EXECUTION VERSION

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COMMERCIAL LOAN AGREEMENT

THIS COMMERCIAL LOAN AGREEMENT (this “Agreement”) is made and entered into as of
July 22, 2019 (the “Closing Date”), by and between ENCOMPASS MORE GROUP, INC., a
Nevada corporation (“Borrower”), and GROW CAPITAL, INC., a Nevada corporation
(“Lender”).

Recitals

WHEREAS, Lender desires to loan to Borrower the sum of $100,000 to Borrower in
exchange for a promissory note under the terms of this Agreement.

WHEREAS, Borrower desires to accept the loan in exchange for a promissory note
under the terms of this Agreement.

NOW, THEREFORE, for and in consideration of the foregoing recitals and the
mutual promises set forth in this Agreement, the parties hereto agree as
follows:

Section 1.  AMOUNT AND TERMS OF THE LOAN.

1.1The Loan.  At the Closing (as such term is hereinafter defined), Lender shall
lend to Borrower the sum of One Hundred Thousand and No/100 Dollars
($100,000.00), against the issuance and delivery by Borrower of a promissory
note for such amount, in the form attached hereto as Exhibit A (the “Note”). 

1.2Use of Proceeds.  Borrower shall use the proceeds of the Loan for working
capital and general corporate purposes. 

Section 2.  REPRESENTATIONS AND WARRANTIES OF THE COMPANY.  Borrower represents
and warrants to Lender as of the Closing as follows:

2.1Organization, Good Standing and Qualification.  Borrower (a) is a corporation
duly incorporated, validly existing and in good standing under the laws of the
state of Nevada and is duly qualified to do business in each jurisdiction in
which Borrower is required to be registered in order to conduct its business,
(b) has the requisite power and authority, and the legal right, to own, lease,
and operate its properties and assets and to conduct its business as it is now
being conducted, and (c) is in compliance with all Laws and Orders except to the
extent that the failure to comply therewith would not, reasonably be expected to
have a Material Adverse Effect. 

2.2Due Authorization.  All corporate action on the part of Borrower, its
officers, managers, and members necessary for the authorization, execution,
delivery, and performance of all obligations of Borrower under this Agreement
and the Note (together, the “Loan Documents”) has been taken as of Closing, and
the Loan Documents constitute valid and legally binding obligations of Borrower,
enforceable in accordance with their respective terms, except as may be limited
by (i) applicable bankruptcy, insolvency, reorganization, or other laws of
general application relating to or affecting the enforcement of creditors’
rights generally and (ii) the effect of rules of law governing the availability
of equitable remedies. 

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2.3Compliance with Other Instruments.  The authorization, execution and delivery
of this Agreement, and the issuance and delivery of the Note, will not
constitute or result in a default or violation of any law or regulation
applicable to Borrower or any term or provision of Borrower’s articles of
incorporation, or bylaws or any agreement or instrument by which it is bound or
to which its properties or assets are subject. 

2.4Governmental Consents.  No consent, approval, order, or authorization of or
registration, qualification, designation, declaration, or filing with, any
federal, state, or local governmental authority is required on the part of
Borrower in order to enable Borrower to execute, deliver, and perform its
obligations under the Loan Documents except for such qualifications or filings
under applicable securities laws as may be required in connection with the
transactions contemplated by this Agreement.   

2.5Litigation.  Borrower is not party to, and there is no claim, action, suit,
proceeding, arbitration, complaint, charge or investigation pending or, to
Borrower’s knowledge, currently threatened against Borrower or any manager,
officer, or employee of Borrower.  Neither Borrower nor, to Borrower’s
knowledge, any of its managers, officers, or employees is a party or is named as
subject to the provisions of any order, writ, injunction, judgment or decree of
any court or government agency or instrumentality (in the case of officers,
managers, or employees, such as would affect Borrower).   

2.6Compliance with Laws.  Borrower is not in violation or in default with
respect to (a) any material provision of any applicable statute, rule,
regulation, order, writ, decree, judgment or restriction of any domestic or
foreign government or any instrumentality or agency thereof or (b) any material
agreement, instrument or contract to which Borrower is a party or by which it is
bound (nor is there any waiver in effect which, if not in effect, would result
in such a violation or default).   

Section 3.  REPRESENTATIONS AND WARRANTIES OF LENDER.  Lender represents and
warrants to Borrower as of the Closing as follows:

3.1Organization, and Good Standing.  Lender is a corporation duly incorporated,
validly existing and in good standing under the laws of the state of Nevada. 

3.2Authorization.  Lender has full power and authority to execute and deliver
the Loan Documents and each of the Loan Documents constitutes Lender’s valid and
legally binding obligation, enforceable in accordance with its terms except (a)
as may be limited by applicable bankruptcy, insolvency, reorganization, or other
laws of general application relating to or affecting the enforcement of
creditors’ rights generally, and (b) as may be limited by the effect of rules of
law governing the availability of equitable remedies. 

