Document:

EXHIBIT 10.6 

 

BlackStar Enterprise Group, Inc.

4450 Arapahoe Ave Suite 100

Boulder Co. 80303

 

Corporate Stock Transfer

Attention: Transfer Department

3200 Cherry Creek Drive South

Denver, CO 80209

 

November 4, 2019

 

Ladies and Gentlemen:

 

 

BlackStar Enterprise Group, Inc., a Delaware
corporation (the "Company") and Adar Alef, LLC (the "Investor") have entered
into a Securities Purchase Agreement dated as of November 4, 2019 (the “Agreement”) providing for the issuance of the
10% Convertible Promissory Note in the principal amount of $70,000 (the “Note”).

 

A copy of the Note is attached hereto. You
should familiarize yourself with your issuance and delivery obligations, as Transfer Agent, contained herein. The shares to be
issued are to be registered in the name of the registered holder of the securities submitted for conversion or exercise.

 

You are hereby irrevocably authorized and
instructed to reserve 22,994,383 shares of common stock ("Common Stock") of the Company for issuance upon full conversion
of the Note. The amount of Common Stock so reserved may be increased, from time to time, by written instructions of the Company
or the Investor so long as there are sufficient authorized and unissued shares of the Company not otherwise reserved available
to do so.

 

So long as
you have previously received confirmation from the Company (or Investor’s counsel) that the shares have been registered under
the 1933 Act or otherwise may be sold pursuant to Rule 144 without any restriction, and the Company or its counsel or Investor's
counsel provides an opinion of counsel to that effect in form, substance and scope customary for opinions of counsel in comparable
transactions (and satisfactory to the transfer agent), together with other documentation that may reasonably be requested, and
the number of shares to be issued are less than 4.99% of the total issued common stock of the Company (which may be increased
to 9.9% upon 60 days prior written notice by the Investor), such shares should be issued either
(i) electronically by crediting the account of a Prime Broker with the Depository Trust Company through its Deposit/Withdrawal
Agent Commission system, provided that the Company has been made FAST/DRS eligible by DTCC (DWAC), or (ii) in certificated form
without any legend which would restrict the transfer of the shares, and you should remove all stop-transfer instructions relating
to such shares (such shares shall be issued from the reserve, but in the event there are insufficient reserve shares of Common
Stock to accommodate a Conversion Notice, your firm and the Company agree that the Conversion Notice should be completed using
authorized but unissued shares of Common Stock that the Company has in its treasury that are not otherwise reserved). CST is not
responsible for the accuracy set forth in the Notice of Conversion. Until such time as you are advised by Investor or Company counsel
as above that the shares have been registered under the 1933 Act or otherwise may be sold pursuant to Rule 144 without any restriction,
you are hereby instructed to place the following legend on the certificates:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED
IN THE ABSENCE OF AN EFFECTIVE

    	1 

    	 

    

REGISTRATION STATEMENT FOR THE SECURITIES
UNDER SAID ACT, OR AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS,
THAT REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

 

The Company hereby requests that your firm
act promptly, without unreasonable delay and without the need for any action or confirmation by the Company with respect to the
issuance of Common Stock pursuant to any Conversion Notices received from the Investor.

 

The Company shall indemnify you and your
officers, directors, principals, partners, agents and representatives, and hold each of them harmless from and against any and
all loss, liability, damage, claim or expense (including the reasonable fees and disbursements of its attorneys) incurred by or
asserted against you or any of them arising out of or in connection with the instructions set forth herein, the performance of
your duties hereunder and otherwise in respect hereof, including the costs and expenses of defending yourself or themselves against
any claim or liability hereunder, including claims that may be asserted by the Company, except that the Company shall not be liable
hereunder as to matters in respect of which it is determined that you have acted with gross negligence or in bad faith. You shall
have no liability to the Company in respect to any action taken or any failure to act in respect of this if such action was taken
or omitted to be taken in good faith, and you shall be entitled to rely in this regard on the advice of counsel.

 

The Board of Directors of the Company has
approved the foregoing (irrevocable instructions) and does hereby extend the Company's irrevocable agreement to indemnify your
firm for all loss, liability or expense in carrying out the authority and direction herein contained on the terms herein set forth.

 

All processing fees will be expected and
payable upon receipt of the request from the presenter of such request. The Company and Investor understand and agree that Corporate
Stock Transfer's fee schedule is subject to change and the Investor and the Company agree to pay the full amount of any such conversion
according to the Corporate Stock Transfer fee schedule then in force. Corporate Stock Transfer shall not be obligated to process
any request until and unless its fees are paid. Further, the Company and Investor understand and acknowledge that in the event
that the Company is delinquent in payment of fees due Corporate Stock Transfer in an amount less than $1,500, Corporate Stock Transfer
will honor conversion requests with the additional payment of $200.00 per request. In the event that the Company is suspended with
Corporate Stock Transfer due to non-payment with an account balance owing in excess of $2,500, Investor or Company will be required
to bring the account balance current before any transactions will be processed.

