# EDGAR Filing Document

**Accession Number:** 0001389518
**File Stem:** 0001493152-23-005832
**Filing Date:** 2023-2
**Character Count:** 34171
**Document Hash:** 8bfc348285293b989002824996728226
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-23-005832.hdr.sgml**: 20230223

**ACCESSION NUMBER**: 0001493152-23-005832

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230217

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Termination of a Material Definitive Agreement

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230223

**DATE AS OF CHANGE**: 20230223

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Clubhouse Media Group, Inc.
- **CENTRAL INDEX KEY:** 0001389518
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-AMUSEMENT & RECREATION SERVICES [7900]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 333-140645
- **FILM NUMBER:** 23656143

**BUSINESS ADDRESS:**
- **STREET 1:** 3651 LINDELL ROAD
- **STREET 2:** SUITE D517
- **CITY:** LAS VEGAS
- **STATE:** NV
- **ZIP:** 89103
- **BUSINESS PHONE:** 702-479-3016

**MAIL ADDRESS:**
- **STREET 1:** 3651 LINDELL ROAD
- **STREET 2:** SUITE D517
- **CITY:** LAS VEGAS
- **STATE:** NV
- **ZIP:** 89103

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Tongji Healthcare Group, Inc.
- **DATE OF NAME CHANGE:** 20070209

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the**

**Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **<u>February 17, 2023</u>**

**CLUBHOUSE MEDIA GROUP, INC.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Nevada** | **333-140645** | **99-0364697** |
| (State or other jurisdiction of<br> incorporation or organization) | (Commission<br> File Number) | (IRS Employer<br> Identification No.) |

---

**3651 Lindell Road, D517**

**<u>Las Vegas, Nevada 89103</u>**

(Address of principal executive offices) (Zip code)

**<u>(702) 479-3016</u>**

(Registrant's telephone number, including area code)

**<u>N/A</u>**

(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 (<u>see</u> 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))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| N/A | N/A | N/A |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 1.01. Entry into a Material Definitive Agreement.**

On February 17, 2023, Clubhouse Media Group, Inc. (the "Company") entered into a Settlement and Release Agreement (the "Agreement") by and between the Company and 1800 Diagonal Lending LLC (f/k/a Sixth Street Lending LLC) (the "Lender"). As previously disclosed, the Company previously issued to the Lender (i) a convertible promissory note dated July 8, 2022 ("Note #1"); and (ii) a convertible promissory note dated June 23, 2022 ("Note #2" and together with Note #1, the "Notes"). As of February 17, 2023, the Company owed an aggregate of $109,832.09 pursuant to the Notes. The obligations underlying the Notes are collectively referred to herein as the "Debt." Pursuant to the terms of the Agreement, the Company and the Lender agreed to settle the Debt and terminate the Notes.

Pursuant to the terms of the Agreement, in full and final settlement of the Debt, the Company agreed to (i) pay to the Lender $105,000; and (ii) issue to the Lender shares of the Company's common stock with respect to the Lender's notice of conversion dated February 16, 2023 relating to a partial conversion of Note #1 (with a then-current balance of $45,479.35).

As a result, as of February 17, 2023, pursuant to the terms of the Agreement, the Debt was settled and the Notes were terminated.

**Item 1.02. Termination of a Material Definitive Agreement.**

The disclosure set forth under Item 1.01 above is incorporated herein by reference.

**Item 7.01. Regulation FD Disclosure.**

On February 23, 2023, the Company issued a press release announcing settlement of the Debt.

