UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): November 15, 2018

 

REGEN BIOPHARMA, INC.

(Exact name of small business issuer as specified in its charter)

 

Nevada 45-5192997
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)

 

Commission File No. 333-191725

 

4700 Spring Street, St 304, La Mesa, California 91942

(Address of Principal Executive Offices)

 

(619) 702 1404

(Issuer’s telephone number)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Item 1.01 Entry into a Material Definitive Agreement

 

On November 15, 2018 David Koos ( the Chairman and CEO of Regen BioPharma, Inc.) , Regen BioPharma Inc., Bostonia Partners Inc., Sherman Family Trust, Dunhill Ross Partners Inc. and Bio-Technology Partners Business Trust collectively entered into an agreement to sell an aggregate of 23,733,334 shares of common stock, 667 shares of Series AA preferred stock, 534 shares of Series AAA Preferred Stock and 1,001,533 shares of Non-Voting Convertible Preferred Stock of Entest Group, Inc. to an unaffiliated third party (“Agreement”).

Of that aggregate, 8,000,000 shares of the common stock and 185,852 of the Non-Voting Convertible Preferred Stock of Entest Group, Inc. are being sold by Regen BioPharma, Inc. proceeds from the sale to be received by Regen Biopharma, Inc. are:

$48,000 from the sale of 8,000,000 shares of the common stock

$1,858.52 from the sale of the Non-Voting Convertible Preferred Stock

The foregoing description of the Agreement is not complete and is qualified in its entirety by reference to the text of the Agreement , which is attached to this Current Report on Form 8-K as Exhibit 10.1 and incorporated in this Item 1.01 by reference.

Entest Group, Inc.  and Regen Biopharma, Inc.  (“RGBP”)  agreed to satisfy any and all unpaid interest resulting from accrued interest earned on  Notes Payable to RGBP by  Entest  from the beginning of time to November 30, 2018 by transferring to RGBP 250,000  shares  of the Series M Preferred stock of Zander Therapeutics, Inc. owned by Entest.

 

Entest Group, Inc.  and Regen Biopharma, Inc.  (“RGBP”)  agreed to satisfy any and all rent prepaid by RGBP to   Entest  from the beginning of time to November 30, 2018 by transferring to RGBP 475,000  shares  of the Series M Preferred stock of Zander Therapeutics, Inc. owned by Entest.

 

David R. Koos serves as Chairman and Chief Executive Officer of Entest Group, Inc., Zander Therapeutics, Inc. and Regen Biopharma, Inc. Todd Caven serves as Chief Financial Officer of Regen Biopharma, Inc. and also serves as Chief Financial Officer and Director of Zander Therapeutics, Inc. Harry Lander serves as President and Chief Scientific Officer of Regen Biopharma, Inc. and also serves as President, Director and Chief Scientific Officer of Zander Therapeutics, Inc.

Item 1.02 Termination of a Material Definitive Agreement

On November 16, 2018 Regen Biopharma Inc. and Entest Group, Inc. agreed to terminate Regen’s sublease of office space with Entest Group, Inc. effective the rental period commencing November, 2018.

Item 2.03 Creation of a Direct Financial Obligation

On November 16, 2018 Regen Biopharma, Inc. entered into a sublease agreement with BST Partners (“BST”) whereby Regen Biopharma, Inc. would sublet office space located at 4700 Spring Street, Suite 304, La Mesa, California 91942 from BST on a month to month basis for $5,000 per month beginning November 1, 2018.

BST is controlled by David Koos, Regen Biopharma, Inc.’s Chairman and Chief Executive Officer.

Item 9.01 Exhibits .

Exhibit No.   Description of Exhibit
10.1   AGREEMENT.
10.2   Sublease Agreement

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SIGNATURE

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  REGEN BIOPHARMA, INC.
   
Dated: November 19, 2018 By:  /s/ David Koos
  David Koos
  Chief Executive Officer

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Exhibit 10.1

 

S TO C K P U R C HA SE A G R EEMEN T

 

 

This S TO C K P U R C HA S E A G R E EMEN T ( t h e A g r e e m e n t ) is made and entered into as o f November 15 , 2018 , by and between Peiwen Yu, with its offices located at No. 911 Bao'an Book City XInqiao Street Central Road, Bao'an District, Shenzhen City, China ( t h e P u r c h as e r ), and David Koos, Regen BioPharma Inc., Bostonia Partners Inc., Sherman Family Trust, Dunhill Ross Partners Inc. and Bio-Technology Partners Business Trust (each, a “ Seller ” and collectively, the “ Sellers ”) with David Koos as Sellers Representative, whose office is located at 4700 Spring Street, Suite 304, La Mesa, California, 91942, a controlling share ho l d e r as well as Chief Executive Officer, Chief Financial Officer and the sole director o f Entest Group, Inc., a Nevada corporation ( t h e Company ) .

 

W I T N E S S E T H :

 

W H E R E A S , the Sellers are the record and beneficial owners of an aggregate of 23,733,334 shares of common stock, par value $0.001 per share (the “ Common Stock ”), 667 shares of Series AA preferred stock, 534 shares of Series AAA Preferred Stock and 1,001,533 shares of Non-Voting Convertible Preferred Stock, of the Company, which represent 50.3% of the issued and outstanding shares and currently 94% of the voting power of the Company or 93% of issued and outstanding shares if non-voting preferred were converted into common on November 15, 2018 and 99% of the voting power of the Company .

 

W H E R E A S , the Sellers d esi r e t o se l l to the Purchaser, a n d the P u r c h aser d esi r es to pu r c h a s e from the Seller, t h e Shares pu r s u a n t to the terms of t h is A g r ee m e n t.

 

N O W , T HE R E F O R E , I T I S A G R E E D : A R T I C L E I

 

SALE OF THE SHARES

 

Se c t i o n 1 . 1 S a l e o f the Shares . S u b j e ct t o t h e t er m s a n d c o n d it i o n s h e r e i n st a t e d , and in reliance upon the representations, warranties, covenants and agreements contained in this Agreement, the Sellers a g r e e to sell, ass i g n , t r a n s f e r , a n d d el i v e r to the Purchaser on t h e Cl o sing D a t e , a n d the P ur c h aser a g r e es t o pur c h ase from the Sellers o n t h e Cl o s i n g D a t e , a l l o f t h e S h a r es. T he c e r t i f i c at e s r e p r es e n t i n g t h e Shares s h a l l b e d u l y e n do r sed and assigned to the Purchaser ( t h e S al e ) , w i th e a ch e n do r se m e n t acc o m p a n i ed by a M e d al l i o n s i gnat u r e g u a r a n t e e.

 

Se c t i o n 1 . 2 P r i c e . O n t h e Cl o si n g D a t e , P u r c h a ser s h all p a y to S eller t h e a m o u n t o f $325,000 (Three Hundred Twenty-Five Thousand Dollars ) ( t h e P u r c h a s e P r i c e ”), $25,000 of which shall be continue to be held in the escrow account subsequent to the Closing (as defined herein) pursuant to the terms and conditions set forth in Section 7.3 hereof . Th e P u r c h as e r a n d the S e l l e rs a c k n o w l e d g e t h a t t h e P u r c h a s e P r i c e w ill b e d e l i v e r e d to McMurdo Law Group, LLC, as escrow agent ( Escrow Agent ) in accordance with the escrow agreement dated October 3, 2018 by and among the Sellers, Purchaser and Escrow Agent . T h e S e l l e rs h a ve d eli v e r ed t h e Shares t o the Escrow Agent, du l y e ndor s e d f o r t r a n s f e r to P u r c h as e r o r h i s d e sig n e es. The Escrow Agent s h all ho ld the Purchase Price u po n c o n f i r m at i o n to P u r c h a s e r t h at t h e c l o si n g d o c u m e n ts h a v e b e en r e c e i v ed. U po n w r i tten i n s t r u c t i o n fr o m P u r c h as e r , the Escrow Agent s h a l l d is b u r se t h e f und s h eld in esc r o w to the S e ll ers in accordance with the Escrow Agreement in accordance with Section 3 of that Escrow Agreement entered into by and between the Purchaser, the Seller, and McMurdo Law Group, LLC on October 3, 2018 as amended November 15, 2018 (“Escrow Agreement”).

 

Se c t i o n 1 . 3 Cl o si n g .

 

(a) T h e cl o s i n g o f t h e Sale r e f e r r ed to in S e ct i o n 1 . 1 ( t h e C l o s i n g ) s h a l l t a k e p l a c e o n at such date, time and place as shall be determined by the Purchaser and the Sellers . S u ch closing d a t e is h e r e i n r e f e rr ed to as t h e Cl o si n g D at e.

 

(b) At the Closing Documents ( as such term is defined in the Escrow Agreement) shall be delivered to the Purchaser and the Purchase Price shall be delivered to the Seller pursuant to the terms and conditions of the Escrow Agreement.

(c) At and at any time after the Closing, the parties shall duly execute, acknowledge and deliver all such further assignments, conveyances, instruments and documents, and shall take such other action consistent with the terms of this Agreement to carry out the transactions contemplated by this Agreement.

 

(d) All representations, covenants and warranties of the Purchaser and each Seller contained in this Agreement shall be true and correct on and as of the Closing Date with the same effect as though the same had been made on and as of such date.

 

Se c t i o n 1 . 4 T a x e s . A l l sal e s, t r a n s f e r , i n c om e, o r g ain t a x es a p p l i c a b le t o t h e sale o f t h e Shares by the S e l l e rs as c o n t e m p l a t e d by t h is A g r e e m e n t s h a l l b e p a i d b y the Se l l ers .

