NextPlay Technologies, Inc. 8-K


Exhibit 10.1 


 


PREFERRED
STOCK EXCHANGE AGREEMENT


 


This Preferred
Stock Exchange Agreement (this “Agreement”) dated and effective September 28, 2021 (the “Effective
Date”), is by and between, NextPlay Technologies, Inc., a Nevada corporation (the “Company”)
and NextBank International, Inc. (f/k/a International Financial Enterprise Bank, Inc.) (“NextBank”), each a
“Party” and collectively the “Parties”.


 


W I T N E S S E T H:


 


WHEREAS,
the Company desires to acquire ten thousand one hundred forty (10,140) shares of cumulative, non-compounding, non-voting, non-convertible,
perpetual Series A preferred shares of NextBank (the “Preferred Shares”), no par value per share, with a face
value of Ten Million One Hundred Forty Thousand and No/100 Dollars ($10,140,000.00);


 


WHEREAS,
NextBank desires to acquire five million seventy thousand (5,070,000) shares of common stock of the Company (the “Common Stock”),
$0.00001 par value per share;


 


WHEREAS,
NextBank desires to issue the Preferred Shares and exchange the Preferred Shares for shares of Company Common Stock, and the Company desires
to issue shares of Common Stock and exchange the Common Stock for Preferred Shares; and


 


WHEREAS,
the Company and NextBank desire to set forth in writing the terms and conditions of their agreement and understanding concerning the exchange
of the Preferred Shares for shares of Common Stock.


 


NOW, THEREFORE,
in consideration of the premises and the mutual covenants, agreements, and considerations herein contained, and other consideration, which
consideration the Parties hereby acknowledge and confirm the sufficiency and receipt of, the Parties hereto agree as follows:


 


1.                 
Mutual Representations, Covenants and Warranties of the Parties. Each of the Parties, for themselves and for the benefit
of each of the other Parties hereto, represents, covenants and warranties that:


 


1.1.           
Such Party has all requisite power and authority, corporate or otherwise, to execute and deliver this Agreement and to consummate
the transactions contemplated hereby. This Agreement constitutes the legal, valid and binding obligation of such Party enforceable against
such Party in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors’ rights generally and general equitable principles;


 


1.2.           
The execution and delivery by such Party and the consummation of the transactions contemplated hereby and thereby do not and shall
not, by the lapse of time, the giving of notice or otherwise: (i) constitute a violation of any law; or (ii) constitute a breach of any
provision contained in, or a default under, any governmental approval, any writ, injunction, order, judgment or decree of any governmental
authority or any agreement, contract or understanding to which such Party or its assets are bound or affected;






    NextPlay Technologies, Inc. – IFEB Exchange
Page 1 of 9


     


    

 


1.3.           
Any individual executing this Agreement on behalf of an entity has authority to act on behalf of such entity and has been duly
and properly authorized to sign this Agreement on behalf of such entity; and


 


		2.	Exchange.



 


2.1.           
The Preferred Shares shall have a coupon of 2% per annum, payable in quarterly instalments in arrears. The Preferred Shares are
non-redeemable by the Company. However, NextBank may, by the vote of the holders of a majority of its common stock, as defined below,
entitled to vote from time to time, call and redeem the Preferred Shares in exchange for the Common Stock plus accrued interest on the
Preferred Shares at the time of any such redemption; and


 


2.2.           
Upon a Change of Control, as hereinafter defined, the Company may cause NextBank to repurchase the Preferred Shares in exchange
for the Common Stock, plus accrued interest at the time of any such Change of Control. “Change of Control” shall
mean the sale of all or substantially all the assets of NextBank; any merger, consolidation or acquisition of NextBank with, by or into
another corporation, entity or person; or any change in the ownership of more than fifty percent (50%) of NextBank’s voting securities
or the economic rights of such NextBank’s securities.


 


3.                 
Representations, Warranties, Confirmations and Acknowledgements of NextBank. NextBank hereby represents and warrants
to the Company, that:


 


3.1.           
NextBank is a corporation duly organized, validly existing and in good standing under the laws of the Commonwealth of Puerto Rico
and has all requisite corporate power and authority to carry on its business as now conducted and as proposed to be conducted. NextBank
is duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify would have a material
adverse effect on its business or properties.


 


3.2.           
Capitalization and Voting Rights. The authorized capital of NextBank consists, or will consist immediately prior to the
Closing, of:


 


3.2.1.     
Preferred Stock. One Million (1,000,000) shares of preferred stock, no par value (the “Preferred Stock”)
of which none are outstanding with no series designation.


 


3.2.2.     
Common Stock. Twenty Million (20,000,000) shares of Class A common stock, par value $0.01 (the “Common Stock”),
of which 3,840,103 shares are issued and outstanding.