The press release is furnished herewith as Exhibit 99.1 and is incorporated by reference herein. The information contained in the press release is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that Section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

**Item 9.01. Financial Statements and Exhibits.**

(d) Exhibits

---

| | |
|:---|:---|
| **Exhibit**<br>**Number** | <br>**Description** |
| 10.1 | [Settlement and Release Agreement, dated February 17, 2023, by and between the registrant and 1800 Diagonal Lending LLC (f/k/a Sixth Street Lending LLC).](ex10-1.htm) |
| 99.1 | [Press release issued by the registrant on February 23, 2023.](ex99-1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

**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 thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| Date: February 23, 2023 | **CLUBHOUSE MEDIA GROUP, INC.** | **CLUBHOUSE MEDIA GROUP, INC.** |
|  | By: | */s/ Amir Ben-Yohanan* |
|  |  | Amir Ben-Yohanan |
|  |  | Chief Executive Officer |

---

## Exhibit 10.1

**Exhibit 10.1**

**<u>Settlement and Release Agreement</u>**

Dated as of February 17, 2023

This Settlement and Release Agreement (the "Agreement") is entered into as of the date first set forth above by and between Clubhouse Media Group, Inc., a Nevada corporation ("CMGR"); and 1800 DIAGONAL LENDING LLC, a Virginia limited liability company formerly named Sixth Street Lending LLC ("Holder"). Each of CMGR and Holder may be referred to herein individually as a "Party" and collectively as the "Parties."

WHEREAS, the Holder is the holder of that certain Convertible Promissory Note of the Company in favor of the Holder dated as of July 8, 2022 ("Note 1") and that certain Convertible Promissory Note of the Company in favor of the Holder, dated as of June 23, 2022 ("Note 2" and, together with Note 1, collectively, the "Notes") pursuant to which, as of the date hereof, CMGR collectively owes to Holder the sum of $109,832.09 (the obligations underlying the Notes, collectively, the "Debt");

WHEREAS, the Holder has partially converted Note 1 into shares of common stock pursuant to the terms of Note 1 with a current balance of $45,479.35 which balance has been reduced by a partial conversion pursuant to a notice of conversion from the Holder dated yesterday, February 16, 2023 ("Final Conversion");

WHEREAS, the Parties now wish to settle the Debt and terminate the Notes as set forth herein;

NOW THEREFORE, in consideration of the covenants and agreements of the Parties as set forth herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

1. <u>Recitals</u>. The recitals set forth above are true and correct and are, by this reference, made part of this Agreement.

2. <u>Payment</u>. In full and final settlement of the Debt, CMGR shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) pay to Holder the sum of $105,000.00 (the "Settlement Amount") by delivery of a wire transfer to the Holder (at the following instructions) on or by 5pm EST Friday, February 17, 2023 (the "Deadline"):

---

| | |
|:---|:---|
| Bank Name: | United Bank Fairfax |
| Bank Address: | 11185 Fairfax Road, Fairfax, VA 22030 |
| Routing Number: |  |
| Beneficiary Account Number: |  |
| Beneficiary: | 1800 Diagonal Lending LLC |
| Mailing Address: | 1800 Diagonal Road, Suite 623, Alexandria, VA 22314; and |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) issue to the Holder the shares of common stock of the Company with respect to the Final Conversion prior to the Deadline ("Conversion Shares"; and together with the Settlement Amount, collectively, the "Settlement Consideration").

In the event that the Settlement Consideration, in its entirety, is not received by the Holder on or prior to the Deadline, this Agreement shall be terminated ab initio.

Subject to receipt of the Settlement Consideration by the Holder prior to the Deadline, each of the Notes shall be deemed redeemed and paid in full and shall hereafter be null and void and of no force or effect.

