UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 8-K12g3

 

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of report (Date of earliest event reported): August 31, 2015

 

SIBANNAC, INC.

 (Exact name of Registrant as specified in its charter)

 

Nevada

(State or other jurisdiction of incorporation)

333-122009

(Commission File Number)

33-0903494

(IRS Employer Identification No.)

 

1313 E Osborn Rd, Suite 100, Phoenix AZ 85014

 (Address of principal executive offices)

 

480 420 3171

(Registrant's Telephone Number, Including Area Code)

 

 (Former Name or Former Address, if Changed Since Last Report)

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 (see General Instruction A.2. below):

[_]  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))



SECTION 1 - REGISTRANT'S BUSINESS AND OPERATIONS



Item 1.01 - Entry Into a Material Definitive Agreement.

Apollo Media Network, Inc.

On August 19, 2015, Sibannac, Inc. ("the Company") signed an Asset Acquisition Agreement with Apollo Media Network, Inc. ("Apollo"), a Delaware corporation, with an effective date of August 31, 2015, whereby all of the assets of Apollo would be acquired by the Company from Apollo.

The Asset Acquisition Agreement is attached hereto in full as Exhibit 10.1.

Apollo Media Network, Inc. is a Delaware corporation that is a digital advertising platform oriental toward the cannabis industry currently consisting of fourteen websites. Presently, Apollo Media monetizes the traffic utilizing proprietary, programmatic strategies and it launched its direct sales efforts to the marijuana industry in November 2015.

SECTION 2 - FINANCIAL INFORMATION

Item 2.01 Completion of Acquisition or Disposition of Assets

On August 19, 2015, Sibannac, Inc. ("the Company" or "Sibannac"), a Nevada corporation, entered into an Asset Acquisition Agreement with Apollo Media Network, Inc. ("Apollo"), a Delaware corporation, whereby all of the assets of Apollo would be acquired by the Company from Apollo. Pursuant to the Asset Acquisition Agreement, the closing of the Acquisition was effective August 31, 2015, although completed later.  Apollo issued to the Company an Assignment Agreement and Bill of Sale for the Assets, duly executed by Apollo. Sibannac, Inc. delivered to Apollo Media Network, Inc. three million, one hundred thousand (3,100,000) shares of the Company's Common Stock, duly issued, fully paid and non-assessable which were distributed to its shareholders in liquidation of Apollo pursuant to IRC Section 368c. There has been no merger, however, the assets and intellectual property of Apollo were transferred in liquidation to Sibannac.

After fiscal year end we acquired Protection Cost, Inc. for two million, three hundred thousand (2,300,000) shares which intends to provide labor and accounting management systems for the cannabis industry.

History of Sibannac, Inc., a Nevada corporation

Sibannac, Inc. ("Sibannac" or "Company" or "we") was incorporated in June 1999 in the State of Nevada as Naprodis, Inc. for the purpose to engage in any lawful activity for which corporations may be formed. On August 25, 2014, the Company transferred all of its assets to Naprodis, Inc., a Colorado corporation ("Colorado Naprodis").  In consideration for the transfer of these assets, Colorado Naprodis agreed to assume a substantial amount of the Company's liabilities. On November 25, 2014, the Company changed its name to Sibannac, Inc. 

We have short operating history in the Apollo business (only in the startup mode in 2015) and no representation is made, nor is there any assurance that our Company will be able to successfully raise the necessary capital to successfully carry out its business plans.

 

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Proposed Business Plan of Sibannac, Inc.

Sibannac intends to become a media and management services company, whose purpose is to service businesses with online marketing, advertising, sales tracking, management consulting and other informational services. Additionally, Sibannac provides accounting and expense and labor management systems to assist in compliance in the highly regulated industry environment.

We intend to fully comply with all federal laws and regulations, including those enforced by the US Drug Enforcement Administration (DEA), United States Department of Agriculture (USDA), US Food and Drug Administration (FDA) and US Federal Trade Commission (FTC) in our operations. We are NOT a "marijuana" sales company attempting to operate outside of federal "marijuana" prohibitions.

Divisions of Sibannac, Inc.

1.  Sibannac Media

Our division, Sibannac Media, into which the Apollo assets were merged is in the business of developing and promoting web content.  We currently own 15 domains that in total frequently rank high as 250 visited websites on the web according to Quantcast analytics. We are currently generating revenue from these sites and expect to expand into offering direct advertising sales in the near future.

a.  Overview

Sibannac Media is a media company that produces websites, targeting specific consumer and B2B interests.  It leverages these platforms to sell advertising and to generate an average audience of over 1 million unique users each month per web site, thereby reaching niche audiences interested in categories such as science, sports, health, parenting, news and business.  Sibannac Media is a wholly owned subsidiary of Sibannac and intends to develop and drive the advertising and technology side of the Sibannac brands and products.

Sibannac Media intends to leverage technology to measure audience trend, behavior and social media to best determine desired content and advertiser demand. Sibannac Media intends to use Real Time Bidding (RTB) networks for media buying and selling of advertising. This is known as programmatic advertising, which is a system similar to how stocks trade on Wall Street where computers automate the process of buying and selling inventory and improve results. 

According to eMarketer last year programmatic programming hit approximately $15 billion in advertising revenue accounting for 50% of the US digital display market. However, eMarketer sees significant growth coming from programmatic direct, which will reach $8.57 billion in spending by 2016 to represent 42.0% of programmatic ad expenditure in the US-up from 8.0% this year.

Sibannac Media has achieved a number of key business objectives including the successful prototype deployment of Sibannac Media's proprietary marketing tactics, the development of an expanding customer base, and a clearly identifiable path to profitability, growth, and long-term success.  The vision for Sibannac Media is to develop a network of relevant lifestyle sites to businesses and consumers. The plan for Sibannac Media is to not only build a top shelf network but to acquire some of the best applications, sites and online technology for this industry. The plan leverages the online advertising space as it relates to exchanges, ad networks and RTB (Real Time Bidding) and introduces a real value and necessary advertising service to the business community.

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The immediate goal is to continue marketing the completed 15 sites. Each site will generate users interested in a specific content category, advertisers through Sibannac Media's ad network will be able to reach these users based on their interests, behavior, geography, time of day and various other methods. Sibannac Media has launched SibannacIndex.com, LigaStars.com, YouScube.com, FullCourStars.com, CyclerLife.com, DynoMoves.com, LeafExaminer.com, Live2100.com, ScienceFly.com, MobilityPress.com, Lifeisaboard.com, SpyChatter.com, CagePound.com, ChildCompass.com and nputgaming.com. Collectively these sites typically generate over 15 million unique users monthly.  These sites already have more eyeballs per month than the Discover.com, msnbc.com and Weedmaps.com (2.1 MUU) a leading site in the marijuana industry.  By creating a system of testing and innovating to increase traffic, Sibannac Media will scale by continuously adding more sites.

Sibannac Media will pursue three main components to drive growth:

1. Digital Media Publishing Company - This division owns and operates web sites for multi-screen (desktop, mobile, TV, tablet) audiences

2. Ad Network - As Sibannac Media scales in site development they will build an Ad Network for advertisers to reach their highly targeted online audience.

3. Ad Exchange / Platform -  Sibannac Media will use 3rd party platform technology allowing them access to ad exchanges for the purpose of buying and selling ad inventory.

The core product of Sibannac Media is the online audience generated through Sibannac Media's proprietary ad network through marketing tactics and organic growth. This online audience generates ad impressions as they visit Sibannac Media's network of sites. The Sibannac Media advantages are:

  • Cost - Using 3rd party technology and outsourcing platforms Sibannac Media will pass on significant savings to the advertiser without sacrificing quality.

  • Quality - Sibannac Media will be able to match advertiser campaigns to a targeted audience based on behavior, location, time and content. The Sibannac Media network will offer rich media ad units, interstitials, road blocks, sliding home page banners and other unique ad formats to deliver high performing metrics.

  • Exposure - Video mobile and display ads are displayed on a vast network of web pages.

  • Reliability - Sibannac Media uses 3rd party anti-fraud technology to provide high quality audiences to advertisers and has an internal human auditing team to ensure traffic quality

  • Flexibility - Sibannac Media plans to allow advertisers an automated system where they can manage their own campaigns or a Sibannac Media account manager to successfully set up and manage their campaigns.

b.  Sibannac Media Market:

Global digital ad spend is predicted by eMarketer to rise from $132 billion in 2014 to $194 billion in 2018 surpassing television revenue. The US Internet publishing, broadcasting, and search portal industry includes about 3,200 companies with combined annual revenue of about $58 billion. The most significant trend is the emergence of online ad network companies using state-of-the-art cloud computing environments and high-performance ad server technology to deliver superior returns and savings for both advertisers and website publishers.   Three basic methods marry advertising demand with website publisher supply.

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1. First is the direct sales method.  Some website publishers have a sales force that actively sells website real estate. This method is more costly however, generates a higher value for ad inventory.

2. Second is the use of Ad networks.  These are systems of lower paying, lower quality advertisements tapped by the publisher to fill remnant inventory. This ensures more ad space is sold and generating revenue, albeit at a fairly low cost. Today, most large online publishers (websites) sell remnant inventory of ad space through ad networks. Typically, 10% to 60% of a large publisher's total inventory is classified as remnant and sold through advertising networks. Smaller publishers often sell their entire inventory through ad networks.

3. Real time bidding (RTB) has emerged as the third method to match the supply of Internet publishers with advertising demand based upon specific user characteristics.  Real time bidding (RTB) is an online enabling technology for media purchases.

RTB enables media buyers to find audiences on a massive scale at an advantaged price through much-reduced effort. This, in turn, helps drive performance by ensuring an advertiser's ad is seen by the audiences most likely to respond, while minimizing marketing costs and human resource investment. Website owners are able to make their ad inventory available to a broad array of buyers and to sell their website real estate to the highest bidder.

The following chart shows the projected growth of Real Time Bidding market:

c.  Sibannac Media Marketing & Sales Plan

As a business, Sibannac Media's "product" is essentially websites; an ad network and a software solution combining 3rd party technology with custom solutions.  Sibannac Media will offer these solutions in a 100% self-service system that enables customers to do everything including selling and buying an ad, funding their accounts, and generating real-time reports.

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Sibannac Media will sell industry standard ad units on a Cost Per Thousand (CPM) basis. This is achieved through a programmatic system of Ad Networks and Ad Exchanges using Agency Trading Desks (ATD), Supply Side Platforms (SSP) and Demand Side Platforms (DSP).  Sibannac Media's principal customers are advertisers that generally fall into three overlapping categories:

1. Advertising Agencies - Companies that place ads on behalf of other companies.

2. Direct Advertisers - Companies that place ads for their own products or services.

3. Ad Networks / Publishers - Publishers wanting to participate in the Sibannac Media Network and Networks wanting to participate in the Sibannac Media Exchange.

 Sibannac Media envisions and will pursue a three-phase marketing program as follows:

            1.         Phase One: Sibannac Media develops and markets responsive websites (desktop, mobile, tablet) to generate audiences for the purpose of generating quality ad inventory, which is monetized through programmatic advertising, direct sales and content marketing services. Sibannac Media plans to scale from 10 million unique users in the first quarter of operations to 30 million monthly unique users by end of 2016.

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            2.         Phase Two: Sibannac Media develops additional marketing tactics, including direct sales, press releases, content updates, article submittals, testimonials, endorsements, social media marketing (i.e. blogs, podcasts, webinars, and videos), an affiliate program, link campaigns, and a direct e-mail marketing program (with the help of an e-mail marketing service) to generate greater brand awareness for The Company and it's advertisers.

            3.         Phase Three is all about Sibannac Media leveraging technology and relationships to meet the needs of online publishers, advertisers and ad agencies. Advertisers and ad agencies are seeking consistent and quality web sites suitable for their brand's advertising campaigns. Online publishers are driven to maximize their site's exposure to select audiences so they can increase their value to advertisers. Sibannac Media will be a facilitator for both advertisers and publishers to achieve their goals.

Additional elements of the sales plan include:

  • Development of direct response campaigns using Sibannac Media's network and customized landing pages to measure, optimize and maximize conversion.

  • Sibannac Media will use new video ad units and other advanced media formats to augment Sibannac Media sales strategy.

  • Sibannac Media plans to develop a strong referral program to reward existing clients and business partners that send potential members to Sibannac Media.

  • Sibannac Media plans to explore various promotional tactics to boost Sibannac Media's standing and generate leads including: telesales; corporate sponsorships; social media, webinars; donations; direct mail; and participation at industry trade shows and conferences.

  • Sibannac Media will hire a senior sales executive to sell ad inventory and "content marketing solutions" direct to advertisers and ad agencies.

  • Sibannac Media will invest resources towards mobile technology and emerging markets.

d. Sibannac Media Competition

Sibannac Media competition falls into two broad categories; competition for advertisers against other digital advertising platforms and competition for the consumers (eyeballs) that advertisers want to reach against other marijuana industry related websites.

From the standpoint of other digital advertising platforms, Google attracts 40 percent of total US digital advertising spending, according to eMarketer. Facebook holds the second-largest share, with about 7 percent. Other market leaders include Microsoft (6 percent), Yahoo! (6 percent), and IAC (3 percent).   Highlights of other advertising networks are presented as follows:

Google AdSense:  Google's AdSense is one of the largest and perhaps the best known display advertising network. This platform allows publishers to monetize standard display ads, mobile and video, and search results as well.  It's free to sign up for AdSense and the program will accept the smallest of publishers provided they meet certain quality guidelines. AdSense also integrates into other Google products and generally pays publishers monthly for revenue generated the previous month.

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AdBlade:  This network of premium publishers currently consists of about 1,000 high profile publishers.  It offers publishers an opportunity to fill IAB standard ad units (such as the 300×250 rectangle or 728×90 leaderboard) as well as a proprietary "NewsBullet" unit designed to increase engagement and CPMs. For smaller publishers, AdBlade isn't much use. This network accepts only ultra-premium publishers such as Fox News, Daily News, etc.

Advertising.com:  A unit of AOL, this network has nearly 2 billion impressions monetized daily and offers opportunities for publishers to monetize display ads, video, mobile, and some custom implementations.  It also offers Display University, an online educational resource for publishers and advertisers looking to learn more about display ads, the process of building a campaign, and executing on creative.

Chitika:  Chitika boasts a network of more than 300,000 publishers, making it one of the largest networks. Chitika ads can be used on their own, or alongside ads from other networks (such as AdSense).  Chitika is also open to just about anyone, and the process for getting approval and ad implementation is generally fast. Chitika is a popular alternative for advertisers unable to use or frustrated with AdSense, with great results in certain niches and less impressive earnings in others.

Clicksor:  Clicksor ads can be served alongside ads from other networks. If the minimum price of an ad is not met, the placement can be filled with default ads to ensure a 100% fill rate. When Clicksor is able to provide an ad that meets the specified CPM or CPC threshold, that ad will run.  Clicksor features traditional display ads, inline text links, and more custom implementations such as pop-unders and interstitials. Publishers get paid every 15 days, can get a revenue split as high as 85%, and can participate in a referral program.

Google became popular with advertisers in part through the comparative accessibility and affordability of their AdWords program, which essentially made it possible for nearly anyone to advertise online.  Over time, Google's AdWords program has become increasingly complex.  Although Yahoo! and Microsoft deliver much lower click volumes - many advertisers find their conversion rates better than Google, and hence profitability is higher.

Several issues like these have already opened the door to a new generation of online marketing providers.  New companies (including  Sibannac Media) can offer better terms, and have better technology through the use of open-source applications and cloud-based computing environments.  Freed from server and software maintenance and challenging capacity issues - second-generation companies like Sibannac Media are now able to provide substantially greater ROI for their customers at much more competitive rates.

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2. Sibannac HR

We transferred the business assets of PCI (an acquired business as described in Form 8K/A dated January 15, 2016)  to our division Sibannac HR which is dedicated to labor and accounting management systems for the cannabis industry.  Sibannac management understands the wide range of issues that cannabis businesses encounter, and is applying the systems that it has developed to assist the industry. Key to Sibannac HR's success is its alignment with a banking compliance solution. Sibannac HR continues to vigorously pursue these relationships

Sibannac's initial product offerings are PEO and insurance services through its subsidiary, Sibannac HR. Sibannac HR is the exclusive sales and marketing arm of National PEO in the cannabis market.

1. Human Resources management.

National PEO develops customized human resources plans for clients to assure compliance with the latest labor laws and regulations. Additionally, National works with clients to help develop a culture that will allow clients to develop and retain talent. Ultimately, National helps ensure that employees are treated fairly and that the employer has an HR foundation that allows for growth and is protected.

  • Employee/Employer Handbook - National develops and maintains employee handbooks as labor laws change or as employer policies dictate in each state in which the client has employees.

  • Conflict Resolution - National can act as a resource, mediator or witness for employee employer conflicts, claims or disputes regarding wages, harassment, discipline, etc.

  • Benefits Support - Benefits specialists are at the business's disposal. Whether it is for the group or an individual question or concern, National will provide the answers quickly and efficiently.

  • Compliance - National works to ensure clients maintain proper compliance with all labor laws including Americans with Disabilities Act, Immigration and Naturalization Control Act of 1986, FMLA, FLSA and other important regulations.

  • Policy and Procedure Development - National experts provide templated policies and procedures that can be adapted to specific client need to ensure a safe, comfortable and productive work environment.

2. Employee Benefits: Health Insurance, Supplemental Insurance, 401k

National's proprietary plans and purchasing power enable businesses to affordably attract and retain high quality employees:

  • Health, Dental and Vision: National's MetLife plan allows clients to provide the finest ancillary benefits available at a competitive price.

  • Nexus brokers take each client's health plan to market with multiple carriers to ensure the best possible plan design and price.

  • COBRA compliance assistance

  • Section 125 cafeteria plan

  • Claims management

  • Long and Short-Term Disability Insurance

  • Term Life Insurance

  • No Cost 401k Retirement Plans saving $1,000's in plan administration

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3. Workers' Compensation

Workers' compensation insurance requires careful monitoring and administration. When faced with a claim or audit, employers can spend countless hours researching, responding and coping with the many aspects of workers' compensation claims. National provides the following workers' compensation services:

  • Safety Planning

  • Policy Administration

  • Injury Administration

  • Annual Audits Management

  • Certificates of Insurance

  • Small/no deposit plans with "pay-as-you-go" premium payments

  • Payroll Reporting and Record Keeping

  • Claims Management

  • Back-to-work Programs

4. Payroll Processing

National utilizes state-of the-art, industry leading technologies to ensure clients have maximum flexibility in their payroll processing. National systems adapt to client needs including:

  • Pay Frequency - weekly, bi-weekly, semimonthly or monthly.

  • Flexible Pay Period Dates

  • Pay Method - direct deposit, pay-cards or standard paper checks.

  • Reporting - standard and specialized reports, such as job costing, departmental reports or customized reports.

  • Payroll Tax Filing

  • Wage Garnishments

5. Workplace Safety

National maintains a robust safety team that provides risk management, safety consulting, and government compliance. Clients have access to a variety of resources, including independent safety consultants, advanced safety training for multiple industries, multimedia safety materials, and workers' compensation loss control specialists. National safety helps ensure clients comply with state and federal workplace safety guidelines while controlling workers' compensation costs. Services include:

  • Written Safety Programs

  • Claims Administration and Claims Cost Control

  • Risk Management

  • OSHA Compliance

  • Workplace Safety and Site Reviews

  • Onsite Safety Training Programs

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6. Files, Claims & Audits

National reduces employer risk by assuming many employer-related responsibilities. Clients can reduce risk and focus on building business while National manages the following:

  • Employee Record Keeping - Gathering, verifying, preparing and maintaining all employee forms such as I-9, W-4, and W-2. Support for employee evaluations, hiring/firing documentation, corrective action, disputes

  • Claims - National works with clients on the evaluation, negotiation and resolution of unemployment claims, Workers' Compensation claims, harassment or other employee/employer related claims.

  • Audits - National and its team of subject area experts administer all audits including workers' compensation, EEOC, DOL and others.

  • Unemployment Administration - As the employer of record, National NATIONAL is responsible for the management and resolution of state unemployment claims.

7. Insurance Services: Nexus Partners Insurance Solutions:

Nexus Partners is a full service insurance agency with numerous affiliates and brokers around the country.  Nexus currently utilizes wholesale brokers as its key provider of business insurance to its cannabis clients. Nexus provides many coverage options from multiple carriers allowing clients to choose the policy and price that best meets their needs and budget. Nexus serves commercial clients in most industries and geographic areas.

Business of Our Company 

Our Commitment

To our shareholders, employees, patients, global partners, the environment and other stakeholders, we promise to act on our belief that integrity is the priceless ingredient of our company. We will operate with high standards of ethical behavior, effective governance, and we will foster a culture of transparency and dialogue with our stakeholders to improve our understanding of their needs. We take our commitment to economic, social and environmental sustainability seriously, and extend this expectation to our partners..

