Document:

EXHIBIT
10.66

 

SECURITIES
PURCHASE AGREEMENT

This
SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of January 17, 2018, by and between PROGREEN US,
INC., a Delaware corporation, with its address at 2667 Camino del Rio South, Suite 312, San Diego, CA 92108-3763 (the “Company”),
and POWER UP LENDING GROUP LTD., a Virginia corporation, with its address at 111 Great Neck Road, Suite 216, Great Neck,
NY 11021 (the “Buyer”).

 

WHEREAS:

 

A.
The Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under the Securities Act of 1933, as amended (the “1933 Act”); and

 

B.
Buyer desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement
a convertible note of the Company, in the form attached hereto as Exhibit A, in the aggregate principal amount of $63,000.00 (together
with any note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance with the
terms thereof, the “Note”), convertible into shares of common stock, $0.0001 par value per share, of the Company (the
“Common Stock”), upon the terms and subject to the limitations and conditions set forth in such Note.

 

NOW
THEREFORE, the Company and the Buyer severally (and not jointly) hereby agree as follows:

 

1.
Purchase and Sale of Note.

 

a)
Purchase of Note. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees
to purchase from the Company such principal amount of Note as is set forth immediately below the Buyer’s name on the signature
pages hereto.

 

b)
Form of Payment. On the Closing Date (as defined below), (i) the Buyer shall pay the purchase price for the Note to be
issued and sold to it at the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately available
funds to the Company, in accordance with the Company’s written wiring instructions, against delivery of the Note in the
principal amount equal to the Purchase Price as is set forth immediately below the Buyer’s name on the signature pages hereto,
and (ii) the Company shall deliver such duly executed Note on behalf of the Company, to the Buyer, against delivery of such Purchase
Price.

 

c)
Closing Date. Subject to the satisfaction (or written waiver) of the conditions thereto set forth in Section 6 and Section
7 below, the date and time of the issuance and sale of the Note pursuant to this Agreement (the “Closing Date”) shall
be 12:00 noon, Eastern Standard Time on or about January 19, 2018, or such other mutually agreed upon time. The closing of the
transactions contemplated by this Agreement (the “Closing”) shall occur on the Closing Date at such location as may
be agreed to by the parties.

 

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2.
Buyer’s Representations and Warranties. The Buyer represents and warrants to the Company that:

 

a)
Investment Purpose. As of the date hereof, the Buyer is purchasing the Note and the shares of Common Stock issuable upon
conversion of or otherwise pursuant to the Note (such shares of Common Stock being collectively referred to herein as the “Conversion
Shares” and, collectively with the Note, the “Securities”) for its own account and not with a present view towards
the public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the 1933 Act.

 

b)
Accredited Investor Status. The Buyer is an “accredited investor” as that term is defined in Rule 501(a) of
Regulation D (an “Accredited Investor”).

 

c)
Reliance on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance upon specific
exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying
upon the truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments
and understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility
of the Buyer to acquire the Securities.

 

d)
Information. The Company has not disclosed to the Buyer any material nonpublic information and will not disclose such information
unless such information is disclosed to the public prior to or promptly following such disclosure to the Buyer.

 

e)
Legends. The Buyer understands that the Note and, until such time as the Conversion Shares have been registered under the
1933 Act; or may be sold pursuant to an applicable exemption from registration, the Conversion Shares may bear a restrictive legend
in substantially the following form:

 

“THE
SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR UNDER ANY STATE SECURITIES LAWS, AND MAY NOT BE PLEDGED, SOLD, ASSIGNED, HYPOTHECATED OR OTHERWISE TRANSFERRED
UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES
LAWS OR (2) THE ISSUER OF SUCH SECURITIES RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION
ARE REASONABLY ACCEPTABLE TO THE ISSUER’S TRANSFER AGENT, THAT SUCH SECURITIES MAY BE PLEDGED, SOLD, ASSIGNED, HYPOTHECATED
OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES
LAWS.”

 

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The
legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of any Security
upon which it is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for
sale under an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to an exemption from
registration without any restriction as to the number of securities as of a particular date that can then be immediately sold,
or (b) such holder provides the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel
in comparable transactions, to the effect that a public sale or transfer of such Security may be made without registration under
the 1933 Act, which opinion shall be accepted by the Company so that the sale or transfer is effected. The Buyer agrees to sell
all Securities, including those represented by a certificate(s) from which the legend has been removed, in compliance with applicable
prospectus delivery requirements, if any. In the event that the Company does not accept the opinion of counsel provided by the
Buyer with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144, at the Deadline,
it will be considered an Event of Default pursuant to Section 3.2 of the Note.