3. <u>Release of Claims</u>. Subject to and effective upon timely receipt of the Settlement Consideration by the Holder, each Party (the "Releasing Party"), for itself and its Affiliates (as defined below), and for each of their respective predecessors, successors, assigns, heirs, representatives, and agents and for all related parties, and all persons acting by, through, under or in concert with any of them in both their official and personal capacities (collectively, the "Releasing Entities") hereby irrevocably, unconditionally and forever releases, discharges and remises the other Party and each of its Affiliates and their respective predecessors, successors, assigns, heirs, representatives, and agents and for all related parties and all persons acting by, through, under or in concert with any of them in both their official and personal capacities (collectively, the "Released Parties"), from all claims of any type and all manner of action and actions, cause and causes of action, suits, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, controversies, agreements, promises, variances, trespasses, damages, judgments, executions, claims and demands whatsoever, in law or in equity, known or unknown, that any Releasing Entity may have now or may have in the future, against any of the Released Parties to the extent that those claims arose, may have arisen, or are based on events which occurred at any point in the past up to and including the Closing Date, to the extent related to or arising out of or in connection with the Debt or the Notes, but specifically excluding any claims arising out of or pertaining to this Agreement (collectively, the "Released Claims"). The Releasing Party represents and warrants that no Released Claim released herein has been assigned, expressly, impliedly, or by operation of law, and that all Released Claims released herein are owned by the Releasing Party, which has the respective sole authority to release them. The Releasing Party, on its own behalf and on behalf of its other Releasing Entities, agrees that it and its other Releasing Entities shall forever refrain and forebear from commencing, instituting or prosecuting any lawsuit action or proceeding, judicial, administrative or otherwise collect or enforce any Released Claim, which is released and discharged herein. For purposes herein, (i) "Affiliate" means, with respect to a specified Person, any other Person that directly or indirectly Controls, is Controlled by or is under common Control with, the specified Person; (ii) "Control" means (a) the possession, directly or indirectly, of the power to vote 51% or more of the securities or other equity interests of a Person having ordinary voting power, (b) the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, by contractor otherwise, or (c) being a director, officer, executor, trustee or fiduciary (or their equivalents) of a Person or a Person that controls such Person; and (iii) "Person" means a natural person, a corporation, a limited liability company, a partnership, an association, a trust or any other entity or organization, including a government or political subdivision or any agency or instrumentality thereof.

4. <u>Covenant Not to File a Claim and Indemnification</u>. Each Releasing Party agrees not to file, and agrees not to be a party to or assist in, any suit, claim, charge, complaint, action, or cause of action against any Released Party directly related to the Released Claims, and further agrees to indemnify and save harmless such Released Parties from and against any and all losses, including, without limitation, the cost of defense and legal fees, occurring as a result of any claims, charges, complaints, actions, or causes of action made or brought by such Releasing Party in violation of the terms and conditions of this Agreement.

5. <u>Affirmations</u>. Each Releasing Party, on its own behalf and on behalf of its other Releasing Entities, affirms that neither it or any of its other Releasing Entities has filed, caused to be filed, or presently is a party to any claim, complaint, or action against any Released Party in any forum or form and should any such charge or action be filed by Releasing Party or its other Releasing Entities on the behalf of the Releasing Party or its other Releasing Entities involving matters covered by Section 3. This Agreement extends to, and is for the benefit of, the Parties, their respective successors, assigns and agents and anyone claiming by, through or under the Parties.

6. <u>Representations and Warranties of Holder</u>. Holder represents and warrants to CMGR as set forth in this Section 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Due Authority; No Violation</u>. Holder has all requisite rights and authority or the capacity
 to execute, deliver and perform its obligations under this Agreement. The execution and delivery
 of this Agreement and the consummation of the transactions contemplated hereby have been
 duly and validly authorized by Holder, and no other proceedings are necessary to authorize
 the execution, delivery and performance of this Agreement or the transactions contemplated
 hereby or thereby on the part of Holder. The execution, delivery and performance of this
 Agreement will not (x) violate, conflict with, or result in the breach, acceleration, default
 or termination of, or otherwise give any other contracting party the right to terminate,
 accelerate, modify or cancel any of the terms, provisions, or conditions of any material
 agreement or instrument to which Holder is a party or by which its assets may be bound or
 (y) constitute a violation of any material applicable law, rule or regulation, or of any
 judgment, order, injunctive award or decree of any governmental authority applicable to Holder
 or (z) conflict with, result in the breach or termination of any provision of, or constitute
 a default under (in each case whether with or without the giving of notice or the lapse of
 time, or both) any order, judgment, arbitration award, or decree to which Holder is a party
 or by which it or any of its assets or properties are bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Approvals</u>.
 No approval, authority, or consent of or filing by Holder with, or notification to, any governmental
 authority, is necessary to authorize the execution and delivery of this Agreement or the
 consummation of the transactions contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Enforceability</u>.
 This Agreement has been duly executed and delivered by Holder and, assuming that this Agreement
 constitutes the legal, valid and binding obligation of CMGR, constitutes the legal, valid,
 and binding obligation of Holder, enforceable against Holder in accordance with its terms,
 except to the extent that the enforceability thereof may be limited by applicable bankruptcy,
 insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws of general
 application affecting enforcement of creditors' rights generally.

