Document:

PRIVATE
AND CONFIDENTIAL

 

 

November
28, 2018

 

 

REGENTYS
CORPORATION 

6135
NW 167th Street, Suite E-15

Miami
Lakes, Florida 33015

Attention:
Richard C. Bulman, Jr., CEO

 

Dear
Sir:

 

Re:       Binding
Letter of Intent

 

This
letter agreement sets forth our agreement and understanding as to the essential terms of the sale to Generex Biotechnology
Corporation, Delaware corporation  (or an affiliate thereof) (the “Purchaser”) by Regentys Corporation,
A Florida corporation  (the “Corporation”) of equity securities in the capital of the Corporation equal
to fifty-one percent (51%) of the authorized and issued equity securities in the capital of the Corporation on a post-closing
basis (the “Transaction”). The parties intend this letter agreement to be binding and enforceable, and that
it will inure to the benefit of the parties and their respective successors and assigns.

 

	Purchased
Shares. On the terms and subject to the fulfilment of the conditions hereof, on the Closing Date (as that term is hereinafter
defined) the Corporation will sell to the Purchaser, and the Purchaser will purchase and accept from the Corporation, an aggregate
of common shares in the capital of the Corporation equal to no less than fifty-one percent (51%) of the issued and outstanding
equity securities in the capital of the Corporation on a post-closing basis (the “Purchased Shares”).

 

	Purchase
Price. The price payable by the Purchaser to the Corporation for the Purchased Shares will be $1.25 per share for an aggregate
sum of Fifteen Million Dollars ($15,000,000) (the “Purchase Price”).

    	 	1	 

     

    

	Within
two (2) business days of the execution of this Letter of Intent, the Purchaser will pay to the Corporation a Development Milestone
Payment in the amount of Four Hundred Thousand Dollars ($400,000) (the “Milestone Payment”) by wire transfer
of immediately available funds.

 

		i.	On
                                         the Closing Date, the Milestone Payment (without interest) will be deemed applied against
                                         the Purchaser’s obligation to make payment of the Purchase Price (320,000 shares
                                         of Corporation common stock).

 

		ii.	In
                                         the event of the termination of this letter agreement after payment of the Milestone
                                         Payment (otherwise than by operation of the execution and delivery of the Formal Agreement),
                                         at the Purchaser’s sole option, (x) the Milestone Payment shall be repayable by
                                         the Corporation, without interest, within 180 days of the date of termination of this
                                         letter agreement, or (y) in full and final satisfaction of the Corporation’s obligation
                                         to repay the Milestone Payment, the Corporation shall issue to the Purchaser that number
                                         of common shares in the capital of the Corporation equal to 2% of the issued and outstanding
                                         equity securities in the capital of the Corporation (on a post-issuance basis) calculated
                                         as at the date of this letter agreement.

 

	The
balance of the Purchase Price - Fourteen Million Six Hundred Thousand Dollars ($14,600,000) will be due and payable by the Purchaser
to the Corporation via a promissory note at 4% APR (“Note”) comprised of guaranteed payments (“Guaranteed
Payments”) and incremental payments to occur as follows (the “Incremental Payments”):

 

		i.	$3,450,000
                                         as a Guaranteed Payment to initiate pre-clinical activities on or before January 15,
                                         2018;

		ii.	$2,000,000
                                         as a Guaranteed Payment to initiate patient recruitment activities on or before May 1,
                                         2019;

		iii.	$3,000,000
                                         as a Guaranteed Payment to initiate a first-in-human pilot study on or before September
                                         1, 2019;

		iv.	$5,000,000
                                         as an Incremental Payment (4,000,000 shares of Corporation common stock) to initiate
                                         a human pivotal study on or before February 1, 2020; and

		v.	$1,150,000
                                         as an Incremental Payment (920,000 shares of Corporation common stock) to submit a 510(k)
                                         de novo submission to the FDA on or about February 1, 2021.

    	 	2	 

     

    

 

	Provided
that each of the Guaranteed Payments is made when due, the price to be paid by the Purchaser for each share of the Corporation’s
common stock shall be $1.25 per share. In the event that the Purchaser fails to make full payment when due of the Guaranteed Payments,
the Corporation, in its sole discretion, shall have the option to (i) forfeit all of Purchaser’s shares OR (ii) demand and
receive freely tradeable common shares of Purchaser equivalent to 110% of the value of the missing Guaranteed Payment with Purchaser
facilitating the disposition of same in ordinary trading activities and in accordance with all state and federal securities laws,
rules and regulations and exchange requirements.

 

	Provided
that each of the Incremental Payments is made when due, the price to be paid by the Purchaser for each share of the Corporation’s
common stock shall be $1.25 per share. In the event any Incremental Payment is not paid when due, (i) Purchaser’s ownership
interest in the Purchased Shares shall be automatically and proportionally reduced based upon the amount of the Purchase Price
actually paid and (ii) such Purchaser’s share certificate shall be returned by Purchaser to Corporation for reissuance and
failing that, Corporation shall be entitled to automatically adjust Purchaser’s ownership interest on the books of the Corporation.

 

	Notwithstanding
any of the foregoing, the Purchaser shall have a period of sixty (60) calendar days following the date upon which any Incremental
Payment is due and payable to “cure” a default by making payment of such Incremental Payment in full in cash (but
subject to Corporation rights set forth in Section 2 (c)) failing which the Corporation shall, among other things, be entitled
in its sole discretion to pursue alternative sources of capital without regard to any pre-emptive rights, rights of first refusal,
or anti-dilution protections otherwise available to the Purchaser.