 

A R T I C L E I I

 

R E PR E S EN T A T I O N S O F S E LLE R

 

Each Sell e r r e p r ese n ts a n d w a rr a n ts t h a t :

 

Se c t i o n 2 . 1 Ow n e r s h i p o f the Shares . Such S eller i s t h e l a wf u l o w n er o f t h e S h a r es, f r ee a n d cl e ar o f all s e c u r ity i n t e r es t s , lie n s, e n c u m br a n c es, e qu it i e s a n d o t h er c h a r g e s. Such Seller f u r t h er r e p r e s e n ts t h at he or it d o es n o t b e n e f i c i a lly o w n a n y o p t i o n s o r w a rr a n ts o r o t h e r r i g h t s to p u r c h a s e securities of the Company. Th e r e a r e n o o u t st a n d i n g o r a u t h o r i z ed o p t i o n s, w a r r a n t s , r i g h ts, c al l s, c o mm i t m e n t s, c onv e r si o n r ig h ts, r i g h ts o f e x c h a n g e o r o t h er a gr e e m e n ts o f a n y c h a r ac t e r , c o n t i n ge n t o r o t h e r w ise, p r o v i d i n g f o r t h e pu r c h a s e, i ss u a n ce o r sale o f a n y o f t h e S h a r es, o r a n y a rr a n g e m e n t s t h at r e qu i r e o r p e r m it any o f t h e S h a r es t o b e v o t e d b y o r at t h e d is c r eti o n o f a n y o n e o t h er t h an t h e Se l l ers , a n d t h e r e a r e n o r est r i c t i o n s o f a ny k i n d o n t h e t r a n s f er o f a n y o f t h e S h a r es o t h er t h an ( a ) r es t r i c t i o n s o n t r a n s f e r i m po sed b y t h e Sec u r i ties A ct o f 19 3 3 , a s a m e nd e d (t h e Sec u r iti e s A ct ) a n d ( b ) r e s t r i c ti on s o n t r a n s f er i m p o s ed b y a p p l i c a b le st a te sec u r iti e s o r b l u e s k y” l a w s. T h e d e l i v ery by s u c h S eller t o P u r c h as e r o f t h e S hares p u r s u a n t to t h e p r o v is i on s o f t h is A gr e e m e n t w ill t r a n s f e r to P u r c h aser v a l id ti t le t h ere t o , f r ee a n d cl e ar o f a ny a n d all E n c u m b r a n c e s. The Shares being transferred hereby have been validly issued, fully paid and are non-assessable. T h e Shares have n o t b e en r e g i st er ed with the Securities and Exchange Commission (“ SEC ”) and are being sold to the Sellers in transactions exempt from registration.

 

Se c t i o n 2 . 2 A u t h o r i z a t i o n and Validity of Agreement . Each Seller has full power and a u t h o r i t y t o e x e c u te a n d d e l i v e r t h i s A g r ee m e n t , to p e rf or m his ob l i g ati on s h e r e u n d e r , a n d to c o n s um m ate t h e t r a n s a c ti o n s c o n t em p l at e d h e r e b y . T h is A g r e e m e n t h as b e en d u l y e x e c u t e d a n d d eli v e r e d b y each S el l er a nd , assu m i n g t h e du e e x ec u t i o n o f t h is A g r e e m e n t b y P u r c h a s e r , is a v alid a n d b i nd i n g ob l i gati o n o f each Seller, enforceable against such Seller in accordance with its terms, except to the extent that its enforceability may be subject to applicable bankruptcy, insolvency, reorganization, and similar laws affecting t h e e nf o r c e m e n t o f c r e d i t o r s ' r i g h ts g e n e r al l y a n d to g e n e r al e qu ita b le pr i n c i p l e s. None of the Sellers is no t a p a r t y to a n y a g r ee m e n t, w r it t e n o r or al, c r e at i n g r i g h ts i n r e s p ect o f a n y o f the S h a r e s in a n y t h i r d p a r t y or r e l ati n g to t h e v o ti n g o f t h e S h a r es.

 

Se c t i o n 2 . 3 N o B r o k e r s . N o b r o k e r a g e o r f i n d e r ' s f e e s o r c o m m issi on s a r e o r w ill b e p ay a b le b y t h e Company to a n y b r o k e r , f i n a n ci a l a d v is o r o r c on s u l t a n t, f i n d e r , p l a c e m e n t a g e n t , i nv e s t m e n t b a n k e r , b a n k o r o t h er P e r s o n w i th r es p ect to t h e t r a n sact i o n s c o n t e m p l a t e d b y t h is A g r e e me n t, a n d t h e C o m p a n y h a s no t t a k en a n y a cti o n t h a t w o u ld c a u se P u r c h a s er to b e l i a b le f o r a n y s u ch f e e s o r c omm iss i o n s. Each Sel l e r a g r e es t h at P u r c h a ser s h all h a v e n o o b li g a t i o n w i th r e s p ect t o a n y f ees o r w ith r es p ect to a n y c l ai m s m a d e b y o r o n b e h alf o f a n y P e r s on , f o r f ees o f t h e ty p e c on t e mp lat e d b y t h i s S ecti o n a n d each S el le r s h all i n d e m n i f y a n d h o ld the P u r c h as e r a n d t h e C o m p a n y h a r m l e ss f ro m any f e e s, c o sts o r lia b ili t i e s o f a n y k i n d i n c u r r ed b y the P u r c h as e r in c o n n ecti o n t h e r e w ith.

 

Se c t i o n 2 . 4 A cc u r a c y o f I n f o r m at i o n . None o f t h e r e p r e s e n t a t i o n s a n d w a r r a n ties o f any S e l l e r c o n t a i n ed h e r ei n , o r in t h e d o c u m e n ts f u r n is h ed b y t h e m p u r s u a n t h e r et o , c o n t a i n s a n y m at e r i a l m isst a t e m e n t o f f act o r o m its to st a te any m a te r i a l f act n eces s a r y to m a k e t h e s t a t e m e n ts h e r e i n o r t h e r ein in l i g h t o f t h e c i r c u m st a n ces in w h i c h t h e y w e r e m a d e no t m i s l e a d i n g .

 

Section 2.5 No restriction on the Sale . There is no restriction or limitation on the execution and delivery of this Agreement and the consummation or performance of the transactions contemplated hereby and thereby.

 

Section 2.6 No Other Securities . None of the Sellers owns or controls , directly or indirectly, any securities of the Company other than the Shares.

A R T I C L E I I I

R E P R E S E NT A T IO N S O F S EL L E RS A S A D I R E C T O R AND OFFICER OF THE COMPANY OR ENTITIES AFFILIATED THEREOF

 

Each Seller represents and warrants to the Buyer, as of the date of execution of this Agreement and the Closing Date, as follows:

 

Se c t i o n 3 . 1 E x is t e n ce and Good Standing . Th e C om p a n y is a c o r p o r a t i o n d u l y or ga n i z e d , v a l i d l y e x is t i n g, a n d in g oo d st a n d i n g u nd e r t h e l a w s o f t h e St a te o f Nevada a n d h as a l l r e q u is i te c o r po r a t e p o w er a n d a u t h o r i t y to o w n , l e a se, a n d o p e r ate its p r op e r ties a n d to ca r ry o n its bu si n e ss as no w b ei n g c o nd u c t e d .

 

Se c t i o n 3 . 2 Ca p ital S t o c k .

 

( a ) T h e C o m p a n y h a s an a u t h o r i z e d ca p i t a li z ati o n c o n sist i n g o f 505 , 00 0 , 0 00 , p ar v al u e o f $0 . 0 00 1 p e r s h a r e , of which 500,000,000 shares are C o m m o n St o c k and 5,000,000 shares are preferred stock (the “ Preferred Stock ”). As of the date hereof, [49,170,472] shares of Common Stock, [634] shares of Series AA Preferred Stock, [728,073] shares of Series B Preferred Stock, [534] shares of Series AAA Preferred Stock and [1,001,533] shares of Non-Voting Convertible Preferred Stock a r e iss u e d a n d o u t st a n d ing. A ll the o u ts t a nd ing s h a r es of Common Stock and Preferred Stock h a v e b een d u ly a u t h o r i z ed a n d v ali d l y i ss u ed a n d a r e f u l l y p aid a n d n o n- assess a b l e . A ll o f t h e i ss u ed a n d ou tst a n d ing s h a r e s o f c a pital st o ck o f t h e C om pany ha v e b een o f f e r e d , iss u ed a n d s o l d by t h e C o mp a n y in c o m p l i a n ce w i th all a pp li c a b l e f e d e r al a n d s t ate secu r iti e s l aw s. N o sec u r iti e s o f t h e C o mp a ny a r e e n t i tled to p r e e mp ti v e o r si m ilar r ig h ts, a n d n o p e r s o n o r e n tity has a n y r i g h t o f f i r st r e f u sal, p r ee m p ti v e r ig h t, r ig h t o f p a r ticipati o n , o r any s i m il a r r i g h t to p a r tici p ate in t h e t r a n sacti o n s c o n t e m p l a t e d h e r e b y. E xc e p t as a r es u lt o f t h e pu r c h ase a n d s a l e o f t h e S h a r es, t h e r e a r e n o ou tst a n d ing o p t i o n s, w a rr a n ts, sc r i p t r i g h ts to s ub s c r i b e t o , c a l ls o r c om m i t m e n t s o f a n y c h a r a ct e r w hats o e v er r e l a t ing t o , o r se c u r i t i e s, r i g h ts o r ob l i g ati on s c o n v e r t i b le i n to o r e x c h a n g e a b l e f o r , o r g i v ing a n y Pe r s o n any r i g h t to s u b sc r i b e f o r o r ac qu i r e, any s h a r es o f C om mo n S t o c k , o r c on t r acts, c om m it m e n t s, un d e r st a nd i n g s o r a r r an g e m e n ts by w h i ch t h e C o m p any i s o r m ay b eco m e b ou n d to i ss u e a d d i ti o n al s h a r es o f Co m mo n S t o c k , o r s e c u r i ties o r r i g h t s c o nv e r t i b le o r e xc h an g ea b le i n to s h a r es o f C o m m o n S t o c k . T he iss u a n c e a n d sale o f t h e S h a r es w i l l n o t o b li g ate t h e C o m p any to iss u e s h a r e s o f C o m m o n S t o c k o r o t h er s e c u r it i e s t o a n y P e r s o n ( o t h e r t h a n t h e P u r c hase r ) a n d s h all n o t r es u l t in a r i g h t o f a n y ho l d e r of C o mp a n y s e c u r i ties to a d j u s t t h e exe r cise, c o n ve r si on , ex c h ange o r r e set p r i c e u n d er s u ch sec u r it i e s .