7. <u>Representations and Warranties of CMGR</u>. CMGR represents and warrants to Holder as set forth in this Section 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Due Authority; No Violation</u>. CMGR has all requisite rights and authority or the capacity
 to execute, deliver and perform its obligations under this Agreement. The execution and delivery
 of this Agreement and the consummation of the transactions contemplated hereby have been
 duly and validly authorized by CMGR, and no other proceedings are necessary to authorize
 the execution, delivery and performance of this Agreement or the transactions contemplated
 hereby or thereby on the part of CMGR. The execution, delivery and performance of this Agreement
 will not (x) violate, conflict with, or result in the breach, acceleration, default or termination
 of, or otherwise give any other contracting party the right to terminate, accelerate, modify
 or cancel any of the terms, provisions, or conditions of any material agreement or instrument
 to which CMGR is a party or by which its assets may be bound or (y) constitute a violation
 of any material applicable law, rule or regulation, or of any judgment, order, injunctive
 award or decree of any governmental authority applicable to CMGR or (z) conflict with, result
 in the breach or termination of any provision of, or constitute a default under (in each
 case whether with or without the giving of notice or the lapse of time, or both) any order,
 judgment, arbitration award, or decree to which CMGR is a party or by which it or any of
 its assets or properties are bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Approvals</u>.
 No approval, authority, or consent of or filing by CMGR with, or notification to, any governmental
 authority, is necessary to authorize the execution and delivery of this Agreement or the
 consummation of the transactions contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Enforceability</u>.
 This Agreement has been duly executed and delivered by CMGR and, assuming that this Agreement
 constitutes the legal, valid and binding obligation of Holder, constitutes the legal, valid,
 and binding obligation of CMGR, enforceable against CMGR in accordance with its terms, except
 to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency,
 reorganization, moratorium, fraudulent conveyance and other similar laws of general application
 affecting enforcement of creditors' rights generally.

8. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Governing Law</u>. This Agreement, and any and all claims, proceedings or causes of action relating
 to this Agreement or arising from this Agreement or the transactions contemplated herein,
 including, without limitation, tort claims, statutory claims and contract claims, shall be
 interpreted, construed, governed and enforced under and solely in accordance with the substantive
 and procedural laws of the Commonwealth of Virginia, in each case as in effect from time
 to time and as the same may be amended from time to time, and as applied to agreements performed
 wholly within the Commonwealth of Virginia.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Jurisdiction</u>.
 ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE OTHER
 TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREIN SHALL BE
INSTITUTED SOLELY IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE COMMONWEALTH OF VIRGINIA, IN EACH CASE LOCATED
IN ALEXANDRIA, VIRGINIA, AND EACH PARTY IRREVOCABLY SUBMITS TO THE PERSONAL JURISDICTION OF SUCH COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING.
THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING IN SUCH
COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY
SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Waiver of Jury Trial</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) EACH
 PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT
 IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT
 OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREIN (WHETHER BASED ON
 CONTRACT, TORT OR ANY OTHER THEORY).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each
 of the Parties acknowledge that each has been represented in connection with the signing
 of this waiver by independent legal counsel selected by the respective Party and that such
 Party has discussed the legal consequences and import of the waiver set forth in Section
 8(c)(i) with legal counsel. Each of the Parties further acknowledge that each has read and
 understands the meaning of this waiver and grants this waiver knowingly, voluntarily, without
 duress and only after consideration of the consequences of this waiver with legal counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Notices</u>.
 Any notice or other communications required or permitted hereunder shall be in writing and
 shall be sufficiently given if personally delivered to it or sent by email, overnight courier
 or registered mail or certified mail, postage prepaid. Any Party may change its address for
 notices hereunder upon notice to each other Party in the manner for giving notices hereunder.
 Any notice hereunder shall be deemed to have been given (i)
upon receipt, if personally delivered, (ii) on the day after dispatch, if sent by overnight courier, (iii) upon dispatch, if transmitted
by email with return receipt requested and received and (iv) three (3) days after mailing, if sent by registered or certified mail. Notices
shall be sent as follows:

---

| |
|:---|
| if to the Company, to: |
| &nbsp;&nbsp;&nbsp;Clubhouse Media Group, Inc. |
| &nbsp;&nbsp;&nbsp;Attn: Amir Ben-Yohanan |
| &nbsp;&nbsp;&nbsp;201 Santa Monica Blvd., Suite 30 |
| &nbsp;&nbsp;&nbsp;Santa Monica, California 90401 |
| &nbsp;&nbsp;&nbsp;Email: |
| If to the Holder, to: |
| &nbsp;&nbsp;&nbsp;1800 DIAGONAL LENDING LLC |
| &nbsp;&nbsp;&nbsp;Attn: Curt Kramer |
| &nbsp;&nbsp;&nbsp;1800 Diagonal Road, Suite 623 |
| &nbsp;&nbsp;&nbsp;Alexandria VA 22314 |
| &nbsp;&nbsp;&nbsp;e-mail: |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Third Party Beneficiaries</u>. This contract is strictly between the Parties and except as specifically
 provided herein, no other Person, employee, agent, independent contractor or any other Person
 shall be deemed to be a third-party beneficiary of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Non-Disparagement</u>.
 Each Party, its officers and directors, agree not to make any critical, negative or disparaging
 remarks about the other Party, its officers, directors, agents, employees, attorneys, or
 representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Expenses</u>.
 Other than as specifically set forth herein, each of the Parties will bear their own respective
 expenses, including legal, accounting and professional fees, incurred in connection with
 this Agreement or the transactions contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Entire Agreement</u>. This Agreement represents the entire agreement between the Parties relating
 to the subject matter thereof and supersedes all prior agreements, understandings and negotiations,
 written or oral, with respect to such subject matter herein and therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Survival</u>.
 The representations, warranties, and covenants of the respective Parties shall survive the
 consummation of the transactions contemplated by this Agreement; and the consummation of
 the transactions herein for a period of two (2) years except as otherwise provided in this
 Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Amendment; Waiver; Remedies</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) This
 Agreement may be amended, modified, superseded, terminated or cancelled, and any of the terms,
 covenants, representations, warranties or conditions hereof may be waived, only by a written
 instrument executed by all of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Every
 right and remedy provided herein shall be cumulative with every other right and remedy, whether
 conferred herein, at law, or in equity, and may be enforced concurrently herewith, and no
 waiver by any Party of the performance of any obligation by the other shall be construed
 as a waiver of the same or any other default then, theretofore, or thereafter occurring or
 existing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Neither
 any failure or delay in exercising any right or remedy hereunder or in requiring satisfaction
 of any condition herein nor any course of dealing shall constitute a waiver of or prevent
 any Party from enforcing any right or remedy or from requiring satisfaction of any condition.
 No notice to or demand on a Party waives or otherwise affects any obligation of that Party
 or impairs any right of the Party giving such notice or making such demand, including any right
to take any action without notice or demand not otherwise required by this Agreement. No exercise of any right or remedy with respect
to a breach of this Agreement shall preclude exercise of any other right or remedy, as appropriate to make the aggrieved Party whole
with respect to such breach, or subsequent exercise of any right or remedy with respect to any other breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notwithstanding
 anything else contained herein, no Party shall seek, nor shall any Party be liable for, consequential,
 punitive or exemplary damages, under any tort, contract, equity, or other legal theory, with
 respect to any breach (or alleged breach) of this Agreement or any provision hereof or any
 matter otherwise relating hereto or arising in connection herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Headings</u>.
 The headings contained in this Agreement are intended solely for convenience and shall not
 affect the rights of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>No Assignment or Delegation</u>. This Agreement shall be binding upon and shall inure to the
 benefit of the Parties and their respective successors and permitted assigns. No Party shall
 have any power or any right to assign or transfer, in whole or in part, this Agreement, or
 any of its rights or any of its obligations hereunder without the prior written consent of
 the other Party and any such purported assignment in contravention of the provisions herein
 shall be null and void and of no force or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Further Assurances</u>. Each Party shall execute and deliver such documents and take such action,
 as may reasonably be considered within the scope of such Party's obligations hereunder,
 necessary to effectuate the transactions contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Specific Performance</u>. The Parties agree that irreparable damage would occur in the event that
 any of the provisions of this Agreement were not performed by them in accordance with the
 terms hereof or were otherwise breached and that each Party hereto shall be entitled to an
 injunction or injunctions, specific performance and other equitable relief to prevent breaches
 of the provisions hereof and to enforce specifically the terms and provisions hereof, without
 the proof of actual damages, in addition to any other remedy to which they are entitled at
 law or in equity. Each Party agrees to waive any requirement for the security or posting
 of any bond in connection with any such equitable remedy, and agrees that it will not oppose
 the granting of an injunction, specific performance or other equitable relief on the basis
 that (a) the other Party has an adequate remedy at law, or (b) an award of specific performance
 is not an appropriate remedy for any reason at law or equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Counterparts</u>.
 This Agreement may be executed in multiple counterparts, each of which shall be deemed an
 original and all of which taken together shall be but a single instrument. The execution
 and delivery of a facsimile or other electronic transmission of a signature to this Agreement
 shall constitute delivery of an executed original and shall be binding upon the person whose
 signature appears on the transmitted copy.