 

	Provided
further that the Purchaser shall be entitled, in its sole discretion, to accelerate payment (and therefore common share vesting)
of any Incremental Payment, in whole or in part.

    	 	3	 

     

    

 

	The
Formal Agreement (as that term is hereinafter defined) will provide that it shall be a condition precedent to closing that the
Corporation will covenant and agree to deliver to the Purchaser, within sixty (60) calendar days of the Closing Date the financial
statements of the Corporation mandated by Regulation S-X (17 C.F.R. Part 210) audited by a PCAOB auditor (the “Financial
Statements”) so as to facilitate consolidation of such financial statements with those of the Purchaser. In the event
that the Financial Statements are not delivered to the Purchaser on or before the Delivery Date, the Purchaser shall be entitled,
in its sole discretion, to rescind the Transaction, in which event (i) the Milestone Payment and any Guaranteed Payments and Incremental
Payments made prior to such rescission will be forthwith due and repayable by the Corporation to the Purchaser.

 

	The
Purchase Price will be utilized by the Corporation generally in accordance with a use of proceeds, budget, and timeline annexed
to the Formal Agreement.

 

	On
the Closing Date, the Corporation will issue to the Purchaser a certificate evidencing ownership of fifty one percent (51%) of
the authorized and issued shares of the Corporation with Purchaser executing a stock purchase agreement and a pledge and security
agreement to secure payment to Seller of the amounts owed pursuant to the Note.

 

	Conditions
Precedent to Closing. The closing of the Transaction will be subject to the satisfaction of the following conditions precedent
(in addition to any conditions precedent identified in the Formal Agreement (as that term is hereinafter defined)) (the “Conditions
Precedent”):

 

	The
parties shall have agreed upon the terms and conditions of a formal agreement in respect of the Transaction (the “Formal
Agreement”), which Formal Agreement shall memorialize the provisions of this letter agreement and include industry-standard
terms and conditions in respect of the Transaction. For greater certainty, the Formal Agreement will contain representations and
warranties customary to transactions like the Transaction, including, without limitation, representations and warranties by the
Corporation (i) as to the accuracy and completeness of the Corporation's internally generated financial statements, dated as of
September 30, 2018, (ii) disclosure of all the Corporation's material contracts, commitments and liabilities, direct or contingent;
(iii) the physical condition, suitability, ownership and absence of liens, claims and other adverse interests with respect to
the Corporation's assets; (iv) issuance and status of the Purchased Shares; (e) the absence of liabilities with respect to the
Corporation and liabilities incurred in the ordinary course of business since the date of latest audited financial statements;
(f) the absence of a material adverse change in the condition (financial or otherwise), business, properties, assets or prospects
of the Corporation; (g) the absence of pending or threatened litigation, claims, investigations or other matters affecting the
Transaction; (h) the Corporation's compliance with laws and regulations applicable to its business and obtaining all licenses
and permits required for its business; and (i) the due incorporation, organization, valid existence, good standing and capitalization
of the Corporation. The parties hereby covenant and agree to diligently pursue good faith negotiation of the Formal Agreement.

    	 	4	 

     

    

 

	Each
of the Purchaser and the Corporation shall be satisfied, in its sole discretion, with the results of its due diligence investigations
in respect of the Transaction.

 

	The
holders of the Corporation’s Series A Preferred Stock (the “Preferred A Holders”) and the holders of
the Corporation’s common stock shall have executed and delivered to and in favor of the Corporation and the Purchaser any
and all consents to, and waivers in respect of, the Transaction as mandated the terms and conditions of (i) the Second Amended
and Restated Articles of Incorporation of the Corporation (the “Articles of Incorporation”), (ii) the Series
A Convertible Preferred Stock Purchase Agreement between the Corporation and the Preferred A Holders (the “Preferred
A SPA”), and (iii) the Second Amended and Restated Shareholder’s Agreement, such consent to include, inter
alia, (x) consent to the composition of the Board (as that term is hereinafter defined), (y) consent to the issuance of the
Purchased Shares to the Purchaser, and (z) a waiver of the preemptive purchase rights set forth in the Rights Agreement.

 

	The
boards of directors of each of the Purchaser and the Corporation shall have approved the Transaction.

 

	Closing
Date. The closing date of the Transaction (the “Closing Date”) shall be the closing date specified in the
Formal Agreement; provided, however, that either party shall be entitled, in its sole discretion, to terminate this letter agreement
in the event that the Formal Agreement has not been executed and delivered on or before December 31, 2018. In the event that the
Formal Agreement has not been executed and delivered prior to the due date for payment of the First Guaranteed Payment, the Purchaser
shall nonetheless make the First Guaranteed Payment ($3,450,000) when due. In the event of the termination of this letter agreement
after payment of the First Guaranteed Payment (otherwise than by operation of the execution and delivery of the Formal Agreement),
at the Purchaser’s sole option, (x) the First Guaranteed Payment shall be repayable by the Corporation, without interest,
within 360 days of the date of termination of this letter agreement (unless the First Incremental Payment is due and payable on
an earlier date pursuant to paragraph 2(f) of this letter agreement), or (y) in full and final satisfaction of the Corporation’s
obligation to repay the First Incremental Payment, the Corporation shall issue to the Purchaser that number of common shares in
the capital of the Corporation equal to 20% of the issued and outstanding equity securities in the capital of the Corporation
(on a post-issuance basis) calculated as at the date of this letter agreement.