Section 4.  Affirmative Covenants.  So long as any amount is unpaid under the
Note, Borrower will:

4.1keep proper books of account in manner satisfactory to Lender; 

4.2permit, at Borrower’s expense, inspections and audits by Lender or by
Lender’s agents of all books, records and papers in the custody or control of
Borrower or of others relating  

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to any security for the obligations hereunder or Borrower’s financial or
business condition, including the making of copies thereof and abstracts
therefrom and inspection and appraisal of any of Borrower’s assets;

4.3furnish Lender with such financial information or other information
pertaining to the operation of Borrower as Lender may from time to time request
to demonstrate the continued compliance with any financial covenant in this
Agreement.  

4.4promptly pay all taxes, assessments and other governmental charges due from
Borrower; 

4.5promptly inform Lender of the commencement of any material action, suit,
proceeding or investigation against Borrower, or the making of any counterclaim
against Borrower in any action, suit or proceeding and of all liens against any
of Borrower’s property, and of the occurrence of any default hereunder; 

4.6pay all indebtedness to Lender when due; 

4.7fully and punctually perform all of the terms and conditions of the Loan
Documents; and 

4.8maintain all licenses and permits necessary for the operation of Borrower’s
business. 

Section 5.  Negative Covenants.  So long as any amount is unpaid hereunder,
Borrower will not, without Lender’s prior written consent:

5.1create, incur, assume or suffer to exist any additional indebtedness except
from the Lender; 

5.2create, incur, assume or suffer to exist any security interest, mortgage,
pledge, lien or other encumbrance (collectively, “Liens”) upon any of Borrower’s
property or assets, whether now owned or hereafter acquired, except for (a)
Liens for taxes not yet due or which are being contested in good faith by
appropriate proceedings; and (b) non-consensual Liens arising by operation of
law, arising in the ordinary course of business, and for amounts which are not
overdue for a period of more than 15 days or that are being contested in good
faith by appropriate proceedings;  

5.3sell, convey, lease or transfer any of Borrower’s assets other than in the
ordinary course of business, or merge or consolidate with or into any other
company or corporation, but in no event shall Borrower sell, convey, lease or
transfer of Borrower’s assets with an aggregate value in excess of $10,000; 

5.4become a guarantor, surety or otherwise become liable for the debts or other
obligations of any person, firm or corporation, except as an endorser of
instruments for the payment of money deposited to Borrower’s bank account for
collection in the ordinary course of business; 

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5.5make any investments in or loans or advances to any other person, firm or
corporation (including, without limitation, loans or advances to Borrower’s
officers, partners or employees) except direct obligations of the United States
of America; 

5.6change the business plan of Borrower or the form in which Borrower conducts
its business or the location or fiscal year of such business or the nature of
the business as conducted by Borrower on the date of this Agreement or fail to
maintain Borrower’s business operation as a going concern; or 

5.7sell, transfer, assign, or dispose of any of the capital stock or any
membership, partnership, or beneficial interest of Borrower. 

Section 6.  CLOSING.  

6.1Closing.  The consummation of the transactions contemplated by this Agreement
(the “Closing”) shall take place on the Closing Date.  At the Closing, the
parties shall execute and deliver the Loan Documents and Lender shall disburse
the Loan proceeds in full to Borrower. 

Section 7.  GENERAL PROVISIONS.

7.1Survival of Representations and Warranties.  The representations, warranties,
and covenants of Borrower and Lender contained in or made pursuant to this
Agreement shall survive for one(1) year following the execution and delivery of
this Agreement and the Closing and shall in no way be affected by any
investigation of the subject matter thereof made by or on behalf of Lender or
Borrower, or their respective counsel, as the case may be. 

7.2Successors and Assigns.  Except as otherwise provided in this Agreement, the
provisions of this Agreement shall inure to the benefit of and be binding upon
the respective successors and permitted assigns of the parties to this Agreement
(including transferees of any Securities).   

7.3Third Parties.  Nothing in this Agreement, express or implied, is intended to
confer upon any person, other than the parties to this Agreement and their
respective successors and assigns, any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement. 

7.4Governing Law; Jurisdiction; Waiver of Jury Trial.  

(a)Governing Law.  This Note shall be governed by and construed under the laws
of the State of Nevada, without giving effect to its conflicts of law
principles. 

(b)Submission to Jurisdiction.  Borrower hereby irrevocably and unconditionally
(i) agrees that any legal action, suit, or proceeding arising out of or relating
to this Note may be brought in the courts of the State of Nevada or of the
United States of America for the District of Nevada and (ii) submits to the
exclusive jurisdiction of any such court in any such action, suit, or
proceeding. Final judgment against Borrower in any action, suit, or proceeding
shall be conclusive and may be enforced in any other jurisdiction by suit on the
judgment.  Nothing in  

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this Section 7.4(b) shall affect the right of Lender to (i) commence legal
proceedings or otherwise sue Borrower in any other court having jurisdiction
over Borrower or (ii) serve process upon Borrower in any manner authorized by
the laws of any such jurisdiction.