*[Signature page follows]*

IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the date hereof.

---

| | |
|:---|:---|
| Clubhouse Media Group, Inc. | Clubhouse Media Group, Inc. |
| By: | */s/ Amir Ben-Yohanan* |
| Name: | Amir Ben-Yohanan |
| Title: | Chief Executive Officer |
| 1800 DIAGONAL LENDING LLC | 1800 DIAGONAL LENDING LLC |
| By: | */s/ Curt Kramer* |
| Name: | Curt Kramer |
| Title: | President |

---

## Exhibit 99.1

**Exhibit 99.1**

**Clubhouse Media Group, Inc. Announces Further Reduction Of Company Debt**

LOS ANGELES, February 23, 2023 /PRNewswire/ — Clubhouse Media Group, Inc. (OTCMKTS: CMGR) ("Clubhouse Media"), a social media firm and digital agency, today announced that it has reduced its outstanding debt by approximately $110 thousand. Clubhouse Media's outstanding debt to noteholders has been reduced to approximately $4.4 million (not including accrued interest), following the reduction.

**Management Commentary**

"We are committed to reducing our debt and strengthening the balance sheet" said Scott Hoey, Chief Financial Officer of Clubhouse Media. "Our goal is to continue down this path until all (or at least a majority) of our debt is eliminated."

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<u>About Clubhouse Media Group, Inc.</u>

Clubhouse Media offers and deal-making services, a management division for brands and individual influencer clients, and an investment arm for joint ventures and acquisitions for companies in the social media influencer space.

FORWARD-LOOKING STATEMENTS: This release contains "forward-looking statements". Forward-looking statements also may be included in other publicly available documents issued by Clubhouse Media and in oral statements made by our officers and representatives from time to time. These forward-looking statements are intended to provide management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. They can be identified by the use of words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "would," "could," "will" and other words of similar meaning in connection with a discussion of future operating or financial performance.

Examples of forward-looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance.

Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause Clubhouse Media's actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. Such risks, uncertainties and other factors include, among others such as, but not limited to economic conditions, changes in the laws or regulations, demand for Clubhouse Media's products and services, the effects of competition and other factors that could cause actual results to differ materially from those projected or represented in the forward-looking statements. Any forward-looking information provided in this release should be considered with these factors in mind. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission from time to time, including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which are available on the Securities and Exchange Commission's website at sec.gov. We assume no obligation to update any forward-looking statements contained in this press release.

Contact:

Clubhouse Media Group, Inc.

media@clubhousemediagroup.com