 

	Board
Membership & Executive Management Participation. From and after the Closing Date and for so long as the Purchaser is the
registered and beneficial owner of not less than fifty-one percent (51%) of the issued and outstanding equity securities in the
capital of the Corporation, the size of the Corporation’s Board of Directors (the “Board”) shall be set
at seven (7) composed of (i) the CEO of the Corporation, (ii) one officer of the Corporation (iii) the CEO of Purchaser, one appointee
of Series A Holders and three independent directors. Currently the Board of Directors is
composed of Richard C. Bulman, Jr., Gerard S. Coombs, Reginald Hardy, Michael Phalen, Hal Wrigley, (Series A), Darren Sloniger
and Joseph Moscato, and one more independent director. The term of service is two years and board seats are staggered. The
Corporation shall reimburse directors for reasonable expenses associated with travel in attending Board meetings. The Corporation
shall also tender a stipend or other remuneration to the three independent directors, in such amount(s) as is customary in the
industry. The Corporation will maintain director and officer liability insurance with recognized carriers with coverage and in
amounts satisfactory to the Purchaser.

 

Upon
execution and delivery of this letter agreement, for throughout the currency of this letter agreement, one representative of Corporation
shall be invited to attend each and every meeting of the board of directors of the Purchaser as an “observer”.

 

	Purchaser
First Refusal and Co-Sale Rights. Purchaser will have the right to purchase any shares that holders propose to sell or transfer
to any third party (other than Permitted Transfers as defined by Amended and Restated Shareholder Agreement). This right may be
exercised if Corporation does not elect to purchase all of the transferred shares. Investors that do not exercise their rights
of first refusal will have the right to include their pro rata share of Common (on an as-if-converted basis) in any such sale
by a Founder.

 

	Shareholders.
Purchaser shall be required to execute a shareholder agreement.
	Restrictive
Rights. Purchaser will not be able to transfer its shares except pursuant to Shareholder Agreement - Permitted transfers:
(i) estate purposes; (ii) death; (iii) SEC-defined Affiliates; (iv) entities managing the beneficial interests; and (v) sale of
substantially all of the assets or stock of Corporation.

    	 	5	 

     

    

 

	Pre-Closing
Corporation Operation. Commencing on the date hereof and ending on the later of the Closing Date or December 31, 2018:

 

	Conduct
of Business. The Corporation shall: use its best efforts to preserve intact the Corporation’s business organization,
its board of directors, its employees and other business relationships; continue to operate in the ordinary course of its business
and maintain its books, records and accounts in accordance with generally accepted accounting principles, consistent with past
practice; use its reasonable best efforts to maintain the Corporation's current financial condition, including working capital
levels; not incur any indebtedness or enter into any agreements to make business or product line acquisitions; and, not declare
or make any dividend or stock distributions.

 

	Standstill.
The Corporation shall not enter into, nor continue to any extent, negotiations for any merger or acquisition of the Corporation,
any financing that may result in a change of control of the Corporation, or the sale of all or substantially all of the Corporation’s
assets without providing written notification to Purchaser and procuring the Purchaser’s written consent to proceed. The
Corporation acknowledges that the Purchaser will incur significant expense in connection with its due diligence investigations
of the Corporation and preparation and negotiation of the Formal Agreement. As a result, upon execution of this letter agreement,
the Corporation shall terminate any extant discussions or negotiations with, and shall cease to provide information to or otherwise
cooperate with, any party other than the Purchaser and its representatives with respect to a Prospective Acquisition Transaction
(as that term is hereinafter defined). In addition, from and after the date hereof, neither the Corporation nor any of its shareholders,
subsidiaries or affiliates, or any of their respective officers, directors, employees, members, managers, representatives or agents,
will directly or indirectly encourage, solicit, initiate, have or continue any discussions or negotiations with or participate
in any discussions or negotiations with or provide any information to or otherwise cooperate in any other way with, or enter into
any agreement, letter of intent or agreement in principle with, or facilitate or encourage any effort or attempt by any corporation,
partnership, Corporation, person or other entity or group (other than the Purchaser and its shareholders, subsidiaries or affiliates,
or any of their respective officers, directors, employees, members, managers, representatives or agents) concerning any merger,
joint venture, recapitalization, reorganization, sale of substantial assets, sale of any shares of capital stock, investment or
similar transaction involving the Corporation or any subsidiary or division of the Corporation (each, a "Prospective Acquisition
Transaction"). The Corporation shall notify the Purchaser promptly in writing of any inquiries, proposals or offers made
by third parties to the Corporation or any of its shareholders, subsidiaries or affiliates, or any of their respective officers,
directors, employees, members, managers, representatives or agents with respect to a Prospective Acquisition Transaction and furnish
the Purchaser the terms thereof (including, without limitation, the type of consideration offered and the identity of the third
party). The Corporation shall deal exclusively with the Purchaser with respect to any Prospective Acquisition Transaction.