 

f)
Authorization; Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed
and delivered on behalf of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in
accordance with its terms.

 

3.
Representations and Warranties of the Company. The Company represents and warrants to the Buyer that:

 

a)
Organization and Qualification. The Company and each of its Subsidiaries (as defined below), if any, is a corporation duly
organized, validly existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full power
and authority (corporate and other) to own, lease, use and operate its properties and to carry on its business as and where now
owned, leased, used, operated and conducted. “Subsidiaries” means any corporation or other organization, whether incorporated
or unincorporated, in which the Company owns, directly or indirectly, any equity or other ownership interest.

 

b)
Authorization; Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this
Agreement, the Note and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance
with the terms hereof and thereof, (ii) the execution and delivery of this Agreement, the Note by the Company and the consummation
by it of the transactions contemplated hereby and thereby (including without limitation, the issuance of the Note and the issuance
and reservation for issuance of the Conversion Shares issuable upon conversion or exercise thereof) have been duly authorized
by the Company’s Board of Directors and no further consent or authorization of the Company, its Board of Directors, or its
shareholders is required, (iii) this Agreement has been duly executed and delivered by the Company by its authorized representative,
and such authorized representative is the true and official representative with authority to sign this Agreement and the other
documents executed in connection herewith and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution
and delivery by the Company of the Note, each of such instruments will constitute, a legal, valid and binding obligation of the
Company enforceable against the Company in accordance with its terms.

 

c)
Capitalization. As of the date hereof, the authorized common stock of the Company consists of 950,000,000 authorized shares
of Common Stock, $0.0001 par value per share, of which 372,790,227 shares are issued and outstanding; and no shares are reserved
for issuance pursuant to securities (other than the Note) exercisable for, or convertible into or exchangeable for shares of Common
Stock and 62,068,965 shares are reserved for issuance upon conversion of the Note. All of such outstanding shares of capital stock
are, or upon issuance will be, duly authorized, validly issued, fully paid and non-assessable.

 

    	 	3	 

    	 	 	 

    

 

d)
Issuance of Shares. The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the Note
in accordance with its respective terms, will be validly issued, fully paid and non-assessable, and free from all taxes, liens,
claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights
of shareholders of the Company and will not impose personal liability upon the holder thereof.

 

e)
No Conflicts. The execution, delivery and performance of this Agreement, the Note by the Company and the consummation by
the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation for
issuance of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the Certificate of
Incorporation or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default
(or an event which with notice or lapse of time or both could become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument to which the Company
or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree
(including federal and state securities laws and regulations and regulations of any self-regulatory organizations to which the
Company or its securities are subject) applicable to the Company or any of its Subsidiaries or by which any property or asset
of the Company or any of its Subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments,
accelerations, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect). The
businesses of the Company and its Subsidiaries, if any, are not being conducted, and shall not be conducted so long as the Buyer
owns any of the Securities, in violation of any law, ordinance or regulation of any governmental entity. “Material Adverse
Effect” means any material adverse effect on the business, operations, assets, financial condition or prospects of the Company
or its Subsidiaries, if any, taken as a whole, or on the transactions contemplated hereby or by the agreements or instruments
to be entered into in connection herewith.

 

f)
SEC Documents; Financial Statements. The Company has filed all quarterly and annual reports, to the best of its knowledge,
all other reports, schedules, forms, statements and other documents required to be filed by it with the SEC pursuant to the reporting
requirements of the Securities Exchange Act of 1934, as amended (the “1934 Act”) (all of the foregoing filed prior
to the date hereof and all exhibits included therein and financial statements and schedules thereto and documents (other than
exhibits to such documents) incorporated by reference therein, being hereinafter referred to herein as the “SEC Documents”).
Upon written request the Company will deliver to the Buyer true and complete copies of the SEC Documents, except for such exhibits
and incorporated documents. As of their respective dates or if amended, as of the dates of the amendments, the SEC Documents complied
in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder
applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue
statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made, not misleading. None of the statements made in any
such SEC Documents is, or has been, required to be amended or updated under applicable law (except for such statements as have
been amended or updated in subsequent filings prior the date hereof). As of their respective dates or if amended, as of the dates
of the amendments, the financial statements of the Company included in the SEC Documents complied as to form in all material respects
with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial
statements have been prepared in accordance with United States generally accepted accounting principles, consistently applied,
during the periods involved and fairly present in all material respects the consolidated financial position of the Company and
its consolidated Subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows for the
periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). The Company is subject
to the reporting requirements of the 1934 Act.