(c)WAIVER OF JURY TRIAL. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT
TO TRIAL BY JURY IN ANY PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

7.5Specific Performance.  The parties agree that, in the event of any breach or
threatened breach by any party of any covenant, obligation or other provision
set forth in this Agreement, for the benefit of any other party, (a) such other
party shall be entitled (in addition to any other remedy that may be available
to it) to seek an order granting (i) specific performance or mandamus to enforce
the observance and performance of such covenant, obligation or other provision,
(ii) an injunction (whether preliminary, temporary or permanent), and other
emergency or interim relief, to restrain such breach or threatened breach and to
preserve the status quo, and (b) such other party shall not be required to
provide any bond or other security in connection with any such relief.   

7.6Counterparts.  This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same agreement. Counterparts may be executed and/or
delivered via DocuSign or other electronic signature solution, facsimile,
electronic mail (including pdf), or other transmission method (or any
combination thereof) and any counterpart so delivered shall be deemed to have
been duly and validly delivered and be valid and effective for all purposes. 

7.7Headings.  The headings and captions used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this
Agreement.  All references in this Agreement to Sections, unless otherwise
provided, refer to Sections of this Agreement. 

7.8Notices.  Any notice or other communication required or permitted to be
delivered to any Party under this Agreement shall be in writing and shall be
deemed properly delivered, given and received when delivered by hand, by
registered mail, by courier or express delivery service, electronic mail, or by
facsimile to the address, electronic mail address, or facsimile telephone number
set forth beneath the name of such Party below (or to such other address,
electronic mail address, or facsimile telephone number as such Party has
specified in a written notice given to the other parties hereto): 

if to Lender: 

 

2485 Village View Drive, Suite 180,  

Henderson, NV 89074 

Telephone No.: (702) 830-7919 

Attention: Jonathan Bonnette 

E-Mail: jbonnette@growcapitalinc.com  

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with a copy to (which shall not constitute notice): 

 

Seyfarth Shaw LLP 

700 Milam Street, Suite 1400 

Houston, Texas 77002 

Telephone No.: (713) 238-1887 

Facsimile No.: (713) 225-2340 

Attention:Mark Coffin 

E-Mail: mcoffin@seyfarth.com  

 

if to Borrower: 

 

Encompass More Group, Inc. 

2485 Village View Drive, Suite 190 

Henderson, NV 89074 

Telephone No.: 888-336-9559 

Attention: Brock McKinley 

E-mail: brockmckinley@outlook.com  

 

with a copy to (which shall not constitute notice): 

 

Ideal Business Partners 

552 E. Charleston Blvd. 

Las Vegas, NV 89104 

Telephone No.: 702-852-6601 

Facsimile No.: 702-947-4955 

Attention: Glenn H. Truitt 

E-mail: glenn@idealbusinesspartners.com 

 

7.9No Finder’s Fees.  Each party represents that it neither is nor shall be
obligated for any finder’s or broker’s fee or commission in connection with the
transactions contemplated by this Agreement. Lender agrees to indemnify and to
hold harmless Borrower from any liability for any commission or compensation in
the nature of a finder’s or broker’s fee arising out of this transaction
(and the costs and expenses of defending against such liability or asserted
liability) for which such Lender or any of its officers, employees, or
representatives is responsible. Borrower agrees to indemnify and hold harmless
Lender from any liability for any commission or compensation in the nature of a
finder’s or broker’s fee (and any asserted liability) for which Borrower or any
of its managers, officers, employees or representatives is responsible. 

7.10Fees and Expenses. Borrower and Lender shall each pay their own expenses in
connection with the transactions contemplated by this Agreement.   

7.11Attorneys’ Fees.  In case of an Event of Default, or any action at law or
suit in equity to enforce the Loan Documents or the rights of Lender under the
Loan Documents, Lender shall be entitled to receive a reasonable sum for its
attorneys’ fees and all other reasonable costs and expenses incurred in such
action or suit. 

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7.12Indemnification.  Borrower agrees to indemnify, defend, and hold Lender
harmless from and against any claim brought or threatened against Lender by
Borrower or any third party (as well as attorneys’ fees and expenses in
connection therewith) on account of Lender’s relationship with Borrower (each of
which may be defended, compromised, settled, or pursued by Lender with counsel
of Lender’s selection, but at Borrower’s expense).  This indemnification shall
survive payment of Borrower’s obligations to Lender and/or any termination,
release, or discharge executed by Lender in Borrower’s favor. 

