, omissions or events occurring after the date of such resignation or removal.&#160;&#160;Upon such resignation or removal, a new Collateral Agent may be appointed by a Majority in Interest or the Initial Note Purchaser.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">7.</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Miscellaneous</font>.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Notices</font>.&#160;&#160;Except as otherwise provided herein, all notices, requests, demands, consents, instructions or other communications to or upon Company or Collateral Agent under this Security Agreement shall be in writing and faxed, mailed or delivered to each party to the facsimile number or its address set forth below (or to such other facsimile number or address as the recipient of any notice shall have notified the other in writing).&#160;&#160;All such notices and communications shall be effective (a) when sent by Federal Express or other overnight service of recognized standing, on the business day following the deposit with such service; (b) when mailed, by registered or certified mail, first class postage prepaid and addressed as aforesaid through the United States Postal Service, upon receipt; (c) when delivered by hand, upon delivery; and (d) when faxed, upon confirmation of receipt.</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Collateral Agent</font>:</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Chris Achar</font></div>

<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1100 Glendon Ave. Suite 850</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Fax Number: (310) 208-1154</font><br>
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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Company</font>:</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Bitzio, Inc.</font></div>

<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">548 Market Street, Suite 18224</font></div>

<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">San Francisco, CA&#160;&#160;94104</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Termination of Security Interest</font>. Upon the payment or conversion in full of all Obligations under the Notes issued pursuant to the Purchase Agreement, the security interest granted herein shall terminate and all rights to the Collateral granted pursuant to this Security Agreement shall revert to Company, provided that any rights obtained other than pursuant to this Security Agreement shall not be terminated by this Section 7(b).&#160;&#160;Upon such termination Collateral Agent hereby authorizes Company to file any UCC termination statements necessary to effect such termination and Collateral Agent will execute and deliver to Company any additional documents or instruments as Company shall reasonably request to evidence such termination.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(c)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Nonwaiver</font>.&#160;&#160;No failure or delay on Collateral Agent&#8217;s part in exercising any right hereunder shall operate as a waiver thereof or of any other right nor shall any single or partial exercise of any such right preclude any other further exercise thereof or of any other right.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(d)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Amendments and Waivers</font>. This Security Agreement may not be amended or modified, nor may any of its terms be waived, except by written instruments signed by Company and a Majority in Interest.&#160;&#160;Each waiver or consent under any provision hereof shall be effective only in the specific instances for the purpose for which given.&#160;&#160;Each subsequent purchaser of Notes under the Purchase Agreement may become a party to this Security Agreement by executing a counterpart signature page hereto.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(e)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Assignments</font>.&#160;&#160;This Security Agreement shall be binding upon and inure to the benefit of Collateral Agent and Company and their respective successors and assigns; <font style="DISPLAY: inline; TEXT-DECORATION: underline">provided</font>, <font style="DISPLAY: inline; TEXT-DECORATION: underline">however</font>, that Company may not sell, assign or delegate rights and obligations hereunder without the prior written consent of Collateral Agent.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(f)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Cumulative Rights, etc</font>.&#160;&#160;The rights, powers and remedies of Collateral Agent under this Security Agreement shall be in addition to all rights, powers and remedies given to Collateral Agent by virtue of any applicable law, rule or regulation of any governmental authority, any Loan Document or any other agreement, all of which rights, powers, and remedies shall be cumulative and may be exercised successively or concurrently without impairing Collateral Agent&#8217;s rights hereunder.&#160;&#160;Company waives any right to require Collateral Agent to proceed against any person or entity or to exhaust any Collateral or to pursue any remedy in Collateral Agent&#8217;s power.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(g)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Payments Free of Taxes, Etc</font>.