 

( b ) T h e r e a r e n o o u tst a nd i n g o b l i g at i o n s, c o n ti n g e n t o r o t h e rw ise, o f t h e C o m p a n y to r e d e e m , pur c h ase o r o t h e r w ise a c q u i r e a n y ca p i t a l s t o c k o r o t h er s e c u r i ties o f t h e C om p a n y .

 

( c ) T h e r e a r e n o s h a r e h o l d er a g r e e m e n ts, v o t i n g t r u sts o r o t h er a g r e e m e n ts o r un d e r st a nd i n g s t o w h i c h t h e C o m p a ny o r any of the S el le rs is a p a r t y o r by w h i c h ei t h er o f t h em a r e bo u n d r el a ti n g to t h e vo t i n g o f a n y s h a r es o f t h e c a p ital st o ck o f t h e C o m p a n y .

 

( d ) T h e S h a r e s have been duly authorized for iss u a n ce, w h en d eli v e r ed i n acc o r d a n ce w i th t h e t e r m s o f t h is A g r ee m e n t, a n d s h a l l b e v al i d ly i ss u e d , f u l l y p aid a n d no n - assessa b l e a n d t h e t r a n s f e r o f said S h a r es s h all n o t b e s ub j e ct to a n y p r e e mp t i v e o r o t h er si m i l ar r i g h t.

 

Section 3.3 Subsidiaries . Entest Biomedical, Inc., a wholly owned subsidiary of the Company. Entest Biomedical, Inc. is a corporation duly organized, validly existing, and in good standing under the laws of the State of California and has all requisite corporate power and authority to own, lease, and operate its properties and to carry on its business as now being conducted. Other than set forth herein, the Company does not currently own equity interest in any entity.

 

Se c t i o n 3 . 4 B oo k s a n d Rec or d s . Th e C o mp a n y ' s b o o k s a n d rec o r d s, f i n a n cial a n d o t h e r wise, are in all m a t e r ial r es p ects c o m p lete a n d c o rr e ct a n d a r e i n t h e o ff i ces o f the Sellers.

 

Se c t i o n 3 . 5 L i t i g ati o n . T h e r e a r e n o ( a) a ct i o n s, s u its, o r l e g a l , e q u i t a b l e , a r b i t r ati v e, o r a dm i n is t r ati v e p r o ce e d i n g s p e nd i n g , o r t o t h e k n o w l e d g e o f t h e Sellers, t h r e at e n e d a g a i n st t h e C o m p a n y , o r ( b ) j u d g m e n ts, i n j un cti o n s, wr its, r u l i n g s , o r o r d e r s b y a n y go v e r nm e n t a l p e r s o n a g a i n st t h e C o m p a n y . N ei t h er t h e C o mp an y , no r any o ff i c e r , k e y e mp l o y e e or 5 % st o c k ho l d er o f t h e C o m p any in h i s, h er o r i t s ca p acity as s u c h , is in d e f a u lt w ith r es p e ct to a n y o r d e r , wr it , i n j u n cti on , d e c r ee, r u li n g o r d ecisi o n o f a n y c our t, c om m issi on , b o a r d o r a n y o t h er g o v e r nm e n t a g e n c y . T h e S E C h as n o t iss u ed a n y st o p o r d er o r o t h er o r d er s u s p e n d i n g t h e e f f ecti v e n ess o f a n y r e g ist r at i o n st a t e m e n t f i l e d b y t h e C om p a n y u n d er t h e Securities Exchange Act of 1934, as amended (the “ E x c h a n g e A ct ”) o r t h e S ec u r i ties A ct.

 

Se c t i o n 3 . 6 T a x e s . T h e r e a r e n o l i e n s f o r t a x e s u po n t h e ass e t s o f t h e C o mp a n y or any of its subsidiaries e x ce p t f o r st a t u t o r y l i e n s f o r c u rr e n t t a x es n o t yet d u e a n d p a y a b le o r w h i ch m a y t h e r e a f t e r b e p aid w i t h ou t p e n al t y o r a r e b e i n g c on t e st e d in go o d f a i t h . Neither the Company nor any of its subsidiaries has received any notice of a u d i t, i s n o t u n d e r g o i n g a n y a ud it o f its t a x r e t u r n s, o r h as r e cei v ed a n y n o t i c e o f d e f i ci e n c y o r assess m e n t f r o m a n y t a x i n g a u t ho r it y w ith r es p ect to l i a b i l i t y f o r t a x es w h i c h h as n o t b e en f u l l y p aid o r f i n ally set t l e d . Th e r e h a v e b e en n o w a i v e r s o f st a t u t e s o f l i m i t ati o n s b y t h e C om p a n y w i t h r e s p ect to a n y t ax r et u r n s. T h e C om p a n y h a s n o t f iled a r e q u est w i th t h e I n t e r n al R e v e nu e S e r v i c e f o r c h a n g es in a c c o u n ti n g m et h o d s w i t h in t h e l a st t h r ee ye a r s w h i c h c h a n ge w o u ld a f f ect t h e a c c o u n t i n g fo r t a x pu r p o ses, d i r e ct l y o r i n di r ectly, o f i t s b u si n ess. Th e C om p a n y h as no t e x ec u t e d an e x t e n s i o n o r w ai v er o f a n y st a t u te o f l i m itat i o n s o n t h e asse s s m e n t o r c o l l ec t i o n o f a n y t a x es d u e ( e x c l u d i n g s u ch st a t u t e s t h at r e l a t e to y e a r s c u rr e n tly und er e x a m i n at i o n b y t h e I n t e r n al Re v e n u e S e r v i c e o r o t h er a pp li c a b l e t a x i n g a u t ho r iti e s) t h a t is c u r r e n t l y in e ff ect.

 

Se c t i o n 3 . 7 A cc u r a c y o f I n f o r m at i o n . N on e o f t h e r e p r e s e n t a t i o n s a n d w a r r a n ties o f t h e Sellers as an officer, director and stockholder of the Company c on t ai n ed h e r e i n , o r i n t h e d o c um e n t s f u r n is h ed b y him p u r s u a n t h e r et o , c o n t a i n s any m a t e r i a l m isst a t e m e n t o f f act o r o m i ts to st a te a n y m at er i a l f a c t n e c essa r y to m a ke t h e st a t e m e n ts h e r ein o r t h e r ein in l i g h t o f t h e ci r c u ms t a n c es in w h i c h t h ey w e r e m a d e no t m isl e a d i n g.

 

Se c t i o n 3 . 8 D iscl o s u r e . Each Sellers c on f i r m s t h at n e i t h e r h e n o r a n y o t h er P e r s o n act i n g o n h is be h alf h as p r o v i d ed t h e P u r c h aser o r i t s a g e n ts o r c ou n sel w i t h any i n f o r m ati o n t h at c on stitut e s o r m i g h t co n st i t u t e m a t e r i a l, no n pu b l ic i n f or m at i o n c o n c e r n ing t h e C o m p a n y. Each Seller und e r st a n d s and c o n f i r m s t h a t t h e P u r c h aser w ill r ely o n t h e f o r e g o ing r e p r e se n t a ti o ns in e f f ecting t r a n sacti o ns in sec u r i ties o f t h e Co mp a n y. A ll d i scl o s u r e p r o v i d ed to t h e P u r chaser r e g a r d ing t h e Co m p a n y , i ts b u s i n ess a n d t h e t r ans a c t i o n s c on t e mp l a t e d h e r e b y, f u r n is h ed b y o r o n b e h a l f o f each Seller w ith r es p e c t to t h e r e p r e se n t a ti on s a n d w a r r a n ties m a d e he r ein a r e t r ue a n d c or r ect w ith r es p e ct to s u ch r e pr e sent a ti on s a n d w a r r a n ties a n d d o no t c o n t a in any u n t r u e st a t e m e n t o f a m at er i a l f a ct o r o m it to st a te any m at er i al f act n e c ess a ry in o r d e r to m a k e t h e st a t e m e n t s m ade t h e r e i n , i n lig h t o f the ci r c u m st a n c es u n der w h i c h t h e y w e r e m a d e, n o t m i s l e a d in g . Each Seller a c k no w l e d g es a n d a g r e es t h at t h e P u r chas e r has n o t m a d e, n o r is t h e P u r c h a ser m a k ing, a n y r e p r ese n t a ti o n s o r w a r r a n ties w ith r es p e ct to t h e tr a n sacti on s c o n t e m p l a t ed h e r e b y o t h er t h a n t h o se s p e c i f i c al l y set f o r t h h e r ei n .

 

Se c t i o n 3 . 9 N o D is a g r ee m e n ts w i t h A c c ou n t a n ts a n d L aw y e r s. T h e r e a r e n o d is a g r e e m e n ts o f a n y k i n d p r es e n t l y e x ist i n g , o r r e a s on a b ly a n tic i p at e d b y t h e C o m p a n y to a r ise, b et w een t h e a c c ou n t a n ts a n d l a w y e r s f o r m e r l y o r p r es e n tly e m p l o y ed b y t h e C om p a n y . T h e C o m p a n y does not owe any fees to its a cc o u n t a n ts a n d l aw y e r s.