7.13Amendments and Waivers.  Any term of this Agreement may be amended and the
observance of any term of this Agreement may be waived (either generally or in a
particular instance and either retroactively or prospectively), only with the
written consent of Borrower and Lender.  Any amendment or waiver effected in
accordance with this Section 7.13 shall be binding upon Lender and Borrower. 

7.14Severability.  If one or more provisions of this Agreement are held to be
unenforceable under applicable law, such provision(s) shall be excluded from
this Agreement and the balance of this Agreement shall be interpreted as if such
provision(s) were so excluded and shall be enforceable in accordance with its
terms. 

7.15Entire Agreement.  This Agreement, together with all exhibits and schedules
to this Agreement, constitutes the entire agreement and understanding of the
parties with respect to the subject matter of this Agreement and supersedes any
and all prior negotiations, correspondence, agreements, understandings, duties,
or obligations between the parties with respect to the subject matter of this
Agreement.   

7.16Further Assurances.  From and after the date of this Agreement, upon the
request of Lender or Borrower, Borrower and Lender shall execute and deliver
such instruments, documents, or other writings as may be reasonably necessary or
desirable to confirm and carry out and to effectuate fully the intent and
purposes of this Agreement. 

[SIGNATURES FOLLOW]

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IN WITNESS WHEREOF, the parties to this Agreement have executed this Agreement
as of the date first written above. 

 

BORROWER:

ENCOMPASS MORE GROUP, INC.

 

By: /s/ Brock McKinley

Name: Brock McKinley

Title: President

 

 

 

LENDER:

 

GROW CAPITAL, INC.

 

By:  /s/ Jonathan Bonnette
Name: Jonathan Bonnette

Title:  CEO and President

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[Signature Page to Commercial Loan Agreement]

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EXECUTION VERSION

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EXHIBIT A
FORM OF PROMISSORY NOTE

 

FOR VALUE RECEIVED, and subject to the terms and conditions set forth herein,
ENCOMPASS MORE GROUP, INC., a Nevada corporation (the “Borrower”), hereby
unconditionally promises to pay to the order of GROW CAPITAL, INC., a Nevada
corporation, or its assigns (the “Noteholder,” and together with the Borrower,
the “Parties”), the principal amount of $100,000.00 (the “Loan”), together with
all accrued interest thereon, as provided in this Promissory Note (the “Note”),
dated July     , 2019 (the “Effective Date”) and the Commercial Loan Agreement
(the “Agreement”), dated as of the date hereof, by and between Borrower and the
Noteholder.

1.Definitions. Capitalized terms used herein shall have the meanings set forth
in this Section 1. 

“Applicable Rate” means the rate equal to 5%.

“Borrower” has the meaning set forth in the introductory paragraph.

“Business Day” means a day other than a Saturday, Sunday, or other day on which
commercial banks in Las Vegas, Nevada are authorized or required by law to
close.

“Default” means any of the events specified in Section 8 which constitute an
Event of Default or which, upon the giving of notice, the lapse of time, or
both, pursuant to Section 8, would, unless cured or waived, become an Event of
Default.

“Default Rate” means, at any time, the Applicable Rate plus 2%.

“Event of Default” has the meaning set forth in Section 8.

“Governmental Authority” means the government of any nation or any political
subdivision thereof, whether at the national, state, territorial, provincial,
municipal, or any other level, and any agency, authority, instrumentality,
regulatory body, court, central bank, or other entity exercising executive,
legislative, judicial, taxing, regulatory, or administrative powers or functions
of, or pertaining to, government (including any supranational bodies, such as
the European Union or the European Central Bank).

“Law” as to any Person, means the certificate of incorporation and by-laws or
other organizational or governing documents of such Person, and any law
(including common law), statute, ordinance, treaty, rule, regulation, order,
decree, judgment, writ, injunction, settlement agreement, requirement or
determination of an arbitrator or a court or other Governmental Authority, in
each case applicable to or binding upon such Person or any of its property or to
which such Person or any of its property is subject.

“Lien” means any mortgage, pledge, hypothecation, encumbrance, lien (statutory
or other), charge, or other security interest.

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“Loan” has the meaning set forth in the introductory paragraph.

“Material Adverse Effect” means a material adverse effect on (a) the business,
assets, properties, liabilities (actual or contingent), operations, condition
(financial or otherwise), or prospects of the Borrower; (b) the validity or
enforceability of the Note; (c) the rights or remedies of the Noteholder
hereunder; or (e) the Borrower’s ability to perform any of its material
obligations hereunder.

“Maturity Date” means the earlier of (a) the twelve month anniversary of the
Effective Date; and (b) the date on which all amounts under this Note shall
become due and payable pursuant to Section 9.

“Note” has the meaning set forth in the introductory paragraph.

“Noteholder” has the meaning set forth in the introductory paragraph.