We promote a diverse workforce and inclusive culture. The health, safety, work-life balance, professional development, and equitable, respectful treatment of our employees are among our highest priorities.

At the date of this filing, 23 states and the District of Columbia have adopted medical or adult use legislations. Industry analysts estimate 14 more states will follow suit by 2018.[1]

Competition

There are a number of other emerging companies that are exploring similar services strategies. Sibannac believes that products that they develop will be competitive in the marketplace with other products serving the same market sectors. Sibannac management believes that our team's experience bringing products to market will

[1] ArcView Market Research. (2014). The State of Legal Marijuana Markets, 2nd Edition.

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prevail and the Company will be unaffected at this stage by other developmental companies. Sibannac will strive to be the first to bring medicines to market in this therapeutic area in order to gain a competitive advantage.

PLAN OF OPERATIONS

Our Budget for operations in next fiscal year, 2016, is as follows:

APPLICATION OF FUNDS (1)

 

 

Working Capital

$250,000

General & Administrative

$250,000

Marketing & PR

$500,000

Total

 

$1,000,000

(1) These items are variable and no commitment has been obtained from any source.


We may change any or all of the budget categories in the execution of its business model. None of the line items are to be considered fixed or unchangeable. We may need substantial additional capital to support its budget. We have recognized minimal revenues from our existing operational activities.

We may need to raise additional funds to support not only our expected budget, but our continued operations. We cannot make any assurances that we will be able to raise such funds or whether we would be able to raise such funds with terms that are favorable to us. We may seek to borrow monies from lenders at commercial rates, but such lenders will probably be at higher than bank rates, which higher rates could, depending on the amount borrowed, make the net operating income insufficient to cover the interest.

If we are unable to begin to generate enough revenue to cover our operational costs, we will need to seek additional sources of funds. Currently, we have no committed source for any funds as of date hereof. No representation is made that any funds will be available when needed. In the event funds cannot be raised if and when needed, we may not be able to carry out our business plan and could fail in business as a result of these uncertainties.

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COMPETITION, MARKETS, REGULATION AND TAXATION

Competitive Conditions

There are competitors in the business services industry with far greater resources, financial and marketing sources, which might compete with our Company. Such resources could overwhelm our Company's efforts and cause failure of our Company. (See "Risk Factors")

Title to Property

None. We have no patents at this time.

Government Contracts

None.

Company Sponsored Research and Development

None at this time.

Number of Persons Employed

As of August 31, 2015, our Company has two full-time employees. Our officers dedicate 30-40 hours per week to our Company. We have six part-time employees.

RISK FACTORS

An investment in our Company's securities involves a high degree of risk. You should carefully consider the following risk factors and all the other information contained in this document before you decide to buy our Company's shares. If any of the following risks related to our Company's business actually occurs, its business, financial condition and operating results would be adversely affected.

RISKS RELATED TO OUR COMPANY AND THE BUSINESS

We depend upon our key personnel and our ability to attract and retain employees.

Our future growth and success depend on our ability to recruit, retain, manage and motivate our employees. The loss of the services of any member of our senior management or the inability to hire or retain experienced management personnel could adversely affect our ability to execute our business plan and harm our operating results.

We expect to face intense competition, often from companies with greater resources and experience than we have.

The cannabis industry is in turmoil and subject to rapid change. The industry continues to expand and evolve as an increasing number of competitors and potential competitors enter the market. Many of these competitors and potential competitors have substantially greater financial, technological, and experience than we have. Some of these competitors and potential competitors have more experience than we have in the development of our business. In addition, our services, if

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successfully developed, will compete with, service offerings from large and well-established companies that have greater marketing and sales experience and capabilities than we or our collaboration partners have. If we are unable to compete successfully, we may be unable to grow and sustain our revenue.

We have limited history of operations and we may incur losses.

As a company with no operating history, we are subject to all of the risks associated with a new business enterprise. Our prospects must be considered in light of the risks, expenses and difficulties frequently encountered by companies in their early stages of development, especially in challenging and competitive industries. We are unable to give you any assurance that we will generate material revenues or that any revenues generated will be sufficient for us to continue operations or achieve profitability.

We have limited assets.

As of the August 31, 2015, we have limited assets and net worth of approximately $50,000. Our success will initially depend upon continuing our business and growing our business by raising the necessary funds to expand operations.

For future additional capital requirements, we may raise capital by issuing equity or convertible debt securities, and when we do, the percentage ownership of our existing stockholders may be diluted.

We are an "emerging growth company" under the Jumpstart Our Business Startups Act. We cannot be certain if the reduced reporting requirements applicable to emerging growth companies will make our shares of common stock less attractive to investors.

We are and will remain an "emerging growth company" until the earliest to occur of (a) the last day of the fiscal year during which its total annual revenues equal or exceed $1 billion (subject to adjustment for inflation), (b) the last day of the fiscal year following the fifth anniversary of its initial public offering, (c) the date on which we, during the previous three-year period, issued more than $1 billion in non-convertible debt securities, or (d) the date on which we are deemed a "large accelerated filer" (with at least $700 million in public float) under the Exchange Act.

For so long as we remain an "emerging growth company" as defined in the JOBS Act, we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies" as described in further detail in the risk factors below. We cannot predict if investors will find its shares of common stock less attractive because we will rely on some or all of these exemptions. If potential investors find our shares of common stock less attractive as a result, there may be a less active trading market for its shares of common stock and its stock price may be more volatile.

Notwithstanding the above, we are also currently a "smaller reporting company", meaning that we are not an investment company, an asset-backed issuer, or a majority-owned subsidiary of a parent company that is not a smaller reporting company and have a public float of less than $75 million and annual revenues of less than $50 million during the most recently completed fiscal year.

If we avail ourselves of certain exemptions from various reporting requirements, the reduced disclosure may make it more difficult for investors and securities analysts to evaluate our Company and may result in less investor confidence.

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We may require substantial additional financing in the future, but we are uncertain whether such financing will be available to us.

We will require significant additional capital to expand our operations. We need approximately $500,000 in working capital requirements through 2015 into 2016. We give no assurance that revenues from operations will generate cash flow sufficient to finance our operations and growth. We can give you no assurance that we will be able to obtain additional financing or capital on terms we consider to be reasonable.

Additional financing will be sought from a number of sources, including but not limited to additional sales of equity or debt securities, or loans from banks, other financial institutions or affiliates of our Company. If additional funds are raised by the issuance of our securities, such as through the issuance of additional shares, convertible securities, then the ownership interest of our existing shareholders (including investors in this Offering) may be diluted. If additional funds are raised by the issuance of debt or other equity instruments, we may become subject to certain operational limitations (i.e., negative operating covenants), and such debt holders may have rights senior to those of the holders of equity.

If adequate funds are not available on acceptable terms, we may be unable to fund the expansion of our business.

We depend on our executive management to operate our Company and the loss of certain members of management would materially and negatively affect us.

Our success materially depends upon the efforts of our management and other key personnel. If we lose the services of Messrs. Heineck or Kimerer or any other executive officers or significant employees, our business would likely be materially and adversely affected.

Our future success also depends, in part, upon our ability to attract and retain qualified management personnel and other employees. Any difficulties in obtaining, retaining and training qualified employees could have a material adverse effect on us. Any difficulties in obtaining and retaining qualified officers and employees could have a material adverse effect on us.

We may not realize a profit on our business acquisitions in a timely manner, which could materially and adversely affect us.

We may not realize a significant cash return if debt service exceeds net operating income on our business acquisitions. Therefore, if any of our business activities are subject to delays or operating losses, our growth may be hindered and our results of operations and cash flows may be adversely affected. In addition, new acquisition activities, regardless of whether or not they are ultimately successful, typically require substantial time and attention from management. Furthermore, maintaining our management capabilities involves significant expense, including compensation expense for our personnel and related overhead. Therefore, if we do not realize a positive cash flow return on our business activities in order to offset these costs and expenses, we could be materially and adversely affected.

Conflicts of Interest

Certain conflicts of interest may exist between our Company and our officers and directors. They have other business interests to which they devote their attention, and may be expected to continue to do so although management time should be devoted to the business of our Company. As a result, conflicts of interest may arise

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that can be resolved only through exercise of such judgment as is consistent with fiduciary duties to our Company.

Need for Additional Financing

Our Company has budgeted funds expected to be enough to carry on the proposed business through the first quarter of 2016.  In the event our Company decides to expand our operations we may have very limited funds to do so. The ultimate success of our Company may depend upon our ability to raise additional capital. Our Company is continuing to assess the need for additional capital. If additional capital is needed, there is no assurance that funds will be available from any source or, if available, that they can be obtained on terms acceptable to our Company. If not available, our Company's operations will be limited to those that can be financed with its modest capital.

Limited Revenue History.

Our Company must be regarded as a new or development venture with all of the unforeseen costs, expenses, problems, risks and difficulties to which such ventures are subject.

No Assurance of Success or Profitability.

There is no assurance that our Company will ever operate profitably. There is no assurance that we will generate profits, or that the value of our Company's shares will be increased thereby.

Lack of Diversification.

Because of the limited financial resources that we have, it is unlikely that we will be able to diversify our operations. Our probable inability to diversify our activities into more than one area will subject us to economic fluctuations within our business or industry and therefore increase the risks associated with our operations.

Dependence upon Management. Limited Participation of Management.

Our Company will be heavily dependent upon our management skills, talents, and abilities, as well as our consultants, to implement our business plan, and may, from time to time, find that our inability to devote full time attention to the business of our Company results in a delay in progress toward implementing our business plan.

Dependence upon Outside Advisors.

To supplement the business experience of our officers and directors, we may be required to employ accountants, technical experts, appraisers, attorneys, or other consultants or advisors. Our Company's Management, without any input from stockholders, will make the selection of any such advisors. Furthermore, it is anticipated that such persons may be engaged on an "as needed" basis without a continuing fiduciary or other obligation to our Company. In the event our Company considers it necessary to hire outside advisors, they may elect to hire persons who are affiliates, if they are able to provide the required services.

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Based on our current cash reserves, we will have relatively small operational budget for the operations which we cannot expand without additional raising capital

If we are unable to begin to generate enough revenue to cover our operational costs, we will need to seek additional sources of funds. Currently, we have no committed source for any funds as of date hereof. No representation is made that any funds will be available when needed. In the event funds cannot be raised if and when needed, we may not be able to carry out our business plan and could fail in business as a result of these uncertainties.

RISK FACTORS RELATED TO OUR STOCK

We may, in the future, issue more shares which could cause a loss of control by our present management and current stockholders.

We may issue further shares as consideration for the cash or assets or services out of our authorized but unissued common stock that would, upon issuance, represent a majority of the voting power and equity of our Company. The result of such an issuance would be those new stockholders and management would control our Company, and persons unknown could replace our management at this time. Such an occurrence would result in a greatly reduced percentage of ownership of our Company by our current shareholders, which could present significant risks to investors.

We have not paid dividends but may in the future.

We have not paid dividends on our common stock. While we intend to pay dividends in future after allocating adequate reserves, we do not guarantee, commit and undertake that dividends will be paid in the foreseeable future.

A limited public market exists for our common stock at this time, and there is no assurance of a future market.

There is a limited public market for our common stock, and no assurance can be given that a market will continue or that a shareholder ever will be able to liquidate his investment without considerable delay, if at all. If a market should develop, the price may be highly volatile. Factors such as those discussed in the "Risk Factors" section may have a significant impact upon the market price of the shares offered hereby. Due to the low price of our securities, many brokerage firms may not be willing to effect transactions in our securities. Even if a purchaser finds a broker willing to effect a transaction in our shares, the combination of brokerage commissions, state transfer taxes, if any, and any other selling costs may exceed the selling price. Further, many lending institutions will not permit the use of our shares as collateral for any loans.

The regulation of penny stocks by SEC and FINRA may discourage the tradability of our securities.

We are a "penny stock" company. None of our securities currently trade in any market and, if ever available for trading, will be subject to a Securities and Exchange Commission rule that imposes special sales practice requirements upon broker-dealers who sell such securities to persons other than established customers or Accredited Investors. For purposes of the rule, the phrase "Accredited Investors" means, in general terms, institutions with assets in excess of $5,000,000, or individuals having a net worth in excess of $1,000,000 or having an annual income that exceeds $200,000 (or that, when combined with a spouse's income, exceeds

-17-



$300,000). For transactions covered by the rule, the broker-dealer must make a special suitability determination for the purchaser and receive the purchaser's written agreement to the transaction prior to the sale. Effectively, this discourages broker-dealers from executing trades in penny stocks. Consequently, the rule will affect the ability of purchasers in this offering to sell their securities in any market that might develop therefore because it imposes additional regulatory burdens on penny stock transactions.

In addition, the Securities and Exchange Commission has adopted a number of rules to regulate "penny stocks". Such rules include Rules 3a51-1, 15g-1, 15g-2, 15g-3, 15g-4, 15g-5, 15g-6, 15g-7, and 15g-9 under the Securities and Exchange Act of 1934, as amended. Because our securities constitute "penny stocks" within the meaning of the rules, the rules would apply to us and to our securities. The rules will further affect the ability of owners of shares to sell our securities in any market that might develop for them because it imposes additional regulatory burdens on penny stock transactions.

Shareholders should be aware that, according to Securities and Exchange Commission, the market for penny stocks has suffered in recent years from patterns of fraud and abuse. Such patterns include (i) control of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer; (ii) manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases; (iii) "boiler room" practices involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons; (iv) excessive and undisclosed bid-ask differentials and markups by selling broker-dealers; and (v) the wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired consequent investor losses. Our management is aware of the abuses that have occurred historically in the penny stock market. Although we do not expect to be in a position to dictate the behavior of the market or of broker-dealers who participate in the market, management will strive within the confines of practical limitations to prevent the described patterns from being established with respect to our securities.

Rule 144 sales in the future may have a depressive effect on our stock price.

Our shareholders may be able to use Rule 144 as an exemption for resale, but resales under Rule 144 could have a depressive effect on the market trading price, if any. Investors will have no effective way to combat this.

Rule 144 Sales

All of the outstanding Shares will be "restricted securities" within the meaning of Rule 144 under the Securities Act of 1933, as amended. As restricted Shares, these Shares may be resold only pursuant to an effective registration statement or under the requirements of Rule 144 or other applicable exemptions from registration under the Act and as required under applicable state securities laws.

Our stock will in all likelihood continue to be thinly traded and as a result you may be unable to sell at or near ask prices or at all if you need to liquidate your shares.

The shares of our common stock may continue to be thinly-traded on the OTC Pink or OTCQB under the symbol SNNC, meaning that the number of persons interested in purchasing our common shares at or near ask prices at any given time may be relatively small or non-existent. This situation is attributable to a number of factors, including the fact that we are a small company which is relatively unknown to stock analysts, stock brokers, institutional investors and others in the investment community that generate or influence sales volume, and that even if we came to the attention of such persons, they tend to be risk-averse and would be reluctant to follow an unproven, early stage company such as ours or purchase or recommend the purchase of any of our Securities until such time as we became

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more seasoned and viable. As a consequence, there may be periods of several days or more when trading activity in our Securities is minimal or non-existent, as compared to a seasoned issuer which has a large and steady volume of trading activity that will generally support continuous sales without an adverse effect on Securities price. We cannot give you any assurance that an active public trading market for our common Securities will ever develop or be sustained, or that any trading levels will be sustained. Due to these conditions, we can give investors no assurance that they will be able to sell their shares at or any prices or at all if they need money or otherwise desire to liquidate their securities of our Company.

Our common stock market prices may be volatile, which substantially increases the risk that you may not be able to sell your Securities at or above the price that you may pay for the security.

Because of the limited trading market for our common stock and because of the possible price volatility, you may not be able to sell your shares of common stock when you desire to do so. The inability to sell your Securities in a rapidly declining market may substantially increase your risk of loss because of such illiquidity and because the price for our Securities may suffer greater declines because of our price volatility.

The price of our common stock that will prevail in the market after this offering may be higher or lower than the price you may pay. Certain factors, some of which are beyond our control, that may cause our share price to fluctuate significantly include, but are not limited to the following:

  • Variations in our quarterly operating results;

  • Loss of a key relationship or failure to complete significant transactions;

  • Additions or departures of key personnel; and

  • Fluctuations in stock market price and volume.

Additionally, in recent years the stock market in general, and the personal care markets in particular, have experienced extreme price and volume fluctuations. In some cases, these fluctuations are unrelated or disproportionate to the operating performance of the underlying company. These market and industry factors may materially and adversely affect our stock price, regardless of our operating performance. In the past, class action litigation often has been brought against companies following periods of volatility in the market price of those companies common stock. If we become involved in this type of litigation in the future, it could result in substantial costs and diversion of management attention and resources, which could have a further negative effect on your investment in our stock.

Our business is highly speculative and the investment is therefore highly risky.

Due to the speculative nature of our business, it is probable that the investment in shares offered hereby will result in a total loss to the investor. Investors should be able to financially bear the loss of their entire investment. Investment should, therefore, be limited to that portion of discretionary funds not needed for normal living purposes or for reserves for disability and retirement.

Any economic downturn and uncertainty in the financial markets and other adverse changes in general economic or political conditions may adversely affect our industry, business and results of operations.

The global credit and financial markets have continued to experience disruptions, including diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth, increases in unemployment rates, and uncertainty about economic stability. There can be no assurance that there will not

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be future deterioration in credit and financial markets and confidence in economic conditions. These economic uncertainties affect businesses such as ours in a number of ways, making it difficult to accurately forecast and plan our future business activities. We are unable to predict the likely duration and severity of any disruptions in the credit and financial markets and adverse global economic conditions, and if any uncertain economic conditions continue or further deteriorate, our business and results of operations could be materially and adversely affected.

Potential changes in accounting practices and/or taxation may adversely affect our financial results.

We cannot predict the impact that future changes in accounting standards or practices may have on our financial results. New accounting standards could be issued that change the way we record revenues, expenses, assets and liabilities. These changes in accounting standards could adversely affect our reported earnings. Increases in direct and indirect income tax rates could affect after tax income. Equally, increases in indirect taxes could affect our products affordability and reduce our sales.

We will rely on third parties for services in conducting our business and any disruption of these relationships could adversely affect our business.

We will have contracts with third parties. If these relationships are disrupted for any reason our results of operation and financial condition could be adversely affected.

There is a risk that shareholders will never receive dividends.

We do not guarantee, commit or undertake to issue a dividend to shareholders for the next several years even if cash were available to do so as we would re-invest those available funds back into the operations of our Company. We cannot assure shareholders that we will achieve results or maintain a tax status that allow any specified level of cash distribution or year-to-year increases in cash distribution.

Highly Speculative Nature of Investment.

Due to the highly speculative nature of our business, it is likely that the investment in the shares offered hereby will result in a total loss to the investor. Investors should be able to financially bear the loss of their entire investment. Investment should, therefore, be limited to that portion of discretionary funds not needed for normal living purposes or for reserves for disability and retirement.

Reporting Information.

Our Company is not subject to the full reporting requirements under the Securities and Exchange Act of 1934, only reporting under Section 15(d). As a result, shareholders will not have access to the all of the information required to be reported by publicly held Section 12g registered companies under the Securities and Exchange Act and the regulations thereunder. Our Company intends to provide our shareholders with annual reports containing financial information prepared in accordance with Generally Accepted Accounting Principles as required by Sec. 13 of the Securities Exchange Act of 1934.

Long Term Nature of Investment

Investors should be aware of the long-term nature of an investment in our Company. Each investor will be required to represent that the securities purchased are for their own account, for investment purposes only and not with a view towards resale or distribution. The securities offered hereby may not be negotiated, assigned,

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or transferred without an opinion of counsel acceptable to our Company that transfer may be made without registration under the securities laws of the United States and applicable state laws. The securities offered hereby are restricted securities under the applicable securities laws of the United States or of the various states unless an exemption from registration is available. Therefore, the securities offered hereby may have to be held for an indefinite period of time. Investors who do not wish or who are not financially able to remain as investors for a substantial and indefinite period of time are advised against investment in the shares offered hereby.

Limited Financing - Lack of Loan Availability

There is no assurance that additional monies or financing will be available in the future or, if available, will be at terms favorable to our Company.

Our Company may borrow money to finance its operations on terms to be determined. Any such borrowing will increase the risk of loss to the investor in the event our Company is unsuccessful in repaying such loans.

Capital Resources

The only capital resources of our Company are our shares.

