Document:

Exhibit 4.1

 

CERTIFICATE OF DESIGNATION OF PREFERENCES,

RIGHTS AND LIMITATIONS

OF CLASS A PREFERRED STOCK, PAR VALUE
$0.001 PER SHARE

OF

CABINET GROW, INC.

 

The undersigned,
the Chief Executive Officer of Cabinet Grow, Inc., a Nevada corporation (the “Corporation”), does hereby certify,
that, pursuant to authority conferred upon the Board of Directors and pursuant to the Nevada Revised Statutes, the following resolutions
creating a Series of Class A Preferred Stock was duly adopted by the Corporation’s Board of Directors on June 2, 2014:

 

WHEREAS, the Articles
of Incorporation of the Corporation, as amended, authorizes the Board of Directors of the Corporation to issue up to ten million
(10,000,000) shares of preferred stock, par value $.001 per share, issuable from time to time in one or more classes or series;

 

WHEREAS, the Board
of Directors is authorized to fix the rights, terms and preferences and the number of shares constituting any series and the designation
thereof, of any of them; and

 

WHEREAS, it is the
desire of the Board of Directors, pursuant to its authority as aforesaid, to fix the rights, preferences, restrictions and other
matters relating to a series of the preferred stock, which shall consist of up to one hundred (100) shares of the preferred stock
which the Corporation has the authority to issue, as follows:

 

NOW, THEREFORE, BE
IT RESOLVED, that the Board of Directors does hereby provide for the issuance of Class A preferred stock and does hereby fix and
determine the rights, preferences, restrictions and other matters relating to such Class A preferred stock as follows:

 

	(a) 	DESIGNATION AND AMOUNT. The preferred stock subject hereof shall be designated Class A Preferred Stock (“Class A Preferred”), and the number of shares constituting Class A Preferred shall be one hundred (100). No other shares of preferred stock shall be designated as Class A Preferred Stock.

 

	(b) 	DIVIDENDS. The holder of the shares of Class A Preferred shall not be entitled to receive dividends.

 

	(c) 	LIQUIDATION PREFERENCE. Upon any liquidation, dissolution or winding up of the Corporation, whether voluntarily or involuntarily, each holder of Class A Preferred Stock shall be entitled to receive a preferential distribution in the amount of $1.00 per share for each share of Class A Preferred Stock such holder owns before any distributions are made to any other stockholders of the Corporation.

 

	 (d) 	VOTING. Except as otherwise provided herein or by law and in addition to any right to vote as a separate class as provided by law, the holders of the Class A Preferred Stock shall have limited voting rights and powers compared to the voting rights and powers of holders of Common Stock and other series of Preferred Stock, shall be entitled to notice of any shareholders meeting in accordance with the Bylaws of the Corporation, and shall be entitled to vote, but only with respect to the following matters (collectively, the “Class A Voting Matters”): (i) the appointment and/or removal of any member of the Corporation’s board of directors, (ii) any matter related to or transaction (or series of transactions) pursuant to which the Corporation would sell or license all or substantially all of its assets or the stockholders of the Corporation would sell all or substantially all of their shares of the Corporation’s stock or where the Corporation would merge with or into any other entity, (iii) causing the Corporation to register its Common Stock for trading pursuant to the Securities Exchange Act of 1934, as amended, including by filing a Registration Statement on Form S-1 with the Securities Exchange Commission and filing and obtaining FINRA approval of a Form 15c2-11, and (iv) with respect to any matter involving a transaction whereby the Corporation will become part of or merge into an existing public company. For so long as Class A Preferred Stock is issued and outstanding, the holders of Class A Preferred Stock shall vote together as a single class with the holders of the Corporation’s Common Stock and the holders of any other class or series of shares entitled to vote with the Common Stock, with the holders of Class A Preferred Stock being entitled to fifty-one percent (51%) of the total votes on only Class A Preferred Voting Matters regardless of the actual number of shares of Class A Preferred Stock then outstanding, and the holders of Common Stock and any other shares entitled to vote being entitled to their proportional share of the remaining 49% of the total votes based on their respective voting power for any Class A Preferred Voting Matter.

 

	(e) 	RESTRICTION ON TRANSFERABILITY. The shares of the Class A Preferred Stock are being issued to Sam May and Matt Lee (the “Stockholders”), who will each then pledge such shares of Class A Preferred Stock (the agreements pursuant to which such shares will be pledged, the “Pledge Agreements”) as collateral for a loan being made to the Corporation by Chicago Venture Partners, L.P., a Utah limited partnership (“CVP”). The Stockholders will hold the Class A Preferred Stock (provided that CVP will retain possession of all certificates representing the Class A Preferred Stock), subject to the terms of Pledge Agreements, unless and until the Corporation defaults on its obligations to CVP, at which time CVP may elect to foreclose on and become the owner of the Class A Preferred Stock, with all rights pertinent to the Class A Preferred Stock, including without limitation the right to vote the Class A Preferred Stock.