 

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g)
Absence of Certain Changes. Since October 31, 2017, except as set forth in the SEC Documents, there has been no material
adverse change and no material adverse development in the assets, liabilities, business, properties, operations, financial condition,
results of operations, prospects or 1934 Act reporting status of the Company or any of its Subsidiaries.

 

h)
Absence of Litigation. Except as set forth in the SEC Documents, there is no action, suit, claim, proceeding, inquiry or
investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the
knowledge of the Company or any of its Subsidiaries, threatened against or affecting the Company or any of its Subsidiaries, or
their officers or directors in their capacity as such, that could have a Material Adverse Effect. The Company and its Subsidiaries
are unaware of any facts or circumstances which might give rise to any of the foregoing.

 

i)
No Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has
directly or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances
that would require registration under the 1933 Act of the issuance of the Securities to the Buyer. The issuance of the Securities
to the Buyer will not be integrated with any other issuance of the Company’s securities (past, current or future) for purposes
of any shareholder approval provisions applicable to the Company or its securities.

 

j)
No Brokers. The Company has taken no action which would give rise to any claim by any person for brokerage commissions,
transaction fees or similar payments relating to this Agreement or the transactions contemplated hereby.

 

k)
No Investment Company. The Company is not, and upon the issuance and sale of the Securities as contemplated by this Agreement
will not be an “investment company” required to be registered under the Investment Company Act of 1940 (an “Investment
Company”). The Company is not controlled by an Investment Company.

 

l)
Breach of Representations and Warranties by the Company. If the Company breaches in any material respect any of the representations
or warranties set forth in this Section 3, and in addition to any other remedies available to the Buyer pursuant to this Agreement,
it will be considered an Event of default under Section 3.4 of the Note.

 

    	 	5	 

    	 	 	 

    

 

4.
COVENANTS.

 

a)
Best Efforts. The Company shall use its best efforts to satisfy timely each of the conditions described in Section 7 of
this Agreement.

 

b)
Form D; Blue Sky Laws. The Company agrees to timely make any filings required by federal and state laws as a result of
the closing of the transactions contemplated by this Agreement.

 

c)
Use of Proceeds. The Company shall use the proceeds for general working capital purposes.

 

d)
Expenses. At the Closing, the Company’s obligation with respect to the transactions contemplated by this Agreement
is to reimburse Buyer’ expenses shall be $1,500.00 for Buyer’s legal fees and due diligence.

 

e)
Corporate Existence. So long as the Buyer beneficially owns any Note, the Company shall maintain its corporate existence
and shall not sell all or substantially all of the Company’s assets, except with the prior written consent of the Buyer.

 

f)
Breach of Covenants. If the Company breaches any of the covenants in any material respect set forth in this Section 4,
and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered an event of default
under Section 3.4 of the Note.

 

g)
Failure to Comply with the 1934 Act. So long as the Buyer beneficially owns the Note, the Company shall comply with the
reporting requirements of the 1934 Act relating to timely filings of quarterly and annual reports; and the Company shall continue
to be subject to the reporting requirements of the 1934 Act.

 

5.
Transfer Agent Instructions. The Company shall issue irrevocable instructions to its transfer agent to issue certificates,
registered in the name of the Buyer or its nominee, for the Conversion Shares in such amounts as specified from time to time by
the Buyer to the Company upon conversion of the Note in accordance with the terms thereof (the “Irrevocable Transfer Agent
Instructions”). In the event that the Company proposes to replace its transfer agent, the Company shall provide, prior to
the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered
pursuant to this Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock in the Reserved
Amount as such term is defined in the Note) signed by the successor transfer agent to Company and the Company. Prior to registration
of the Conversion Shares under the 1933 Act or the date on which the Conversion Shares may be sold pursuant to an exemption from
registration, all such certificates shall bear the restrictive legend specified in Section 2(e) of this Agreement. The Company
warrants that: (i) no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section 5, will be
given by the Company to its transfer agent and that the Securities shall otherwise be freely transferable on the books and records
of the Company as and to the extent provided in this Agreement and the Note; (ii) it will not direct its transfer agent not to
transfer or delay, impair, and/or hinder its transfer agent in transferring (or issuing)(electronically or in certificated form)
any certificate for Conversion Shares to be issued to the Buyer upon conversion of or otherwise pursuant to the Note as and when
required by the Note and this Agreement; and (iii) it will not fail to remove (or directs its transfer agent not to remove or
impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions
in respect thereof) on any certificate for any Conversion Shares issued to the Buyer upon conversion of or otherwise pursuant
to the Note as and when required by the Note and/or this Agreement. If the Buyer provides the Company and the Company’s
transfer, at the cost of the Buyer, with an opinion of counsel in form, substance and scope customary for opinions in comparable
transactions, to the effect that a public sale or transfer of such Securities may be made without registration under the 1933
Act, the Company shall permit the transfer, and, in the case of the Conversion Shares, promptly instruct its transfer agent to
issue one or more certificates, free from restrictive legend, in such name and in such denominations as specified by the Buyer.
The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer, by vitiating
the intent and purpose of the transactions contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for
a breach of its obligations under this Section 5 may be inadequate and agrees, in the event of a breach or threatened breach by
the Company of the provisions of this Section, that the Buyer shall be entitled, in addition to all other available remedies,
to an injunction restraining any breach and requiring immediate transfer, without the necessity of showing economic loss and without
any bond or other security being required.