&#160;&#160;All payments made by Company under the Loan Documents shall be made by Company free and clear of and without deduction for any and all present and future taxes, levies, charges, deductions and withholdings.&#160;&#160;In addition, Company shall pay upon demand any stamp or other taxes, levies or charges of any jurisdiction with respect to the execution, delivery, registration, performance and enforcement of this Security Agreement.&#160;&#160;Upon request by Collateral Agent, Company shall furnish evidence satisfactory to Collateral Agent that all requisite authorizations and approvals by, and notices to and filings with, governmental authorities and regulatory bodies have been obtained and made and that all requisite taxes, levies and charges have been paid.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(h)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Partial Invalidity</font>.&#160;&#160;If at any time any provision of this Security Agreement is or becomes illegal, invalid or unenforceable in any respect under the law or any jurisdiction, neither the legality, validity or enforceability of the remaining provisions of this Security Agreement nor the legality, validity or enforceability of such provision under the law of any other jurisdiction shall in any way be affected or impaired thereby.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(i)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Expenses</font>.&#160;&#160;Company shall pay on demand all reasonable fees and expenses, including reasonable attorneys&#8217; fees and expenses, incurred by Collateral Agent in connection with custody, preservation or sale of, or other realization on, any of the Collateral or the enforcement or attempt to enforce any of the Obligations which is not performed as and when required by this Security Agreement.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(j)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Construction</font>.&#160;&#160;Each of this Security Agreement and the other Loan Documents is the result of negotiations among, and has been reviewed by, Company, Purchasers, Collateral Agent and their respective counsel.&#160;&#160;Accordingly, this Security Agreement and the other Loan Documents shall be deemed to be the product of all parties hereto, and no ambiguity shall be construed in favor of or against Company, Purchasers or Collateral Agent.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(k)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Entire Agreement</font>.&#160;&#160;This Security Agreement taken together with the other Loan Documents constitute and contain the entire agreement of Company, Purchasers and Collateral Agent and supersede any and all prior agreements, negotiations, correspondence, understandings and communications among the parties, whether written or oral, respecting the subject matter hereof.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(l)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Other Interpretive Provisions</font>.&#160;&#160;&#160;References in this Security Agreement and each of the other Loan Documents to any document, instrument or agreement (a)&#160;includes all exhibits, schedules and other attachments thereto, (b)&#160;includes all documents, instruments or agreements issued or executed in replacement thereof, and (c)&#160;means such document, instrument or agreement, or replacement or predecessor thereto, as amended, modified and supplemented from time to time and in effect at any given time.&#160;&#160;The words &#8220;hereof,&#8221; &#8220;herein&#8221; and &#8220;hereunder&#8221; and words of similar import when used in this Security Agreement or any other Loan Document refer to this Security Agreement or such other Loan Document, as the case may be, as a whole and not to any particular provision of this Security Agreement or such other Loan Document, as the case may be.&#160;&#160;The words &#8220;include&#8221; and &#8220;including&#8221; and words of similar import when used in this Security Agreement or any other Loan Document shall not be construed to be limiting or exclusive.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(m)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Governing Law</font>.&#160;&#160;IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES THEREOF REGARDING CONFLICTS OF LAWS, AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. THE COMPANY AND EACH PURCHASER HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN LOS ANGELES COUNTY IN THE STATE OF CALIFORNIA SHALL HAVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN OR AMONG THE PURCHASERS, ON THE ONE HAND, AND COMPANY, ON THE OTHER HAND, PERTAINING TO THIS AGREEMENT OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS AGREEMENT.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(n)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Counterparts</font>. This Security Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall be deemed to constitute one instrument.</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">IN WITNESS WHEREOF, the parties have caused this Security Agreement to be executed as of the day and year first above written.</font></div>

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<TYPE>EX-99.1
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<div style="TEXT-ALIGN: right; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">EXHIBIT 99.1</font></div>

