Sunset Island Group Inc (SIGO)

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DESIGNATION AND AMOUNT

The designation of this series, which consists of 4,600,000 shares of Series A Convertible Preferred Stock

VOTING RIGHTS

Except to the extent otherwise required by applicable Law, each holder of outstanding shares of Series A Preferred Stock shall be entitled to the number of votes equal to the number of whole shares of Common.

CONVERSION RIGHTS

Each holder of shares of Series A Preferred Stock may, at any time and from time to time, convert (an “Optional Conversion”) each of its shares of Series A Preferred Stock into fully paid and nonassessable shares of Common Stock at a rate equal to 1 Series A share for 10 shares of the Common Stock. However, any common stock received as part of the conversion shall be restricted for 36 months from the date of conversion.