    	 	6	 

     

    

 

	Post-Closing
Corporation Operations. On the Closing Date, the Purchaser and the Corporation will execute and deliver a Management Agreement
(the “Management Agreement”) in respect of the day-to-day management of the business, affairs, and operations
of the Corporation. The Management Agreement will include the following terms:

 

	Management.
The management team will be adjusted only with the approval of a majority of the directors and founders. So long as Founders (Bulman,
Coombs, Ramer, Ramphal and Sapan) or Purchaser owns fifteen percent (15%) of the outstanding shares of Corporation, Purchaser
will not, without director and Founder approval: (i) make any loan or advance to any person, including, any employee or director,
except advances and similar expenditures in the ordinary course of business or under the terms of the Equity Plan approved by
the Board; (ii) guarantee any indebtedness except for trade accounts of Corporation or any subsidiary arising in the ordinary
course of business; (iii) make any investment other than investments in prime commercial paper, money market funds, certificates
of deposit in any United States bank having a net worth in excess of $100,000,000 or obligations issued or guaranteed by the United
States of America, in each case having a maturity not in excess of two (2) years; (iv) incur any aggregate indebtedness in excess
of $50,000 that is not already included in a Board-approved budget, other than trade credit incurred in the ordinary course of
business; (v) enter into or be a party to any transaction with any director, officer or employee of Corporation or any “associate”
(as defined in Rule 12b-2 promulgated under the Exchange Act) of any such person except transactions made in the ordinary course
of business and pursuant to reasonable requirements of Corporation’ business and upon fair and reasonable terms that are
approved by a majority of the Board; or (vi) hire, fire, or change the compensation of the executive officers, including any Equity
Plans or (vii) alter payment terms of the Note.

 

	Liquidity
Right. Founders or their designees shall have the right to compel Purchaser to undertake a transaction or liquidity event
as approved by the Board and consented to by a majority of the Corporation shareholders voting by class (common and preferred)
(1) where such transaction shall result in: (a) an initial public offering of Regentys Corporation on a recognized national exchange
with a FMV or revenues of $100M or more OR (b) a purchase of substantially all of the stock or assets of Corporation - or a related
business combination with or by a third party - with at least 3X return on the Corporation FMV (as of closing date approx. $30M)
(subject to share adjustments, etc.) OR (2) upon the departure of Joseph Moscato as CEO of Purchaser.

 

	Right
to Invest. In the event Corporation shall require additional investment capital to conclude its FDA or commercialization activities,
Purchaser shall be permitted a right to match the terms of any third-party investment on the same or similar terms that management
may seek or be able to solicit, provided however, such right shall exclude licensing or rights transactions.

 

	Tender
Offer.Purchaser hereby grants Corporation shareholders the right but not the obligation to participate in a tender
offer to exchange restricted Corporation shares for publicly held Generex shares at a price to be determined based upon the fair
market value of both companies, provided however, such tender offer shall require the approval of the Corporation Board given
its shares are subject to a shareholder agreement and other corporate restrictions. The public stock may be subject to usual and
customary holding periods for insiders.

    	 	7	 

     

    

 

 

	Representations
& Warranties - Corporation. The Corporation represents and warrants to the Purchaser as follows, and confirms that the
Purchaser is relying upon the accuracy of each of such representations and warranties in connection with the purchase of the Purchased
Shares and the completion of the other transactions hereunder:

 

	On
the Closing Date, the Purchased Shares will constitute fifty-one percent (51%) of the issued and outstanding equity securities
in the capital of the Corporation on a fully-diluted basis.

 

	The
Corporation has good right, full corporate power and absolute authority to enter into this letter agreement and to sell the Purchased
Shares to the Purchaser in the manner contemplated hereby and to perform all of the Corporation’s obligations hereunder.

 

	Other
than as contemplated by the Articles, the Preferred A SPA, and the Rights Agreement, no person (including any form of entity or
organization) has any agreement, option, understanding or commitment, or any right or privilege (whether by law, pre-emptive or
contractual) capable of becoming an agreement, option or commitment, including convertible securities, warrants or convertible
obligations of any nature, for, (i) the purchase, subscription, allotment or issuance of, or conversion into, any of the unissued
shares in the capital of the Corporation or any securities of the Corporation, or (ii) the purchase or other acquisition from
the Corporation of any of its undertaking, property or assets, other than in the ordinary course of the Corporation’s business.

 

	Representation
& Warranties – Purchaser. The Purchaser represents and warrants to the Corporation as follows, and confirms that
the Corporation is relying upon the accuracy of each of such representations and warranties in connection with the sale of the
Purchased Shares and the completion of the other transactions hereunder. The Purchaser has good right, full corporate power, and
absolute authority to enter into this letter agreement, to acquire the Purchased Shares from the Corporation in the manner contemplated
hereby, and to perform all of the Purchaser’s obligations hereunder.

 

	Confidentiality.
The parties acknowledge being bound by a reciprocal confidential disclosure agreement made May 10, 2017 (the “CDA”),
the terms of which are incorporated hereby by reference.

 

	Disclosure.
The Corporation hereby acknowledges and accepts that, notwithstanding anything to the contrary set forth in the CDA, within four
(4) business days of the date of execution and delivery of this letter agreement, the Purchaser will be obligated by applicable
federal securities laws to file a Form 8-K Current Report with the U.S. Securities and Exchange Commission disclosing the existence,
terms, and conditions of this letter agreement. All press releases and other public announcements relating to this letter agreement
or the Transaction will be agreed upon by both parties acting reasonably.