 

	(f) 	OTHER PREFERENCES. The shares of the Class A Preferred Stock shall have no other preferences, rights, restrictions, or qualifications, except as otherwise provided by law or the articles of incorporation of the Corporation.

 

RESOLVED,
FURTHER, that the Chief Executive Officer of the Corporation is authorized and directed to prepare and file
a Certificate of Designation in accordance with the foregoing resolution and the provisions of Nevada law.

 

IN WITNESS WHEREOF, the undersigned
has executed this Certificate this 3rd day of June, 2014.

 

	 
	/s/
    Sam May
	
        Name: Sam May

        Title: Chief Executive OfficerExhibit 4.2

 

CABINET GROW, INC.

 

CLASS A PREFERRED STOCK
PURCHASE AGREEMENT

 

This
Class A Preferred Stock Purchase Agreement (this “Agreement”)
is made and entered into as of June 6, 2014 (the “Effective Date”), by and between Cabinet Grow, Inc.,
a Nevada corporation (the “Company”), and Sam May, an individual (the “Purchaser”).

 

Recitals

 

Whereas,
the Company desires to issue and sell Class A Preferred Stock of the Company, par value $0.001 (the “Preferred Stock”),
on the terms and conditions set forth herein, and has authorized such sale and issuance; and

 

Whereas,
the Purchaser desires to purchase such Preferred Stock on the terms and conditions set forth herein.

 

Agreement

 

Now,
Therefore, in consideration of the foregoing recitals and the mutual promises, representations, warranties, and covenants
hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

1.Agreement
To Sell And Purchase.

 

The Purchaser hereby agrees
to purchase, and the Company hereby agrees to sell and issue to the Purchaser, fifty (50) shares (the “Shares”)
of newly issued Preferred Stock of the Company, at a purchase price of One Dollar ($1.00) per share for a total payment of Fifty
and 00/100 Dollars ($50.00) (the “Purchase Price”).

 

2.Closing,
Delivery And Payment.

 

The closing of the sale
and purchase of the Shares under this Agreement (the “Closing”) will take place on the Effective Date,
or at such other time as the parties may otherwise agree. The payment of the Purchase Price shall be made by Purchaser no later
than 4:00 PM on the Effective Date by check or wire transfer of immediately available funds to such account as may be designated
by the Company. Upon receipt of the Purchase Price, Seller will issue a certificate evidencing the Shares to the Purchaser. At
Closing, the Company will cause to be executed and delivered to the Purchaser a fully executed secretary’s certificate and
written consent of directors evidencing the Company’s approval of this Agreement.

 

3.Representations
and Warranties of the Company.

 

The
Company hereby represents and warrants to the Purchaser that as of the Closing hereunder: 

 

(a) The Company
is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada and has all necessary
corporate power and authority to (i) own, operate and occupy its properties and to carry on its business as presently conducted,
and (ii) enter into this Agreement and the other agreements, instruments and documents contemplated hereby, and to consummate the
transactions contemplated hereby and thereby. The Company is qualified to do business and is in good standing in each jurisdiction
in which the failure to so qualify would have a material adverse effect.

 

(b) All necessary
corporate proceedings, votes, resolutions and approvals relating to the issuance and sale of the Shares will have been completed
by the Company. Upon execution, this Agreement will constitute a valid and legally binding obligation of the Company, enforceable
in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other
laws of general application affecting enforcement of creditors’ rights generally, and (ii) as limited by laws relating to
the availability of specific performance, injunctive relief or other equitable remedies.

 

(c) The Shares purchased pursuant
to this Agreement will be, upon payment by the Purchaser in accordance with this Agreement, duly authorized, validly issued, fully
paid, non-assessable, and free of all liens, claims and encumbrances.

 

4.Representations
and Warranties of the Purchaser. 

 

The Purchaser hereby represents
and warrants to the Company that as of the Closing hereunder:

 

(a) The Purchaser
has full power and authority to enter into this Agreement. Upon execution, this Agreement will constitute a valid and legally binding
obligation of the Purchaser, enforceable in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally, and
(ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

 

(b) The Shares
will be acquired for investment for the Purchaser’s own account, not as a nominee or agent, and not with a view to the resale
or distribution of any part thereof, and the Purchaser has no present intention of selling, granting any participation in or otherwise
distributing the same except in compliance with applicable U.S. securities laws.

 

(c) The Purchaser
is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities
Act of 1933, as amended (the “Securities Act”).

 

(d) The Purchaser
is an experienced investor in securities of companies in the development stage, can bear the economic risk of its investment, including
a total loss, and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits
and risks of the investment in the Shares. The Purchaser has conducted its own due diligence review of the Company and received
copies or originals of all documents it has requested from the Company.