“Order” as to any Person, means any order, decree, judgment, writ, injunction,
settlement agreement, requirement, or determination of an arbitrator or a court
or other Governmental Authority, in each case, applicable to or binding on such
Person or any of its properties or to which such Person or any of its properties
is subject.

“Parties” has the meaning set forth in the introductory paragraph.

“Person” means any individual, corporation, limited liability company, trust,
joint venture, association, company, limited or general partnership,
unincorporated organization, Governmental Authority, or other entity.

2.Payment Dates; Optional Prepayments. 

2.1Monthly Installment Payments.  Borrower shall make monthly installment
payments of $2,000 (each, a “Monthly Payment”), payable on the 1st day of the
month immediately following the date hereof and each month thereafter.   

2.2Final Payment. The aggregate unpaid principal amount of the Loan, all accrued
and unpaid interest, and all other amounts payable under this Note shall be due
and payable on the Maturity Date, unless otherwise provided in Section 9. 

2.3Optional Prepayments. The Borrower may prepay the Loan in whole or in part at
any time or from time to time without penalty or premium by paying the principal
amount to be prepaid together with accrued interest thereon to the date of
prepayment. No prepaid amount may be reborrowed. 

3.Interest. 

3.1Interest Rate. Except as otherwise provided herein, the outstanding principal
amount of the Loan made hereunder shall bear interest at the Applicable Rate
from the date the Loan was made until the Loan is paid in full, whether at
maturity, upon acceleration, by prepayment, or otherwise. 

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3.2Default Interest. If any amount payable hereunder is not paid when due
(without regard to any applicable grace periods), whether at stated maturity, by
acceleration, or otherwise, such overdue amount shall bear interest at the
Default Rate from the date of such non-payment until such amount is paid in
full. 

3.3Computation of Interest. All computations of interest shall be made on the
basis of 365 or 366 days, as the case may be and the actual number of days
elapsed. Interest shall accrue on the Loan on the day on which the Loan is made,
and shall not accrue on the Loan for the day on which it is paid. 

3.4Interest Rate Limitation. If at any time and for any reason whatsoever, the
interest rate payable on the Loan shall exceed the maximum rate of interest
permitted to be charged by the Noteholder to the Borrower under applicable Law,
such interest rate shall be reduced automatically to the maximum rate of
interest permitted to be charged under applicable Law. 

4.Payment Mechanics. 

4.1Manner of Payments. All payments of interest and principal shall be made in
lawful money of the United States of America no later than 12:00 PM Nevada time
on the date on which such payment is due by wire transfer of immediately
available funds to the Noteholder’s account at a bank specified by the
Noteholder in writing to the Borrower from time to time. 

4.2Application of Payments. All payments made hereunder shall be applied first
to the payment of any fees or charges outstanding hereunder, second to accrued
interest, and third to the payment of the principal amount outstanding under the
Note. 

4.3Business Day Convention. Whenever any payment to be made hereunder shall be
due on a day that is not a Business Day, such payment shall be made on the next
succeeding Business Day and such extension will be taken into account in
calculating the amount of interest payable under this Note. 

4.4Rescission of Payments. If at any time any payment made by the Borrower under
this Note is rescinded or must otherwise be restored or returned upon the
insolvency, bankruptcy, or reorganization of the Borrower or otherwise, the
Borrower’s obligation to make such payment shall be reinstated as though such
payment had not been made.  

5.Representations and Warranties. The Borrower hereby represents and warrants to
the Noteholder on the date hereof as follows: 

5.1Existence; Compliance with Laws. The Borrower is (a) a corporation duly
incorporated, validly existing and in good standing under the laws of the state
of Nevada and is duly qualified to do business in each jurisdiction in which the
Borrower is required to be registered in order to conduct its business, and has
the requisite power and authority, and the legal right, to own, lease, and
operate its properties and assets and to conduct its business as it is now being
conducted, and (b) in compliance with all Laws and Orders except to the  

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extent that the failure to comply therewith would not, reasonably be expected to
have a Material Adverse Effect.

5.2Power and Authority. The Borrower has the power and authority, and the legal
right, to execute and deliver this Note and to perform its obligations
hereunder. 

5.3Authorization; Execution and Delivery. The execution and delivery of this
Note by the Borrower and the performance of its obligations hereunder have been
duly authorized by all necessary corporate action in accordance with all
applicable Laws. The Borrower has duly executed and delivered this Note. 

5.4No Approvals. No consent or authorization of, filing with, notice to, or
other act by, or in respect of, any Governmental Authority or any other Person
is required in order for the Borrower to execute, deliver, or perform any of its
obligations under this Note. 

5.5No Violations. The execution and delivery of this Note and the consummation
by the Borrower of the transactions contemplated hereby do not and will not (a)
violate any provision of the Borrower’s organizational documents; (b) violate
any Law or Order applicable to the Borrower or by which any of its properties or
assets may be bound; or (c) constitute a default under any material agreement or
contract by which the Borrower may be bound. 