 

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6.
Conditions to the Company’s Obligation to Sell. The obligation of the Company hereunder to issue and sell the Note
to the Buyer at the Closing is subject to the satisfaction, at or before the Closing Date of each of the following conditions
thereto, provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time
in its sole discretion:

 

a)
The Buyer shall have executed this Agreement and delivered the same to the Company.

 

b)
The Buyer shall have delivered the Purchase Price in accordance with Section 1(b) above.

 

c)
The representations and warranties of the Buyer shall be true and correct in all material respects as of the date when made and
as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date),
and the Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the Buyer at or prior to the Closing Date.

 

d)
No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having
authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this
Agreement.

 

7.
Conditions to The Buyer’s Obligation to Purchase. The obligation of the Buyer hereunder to purchase the Note at the
Closing is subject to the satisfaction, at or before the Closing Date of each of the following conditions, provided that these
conditions are for the Buyer’s sole benefit and may be waived by the Buyer at any time in its sole discretion:

 

a)
The Company shall have executed this Agreement and delivered the same to the Buyer.

 

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b)
The Company shall have delivered to the Buyer the duly executed Note (in such denominations as the Buyer shall request) in accordance
with Section 1(b) above.

 

c)
The Irrevocable Transfer Agent Instructions, in form and substance satisfactory to the Buyer, shall have been delivered to and
acknowledged in writing by the Company’s Transfer Agent.

 

d)
The representations and warranties of the Company shall be true and correct in all material respects as of the date when made
and as of the Closing Date as though made at such time (except for representations and warranties that speak as of a specific
date) and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and
conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date.
The Buyer shall have received a certificate or certificates, executed by the chief executive officer of the Company, dated as
of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by the Buyer including,
but not limited to certificates with respect to the Board of Directors’ resolutions relating to the transactions contemplated
hereby.

 

e)
No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having
authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this
Agreement.

 

f)
No event shall have occurred which could reasonably be expected to have a Material Adverse Effect on the Company including but
not limited to a change in the 1934 Act reporting status of the Company or the failure of the Company to be timely in its 1934
Act reporting obligations.

 

g)
The Conversion Shares shall have been authorized for quotation on an exchange or electronic quotation system and trading in the
Common Stock on such exchange or electronic quotation system shall not have been suspended by the SEC or an exchange or electronic
quotation system.

 

h)
The Buyer shall have received an officer’s certificate described in Section 3(d) above, dated as of the Closing Date.

 

8.
Governing Law; Miscellaneous.

 

a)
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Virginia without
regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
by this Agreement shall be brought only in the state courts of New York or in the federal courts located in the state and county
of Nassau. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted
hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The
Company and Buyer waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s
fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid
or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that
it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may
prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.
Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding
in connection with this Agreement, the Note or any related document or agreement by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

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b)
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but
all of which shall constitute one and the same agreement and shall become effective when counterparts have been signed by each
party and delivered to the other party.

 

c)
Headings. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the
interpretation of, this Agreement.

 

d)
Severability. In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute
or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed
modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any
law shall not affect the validity or enforceability of any other provision hereof.

 

e)
Entire Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding of
the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither
the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision
of this Agreement may be waived or amended other than by an instrument in writing signed by the majority in interest of the Buyer.

 

f)
Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder
shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered
or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party
shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder
shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting
facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where
such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during
normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by
express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first
occur. The addresses for such communications shall be as set forth in the heading of this Agreement with a copy by fax only to
(which copy shall not constitute notice) to Naidich Wurman LLP, 111 Great Neck Road, Suite 214, Great Neck, NY 11021, Attn: Allison
Naidich, facsimile: 516-466-3555, e-mail: allison@nwlaw.com. Each party shall provide notice to the other party of any
change in address.