 

The Company agrees that the Transfer Agent
may resign as the Company's transfer agent. In that event, or in the event that the company terminates the Transfer Agent, the
Transfer Agent reserves the right to and may complete any issuance or transfer requests then pending. The Company shall engage
a suitable replacement transfer agent that will agree to serve as transfer agent for the Company and be bound by the terms and
conditions of these Irrevocable Instructions within five (5) business days. In the event that the Company decides to terminate
Corporate Stock Transfer, 30 days’ notice of termination must be given and a fee of $350/irrevocable instruction letter must
be paid prior to termination.

 

The Company hereby authorizes the issuance
of such number of shares as will be necessary to fully convert the Note under its terms and any such shares shall be considered
fully paid and non-assessable at the time of their issuance. The Company and the Investor agree that the Transfer Agent will be
notified in writing by the Company and the Investor when the Note has been fully converted and if there are any remaining shares
in the reservation that are to be released and returned to the Company’s Authorized shares.

    	2 

    	 

    

 

The Investor and Company expressly understand
and agree that nothing in this Irrevocable Transfer Instruction Agreement shall require or be construed in any way to require Corporate
Stock Transfer, in its sole discretion, to do, take or not do or take any action that would be contrary to any court order, any
Federal or State law, rule, or regulation including but expressly not limited to both the Securities Act of 1933 and the Securities
and Exchange Act of 1934 as amended, the rules and regulations promulgated thereunder by the Securities and Exchange Commission,
or the transfer agent agreement with the Company.

 

The Transfer Agent is not responsible for
determining the accuracy of any conversion notice and may rely on any instructions presented to it consistent with this letter.

 

The Investor is intended to be and is a third
party beneficiary hereof, and no amendment or modification to the instructions set forth herein may be made without the consent
of the Investor.

 

 

 

BLACKSTAR ENTERPRISE GROUP, INC.

 

By: /s/ Joseph E. Kurczodyna

____________________________

 

Title: CFO, COB

___________________________

 

 

ADAR ALEF, LLC

 

By: /s/ Aryeh Goldstein

__________________________

Aryeh Goldstein, Manager

 

 

 

 

Acknowledged and Agreed:

Corporate Stock Transfer

 

By: /s/ Michaelie Wingo

________________________________

 

    	3Exhibit

EXHIBIT 10.2

ZILLOW GROUP, INC.
2019 EQUITY INDUCEMENT PLAN

NONQUALIFIED STOCK OPTION GRANT NOTICE
Zillow Group, Inc. (the "Company") hereby grants to you an Option (the "Option") to purchase shares of the Company's Class C Capital Stock under the Zillow Group, Inc. 2019 Equity Inducement Plan (the "Plan").  The Option is subject to all the terms and conditions set forth in this Nonqualified Stock Option Grant Notice (this "Grant Notice") and in the Nonqualified Stock Option Agreement (the "Stock Option Agreement") and the Plan, which are incorporated into this Grant Notice in their entirety.
	
		
	Participant:
	 

	Grant Number:
	 

	Grant Date:
	 

	Vesting Commencement Date:
	 

	Number of Shares of Class C Capital Stock Subject to Option (the "Shares"):
	 

	Exercise Price (per Share):
	 

	Option Expiration Date:
	 

	Type of Option:
	 

	Vesting and Exercisability Schedule (subject to continued employment or service):
	 

Additional Terms/Acknowledgement:  You acknowledge receipt of, and understand and agree to, this Grant Notice, the Stock Option Agreement and the Plan.  You further acknowledge that as of the Grant Date, this Grant Notice, the Stock Option Agreement and the Plan set forth the entire understanding between you and the Company regarding the Option and supersede all prior oral and written agreements on the subject. 

Attachments:
1.  Nonqualified Stock Option Award Agreement 
2.  Plan Summary for the Plan