 

Se c t i o n 3 . 1 0 N o C on f lict s . T h e e x e c u t i o n , d el i v e r y a n d p e rf or m a n ce o f t h i s A g r ee m e n t a n d t h e t r a n sac t i o n s c on t e m p l a t e d h e r e b y d o n o t a n d w i ll n o t : ( i) c on f lict w i th o r v i o l a te a n y p r o v is i o n o f t h e C om p a n y s Ar ticl e s o f I n c o r p or ati on , B y -l a w s o r o t h er or g a n i z ati on al o r c h a r t er d o c um e n ts, o r ( i i ) c o n f lict w i t h , o r c o n st i t u t e a d e f a u lt ( o r an e v e n t t h at w i t h no tice o r l a p se o f ti m e o r bo th w o u ld b e c o m e a d e f a u l t ) u n d e r , o r g i v e to o t h e r s a n y r i g h ts o f t er m i n ati on , a m e nd m e n t, accel e r ati o n o r c a n ce l l a t i o n (w i th o r w it ho u t no t i c e , l a p se o f ti m e o r b o t h ) o f a n y a g r e e m e n t , c r e d it f a ci l i t y , d e b t o r o t h er i n s t r u m e n t ( e v i d e n c i n g a C o mp a n y d e b t o r o t h e r w ise) o r o t h er u nd e r st a n d i n g to w h i c h t h e C om p a n y i s a p a r ty o r b y w h i c h a n y p r o p e r t y o r asset o f t h e C o m p a n y i s bo u n d o r a f f e c t e d o r ( i i i) r es u l t i n a v i o l a ti o n o f a n y l aw , r u l e , r e gu l a t i o n , o r d e r , j ud g m e n t , i n j u n c t i o n , d ec r ee o r o t h er r e s t r i c ti o n o f a n y c o u r t o r g ov e r n m e n t a l a u t h o r ity to w h i ch t h e C om p a n y is s u b j e ct ( i n cl u d i n g f e d e r al a n d st a te sec u r it i e s l aw s a n d r e gu l a t i o n s ) , o r b y w h i c h a n y p r o p e r ty o r asset o f t h e C o mp a n y is bo u n d o r a ff e ct e d .

 

Se c t i o n 3 . 1 1 F ili n g s, C o n se n ts a n d A p p r ov a l s . N e i t h e r t h e Sellers n o r t h e C o m p a n y is r e q u i r ed to o b t a i n a n y c on s e n t, w a i v e r , a u t h o r i z at i o n o r o r d er o f , g i v e a n y n o tice t o , o r m a k e a n y f i li n g o r r e g i st r ati o n w i t h , a n y c ou r t o r o t h er f e d e r al, st a t e , l o cal o r o t h er go v e r nm e n t a l a u t ho r ity o r other Person in connection with the execution, delivery and performance of this Agreement.

 

Se c t i o n 3 . 1 2 C o m p lia n c e . T h e C o m p a n y : ( i) is no t in d e f a u lt u nd er o r in v i o l a t i o n o f ( a n d n o e v e n t h as o cc urr ed t h at h as no t b een w a i v ed t h at, w ith no ti c e o r l a p se o f t i m e o r bo t h , w o u l d r es u lt i n a d e f a u l t b y t h e C o m p a n y u n d e r) , no r h as t h e C o m p a n y r e c ei v e d n o t i c e o f a cl a im t h at it is in d e f a u lt un d er o r t h a t it is i n v i o l a t i o n o f , a n y i n d e n t u r e , l o an o r c r e d i t a g r ee m e n t o r any o t h er a g r ee m e n t o r i n s t r um e n t t o w h i c h it is a p a r t y o r b y w h i ch it o r any o f its p r op e r ti e s is b ou n d (w h et h er o r n o t s u c h d e f a u l t o r v i o l a t i o n h as b e en w ai v e d ) , ( i i) i s n o t in v i o l a ti o n o f a n y o r d er o f a ny c o u r t, a r b it r at o r o r g o v e r n m e n t a l b od y a n d ( i i i) is n o t a n d h as no t b een i n v i o l a t i o n o f any st a t u t e , r u le o r r e g u l a ti o n o f a n y g o v e r n m e n t al a u t ho r i t y .

 

Se c t i o n 3 . 1 3 T r a n sacti o n s w i t h A ff il i a t es a n d E m p l o y ee s . E xce p t as r e q u i r ed to be set f o r th in t h e S E C Re p o r t s, n o n e o f t h e o ff i ce r s o r d i r e c t o r s o f t h e C o m p a n y a nd , t o t h e k no w l e d g e o f t h e Sellers , n o n e o f t h e A ff i liat e s or e m p lo y ees o f the Co mp any is p r es e n tly a p a r ty to any tr a n sacti o n w i t h t h e C o m p a n y ( o ther t h an f o r s e r v i c es as e m p l o y e es, o ff i ce r s a n d d i r ect o r s ) , i n cl ud i n g a n y c on t r a ct, a g r e e m e n t o r o t h er a rr a n g e m e n t p r ov i d i n g f o r the f u r n is h i n g o f se r v i c es t o o r b y , p r o v i d ing f o r r e n t a l o f r eal o r p e r s on a l p r o pe r ty to o r f r o m , o r o t h e r w ise r e q u i r ing p a y m e n ts to o r fr o m any o ff i ce r , d i r e c t o r o r s u ch e m p lo y e e o r , t o t h e k no w l e d g e o f t h e Sellers, a n y e n ti t y i n w h i c h a n y o f f i c e r , di r ect o r , o r any s u ch e m p l o y ee h as a s ub st a n t i a l i n t er est o r is an o ff i ce r , d i r e c t o r , t r u st e e o r p a r t n e r .

 

Se c t i o n 3 . 1 4 A sset s . The Company does not have or lease any assets .

 

Se c t i o n 3 . 1 5 I nv es t m e n t C om p a n y / I n v e s t m e n t A d v is o r . T h e bu si n e s s o f t h e C o m p a n y d o es n o t r e q u i r e it to b e r e g i st e r ed as an i n v es t m e n t c o m p a n y o r i n v es t m e n t a d v is o r ; as s u c h t er m s a r e d e f i n ed u n d er t h e I nv e st m e n t C o m p any A ct a n d t h e I n v est m e n t A dv is o r s A ct o f 19 4 0 .

 

Se c t i o n 3 . 1 6 Regulatory M atte r s . T h e C o m p a n y h a s c o m p l i e d w i th a l l a p p l i ca b le fe d e r al, state and local l aw s a n d r e g u l at i o n s ( L a w ”). There is no pending or threatened civil or criminal litigation, written notice of violation, formal administrative proceeding or investigation, inquiry or information request by any federal, state or local governmental entity relating to any Law involving the Company.

 

Se c t i o n 3 . 1 7 I n f or m e d D ecisi o n . Each Seller i s a w a r e o f t h e C om p a n y s b u s i n ess a f f a i r s a n d f i n a n c i al c on d i t i o n a n d h a v e r e a c h ed a n i n f o r m e d a n d k n o w l e d g ea b le d e c i si o n t o sell t h e S h a r es.

 

Se c t i o n 3 . 1 8 N o L i a b i l iti e s o r D e b t s .

Other than:

(a) _____of Accounts Payable of which $11,261 have been outstanding for a period exceeding four years. Such $11,261 shall be held in Escrow for a period of six months from the date of closing unless Seller shall resolve such liabilities and releases regarding same.
(b) $19,601 of Notes Payable which shall be satisfied pursuant to the Escrow Agreement
(c) $3,078 in accrued expenses

 

 

There are n o lia b il i ties o r d e b ts o f t h e C om p a n y o f a n y k i n d w h ats o e v e r , w h et h er a c c r u e d , c o n t i n ge n t, a b s o l u t e , d et e rm i n e d , d et e r m i n a b l e o r o t h e r w ise as of Closing a n d t h e r e is n o e x isti n g c on d i ti o n, sit u ati o n o r s e t o f ci r c u m st a n c es w h i ch c o u ld r eas o n a b ly b e e x p ect e d t o r es u lt in s u ch a lia b i l ity o r d e b t . The Company is not a guarantor of any indebtedness of any ot h er p e r s o n , f i r m o r c o r p o r ati on .

 

Section 3.19 Employee Matters . The Company currently has one employee, whose employment with the Company shall terminate at Closing. There are no any outstanding employment obligation of the Company of any kind. The Company shall have no obligations whatsoever, for any compensation or other amounts payable to any employee, director, consultant, or independent contractor of the Company, including, but not limited to Bonus, salary, compensation, accrued vacation, fringe, pension or profit sharing benefits or severance paid or payable to any employee, director, consultant or independent contractor of the Company relating to service with or for the Company at any time prior to the Closing Date.

 

Section 3.20 SEC Reports . The Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “ SEC Reports ”). As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, 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 the light of the circumstances under which they were made, not misleading. The consolidated financial statements of the Company and its consolidated Subsidiaries included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. The financial statements included in the SEC Reports have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“ GAAP ”), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. The agreements and documents described in the SEC Reports conform in all material aspects to the descriptions thereof contained therein and there are no agreements or other documents required by the Securities Act and the rules and regulations thereunder to be described in the SEC Reports or to be filed with the Commission as exhibits to the SEC Reports, that have not been so described or filed.

 

Section 3.21 Free-Trading Shares . Of the total issued and outstanding shares of common stock of the Company, [25,571,587] shares of common stock are “restricted securities” under applicable U.S. federal and state securities laws and the remaining [23,526,991] shares are non-restricted securities.