 

(e) The Purchaser
understands that the issuance of the Shares has not been, and will not be, registered under the Securities Act, by reason of a
specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide
nature of the investment intent and the accuracy of the Purchaser’s representations as expressed herein. The Purchaser understands
that the Shares are characterized as “restricted securities” under applicable U.S. federal and state securities
laws and that, pursuant to these laws, the Purchaser must hold the Shares indefinitely unless subsequently registered for resale
with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration and qualification
requirements is available.

 

5.Legends.

 

The parties understand
and agree that the Shares will not be registered at the time of issuance, and the certificates evidencing the Shares may bear the
following legends (or a substantially similar legend) and such other legends as may be required by applicable laws of any state
or foreign jurisdiction:

 

“THESE SECURITIES
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THEY MAY NOT BE SOLD, OFFERED FOR
SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES UNDER THE ACT OR UNLESS
SUCH TRANSACTION IS EXEMPT FROM REGISTRATION UNDER APPLICABLE FEDERAL AND STATE SECURITIES LAWS.”

 

6.Miscellaneous.

 

6.1Governing Law.
This Agreement will be governed by and construed in accordance with the laws of the State of Nevada, without regard to principles
of conflicts of law. The parties hereby agree that any legal action, suit or proceeding arising out of or relating to this Agreement
will be brought in federal or state court located in Nevada.

 

6.2Entire Agreement;
Amendments. This Agreement constitutes the full and entire understanding and agreement between the parties with regard to the
subjects hereof and thereof. Except as otherwise expressly provided herein, neither this Agreement nor any term hereof may be amended,
waived, discharged or terminated, except by a written instrument signed by the Company and the Purchaser.

 

6.3Notices.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to be effective upon delivery when delivered (a) personally; (b) by facsimile, provided a positive
transmission report is received and a copy is mailed no later than the next business day through a nationally recognized overnight
delivery service; (c) by overnight delivery with a nationally recognized overnight delivery service, in each case properly addressed
to the party to receive the same. The addresses and facsimile numbers for such communications will be,

 

in the case of the Purchaser:

 

Sam May

17801 Main Street #E

Irvine, California 92614

 

and in the case of the Company:

 

Cabinet Grow, Inc.

17801 Main Street #E

Irvine, California 92614

 

or at such other address and facsimile number
as the receiving party will have furnished to the sending party in writing.

 

6.4Survival.
The representations, warranties, covenants and agreements made and incorporated by reference herein will survive any investigation
made by or on behalf of the Purchaser or the Company, and will survive until the later of two years after the Effective Date or
such time as the Redemption Amount, if any, has been paid in full.

 

6.5Successors and
Assigns. Except as otherwise expressly provided herein, the provisions hereof will inure to the benefit of, and be binding
upon, the respective successors, assigns, heirs, executors and administrators of the parties hereto. The Purchaser may transfer
or assign all or any portion of its rights under this Agreement to any person or entity permitted under applicable securities laws.

 

6.6Interpretations.
All pronouns and any variations thereof will be deemed to refer to the masculine, feminine, neuter, singular or plural, as the
identity of the person or persons or entity or entities may require. All references to “$” or dollars herein will be
construed to refer to United States dollars. The titles of the Sections and subsections of this Agreement are for convenience or
reference only and are not to be considered in construing this Agreement. All references to “including” shall be deemed
to mean “including, without limitation.”

 

6.7Severability.
In case any provision of this Agreement is determined to be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions will not in any way be affected or impaired thereby.

 

6.8Attorneys’
Fees. In the event of any action at law or in equity to enforce or interpret the terms of this Agreement or collect any amounts
owed hereunder, the parties agree that the party who is awarded the most money shall be deemed the prevailing party for all purposes
and shall therefore be entitled to an additional award of the full amount of the attorneys’ fees and expenses paid by such
prevailing party in connection with the litigation, collection and/or dispute without reduction or apportionment based upon the
individual claims or defenses giving rise to the fees and expenses. Nothing herein shall restrict or impair a court’s power
to award fees and expenses for frivolous or bad faith pleading. 

 

6.9Counterparts.
This Agreement may be executed in counterparts, each of which when so executed and delivered will constitute a complete and original
instrument but all of which together will constitute one and the same agreement, and it will not be necessary when making proof
of this Agreement or any counterpart thereof to account for any counterpart other than the counterpart of the party against whom
enforcement is sought.

 

 

 

[signatures
on following page]

 

    	 

    	 

    

In
Witness Whereof, the parties hereto have executed this Class
A Preferred Stock Purchase Agreement as of the date set forth in the first paragraph hereof.

 

 

	
        COMPANY:

         

        Cabinet
        Grow, Inc.

         

         

        By: _________________________________

         

        Name: _______________________________

         

        Title: ________________________________

         

	
         

         

        PURCHASER: 

         

         

        _________________________________

        Sam May

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