 

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g)
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and assigns. Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the
prior written consent of the other. Notwithstanding the foregoing, the Buyer may assign its rights hereunder to any person that
purchases Securities in a private transaction from the Buyer or to any of its “affiliates,” as that term is defined
under the 1934 Act, without the consent of the Company.

 

h)
Survival. The representations and warranties of the Company and the agreements and covenants set forth in this Agreement
shall survive the closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. The
Company agrees to indemnify and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage
arising as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties and
covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses
as they are incurred.

 

i)
Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably
request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

j)
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rules of strict construction will be applied against any party.

 

k)
Remedies. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the
Buyer by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the
remedy at law for a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or
threatened breach by the Company of the provisions of this Agreement, that the Buyer shall be entitled, in addition to all other
available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining,
preventing or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity
of showing economic loss and without any bond or other security being required.

 

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IN
WITNESS WHEREOF, the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above
written.

 

	PROGREEN
    US, INC.	 
	 	 	 
	By:	/s/
    Jan Telander	 
	 	Jan
    Telander	 
	 	Chief
    Executive Officer	 

 

	POWER
    UP LENDING GROUP LTD.	 
	 	 	 
	By:	/s/
    Curt Kramer	 
	Name:	Curt
    Kramer	 
	Title:	Chief
    Executive Officer	 
	 	111
    Great Neck Road, Suite 216	 
	 	Great
    Neck, NY 11021	 

 

	AGGREGATE
    SUBSCRIPTION AMOUNT:	 
	 	 
	Aggregate
    Principal Amount of Note:	$63,000.00
	 	 
	Aggregate
    Purchase Price:	$63,000.00

 

    	 	11pixy_ex101.htm

EXHIBIT 10.1  

 

 

 EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Agreement”) is made and executed to become effective on the 24th day of January, 2018 (the “Effective Date”), by and between ShiftPixy, Inc., a Wyoming corporation (“ShiftPixy” or the “Company”), and Patrice H. Launay, an individual and resident of the State of California (“Executive”).

 

In consideration of the mutual undertakings of the parties set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Executive hereby agree as follows:

 

1. Employment. The Company hereby employs Executive, and Executive hereby accepts employment with the Company, on the terms and conditions hereinafter set forth. The Company may, for purposes of convenience and/or financial management, arrange for Executive’s employment with the Company to be effected through the Company’s subsidiary.

 

2. Term. The term of this Agreement shall commence and be effective as of the Effective Date set forth above and shall extend from that date until the Agreement is terminated as provided herein (the “Employment Term”). 

 

3. Nature of Duties and Responsibilities. During the Employment Term, Executive shall be employed by the Company in the position described on Exhibit A hereto. Executive shall initially have such duties and responsibilities as are described on Exhibit A hereto, although the Company may modify such duties from time to time. Executive shall have such authority to act on behalf of the Company as is provided in the Company’s bylaws and as otherwise provided by the Board of Directors of the Company. Executive shall at all times abide by the established policies and procedures of the Company, as such policies and procedures may be revised by the Company from time to time, as well as any directives and guidelines imposed by the Board of Directors of the Company. In addition, Executive shall abide by and comply with all such requirements as may be imposed, from time to time, upon persons performing in Executive’s designated position, including all applicable requirements of the SEC and Nasdaq.

 

4. Extent of Services. Executive agrees to devote his or her attention, skills and energies during the Employment Term to the business of the Company and to exercise the highest degree of care and loyalty to the Company and the highest standards of conduct in the performance of his duties. During the Employment Term, Executive shall not be engaged in any other business or activity that in any way materially conflicts with or detracts from Executive’s duties to the Company or with the business of the Company, whether or not such business or activity is pursued for gain, profit or other pecuniary advantage, provided, however, that during the Employment Term, it shall not be a violation of this Agreement for Executive to serve as a director of or officer of or otherwise participate in other businesses and civic, charitable, and educational organizations so long as that service or participation is not injurious to the Company, does not violate Section 11 of this Agreement, and does not otherwise materially conflict with or detract from Executive’s duties to the Company. 

 

	  
	
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5. Location. The initial place of employment of Executive shall be in Irvine, California. Executive may be required to conduct reasonable travel in the course of the performance of his or her duties on behalf of the Company.

 

6. Compensation.

 

(a) For all services rendered by Executive under this Agreement, the Company shall compensate Executive at the monthly base rate of $20,000.00 per month, paid on a semi-monthly basis ($10,000.00 per pay period.) This is a full-time, exempt position, and Executive will not be entitled to overtime. No oral representation contrary to this pay plan is contractually binding. At the time of execution hereof, all employees are paid on the 5th and 20th of each month; for the pay period between the 1st and the 15th of the month, the employees are paid by the 20th of that month; for the pay period between the 16th and the end of the month, employees are paid by the 5th of the following month; when the 5th or the 20th of the month falls on a Saturday, employees would be paid on the preceding Friday; if the 5th or the 20th of the month falls on a Sunday or holiday, employees would be paid on the following business day.