 


3.2.3.     
The outstanding shares of Common Stock and Preferred Stock are all duly and validly authorized and issued, fully paid and nonassessable,
and were issued in accordance with the registration or qualification provisions of the Securities Act of 1933, as amended (the “Act”),
and any relevant state securities laws, or pursuant to valid exemptions therefrom.






    NextPlay Technologies, Inc. – IFEB Exchange
Page 2 of 9


     


    

 


3.2.4.     
Except for the shareholders’ agreement dated as of March 14, 2018 (the “Shareholders’ Agreement”)
between NextBank and the common shareholders, NextBank is not a party or subject to any agreement or understanding, and, to NextBank’s
knowledge, there is no agreement or understanding between any persons and/or entities, which affects or relates to the voting or giving
of written consents with respect to any security of NextBank.


 


3.3.           
Authorization. All corporate action on the part of NextBank, its officers, directors and stockholders necessary for the
authorization, execution and delivery of this Agreement, the performance of all obligations of NextBank hereunder, and the authorization,
issuance sale and delivery of the Shares being sold hereunder has been taken or will be taken prior to the Closing, and this Agreement
constitutes the valid and legally binding obligation of NextBank, enforceable in accordance with its terms, except (a) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights
generally, (b) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies,
and (c) to the extent the transaction contemplated hereby may require regulatory approval.


 


3.4.           
Valid Issuance. The Preferred Shares being purchased by the Company hereunder, when issued, sold and delivered in accordance
with the terms of this Agreement for the consideration expressed herein, will be duly and validly issued, fully paid and nonassessable
and will be subject to restrictions on transfer under this Agreement and under applicable state and federal securities laws.


 


3.5.           
Governmental Consents. No consent, approval, order or authorization of, or registration, qualification, designation, declaration
or filing with, any federal, state or local governmental authority on the part of NextBank is required in connection with the consummation
of the transactions contemplated by this Agreement, except (a) the filing pursuant to Regulation D promulgated by the Securities and Exchange
Commission under the Act, as amended and the rules thereunder, which filing will be effected within fifteen (15) days of the sale of the
Shares hereunder; (b) the filings required by NextBank’s regulator; or (c) such other post-closing filings as may be required.


 


3.6.           
Offering. Subject in part to the truth and accuracy of the Company’s representations set forth in Section 4 of this
Agreement, the offer, sale and issuance of the Preferred Shares as contemplated by this Agreement are exempt from the registration requirements
of any applicable state and federal securities laws, and neither NextBank nor any authorized agent acting on its behalf will take any
action hereafter that would cause the loss of such exemption.


 


3.7.           
Disclosure. NextBank has fully provided the Company with all the information that the Company has requested for deciding
whether to purchase the Preferred Shares. No certificates made or delivered in connection with this Agreement contain any untrue statement
of a material fact or omit to state a material fact necessary to make the statements herein or therein not misleading.






    NextPlay Technologies, Inc. – IFEB Exchange
Page 3 of 9


     


    

 


		3.8.	Additional Representations.



 


3.8.1.     
NextBank is an “accredited investor”, as such term is defined in Regulation D of the Securities Act;


 


3.8.2.     
NextBank is familiar with the business and operations of the Company and has been given the opportunity to obtain from the Company
all information that NextBank has requested regarding its business plans and prospects;


 


3.8.3.     
NextBank will acquire the Common Stock for its own account and not with a view to a sale or distribution thereof as that term is
used in Section 2(a)(11) of the Securities Act, in a manner which would require registration under the Securities Act or any state securities
laws


 


3.8.4.     
NextBank acknowledges that the Common Stock has not been registered under the Securities Act, nor registered or qualified under
any state securities laws, and that the Common Stock is being offered and sold pursuant to an exemption from such registration and qualification
based in part upon such NextBank’s representations contained herein;


 


3.8.5.     
NextBank has knowledge and experience in financial and business matters, is capable of evaluating the merits and risks of the Common
Stock and is capable of bearing and managing the risk of investment in the Common Stock. NextBank recognizes that the Common Stock has
not been registered under the Securities Act, nor under the securities laws of any state and, therefore, cannot be resold unless the resale
of the Common Stock is registered under the Securities Act or unless an exemption from registration is available. NextBank has carefully
considered and has, to the extent NextBank believes such discussion necessary, discussed with its professional, legal, tax and financial
advisors, the suitability of an investment in the Common Stock for its particular tax and financial situation and it and its advisers,
if such advisors were deemed necessary, have determined that the Common Stock is a suitable investment for it. NextBank confirms that
it has not been offered the Common Stock by any form of general solicitation or advertising;


 


3.8.6.     
NextBank understands and acknowledges that each certificate or instrument representing the Common Stock will be endorsed with the
following legend (or a substantially similar legend), unless or until registered under the Securities Act, or unless an exemption from
registration exists in connection therewith:




    NextPlay Technologies, Inc. – IFEB Exchange
Page 4 of 9


     


    

THE SECURITIES EVIDENCED BY
THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR
HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, THE TRANSFER IS MADE IN COMPLIANCE
WITH RULE 144 PROMULGATED UNDER SUCH ACT OR THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THESE SECURITIES WHICH IS REASONABLY
SATISFACTORY TO THE COMPANY, STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS
DELIVERY REQUIREMENTS OF SUCH ACT.