5.6Enforceability. The Note is a valid, legal, and binding obligation of the
Borrower, enforceable against the Borrower in accordance with its terms, except
as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, or similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law). 

5.7No Litigation. No action, suit, litigation, investigation, or proceeding of,
or before, any arbitrator or Governmental Authority is pending or, to the
knowledge of the Borrower, threatened by or against the Borrower or any of its
property or assets (a) with respect to the Note or any of the transactions
contemplated hereby or (b) that would be expected to materially adversely affect
the Borrower’s financial condition or the ability of the Borrower to perform its
obligations under the Note. 

6.Affirmative Covenants. Until all amounts outstanding in this Note have been
paid in full, the Borrower shall: 

6.1Maintenance of Existence. (a) Preserve, renew, and maintain in full force and
effect its corporate or organizational existence and (b) take all reasonable
action to maintain all rights, privileges, and franchises necessary or desirable
in the normal conduct of its business, except, in each case, where the failure
to do so would not reasonably be expected to have a Material Adverse Effect. 

6.2Compliance. Comply with (a) all of the terms and provisions of its
organizational documents; (b) its obligations under its material contracts and
agreements; (c)  

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all Laws and Orders applicable to it and its business, except where the failure
to do so would not reasonably be expected to have a Material Adverse Effect.

6.3Payment Obligations. Pay, discharge, or otherwise satisfy at or before
maturity or before they become delinquent, as the case may be, all its material
obligations of whatever nature, except where the amount or validity thereof is
currently being contested in good faith by appropriate proceedings, and
appropriate reserves with respect thereto have been provided on its books. 

6.4Notice of Events of Default. As soon as possible and in any event within two
Business Days after it becomes aware that a Default or an Event of Default has
occurred, notify the Noteholder in writing of the nature and extent of such
Default or Event of Default and the action, if any, it has taken or proposes to
take with respect to such Default or Event of Default. 

6.5Further Assurances. Promptly execute and deliver such further instruments and
do or cause to be done such further acts as may be necessary or advisable to
carry out the intent and purposes of this Note. 

7.Negative Covenants. Until all amounts outstanding under this Note have been
paid in full, the Borrower shall not: 

7.1Indebtedness. Incur, create, or assume any additional indebtedness.  

7.2Liens. Incur, create, assume, or suffer to exist any Lien on any of its
property or assets, whether now owned or hereinafter acquired, except for (a)
Liens for taxes not yet due or which are being contested in good faith by
appropriate proceedings; and (b) non-consensual Liens arising by operation of
law, arising in the ordinary course of business, and for amounts which are not
overdue for a period of more than 15 days or that are being contested in good
faith by appropriate proceedings. 

7.3Line of Business. Enter into any business, directly or indirectly, except for
those businesses in which the Borrower is engaged on the date of this Note or
that are reasonably related thereto. 

8.Events of Default. The occurrence and continuance of any of the following
shall constitute an Event of Default hereunder: 

8.1Failure to Pay. The Borrower fails to pay (a) any principal amount of the
Loan when due or (b) interest or any other amount when due and such failure
continues for 5 days. 

8.2Breach of Representations and Warranties. Any representation or warranty made
or deemed made by the Borrower to the Noteholder herein is incorrect in any
material respect on the date as of which such representation or warranty was
made or deemed made. 

8.3Breach of Covenants. The Borrower fails to observe or perform (a) any
covenant, condition or agreement contained in Section 6 or (b) any other
 covenant,  

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obligation, condition, or agreement contained in this Note, other than those
specified in clause (a), and such default shall continue unremedied for a period
of 10 days after the earlier of the date on which (x) any officer of the
Borrower becomes aware of such failure or (y) written notice thereof shall have
been given to the Borrower from Noteholder.

8.4Cross-Defaults. The Borrower fails to pay when due any of its indebtedness
(other than indebtedness arising under this Note), or any interest or premium
thereon, when due (whether by scheduled maturity, acceleration, demand, or
otherwise) and such failure continues after the applicable grace period, if any,
specified in the agreement or instrument relating to such indebtedness. 

8.5Bankruptcy. 