Description of Properties/Patents

(a) Real Estate None
(b) Oil and Gas None
(c) Patents None

 

BOARD OF DIRECTORS AND EXECUTIVE OFFICERS

Name

Age

Position

Daniel Allen

63

President, Chief Executive Officer and Director

Paul Dickman (1)

35

Chief Financial Officer

Chase Zeman

29

Secretary, Treasurer and Director

Travis Hair (2)

67

Director

Richard Heineck (1)

47

Director and President of Sibannac HR

Kirk Kimerer (1)(3)

49

President of Sibannac Media

 

(1)    Appointed March 4, 2015

(2)    Appointed April 7, 2015

(3)    Resigned as a Director August 31, 2015

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Daniel Allen, age 63, President, Chief Executive Officer and Director

Mr. Allen was appointed as an officer and director of our Company on August 25, 2014.  Mr. Allen has been a consultant in the areas of banking and financing for Blue Line Protection Group, Inc. since May 2014.  Between April 2014 and March 2014, Mr. Allen served as the Regional Vice President of Sunflower Bank in Longmont, Colorado.  Between June 2001 and April 2013, Mr. Allen was the Chairman and Chief Executive Officer of Mile High Banks in Longmont, Colorado.  Mr. Allen holds a Bachelor of Science in management and Finance from the University of Utah.

Paul Dickman, age 35, Chief Financial Officer

Mr. Dickman was appointed as an officer of our Company on March 4, 2015. Mr. Dickman has served as the chief financial officer for companies in a variety of industries, both domestically and abroad. He has successfully taken numerous companies through multiple fund raising transactions including private placements of debt and equity and initial public offerings. In addition to his work with the Company, Mr. Dickman, since 2009, has been the principal of Breakwater Corporate Finance, a consulting firm that offers services to early stage startups, small public companies and the brokerage community. Prior to establishing Breakwater Finance, he worked as an auditor with two large regional accounting firms, with an emphasis in auditing small, publicly-traded companies from 2002 to 2007. Between 2007 and 2009, Mr. Dickman was employed with a private equity investment firm in various capacities. Mr. Dickman received a bachelor's of science degree in finance and accounting and has been a licensed CPA since 2005.

Chase Zeman, age 29, Secretary, Treasurer and Director

Mr. Zeman was appointed an officer and director of our Company on August 25, 2014.  Mr. Zeman has been a Field Improvement Specialist at RGIS, LLC since October 2013.  Prior to that time, Mr. Zeman was a District Manager at RGIS, LLC (December 2012 through October 2013) and an Area Manager/District Manager for RGIS (October 2009 through December 2012).  RGIS, LLC provides management and inventory control for large retail stores and grocery chains.  Between March 2008 and October 2009, Mr. Zeman was a Store Manager at Game Crazy, a video game retailer.  Mr. Zeman holds a Bachelors' degree in Philosophy from the University of Boulder, Colorado.

Travis Hair, age 67, Director

Mr. Hair was appointed a Director of our Company on April 7, 2015. Mr. Hair was employed by Unigard Insurance Group between 1970 and 1979. While with Unigard, his duties included insurance underwriting, sales management and operational management responsibilities. In 1979, Mr. Hair joined Schaefer-Smith-Ankeney Insurance Agency as a stockholder and officer. His duties at SSA included operational management, oversight of an extensive agency reorganization and personal insurance sales. In 2002, Mr. Hair, as the senior partner of SSA, led the sale of SSA to Compass Bank. He supervised 130 employees as city president for SSA from 2002 until 2007. Between 2007 and 2012 Mr. Hair was the President of Rimrock Insurance Consulting, Inc. where he worked closely with banks, insurance agencies and various professional employers organizations seeking to build their insurance practice. Since 2012, Mr. Hair has been an associate with Crest Insurance Group. Mr. Hair graduated from North Texas State University in 1970.

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Richard Heineck, age 47, Director and President of Sibannac HR, a division of our Company

Mr. Heineck was appointed a Director of our Company and President of Sibannac HR, a division of our Company, on March 4, 2015. Mr. Heineck began his career in publishing and advertising. Between 1991 and 1998, he managed sales, production and editorial content for 17 magazine titles. In 1998, he started his own publishing company which he sold after two years. Between 2001 and 2004, he operated a communications and custom publishing firm that specialized in the resort and golf real estate markets. Between 2004 and 2008, Mr. Heineck operated a boutique finance company that aided affluent individuals and small businesses with their residential and commercial finance need. Between 2008 and 2012, Mr. Heineck was an independent consultant in the areas of sales, marketing and financing. In 2012, Mr. Heineck was asked to consult with National PEO on their sales, marketing and operations. Having successfully impacted the firm in those areas, he became Vice President of Sales & Marketing for National PEO, a position he has held between 2013 and March 2015. Mr. Heineck's initiatives to revise the company's sales tactics to more effectively sell-through all of the products services resulted in significantly higher revenue per client as well as greater retention. In 2014, he had positioned National PEO of Arizona to take advantage of the burgeoning legal marijuana industry through being a part of the overall compliance solution that allows legal marijuana businesses to bank. Mr. Heineck received his BA in English from the University of California, Santa Barbara in 1990.

Kirk Kimerer, age 49, President of Sibannac Media, a division of our Company and Former Director

Mr. Kimerer was appointed President of our Sibannac Media, a division of our Company, on March 4, 2015.  Mr. Kimerer was a Director of our Company from March 4, 2015 through August 31, 2015. Mr. Kimerer has over 20 years of experience in overseeing digital media operations. Mr. Kimerer was President of Apollo Media Network, a firm involved with digital media publishing, marketing and advertising, between 2013 and 2015. During 2012 and 2013 Mr. Kimerer oversaw Las Vegas Review Journal's digital media division, a property owned by Stephens Media, LLC. Between 2009 and 2012 Mr. Kimerer worked at LIN TV (NYSE: TVL) as Director of Digital Media sales. In 2008 Mr. Kimerer was Director of Digital Media with Maverick Media, owner and operator of radio stations in small-to-medium sized US markets. During 2007 and 2008, Mr. Kimerer was with E.W. Scripps (NYSE: SSP) as an Internet Sales Manager. Mr. Kimerer was with Belo Interactive (NYSE: BLC) from 2003 to 2007 and Gannett (NYSE: GCI) from 1999 to 2003 as a digital media executive. Between 1992 and 1997, Mr. Kimerer spearheaded the launch of Axon Television Network. Mr. Kimerer was the inventor of Codependency, The Game. Mr. Kimerer attended the Walter Cronkite School of Journalism, received a degree in Political Science from Arizona State University with a Special Emphasis in Latin American Studies, a Film Certification from the University of Southern California and a Spanish Proficiency Certificate of Completion from Salamanca, Spain.

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COMPENSATION

Executive and Directors Compensation

The following table sets forth certain information concerning compensation paid by the Company to its sole officer for the fiscal years ended August 31, 2015, 2014 and 2013 (the "Named Executive Officers"):

SUMMARY COMPENSATION TABLE

Name & Position

Year

Salary

($)

Bonus

($)

Stock awards

($)

Option awards

($)

Non-equity incentive plan compensation

($)

Non-qualified deferred compensation earnings

($)

All other compensation

($)

Total

($)

Daniel Allen, President and CEO (1)

2015

$-0-

$-0-

$ -0-

$ -0-

$ -0-

$-0-

$-0-

$-0-

2014

$-0-

$-0-

$ -0-

$ -0-

$ -0-

$-0-

$-0-

$-0-

Paul Dickman, CFO (2)

2015

$24,300

$-0-

$ -0-

$ -0-

$ -0-

$-0-

$-0-

$24,300

Chase Zeman, Secretary & Treasurer (1)

2015

$-0-

$-0-

$ -0-

$ -0-

$ -0-

$-0-

$-0-

$-0-

2014

$-0-

$-0-

$ -0-

$ -0-

$ -0-

$-0-

$-0-

$-0-

Richard Heineck, President of Sibannac HR Division

2015

$-0-

$-0-

$ -0-

$ -0-

$ -0-

$-0-

$-0-

$-0-

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Name & Position

Year

Salary

($)

Bonus

($)

Stock awards

($)

Option awards

($)

Non-equity incentive plan compensation

($)

Non-qualified deferred compensation earnings

($)

All other compensation

($)

Total

($)

Kirk Kimerer, President of Sibannac Media Division (2)(3)(5)

2015

$-0-

$-0-

$ -0-

$ -0-

$ -0-

$-0-

$-0-

$-0-

2014

$-0-

$-0-

$ -0-

$ -0-

$ -0-

$-0-

$-0-

$-0-

Paul Petit, Former President & CEO (4)

2014

$-0-

$-0-

$-0-

$-0-

$-0-

$-0-

$-0-

$-0-

2013

$-0-

$-0-

$-0-

$-0-

$-0-

$-0-

$-0-

$-0-

 

(1)    Mr. Allen and Mr. Zeman were appointed officers of the Company on August 25, 2014.

(2)    Appointed March 4, 2015.

(3)    Kirk Kimerer has an employment agreement as President of Sibannac Media Division effective as of August 31, 2015.

(4)    Resigned as Officer on August 25, 2014.

(5)    Resigned as Director on August 31, 2015.

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DIRECTOR COMPENSATION

The following table sets forth certain information concerning compensation paid to the Company's directors during the years ended August 31, 2015 and 2014:

Name

Year

Fees earned or paid in cash

($)

Stock awards ($)

Option awards ($)

Non-equity incentive plan compensation ($)

Nonqualified deferred compensation earnings

($)

All other compensation ($)

Total

($)

Daniel Allen

2015

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

2014

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

                 

Chase Zeman

2015

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

2014

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

                 

Travis Hair

2015

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

2014

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

                 

Richard Heineck

2015

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

2014

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

                 

Kirk Kimerer (1)

2015

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

2014

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

                 

Paul F. Petit (2)

2014

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

                 

Alain S. Petit (2)

2014

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

$ -0-

______________________________

(1) Resigned as Director on August 31, 2015

(2) Resigned as Director on August 25, 2014

The term of office for each Director is one (1) year, or until his/her successor is elected at our Company's annual meeting and qualified. The term of office for each Officer of our Company is at the pleasure of the Board of Directors.

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The Board of Directors has no nominating, auditing committee or a compensation committee. Therefore, the selection of person or election to the Board of Directors was neither independently made nor negotiated at arm's length.

Employment Agreements

EMPLOYMENT AND CONSULTING AGREEMENTS

There are employment contracts and/or consulting agreements with our directors or officers during the fiscal year ended August 31, 2015 as follows:

Name

 

Compensation

 

Effective Date

Kirk Kimerer (1)

$8,333.33/monthly

August 31, 2015

(1) Resigned as Director as of August 31, 2015. Remains President of Sibannac Media Division

The Employment Agreement is attached hereto as Exhibits 10.8.

Identification of Certain Significant Employees

There are no employees of our Company other than the executive officers and consultants disclosed above who make, or are expected to make, significant contributions to our business, the disclosure of which would be material.

Conflicts of Interest

All of our Company's Officers and Directors have been in the past and may continue to be active in other business with other companies and on their own behalf. All Officers and Directors have retained the right to conduct their own independent business interests. These activities could give rise to potential conflicts with the interests of our Company. Pursuant to a resolution of the Board of Directors of our Company, the Officers and Directors have agreed that if a business opportunity in the cannabinoid services industry comes to the attention of its Officers and such opportunity is located within an area of interest as defined by resolution of the Board of Directors it will be made available to our Company and our Company shall have a right of first refusal with regard to such opportunity. If a business opportunity comes to the attention of a Director or Officer and such opportunity is located within an area of interest as defined by resolution of the Board of Directors or if an opportunity is presented to an Officer or Director in his capacity as such, it must be disclosed to our Company and made available to it. Officers and Directors may have an interest in prospects presented to our Company, so long as it is disclosed in writing and the transaction then approved by disinterested Directors. Any future designated areas of interest will be determined by our Company's Board of Directors after appropriate discussion and deliberation. If an Officer or Director owes a fiduciary duty to another entity similar to the duty owed to our Company, it is possible that the conflict may be impossible to resolve in a manner that is equitable to both entities.

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A majority of disinterested Directors may reject a corporate opportunity for various reasons, including geologic, geographic and economic considerations, among others. If we reject such opportunity, or if it rejects an area of interest and later an opportunity is presented to a Director or Officer within such area of interest, then any Director or Officer may avail himself or themselves of such opportunity. In addition, if a prospect or other opportunity is presented to our Company, and one or more of our Officers or Directors has an outside interest in the opportunity, the opportunity will be reviewed at a meeting of the Board of Directors and the interested Director(s) will not vote on issues relating to such opportunity.

To the best their ability and in the best judgment of the Officers and Directors of our Company, any conflicts of interest between our Company and the personal interests of the Officers and Directors of our Company will be resolved in a fair manner which will protect the interests of our Company.

SECTION 3 - SECURITIES AND TRADING MARKETS

Item 3.02 Unregistered Sales of Equity Securities

Per the Asset Acquisition Agreement reported in Item 1.01 above, the Company approved the issuance of 3,100,000 shares of the Company's restricted common stock to Apollo Media Network, Inc. The Company relied on the exemption from registration provided under Section 4(a)2 as a transaction not involving any public offering of securities, therefore exempt from Registration under the Securities Act of 1933.

On November 11, 2015, the Company completed an Asset Acquisition Agreement with Protection Cost, Inc. whereby the Company approved the issuance of 2,300,000 shares of the Company's restricted common stock. The Company relied on the exemption from registration provided under Section 4(a)2 as a transaction not involving any public offering of securities, therefore exempt from Registration under the Securities Act of 1933.

SECTION 5 - CORPORATE GOVERNANCE AND MANAGEMENT

Item 5.01 Changes in Control of Registrant

As a result of the Asset Acquisition Agreement with Apollo Media Network, Inc. discussed in Item 2.01, there was a resulting change in the ownership structure of the Company. 

PRINCIPAL STOCKHOLDERS

The following table sets forth information with respect to the beneficial ownership of our outstanding common stock as of August 31, 2015 by:

  • each person who is known by us to be the beneficial owner of five percent (5%) or more of our Company's common stock;

  • our executive officers, and each director as identified in the "Management - Executive Compensation" section; and

  • all of our Company's directors and executive officers as a group.

-28-



Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission and generally includes voting or investment power with respect to securities. Shares of common stock and options, warrants and convertible securities that are currently exercisable or convertible within 60 days of the date of this document into shares of our common stock are deemed to be outstanding and to be beneficially owned by the person holding the options, warrants or convertible securities for the purpose of computing the percentage ownership of the person, but are not treated as outstanding for the purpose of computing the percentage ownership of any other person.

The information below is based on the number of shares of our Company's common stock that we believe was beneficially owned by each person owning more than 5% of our common or preferred stock as of date hereof.

 

NAME AND ADDRESS OF BENEFICIAL OWNER (1)

NUMBER OF

SHARES

PERCENT OF

OUTSTANDING(2)

     

Daniel Allen, President, CEO and Director

2,506,500

14.3%

     

Paul Dickman, CFO

600,000

3.4%

     

Chase Zeman, Secretary, Treasurer and Director

2,630,594

15.0%

     

Travis Hair, Director

1,542,100

8.8%

     

Richard Heineck, Director and President of Sibannac HR

1,700,000

9.7%

     

Kirk Kimerer, President of Sibannac Media and former Director

3,100,000

17.7%

     

All executive officers and directors as a group, 5 people.

12,079,194

68.9%

(1)    The above officers and directors' address is c/o Sibannac, Inc., 9235 Bell Flower Way, Highlands Ranch, Colorado 80126

(2)    Based on 17,527,194 shares of the Company's common stock issued and outstanding at August 31, 2015.

Rule 13d-3 under the Securities Exchange Act of 1934 governs the determination of beneficial ownership of securities. That rule provides that a beneficial owner of a security includes any person who directly or indirectly has or shares voting power and/or investment power with respect to such security. Rule 13d-3 also provides that a beneficial owner of a security includes any person who has the right to acquire beneficial ownership of such security within sixty days, including through the exercise of any option, warrant or conversion of a security. Any securities not outstanding which are subject to such options, warrants or conversion privileges are deemed to be outstanding for the purpose of computing the percentage of outstanding securities of the class owned by such person. Those securities are not deemed to be outstanding for the purpose of computing the percentage of the class owned by any other person. Included in this table are only those derivative securities with exercise prices that the Company believes have a reasonable likelihood of being "in the money" within the next sixty days.

-29-



DESCRIPTION OF SECURITIES

Common Stock

Our Company is presently authorized to issue sixty million (60,000,000) shares of common stock. A total of 17,527,194 common shares are deemed issued and outstanding as of date hereof.

All shares, when issued, will be fully paid and non-assessable. All shares are equal to each other with respect to voting, liquidation, and dividend rights. Special Stockholders' meetings may be called by the Officers or Directors, or upon the request of holders of at least one-tenth (1/10th) of the outstanding shares. Holders of shares are entitled to one vote at any Stockholders' meeting for each share they own as of the record date set by the Board of Directors. There is no quorum requirement for Stockholders' meetings. Therefore, a vote of the majority of the shares represented at a meeting will govern even if this is substantially less than a majority of the shares outstanding. Holders of shares are entitled to receive such dividends as may be declared by the Board of Directors out of funds legally available therefore, and upon liquidation are entitled to participate pro rata in a distribution of assets available for such a distribution to Stockholders. There is no conversion, pre-emptive or other subscription rights or privileges with respect to any shares. Reference is made to our Articles of Incorporation and its By-Laws as well as to the applicable statutes of the State of Colorado for a more complete description of the rights and liabilities of holders of shares. It should be noted that the Board of Directors without notice to the Stockholders may amend the By-Laws. The shares of our Company do not have cumulative voting rights, which means that the holders of more than fifty percent (50%) of the shares voting for election of Directors may elect all the Directors if they choose to do so. In such event, the holders of the remaining shares aggregating less than fifty percent (50%) of the shares voting for election of Directors may not be able to elect any Director.

Preferred Stock

We are presently authorized to issue ten million (10,000,000) preferred shares of preferred stock. No shares of Preferred Stock are issued and outstanding as of date hereof.

Stockholders

Each Stockholder has sole investment power and sole voting power over the shares owned by such Stockholder. No Stockholder has entered into or delivered any lock up agreement or letter agreement regarding shares or options thereon. Under Nevada laws, no lock up agreement is required regarding our shares as it might relate to an acquisition.

Transfer Agent

Transhare Corporation is our transfer agent.  Their address is 4626 South Broadway, Englewood, CO 80113. Their telephone number is (303) 662-1112.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officer; Compensatory Arrangements of Certain Officers.

There were no changes to the Company's officers or Board of Directors as a result of this transaction.

-30-



SECTION 9 - FINANCIAL STATEMENTS AND EXHIBITS

 

Item 9.01 Financial Statements and Exhibits

(a) Financial Statements

            Unaudited Pro Forma Consolidated Balance Sheet, Statement of Operations and Notes

(d) Exhibits

Exhibit No.

Description

10.1

Asset Acquisition Agreement - Apollo Media Network, Inc. and Sibannac, Inc.

10.2

Agreement and Consent with Representations - Apollo Media Network, Inc. and Sibannac, Inc.

10.3

Assignment, Assumption and Release Agreement - Apollo Media Network, Inc., Kirk Kimerer, Jayson Lang, Travis Hair, Ray Bills and Margaret Kerr

10.4

Joint Written Consent in Lieu of Meeting of the Board of Directors and Shareholders of Apollo Media Network, Inc. regarding Acquisition Agreement

10.5

Assumption and Release Agreement - Apollo Media Network, Inc. and Sibannac, Inc.

10.6

Bill of Sale, Assignment and Quit Claim Deed from Kirk Kimerer to Apollo Media Network, Inc.

10.7

Board Observer Rights Letter to Kirk Kimerer

10.8

Employment Agreement - Kirk Kimerer and Sibannac, Inc.

10.9

Irrevocable Proxy - Kirk Kimerer

10.10

Joint Written Consent in Lieu of Meeting of the Board of Directors and Shareholders of Apollo Media Network, Inc. regarding Assignment and Assumption Agreement

10.11

Ability to Pay Statement - Kirk Kimerer

10.12

Subscription and Investment Letter from Kirk Kimerer for 3,099,900 shares of Apollo Media Network, Inc.

10.13

Lock Up and Metering Agreement - Kirk Kimerer and Sibannac, Inc.

10.14

Note Conversion Agreement - Sibannac, Inc. and Jayson Lang, Travis Hair, Ray Bills and Margaret Kerr and Apollo Media Network, Inc.

10.15

Pledge and Security Agreement - Kirk Kimerer and Sibannac, Inc.

10.16

Put Option Agreement - Sibannac, Inc. and Kirk Kimerer

10.17

Repurchase Agreement and Right of First Refusal - Sibannac, Inc.