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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Bitzio, Inc. Engages New CEO &amp; Divests the Info-Products Suite to Focus on Licensing &amp; Media Rights Strategy</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">SAN FRANCISCO, CALIFORNIA--(Marketwire - Sept. 12, 2012) - Bitzio, Inc. ("Bitzio" or "the Company") (<font style="DISPLAY: inline; TEXT-DECORATION: underline">BTZO</font>), a leading mobile media and app company, today announced several major developments which strengthen the company's balance sheet and executive team to further focus the Company on its targeted app development for sports and entertainment properties.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Peter Henricsson, new Bitzio President &amp; CEO - Peter Henricsson is taking on the role of president and CEO of Bitzio. Previously, Henricsson was Chairman and CEO of CellPoint Inc. from 1996 until 2002. With customers such as France Telecom, British Telcom, Tele2, KPN, etc. CellPoint was the world's leading company in the mobile technologies and services sector around location based services. The company achieved a market cap of $1 Billion dollars, and was uplisted to a NASDAQ NMS listing in 2000.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Divestiture of Info-Products Suite - With the sale of the info-products suite now complete, over $700,000 in liabilities are now removed from Bitzio's balance sheet. Henricsson continues, "The mobile applications market is growing rapidly, and experts predict 100 percent annual growth driving revenue from $10.2 billion in 2010 to $100 billion in 2015. As an early player in mobile industry, I've seen the industry change from simple phone calls to an entire new way of doing business within the app world. Bitzio embodies this new way of doing business, and this divestiture allows our team to focus 100% on acquiring media licensing rights and deploying the accompanying apps into the marketplace."</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">William Schonbrun, new Chairman of the Board - As Peter Henricsson enters as President &amp; CEO, William Schonbrun has resigned his position as President and CEO but he will remain as involved as before and become Chairman of the Board. On the heels of recent media licensing announcements with major players like the NFLPA, Schonbrun commented on Bitzio's business focus, "What does Bitzio do? In simple terms, we deliver apps for people we already know something about. We acquire media rights and licenses from our target audiences and we use those rights to build relevant games and apps geared to their existing fans. We see that strategy as our path to continue our growth in this industry and we are more committed than ever to making that happen. I am pleased to see Bitzio add Peter to the team and I look forward to working with him and remaining an integral part of the Bitzio story."</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">--&#160;&#160;&#160; Deployed first apps centered around sports &amp; entertainment figures with&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">the Carlos Valderrama Soccer Game and the Crooked Arrows movie app.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">--&#160;&#160;&#160; Amish Shah, former Chief Product Officer departs as officer and director&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">to focus on info-products.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">--&#160;&#160;&#160; Extinguished $700,000 in debt (inclusive of accrued interest) with the&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">sale of info-products division.</font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">--&#160;&#160;&#160; Mobile industry veteran Peter Henricsson enters as President &amp; CEO.</font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">--&#160;&#160;&#160; William Schonbrun becomes Chairman of the Board.</font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">--&#160;&#160;&#160; Recently closed a round of growth capital for $600,000.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">About Bitzio, Inc.</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Founded in 2011, Bitzio is a leading mobile media and app development company focused on connecting fans of large entertainment and sports properties with the players, celebrities and teams they love. Powering these apps is the Bitzio Engine, which captures valuable user data and drives increased user monetization. What makes Bitzio really different is its approach to capturing users. Most app companies build first and hope the audience will come. Bitzio licenses media rights of sports and entertainment properties with millions of existing fans. Bitzio uses these rights to create mobile apps and web experiences for these existing fan bases. The company aims to be responsible for the download of 1 Billion apps by 2014. For more information, visit&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">www.bitzio.com.</font>&#160;To learn more about Bitzio, connect on Twitter and Facebook.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Forward-Looking Statements</font></div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws, including statements relating to expectations the 2012 fiscal year; The terms and phrases "goal", "commitment", "guidance", "expects", "would", "will", "continuing", "drive", "believes", "indicate", "look forward", "grow", "outlook", "forecasts", and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by Bitzio in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that Bitzio believes are appropriate in the circumstances, including but not limited to general economic conditions, Bitzio's expectations regarding its business, strategy and prospects, and Bitzio's confidence in the cash flow generation of its business. Many factors could cause Bitzio's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: risks related to competition; Bitzio's reliance on key personnel; Bitzio's ability to maintain and enhance its brand; and difficulties in forecasting Bitzio's financial results, particularly over longer periods given the rapid technological changes, competition and short product life cycles that characterize the mobile application industry. These risk factors and others relating to Bitzio that may cause actual results to differ are set forth Bitzio's periodic filings with the U.S. Securities and Exchange Commission (copies of which filings may be obtained at&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">www.sedar.com</font>&#160;or<font style="DISPLAY: inline; TEXT-DECORATION: underline">www.sec.gov</font>). These factors should be considered carefully, and readers should not place undue reliance on Bitzio's forward-looking statements. Bitzio has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Bitzio, Inc.</font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">866.929.8546</font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">IR@bitzio.com</font></font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">www.bitzio.com</font></font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Amy Chilla</font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Innova Communications</font></div>

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