 

(b) During the Employment Term, Executive may receive additional compensation (“Additional Compensation”) determined in accordance with any bonus or incentive plan or program (a “Bonus Plan”) applicable to Executive that the Company may (but shall not be required to) adopt from time to time. The terms of any Bonus Plan shall be determined by the mutual agreement of the Company and Executive, and any such Bonus Plan shall become effective only when set forth in a writing executed by the Company and Executive. 

 

(c) On an annual basis, the Company may conduct a compensation review and provide a base rate salary increase based on considerations and evaluations which include, but are not limited to the following: attainment of corporate and personal objectives, years employed with the Company, knowledge gained, personal performance, continuing educational courses completed, degrees obtained, etc. 

 

(d) The Company shall be entitled to withhold such amounts on account of employment and payroll taxes and similar matters required by applicable law, rule or regulation of any appropriate governmental authority.

 

(e) During the Employment Term, the Company shall pay the reasonable expenses incurred by Executive (based on business development objectives and within limits that may be established and communicated to the Executive by the Company) in the performance of his or her duties under this Agreement (or shall reimburse Executive on account of such expenses paid directly by Executive) promptly upon the submission to the Company by Executive of appropriate vouchers prepared in accordance with applicable regulations of the Internal Revenue Service. Such expenses include, but are not limited to the following: hotel, food, taxi fare, gas, car rental, etc. 

 

	  
	
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7. Retirement Benefits. The Company sponsors a qualified retirement annuity plan as described in Section 401(k) of the Internal Revenue Code and/or other retirement plans or programs. Executive’s eligibility and participation shall be governed by the terms of such plans. 

 

8. Other Benefits.

 

(a) Executive may be entitled to and eligible for group health, medical, dental, vision, prescription, long-term disability, life insurance and any other fringe benefits that may from time to time be available to other salaried executives of the Company, all upon such terms and conditions as generally applicable to such other executives. The Company currently pays for its salaried executives 100% of the medical, dental and vision insurance offered through its plans and 100% of any buy up plans and dependent coverage.

 

(b) Executive shall be entitled to twenty (20) paid vacation days during each year of the Employment Term. 

 

(c) Subject to the terms of the Stock Option Grant Policy as adopted by ShiftPixy’s Board of Directors and/or its Compensation Committee, as applicable, Executive will be granted an option to purchase shares of the Company’s common stock. The grant of such options and the options themselves will be subject to the terms, conditions and limitations the ShiftPixy 2017 Stock Option / Stock Issuance Plan, including any applicable constraints imposed by the Board of Directors.

 

9. Harassment; Discrimination. In the event that Executive determines or suspects at any time during the Employment Term or thereafter that he or she has been the victim or object of any form of sexual or other form of harassment or discrimination based on race, sex, age or other legally recognized characteristic or basis in connection with Executive’s employment with the Company, whether occurring in the workplace or otherwise, Executive shall immediately report such actual or suspected harassment or discrimination to the Legal Department or President of the Company. Any failure on the part of Executive to so report any actual or suspected harassment or discrimination shall constitute a violation of Company policy as well as a failure to mitigate Executive’s exposure to such harassment or discrimination.

 

	 
	
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10. Termination.

 

(a) Termination for Cause. Prior to the end of the Employment Term of this Agreement, the Company may terminate this Agreement for cause, as provided below. In such event, the Company shall pay to Executive all accrued but unpaid compensation (excluding Additional Compensation) earned to the effective date of termination, and the Company shall thereafter have no further liability hereunder to Executive for any compensation. The Company may terminate Executive for cause without notice in the event that Executive (1) has committed any act of misconduct or dishonesty that relates to the business of the Company; (2) is convicted of any crime (other than traffic violations) at any time hereafter; (3) breaches any provision of this Agreement; (4) fails to follow instructions provided by the President, Board of Directors, or any committee of the Board of Directors of the Company, or fails to comply with any established policy or procedure of the Company; (5) fails to adequately and competently perform the duties required of him or her under the terms of this Agreement, and fails to timely correct any performance deficiencies communicated in writing to Executive by the Company; (6) is repeatedly absent from his or her duties without authorization; (7) commits any act of sexual harassment or discrimination with respect to any other Executive or employee or vendor of the Company; or (8) otherwise violates any policy of the Company.