 

-31-



SIBANNAC, INC. AND ACQUIRED ENTITY
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET AS OF AUGUST 31, 2015
                   
   Historical             
  Sibannac, Inc.   Aquired entity   Pro Forma Adjustments   Notes   Pro Forma Combined
                   
ASSETS
Current Assets                  
Cash [note 2]  $                272,543    $                 1,265    $                         -        $               273,808
Accounts receivable [note 2]                              -                         1,000                             -         1,000
Total Current Assets 272,543   1,265                             -         274,808
                   
Non current assets                  
Intangible assets, net                              -                       40,053                             -         40,053
Note receivable from Apollo               138,500.00                 (138,500.00)   1   0
Note receivable [note 2]                              -                                -   250,000   2   250,000
Total Current Assets                              -                       40,053   111,500       290,053
                   
TOTAL ASSETS  $                272,543    $               41,318    $             111,500        $               564,861
                   
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Commitments and Contingencies                  
Current Liabilities                  
Accrued payroll and payroll taxes                        2,476                            -                               -          $                   2,476
Notes payable                              -                     254,195                             -          $               254,195
Notes payable due to Sibannac, Inc.                     138,500                  (138,500)   2    $                           -
Total Current Liabilities 2,476                   392,695             (138,500.00)       256,671
                   
Non-current liabilities                  
Put payable [note 2]                              -                              -                     250,000   1    $               250,000
Total Current liabilities                              -                              -                     250,000       250,000
                   
Total Liabilities 2,476                   392,695   111,500       506,671
                   
Stockholders' Equity after reorganization August 31, 2015                  
Common Stock, $0.001 par value, 60,000,000 shares authorized; 17,527,194 and 2,027,000 shares issued and outstanding at August 31, 2015 and 2014 [note 4] 12,028                     -     5,500   3   17,528
Additional paid-in capital, net of quasi-reorganization 258,039                     -     1,884,600   4   40,662
Retained deficit, net (August 31, 2015 total reflects the balance after a deficit of 3,478,477 was elimiated through a quasi-reorganization [note 2]                                -                 (351,377)               (1,890,100)   5                                 -
                   
Total Stockholders' Equity (Deficit) 270,067                 (351,377)                             -         58,190
                   
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)  $            272,543    $          41,318    $        111,500        $           564,861
                   
   $                   -    $                 -    $                 -        $                   -

-32-



SIBANNAC, INC. AND ACQUIRED ENTITIES
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
                       
      For the year ended August 31,
      Sibannac   Aquired Entity   Pro Forma Adjustments   Notes   Pro Forma Combined
                       
Revenues      $                           -    $                           -    $                        -        $                         -
                       
Cost of Goods Sold (exclusive of depreciation, included in general & administrative expenses)                                   -    -                               -                                 -  
                       
Gross profit                                   -                                 -                              -                                 -  
                       
Selling expenses                                   -                                 -                              -                                 -  
                       
General and administrative expenses                      
Occupancy costs                                   -                                 -                            -                                     -
Salaries and wages                                   -                                 -                            -                                     -
Other general and administrative expenses                       133,052                                 -                            -                         133,052
                       
Total general and administrative expenses                       133,052                                 -                              -                       133,052
                       
Goodwill impairment expense                                   -                                 -              (2,241,462)   5               (2,241,462)
                       
Net Loss before other income and expenses                     (133,052)                                 -              (2,241,462)                   (2,374,514)
                       
Loss on discontinued operations                                   -                                 -                              -                                   -
Interest income                                28                                 -                              -                                28
                       
Net Loss      $        (133,024)    $                      -    $    (2,241,462)        $         (2,374,486)
                       
                       
Net Loss per share - basic and diluted      $               (0.01)    $                    -      $         (22,415)        $         (22,414.63)
                       
Weighted average common shares outstanding - basic and diluted                  12,127,944                            100                         100                  12,127,944

-33-



UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET

Sibannac, Inc, a public reporting company with limited business or operating activities and Apollo, Inc, a private operating company, enter into an acquisition agreement whereby Sibannac, Inc. acquired 100% of the outstanding stock of Apollo Media Networks, Inc. in return for 3,100,000 shares of Sibannac, Inc. Common stock as well as the assumption of $138,500 in related debt of Apollo's ownership related to the Company operations and the issuance of a Put to purchase stock from the ownership of Apollo Media Networks, Inc.   Therefore, the unaudited pro forma condensed combined financial statements as of and for the year ended August 31, 2015 have been prepared based on certain pro forma adjustments to (i) The historical unaudited consolidated financial statement of Sibannac, Inc. as of and for the year ended August 31, 2015; and (ii) the historical unaudited financial statements of Apollo Media Networks, Inc. as of and for the year ended August 31, 2015.  The unaudited pro froma condensed combined financial statements should be read in conjunction with the accompanying notes and with the historical financial statements and adjustments related thereto.

The unaudited pro forma condensed combined balance sheet and statement of operations has been prepared as if the acquisition had occurred as of September 1, 2014.

The unaudited pro forma condensed combined financial statements are presented for illustrative purposes only and are not necessarily indicative of the financial condition or results of operations of future periods or the financial condition or results of operations that actually would have been realized had the transaction been completed during the period presented.

Note 1

This pro forma adjustment reflects $138,500 in Notes Receivable that were due from the owner of Apollo Media Networks, Inc. that were forgiven on the date of acquisition as part of the purchase price of Apollo Media Networks, Inc.

Note 2

This pro forma adjustment reflect the recognition of a $250,000 note receivable due August 31, 2024 from the owner of Apollo Media Networks, Inc due to SiIbannac, Inc. and the issuance of a Put Payable to purchase 1,400,000 shares of stock for $250,000 to repay that note when it becomes due.

Note 3

This pro forma adjustment reflects the common stock of Sibannac, Inc. issued to owners of the acquired entities.  A total of 5,500,000 in the companies $0.001 par value common stock was issued to acquire Apollo Media Networks and Protection Costs, Inc.

Note 4

This pro forma adjustment presents the effect on the Additional Paid in Capital account related to the 5,500,000 shares of common stock issued at the date of the acquisitions to acquire the entities.  The market price of the stock on the date of acquisition was $0.35 per share.  In compliance with Accounting Standards Codification 805-30 related to business combinations the company recognized a total purchase price based upon the number of shares issued times the market price at the date of the acquisition.  Therefore the total stock based portion of the acquisition was $1,925,000 with $1,919,500 allocated to Additional Paid in Capital.

-34-



Note 5

This pro forma adjustment presents the effect of impairment of long-lived assets under Accounting Standards Codifications 360.  This impairment testing is the results of the acquisition of Apollo Media Networks, Inc. and Protection Costs, Inc. as of August 31, 2015 and the allocation of net assets.  The acquisition resulted in an allocation of the purchase price to goodwill in the amount of $2,241,462.  In testing the carrying amount of goodwill, indicators are present that indicate the carrying amount of goodwill is not recoverable.  As a result, an impairment for the full balance of $2,241,462 has been recorded.

-35-



 

SIGNATURES

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.

SIBANNAC, INC.

By:     /s/ Paul Dickman

  ____________________________________

Title:     Paul Dickman, Chief Financial Officer

           

Date: January 29, 2016

-36-




EXHIBIT 10.1

ADDENDUM TO ASSET ACQUISITION AGREEMENT

BY AND AMONG

SIBANNAC, INC., A NEVADA CORPORATION

AND

APOLLO MEDIA NETWORK, INC., A DELAWARE CORPORATION

 

 

 

 

 

 

The Effective Date of the transaction shall be deemed to be August 31, 2015, for all purposes hereunder.

The state of incorporation of Sibannac, Inc. is amended from Colorado to Nevada.

 

 

 

Date: January 26, 2016

Sibannac, Inc.

 

By:/s/ Daniel L. Allen                                              

            Name: Daniel L. Allen

            Title:   Chief Executive Officer

 

Date: January 26, 2016

Apollo Media Network, Inc.

By:/s/ Kirk Kimerer                                              

Name:  Kirk Kimerer

Title: Chief Executive Officer




 

EXHIBIT 10.2

 

ADDENDUM TO

AGREEMENT AND CONSENT WITH REPRESENTATIONS

APOLLO MEDIA NETWORK, INC.

AND

SIBANNAC, INC.

 

 

 

 

 

 

The Effective Date of the transaction shall be deemed to be August 31, 2015, for all purposes hereunder.

The state of incorporation of Sibannac, Inc. is amended from Colorado to Nevada.

 

 

 

Date: January 26, 2016

Kirk Kimerer

By:/s/ Kirk Kimerer                                              

            Name:  Kirk Kimerer



AGREEMENT AND CONSENT WITH REPRESENTATIONS

Gentlemen:

The Subscriber ("Subscriber") herein, as Owner of 3,100,000 shares of outstanding common stock of Apollo Media Network, Inc. (Apollo) is offering to accept in liquidation of Apollo 3,100,000 shares of the common stock of Sibannac, Inc. ("Company" or "SI"), a Colorado corporation, as contemplated under that certain Asset Acquisition Agreement dated August 19, 2015, by and between SI and Apollo (the "Acquisition Agreement").

Subscriber hereby approves the Acquisition Agreement and the transactions contemplated thereunder, and offers to accept the shares as set forth above, and agrees to become a shareholder of the Company (SI). In order to induce the Company (SI) to accept my offer, I advise you as follows and acknowledge:

1. Corporate Documents. Receipt of copies of Articles, By-Laws, and audited financial statements of the Company and such other documents as I have requested: I hereby acknowledge that I have received the documents (as may be supplemented from time to time) relating to the Company and that I have carefully read the information and that I understand all of the material contained therein.

2. Availability of Information. I hereby acknowledge that the Company has made available to me the opportunity to ask questions of, and receive answers from the Company and any other person or entity acting on its behalf, concerning the terms and conditions of the business, the financial statements and related information of the Company and the 2014 10K, 1OQ for Dec. 31, 2014 of the Company and the information contained in the corporate documents, and to obtain any additional information, to the extent the Company possesses such information or can acquire it without unreasonable effort or expense, necessary to verify the accuracy of the information provided by the Company and any other person or entity acting on its behalf.

3. Representations and Warranties. Subscriber represents and warrants to the Company (SI) (and understands that SI is relying upon the accuracy and completeness of such representations and warranties in connection with the availability of an exemption for the offer and acquisition of the shares from the registration requirements of applicable federal and state securities laws) that:

(a) RESTRICTED SECURITIES.


(I) I understand that the Shares have not been registered under the Securities Act of 1933, as amended (the "Act"), or any state securities laws.


(II) I understand that if this acquisition agreement is accepted and the Shares are issued to me, I cannot sell or otherwise dispose of the Shares unless the Shares are registered under the Act or applicable state securities laws or exemptions therefrom are available (and consequently, that I must bear the economic risk of the investment for an indefinite period of time):



(III) I understand that the Company (SI) has no obligation now or at any time to register the Shares under the Act or the state securities laws or obtain exemptions therefrom.

(IV) I understand that the Company (SI) will restrict the transfer of the Shares in accordance with the foregoing representations.

(V) There is a limited public market for the common stock of the Company and there is no certainty that a more liquid market will ever develop or be maintained. There can be no assurance that I will be able to sell or dispose of the Shares. Moreover, no assignment, sale, transfer, acquisition or other disposition of the Shares can be made other than in accordance with all applicable securities laws. It is understood that a transferee may at a minimum be required to fulfill the investor suitability requirements established by the Company, or registration may be required.

(b) LEGEND.

I agree that any certificate representing the Shares will contain and be endorsed with the following, or a substantially equivalent, LEGEND:

"This share certificate has been acquired pursuant to an investment representation by the holder and shall not be sold, pledged, hypothecated or donated or otherwise transferred except upon the issuance of a favorable opinion by its counsel and the submission to the Company of other evidence satisfactory to and as required by counsel to the Company, that any such transfer will not violate the Securities Act of 1933, as amended, and applicable state securities laws. These shares are not and have not been registered in any jurisdiction."

(c) OWN ACCOUNT.

I am the only party in interest with respect to this acquisition offer, and I am acquiring the Shares for my own account for long-term investment only, and not with an intent to resell, fractionalize, divide, or redistribute all or any part of my interest to any other person, except in liquidation of the company.

(d) AGE: CITIZENSHIP.

I am at least twenty-one years old and a citizen of the United States.

(e) ACCURACY OF INFORMATION.

All information which I have provided to the Company (SI) concerning my knowledge of financial and business matters is correct and complete as of the date set forth at the end hereof, and if there should be any material change in such information prior to acceptance of this acquisition offer by the Company, I will immediately provide the Company with such information.

4. Acquisition Procedure. I understand that this acquisition is subject to each of the following terms and conditions:

2
      Kimerer Agreement and Consent - Final



(a) The Company may reject this acquisition for legal reasons, and this acquisition shall become binding upon the Company only when accepted, in writing, by the Company.

(b) This offer may not be withdrawn by me.

(c) The share certificates to be issued and delivered pursuant to this acquisition will be issued in the name of and delivered to me.

5. Suitability. I hereby warrant and represent:

(a) That I can afford a complete loss of the investment and can afford to hold the securities being received hereunder for an indefinite period of time.

(b) That I consider this investment a suitable investment, and

(c) That I am sophisticated and knowledgeable and have had prior experience in financial matters and investments.

6. Acknowledgement of Risks. I have been furnished and have carefully read the information relating to the Company, including this form of Acquisition Agreement. I am aware that:

(a) There are substantial risks incident to the ownership of Shares from the Company, and such investment is speculative and involves a high degree of risk of loss by me of my entire investment in the Company.

(b) No federal or state agency has passed upon the Shares or made any finding or determination concerning the fairness of this investment.

(c) The books and records of the Company will be reasonably available for inspection by me and/or my investment advisors, if any, at the Company's place of business.

(d) All assumptions and projections set forth in any documents provided by the Company have been included therein for purposes of illustration only, and no assurance is given that actual results will correspond with the results contemplated by the various assumptions set forth therein.

(e) SI has had unsuccessful operating history. The proposed operations are subject to all of the risks inherent in the establishment of a new business enterprise, including a limited operating history. The unlikelihood of the success of the Company must be considered in light of the problems, expenses, difficulties, complications and delays frequently encountered in connection with the formation and operation of a new business and the competitive environment in which the Company will operate.

7. Receipt of Advice. I acknowledge that I have been advised to consult my own attorney and investment advisor concerning the investment.

3
      Kimerer Agreement and Consent - Final



8. Restrictions on Transfer. I acknowledge that the investment in the Company is an illiquid investment. In particular, I recognize that:

(a) Due to restrictions described below, the lack of any market existing or to exist for these Shares, in the event I should attempt to sell my Shares in the Company, my investment will be highly illiquid and, probably must be held indefinitely.

(b) I must bear the economic risk of investment in the Shares for an indefinite period of time, since the Shares have not been registered under the Securities Act of 1933, as amended, and issuance is made in reliance upon Section 4 of said Act and/or Rule 506 of Regulation D under the Act, as may be applicable. Therefore, the Shares cannot be offered, sold, transferred, pledged, or hypothecated to any person unless either they are subsequently registered under said Act or an exemption from such registration is available and the favorable opinion of counsel for the Company to that effect is obtained, which is not anticipated. Further, unless said Shares are registered with the securities commission of the state in which offered and sold, I may not resell, hypothecate, transfer, assign or make other disposition of said Shares except in a transaction exempt or exempted from the registration requirement of the securities act of such state, and that the specific approval of such sales by the securities regulatory body of the state is required in some states.

(c) My right to transfer my Shares will also be restricted by the legend endorsed on the certificates.

9. Access to Information. I represent and warrant to the Company that:

(a) I have carefully reviewed and understand the risks of, and other considerations relating to, the acquisition of the Shares, including the risks of total loss in the event the Company's business is unsuccessful.

(b) I and my investment advisors, if any, have been furnished all materials relating to the Company and its proposed activities and anything which they have requested and have been afforded the opportunity to obtain any additional information necessary to verify the accuracy of any representations about the Company.

(c) The Company has answered all inquiries that I and my investment advisors, if any, have put to it concerning the Company and its proposed activities and acquisition of the Shares.

(d) Neither I nor my investment advisors, if any, have been furnished any offering literature other than the documents attached as exhibits thereto and I and my investment advisors, if any, have relied only on the information contained in such exhibits and the information, as described in subparagraphs (b) and (c) above, furnished or made available to them by the Company.

(e) I am acquiring the Shares for my own account, as principal, for investment purposes only and NOT with a view to the resale or distribution of all or any part of such Shares, and that I have no present intention, agreement or arrangement to divide my participation with others or to resell, transfer or otherwise dispose of all or any part of the Shares subscribed for unless and until I

4
  Kimerer Agreement and Consent - Final



determine, at some future date, that changed circumstances, not in contemplation at the time of this acquisition, makes such disposition advisable;

(f) I, the undersigned, if on behalf of a corporation, partnership, trust, or other form of business entity, affirm that: it is authorized and otherwise duly qualified to purchase and hold Shares in the Company; recognize that the information under the caption as set forth in (a) above related to investments by an individual and does not address the federal income tax consequences of an investment by any of the aforementioned entities and have obtained such additional tax advice that I have deemed necessary; such entity has its principal place of business as set forth below; and such entity has not been formed for the specific purpose of acquiring Shares in the Company.

(g) I have adequate means of providing for my current needs and personal contingencies and have no need for liquidity in this investment; and

(h) The information provided by the Company is confidential and non-public and I agree that all such information shall be kept in confidence by it and neither used by it to its personal benefit (other than in connection with its acquisition for the Shares) nor disclosed to any third party for any reason; provided, however, that this obligation shall not apply to any such information which (i) is part of the public knowledge or literature and readily accessible at the date hereof; (ii) becomes part of the public knowledge or literature and readily accessible by publication (except as a result of a breach of these provisions); or (iii) is received from third parties (except those parties who disclose such information in violation of any confidentiality agreements including, without limitation, any Acquisition Agreement they may have with the Company).

10. Binding Agreement. I hereby adopt, accept, and agree to be bound by all the terms and conditions of the Share Acquisition Agreement by and between SI and Apollo, executed concurrently herewith, and by all of the terms and conditions of the Articles of Incorporation, and amendments thereto, and By-Laws of the Company. Upon acceptance of this Acquisition Agreement by the Company, I shall become a Shareholder for all purposes.

11.Agreement to Be Bound. The Acquisition Agreement, upon acceptance by the Company, shall be binding upon my heirs, executors, administrators, successors, and assigns.

12.Indemnification. I further represent and warrant:

(a) I hereby indemnify the Company and hold the Company harmless from and against any and all liability, damage, cost, or expense incurred on account of or arising out of:

(I) Any inaccuracy in my declarations, representations, and warranties hereinabove set forth;

(II) The disposition of any of the Shares which I will receive, contrary to my foregoing declarations, representations, and warranties; and

(III) Any action, suit or proceeding seeking damages or redress from Company based upon (1) the inaccuracy of said declarations, representations, or warranties; or (2) the disposition of any of the Shares or any part thereof contrary to the foregoing declarations, representations, and warranties.

5
  Kimerer Agreement and Consent - Final



13. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Colorado, except as to the manner in which the Subscriber elects to take title to the Shares in the Company that shall be construed in accordance with the state of his principal residence.

14. Financial Statement. Upon request of the Company, I shall provide a sworn and signed copy of my current financial statement.

15. Title: I will hold title to my interest as follows:

{ } Community Property { } Joint Tenants with Right Survivorship { } Tenants in Common { X} Individually { } Other: (Corporation, Trust, Etc., please indicate)

(Note: Subscribers should seek the advice of their attorneys in deciding in which of the above forms they should take ownership of the Shares, since different forms of ownership can have varying gift tax and other consequences, depending on the state of the investor's domicile and their particular personal circumstances. For example, in community property states, if community property assets are used to purchase shares held in individual ownership, this might have adverse gift tax consequences. If OWNERSHIP IS BEING TAKEN IN JOINT NAME WITH A SPOUSE OR ANY OTHER PERSON, THEN ALL SUBSCRIPTION DOCUMENTS MUST BE EXECUTED BY ALL SUCH PERSONS.)

17. No Assignability. This acquisition is personal to the person/entity whose name and address appear below. I may not assign any of its rights or obligations under this Acquisition Agreement to any other person or entity.

18. Conditions. This Acquisition Agreement shall become binding upon the Company only when accepted, in writing, by the Company.

19. Effective Date. The acquisition for Shares evidenced by this Agreement shall, if accepted by the Company, be effective as soon as all state laws have been complied with to effectuate the transaction, and the conveyances of the assets of Apollo has been consummated.

20. Conveyance. I hereby agree to waive any claim to my shares in Apollo, as shown on the stock records of Apollo in exchange for the liquidation distribution of restricted shares of the common stock of the Company (SI).

6

Kimerer Agreement and Consent - Final



21. Further Acts. I hereby agree to execute any other documents and take any further actions that are reasonably necessary or appropriate in order to implement the transaction contemplated by this Acquisition Agreement.

Subscriber

Dated: August 31, 2015

/s/ Kirk Kimerer

Name: Kirk Kimerer

Address: 1313 E. Osborn Road, Suite 100

Phoenix, Arizona 85014

Social Security Number: (on file)

 

7
  Kimerer Agreement and Consent - Final



EXHIBIT 10.3

ADDENDUM TO ASSIGNMENT, ASSUMPTION AND RELEASE AGREEMENT

BY AND AMONG

APOLLO MEDIA NETWORK, INC.

KIRK KIMERER

JAYSON LANG

TRAVIS HAIR

RAY BILLS

AND

MARGARET KERR

 

 

 

 

 

The Effective Date of the transaction shall be deemed to be August 31, 2015, for all purposes hereunder.

