Document:

awsm-ex41_6.htm

 

Exhibit 4.1

FORM OF CONVERSION AGREEMENT

0% Convertible Note

This Note Conversion Agreement (this “Agreement”) is made and entered into as of March __, 2020 (the “Effective Date”), by and between __________________ (the “Noteholder”), and Cool Holdings, Inc., a Maryland corporation (“Company”).

W I T N E S S E T H:

WHEREAS, on the Effective Date, the Noteholder holds a 0% convertible note (“Convertible Note”) issued by the Company on January 19, 2018 in the principal amount of $91,666;

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

	
1.
	
Notwithstanding anything to the contrary in the Convertible Note, on or around March 31, 2020 (the “Closing”), the entire outstanding principal amount on the Noteholder’s Convertible Note as of the Effective Date shall be converted into and exchanged for 539,211 common shares (“Common Shares”) of the Company, which shall be issuable to RoyalCan Investment LP for the benefit of the Noteholder.

	
2.
	
The Noteholder hereby agrees to promptly mark its Convertible Note as “canceled” and return it to the Company.

	
3.
	
This Agreement and the covenants, obligations, undertakings, rights and benefits hereof shall be binding upon, and shall inure to the benefit of, the respective parties hereto and their respective successors and assigns.

	
4.
	
This Agreement is intended only to effect the conversion into and exchange of the Noteholder’s Convertible Note for Common Shares.

	
5.
	
This Agreement may be executed by one or both of the parties in several counterparts and all such counterparts so executed shall together be deemed to constitute one final agreement as if signed by both parties, and each such counterpart shall be deemed to be an original.

	
6.
	
Each party hereto agrees to execute any and all documents and to perform such other acts as may be necessary or expedient to further the purposes of this Agreement and the transactions contemplated hereby.

	
7.
	
The recitals set forth in this Agreement are hereby incorporated into and made a part of this Agreement for all purposes.

	
8.
	
This Agreement shall be governed by, and construed and interpreted in accordance with, the substantive laws of the State of Maryland, without giving effect to any conflict‐of‐laws rule or principle that might result in the application of the laws of another jurisdiction.

 

 

EXECUTED and DELIVERED to be effective as of the date set forth above.

COMPANY:

Cool Holdings, Inc.

 

By:

Name: Vernon A. LoForti

Title:    SVP & CFO

 

NOTEHOLDER:

______________________

 

By:

Name: 

Title:awsm-ex42_7.htm

 

Exhibit 4.2

FORM OF NOTE CONVERSION AGREEMENT

12% Convertible Notes

This Note Conversion Agreement (this “Agreement”) is made and entered into as of March __, 2020 (the “Effective Date”), by and between _________________ (the “Noteholder”), and Cool Holdings, Inc., a Maryland corporation (“Company”).

W I T N E S S E T H:

WHEREAS, on the Effective Date, the Noteholder holds a 12% convertible note (“Convertible Note”) issued by the Company on __________________ in the principal amount of $______________ with accrued and unpaid interest amounting to $____________;

WHEREAS, in connection with acquisition of the Convertible Note, Noteholder received common share purchase warrants (the “Warrants”) to purchase a number of Common Shares equal to the principal amount of the Notes divided by the Conversion Price that is 30% below the twenty-day volume weighted average price immediately prior to the date the Company obtains any shareholder or other required regulatory approval to permit the conversion of the Notes at an exercise price equal to that Conversion Price;

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

	
1.
	
Notwithstanding anything to the contrary in the Convertible Note, on or around March 31, 2020 (the “Closing”), the sum of the outstanding principal amount plus accrued and unpaid interest on the Noteholder’s Convertible Note as of the Effective Date totaling $__________________ shall be converted into and exchanged for _____________ common shares (“Common Shares”) of the Company, which shall be issuable to RoyalCan Investment LP for the benefit of the Noteholder.

	
2.
	