 

    	 	8	 

     

    

	Expenses.
The parties will pay all of their respective expenses incidental to this letter agreement, the Formal Agreement, and the consummation
of the Transaction (and, for greater certainty, the fees and expenses associated with the requisite audit of the Corporation’s
financial statements will be borne by the Corporation). Each party hereby represents and warrants to the other that there are
no brokerage or finder’s fees that are or will be payable in respect of the Transaction.

 

	Governing
Law. This letter agreement shall be governed by and construed in accordance with the laws of the State of Florida without
regard to any conflict of laws principles.

 

 

 

 

Signature
Page to Follow

 

 

    	 	9	 

     

    

If
the foregoing correctly sets forth our mutual understanding and agreement, please so indicate by signing where indicated below
and returning a signed copy to the Purchaser.

 

	 	 	GENEREX BIOTECHNOLOGY CORPORATION
	 	 	 
	 	By:	 
	 	Name:	Joseph Moscato
	 	Title:	President & Chief Executive Officer
	 	 	 
	 	 	 
	 	 	REGENTYS CORPORATION
	 	 	 
	11/2/18	By:	 
	 	Name:	Richard C. Bulman, Jr.
	 	Title:	Chief Executive Officer

 EvG0

 

    	 	10sigo_ex101.htm

EXHIBIT 10.1
  
 PURCHASE AGREEMENT
  
 This PURCHASE AGREEMENT (this “Agreement”) is dated as of November 30, 2018, (“Effective Date”) between Job Growing Inc. and Sunset IS Group Inc. (“SIGO”).
  
 RECITALS
  
 WHEREAS, Job Growing Inc., a Delaware corporation (“Job Grow” or the “Company”), intends to create and establish a job board and staffing solution in the cannabis sector and provide other back office services and has 4,000 shares of common stock authorized, of which 2,000 are currently outstanding; and
  
 WHEREAS, SIGO wishes to purchase a Fifty Percent (50%) interest in the net profits of the Company in exchange for One Million Dollars ($1,000,000) of Series C Preferred Stock with the rights and preferences set forth at Exhibit A attached hereto, estimated as of the Effective Date to be Three Hundred Thirty-Three Thousand (333,000) shares of Series C Preferred Stock in total (the “Purchase”).
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby agreed and acknowledged, the parties hereby agree as follows:
  
 AGREEMENT
  
 1. Purchase and Sale.
  
 (a) In consideration of and in express reliance upon the representations, warranties, covenants, terms and conditions of this Agreement, the Company shall assign a Fifty Percent (50%) net profit interest, (the “Job Grow Interest”), in exchange for One Million Dollars ($1,000,000) of Series C Preferred Stock of SIGO with the rights and preferences set forth at Exhibit A attached hereto (the “SIGO Equity”), which is to be issued as Three Hundred Thirty-Three Thousand (333,000) shares of Series C Preferred Stock. The Company and SIGO agree to take all actions which are necessary in order to assign the Job Grow Interest and issue the SIGO Equity, and the Additional SIGO Equity (defined below) (if necessary), respectively. If, on the six-month anniversary of this Agreement, the SIGO Equity has a Market Value of less than $1,000,000 (on an as-converted basis), SIGO shall cause additional shares (the “Additional SIGO Equity”) of Series C Preferred Stock to be issued in total to the Company such that the aggregate value of the SIGO Equity and the Additional SIGO Equity equal $1,000,000. The term “Market Value”, shall be defined as the closing price of the SIGO common stock on the trading day immediately prior to the six-month anniversary of the Effective Date. If SIGO fails to issue the Additional SIGO Equity within three business days of the six- month anniversary date of the Effective Date, it shall be considered a breach of this Agreement by SIGO and the Company shall be entitled to all legal remedies without the need for notice of such breach.
  
 (b) In the event that the Company either: (i) files a Registration Statement to become a reporting company under the Securities Exchange Act of 1934 which becomes effective, or (ii) the Company is acquired by an unrelated third party, then SIGO has the right to buy a Fifty Percent (50%) equity interest in the Company (“Job Grow Equity”) for One Dollar ($1.00).
  
 (c) The closing under this Agreement (the “Closing”) shall take place upon the satisfaction of each of the conditions set forth in Sections 4 and 5 hereof (the “Closing Date”).
   	 
	1
	 
 
	 

  
 (c) At the Closing, the Company shall assign to SIGO the Job Grow Interest, and SIGO shall issue to the Company, a certificate evidencing the SIGO Equity.
  
 (d) Each Party understands that (i) the sale or re-sale of the Job Grow Equity and SIGO Equity, respectively, has not been and is not being registered under the 1933 Act or any applicable state securities laws, and the shares assigned and issued may not be transferred unless (a) the shares are sold pursuant to an effective registration statement under the 1933 Act, (b) each Party shall have delivered to the other Party, at the cost of the Party requesting free trading status, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in comparable transactions to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration, provided that the requirements under such exemption are met, (c) the shares are sold or transferred to an “affiliate” (as defined in Rule 144 promulgated under the 1933 Act (or a successor rule) (“Rule 144”)) of the Party holding the shares who agrees to sell or otherwise transfer the shares only in accordance with this Section 2(d); (ii) any sale of such shares made in reliance on Rule 144 may be made only in accordance with the terms of said Rule and further, if said Rule is not applicable, any re-sale of such shares under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and (iii) neither Party nor any other person is under any obligation to register such shares under the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder (in each case).
  