 

 

 

Date: January 27, 2016

Apollo Media Network, Inc., a Delaware Corporation

By:/s/ Kirk Kimerer                                             

            Name:  Kirk Kimerer

            Title:   Chief Executive Officer

Date: January 27, 2016

By:/s/ Kirk Kimerer                                             

            Name:  Kirk Kimerer

 

 

 

 

 



ASSIGNMENT, ASSUMPTION AND RELEASE AGREEMENT

This Assignment, Assumption and Release Agreement (this "Agreement") is entered into as of the 30th day of June, 2015, by and among APOLLO MEDIA NETWORK, INC., a

Delaware corporation ("Apollo"); KIRK KIMERER ("Kimerer"); and those of JAYSON LANG ("Lang"); TRAVIS HAIR ("Hair"); RAY BILLS ("Bills"); and MARGARET KERR ("Kerr") who execute this Agreement. (Lang, Hair, Bills and Kerr are referred to herein as "Noteholders"; and Apollo, Kimerer and the Noteholders who execute this Agreement are referred to herein as the "Parties".)

Recitals:

            A. Kimerer is the sole stockholder of Apollo, owning 100 shares of the Common Stock of Apollo.

            B. The Noteholders have made various loans to Kimerer, with current outstanding balances as follows:

Jayson Lang - $106,791 (the "Lang Loan"), represented by one or more outstanding promissory notes from Kimerer to Lang (the "ig Notes")

Travis Hair - $53,534 (the "Hair Loan"), represented by one or more outstanding promissory notes from Kimerer to Hair (the "Hair Notes")

Ray Bills - $49,840 (the "Bills Loan"), represented by one or more outstanding promissory notes from Kimerer to Bills (the "Bills Notes")

Margaret Kerr - $44,029 (the "Kerr Loan"), represented by one or more outstanding promissory notes from Kimerer to Kerr (the Notes")

            The Lang Loan, the Hair Loan, the Bills Loan and the Kerr Loan are collectively referred to as the "Loans"; and the Lang Notes, the Hair Notes, the Bills Notes and the Kerr Notes are collectively referred to as the "Investor Notes".)

            C. Kimerer and Apollo have agreed to enter into a transaction whereby Kimerer will transfer certain websites to Apollo and deliver a promissory note from Kimerer to Apollo, in exchange for the issuance to Kimerer of additional shares of Common Stock and the assumption by Apollo of the Loans and the Investor Notes.

            D. The Noteholders who execute this Agreement consent to the assumption of the Loans and Investor Notes by Apollo, and have agreed to release Kimerer from all further liabilities or obligations with respect thereto.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is acknowledged by each of the Parties, the Parties agree as follows:

1

Apollo Assignment, Assumption and Release Agreement - Final



Agreements:

            1. Recitals. The Recitals set forth above and the Exhibits hereto are incorporated herein.

            2. Transfer of Assets and Issuance of Note from Kimerer to Apollo. Kimerer hereby agrees to (i) transfer and sell to Apollo those websites described in the Bill of Sale, Assignment and Quit Claim Deed attached hereto as Exhibit A (the "Bill of Sale"); and (ii) deliver to Apollo his promissory note in the form attached hereto as Exhibit B.

            3. Issuance of Stock to Kimerer and Assumption of Loans. Apollo (i) hereby agrees to issue to Kimerer 3,099,900 additional shares of Apollo Common Stock; and (ii) hereby assumes all of Kimerer's liabilities and obligations under all of the Loans and Investor Notes, and agrees to fully release and indemnify Kimerer from any further liability or obligation under any of the Loans and Investor Notes, including all principal, interest and other amounts due thereunder, whether arising or accruing before or after the date of this Agreement. In connection with the issuance of the additional shares of Apollo Common Stock to Kimerer, Kimerer shall execute and deliver to Apollo a Subscription Agreement in the form attached hereto as Exhibit C.

            4. Consent and Release by Noteholders. Each Noteholder hereby fully, unconditionally and irrevocably releases Kimerer and holds him harmless from all further liabilities or obligations under any of the Loans or Investor Notes, and from this date forward agrees to look solely to Apollo for repayment of the Loans or Investor Notes. Each Noteholder hereby acknowledges and agrees that the amount set forth next to such Noteholder's name in Recital B above represents all outstanding indebtedness from Kimerer to such Noteholder, and hereby releases and holds Kimerer harmless from all other monetary claims or other liabilities or obligations from Kimerer to any of the Noteholders as of the date of this Agreement.

            5. Capitalization of Apollo. The Parties acknowledge and agree that following the consummation of the transactions set forth in this Agreement, the capitalization of Apollo will be as follows:

Stockholder Name

Number of Shares

Kirk Kimerer

3,100,000

Total Shares Outstanding

3,100,000

            Miscellaneous Provisions.

            (a) Prior Agreements. This Agreement and the other documents delivered pursuant hereto constitute the entire contract between the Parties with respect to the subject matter hereof. This Agreement supersedes all prior agreements and understanding between the Parties with respect to its subject matter. Any revision, modification or termination of this Agreement shall be effective only if in writing and signed by all of the Parties hereto.

2

Apollo Assignment, Assumption and Release Agreement - Final



            (b) Waiver. Failure to enforce any provision of this Agreement by a Party shall not bar subsequent enforcement of such provision or any other provision of this Agreement by such Party.

            (c) Governing Law. This Agreement and all other agreements contemplated hereunder shall be governed by and construed under the laws of the State of Delaware. Any claim or charge made hereunder shall be brought in state or federal court in Maricopa County, Arizona. The parties hereto irrevocably consent to the jurisdiction and venue of such court and waive any present or future objection to venue or jurisdiction in such court.

            (d) Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

            (e) Headings. The headings in this Agreement are for convenience only, are not part of the agreement of the parties and shall not be deemed parts hereof or in any way affect the meaning or interpretation of this Agreement. Wherever the word "including" is used herein, it shall be deemed to be following with the words "but not limited to" or similar words to that effect.

            (f) Successors and Assigns; Beneficiaries. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon each Party and its, heirs, successors and assigns. This Agreement is not intended to confer any benefit upon, and may not be enforces by, anyone other than a Party hereto (or such Party's heirs, successors or assigns.

            (g) Attorneys' Fees and Costs. If any Party determines that it is necessary to seek enforcement of any of the terms and provisions hereunder by a court of law, the prevailing Party, in addition to any relief granted by the court of law, shall be entitled to recover all costs and expenses thereof including reasonable attorneys' fees and costs.

            (h) Expenses. Except as provided herein, each of the Parties shall be solely responsible for all of their own costs and expenses, including accounting and legal expenses, incurred in connection with this Agreement and the transactions contemplated herein.

[signature page follows]

3

Apollo Assignment, Assumption and Release Agreement - Final



            IN WITNESS WHEREOF, the parties have executed this Assignment, Assumption and Release Agreement to be effective on the day and year first written above.

APOLLO MEDIA NETWORK, INC., a

Delaware corporation

 

By: /s/ Kirk Kimerer

Its: CEO

 

 

/s/ Kirk Kimerer

KIRK KIMERER

____________________

JAYSON LANG

____________________

TRAVIS HAIR

____________________

RAY BILLS

____________________

MARGARET KERR

4

Apollo Assignment, Assumption and Release Agreement - Final



Exhibit A

 

BILL OF SALE

(see attached)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apollo Assignment, Assumption and Release Agreement - Final



Exhibit B 

PROMISSORY NOTE

(see attached)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apollo Assignment, Assumption and Release Agreement - Final



Exhibit C

KIMERER SUBSCRIPTION AGREEMENT

(see attached)

 

 

 

 

 

 

 

 

 

 

 

 

Apollo Assignment, Assumption and Release Agreement - Final



EXHIBIT 10.4

 

ADDENDUM TO

JOINT WRITTEN CONSENT IN LIEU OF MEETING

OF THE BOARD OF DIRECTORS AND SHAREHOLDERS OF

APOLLO MEDIA NETWORK, INC.

REGARDING ASSET ACQUISITION AGREEMENT

 

 

 

 

 

 

The Effective Date of the transaction shall be deemed to be August 31, 2015, for all purposes hereunder.

The state of incorporation of Sibannac, Inc. is amended from Colorado to Nevada.

 

 

 

Date: January 28, 2016

Kirk Kimerer

By:/s/ Kirk Kimerer                                              

            Name:  Kirk Kimerer, Board of Directors

 

 

Date: January 28, 2016

Kirk Kimerer

By:/s/ Kirk Kimerer                                              

            Name:  Kirk Kimerer, Shareholder



 

JOINT WRITTEN CONSENT IN LIEU OF MEETING

OF THE BOARD OF DIRECTORS AND SHAREHOLDERS OF

APOLLO MEDIA NETWORK, INC.

As of June 30, 2015

The undersigned, constituting all of the members of the Board of Directors (the "Board") of Apollo Media Network, Inc., a Delaware corporation, (the "Corporation"), and all of the holders of the Corporation's issued and outstanding Common Stock (the "Shareholders"), hereby give their written consent and authorization, in accordance with the provisions of Sections 141(0 and 228(a) of the General Corporation Law of the State of Delaware, to the adoption of the following resolutions, and the same are hereby adopted as of the date set forth above:

            1. Asset Acquisition Agreement

            WHEREAS, the Board and the Shareholders have each reviewed and considered the proposed Asset Acquisition Agreement by and between the Corporation and Sibannac, Inc. attached hereto as Exhibit A (including all exhibits attached thereto, the "Acquisition Agreement"), and the Assumption and Release Agreement between the Corporation and Sibannac, Inc. related thereto (the "Assumption Agreement"; and together with the Acquisition Agreement, the "Agreements"); and

            WHEREAS, the Board and the Shareholders have each determined that it is in the best interests of the Corporation to adopt and consummate the Agreements; it is hereby

RESOLVED, that the form, terms and provisions of the Agreements are hereby authorized and approved by the Board and by the Shareholders in all respects, effective as of the date hereof;

RESOLVED FURTHER, that the President/Chief Executive Officer, Secretary and Treasurer of the Corporation shall each be authorized, directed and empowered, for and on behalf of the Corporation, to perform such acts as he or she deems necessary or appropriate to execute and deliver the Agreements and consummate all of the transactions contemplated thereby, and to do all things as may be deemed appropriate or necessary to carry out the purpose of the foregoing resolutions and to carry out the provisions of the Agreements.

            2. General Implementation

RESOLVED that the President/Chief Executive Officer, Secretary and any other officer of the Corporation, acting alone or with any other officer of the

1

Apollo Joint Consent - Final



Corporation, be, and they hereby are, authorized and directed, for and on behalf of the Corporation, to execute, acknowledge and deliver such other agreements, documents, certificates, and other instruments, and to take or cause to be taken such action, as they, or any of them, may deem necessary or appropriate to carry out the transactions contemplated by these resolutions and otherwise accomplish the purposes and intent of these resolutions;

            The Secretary of the Corporation is hereby directed to file this instrument with the minutes of the proceedings of the directors and shareholders of the Corporation. The actions taken hereby shall be of the same force and effect as if taken at a meeting of the directors and shareholders of the Corporation, duly called and constituted pursuant to the laws of the State of Delaware.

            This instrument may be executed in any number of counterparts and by facsimile; all such counterparts shall be deemed to constitute one and the same instrument, and each of said counterparts shall be deemed an original hereof.

            IN WITNESS WHEREOF, the undersigned have executed this Consent as of the date first written above.

Board of Directors:

 

/s/ Kirk Kimerer

Kirk Kimerer

 

Shareholders:

 

/s/ Kirk Kimerer

Kirk Kimerer

 

Exhibit:

A - Asset Acquisition Agreement

2

 

Apollo Joint Consent - Final



EXHIBIT A

ASSET ACQUISITION AGREEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apollo Joint Consent - Final



EXHIBIT 10.5

ADDENDUM TO ASSUMPTION AND RELEASE AGREEMENT

BY AND AMONG

SIBANNAC, INC., A NEVADA CORPORATION

AND

APOLLO MEDIA NETWORK, INC.

 

 

 

 

 

 

The Effective Date of the transaction shall be deemed to be August 31, 2015, for all purposes hereunder.

The state of incorporation of Sibannac, Inc. is amended from Colorado to Nevada.

 

 

 

Date: January 26, 2016

Sibannac, Inc.

 

By:/s/ Daniel L. Allen                                              

            Name: Daniel L. Allen

            Title:   Chief Executive Officer

 

Date: January 26, 2016

Apollo Media Network, Inc.

By:/s/ Kirk Kimerer                                              

            Name:  Kirk Kimerer, CEO 



ASSUMPTION AND RELEASE AGREEMENT

            This Assumption and Release Agreement (this "Agreement") is entered into on August 31, 2015, to be effective as of the 30th day of June, 2015, by and among APOLLO MEDIA NETWORK, INC., a Delaware corporation ("Apollo"), and SIBANNAC, INC., a Colorado corporation ("SI"). (Apollo and SI are referred to herein as the "Parties".)

Recitals:

            A. Pursuant to an Assignment, Assumption and Release Agreement dated as of June 30, 2015, by and among Apollo, Kirk Kimerer ("Kimerer"), and certain other parties named therein, Apollo assumed all of Kimerer's obligations and liabilities under the following loans and related notes:

Loan(s) from Jayson Lang ("Lang") in the amount of approximately $106,791 (the "Lang Loan"), represented by one or more outstanding promissory notes from Kimerer to Lang (the "Lang Notes")

Loan(s) from Travis Hair ("Hair") in the amount of approximately $53,534 (the "Hair Loan"), represented by one or more outstanding promissory notes from Kimerer to Hair (the "Hair Notes")

Loan(s) from Ray Bills ("Bills") in the amount of approximately $49,840 (the "Bills Loan"), represented by one or more outstanding promissory notes from Kimerer to Bills (the "Bills Notes")

Loan(s) from Margaret Kerr ("Kerr") in the amount of approximately $44,029 (the "Kerr Loan"), represented by one or more outstanding promissory notes from Kimerer to Kerr (the "Kerr Notes")

The Lang Loan, the Hair Loan, the Bills Loan and the Kerr Loan are collectively referred to as the "Loans"; and the Lang Notes, the Hair Notes, the Bills Notes and the Kerr Notes are collectively referred to as the "Investor Notes".)

B. Apollo and SI have agreed to enter into a transaction whereby, as partial consideration for the assets of Apollo to be acquired by SI in such transaction, SI has agreed to assume the debts of Apollo, including the Loans and the Investor Notes.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is acknowledged by each of the Parties, the Parties agree as follows:

Agreements:

            1. Recitals. The Recitals set forth above and the Exhibits hereto are incorporated herein.

1

SI/Apollo Assumption and Release Agreement -- Final



            2. Assumption of Loans. SI hereby fully, unconditionally and irrevocably assumes all of Apollo's and Kimerer's liabilities and obligations under all of the Loans and Investor Notes, and agrees to fully release and indemnify Apollo and Kimerer from any and all further liabilities or obligations under or with respect to any of the Loans and Investor Notes, including all principal, interest and other amounts due thereunder, whether arising or accruing before or after the date of this Agreement.

            3. Miscellaneous Provisions.

(a) Prior Agreements. This Agreement and the other documents delivered pursuant hereto constitute the entire contract between the Parties with respect to the subject matter hereof. This Agreement supersedes all prior agreements and understanding between the Parties with respect to its subject matter. Any revision, modification or termination of this Agreement shall be effective only if in writing and signed by all of the Parties hereto.

(b) Waiver. Failure to enforce any provision of this Agreement by a Party shall not bar subsequent enforcement of such provision or any other provision of this Agreement by such Party.

(c) Governing Law. This Agreement and all other agreements contemplated hereunder shall be governed by and construed under the laws of the State of Delaware. Any claim or charge made hereunder shall be brought in state or federal court in Maricopa County, Arizona. The parties hereto irrevocably consent to the jurisdiction and venue of such court and waive any present or future objection to venue or jurisdiction in such court.

(d) Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

(e) Headings. The headings in this Agreement are for convenience only, are not part of the agreement of the parties and shall not be deemed parts hereof or in any way affect the meaning or interpretation of this Agreement. Wherever the word "including" is used herein, it shall be deemed to be following with the words "but not limited to" or similar words to that effect.

(f) Successors and Assigns: Beneficiaries. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon each Party and its, heirs, successors and assigns. This Agreement is not intended to confer any benefit upon, and may not be enforces by, anyone other than Kimerer or a Party hereto (or his or such Party's heirs, successors or assigns.

(g) Attorneys' Fees and Costs. If any Party (or Kimerer) determines that it is necessary to seek enforcement of any of the terms and provisions hereunder by a court of law, the prevailing Party, in addition to any relief granted by the court of law, shall be entitled to recover all costs and expenses thereof including reasonable attorneys' fees and costs.

2

SI/Apollo Assumption and Release Agreement -- Final



(h) Expenses. Except as provided herein, each of the Parties shall be solely responsible for all of their own costs and expenses, including accounting and legal expenses, incurred in connection with this Agreement and the transactions contemplated herein.

            IN WITNESS WHEREOF, the parties have executed this Assignment, Assumption and Release Agreement on the day and year first written above.

 

 

SIBANNAC, INC. a Colo corporation

 

By: /s/ Daniel Allen

Its: CEO

 

 

APOLLO MEDIA NETWORK, INC., a

Delaware corporation

 

By: /s/ Kirk Kimerer

Its: Clief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

3

SI/Apollo Assumption and Release Agreement -- Final



EXHIBIT 10.6

ADDENDUM TO

BILL OF SALE, ASSIGNMENT

AND

QUIT CLAIM DEED

 

 

The Effective Date of the transaction shall be deemed to be August 31, 2015, for all purposes hereunder.

 

 

Date: January 26, 2016

Kirk Kimerer

By:/s/ Kirk Kimerer                                              

            Name:  Kirk Kimerer

 

 

 



 

BILL OF SALE, ASSIGNMENT

AND

QUIT CLAIM DEED

For valuable consideration, I hereby Sell, Assign, and Quit Claim all title and interest in and to the assets listed on Exhibit A to Apollo Media Network, Inc. to be effective as of June 30, 2015, and I agree to execute all other documents necessary to transfer such assets.

Dated as of June 30, 2015

/s/ Kirk Kimerer

Kirk Kimerer

 

 

 

 

 

 

Kimerer to Apollo Bill of Sale - Final



 

EXHIBIT A

Websites                                  Domain Owner

1.www.lifecisaboard.com         Kirk Kimerer

2. www.childcompass.com       Kirk Kimerer

3. www.youscube.com             Kirk Kimerer

4.www.live2100.com               Kirk Kimerer

5.www.sciencefly.com              Kirk Kimerer

6.www.dynomove.com             Kirk Kimerer

7.www.cyc1erlife.com              Kirk Kimerer

8. www.fullcourtstars.com        Kirk Kimerer

9.www.1ieastars.com               Kirk Kimerer

10.www.nputgaming.com         Kirk Kimerer

11. www.spychatter.com          Kirk Kimerer

12. www.mobilitypress.com      Kirk Kimerer

13.www.1eafexaminer.com      Kirk Kimerer

14.www.cagepound.com          Kirk Kimerer

 

 

 

 

 

Kimerer to Apollo Bill of Sale - Final



EXHIBIT 10.7

 

ADDENDUM TO BOARD OBSERVER RIGHTS LETTER

TO KIRK KIMERER

BY AND AMONG

SIBANNAC, INC., A NEVADA CORPORATION

 

 

 

 

 

 

The Effective Date of the transaction shall be deemed to be August 31, 2015, for all purposes hereunder.

The state of incorporation of Sibannac, Inc. is amended from Colorado to Nevada.

 

 

 

Date: January 28, 2016

Sibannac, Inc.

 

By:/s/ Daniel L. Allen                                              

            Name: Daniel L. Allen

            Title:   Chief Executive Officer

 



As of June 30, 2015

Mr. Kirk Kimerer

1313 E. Osborn Road, Suite 100

Phoenix, Arizona 85014

            Re: Board Observer Rights

Dear Kirk:

This letter will confirm our agreement that in connection with the acquisition of shares of the Common Stock of Sibannac, Inc. (the "Company") by Kirk Kimerer (the "Investor" pursuant to that Asset Acquisition Agreement dated August 19, 2015, by and between the Company and Apollo Media Network, Inc. (the "Agreement"), Investor will be entitled to the following contractual management rights, in addition to any and all other contractual rights Investor may have, and rights to nonpublic financial information, inspection rights, and other rights provided to other investors in the Company:

1. Investor shall be entitled to consult with and advise management of the Company on significant business issues regarding Sibannac's media operations, including management's proposed annual operating plans with respect thereto;

2. Investor may examine the books and records of the Company and inspect its facilities and may request information at reasonable times and intervals concerning the Company's media operations and general status of the Company's financial condition and operations; and

3. Investor will not be a member of the Company's Board of Directors; however, the Company shall invite Investor to attend all meetings of its Board of Directors in a nonvoting observer capacity and, in this respect, shall concurrently give Investor copies of all notices, minutes, consents, and other material that it provides to its directors. Investor may participate in discussions of all matters brought to the Board of Directors, but Investor shall not vote on any matters, and the Company's Board of Directors is under no obligation to vote in accordance with Investor's recommendations or input.