(a)the Borrower commences any case, proceeding, or other action (i) under any
existing or future Law relating to bankruptcy, insolvency, reorganization, or
other relief of debtors, seeking to have an order for relief entered with
respect to it, or seeking to adjudicate it as bankrupt or insolvent, or seeking
reorganization, arrangement, adjustment, winding-up, liquidation, dissolution,
composition, or other relief with respect to it or its debts or (ii) seeking
appointment of a receiver, trustee, custodian, conservator, or other similar
official for it or for all or any substantial part of its assets, or the
Borrower makes a general assignment for the benefit of its creditors;  

(b)there is commenced against the Borrower any case, proceeding, or other action
of a nature referred to in Section 8.5(a) above which (i) results in the entry
of an order for relief or any such adjudication or appointment or (ii) remains
undismissed, undischarged, or unbonded for a period of 30 days;  

(c)there is commenced against the Borrower any case, proceeding, or other action
seeking issuance of a warrant of attachment, execution, or similar process
against all or any substantial part of its assets which results in the entry of
an order for any such relief which has not been vacated, discharged, or stayed
or bonded pending appeal within 30 days from the entry thereof;  

(d)the Borrower takes any action in furtherance of, or indicating its consent
to, approval of, or acquiescence in, any of the acts set forth in Section
8.5(a), Section 8.5(b), or Section 8.5(c) above; or  

(e)the Borrower is generally not, or shall be unable to, or admits in writing
its inability to, pay its debts as they become due. 

8.6Judgments. One or more judgments or decrees shall be entered against the
Borrower and all of such judgments or decrees shall not have been vacated,
discharged, or stayed or bonded pending appeal within 30 days from the entry
thereof. 

9.Remedies. Upon the occurrence of any Event of Default and at any time
thereafter during the continuance of such Event of Default, the Noteholder may,
at its option, by written notice to the Borrower (a) declare the entire
principal amount of this Note, together with all  

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accrued interest thereon and all other amounts payable hereunder, immediately
due and payable; and/or (b) exercise any or all of its rights, powers or
remedies under applicable Law; provided, however, that if an Event of Default
described in Section 8.5 shall occur, the principal of and accrued interest on
the Loan shall become immediately due and payable without any notice,
declaration, or other act on the part of the Noteholder.

10.Miscellaneous. 

10.1Notices.  Any notice or other communication required or permitted to be
delivered to any Party under this Note shall be in writing and shall be deemed
properly delivered, given and received when delivered by hand, by registered
mail, by courier or express delivery service, electronic mail, or by facsimile
to the address, electronic mail address, or facsimile telephone number set forth
beneath the name of such Party below (or to such other address, electronic mail
address, or facsimile telephone number as such Party has specified in a written
notice given to the other parties hereto): 

If to the Borrower:

Encompass More Group, Inc.

2485 Village View Drive, Suite 190

Henderson, NV 89074

Telephone No.: 888-336-9559

Attention: Brock McKinley

E-mail: brockmckinley@outlook.com

with a copy to (which shall not constitute notice):

Ideal Business Partners

552 E. Charleston Blvd.

Las Vegas, NV 89104

Telephone No.: 702-852-6601

Facsimile No.: 702-947-4955

Attention: Glenn H. Truitt

E-mail: glenn@idealbusinesspartners.com

If to the Noteholder:

Grow Capital, Inc.

2485 Village View Drive, Suite 180

Henderson, NV 89074

Telephone No.: (702) 830-7919

Attention: Jonathan Bonnette

E-Mail: jbonnette@growcapitalinc.com

with a copy to (which shall not constitute notice):

Seyfarth Shaw LLP

700 Milam Street, Suite 1400

Houston, Texas 77002

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Telephone No.: (713) 238-1887

Facsimile No.: (713) 225-2340

Attention:Mark Coffin 

E-Mail:mcoffin@seyfarth.com 

10.2Expenses. All fees and expenses incurred in connection with the Note shall
be paid by the Party incurring such expenses, other than as set forth in Section
10.3. 

10.3Attorneys’ Fees. In case of an Event of Default, or any action at law or
suit in equity to enforce this Note or the rights of the Noteholder under this
Note, the Noteholder shall be entitled to receive a reasonable sum for its
attorneys’ fees and all other reasonable costs and expenses incurred in such
action or suit. 

10.4Governing Law. This Note and any claim, controversy, dispute, or cause of
action (whether in contract or tort or otherwise) based upon, arising out of, or
relating to this Note, and the transactions contemplated hereby shall be
governed by the laws of the State of Nevada. 

10.5Submission to Jurisdiction.  

(a)The Borrower hereby irrevocably and unconditionally (i) agrees that any legal
action, suit, or proceeding arising out of or relating to this Note may be
brought in the courts of the State of Nevada or of the United States of America
for the District of Nevada and (ii) submits to the exclusive jurisdiction of any
such court in any such action, suit, or proceeding. Final judgment against the
Borrower in any action, suit, or proceeding shall be conclusive and may be
enforced in any other jurisdiction by suit on the judgment.   

(b)Nothing in this Section 10.5 shall affect the right of the Noteholder to (i)
commence legal proceedings or otherwise sue the Borrower in any other court
having jurisdiction over the Borrower or (ii) serve process upon the Borrower in
any manner authorized by the laws of any such jurisdiction. 