 2. Representations, Warranties and Covenants of the Company. The Company, hereby makes the following representations and warranties to SIGO, and covenants for the benefit of SIGO:
  
 (a) This Agreement has been duly authorized, validly executed and delivered by the Company, and is a valid and binding agreement and obligation of the Company enforceable against the Company in accordance with its terms, subject to limitations on enforcement by general principles of equity and by bankruptcy or other laws affecting the enforcement of creditors’ rights generally, and the Company has full power and authority to execute and deliver the Agreement and the other agreements and documents contemplated hereby and to perform its obligations hereunder and thereunder.
  
 (b) The Company acknowledges that the SIGO Equity is being issued in reliance on specific provisions of Federal and state securities laws and that SIGO is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of the Company set forth herein for purposes of qualifying for exemptions from registration under the Securities Act of 1933, as amended (the “Securities Act “) and applicable state securities laws.
  
 (c) The shareholders of the Company are “accredited investors” as defined under Rule 501 of Regulation D promulgated under the Securities Act.
  
 (d) No officer, director or affiliated person of the Company (collectively, the “Covered Persons”), are subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(l)(i) to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). Job Grow has exercised reasonable care to determine whether any Covered Person is subject to a Disqualification Event.
  
 (e) The SIGO Shares are being acquired for investment purposes, and not with a view to any resale or distribution in whole or in part, in violation of the Securities Act or any applicable securities laws.
   	 
	2
	 
 
	 

  
 (f) The issuance of the SIGO Equity is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) and/or 4(a)(5) thereof. The Company understands that the SIGO Equity constitutes “restricted securities,” as that term is defined in the Securities Act and the rules thereunder, has not been registered under the Securities Act, and that none of the SIGO Equity can be sold or transferred unless first registered under the Securities Act and such state and other securities laws as may be applicable or SIGO receives an opinion of counsel reasonably acceptable to SIGO that an exemption from registration under the Securities Act is available (and then the SIGO Equity may be sold or transferred only in compliance with such exemption and all applicable state and other securities laws).
  
 (g) The Job Grow Interest is free and clear of all rights and Encumbrances (as defined below). The Company has the full power and authority to transfer and dispose of the Job Grow Interest free and clear of any right or Encumbrance other than restrictions under the Securities Act and applicable state securities laws. “Encumbrances” shall mean any security or other property interest or right, claim, lien, pledge, option, charge, security interest, contingent or conditional sale, or other title claim or retention agreement, interest or other right or claim of third parties, whether perfected or not perfected, voluntarily incurred or arising by operation of law, and including any agreement (other than this Agreement) to grant or submit to any of the foregoing in the future.
  
 3. Representations, Warranties and Covenants of SIGO. SIGO represents and warrants to the Company, and covenants for the benefit of the Company, as follows:
  
 (a) SIGO has been duly incorporated and is validly existing and in good standing under the laws of the state of Nevada, with full corporate power and authority to own, lease and operate its properties and to conduct its business as currently conducted, and is duly registered and qualified to conduct its business and is in good standing in each jurisdiction or place where the nature of its properties or the conduct of its business requires such registration or qualification, except where the failure to register or qualify would not have a Material Adverse Effect. For purposes of this Agreement, “Material Adverse Effect” shall mean any material adverse effect on the business, operations, properties, prospects, or financial condition of SIGO and its subsidiaries and/or any condition, circumstance, or situation that would prohibit or otherwise materially interfere with the ability of SIGO to perform any of its obligations under this Agreement in any material respect.
  
 (b) The SIGO Equity has been duly authorized by all necessary corporate action and, when paid for or issued in accordance with the terms hereof, the SIGO shall be validly issued and outstanding, fully paid and non-assessable, free and clear of all liens, encumbrances and rights of refusal of any kind.
  
 (c) This Agreement has been duly authorized, validly executed and delivered on behalf of SIGO and is a valid and binding agreement and obligation of SIGO enforceable against SIGO in accordance with its terms, subject to limitations on enforcement by general principles of equity and by bankruptcy or other laws affecting the enforcement of creditors’ rights generally, and SIGO has full power and authority to execute and deliver the Agreement and the other agreements and documents contemplated hereby and to perform its obligations hereunder and thereunder.
   	 
	3
	 
 
	 

  
 (d) The execution and delivery of the Agreement and the consummation of the transactions contemplated by this Agreement by SIGO, will not (i) conflict with or result in a breach of or a default under any of the terms or provisions of, (A) SIGO’s certificate of incorporation or by- laws, or (B) of any material provision of any indenture, mortgage, deed of trust or other material agreement or instrument to which SIGO is a party or by which it or any of its material properties or assets is bound, (ii) result in a violation of any provision of any law, statute, rule, regulation, or any existing applicable decree, judgment or order by any court, Federal or state regulatory body, administrative agency, or other governmental body having jurisdiction over SIGO, or any of its material properties or assets or (iii) result in the creation or imposition of any material lien, charge or encumbrance upon any material property or assets of SIGO or any of its subsidiaries pursuant to the terms of any agreement or instrument to which any of them is a party or by which any of them may be bound or to which any of their property or any of them is subject except in the case of clauses (i)(B), (ii) or (iii) for any such conflicts, breaches, or defaults or any liens, charges, or encumbrances which would not have a Material Adverse Effect.
  