 

A R T I C L E I V

 

R E PR E S EN T A T I O N S O F P U RC HA S E R

 

P u r c h as e r r e pr es e n ts a n d w a r r a n ts as f o l l o w s:

 

Se c t i o n 4 . 1 A u t h o r i z a t i o n o f P u r c h a s e r . T h e P u r c h as e r h a s f u l l po w er a n d a u t h o r i t y to e x ec u te a n d d el i v er t h i s A g r ee m e n t, to p e r f o r m i t s ob li g ati on s h e r e un d e r , a n d to c on s um m ate t h e t r a n sacti o n s c o n t e m p l a t e d h e r e b y . T h is A g r ee m e n t h a s b een d u l y e x e c u t e d a n d d e l i v e r ed b y the P u r c h aser a n d , ass u m i n g t h e d u e e x e c u t i o n o f t h is A g r ee m e n t b y each S elle r , w ill c on stit u te a v alid a n d b i nd i n g o b l i g a t i o n of the P u r c h a s er e n f o r c e a b le a g a i n st s u ch P u r c h aser in a c c o r d a n ce w i t h i ts t e r m s, e x ce p t to t h e e x t e n t t h at e n f o r cea b il it y m a y b e s u b j e ct t o a pp lica b le b a n k r u p t c y , i n s o l v e n c y , r e or g a n i zat i o n , a n d si m i l a r l a w s a ff ecti n g t h e e n f o r c e m e n t o f c r e d it o r s ' r i g h ts g e n e r al l y a n d to g e n e r al e qu ita b le p r i n ci p l e s.

 

Se c t i o n 4 . 2 C on s e n ts a n d A p p r o v al s ; N o V i o l a t i o n s . T h e e x e c u t i o n a n d d e l i v e ry o f t h is A g r e e m e n t b y the P u r c h aser a n d t h e c o n s u m m at i o n o f t h e t r a n s a ct i o n s c o n t e m p l a t e d h e r e by ( a) w i l l n o t v i o l a t e a n y s t at u t e , r u l e , r e g u l a t i o n , o r d e r o r d ec r ee o f a n y p u b l i c b od y o r a u t ho r it y b y w h i c h the P u rc h as e r is bo u n d o r b y w h i c h a ny o f its p r o p e r t i e s o r assets a r e b o un d , ( b ) w ill no t r e q u i r e any f ili n g w it h , o r p e r m it, c on s e n t o r a pp r ov a l o f , o r t h e gi v i n g o f a n y no tice t o , a n y go v e r nm e n t a l o r r e gu l a t o ry bo d y, a g e n cy o r a u t ho r i t y o n o r p r i o r to t h e Cl o si n g D a t e , a n d ( c) w i l l n o t r es u l t in a v i o l a t i o n o r b r ea c h o f , c on f lict w it h , c on stit u te ( w ith o r w i t h ou t d u e no tice o r l a p se o f ti m e o r bo t h ) a d e f a u lt ( o r gi v e r ise to a n y r i g h t o f t er m i n at i o n , ca n c e l l a ti on , p a y m e n t o r acce l e r a t i o n ) und e r , o r r es u lt in t h e c r e a t i o n o f a n y E n c u m br a n c e u p o n a n y o f t h e p r o p e r ties o r assets o f the P u r c h aser u n d e r any o f t h e t e rms, c o n d i t i o n s, o r p r o v i si o n s o f any n o t e , b o nd , m o r t g a g e , i nd e n t u r e, l i c e n se, f r a n c h i s e , p e r m i t , a g r e e m e n t, l e a s e, f r a n c h ise a g r e e m e n t, o r a n y o t h e r i n st r u m e n t o r o b li g ati o n t o which the Purchaser is a p a r t y, o r by w h i c h it o r a ny o f its p r o p e r t i e s o r ass e t s m ay b e bo u nd .

 

Se c t i o n 4 . 3 P u r c h ase f o r I n v e s t m e n t . W i t h r e g a r d t o t h e Shares p u r c h as e d fr o m t h e Sellers , the Purchaser and its assigns or designees will acquire the Shares solely for its own account for investment pu r p o ses on l y a n d n o t w ith a v i e w t o w a r d a ny r esa l e o r d ist r i b u ti o n t h e r e o f . With r e g a r d to t h e Shares p ur c h a sed fr o m t h e Sellers , the P u r c h as e r a g r ees t h at t h e Shares m ay no t b e s o l d , t r a n s f e r r e d , o f f e r e d f o r s a l e , p l e d ge d , h y po t h ecat e d , o r o t h e r w ise d is p o sed o f w it ho u t r egis t r ati o n un d er t h e Sec u r i ties A ct, e x ce p t p u r s u a n t to an e x e m p t i o n fr o m s u ch r e g i st r ati o n a v ai l a b le u nd er s u ch S e c u r i t i e s A ct, a n d w i t h ou t c o m p l i a n ce w i t h t h e s e c u r i t i e s l aw s o f o t h er j u r i s d i c t i o n s, to t h e e x t e n t a p p l i c a b l e . The P u r c h as e r a n d its ass i g n s o r d e s ig n e es h as s u ch k no w l e d g e a n d e x p e r i e n ce in f i n a n c i a l a n d b u si n ess m att e r s t h at it is c a p a b le o f e v a l u at i n g t h e m e r its a n d r i sks o f its p u r c h a s e o f t h e Shares. The P u r c h a s er c o n f i r m s t h a t t h e C o m p a n y a n d the Sellers h a v e m a d e a v ai l a b le t o the Purchaser t h e o p po r t u n it y to a s k q u est i o n s o f t h e C o m p a n y a n d to a c qu i r e a d d i t i o n al i n f or m ati o n a b ou t t h e C o mp any ' s b u s i n ess a n d f i n a n ci a l c on d i ti o n .

 

Se c t i o n 4 . 4 A v ail a b le F u nd s . The P u r c h a ser w i ll h a v e o n t h e Cl o s i n g D a t e s u f f i ci e n t f u n d s to p e rf or m all o f its o b l i g at i o n s un d er t h i s A g r ee m e n t, i n c l u d i n g , w i t h ou t l i m itat i o n , to m a k e t h e p a y m e n ts r e q u i r ed h e r e u n d er d es c r i b e d i n Secti o n 1 . 2 h e r e t o .

 

Se c t i o n 4 . 5 B r o k e r ' s o r F i nd e r ' s F e e s . N o a g e n t, b r o k e r , f i r m o r o t h e r P e r s o n a cti n g o n b e h alf o f the P u r c h a s er is, o r w ill b e, e n t itl e d to a n y c o m m iss i o n o r b r o k e r ' s o r f i n d e r ' s f e e s fr o m a n y o f t h e p a r t i e s h e r et o , o r fr o m any Pe r s o n c o n t r o l li n g , c o n t r o l l e d by o r u n d er c om m o n c on t r o l w i t h a n y o f t h e p a r ties h e r eto, in c o nn e ct i o n w i th a n y o f t h e t r a n s a ct i o n s c o n t e m p l a t e d h e r ei n .

 

Se c t i o n 4 . 6 A cc u r a c y o f I n f o r m at i o n . N on e o f t h e r e p r e s e n t a t i o n s a n d w a r r a n ties o f the P u r c h as e r c o n t a i n ed h e r e i n , o r in t h e d o c u m e n ts f u r n i s h ed p u r s u a n t h e r e t o , c o n t a i n s any m at er i a l m isst a t e m e n t o f f act o r o m its t o s t a t e a n y m at e r i a l f a ct n ecess a ry t o m a k e t h e st a t e m e n t s h e r ein o r t h e r ein in li g h t o f t h e c i r c u m st a n ces in w h i c h t h e y w e r e m a d e n o t m isl e a d i n g.

 

A R T I C L E V

 

C ON D I T I O N S T O S EL L E R ' S O B LIGA T IO N S

 

T h e S ale o f the Shares b y the Sel l ers o n t h e Cl o si n g D ate is c o n d it i o n ed u p o n sat i s f a c t i o n o r w ai v e r , at o r p r i o r to t h e c on s u m m ati o n o f t h e Sa l e, o f t h e f o l l o w i n g c on d it i o n s:

 

Se c t i o n 5 . 1 Accuracy o f Re p r ese n t a t i o n s a n d W a r r a n tie s . T h e r e p r e se n t a ti on s a n d w a r r a n ties o f the P ur c h as e r c o n t a i n ed i n t h is A g r ee m e n t s h all b e t r u e a n d c o rr e ct in a l l m at er i a l r es p e c t s o n a n d as o f t h e C l o si n g D ate w i t h t h e s a m e e ff e ct as t h o u g h s u c h r e p r e se n t a ti on s a n d w a r r a n ties h ad b e en m a d e o n a n d as o f s u c h d at e .

 

Se c t i o n 5 . 2 P e r f o r m a n c e o f A g r e e m e n t s . E ach a n d all o f t h e a g r e e m e n ts o f the P u r c h aser to b e p e r f o r m ed at o r p r i o r to t h e C l o si n g D ate pu r s u a n t to t h e t er m s h e r eof s h all h a v e b een d u l y p e rf o r m ed i n a l l m a t e r i a l r es p ects.

 

Se c t i o n 5 . 3 N o I n j u n ct i o n . N o c o u r t o r o t h er g o v e r n m e n t al b o d y o r pu b l ic a u t ho r i t y s h a l l h a v e i ssued an o r d e r t h at s h all t h en b e i n e f f e ct r est r ai n i n g o r p r oh i b i ti n g t h e c o m p l e t i o n o f t h e t r a n sacti o n s c o n t e m p l at e d h e r eby.

 

Section 5.4 Deposit of Purchase Price to Escrow Agent . The Purchaser shall have deposited the balance of the Purchase Price to the Escrow Agent.