The rights described herein shall terminate and be of no further force or effect on the date the Investor no longer holds any shares of capital stock of the Company. The Company acknowledges and agrees that the rights described herein are an important component of Apollo's willingness to enter into the Agreement and to consummate the transactions described therein, and that this letter and the rights described herein may not be terminated or revoked except in accordance with the preceding sentence.

Very truly yours,

Sibannac, Inc.

By: /s/ Dan Allen

Its: CEO

Observer Rights Letter - Final



EXHIBIT 10.8

 

ADDENDUM TO EMPLOYMENT AGREEMENT

BY AND AMONG

SIBANNAC, INC., A NEVADA CORPORATION

AND

KIRK KIMERER

 

 

 

 

 

 

The Effective Date of the transaction shall be deemed to be August 31, 2015, for all purposes hereunder.

The state of incorporation of Sibannac, Inc. is amended from Colorado to Nevada.

 

 

 

Date: January 26, 2016

Sibannac, Inc.

 

By:/s/ Daniel L. Allen                                              

            Name: Daniel L. Allen

            Title:   Chief Executive Officer

 

Date: January 26, 2016

Kirk Kimerer

By:/s/ Kirk Kimerer                                              

            Name:  Kirk Kimerer



 

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT ("Agreement") made and entered to be effective as of the 30th day of June, 2015 (the "Effective Date"), by and between Sibannac, a Colorado corporation (the "Company") and Kirk Kimerer (the "Executive").

WITNESSETH:

WHEREAS, the Company wishes to secure the services of the Executive subject to the contractual terms and conditions set forth herein; and

WHEREAS, the Executive is willing to enter into this Agreement upon the terms and conditions, set forth herein.

NOW, THEREFORE, in consideration of the mutual promises, material inducements and agreements set forth herein, the parties hereto agree as follows:

1. Employment. The Company hereby agrees to employ the Executive, and the Executive hereby agrees to accept such employment with the Company, all upon the terms and conditions set forth herein.

2. Term of Employment. Subject to the terms and conditions of this Agreement, the Executive shall be employed for a term commencing on the Effective Date and ending on the 12th month from the Effective Date (the "Initial Term") unless sooner terminated as provided for herein. The Initial Term shall renew automatically for additional one (1) year periods (each a "Renewal Term" and together with the Initial Term, the "Term"), unless either party gives written notice of non-renewal (a "Non-Renewal Notice") at least sixty (60) days prior to the end of the then current Term, in which case this Agreement shall expire at the end of such Term ("Expiration"). As used herein, an Expiration due to the Company's issuance of a Non-Renewal Notice is referred to as a "Company Non-Renewal" and an Expiration due to the Executive's issuance of a Non-Renewal Notice is referred to as an "Executive Non-Renewal."

3. Duties and Responsibilities.

A. Capacity. During the Term, the Executive shall serve in the capacity of President of Sibannac Media subject to the supervision of the Board of Directors of the Company (the "Board") under the job description attached hereto as Schedule 3A.

B. Full-Time Duties. During the Term, and excluding any periods of disability, vacation or sick leave to which the Executive is entitled, the Executive shall devote a significant portion of his/her business time, attention and energies to the business of the Company. During the Term, it shall not be a violation of this Agreement for the Executive to (i) serve on corporate, civic or charitable boards or committees; (ii) deliver lectures or fulfill speaking engagements; (iii) manage personal investments, and (iv) perform other consulting services or engage in other independent outside activities, so long as such activities do not materially interfere with the performance of the Executive's responsibilities as an employee of the Company in accordance with



this Agreement. If the Company ever determines that any outside activity of the Executive interferes or conflicts with his performance under this Agreement, the Company shall provide at least thirty (30) days written notice of such determination and a reasonable time to cure or resolve such perceived conflicts. With regard to any outside consulting or independent activities by the Executive, the Company hereby waives and releases, and agrees not to assert, any right, title or interest in or to any work product of the Executive or of others involved in such outside activities.

C. Standard of Performance. The Executive will perform his duties under this Agreement with efficiency, fidelity and loyalty, to the best of his or her ability, experience and talent and in a manner consistent with his duties and responsibilities.

4. Compensation

A. Base Salary. During the first twelve months of the Term, the Company shall pay the Executive a salary (the "Base Salary") of $8,333.33 per month, pro-rated for any partial months of employment. The Base Salary shall be payable in accordance with the general payroll practices of the Company in effect from time to time. Notwithstanding the foregoing, upon the earlier of (i) the Company's closing of additional financing in the aggregate amount of at least $5,000,000, whether debt or equity or any combination thereof, or (ii) in any event not later than the second renewal date, the Board of Directors shall increase the Executive's Base Salary to $10;000 per month. During the Term, the Base Salary shall be reviewed at least annually by the Board after consultation with the Executive and may from time to time be increased (but not decreased) as solely determined by the Board. Effective as of the date of any such increase, the Base Salary as so increased shall be considered the new Base Salary for all purposes of the Agreement and may not thereafter be reduced. Any increase in Base Salary shall not limit or reduce any other obligation of the Company to the Executive under this Agreement.

B. Annual Performance Bonus. The Executive shall be eligible for annual discretionary bonus awards payable in cash and/or fully-vested options for common stock of the Company ("Bonus Options"), as so determined solely by the Board, based on performance objectives determined annually or at other times by the Board or pursuant to any Incentive Stock and Option Award Plan. Since the Bonus Options will have been fully earned by the performance of services for which they were granted, the exercise price of such Options shall be as low as possible consistent with the non-taxability of options.

C. Long Term Incentives. The Executive shall be eligible for participation in the Employee Stock Option Plan, restricted stock and/or other long-term incentives in the discretion of the Board on the same basis as other similarly situated senior executives of the Company. In addition, in the event the Company pursues additional rounds of equity financing during the Term, the Executive shall be offered the option to purchase, at the price offered in such financing, a sufficient additional equity interest such that if the Executive exercises this purchase option, the Executive will maintain his proportionate ownership interest in the Company.

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Kimerer Employment Agreement - Final



D. Benefits.

(1) If and to the extent that the Company maintains employee benefit plans (including, but not limited to, pension, profit-sharing, disability, accident, medical, life insurance, and hospitalization plans) (it being understood that the Company may but shall not be obligated to do so), the Executive shall be entitled to participate therein in accordance with the Company's regular practices with respect to similarly situated senior executives. The Company will have the right to amend or terminate any such benefit plans it may choose to establish.

(2) The Executive shall be entitled to such vacation, holidays and other paid or unpaid leaves of absence as are consistent with the Company's normal policies available to other senior executives of the Company or as are otherwise approved by the Board.

E. The Company shall reimburse Executive for all pre-approved and reasonable and necessary expenses incurred by him in carrying out his duties under this Agreement. Executive shall submit related receipts and documentation with his request for reimbursement, within 30 days of incurrence.

5. Termination of Employment.

Notwithstanding the provisions of Section 2 hereof, the Executive's employment hereunder shall terminate under any of the following conditions:

A. Death. The Executive's employment under this Agreement shall terminate automatically upon his death.

B. Total Disability. The Company shall have the right to terminate this Agreement if the Executive becomes Totally Disabled. For purposes of this Agreement, "Totally Disabled" means that the Executive is not working and is currently unable to perform the substantial and material duties of his position hereunder as a result of sickness, accident or bodily injury for a continuous period of three consecutive months. Prior to a determination that Executive is Totally Disabled, but after Executive has exhausted all sick leave and vacation benefits provided by the Company, Executive shall continue to receive his Base Salary, offset by any disability benefits she may be eligible to receive.

C. Termination by Company for Cause. The Executive's employment hereunder may be terminated for Cause upon written notice by the Company. For purposes of this Agreement, "Cause" shall mean:

(1) conviction of the Executive by a court of competent jurisdiction of any felony or a crime involving moral turpitude;

(2) the Executive's willful and intentional failure or willful and intentional refusal to follow reasonable and lawful instructions of the Board;

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Kimerer Employment Agreement - Final



(3) the Executive's material breach or default in the performance of her obligations under this Agreement; or

(4) the Executive's act of misappropriation, embezzlement, intentional fraud or similar conduct involving the Company. Executive may not be terminated for Cause pursuant to subsections (2) and (3) above unless Executive is given prior written notice of the circumstances constituting "Cause" and a reasonable period to cure such circumstances, if curable, which period shall be not less than thirty (30) days, and the Executive fails to remedy the failure during such notice period.

D. Termination by the Executive for Cause or for Good Reason. The Executive's employment hereunder may be terminated by the Executive for Company Cause or by the Executive for Good Reason on written notice by Executive to the Company. For purposes of this Agreement, (i) "Company Cause" means a material failure by the Company to perform its obligations under this Agreement or under any stock option or award agreement or other written agreement between the Company and Executive or a breach by the Company of any law or regulation that poses material damage to its viability or operations; and (ii) "Good Reason" means the occurrence of any of the following circumstances without the Executive's express written consent:

(1) a material reduction in the Executive's salary or benefits, excluding the substitution of substantially equivalent compensation and benefits, or any failure by the Company to make any Base Salary or Bonus payment when due; or

(2) a material diminution of the Executive's title, position, duties, authority or responsibilities as in effect immediately prior to such diminution without the Executive's express written consent;

E. Termination Without Cause or Non-Renewal by the Company or a Termination Without Company Cause or Non-Renewal by the Executive. The Executive's employment hereunder may be terminated by the Company without Cause or by a Company Non- Renewal of the Term hereof. The Executive's employment may be terminated by the Executive without Company Cause (including voluntary resignation or retirement by the Executive) or by an Executive Non-Renewal of the Term hereof. Any such termination shall be subject to and shall comply with any applicable notice period herein.

6. Payments Upon Termination.

A. Upon Termination of Executive's employment hereunder for any reason as so provided for in Section 5 hereof, the Company shall be obligated to pay and the Executive shall be entitled to receive, within thirty (30) days of termination, any and all Base Salary and Bonus Options or other bonuses or compensation which has accrued for services performed to the date of termination and which has not yet been paid. In addition, the Executive shall be entitled to any benefits to which Executive is entitled under the terms of any applicable Executive benefit plan or program restricted stock plan and stock option plan of the Company, and, to the extent applicable,

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Kimerer Employment Agreement - Final



short-term or long-term disability plan or program with respect to any disability, or any life insurance policies and the benefits provided by such plan, program, or policies, or applicable law.

B. Upon termination of Executive's employment by the Company without Cause, by a Company Non-Renewal or by the Executive for Company Cause or for Good Reason, the Company shall be obligated to pay and the Executive shall be entitled to receive:

(1) all of the amounts and benefits described in Section 6.A. hereof;

(2) a lump sum payment, subject to Section 18 hereof, within thirty (30) days of termination, equal to two (2) months of the Executive's Base Salary;

(3) continued participation in all Executive welfare benefit programs of the Company for the remainder of the Term or, if longer, until the first anniversary of the Executive's termination of employment, as if there had been no termination of employment; provided that, to the extent that welfare benefit programs do not permit such continuations, the Company shall provide substantially equivalent benefits during such period; and

(4) any and all outstanding stock options or other unvested equity grants held by the Executive shall accelerate and fully vest. Payments under Section 6.B., with the exception of amounts due pursuant to Section 6. B(1), are continued on the execution by the Executive of a release of all employment-related claims; provided, however, that such release shall be contingent upon the Company's satisfaction of all terms and conditions of this Section 6.

C. Upon termination of the Executive's employment upon the death of Executive pursuant to Section 5.A., the Company shall be obligated to pay, and the Executive shall be entitled to receive:

(1) all of the amounts and vested benefits described in Section 6.A.;

(2) any death benefit payable under a plan or policy provided by the Company; and

(3) continued participation by the Executive's dependents in the welfare benefit programs of the Company for the remainder of the Term, or if longer, until the first anniversary of the Executive's termination of employment, as if there had been no termination of employment; provided that, to the extent that welfare benefit programs do not permit such continuations, the Company shall provide substantially equivalent benefits during such period.

D. Upon termination of the Executive's employment upon the Disability of the Executive pursuant to Section 5.B., the Company shall be obligated to pay, and the Executive shall be entitled to receive:

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Kimerer Employment Agreement - Final



(1) all of the amounts and vested benefits described in Section 6.A.;

(2) the Base Salary, at the rate in effect immediately prior to the date of his termination of employment due to Disability, for the remainder of the Annual Term, offset by any payments the Executive receives under the Company's longterm disability plan and any supplements thereto during such period, whether funded or unfunded which is adopted by the Company for the Executive's benefit and not attributable to the Executive's own contributions; provided that, the Executive may receive any additional payments for which the Executive is eligible under such disability plan and any supplements; and

(3) continued participation by the Executive and his dependents in the welfare benefit programs of the Company for the remainder of the Term or, if longer, until the first anniversary of the Executive's termination of employment as if there had been no termination of the employment; provided that, to the extent that welfare benefit programs do not permit such continuations, the Company shall provide substantially equivalent benefits during such period. Payments under Section 6.D., with the exception of amounts due pursuant to Section 6.1)( 1), are conditioned on the execution by the Executive or the Executive's representative of a release of all employment-related claims; provided, however, that such release shall be contingent upon the Company's satisfaction of all terms and conditions of this Section 6.

E. Upon (i) voluntary termination of employment by the Executive during the Term for any reason (other than Termination by the Executive for Company Cause or for Good Reason as described in Section 6.B.), (ii) an Executive Non-Renewal of the Term, or (iii) termination by the Company for Cause, the Company shall have no further liability under or in connection with this Agreement, except to provide the amounts set forth in Section 6.A.

F. Upon voluntary or involuntary termination of employment of the Executive for any reason, subject only to timely payment by the Company of any and all post-termination amounts and delivery of all other benefits due hereunder, the Executive shall continue to be subject to the provisions of Section 7 hereof (it being understood and agreed that such provisions shall survive any termination or expiration of the Executive's employment hereunder for any reason whatsoever); provided that in the case of any Company Cause or if the Company shall default in the timely payment of all post-termination amounts or delivery of any other benefits, the provisions of Section 7.A., 7.B., 7.C., 7.E and 7.17 shall survive but the non-compete provisions of 7.13 shall forthwith terminate without prejudice to any and all rights and remedies of Executive hereunder.

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7. Confidentiality, Return of Property, and Covenant Not to Compete.

A. Confidential Information.

(1) Company Information. The Company agrees that it will provide the Executive with Confidential Information, as defined below, that will enable the Executive to optimize the performance of the Executive's duties to the company. In exchange, the Executive agrees to use such Confidential Information solely for the Company's benefit. The Company and the Executive agree and acknowledge that its provision of such Confidential Information is not contingent on the Executive's continued employment with the company. Notwithstanding the preceding sentence, upon the termination of the Executive's employment for any reason, the Company shall have no obligation to provide the Executive with its Confidential Information. "Confidential Information" means any Company proprietary information, technical data, trade secrets or know-how, including, but not limited to, research, product plans, products services, customer lists and customers (including, but not limited to, customers of the Company on whom the

Executive called or with whom the Executive became acquainted during the term of the Executive's employment), markets, software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances or other business information disclosed to the Executive by the Company either directly or indirectly in writing, orally or by drawings or observation of parts or equipment. Confidential Information does not include any of the foregoing items which has become publicly known and made generally available through no wrongful act of the Executive or of others who were under confidentiality obligations as to the item or items involved or improvements or new versions.

The Executive agrees at all times during the Term and thereafter, to hold in strictest confidence, and not to use, except for the exclusive benefit of the Company, or to disclose to any person or entity without written authorization of the Board of Directors of the Company, any Confidential Information of the Company.

(2) Former Employer Information. The Executive agrees that he will not, during her employment with the Company, improperly use or disclose any proprietary information or trade secrets of any former employer or other person or entity and that the Executive will not bring onto the premises of the Company any unpublished document or proprietary information belonging to any such employer, person or entity unless consented to in writing by such employer, person or entity.

(3) Third Party Information. The Executive recognizes that the Company has received and in the future will receive from third parties their confidential or proprietary information subject to a duty on the Company's party to maintain the confidentiality of such information and to use it only for certain limited purposes. The Executive shall hold all such confidential or proprietary information in the strictest confidence and not disclose it to any person or entity or use it except as necessary in

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carrying, out the Executive's work for the Company consistent with the Company's agreement with such third party.

B. Returning Company documents. At the time of leaving the employ of the Company, the Executive will deliver to the Company (and will not keep in the Executive's possession) source code, architecture, web designs, specifications, drawings, blueprints, business plans, sketches, materials, equipment, other documents or property, or reproductions of any aforementioned items developed by the Executive pursuant to the Executive's employment with the Company or otherwise belonging to the Company, its successors or assigns.

C. Solicitation of Employees. The Executive agrees that for a period of twentyfour (24) months immediately following the termination of the Executive's relationship with the Company for any reason, the Executive shall not either directly or indirectly solicit, induce or recruit any of the Company's employees to leave their employment, or take away such employees, or attempt to solicit, induce, recruit, encourage or take away employees of the Company, either for himself or for any other person or entity.

D. Covenant Not to Compete.

(1) The Executive agrees that during the course of his or her employment and for twelve (12) months following the termination of the Executive's relationship with the Company for any reason (subject only to the provisions of Section 6.F), the Executive will not compete, without the prior written consent of the Company, as a partner, employee, consultant, officer, director, manager, agent, associate, investor, or otherwise directly or indirectly, own, purchase, organize or take preparatory steps for the organization of, build, design, finance, acquire, lease, operate, manage, invest in, work or consult for or otherwise affiliate with any business, in competition with the Company's Business (as defined herein). The foregoing covenant shall cover the Executive's activities in the United States of America. As used herein, the term "Company's Business" shall mean the development of cannabis-industry web services and marketing of associated services to cannabis industry and service companies.

(2) The Executive acknowledges that he or she will derive significant value from the Company's agreement in Section 7.A(1) to provide the Executive with that Confidential Information to enable the Executive to optimize the performance of the Executive's duties to the Company. The Executive further acknowledges that his or her fulfillment of the obligations contained in this Agreement, including, but not limited to, the Executive's obligation neither to disclose nor to use the Company's Confidential Information other than for the Company's exclusive benefit is necessary to protect the Company's Confidential Information and, consequently, to preserve the value and goodwill of the Company. The Executive further acknowledges the time, geographic and scope limitations of the Executive's obligations under subsection (1) above are reasonable, especially in light of the Company's desire to protect its Confidential Information, and that Executive will not be precluded from gainful employment if the Executive is obligated not to compete with the Company during the period and within the Territory as described above.

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Kimerer Employment Agreement. Final



(3) If, in any judicial proceeding, a court refuses to enforce any of the provisions of subsection D(1) (or any part thereof), then such unenforceable covenant (or such part) shall be eliminated from this Agreement to the extent necessary permit the remaining provisions hereof (or proportions thereof) to be enforced. In the event the provisions of subsection D(1) above are deemed to exceed the time, geographic or scope limitations permitted by Colorado law, then such provisions shall be reformed to the maximum time, geographic or scope limitations such as the case may be, then permitted by such law.

E. Representations. The Executive agrees to execute any proper oath or verify any proper document required to carry out the terms of this Agreement. The Executive represents that his or her performance of all the terms of this Agreement will not breach any agreement to keep in confidence proprietary information acquired by the Executive in confidence or in trust prior to the Executive's employment by the Company. The Executive has not entered into, and the Executive agrees that he will not enter into, any oral or written agreement in conflict herewith.

F. Mutual Non-Disparagement. The Company and the Executive each agree and covenant not to publicly make, publish or communicate, at any time, any defamatory or disparaging remarks, comments or statements concerning the Company or its business, or any of its employees, officers, customers, suppliers and/or investors. This Section 7 does not, in any way, restrict or impede the Executive from exercising protected rights or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation or order.

G. First Right of Refusal: At any time, within 18 months after the inception of this agreement, SI shall have the first right to purchase any of Kimerer's shares which he determines to sell, on thirty days written notice from Kimerer of any proposed sale, at the same price and terms as any funded bona fide offer from a third party, subject to and on the terms and conditions set forth in a separate Repurchase Agreement and Right of First Refusal of even date herewith.

H. Restrictive Legend: Kimerer's shares shall be appropriately legended to reflect these agreements as well as the standard Rule 144 restriction form. Such Agreement shall provide that Kimerer understands and agrees that the shares shall be subject to the affiliate provisions of Rule 144, and Rule 144, and reporting under Section 16 and the Section 16 "Short Swing" rules, and that SI cannot waive those rules for so long as Kimerer is an officer or director.