 


3.8.7.     
Prior to the NextBank’s entry into this Agreement, NextBank has had an opportunity to review, and has in fact reviewed,
(i) the Company’s Annual Report on Form 10-K for the year ended February 28, 2021; and (ii) the Company’s current reports
on Form 8-K and Form 10-Qs as filed with the SEC (which filings can be accessed by going to https://www.sec.gov/search/search.htm, typing
“Monaker Group” in the “Company name” field, and clicking the “Search”
button), from January 1, 2020, to the Effective Date, in each case (i) through (ii), including the audited and unaudited financial statements,
description of business, risk factors, results of operations, certain transactions and related business disclosures described therein
(collectively the “Disclosure Documents”) and an independent investigation made by it of the Company. NextBank
acknowledges that due to its receipt of and review of the information described above, it has received similar information as would be
included in a Registration Statement filed under the Securities Act.


 


4.                 
Big Boy Representation. NextBank acknowledges that it is a sophisticated investor capable of assessing and assuming
investment risks with respect to securities, including securities such as the Common Stock, and further acknowledges that the Company
is entering into this Agreement with NextBank in reliance on this acknowledgment and with NextBank’s understanding, acknowledgment
and agreement that the Company is privy to material non-public information regarding the Company (collectively, the “Non-Public
Information”), which Non- Public Information may be material to a reasonable investor, such as NextBank, when making investment
disposition decisions, including the decision to enter into the Agreement, and NextBank’s decision to enter into the Agreement is
being made with full recognition and acknowledgment that the Company is privy to the Non-Public Information, irrespective of whether such
Non-Public Information has been provided to NextBank. NextBank hereby waives any claim, or potential claim, it has or may have against
the Company relating to the Company’s possession of Non-Public Information.




    NextPlay Technologies, Inc. – IFEB Exchange
Page 5 of 9


     


    

5.                 
 Representations of the Company. The Company hereby represents and warrants to NextBank, that:


 


5.1.           
The Common Stock to be issued by the Company pursuant to this Agreement, when issued in accordance with the provisions hereof,
will be validly issued by the Company, fully paid and nonassessable shares of the Company.


 


5.2.           
The Company has full power and authority to enter into this Agreement and that such Agreement constitutes its valid and legally
binding obligation, enforceable in accordance with its terms except (a) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of creditors’ rights generally, and (b) as limited by laws
relating to the availability of specific performance, injunctive relief or other equitable remedies.


 


5.3.           
This Agreement is made with the Company in reliance upon the Company’s representation to NextBank, which by the Company’s
execution of this Agreement, the Company hereby confirms, that the Preferred Shares to be received by the Company will be acquired for
investment for the Company’s own account, not as a nominee or agent, and not with a view to the distribution of any part thereof,
and that the Company has no present intention of selling, granting any participation in, or otherwise distributing the same.


 


5.4.           
The Company believes it has received all the information it considers necessary or appropriate for deciding whether to purchase
the Preferred Shares. The Company further represents that it has had an opportunity to ask questions and receive answers from NextBank
regarding the terms and conditions of the offering of the Preferred Shares and the business, properties, prospects and financial condition
of NextBank.


 


5.5.           
The Company is an “accredited investor” within the meaning of SEC Rule 501 of Regulation D, as presently
in effect.


 


		6.	Conditions to Closing



6.1.           
Conditions of the Company’s Obligations at Closing. The obligations of the Company under this Agreement are subject
to the fulfillment on or before the Closing of each of the following conditions.


6.1.1.     
Representations and Warranties. The representations and warranties of NextBank contained herein shall be true on and as
of the Closing.


6.1.2.     
Qualifications. All authorizations, approvals, or permits, if any, of any governmental authority or regulatory body of Puerto
Rico and the United States or of any state that are required in connection with the lawful issuance and sale of the Preferred Shares pursuant
to this Agreement shall be duly obtained and effective as of the Closing.


6.1.3.     
Proceedings and Documents. All corporate and other proceedings in connection with the transactions contemplated at the
Closing and all documents incident thereto shall be reasonably satisfactory in form and substance to the Company.






    NextPlay Technologies, Inc. – IFEB Exchange
Page 6 of 9


     


    

6.2.           
Conditions of NextBank’s Obligations at Closing. The obligations of NextBank to the Company under this Agreement are
subject to the fulfillment on or before the Closing of each of the following conditions by the Company:


6.2.1.     
Representations and Warranties. The representations and warranties of the Company contained herein shall be true on and
as of the Closing with the same effect as though such representations and warranties had been made on and as of the Closing.