 

A R T I C L E V I

 

C ON D I T I O N S T O P U RC HA S E R ' S O B LIGA T ION S

 

T h e p u r c h a s e o f t h e Shares b y the Purchaser o n t h e Cl o si n g D a t e i s c on d i ti o n ed u po n t h e satis f act i o n o r w a i v e r , at o r p r i o r t o t h e c o n s u mm a t i o n o f t h e S al e , o f t h e f o ll o w i n g c o nd iti ons:

 

Se c t i o n 6 . 1 Accuracy o f Re p r ese n t a t i o n s a n d W a r r a n tie s . T h e r e p r e se n t a ti on s a n d w a r r a n ties o f each Sell e r c o n t a i n ed in t h is A g r e e m e n t s h all b e t r u e a n d c o r r ect i n a l l m a t e r i a l r es p e cts o n a n d as o f t h e C l o s i n g D ate w ith t h e s a m e e ff ec t as t h ou g h s u ch r e p r e s e n t ati o n s a n d w a r r a n ties h a v e b e e n m a d e o n a n d as o f s u ch d a t e ( e x c e p t t o t h e e x t e n t t h a t a ny s u ch r e p r e s e n t at i o n a n d w a r r a n t y i s s t a t e d in t h i s A g r e e m e n t t o be m a d e as o f a s p eci f i c d at e , in w h i c h c a se s u c h r e p r e s e n t a t i o n a n d w a rr a n t y s h all b e t r u e a n d c o r r ect as o f s u ch s p e c i f i e d d at e) .

 

Se c t i o n 6 . 2 P e rf o r m a n c e o f A g r e e m e n t s . E ach a n d all o f t h e a g r e e m e n ts o f S eller t o b e p e rf orm ed a t o r p r i o r to t h e Cl o s i n g D ate pur s u a n t to t h e t er m s h e r e o f s h all h a v e b een d u l y p e rf o rmed i n a l l m a t e r i a l r es p ects.

 

Se c t i o n 6 . 3 N o I n j u n cti o n . N o c our t o r o t h er go v e r n m e n t b od y o r pu b l ic a u t ho r i t y s h a l l h a v e i ss u ed an o r d e r w h i c h s h a l l t h en b e in e f f e c t r est r ai n i n g o r p r o h i b iti n g t h e c om p l et i o n o f t h e t r a n s a cti on s c o n t e m p l a t e d h e r eby.

 

Section 6.4 Delivery of Shares to Escrow Agent . The Sellers shall have delivered the Shares to the Escrow Agent with validly signed stock power, medallion guaranteed, together with all documents necessary to effectuate the transfer of the Shares.

 

A R T I C L E V I I

C E R TA I N AG R EE ME N T S

Se c t i o n 7 . 1 Reas o n a b le B e s t E ff o r t s . E ach o f t h e p a r ties h e r eto a g r ees to u se its r eas o n a b l e b est e f f o r t s to t a k e o r c a u se to b e t a k en all a cti on , to d o o r c a u se to b e d o n e , a n d to assist a n d c oo p e r ate w i th t h e o t h e r p a r ty h e r e t o i n d o i n g , a l l t h i n g s n ecess a r y, p r op e r , o r a d v isa b le to c o n s u mm ate a n d m a k e e f f ec t i v e, in t h e m o st e xp e d i t i ou s m a nn er p r a ct i c a b l e , t h e t r a n sacti o n s c on t e mp l a t ed b y t h i s A g r e e m e n t, i n cl ud i n g, b u t no t l i m ited t o , ( a) t h e ob t a i n i n g o f all n e c ess a r y w a i v e r s, c on s e n ts, a n d a p p r o v als fr o m g ov e r n m e n t al o r r e g u l at o r y a g e n c i es o r a u t h o r i t i e s a n d t h e m a k i n g o f all n e c e ss a r y r e g is t r ati o n s a n d f ili n g s a n d t h e t a k i n g o f all r eas o n a b l e st e p s as m a y b e n e cessa r y to ob t a in a n y a p p r ov al o r w ai v er fr o m , o r to a v o id a n y acti o n o r p r o c ee d i n g b y , a n y g ov e r nm e n t a l a g e n c y o r a u t ho r it y , ( b ) t h e ob t ai n i n g o f all n e c e s sa r y c o n se n ts, a p p r o v als, o r w ai v e r s f r o m t h i r d p a r ti e s, a n d ( c) t h e d e f e nd i n g o f a n y l aw s u i ts o r a n y o t h e r l e g al p r o c e e d i n g s, w h e t h er j ud i c i a l o r a d m i n is t r ati v e, c h al l e n g i n g t h is A g r ee m e n t o r t h e c o n s um m ati o n o f t h e t r a n sact i o n s c o n t e m p l a t ed h e r e b y , i n cl ud i n g , w it ho u t li m i t a ti o n , see k i n g to h a v e a n y t e mp o r a r y r est r ai n i n g or d er e n t e r ed b y a n y c o u r t o r a d mi n ist r a t i v e a u t ho r ity v a c a t e d o r r e v e r s e d .

 

Section 7.2 Board of Directors; Officers . At the Closing, (a) the Board of Directors shall consist of one current director (the “ Existing Director ”) and one director appointed by Purchaser (the “ New Director ”), and (b) all officers of the Company shall resign and the Board of Directors shall appoint the designees of Purchaser as the sole officers thereof. Upon compliance by the Company with information statement delivery requirements pursuant to Rule 14f-1 under the Exchange Act, if applicable, the Existing Director shall resign and the vacancy created thereby shall be filled by directors designated by the New Director.

 

Section 7.3 Further SEC Filings .

 

(a)        The Sellers shall take all such further acts as shall be required to permit the Company to file any SEC Reports to be filed at or following the Closing which reflect the business and operations of the Company prior to the Closing, and shall execute and deliver all certifications required to be filed by the Company with respect to financial statements of the Company reflecting in whole or in part the business and operations of the Company prior to the Closing. Each Seller acknowledges that this covenant is a material inducement to the Buyer in entering into the transactions contemplated hereby and in connection herewith.

 

(b) At closing, $25,000 of the Purchase Price shall remain in the escrow account set up pursuant to the Escrow Agreement until the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2018 is filed with the SEC, at which time the $25,000 shall be released to the Sellers by the Escrow Agent pursuant to the terms and conditions of the Escrow Agreement.

 

A R T I C L E V I I I

 

S U R V I VA L O F R E P R E S E NTA TI O N S ; I ND EM N I F I C A T IO N

 

Se c t i o n 8 . 1 I nd e m n it i e s .

 

(a) Each Seller hereby agrees to indemnify and hold harmless the Purchaser from and against any and all damages, claims, losses, or expenses (including reasonable attorneys' fees and expenses) (“ Damages ”) actually suffered or paid by the Purchaser as a result of the breach of any representation or warranty made by such Seller in this Agreement. To the extent that such Seller's undertakings set forth in this Section 8.1(a) may be unenforceable, such Seller shall contribute the maximum amount that they are permitted to contribute under applicable law to the payment and satisfaction of all Damages incurred by the parties entitled to indemnification hereunder. In the event that Purchaser should raise a claim for damages pursuant to this section 8.1(a), the Sellers shall have a fifteen (15) business day cure period, beginning upon notice received, to cure any such defect to Purchaser's satisfaction.

 

( b ) The Purchaser h e r e b y a g r ees to i n d e m n i f y a n d h o ld h a r m l ess the S e l l e rs a g ai n st D a m a g e s ac t u al l y s uf f e r e d o r p aid b y Seller a s a r es u l t o f t h e b r each o f a n y r e p r es e n t at i o n o r w a rr a n t y m a d e b y t h e P u r c h a s er in t h is A g r e e m e n t. T o t h e e x t e n t t h at t h e P u r c h ase r ' s un d e r t a k i n g s set fo r t h i n t h is Se c t i o n 8 . 1 ( b) m a y b e u n e nf o r c ea b l e , t h e P u r c h as e r s h all c o n t r i b u t e t h e m a x i m u m a m o u n t t h a t h e is p e r m it t e d t o c on t r i bu te u n d er a p p l i c a b l e l a w to t h e p a y m e n t a n d s a t is f acti o n o f all D a m a g es i n c u rr ed b y t h e p a r ti es e n t itl e d t o i nd e mn i f i c a t i o n h e r e u n d e r .

 