8. Arbitration. Any dispute or controversy arising under or in connection with this Agreement (other than any dispute or controversy arising from a violation or alleged violation by the Executive of the provisions of Section 7) shall be settled exclusively by final and binding arbitration in Denver, Colorado, in accordance with the Employment Arbitration Rules of the American Arbitration Association ("AAA"). The arbitrator shall be selected by mutual agreement of the parties, if possible. If the parties fail to reach agreement upon appointment of an arbitrator within thirty (30) days following receipt by one party of the other party's notice of desire to arbitrate, the arbitrator shall be selected from a panel or panels of persons submitted by the AAA. The selection process shall be that which is set forth in the AAA Employment Arbitration Rules

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then prevailing, except that, if the parties fail to select an arbitrator from one or more panels, AAA shall not have the power to make an appointment but shall continue to submit additional panels until an arbitrator has been selected. This agreement to arbitrate shall not preclude the parties from engaging in voluntary, non-binding settlement efforts including mediation.

9. Notices. All notices and other communications hereunder shall be in writing and shall be given (and shall be deemed to have duly given upon receipt) by delivery in person, by registered or certified mail (return receipt requested and with postage prepaid thereon) or by facsimile transmission to the respective parties at the following address (or at such other address as either party shall have previously furnished to the other in accordance with the terms of this Section):

If to the Company: Sibannac, Inc.

1313 E. Osborn Road, Suite 100

Phoenix, Arizona 85014

Attention: Chief Executive Officer

 

If to the Executive: Kirk Kimerer

1313 E. Osborn Road, Suite 100

Phoenix, Arizona 85014

10. Amendment: Waiver. The terms and provisions of this Agreement may be modified or amended only by a written instrument executed by each of the parties hereto, and compliance with the terms and provisions hereof may be waived only by a written instrument executed by each party entitled to the benefits thereof. No failure or delay on the part of any party in exercising any right, power or privilege granted hereunder shall constitute a waiver thereof, nor shall any single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege granted hereunder.

11. Entire Agreement. This Agreement and all Exhibits attached hereto (as well as the Stock Option Agreement to be issued to Executive hereunder) constitute the entire agreement between the parties with respect to the subject matter hereof and supersede all prior written or oral agreements or understandings between the parties relating thereto.

12. Severability. In the event that any term or provision of this Agreement is found to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining terms and provisions hereof shall not be in any way affected or impaired thereby, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained therein.

13. Binding Effect, Assignment, Etc.

A. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns (it being understood and agreed that, except as

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expressly provided herein, nothing contained in this Agreement is intended to confer upon any other person or entity any rights, benefits or remedies of any kind or character whatsoever). The Executive may assign this Agreement with the prior written consent of the Company. Except as otherwise provided in this Agreement, the Company may assign this Agreement only to any of its affiliates or to any successor (whether by operation of law or otherwise) to all or substantially all of its business and assets without the consent of the Executive. For purposes of this Agreement, "affiliate" means any entity in which the Company owns shares or other measure of ownership representing at least 40% of the voting power or equivalent measure of control of such entity.

B. The compensation rights hereunder shall be assignable by the Employee, subject to the terms hereof, by written document, to any legal entity in which the Employee is at least a 51% owner. Any tax consequences thereof shall be solely the responsibility of the Employee, and Employee shall hereby agree to hold the Company harmless from any tax liability resulting from the assignment of compensation hereunder.

14. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado (except that no effect shall be given to any conflicts of law principles thereof that would require the application of the laws of another jurisdiction).

15. Headings. The headings of the sections contained in this Agreement are for the convenience only and shall not be deemed to control or affect the meaning or construction of any provision of this Agreement.

16. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

17. Acknowledgment of Full Understanding. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE/SHE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO THIS AGREEMENT. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT LEGAL COUNSEL TO THE COMPANY IS NOT REPRESENTING, OR ACTING AS AN ADVOCATE FOR ANY EMPLOYEE IN CONNECTION WITH THIS AGREEMENT, AND THAT HE/SHE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY OF HIS/HER CHOICE BEFORE SIGNING THIS AGREEMENT.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS THEREOF, the Company has caused this Agreement to be executed by its duly authorized officer and the Executive has signed this Agreement as of the Effective Date.

SIBANNAC, INC.

 

By: /s/ Daniel L. Allen

Name: Daniel L. Allen

Title: CEO

 

 

EXECUTIVE

KIRK KIMERER

 

/s/ Kirk Kimerer

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Schedule 3A

JOB DESCRIPTION

President of Sibannac Media Division. The duties and responsibilities include the following but are not limited to:

1. Oversee Sibannac Media division P&L and help Sibannac Media reach budget projections illustrated in the business plan.

2. Manage the vision, development, growth of existing Sibannac Media websites and additional web sites targeted to the cannabis industry per business plan and company objectives

3. Develop and manage a sales strategy for Sibannac Media designed to deliver consistent revenue growth and enhance value of ad inventory.

4.Responsible for staffing solutions for Sibannac Media in concert with the business plan and Sibannac Inc. management

5. Develop and manage a strategy to preserve and secure all media properties, web sites and intellectual development of Sibannac Media that are confidential in nature

6.Provide progress and intellectual updates to Sibannac Inc. management on a scheduled basis.

7. Work collaboratively with peers and business partners (Finance, Human resources and the  board of directors of Sibannac Inc.)

 

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Kimerer Employment Agreement - Final



EXHIBIT 10.9

ADDENDUM TO

IRREVOCABLE PROXY

 

 

 

 

 

 

The Effective Date of the transaction shall be deemed to be August 31, 2015, for all purposes hereunder.

The state of incorporation of Sibannac, Inc. is amended from Colorado to Nevada.

 

Date: January 26, 2016

Kirk Kimerer

By:/s/ Kirk Kimerer                                              

            Name:  Kirk Kimerer, Shareholder



IRREVOCABLE PROXY

(Coupled with an Interest)

            WHEREAS: The undersigned as a shareholder of Sibannac, Inc. has granted this Proxy coupled with an interest, being pledge of shares of Sibannac, Inc. pursuant to that certain Pledge and Security Agreement dated as of June 30, 2015, given by the undersigned to Sibannac, Inc. (the "Pledge Agreement")

            NOW THEREFORE: The undersigned hereby appoints the current Chief Executive Officer of the Company, proxy, with full power of substitution, for and in the name or names of the undersigned, to vote those 1.4 million shares of Common Stock of Sibannac, Inc., held of record by the undersigned and pledged as collateral to Sibannac, Inc. pursuant to the Pledge Agreement, which shares are represented by stock certificate(s) _____________ ,by Written Consent or at any Meeting of Stockholders and at any adjournment thereof, or upon any matters presented for a Written Consent after Board of Directors approval, described in any Notice of Special or Annual Meeting, and upon any other business that may properly come before a meeting, and matters incident to the conduct of, the meeting or any adjournment thereof. Said person is directed to vote on the matters described in the Written Consent or Notice of any Meeting and Proxy Statement, in their discretion upon such other business as may properly come before, and matters incident to the conduct of, the meeting and any adjournment thereof.

Date: This Proxy is irrevocable for the term of the pledge, and will automatically expire upon payment in full of the Note (as defined in the Pledge Agreement).

1,400,000

/s/ Kirk Kimerer

Number of Shares subject hereto

Signature of Stockholder

Dated: As of June 30, 2015

Final Kimerer Proxy



EXHIBIT 10.10

ADDENDUM TO

JOINT WRITTEN CONSENT IN LIEU OF MEETING

OF THE BOARD OF DIRECTORS AND SHAREHOLDERS OF

APOLLO MEDIA NETWORK, INC.

 

 

 

 

 

 

The Effective Date of the transaction shall be deemed to be August 31, 2015, for all purposes hereunder.

Date: January 26, 2016

Kirk Kimerer

By:/s/ Kirk Kimerer                                              

            Name:  Kirk Kimerer, Board of Directors

 

 

Date: January 26, 2016

Kirk Kimerer

By:/s/ Kirk Kimerer                                              

            Name:  Kirk Kimerer, Shareholder

 

 

 



JOINT WRITTEN CONSENT IN LIEU OF MEETING

OF THE BOARD OF DIRECTORS AND SHAREHOLDERS OF

APOLLO MEDIA NETWORK, INC.

 

As of June 30, 2015

The undersigned, constituting all of the members of the Board of Directors (the "Board") of Apollo Media Network, Inc., a Delaware corporation, (the "Corporation"), and all of the holders of the Corporation's issued and outstanding Common Stock (the "Shareholders"), hereby give their written consent and authorization, in accordance with the provisions of Sections 141(f) and 228(a) of the General Corporation Law of the State of Delaware, to the adoption of the following resolutions, and the same are hereby adopted as of the date set forth above:

1. Issuance of Stock to Kirk Kimerer

            WHEREAS, the Board and the Shareholders have each reviewed and considered the proposed Assignment, Assumption and Release Agreement attached hereto as Exhibit A (including all exhibits attached thereto, the "Assignment and Assumption Agreement"); and

            WHEREAS, the Board and the Shareholders have each determined that it is in the best interests of the Corporation to adopt and consummate the Assignment and Assumption Agreement; it is hereby

            RESOLVED, that the form, terms and provisions of the Assignment and Assumption Agreement are hereby authorized and approved by the Board and by the Shareholders in all respects, effective as of the date hereof;

            RESOLVED FURTHER, that the President/Chief Executive Officer, Secretary and Treasurer of the Corporation shall each be authorized, directed and empowered, for and on behalf of the Corporation, to perform such acts as he or she deems necessary or appropriate to execute and deliver the Assignment and Assumption Agreement and consummate all of the transactions contemplated thereby, and to do all things as may be deemed appropriate or necessary to carry out the purpose of the foregoing resolutions and to carry out the provisions of the Assignment and Assumption Agreement;

            RESOLVED FURTHER, that without limiting the generality of the foregoing, upon receipt from Kirk Kimerer of a Subscription Agreement in the form attached to the Assignment and Assumption Agreement, the Corporation is authorized to accept such Subscription Agreement and to issue shares of Common Stock pursuant thereto as contemplated by the Assignment and Assumption Agreement, along with a certificate representing such shares.

Apollo Joint Consent - Final



2. General Implementation

            RESOLVED that the President/Chief Executive Officer, Secretary and any other officer of the Corporation, acting alone or with any other officer of the Corporation, be, and they hereby are, authorized and directed, for and on behalf of the Corporation, to execute and deliver certificates representing the shares of Common Stock described above, and to  execute, acknowledge and deliver such other agreements, documents, certificates, and other instruments, and to take or cause to be taken such action, as they, or any of them, may deem necessary or appropriate to carry out the transactions contemplated by these resolutions and otherwise accomplish the purposes and intent of these resolutions;

            The Secretary of the Corporation is hereby directed to file this instrument with the minutes of the proceedings of the directors and shareholders of the Corporation. The actions taken hereby shall be of the same force and effect as if taken at a meeting of the directors and shareholders of the Corporation, duly called and constituted pursuant to the laws of the State of Delaware.

            This instrument may be executed in any number of counterparts and by facsimile; all such counterparts shall be deemed to constitute one and the same instrument, and each of said counterparts shall be deemed an original hereof.

            IN WITNESS WHEREOF, the undersigned have executed this Consent as of the date first written above.

Board of Directors

/s/Kirk Kimerer

 

 

Shareholder

/s/ Kirk Kimerer

Exhibit:

A - Assignment and Assumption Agreement

2

Apollo Joint Consent. Final



EXHIBIT A

ASSIGNMENT AND ASSUMPTION AGREEMENT

Apollo Joint Consent - Final



EXHIBIT 10.11

I, Kirk Kimerer, do hereby attest that I have the means necessary to satisfy the Note Payable for $250,000 due to Sibannac, Inc. as of August 31, 2015.

 

/s/ Kirk Kimerer

Kirk Kimerer

 

12/15/2015



EXHIBIT 10.12

 

ADDENDUM TO

SUBSCRIPTION AND INVESTMENT LETTER

FROM KIRK KIMERER

AND

APOLLO MEDIA NETWORK, INC.

 

 

 

 

 

 

The Effective Date of the transaction shall be deemed to be August 31, 2015, for all purposes hereunder.

 

 

 

Date: January 26, 2016

Kirk Kimerer

By:/s/ Kirk Kimerer                                              

            Name:  Kirk Kimerer

 

 

Date: January 26, 2016

Apollo Media Network, Inc.

By:/s/ Kirk Kimerer                                              

            Name:  Kirk Kimerer, CEO



SUBSCRIPTION AND INVESTMENT LETTER

TO: The Board of Directors of

Apollo Media Network, Inc.

The undersigned, Kirk Kimerer, hereby subscribes for Three Million Ninety- Nine Thousand Nine Hundred (3,099,900) shares (the "Shares") of the common stock of Apollo Media Network, Inc., a Delaware corporation ("Apollo" or the "Corporation"), in consideration of the assets transferred and assigned to the Corporation pursuant to that certain Assignment, Assumption and Release Agreement effective as of June 30, 2015 to which the Corporation and the undersigned are parties.

As an inducement to the Corporation to accept this subscription offer, I hereby represent, warrant, covenant and acknowledge to Apollo that:

a. Tax Consequences. I understand and acknowledge that the income tax consequences of this subscription for the Shares are uncertain and complex, and that I have been urged to consult with and rely on my own tax advisor with respect to the federal, state and foreign tax consequences arising from this subscription. I have not received any tax advice from Apollo or its attorneys or accountants.

b. Purchase Entirely for Own Account. The acceptance of this subscription by Apollo and its issuance of the Shares subscribed for hereby are being done in reliance upon my representation to Apollo, and I hereby represent, that the Shares are being acquired for my own account, not as a nominee or agent, and not with a view to the resale or distribution of any part of the Shares, and that I have no present intention of selling, granting any participation in, or otherwise distributing the Shares. Further, I do not have any contract, undertaking, agreement, or arrangement with any person to sell, transfer, or grant participations to such person with respect to the Shares.

c. Disclosure of Information. I have received and carefully reviewed all information that I consider necessary or appropriate for deciding whether to acquire the Shares. I have had an opportunity to ask questions of and receive answers from Apollo regarding Apollo and its business.

d. Investment Experience. I am an experienced investor in securities of privately held companies and am able to fend for myself, can bear the economic risk of an investment in the Shares, and have such knowledge and experience in financial or business matters that I am capable of evaluating the merits and risks of an investment in the Shares. I have adequate means of providing for my current needs and anticipated contingencies and have no need for liquidity of this investment. My commitment to illiquid investments is reasonable in relation to my net worth.

e. High Degree of Risk. I acknowledge and agree that an investment in the Shares is speculative and subject to substantial risks, and there can be no guarantee of

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Kimerer to Apollo Subscription Agreement - Final



any return of capital or the amount or type of profit or loss to be realized, if any, as a result of an investment in the Shares.

f. Subscriber's Advisors. I have been encouraged and have had the opportunity to consult with qualified legal, accounting, financial, tax and other advisors, and have consulted with such advisors or have waived my right to do so, and I understand the financial, income tax and other aspects of subscribing for the Shares. I acknowledge that neither Apollo nor anyone on behalf of Apollo has made any representations to me regarding the tax or financial consequences of subscribing for the Shares.

g. Accredited Investor. I warrants that I am an "accredited investor" within the meaning of Rule 501 of Regulation D, as presently in effect, as promulgated by the Securities and Exchange Commission (the "$") under the Securities Act of 1933, as amended (the ""), for the following reasons:

PLEASE INITIAL APPLICABLE STATEMENTS:

______ (Natural person only). My individual net worth excluding

the value of my primary residence, or joint net worth together with my

spouse excluding the value of my primary residence (if any), is in excess

of $1,000,000, with net worth calculated as (1) total assets (less any

positive equity in my primary residence), less (2) total liabilities

(including all mortgage debt on my primary residence).

 

______ (Natural person only). My individual income was in excess

of $200,000 in each of the past two years (excluding my spouse's income)

and I expect to have an income (excluding my spouse's income) in excess

of that amount in the current year or my individual income for each of

such years together with my spouse's is in excess of $300,000 each.

 

___X__ Other. (Please describe basis for accredited status.) Chief

Executive Officer and director of the Corporation

h. Reliance by Apollo. I understand that the Shares will be issued in reliance on specific exemptions from the registration requirements of federal, state, and foreign laws and that Apollo is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgements, and understandings set forth herein.

i. Indemnification. I hereby indemnify and hold harmless Apollo and its affiliates, and each of their respective officers, directors, shareholders, members, managers, partners, employees, agents and advisors, from and against any loss, damage, or liability arising out of or relating to a breach of any of my representations, warranties, covenants, or other agreements contained in this Subscription Offer.

j. Governing Law; Jurisdiction. I acknowledge and agree that except as otherwise required by law, all questions relating to the validity, interpretation,

 

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Kimerer to Apollo Subscription Agreement - Final



performance, and enforcement hereof will be governed by and construed in accordance with the laws of the State of Delaware, notwithstanding any conflict-of-interest provisions to the contrary. Jurisdiction of and venue for any legal action between me and Apollo will be in the state and federal courts located in Maricopa County, Arizona, and I hereby consent to such jurisdiction and venue.

IN WITNESS WHEREOF, I have executed this Subscription Offer and Investment Letter as of June 30, 2015.

/s/ Kirk Kimerer

Kirk Kimerer

 

Social Security or

Taxpayer ID No.: (on file)

Address: 1313 E. Osborn Road, Suite 100

Phoenix, AZ 85014

 

AGREED AND ACCEPTED BY:

APOLLO MEDIA NETWORK, INC.

 

By: /s/ Kirk Kimerer

Its: Chief Executive Officer

Date: As of June 30, 2015

 

 

 

 

 

 

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Kimerer to Apollo Subscription Agreement - Final



EXHIBIT 10.13

ADDENDUM TO LOCK UP AND METERING AGREEMENT

BY AND AMONG

SIBANNAC, INC., A NEVADA CORPORATION

AND

KIRK KIMERER

 

 

 

 

 

 

The Effective Date of the transaction shall be deemed to be August 31, 2015, for all purposes hereunder.

The state of incorporation of Sibannac, Inc. is amended from Colorado to Nevada.

 

 

 

Date: January 26, 2016

Sibannac, Inc.

 

By:/s/ Daniel L. Allen                                              

            Name: Daniel L. Allen

            Title:   Chief Executive Officer

 

Date: January 26, 2016

Kirk Kimerer

By:/s/ Kirk Kimerer                                              

            Name:  Kirk Kimerer

 


 



EXHIBIT 10.14

ADDENDUM TO NOTE CONVERSION AGREEMENT

BY AND AMONG

SIBANNAC, INC., A NEVADA CORPORATION

AND

JAYSON LANG

TRAVIS HAIR

RAY BILLS

MARGARET KERR

AND

APOLLO MEDIA NETWORK, INC.

 

 

 

 

 

 

The Effective Date of the transaction shall be deemed to be August 31, 2015, for all purposes hereunder.

The state of incorporation of Sibannac, Inc. is amended from Colorado to Nevada.

 

 

 

Date: January 28, 2016

Sibannac, Inc.

By:/s/ Daniel L. Allen                                              

            Name: Daniel L. Allen

            Title:   Chief Executive Officer

 

 

 

Date: January 28, 2016

Apollo Media Network, Inc., a Delaware Corporation

By:/s/ Kirk Kimerer                                             

            Name:  Kirk Kimerer

            Title:   Chief Executive Officer

 

 

 

 




EXHIBIT 10.15

 

ADDENDUM TO PLEDGE AND SECURITY AGREEMENT

BY AND AMONG

SIBANNAC, INC., A NEVADA CORPORATION

AND

KIRK KIMERER

 

 

 

 

 

 

The Effective Date of the transaction shall be deemed to be August 31, 2015, for all purposes hereunder.

The state of incorporation of Sibannac, Inc. is amended from Colorado to Nevada.

 

 

 

Date: January 26, 2016

Sibannac, Inc.

 

By:/s/ Daniel L. Allen                                              

            Name: Daniel L. Allen

            Title:   Chief Executive Officer

 

Date: January 26, 2016

Kirk Kimerer

By:/s/ Kirk Kimerer                                              

            Name:  Kirk Kimerer



 

To be effective as of June 30, 2015

PLEDGE AND SECURITY AGREEMENT

PLEDGE AGREEMENT, dated as of June 30, 2015, made by Kirk Kimerer ("Pledgor"), to Sibannac, Inc. ("Lender").

PRELIMINARY STATEMENTS:

Lender is the holder of a Promissory Note dated as of June 30, 2015, made by Pledgor in favor of Apollo Media Network, Inc. (the "Note"), and subsequently transferred to Lender. It is a condition precedent to the acceptance of the Note by Lender that Pledgor shall have made the pledge contemplated by this Agreement.

NOW, THEREFORE, in consideration of the premises and in order to induce Lender to accept the Note, Pledgor hereby agrees as follows:

SECTION 1. Pledge. Pledgor hereby pledges, transfers and assigns to Lender and any assigns and grants to Lender a security interest in, the following (the "Pledged Collateral"):

1,400,000 Common Shares (the "Pledged Shares") owned by Pledgor in Sibannac, Inc. and certificate number representing the Pledged Shares, and all dividends, distributions, cash, instruments and other property, proceeds or benefits from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Shares.