10.6Venue. The Borrower irrevocably and unconditionally waives, to the fullest
extent permitted by applicable law, any objection that it may now or hereafter
have to the laying of venue of any action or proceeding arising out of or
relating to this Note in any court referred to in Section 10.5 and the defense
of an inconvenient forum to the maintenance of such action or proceeding in any
such court. 

10.7Waiver of Jury Trial. THE BORROWER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY RELATING TO THIS NOTE OR THE
TRANSACTIONS CONTEMPLATED HEREBY, WHETHER BASED ON CONTRACT, TORT, OR ANY OTHER
THEORY.  

10.8Counterparts; Integration; Effectiveness. This Note and any amendments,
waivers, consents, or supplements hereto may be executed in counterparts, each
of which  

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shall constitute an original, but all taken together shall constitute a single
contract. This Note constitutes the entire contract between the Parties with
respect to the subject matter hereof and supersede all previous agreements and
understandings, oral or written, with respect thereto. Delivery of an executed
counterpart of a signature page to this Note by facsimile or in electronic
(i.e., “pdf” or “tif”) format shall be effective as delivery of a manually
executed counterpart of this Note.

10.9Successors and Assigns. This Note may be assigned or transferred by the
Noteholder to any Person. The Borrower may not assign or transfer this Note or
any of its rights hereunder without the prior written consent of the Noteholder.
This Note shall inure to the benefit of, and be binding upon, the Parties and
their permitted assigns. 

10.10Waiver of Notice. The Borrower hereby waives demand for payment,
presentment for payment, protest, notice of payment, notice of dishonor, notice
of nonpayment, notice of acceleration of maturity, and diligence in taking any
action to collect sums owing hereunder. 

10.11USA PATRIOT Act. The Noteholder hereby notifies the Borrower that pursuant
to the requirements of the PATRIOT Act it is required to obtain, verify, and
record information that identifies the Borrower, which information includes the
name and address of the Borrower and other information that will allow the
Noteholder to identify the Borrower in accordance with the PATRIOT Act, and the
Borrower agrees to provide such information from time to time to the Noteholder.
 

10.12Interpretation. For purposes of this Note (a) the words “include,”
“includes,” and “including” shall be deemed to be followed by the words “without
limitation”; (b) the word “or” is not exclusive; and (c) the words “herein,”
“hereof,” “hereby,” “hereto,” and “hereunder” refer to this Note as a whole. The
definitions given for any defined terms in this Note shall apply equally to both
the singular and plural forms of the terms defined. Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine, and
neuter forms. Unless the context otherwise requires, references herein: (x) to
Schedules, Exhibits, and Sections mean the Schedules, Exhibits, and Sections of
this Note; (y) to an agreement, instrument, or other document means such
agreement, instrument, or other document as amended, supplemented, and modified
from time to time to the extent permitted by the provisions thereof; and (z) to
a statute means such statute as amended from time to time and includes any
successor legislation thereto and any regulations promulgated thereunder. This
Note shall be construed without regard to any presumption or rule requiring
construction or interpretation against the party drafting an instrument or
causing any instrument to be drafted.  

10.13Amendments and Waivers. No term of this Note may be waived, modified, or
amended except by an instrument in writing signed by both of the parties hereto.
Any waiver of the terms hereof shall be effective only in the specific instance
and for the specific purpose given. 

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10.14Headings. The headings of the various Sections and subsections herein are
for reference only and shall not define, modify, expand, or limit any of the
terms or provisions hereof. 

10.15No Waiver; Cumulative Remedies. No failure to exercise, and no delay in
exercising on the part of the Noteholder, of any right, remedy, power, or
privilege hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, remedy, power, or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right,
remedy, power, or privilege. The rights, remedies, powers, and privileges herein
provided are cumulative and not exclusive of any rights, remedies, powers, and
privileges provided by law. 

10.16Electronic Execution. The words “execution,” “signed,” “signature,” and
words of similar import in the Note shall be deemed to include electronic or
digital signatures or the keeping of records in electronic form, each of which
shall be of the same effect, validity, and enforceability as manually executed
signatures or a paper-based recordkeeping system, as the case may be, to the
extent and as provided for under applicable law. 

10.17Severability. If any term or provision of this Note is invalid, illegal, or
unenforceable in any jurisdiction, such invalidity, illegality, or
unenforceability shall not affect any other term or provision of this Note  or
invalidate or render unenforceable such term or provision in any other
jurisdiction. Upon such determination that any term or other provision is
invalid, illegal, or unenforceable, the parties hereto shall negotiate in good
faith to modify this Note so as to effect the original intent of the parties as
closely as possible in a mutually acceptable manner in order that the
transactions contemplated hereby be consummated as originally contemplated to
the greatest extent possible. 

[signature page follows]

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IN WITNESS WHEREOF, the Borrower has executed this Note as of the Effective
Date.

 

 

ENCOMPASS MORE GROUP, INC.

 

 

 

By__________________________________
Name: Brock McKinley
Title: President

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