 

(b) Termination Without Cause. During the Employment Term, the Company may terminate this Agreement other than as provided in Section 10(a), upon thirty (30) days’ prior written notice to Executive. In such event, the Company shall pay to Executive (1) all accrued but unpaid compensation (including Additional Compensation) earned to the effective date of termination, and (2) such severance compensation as may be applicable to such Executive in accordance with the terms of any severance compensation policy adopted by the Company and in effect at such time. Notwithstanding that the parties intend this Agreement to constitute a contract of employment “at will” such that either party may terminate the Agreement at any time, they each agree to provide notice of termination as provided herein, recognizing the burdens imposed on each party in connection with such event. 

 

(c) Death of Executive. In the event Executive’s death occurs during the Employment Term, the Company shall pay to the estate of Executive all accrued but unpaid compensation (including Additional Compensation) earned to the date of death.

 

(d) Disability of Executive. In the event that Executive has been at any time unable due to any physical or mental illness, injury or condition to adequately perform the essential functions of the duties required under the terms of this Agreement for a period of more than one hundred twenty (120) days, the Company may terminate this Agreement, in which case the Company shall pay to Executive or his or her legal guardian all accrued but unpaid compensation (including Additional Compensation) earned to the date of such termination.

 

(e) Voluntary Resignation. Executive may, upon thirty (30) days’ prior written notice to the Company, voluntarily resign and thereby terminate this Agreement at any time prior to the expiration of the Employment Term. In such event, the Company shall pay to Executive all accrued but unpaid compensation (excluding Additional Compensation) earned to the effective date of resignation, and Executive agrees to assist in the transition of Executive’s duties to his or her successor.

 

(f) Effect of Termination. 

 

(1) Other than as expressly provided in this Section 10, all other benefits provided to Executive hereunder shall terminate on the expiration or earlier termination of the Employment Term. 

 

	 
	
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(2) Notwithstanding any other provision of this Agreement, upon termination of Executive’s employment with the Company, and unless otherwise requested by the Board, the Executive shall immediately resign as of the Termination Date from all positions that Executive holds or has ever held with the Company (and with any other entities with respect to which the Company has requested the Executive to perform services), including, without limitation, the Board of Directors and any committees thereof. Executive hereby agrees to execute any and all documentation to effectuate such resignations upon request by the Company, but he shall be treated for all purposes as having so resigned upon termination of his employment, regardless of when or whether he executes any such documentation.

 

(3) Executive shall provide such information and assistance as the Company reasonably requests to assist the Company in the mediation, arbitration, or litigation of any, claim, action, suit or proceeding maintained against the Company arising from events occurring during Executive’s employment with the Company, provided that the Company shall reimburse the Executive for all reasonable and necessary out‐of‐pocket expenses incurred by the Executive in complying with this Section.

 

(4) The Executive’s rights to retirement or health benefits shall be governed by the provisions of applicable benefit plans. 

 

11. Covenants. 

 

(a) Competition and Interference. Executive agrees that at no time during the period beginning on the date on which the Employment Term begins and concluding on the date that is one year following the end of the Employment Term with the Company (the “Covenant Term”) will Executive either directly or indirectly (1) engage in any business activity that is competitive with the Company, (2) recruit, solicit, or induce, or attempt to recruit, solicit, or induce, any employee or independent contractor of the Company to engage in work on behalf of any other business enterprise, (3) recruit, solicit, or induce, or attempt to recruit, solicit, or induce, any employee or independent contractor associated with the Company to terminate or breach an employment, contractual or other relationship with the Company, or (4) call on, solicit, take away, or attempt to call on, solicit, or take away any customer of the Company on whom Executive may have called or with whom Executive became acquainted during the Employment Term, as the direct or indirect result of Executive’s employment with the Company. 

 

(b) Confidentiality and Trade Secrets. With regard to Confidential Information and trade secrets, Executive agrees that— 

 

(1) during the period beginning on the date on which the Employment Term begins and concluding on the date that is five years following the end of the Employment Term with the Company (the “Confidentiality Term”), Executive shall not directly or indirectly divulge or make use of any Confidential Information outside of Executive’s employment with the Company (so long as the information remains confidential);

 

	 
	
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(2) during the period beginning on the date on which the Employment Term begins and continuing indefinitely (the “Trade Secret Term”), Executive shall not misappropriate, divulge, or make use of any trade secret of the Company, so long as the information remains a trade secret as defined by applicable law;

 

(3) applicable law may impose longer duties of nondisclosure and such longer periods are not shortened by this Agreement;

 