SECTION 2. Security for Obligations. This Agreement secures the payment of all obligations present or future, direct or indirect, absolute or contingent, matured or not, of Kirk Kimerer to Lender under the Note, whether for principal, interest, fees, expenses or otherwise, and all obligations present or future, direct or indirect, absolute or contingent, matured or not of Pledgor to Lender under this Agreement or the Note (all such obligations of Pledgor being the "Obligations").

SECTION 3. Delivery of Pledged Collateral.

(a) All certificates or instruments representing or evidencing any Pledged Collateral (including without limitation the Pledged Shares upon the issuance thereof to Pledgor) shall be delivered to and held by or on behalf of Lender pursuant hereto and shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to Lender. Lender shall have the right at any time to exchange certificates or instruments representing or evidencing Pledged Collateral

Pledge Agreement - Final



for Certificates or instruments of smaller or larger denominations.

(b) Pledgor shall upon the request of Lender deliver, or cause to be delivered to Lender any or all of the Pledged Collateral not referred to in Section 3(a) if Lender determines in its sole discretion that such delivery will enhance, protect, maintain, create or otherwise aid Lender in the perfection or maintenance of the security interests created hereby.

(c) Pledgor shall deliver herewith an Irrevocable Proxy (coupled with interest) in the form attached as Exhibit A hereto.

SECTION 4. Perfecting Security Interest.

(a) Pledgor shall permit a UCC-1 to be filed with the Secretaries of State of Colorado evidencing the pledge of the 1,400,000 shares of Pledgor's common shares in Sibannic, Inc. and Pledgor shall cause any other filings to be made and assist Lender in giving any notice as may be required to perfect or maintain Lender's security interest in the Pledged Shares.

SECTION 5. [Intentionally omitted.]

SECTION 6. Further Assurances. Pledgor agrees that at any time and from time to time, at the expense of Lender, Pledgor will promptly execute and deliver all further instruments and documents, and take all further action, that may be necessary or desirable, or that Lender may request, in order to perfect and protect any security interest granted or purported to be granted hereby or to enable Lender to exercise and enforce its rights and remedies hereunder with respect to any Pledged Collateral, including without limitation filing one or more UCC-ls to protect Lender's security interest in the Pledged Collateral and making any filing statement or appearance before or with any other regulatory authority. Pledgor authorizes Lender to file, in jurisdictions where this authorization will be given effect, a financing statement signed only by Lender covering the Pledged Collateral. Pledgor will join Lender at its request in executing all financial statements in form satisfactory to Lender and Lender will pay the cost of filing or recording any such financial statement or of this Agreement if it is deemed by Lender to be necessary or desirable.

SECTION 7. Voting Rights, Etc. Lender shall execute and deliver (or cause to be executed and delivered) to Pledgor all such proxies and other instruments as Pledgor may reasonably request for the purpose of enabling Pledgor to exercise the voting and other rights which it is entitled to exercise pursuant hereto.

SECTION 8. Transfers and Other Liens; Additional Shares.

(a) Pledgor agree that he will not, except as otherwise provided in that certain Put Option dated as of June 30, 2015 by and between Pledgor and Lender (the "Put") or by other written agreement between Pledgor and Lender (i) sell or otherwise dispose of, or grant any option with respect to, any of the Pledged Collateral, (ii) create or permit to exist any lien, security interest or other charge or encumbrance upon or with respect to any of the Pledged Collateral, except for the security interest under this Agreement.

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Pledge Agreement - Final



SECTION 9. Lender Appointed Attorney-in-Fact. Pledgor hereby appoints Lender as Pledgor's attorney-in-fact, with full authority in the place and stead of Pledgor and in the name of Pledgor or otherwise, from time to time in Lender's discretion to take any action and to execute any instrument which Lender may deem necessary or advisable to accomplish the purposes of this Agreement, including, without limitation, to receive, endorse and collect all instrument made payable to Pledgor representing any dividend or other distribution in respect of the Pledged Collateral or any part thereof and to give full discharge for the same.

SECTION 10. Lender May Perform. If Pledgor fails to perform any agreement contained herein, Lender may itself perform, or cause performance of, such agreement, and the expenses of Lender incurred in connection therewith shall be payable by Pledgor under Section 13.

SECTION 11. Reasonable Care. Lender shall exercise reasonable care in the custody of the Pledged Collateral in its possession or control hereunder at any time. Lender shall be deemed to have exercised reasonable care in the custody and preservation of the Pledged Collateral in its possession if the Pledged Collateral is accorded treatment substantially equal to that which Lender accords its own property, but no less than reasonable care, it being understood that Lender shall not have any responsibility for (i) ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Pledged Collateral, whether or not Lender has or is deemed to have knowledge of such matters, or (ii) taking any necessary steps to preserve rights against any parties with respect to any Pledged Collateral.

SECTION 12. Remedies upon Default. If any Default (as defined in the Note) shall have occurred and be continuing:

(a) Lender may exercise in respect of the Pledged Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party on default under the Uniform Commercial Code (the "Code") in effect in the State of Colorado, except as required by mandatory provisions of law and except to the extent that the validity or perfection of the security interest hereunder, or remedies hereunder, in respect of any particular Pledged Collateral are governed by the laws of a jurisdiction other than the State of Colorado, at that time, and Lender may also, without notice except as specified below, exercise any voting or other consensual rights with respect to the Pledged Collateral, sell the Pledged Collateral or any part thereof in one or more parcels at public or private sale, at any exchange, broker's board or at any of Lender's offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as Lender may deem commercially reasonable. Pledgor agrees that, to the extent notice of sale shall be required by law, at least ten days' notice to Pledgor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. Lender shall not be obligated to make any sale of Pledged Collateral regardless of notice of sale having been given. Lender may adjourn any public or private sale from time to time by announcement at the time and place fixed therefore, and such sale may, without further notice, be made at the time and place to which it was so

3

Pledge Agreement - Final



adjourned.

(b) Any cash held by Lender as Pledged Collateral and all cash proceeds received by Lender in respect of any sale of, collection from or other realization upon all or any part of the Pledged Collateral may, in the discretion of Lender, be held by Lender as collateral for, and then or at any time thereafter applied (after payment of any amounts payable to Lender pursuant to Section 13) in whole or in part by Lender against, all or any part of the Obligations in such order as Lender shall elect. Any surplus of such cash or cash proceeds and interest accrued thereon, if any, held by Lender and remaining after payment in full of all the Obligations shall be paid over to Pledgor or to whomsoever may be lawfully entitled to receive such surplus, provided that Lender shall have no obligation to invest or otherwise pay interest on any amounts held by it in connection with or pursuant to this Agreement.

(c) All rights and remedies of Lender expressed herein are in addition to all other rights and remedies possessed by Lender in the Note, all third party guaranties and any other agreement or instrument relating to the Obligations.

(d) Notwithstanding anything to the contrary in the Note, this Agreement or the Code, Lender agrees that in the event Lender sells or takes possession of the Pledged Collateral, the Note and the Obligations shall be deemed fully satisfied and paid in full, and Lender shall not be entitled to seek a deficiency or take any other action against Pledgor with respect to the Note.

SECTION 13. Expenses. Pledgor will upon demand pay to Lender the amount of any and all reasonable expenses, including the reasonable fees and expenses of its counsel and of any experts and agents, which Lender may incur in connection with (i) the exercise or enforcement of any of the rights of Lender hereunder of (ii) the failure by Pledgor to perform or observe any of the provisions hereof.

SECTION 14. Security Interest Absolute. All rights of Lender and security interests hereunder, and all obligations of Pledgor hereunder, shall be absolute and unconditional irrespective of:

(i) any lack of validity or enforceability of the Note, or any other agreement or instrument relating thereto;

(ii) any change in the time, manner, place or terms of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any departure from the Note;

(iii) any sale, exchange, release, surrender or nonperfection of any other collateral, or any release or amendment or waiver of or consent to departure from any guaranty, for all or any of the Obligations or any setoff against all or any of the Obligations; or

(iv) any other circumstance which might otherwise constitute a defense available to, or a discharge of, the Borrower.

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Pledge Agreement - Final



SECTION 15. Amendments, etc. No amendment or waiver of any provision of this Agreement, nor consent to any departure by Pledgor herefrom, shall in any event be effective unless the same shall be in writing and signed by Lender, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

SECTION 16. Addresses for Notices. All notices and other communications provided for hereunder shall be in writing (including telegraphic communication), mailed or telegraphed or delivered to it, addressed to it at such party's address specified herein; or as to either party at such other address as shall be designated by such party in a written notice to each other party complying as to delivery with the terms of this Section. All such notices and other communications shall, when mailed or telegraphed, respectively, be effective when deposited in the mails or delivered to the telegraph company, respectively, addressed as aforesaid.

SECTION 17. Continuing Security Interest; Transfer of Note. This Agreement shall create a continuing security interest in the Pledged Collateral and shall (i) remain in full force and effect until payment in full of the Obligations, (ii) be binding upon Pledgor, its successors and assigns and (iii) inure to the benefit of Lender and its successors, transferees and assigns. Notwithstanding the foregoing clause (iii), Lender may assign or otherwise transfer the Note or its interests under this Agreement to any other person or entity, without Pledgor's consent. Upon the payment in full of the Obligations, Pledgor shall be entitled to the return, upon its request and at its expense, of such of the Pledged Collateral as shall not have been sold or otherwise applied pursuant to the terms hereof.

SECTION 18. Governing Law; Terms. This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado, except as required by mandatory provisions of law and except to the extent that the validity or perfection of the security interest hereunder, or remedies hereunder, in respect of any particular Pledged Collateral are governed by the laws of a jurisdiction other than the State of Colorado. Unless otherwise defined herein or in the Note, terms defined in Article 9 of the Uniform Commercial Code in the State of Colorado are used herein as therein defined.

[signature page follows]

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Pledge Agreement. Final



IN WITNESS WHEREOF, Pledgor and Lender have caused this Agreement to be duly executed and delivered by its officer thereunto duly authorized as of the date first above written.

Pledgor:

Kirk Kimerer

 

/s/ Kirk Kimerer

1313 E. Osborn Road, Suite 100

Phoenix, AZ 85014

 

 

Lender:

Sibannac, Inc.

 

by: /s/ Daniel Allen

its: CEO

1313 E. Osborn Road, Suite 100

Phoenix, AZ 85014

Attention: Chief Executive Officer

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Pledge Agreement - Final



EXHIBIT 10.16

ADDENDUM TO PUT OPTION AGREEMENT

BY AND AMONG

SIBANNAC, INC., A NEVADA CORPORATION

AND

KIRK KIMERER

 

 

 

 

 

 

The Effective Date of the transaction shall be deemed to be August 31, 2015, for all purposes hereunder.

The state of incorporation of Sibannac, Inc. is amended from Colorado to Nevada.

 

 

 

Date: January 26, 2016

Sibannac, Inc.

 

By:/s/ Daniel L. Allen                                              

            Name: Daniel L. Allen

            Title:   Chief Executive Officer

 

Date: January 26, 2016

Kirk Kimerer

By:/s/ Kirk Kimerer                                              

            Name:  Kirk Kimerer

 

 

 

 




SIBANNAC, INC.

 Repurchase Agreement and Right of First Refusal

AGREEMENT (this "Agreement") made as of June 30, 2015, among Kirk Kimerer (hereafter called the "Shareholder"), and, Sibannac, Inc., a Colorado corporation (hereinafter called the "Company"). Whereas the Shareholder is the owner of certain outstanding shares of the Company as follows:

Shareholder                   Shares

Kirk Kimerer                3,100,000

Whereas, in the event of a proposed sale of the shares owned by Shareholder, the Company desires to guard against the introduction into the central ownership of the Company of other persons who may be either unwilling or unable to contribute to the success of the Company, by restricting the transferability of shares in the Company, among the named parties, except under the terms hereof.

Therefore in consideration of mutual promises and other valuable considerations, the Shareholder and the Company agree as follows:

1. Definitions. For all purposes of this Agreement:

(a) The term "transfer," "dispose," or any similar term means any proposed sale, or a sale, exchange, gift, bequest, pledge, security interest, or other alienation or disposition whatsoever of any shares of the Company or any interest therein, including any distribution by an executor, administrator, or trustee.

(b) The term "involuntary transfer" means any transfer or disposition of shares under judicial order, legal process, execution, attachment, or enforcement of a pledge, trust, divorce decree, separation agreement, QDRO or other security interest.

(c)The term "involuntary transferee" means anyone who acquires an interest in or title to the shares by virtue of an involuntary transfer.

(d) The term "shares" means common shares of the Company owned by Shareholder, and includes the shares presently outstanding and all common shares which may hereafter be issued by the Company, to him.

2. Restriction on shares and transfer. Shareholder or his voluntary or involuntary transferee shall not dispose of or transfer any shares in a private transaction within 18 months after the inception of this Agreement, without the prior written consent of the Company, unless all, or any, of such shares are first offered for sale to the Company, in the manner herein provided, or otherwise authorized under this Agreement. Any purported transfer or disposition of shares in violation of the terms of this

Agreement shall he void, and the Company shall not recognize or give any effect to such transaction.

3. First Right of Refusal. At any time, within 18 months after the inception of this Agreement, the Company shall have the first right to purchase any of Shareholder's shares which he determines to sell in a private transaction (the "offer"), on ten (10) business days written notice from Shareholder of any

Right of First Refusal Agreement Final



proposed sale, at the same price and terms as any funded bona fide offer from a third party; provided, however that Shareholder shall have the right, subject to applicable Federal Securities laws and the Lockup and Metering Agreement of even date herewith between Shareholder and the Company, to sell shares into a trading market without any obligation to first offer such shares to the Company.

4. Requirement of offer to company.

(a) The offer required to be made pursuant to Section 3 above shall be made not less than ten (10) business days prior to any proposed private transfer or disposition of shares. In case of the death of any involuntary transferee, or of Shareholder while then holding shares, his executor or administrator shall make an offer not less than 30 days prior to any distribution, transfer, or disposition of shares, but, in any event within one year after the date of death;

(b) In addition to any other offer required to be made hereunder by or on behalf of any involuntary transferee, in the case of any involuntary transfer, the involuntary transferee shall offer (within 30 days after such involuntary transfer) to sell all of his shares to the Company.

5. Notice of offer and acceptance. An offer required to be made pursuant to Section 3 above shall be made by a written notice to the Company, which shall state that the shares of the offeror are offered for sale, specifying the price and terms of the proposed sale, and (a) the name and address of the proposed purchaser to whom the offeror otherwise desires to transfer the offered shares, or (b) if the offeror is an involuntary transferee making an offer pursuant to paragraph 3(b), the name and address of each offeror and the price and the terms which he proposes to pay for such shares. An offer shall remain open for 10 business days after the day on which notice of the offer is received by the Company from Shareholder, and 30 days after the day on which notice of the offer is received by the Company from an involuntary transferee. Notice of acceptance shall be sufficiently given if, before midnight of the 10th business day (in the case of an offer from Shareholder) or the 30th day (in the case of an offer by an involuntary transferee), it is, delivered in person to the offeror or mailed to the address of the offeror stated in the notice.

6. Payment ofpurchase price. Unless other terms shall apply, the purchase price of shares sold under this Agreement, shall be paid in the same form as the proposed sale from the offeror at the time of closing the sale.

7. Offer requires full acceptance. An offer shall he deemed to be rejected in its entirety unless all shares owned and offered by the offeror are purchased.

8. Place and time of closing. If an offer is accepted, the sale shall be closed at the office of the Company at a time (during its ordinary business hours) fixed by the seller, not less than 10 nor more than 45 days after the date on which the notice of acceptance given.

9. Delivery of shares and documents. Upon the closing of any sale, the seller shall deliver to the buyer in exchange for payment by the buyer (in cash or in cash and note, as the case may be) the certificates of the shares being sold, endorsed for transfer, and each assignments, certificates of authority, tax release, consents to transfer instruments, and evidence of the title of seller and of his compliance with this Agreement as may be required by counsel for the Company. In the case of any

note in payment of shares, the seller shall be granted a security interest in such shares until the note is paid in full.

10. Release of shares from agreement. If an Offer is not accepted, the offeror may retain his shares

2

Right of First Refusal Agreement --Final



or may, within 120 days after the date on which he gave notice of his offer, transfer or dispose of his shares, at the price and on the terms stated in his notice, but he may not sell or dispose of such shares at a price less than that stated in his notice or on terms more favorable to the buyer than those stated in his notice.

11. Failure to make required offer. Upon the occurrence an event by reason of which an offer is required to be made under this Agreement, any of the Shareholders then holding shares may notify the record owner of the shares in question, or the person to whom the shares are about to or have passed or been disposed of, or both, that he elects to buy the shares, and shall give copies of the notice to the other Shareholders then holding shares. Such a notice shall he deemed a sufficient acceptance of an offer and the sale shall be closed as if an offer had been made and accepted, at the price and on the terms which should have been stated in an offer. In such a case other Shareholders then holding shares, who give like notices and copies within 20 days after the day on which that notice is given, may share in the purchase, in proportion to their shareholdings unless they agree otherwise.

12. Specific performance. If any person so required under this Agreement fails to give a notice, make an offer, sell shares or close a sale; or if any involuntary transferee fails to disclose the price at which he acquired the shares pursuant to the involuntary transfer; or if any person who proposes to transfer or dispose of shares for price less than the price under paragraph 5 or upon terms more favorable to a buyer than those stated in paragraph 6, or both, or fail to disclose to the Company then holding shares the name of anyone to whom and the price and terms on which he proposes to transfer or dispose of the shares, then, in any such event, if the failure continues for 30 days after notice to the one in default, any of such party may institute and maintain a proceeding to compel the specific performance of this Agreement by the one in default.

13. Endorsement on certificates. Each certificate for shares now held or hereafter issued shall be endorsed as follows:

"Notice"

"Any transfer or disposition of the shares evidenced by this certificate is subject to the restrictions and purchase options stated in, and such shares are transferable only upon compliance with, the provisions of an agreement dated as of June 30, 2015 between the corporation and one or more of its shareholders. A copy of such agreement is on file at the office of the corporation and the provisions thereof are incorporated herein by reference.

14.Notices. All notices, offers, acceptances, waivers, and other communications under this Agreement shall be in writing and shall be sufficiently given if delivered to the addressees in person or if mailed, postage prepaid, as follows:

If to Sibannac, Inc.: Sibannac Inc.

1313 E. Osborn Road, Suite 100

Phoenix, Arizona 85014

Attention: Chief Executive Officer

 

If to Shareholder: Kirk Kimerer

1313 E. Osborn Road, Suite 100

Phoenix, Arizona 85014

or to such other address as any of them by notice to the others, may designate from time to time.

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Right of First Refusal Agreement --Final



Except as otherwise provided in this Agreement, time shall be counted to or from the date of delivery or of mailing, as the case may be.

15. Agreements by corporation. In consideration of the premises the Company agrees for itself and for its successors and assigns: (a) insofar as is proper or required, it consents to this Agreement; (b) it will not transfer or reissue any of its shares in violation of this Agreement or without requiring proof of compliance with this Agreement (c) all share certificates issued by the Company during the, life of this Agreement shall be endorsed as stated above (d) and, upon written request given to the Company's Secretary by anyone required by this Agreement to make an offer, the Secretary shall certify to him the purchase price computed per share under 5 (a) above.

16. Term of agreement. This Agreement shall remain in force for eighteen (18) months from the date of inception of this Agreement, unless the company and Shareholder agree otherwise. This Agreement shall terminate in its entirety and shall thereafter be of no force or effect, and neither Shareholder nor any of the shares shall thereafter be bound or restricted hereby, on the date that is eighteen (18) months following the inception of this Agreement. Upon the termination of this Agreement as provided above, the Company shall cause all applicable restrictive legends to be removed from any certificates evidencing the shares. In addition, this Agreement shall automatically terminate and be of no further force or effect upon the occurrence of any Change in Control of the Company. As used herein, the term "Change in Control" means (i) any person or entity, or affiliated persons or entities, whether or not currently a shareholder of the Company, owning fifty percent (50%) or more of the outstanding Common Shares of the Company on a fully diluted basis, or otherwise having the power to direct the management or affairs of the Company; (ii) any merger, reorganization or recapitalization of the Company; or (iii) any sale of all or any substantial portion of the Company's assets.

17.Benefit. This Agreement shall be binding upon the parties and their legatees, distributees, legal representatives, successors, and assigns.

18.Counterparts. This Agreement is executed in counterparts each of which shall be considered an original. One is delivered to each of the Shareholder and one to the Company.

In witness whereof the Shareholder has signed this Agreement and the Company has caused its corporate name and seal to be hereunto signed, affixed, and attested by its proper officers.

Shareholder:

/s/Kirk Kimerer,

 

Sibannac, Inc.

/s/ Daniel Allen

President/CEO

4

Right of First Refusal Agreement -- Final

Sibannac (PK) (USOTC:SNNC)
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