( c) A n y p a r t y s e e k i n g i n d e m n i f i c ati o n u n d er t h is Ar t i c le V II I ( a n I n d e m n i f i e d P a r t y ) s h a ll g i v e ea c h p a r t y fr o m w ho m i n d e m n i f i cati o n i s b ei n g s ou g h t ( eac h , an I n d e m n i f y i n g Pa r t y ) n o t i c e o f a n y m a t t e r f o r w h i c h s u ch I n d e mn i f i e d Pa r t y is se e k i n g i n d e m n i f i c a t i o n , s t a t i n g t h e a mo un t o f t h e D a m a g es, if kn o w n , a n d m et ho d o f c o mp u t a t i o n t h e r e o f , a n d c o n t a i n i n g a r e f e r e n ce t o t h e p r o v i s i o n s o f t h i s A g r e e m e n t in r es p e c t o f w h i c h s u ch r i gh t o f i n d e mn i f i c ati o n is c l a i m ed o r a r ises. T h e ob li g a t i o n s o f a n I n d e m n i f y i n g Pa r t y u n d er t h is Ar tic l e V II I w i th r e s p e ct to D a m a g es a r i si n g f r o m a n y cl a i m s o f a n y t h i r d p a r ty t h a t a r e s u b j e ct to t h e i n d e mn i f i c ati o n p r o v i d ed f o r in t h is Ar t i c le V II I ( c o l l e cti v e l y , T h i r d - P a r t y Cl a i m s ) s h all b e g ov e r n ed b y a n d c o n t i n g e n t up o n t h e f o l l o w i n g a d d i t i o n al t e r m s a n d c o nd iti on s: if an I n d e m n i f i e d Pa r t y s h all r e c ei v e, a f t e r t h e Cl o si n g D at e , i n i tial n o tice o f a n y T h i r d - P a r t y Cl a i m , t h e I n d e m n i f i e d P a r t y s h a l l g i v e t h e I n d e m n i f y i n g P a r t y n o t i c e o f s u ch T h i r d - Pa r t y Cl a i m w i t h i n s u ch ti m e f r a m e as is n ecessa r y to all o w f o r a t i m e ly r es p on s e a n d in a n y e v e n t w i t h in 3 0 d a y s o f t h e r ecei p t b y t h e I n d e mn i f i e d Pa r t y o f s u ch n o tice; p r ov i d e d , ho w e v e r , t h at t h e f a il u r e to p r o v i d e s u ch t i m e l y n o ti c e s h a l l n o t r e l e a se t h e I nd e m n i f y i n g P a r t y fr o m a n y o f i ts o b l i g at i o n s un d er t h i s Ar t i cle V II I e x ce p t to t h e e x t e n t t h e I n d e mn i f y i n g P a r t y is m at er i a l l y p r ej u d i c ed b y s u ch f ail u r e. T h e I n d e m n i f y i n g Pa r t y s h all b e e n t i tled t o ass um e a n d c o n t r o l t h e d e f e n se o f s u ch Th i r d - P a r t y C l a i m at its e x p e n se a n d t h r ou g h c o un s e l o f its c h o i c e if i t g i v es n o t ic e o f its i n t e n t i o n t o d o so t o t h e I n d e mn i f i e d P a r t y w it h in 3 0 d a y s o f t h e r e cei p t o f s u ch n o ti c e fr o m t h e I n d e mn i f i ed Pa r t y ; p r o v i d e d , h o w e v e r , t h at if t h e r e e x ists o r i s r eas o n a b l y li k e l y to e x ist a c o n f lict o f i n t e r est t h at w o uld m a k e it i n a p p r op r i a te in t h e j u d g m e n t o f t h e I nd e m n i f i e d P a r t y ( up o n a d v i c e o f c o u n sel) f o r t h e sa m e c o un s e l to r e p r es e n t b o th t h e I nd e m n i f i e d P a r ty a n d t h e I n d e mn i f y i n g P a r t y , t h e n t h e I n d e m n i f i e d P a r ty s h all b e e n t i tled to r e t a i n i ts o w n c o u n sel, at t h e e x p e n se o f t h e I n d e m n i f y i n g P a r t y , p r o v i d e d t h at t h e I nd e m n i f i ed P a r t y a n d s u ch c o un sel s h all c on t e st s u ch T h i r d - P a r t y C l a i m s in g o o d f ai t h . I n t h e e v e n t t h e I n d e mn i f y i n g Pa r t y e x e r cises t h e r i g h t to u nd e r t a k e a n y s u ch d e f e n s e a g ai n st a n y s u ch T h i r d - P a r t y Cl a i m as p r ov i d e d a b o v e, t h e I n d e mn i f i e d Pa r t y s h all c oo p e r ate w ith t h e I n d e m n i f y i n g P a r t y i n s u ch d e f e n se a n d m a k e a v aila b le to t h e I n d e mn i f y i n g P a r t y , at t h e I n d e mn i f y i n g P a r t y ' s e xp e n s e , a l l w i t n esses, p e r t i n e n t r e c o r d s, m at er i a l s, a n d i n f o r m a t i o n i n t h e I nd e m n i f i e d P a r t y ' s po s s essi o n o r u n d er t h e I nd e m n i f i e d P a r t y ' s c o n t r o l r e l a t i n g t h e r eto as is r e as on a b l y r e q u i r ed b y t h e I n d e m n i f y i n g Pa r t y . S i m ila r l y , in t h e e v e n t t h e I nd e m n i f i e d Pa r t y i s, d i r ect l y o r i n d i r ect l y , c o n d u cti n g t h e d e f e n se a g ai n st a n y s u ch T h i rd - P a r t y Cl a i m , t h e I n d e m n i f y i n g P a r t y s h all c o op e r a t e w ith t h e I nd e m n i f i e d Pa r t y in s u c h d e f e n se a n d m a k e a v aila b le to t h e I nd e m n i f i e d Pa r t y , a t t h e I n d e m n i f y i n g P a r t y ' s e x p e n se, all s u ch w i t n esses, r e c o r d s, m at e r i a ls, a n d i n f o r m a t i o n i n t h e I n d e m n i f y i n g P a r t y ' s p o ssessi o n o r un d er t h e I n d e m n i f y i n g Pa r t y ' s c o n t r o l r e l ati n g t h e r e t o as is r eas o n a b l y r e q u i r ed b y t h e I n d e m n i f i ed Pa r t y . Th e I n d e mn i f y i n g P a r t y s h all n o t, w it ho u t t h e w r it t e n c o n se n t o f t h e I n d e m n i f i ed P a r t y , ( i) se tt le o r c om p r o m i s e any T h i r d - P a r t y C l a i m o r c o n s e n t t o t h e e n t r y o f a n y j ud g m e n t t h at do e s n o t i n c l u d e as an u n c o n d i ti o n al t er m t h e r e o f t h e d eli v e r y b y t h e cl a i m a n t o r p l a i n t i f f to t h e I nd e mn i f i e d Pa r t y o f a wr it t en r el e ase fr o m all l i a b i li t y in r es p e c t o f s u ch T h i r d -Pa r t y Clai m , o r ( ii) settle o r c o m pr om ise a n y T h i r d - P a r ty C l a im in a n y m a n n e r t h at m a y a d v e r se l y a f f ect t h e I nd e mn i f i e d P a r t y . Fi n al l y , n o Th i r d - P a r t y C l aim t h a t is b ei n g d e f e n d ed in g oo d f a i th b y t h e I n d e mn i f y i n g P a r t y o r t h at is b e i n g d e f e n d ed b y t h e I nd e mn i f i e d P a r t y as p r o v i d ed a bo v e in t h is Secti o n 8 . 1 ( c) s h a l l b e set t l e d b y t h e I nd e mn i f i e d P a r t y w i t h o u t t h e wr it t en c on s e n t o f t h e I nd e m n i f y i n g P a r t y .

A R T I C L E I X M I S C E LLAN E OU S

 

Se c t i o n 9 . 1 E x p e n se s . T h e p a r t i es h e r eto s h all p a y a l l o f t h e ir o w n e xp e n ses r elat i n g to t h e t r a n s a c t i o n s c o n t e m p l a t e d by t h is A g r e e m e n t , i n cl u d i n g, w i t h o u t l i m itat i o n , t h e f e es a n d e xp e n s e s o f t h eir r es p ect i v e c o un s e l , f i n a n ci a l a dv i s o r s, a n d a c c o u n t a n ts.

 

Se c t i o n 9 . 2 G o v e r n i n g L a w ; C o n se n t t o J u r i s d i c t i o n .

 

( a) T h e i n t er p r e t a t i o n a n d c o n st r u cti o n o f t h is A g r e e m e n t, a n d all m atte r s r el a t i n g h e r e t o , s h all b e g o v e r n ed b y t h e l aw s o f t h e St a te o f New York a p p l i c a b le to c o n t r a c t s m a d e a n d to b e p e rf o r m ed e n ti r e l y w it h i n t h e St a te o f New York.

 

( b ) E ach o f t h e p a r t i e s a g r e e s t h at a n y l e g al a cti o n o r p r o c e e d i n g w i t h r e s p ect to t h is Ag r e e m e n t shall be brought and enforced in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. E a c h o f t h e p a r ties h e r eto h e r e b y i rr e v o c a b ly w a i v es a n y ob j e cti o n t h at it m ay no w o r t h e r ea f t er h a v e to t h e layi n g o f v e n u e o f a n y o f t h e a f or esaid a c t i o n s o r p r o c ee d i n g s a r is i n g ou t o f o r in c o nn e c t i o n w i t h t h is A g r e e m e n t b r ou g h t in t h e c o u r ts r e f e r r ed t o in t h e p r ece d i n g se n t e n ce. E ach p a r t y h e r eto h e r e b y c on s e n ts t o p r o cess b ei n g s e r v ed in a n y s u ch act i o n o r p r o c e e d i n g b y t h e m a i li n g o f a c o p y t h e r e o f to t h e a dd r ess set f o r th o p p o site i t s n a m e b el o w a n d a g r ees t h at s u c h se r v i c e u p o n r e c e i p t s h all c on stit u te g o o d a n d s u ff i c i e n t se r v i c e o f p r o c ess o r n o tice t h e r e o f . N o t h i n g i n t h i s p a r a g r a p h s h a l l a ff e ct o r eli m i n ate a n y r i g h t to s e r v e p r o cess i n a n y o t h er m a n n e r p e r m it t e d b y l aw .

 

Se c t i o n 9 . 3 Ca p ti on s . T h e a r tic l e a n d secti o n c a p t i o n s u s ed h e r e i n a r e f o r r e f e r e n ce p u r po ses o n l y, a n d s h all n o t i n a n y w ay a f f ect t h e m e a n ing o r i n t er pr et a ti o n o f t h is A g r e e m e n t .

 

Se c t i o n 9 . 4 N o tice s . Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via e-mail attachment at the email address set forth below at or prior to 5:30 p.m. (New York City time) on a business day, (b) the next business day after the date of transmission, if such notice or communication is delivered via e-mail attachment at the e-mail address as set forth below on a day that is not a business day or later than 5:30 p.m. (New York City time) on any business day, (c) the second (2nd) business day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given.

 

if to P u r c h ase r , t o :

 

Peiwen Yu

No. 911 Bao'an Book City XInqiao Street Central Road,

Bao'an District, Shenzhen City, China

Email: dennistan1612@gmail.com

 

With a copy to (which does not constitute notice):

 

Ellenoff Grossman & Schole LLP

1345 Avenue of the Americas, 11 th Floor

New York, NY 10105

Attn: ranslow@egsllp.com

 

a n d if t o S el l e r , t o :

 

David Koos

700 Spring Street, Suite 304,

La Mesa, California, 91942

Email: venturebridge@gmail.com

 

With a copy to (which does not constitute notice):

 

[ ]

 

o r s u ch o t h er a d d r e sses o r n u m b e r s as s h all b e f u r n is h ed i n wr i ti n g b y a n y s u c h p a r t y i n t h e m a n n e r f o r g i v i n g no tic e s h e r e un d e r .