(4) for purposes of this Agreement, “Confidential Information” means information about the Company and its customers, prospects, and/or vendors that is not generally known outside of the Company, which Executive may learn of in connection with Executive’s employment with the Company, and may include, without limitation: (A) plans and specifications for the Company’s proprietary software and service offerings; (B) the Company’s marketing tools and methodologies; (C) the identity of the Company’s customers, prospects, and/or vendors (including names, addresses, and telephone numbers of contacts thereof); (D) the account terms and pricing upon which the Company obtains products and services from its vendors; (E) the account terms and pricing of sales contracts between the Company and its customers; (F) the proposed account terms and pricing of sales contracts between the Company and its prospects; (G) the names and addresses of the Company’s employees and other business contacts of the Company; and (H) the techniques, methods, and strategies by which the Company develops, manufactures, markets, distributes, and/or sells any of its offerings.

 

(c) Harmful Statements. Executive shall not at any time disseminate any information or make any statements, whether written, oral or otherwise, that are negative, disparaging or critical of the Company or any of its parents, subsidiaries, affiliates, or their respective officers, directors, employees, shareholders, trustees, administrators, or employee benefit plans, or the representatives, employees, agents, predecessors, successors, heirs, or assigns of any of the foregoing (hereinafter, “Company Parties”), or their business or operations, or that place any of the Company Parties in a bad light, other than any such statement or information that is made or disseminated by Executive in a good‐faith belief as to their truth or accuracy and either is required by law or is reasonably necessary to the enforcement by Executive of any right Executive has related to his employment with the Company. 

 

(d) Enforcement. Executive hereby acknowledges that (1) the Company will suffer irreparable harm if Executive breaches the covenants as set forth herein; and (2) monetary damages will be inadequate to compensate the Company for such a breach. Therefore, if Executive breaches any of the aforesaid covenants, then the Company shall be entitled to injunctive relief, in addition to any other remedies at law or equity, to enforce such provisions; in addition, if the Company is successful in securing enforcement of the covenants against Executive, Executive agrees to reimburse the Company for its reasonable attorney’s fees incurred in connection with such enforcement.

 

	 
	
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12. Waiver of Breach. The waiver by either party of a breach of any provisions of this Agreement by either party shall not operate or be construed as a waiver of any subsequent breach by either party.

 

13. Successors. This Agreement shall be binding upon and accrue to the benefit of any successors and assigns of the Company. This Agreement is not assignable by Executive or by the Company, except upon the agreement of both parties.

 

14. Construction. This Agreement shall be construed under and enforced in accordance with the laws of the state of residence of Executive.

 

15. Entire Agreement. This Agreement is the entire agreement of the parties and supersedes all prior agreements and understandings, written or oral. This Agreement shall not be amended or modified except in writing executed by both parties.

 

16. Notice. For the purposes of this Agreement, notices shall be deemed given upon actual delivery or when mailed by United States certified or registered mail, return receipt requested, postage prepaid, addressed in the case of the Company to its principal executive office; or in the case of Executive to the address shown on the signature page of this Agreement. Either party may change such address by giving the other party notice of such change in the aforesaid manner, except that notices of changes of address shall only be effective upon receipt.

 

17. Counterparts. This Agreement may be executed by the parties in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. A digital copy of any counterpart hereof shall be deemed an original, and the parties may sign this Agreement digitally.

 

18. Severability. If any covenant or provision hereof is determined to be void or unenforceable in whole or in part, it shall not be deemed to affect or impair the validity of any other covenant or provision, each of which is hereby declared to be separate and distinct. If any provision of this Agreement is declared invalid or unenforceable, the offending provision shall be modified or interpreted so as to maintain the essential benefits of the bargain among the parties hereto to the maximum extent possible, consistent with law and public policy.

 

19. Law, Jurisdiction and Venue. This Agreement is made under, and shall be construed in accordance with, the laws of the State of California. Jurisdiction and venue shall be exclusively in the state or federal courts having jurisdiction over Orange County, California. 

 

The balance of this page is intentionally blank.

 

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

 

	
ShiftPixy, Inc.
		
Executive:

	
 
	
 
	
 

	
By:
			
By:
		 
	
Name:
	
Scott W. Absher
		
Name:
	
Patrice H. Launay
	 
	
Title:
	
President and CEO
		
Date:
		 
	
Date:
					 

 

Exhibit A: Position and Duties

 

Executive’s title shall be: Chief Financial Officer

 

Executive’s duties shall include: Such duties as are typical to executives in similar positions at publicly traded organizations within the staffing, employment and technology industries and such other duties as may be required from time to time by the Company. Executive shall report to the President, to the Board of Directors and/or to any committee of the Board of Directors, as applicable.

 

 

	
 

	
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