ZILLOW GROUP, INC.
2019 EQUITY INDUCEMENT PLAN
NONQUALIFIED STOCK OPTION AGREEMENT
Pursuant to your Nonqualified Stock Option Grant Notice (the "Grant Notice") and this Nonqualified Stock Option Agreement (this "Agreement"), Zillow Group, Inc. (the "Company") has granted you an Option under the Zillow Group, Inc. 2019 Equity Inducement Plan (the "Plan") to purchase the number of shares of Class C Capital Stock indicated in your Grant Notice (the "Shares") at the exercise price indicated in your Grant Notice.  Capitalized terms not explicitly defined in this Agreement or the Grant Notice but defined in the Plan have the same definitions as in the Plan.
The details of the Option are as follows:
1.    Vesting and Exercisability.  Subject to the limitations contained herein, the Option will vest and become exercisable as provided in your Grant Notice, provided that vesting will cease upon your Termination of Service and the unvested portion of the Option will terminate.
2.    Securities Law Compliance.  Notwithstanding any other provision of this Agreement, you may not exercise the Option unless the Shares issuable upon exercise are registered under the Securities Act or, if such Shares are not then so registered, the Company has determined that such exercise and issuance would be exempt from the registration requirements of the Securities Act.  The exercise of the Option must also comply with other applicable laws and regulations governing the Option, and you may not exercise the Option if the Company determines that such exercise would not be in material compliance with such laws and regulations.
3.    Independent Tax Advice.  You should obtain tax advice independent from the Company when exercising the Option and prior to the disposition of the Shares.
4.    Method of Exercise.  You may exercise the Option by giving written notice to the Company, in form and substance satisfactory to the Company, which will state your election to exercise the Option and the number of Shares for which you are exercising the Option.  The written notice must be accompanied by full payment of the exercise price for the number of Shares you are purchasing.  You may make this payment in any combination of the following:  (a) by cash; (b) by wire transfer or check acceptable to the Company; (c) if permitted by the Committee, by having the Company withhold shares of Class C Capital Stock that would otherwise be issued on exercise of the Option; (d) if permitted by the Committee, by tendering already owned shares of Class C Capital Stock; (e) while the Class C Capital Stock is registered under the Exchange Act and to the extent permitted by law, by instructing a broker to deliver to the Company the total payment required; or (f) by any other method permitted by the Committee.
5.    Treatment upon Termination of Service. The unvested portion of the Option will terminate automatically and without further notice immediately upon your Termination of Service.  You may exercise the vested portion of the Option as follows:
(a)    General Rule.  You must exercise the vested portion of the Option on or before the earlier of (i) three months after your Termination of Service and (ii) the Option Expiration Date;
(b)    Retirement or Disability.  If your employment or service relationship terminates due to Retirement or Disability, you must exercise the vested portion of the Option on or before the earlier of (i) one year after your Termination of Service and (ii) the Option Expiration Date;
(c)    Death.  If your employment or service relationship terminates due to your death, the vested portion of the Option must be exercised on or before the earlier of (i) one year after your Termination of Service and (ii) the Option Expiration Date.  If you die after your Termination of Service but while the Option is still exercisable, the vested portion of the Option may be exercised until the earlier of (x) one year after the date of death and (y) the Option Expiration Date; and
(d)    Cause.  The vested portion of the Option will automatically expire at the time the Company or a Related Company first notifies you of your Termination of Service for Cause, unless the Committee determines otherwise.  If your employment or service relationship is suspended pending an investigation of whether you will be terminated for Cause, all your rights under the Option likewise will be suspended during the period of investigation.  If any facts that would constitute termination for Cause are discovered after your Termination of Service, any Option you then hold may be immediately terminated by the Committee.

It is your responsibility to be aware of the date the Option terminates.  
6.    Limited Transferability.  During your lifetime only you can exercise the Option.  The Option is not transferable except by will or by the applicable laws of descent and distribution.  The Plan provides for exercise of the Option by a beneficiary designated on a Company-approved form.  Notwithstanding the foregoing, the Committee, in its sole discretion, may permit you to assign or transfer the Option, subject to such terms and conditions as specified by the Committee.
7.    Withholding Taxes.  As a condition to the exercise of any portion of an Option, you must make such arrangements as the Company may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such exercise.  
8.    Option Not an Employment or Service Contract.  Nothing in the Plan or this Agreement will be deemed to constitute an employment contract or confer or be deemed to confer any right for you to continue in the employ of, or to continue any other relationship with, the Company or any Related Company or limit in any way the right of the Company or any Related Company to terminate your employment or other service relationship at any time, with or without cause.
9.    No Right to Damages.  You will have no right to bring a claim or to receive damages if you are required to exercise the vested portion of the Option within three months (one year in the case of Retirement, Disability or death) of your Termination of Service or if any portion of the Option is cancelled or expires unexercised.  The loss of existing or potential profit in the Option will not constitute an element of damages in the event of your Termination of Service for any reason even if the termination is in violation of an obligation of the Company or a Related Company to you.
10.    Binding Effect.  The Grant Notice and this Agreement will inure to the benefit of the successors and assigns of the Company and be binding upon you and your heirs, executors, administrators, successors and assigns.
11.    Section 409A.  Notwithstanding any provision of the Plan, the Grant Notice or this Agreement to the contrary, the Committee may, at any time and without your consent, modify the terms of the Option as it determines appropriate to avoid the imposition of interest or penalties under Section 409A; provided, however, that the Company makes no representations that the Option will be exempt from or comply with Section 409A and makes no undertaking to preclude Section 409A from applying to the Option.

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