 

Se c t i o n 9 . 5 P a r ties in Interest . T h is A g r ee m e n t m a y n o t b e t r a n s f e r r e d , ass i gn e d , p l e d g e d , o r h y po t h e c at e d b y a n y p a r t y h e r et o , o ther t h an b y o pe r ati o n o f l a w . Th is A g r ee m e n t s h a l l b e b i nd i n g u p o n a n d s h a l l i n u r e to t h e b e n e f it o f t h e p a r t i es he r e t o a n d t h eir r es p ect i v e s u c cess o r s a n d p e r m i t t e d a s si g n s.

 

Se c t i o n 9 . 6 C ou n t er p a r t s . T h is A g r e e m e n t m a y be e x e c u t e d i n t w o o r m o r e c o u n t er p a r ts, a l l o f w h i c h t a k en to g et h er shall c on stit u te o n e i n st r u m e n t .

 

Section 9.7 Entire Agreement. This Agreement, including its exhibits, schedules, a n d o t h er do c u m e n t s r e f e rr ed t o h e r ein t h at f o r m a p a r t h e r e o f , c o n t a in t h e e n ti r e u n d e r st a n d i n g o f t h e p a r ties h e r eto w i th r es p ect to t h e s u b j e ct m atter c o n t a i n ed h e r e i n a n d t h e r ei n . T h is A g r e e me n t s u p e r s e d es a l l p r i o r a g r e e m e n ts a n d und e r st a n d i n g s b e t w een t h e p a r ties w i t h r e s p ect to s u ch s u b j e ct m a t t er .

 

Se c t i o n 9 . 8 T h i r d - P a r t y Be n e f i c i a r i e s . E a ch p a r t y h e r eto i n t e n d s t h at t h is A g r ee m e n t s h a l l no t b e n e f i t o r c r eate a n y r i gh t o r ca u se o f act i o n i n o r o n b e h alf o f a n y p e r s o n o t h er t h an t h e p a r ties h e r et o .

  1  

 

* * * * *

 

I N W IT N E SS W HE R E O F , e a ch o f t h e p a r ties h as caused t h is A g r e e me n t to be e x ecu t e d b y t h eir r es p e c t i v e o ff i c e r s t h e r eu n to d u l y au t ho r i z e d , a l l as o f t h e day a n d ye a r f i r st a bo ve wr i t t e n.

 

 

 

P U RC HA S E R :

 

 

 

 

/s/Peiwen Yu

Peiwen Yu

 

 

 

 

S E LLE RS :

 

David Koos

 

 

Regen BioPharma Inc.

 

 

By: /s/David Koos

Name: David Koos

Title: Chairman and CEO

 

 

Bostonia Partners Inc.

 

 

By: /s/ Timothy G. Foat

Name: Timothy G. Foat

Title: President

 

Sherman Family Trust

 

 

By: /s/ Timothy G. Foat

Name: Timothy G. Foat

Title: Trustee

 

 

Dunhill Ross Partners Inc.

 

 

By: /s/ Timothy G. Foat

Name: Timothy G. Foat

Title: President

 

 

 

Bio-Technology Partners Business Trust

 

By: /s/Timothy G. Foat

Name: Timothy G Foat

Title: President

 

 

 

I N W I T NE SS W H E R E O F , t h e un d e r s i g n e d officer and director of the Company c o n f i r m s t h e w a r r a n t i e s a n d r e p r ese n t a ti o n s m a d e in A R T I C L E II I a b o v e a s b ei n g t r u e a n d c o r r ect.

 

_________________________________________

David Koos

Chief Executive Officer, President and Chairman

 

  2  

 

 

AMENDMENT TO ESCROW AGREEMENT

Dated November 15, 2018

 

WHEREAS on October 3, 2018 China International Corporate Management, or its assigns (the "Buyer"), David Koos, as the selling shareholders' representative ("Seller"), the representative of the holders of (i) 23,733,334 restricted shares of common stock, (ii) 667 Series AA preferred stock with super-voting rights, (iii) 534 Series AAA preferred stock with super-voting rights, and (iv) 1,001,533 non-voting convertible preferred stock of Entest Group, Inc. (the "Company"), and McMurdo Law Group, LLC (the "Escrow Agent") entered into the Escrow Agreement (“Agreement”),

WHEREAS, the Seller, the Buyer and the Escrow Agent mutually agree to amend Sections 2 and 3 of the Agreement

It is therefore agreed as follows:

 

Section 2 of the Agreement shall be and read:

 

2. 2.1 Deposits to the Escrow Agent. One day after receipt by the Escrow Agent of written notification from both the Buyer and the Seller that binding SPA (s) have been executed, due diligence has been completed, and the Parties are prepared to close the transaction contemplated by the binding SPA (s) the Buyer shall deposit, by Fed Wire Transfer in immediately available funds, an additional $275,000 (the "Additional Deposit", and together with the initial deposit, the "Escrow Amount") to the Bank Account.

 

2.2 One day after the receipt of the Additional Deposit by the Escrow Agent, the Seller shall deliver (a) medallion guaranteed or notarized stock certificate(s) and irrevocable stock power(s) necessary to complete the Transaction, (b) the resignation of the Company's officers and directors to be effective ten business days after the filing of the Company’s Form 10-K with the United States Securities and Exchange Commission and (c) the appointment of the Buyer' s designee(s) as officer(s) and director(s) to be effective ten business days after the filing of the Company’s Form 10-K for the fiscal year ended 2018 (“10-K”) with the United States Securities and Exchange Commission (the "Documents") to the Escrow Agent.

 

Section 3 of the Agreement shall be and read:

3.       Disbursement of Deposit from the Bank Account.

3.1       In the event the Seller is unable to provide the Documents by November 30, 2018, TIME BEING OF THE ESSENCE, or if the parties hereto fail to complete the Transaction for any reason, the Escrow Amount shall be returned to the Buyer, via the instructions provided by Buyer, and any and all Documents delivered shall be returned to the Seller, via the instructions provided by the Seller. In the event that not all of the Documents have been received by November 30, 2018 the Escrow Agent shall return any and all Documents to the Seller and the Escrow Amount to the Buyer no later than December 1, 2018.

 

3.2 The Escrow Agent shall deliver by Fed Wire Transfer in immediately available funds one day subsequent to receipt by the Escrow Agent of the Documents :

 

$277,321 of the Escrow amount to the Seller

 

$4,551 of the Escrow Amount to Regen Biopharma, Inc. a creditor of the Company

 

$2600 of the Escrow Amount to David Koos, a creditor of the Company

 

$ 850 of the Escrow Amount to Dunhill Ross, a creditor of the Company

 

$11,600 of the Escrow Amount to Blackbriar Partners, a creditor of the Company

 

3.3 The Escrow Agent shall deliver by Fed Wire Transfer in immediately available funds one subsequent to the filing of the10-K:

 

$25,000 of the Escrow Amount to the Seller.

 

3.4 The Escrow Agent shall deliver by Fed Wire Transfer in immediately available funds one subsequent to the effectiveness of the Buyer’s designee(s) as officer(s) and director(s):

 

$3,078 to the Company

 

3.5       Upon disbursement of the entire Escrow Amount pursuant to the terms of this Section and the delivery of the Documents to the Buyer, such delivery which is to occur one day subsequent to the disbursement pursuant to 3.2 of this Agreement , the Escrow Agent shall be relieved of further obligations and released from all liability under this Agreement as related to such Escrow Amount. It is expressly agreed and understood that in no event shall the aggregate amount of payments made by the Escrow Agent, pursuant to Article 3, exceed the Escrow Amount.

IN WITNESS WHEREOF, the undersigned have executed this Amendment to the Agreement on November 15, 2018

 

  MCMURDO LAW GROUP, INC. MATTHEW MCMURDO, ESQ.
   
   
   
   
  CHINA INTERNATIONAL CORPORATE MANAGEMENT
   
   
  Dennis Tan
   
  Business Development Director
   
   
   
   
  Peiwen Yu
   
  SELLER
   
  DAVID KOOS (in his capacity as the selling shareholders’ representative)
   
  By:
  Name: David Koos
  Selling Shareholder Representative

 

 

Exhibit 10.2

SUBLEASE AGREEMENT

 

This is an agreement to sublet office space located at 4 700 Spring Street, Suite 304, La Mesa, California 9 I 942 according to the terms specified below.

 

The sublessor agrees to sublet and the subtenant agrees to take the premises described below. Both parties agree to keep, perform and fulfill the promises, conditions and agreements below:

 

I. The sublessor is: BST Partners

 

2. The subtenant is: Regen BioPharma, Inc.

 

3. The term of this sublease is month to month beginning November 1, 2018.

 

4. The rent payable to the sublessor by the subtenant is equal to Five Thousand Dollars per month ($5,000) is to be paid in at such time specified in accordance with the original lease agreement between the sublessor and the lessor.

 

5. All charges for utilities connected with premises which are to be paid by the sublessor under the master lease shall be paid by the subtenant for the term of this sublease to the extent that such charges exceed the difference between the rent payable to the lessor by the sublessor under the master lease and the rent payable to the sublessor by the subtenant hall be paid by the subtenant for the term of this sublease.

 

6. Subtenant agrees to surrender and deliver to the sublessor the premises and all furniture and decorations within the premises in as good a condition as they were at the beginning of the term, reasonable wear and tear excepted. The subtenant will be liable to the sub lessor for any damages occurring to the premises or the contents thereof or to the building which are done by the subtenant.

 

7. In the event of any legal action concerning this sublease, the losing party shall pay to the prevailing party reasonable attorney's fees and court costs to be fixed by the court wherein such judgment shall be entered. The parties hereby bind themselves to this agreement by their signatures affixed below on this 16 day of November, 2018.

 

BST Partners

By: /s/ David Koos

Chairman and CEO

 

Regen Biopharma, Inc.

By:/s/ David Koos