 (e) The delivery and issuance of the SIGO Equity in accordance with the terms of and in reliance on the accuracy of the Company’s representations and warranties set forth in this Agreement will be exempt from the registration requirements of the Securities Act.
  
 (f) No consent, approval or authorization of or designation, declaration or filing with any governmental authority on the part of SIGO is required in connection with the valid execution and delivery of this Agreement or the offer, sale or issuance of the SIGO Equity or the consummation of any other transaction contemplated by this Agreement.
  
 (g) SIGO has complied and will comply with all applicable federal and state securities laws in connection with the issuance and delivery of the SIGO Equity hereunder. Neither SIGO nor anyone acting on its behalf, directly or indirectly, has or will sell, offer to sell or solicit offers to buy any of the SIGO Equity, or similar securities to, or solicit offers with respect thereto from, or enter into any preliminary conversations or negotiations relating thereto with, any person, or has taken or will take any action so as to bring the issuance and sale of any of the SIGO Equity under the registration provisions of the Securities Act and applicable state securities laws. Neither SIGO nor any of its affiliates, nor any person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act) in connection with the offer or sale of any of the SIGO Equity.
  
 (h) SIGO represents that it has not paid, and shall not pay, any commissions or other remuneration, directly or indirectly, to any third party for the solicitation of the Purchase.
  
 4. Conditions Precedent to the Obligation of SIGO to Consummate the Purchase. The obligation hereunder of SIGO to issue and deliver the SIGO Equity to the Company and consummate the Purchase is subject to the satisfaction or waiver, at or before the Closing Date, of each of the conditions set forth below. These conditions are for SIGO’s sole benefit and may be waived by SIGO at any time in its sole discretion.
  
 (a) The Company has executed and delivered this Agreement.
  
 (b) The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with at or prior to the Closing Date.
   	 
	4
	 
 
	 

  
 (c) 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 that time, except for representations and warranties that are expressly made as of a particular date, which shall be true and correct in all material respects as of such date.
  
 5. Conditions Precedent to the Obligation of the Company to Consummate the Purchase and Sale. The obligation hereunder of the Company to assign the Job Grow Interest, accept the SIGO Equity, and consummate the Purchase is subject to the satisfaction or waiver, at or before the Closing Date, of each of the conditions set forth below. These conditions are for the Company’s benefit and may be waived by the Company at any time in its sole discretion.
  
 (a) SIGO shall have executed and delivered this Agreement.
  
 (b) SIGO shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by the Agreement to be performed, satisfied or complied with by SIGO at or prior to the Closing Date.
  
 (c) Each of the representations and warranties of SIGO 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 particular date, which shall be true and correct in all material respects as of such date.
  
 (d) No statute, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by this Agreement at or prior to the Closing Date.
  
 (e) As of the Closing Date, no action, suit or proceeding before or by any court or governmental agency or body, domestic or foreign, shall be pending against or affecting SIGO, or any of its properties, which questions the validity of the Agreement or the transactions contemplated thereby or any action taken or to be taken pursuant thereto. As of the Closing Date, no action, suit, claim or proceeding before or by any court or governmental agency or body, domestic or foreign, shall be pending against or affecting SIGO, or any of its properties, which, if adversely determined, is reasonably likely to result in a Material Adverse Effect.
  
 6. Governing Law; Consent to Jurisdiction. This Agreement shall be governed by and interpreted in accordance with the laws of the State of New York without giving effect conflicts of law principles that would result in the application of the substantive laws of another jurisdiction. Each of the Parties consents to the exclusive jurisdiction of the Federal courts whose districts encompass any part of the State of New York in connection with any dispute arising under this Agreement and hereby waives, to the maximum extent permitted by law, any objection, including any objection based on forum non conveniens, to the bringing of any such proceeding in such jurisdictions. Each Party waives its right to a trial by jury. Each Party to this Agreement irrevocably consents to the service of process in any such proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, to such Party at its address set forth herein. Nothing herein shall affect the right of any Party to serve process in any other manner permitted by law.
   	 
	5
	 
 
	 

  
 7. Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by hand delivery, express overnight courier, registered first class mail, or telecopier (provided that any notice sent by telecopier shall be confirmed by other means pursuant to this Section 7), initially to the address set forth below, and thereafter at such other address, notice of which is given in accordance with the provisions of this Section.
  
  	  
	 (a)
	 if to the Company:
	  

	  
	  
	 Sunset IS Group Inc.
	  

	  
	  
	  
	  

	  
	  
	 ________________________________
	  

	  
	  
	  
	  

	  
	  
	 ________________________________
	  

	  
	  
	  
	  

	  
	  
	 Attention: Valerie Baugher
	  

	  
	  
	  
	  

	  
	  
	 Chief Executive Officer
	  

	  
	  
	  
	  

	  
	 (b)
	 if to the Company
	  

	  
	  
	c/o _____________________________	  

	  
	  
	  
	  

	  
	  
	 ________________________________
	  

	  
	  
	  
	  

	  
	  
	 ________________________________
	  

	  
	  
	  
	  

	  
	 (c)
	 with a copy that shall not constitute notice to:
	  

	  
	  
	 Robinson Brog Leinwand Greene Genevose & Gluck P.C. 875
	  

	  
	  
	 Third Avenue, Floor 9
	  

	  
	  
	 New York, New York 10022
	  

	  
	  
	 Attn: Stephanie Salvatore, Esq.
	  