6.2.2.     
Payment of Purchase Price. The Company shall issue the Common Stock to NextBank.


6.2.3.     
Qualifications. All authorizations, approvals, or permits, if any, of any governmental authority or regulatory body of Puerto
Rico and the United States or of any state that are required in connection with the lawful issuance and sale of the Common Stock pursuant
to this Agreement shall be duly obtained and effective as of the Closing.


7.             
Further Assurances. The Company and NextBank agree that, from time to time, each of them will take such other action
and to execute, acknowledge and deliver such contracts, deeds, representations, confirmations or other documents as may be reasonably
requested and necessary or appropriate to allow for the transactions contemplated herein.


 


8.             
Entire Agreement. This Agreement sets forth all of the promises, agreements, conditions, understandings, warranties
and representations among the Parties with respect to the transactions contemplated hereby and thereby, and supersedes all prior agreements,
arrangements and understandings between the Parties, whether written, oral or otherwise.


 


9.             
Controlling Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada
and applicable laws of the United States of America.


 


10.             
Finder’ Fee. Each Party represents that it neither is nor will be obligated for any finders’ fee or commission
in connection with this transaction. The Company and NextBank agree to indemnify and to hold harmless one another from any liability for
any commission or compensation in the nature of a finders’ fee (and the costs and expenses of defending against such liability or
asserted liability) for which the Company or NextBank or any of their officers, partners, employees, or representatives is responsible.


 


11.             
Expenses. All fees, costs and expenses incurred in connection with this Agreement and the transactions contemplated
hereby shall be paid by the party incurring such fees, costs and expenses.




    NextPlay Technologies, Inc. – IFEB Exchange
Page 7 of 9


     


    

12.             
 Savings Clause. If any provision of this Agreement is prohibited by law or held to be unenforceable, the remaining
provisions hereof shall not be affected, and this Agreement shall continue in full force and effect as if such unenforceable provision
had never constituted a part hereof, and the unenforceable provision shall be automatically amended so as best to accomplish the objectives
of such unenforceable provision within the limits of applicable law.


 


13.             
Review and Construction of Documents. NextBank represents to the Company and the Company represents to NextBank, that
(a) before executing this Agreement, said Party has fully informed itself of the terms, contents, conditions and effects of this Agreement;
(b) said Party has relied solely and completely upon its own judgment in executing this Agreement; (c) said Party has had the opportunity
to seek and has obtained the advice of its own legal, tax and business advisors before executing this Agreement; (d) said Party has acted
voluntarily and of its own free will in executing this Agreement; and (e) this Agreement is the result of arm’s length negotiations
conducted by and among the Parties and their respective counsel.


 


14.             
Specific Performance. Without limiting or waiving in any respect any rights or remedies of any party under this Agreement
now or hereinafter existing at law or in equity or by statute, each of the parties hereto shall be entitled to seek specific performance
of the obligations to be performed by the other in accordance with the provisions of this Agreement.


 


15.             
Counterparts and Signatures. This Agreement and any signed agreement or instrument entered into in connection with this
Agreement, and any amendments hereto or thereto, may be executed in one or more counterparts, all of which shall constitute one and the
same instrument. Any such counterpart, to the extent delivered by means of a facsimile machine or by .pdf, .tif, .gif, .jpeg or similar
attachment to electronic mail (any such delivery, an “Electronic Delivery”) shall be treated in all manner and
respects as an original executed counterpart and shall be considered to have the same binding legal effect as if it were the original
signed version thereof delivered in person. At the request of any party, each other party shall re execute the original form of this Agreement
and deliver such form to all other parties. No party shall raise the use of Electronic Delivery to deliver a signature or the fact that
any signature or agreement or instrument was transmitted or communicated through the use of Electronic Delivery as a defense to the formation
of a contract, and each such party forever waives any such defense, except to the extent such defense relates to lack of authenticity.


 


 


[Remainder of page left intentionally
blank. Signature page follows.]


 




    NextPlay Technologies, Inc. – IFEB Exchange
Page 8 of 9


     


    

IN WITNESS WHEREOF, the Parties
hereto have executed this Agreement as of the Effective Date.


 


“Company”


 


NextPlay Technologies, Inc.


 


 


 


By: 






 





Its:Co-CEO


Printed Name: Bill Kerby


 


“NextBank”


 


NextBank International, Inc.


(f/k/a International Financial Enterprise Bank, Inc.)


 


 


 


 


 





 By:


  


Its: President




Printed Name: Jorge E. Miró Hernández


 





 






    NextPlay Technologies, Inc. – IFEB Exchange
Page 9 of 9