  
 All such notices and communications shall be deemed to have been duly given: when delivered by hand, if personally delivered; when receipt is acknowledged, if telecopied; or when actually received or refused if sent by other means.
  
 8. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties with respect to the subject matter hereof and supersedes all prior and/or contemporaneous oral or written proposals or agreements relating thereto all of which are merged herein. This Agreement may not be amended or any provision hereof waived in whole or in part, except by a written amendment signed by both of the Parties.
  
 9. Counterparts. This Agreement may be executed by facsimile signature and in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
  
 [SIGNATURE PAGE FOLLOWS]
  
  	 
	6
	 
 
	 

  
 IN WITNESS WHEREOF, this Agreement was duly executed on the date first written above.
   	 	 Sunset IS Group Inc.
	
	 	 	 	 
	 	By:	/s/ Valerie Baugher	
	  
	 Name:
	Valerie Baugher	 
	 	Title:	Chief Executive Officer	 
	 	 	 	 
	  
	 Job Growing Inc.
	  

	  
	  
	  
	  

	  
	 By:
	 /s/ Michael Woloshin
	  

	  
	 Name:
	 Michael Woloshin
	  

	  
	 Title:
	 Chief Executive Officer
	  

  
  	 
	7
	 
 
	 

  
 Exhibit A
  
 CERTIFICATE OF DESIGNATION, PREFERENCES AND RIGHTS
  
 of
  
 SERIES C PREFERRED STOCK
  
 of
  
 SUNSET ISLAND GROUP, INC.
  
 Sunset Island Group, Inc. a corporation organized and existing under the laws of the State of Colorado (the “Corporation”), hereby certifies that the Board of Directors of the Corporation (the “Board of Directors” or the “Board”), pursuant to authority of the Board of Directors, and in accordance with the provisions of its Certificate of Incorporation and Bylaws, each as amended and restated through the date hereof, has and hereby authorizes a series of the Corporation’s previously authorized Preferred Stock, par value $0.0001 per share (the “Series C Preferred Stock”), and hereby states the designation and number of shares, and fixes the relative rights, preferences, privileges, powers and restrictions thereof, as follows:
  
 I. DESIGNATION AND AMOUNT
  
 Designation. The designation of this series, which consists of 500,000 shares of Series C Convertible Preferred Stock, is the Series C Preferred Stock (the “Series C Preferred Stock”) and the face amount shall be $0.0001 per share (the “Face Amount”).
  
 II. RANK
  
 All shares of the Series C Preferred Stock shall rank (i) senior to the Corporation’s Common Stock and any other class or series of capital stock of the Corporation hereafter created, (ii) pari passu with any class or series of capital stock of the Corporation hereafter created and specifically ranking, by its terms, on par with the Series C Preferred Stock and (iii) junior to any class or series of capital stock of the Corporation hereafter created specifically ranking, by its terms, senior to the Series C Preferred Stock, in each case as to distribution of assets upon liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary.
  
 III. LIQUIDATION PREFERENCE
  
 The Series C Preferred shall have no liquidation preference over any other class of stock.
   	 
	8
	 
 
	 

  
 IV. VOTING RIGHTS
  
 Series C Preferred Stock shall not have voting rights.
  
 V. DIVIDEND RIGHTS
  
 In the event that any cash dividend on the Common Stock is declared by the Board, the Board shall simultaneously declare a dividend for each share of Series C Preferred Stock in an amount equal to the product of (i) the per share dividend declared and to be paid in respect of each share of Common Stock and (ii) the amount of common stock the Series C Preferred Stock is convertible into under Section VI in effect at the close of business on the date immediately prior to the record date for such dividend, with such dividend to be payable on the same payment date established by the Board for the payment of such dividend to the holders of Common Stock. The record date for any such dividend shall be the record date for the applicable dividend on the Common Stock, and any such dividend shall be payable with respect to each share of Series C Preferred Stock to the Holder to whom such share is registered, as reflected on the stock register of the Corporation, at the close of business on the applicable record date.
  
 VI. CONVERISON RIGHTS
  
 Each holder of shares of Series C Preferred Stock may, at any time and from time to time, convert (an “Optional Conversion”) each of its shares of Series C Preferred Stock into fully paid and nonassessable shares of Common Stock at a rate equal to 1 Series C share for 10 shares of the Common Stock.
  
 In no event shall any Holder of Series C Preferred Stock be entitled to convert any portion of the Series C Preferred Stock that would result in beneficial ownership by the Holder and its affiliates of more than Nine Point Nine Nine Percent (9.99%) of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso.
  
 VII. AMENDEMENTS
  
 The Certificate of Incorporation of the Company or this designation shall not be further amended in any manner which would materially alter or change the powers, preferences or special rights of the Series C Preferred Stock so as to affect them adversely without the affirmative vote of the holders of a majority or more of the outstanding shares of the Series C Preferred Stock voting separately as a class.
  
 IN WITNESS WHEREOF, this Certificate of Designation is executed on behalf of the Corporation this 19th Day of November 2018.
  
 		 Sunset Island Group, Inc.
	  

	  
		  
	  

	  
	 By:
	 /s/ Valerie Baugher
	  

	  
	Name:	 Valerie Baugher
	  

	  
	Title:	 Director
	  

   	 
	9

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