The Noteholder hereby agrees to promptly mark its Convertible Note as “canceled” and return it to the Company.

	
3.
	
The Noteholder hereby agrees that all outstanding Warrants will be cancelled as of the Effective Date and will be of no further force and effect.

	
4.
	
This Agreement and the covenants, obligations, undertakings, rights and benefits hereof shall be binding upon, and shall inure to the benefit of, the respective parties hereto and their respective successors and assigns.

	
5.
	
This Agreement is intended only to effect (i) the conversion into and exchange of the Noteholder’s Convertible Note for Common Shares, and (ii) the cancellation of the Warrants.

	
6.
	
This Agreement may be executed by one or both of the parties in several counterparts and all such counterparts so executed shall together be deemed to constitute one final agreement as if signed by both parties, and each such counterpart shall be deemed to be an original.

 

 

	
7.
	
Each party hereto agrees to execute any and all documents and to perform such other acts as may be necessary or expedient to further the purposes of this Agreement and the transactions contemplated hereby.

	
8.
	
The recitals set forth in this Agreement are hereby incorporated into and made a part of this Agreement for all purposes.

	
9.
	
This Agreement shall be governed by, and construed and interpreted in accordance with, the substantive laws of the State of Maryland, without giving effect to any conflict‐of‐laws rule or principle that might result in the application of the laws of another jurisdiction.

EXECUTED and DELIVERED to be effective as of the date set forth above.

COMPANY:

Cool Holdings, Inc.

 

By:

Name: Vernon A. LoForti

Title:    SVP & CFO

 

NOTEHOLDER:

________________________

 

By:

Name:

Title:awsm-ex43_8.htm

Exhibit 4.3

SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS

THIS SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS (“Agreement”) is entered into and made effective as of the __th day of March, 2020, by and among Delavaco Holdings, Inc. (“Delavaco”), Bliss Investments Group LLC (Bliss”), ICFR LLC (“IFCR”), Juan Pablo Montoya (“Montoya”), Torque Esports Corp. (“Torque”) and Cool Holdings, Inc.  (“Cool”).

 

RECITALS

 

WHEREAS, Cool holds a receivable (the “Delavaco Receivable”) owed to it by Delavaco and related entities in the amount of $226,774.84; and 

WHEREAS, Delavaco claims that Cool owes it $275,000.00 related to transaction fees (the “Delavaco Transaction Fee”) associated with a debenture transaction, and; 

WHEREAS, Delavaco, Bliss, ICFR, and Montoya had discussed receiving a royalty (the “Royalty”) on gross sales of Cool, in exchange for providing financing required to close Cool’s acquisition of SimplyMac, and;

WHEREAS, the Royalty was never memorialized in writing, and; 

WHERES, Delavaco, Bliss, ICFR, and Montoya have nonetheless attempted to assert their right to the Royalty, and;

WHEREAS, Each of Cool, Torque and Ideas & Cars Ltd. (“Ideas”) entered into an agreement (the “Torque Agreement”) pursuant to which, among other things, Cool owed quarterly payments to Torque of $150,000 each, of which one such payment remains outstanding, and;

WHEREAS, pursuant to the Torque Agreement Torque was required to purchase $600,000 of Apple products from Cool of which only $52,294.25 was purchased, and; 

WHEREAS, each of the parties to the Torque Agreement wish to terminate its obligations to each other party.

THEREFORE, in consideration of the mutual promises and covenants contained herein and other good and valuable consideration, receipt of which is hereby acknowledged, and with intent to be legally bound, the Parties hereby covenant and agree as follows:

AGREEMENT

 

1.Incorporation of Recitals. The Recitals set forth above are incorporated herein by reference. 

 

2.Delavaco Settlement.  Cool and Delavaco will net the Delavaco Receivable and the Delavaco Transaction Fee in the amount of $48,225.16 in favor of Delavaco, and Cool will deliver 

283,677 shares of common stock of Cool (at a conversion rate of $0.17) to RoyalCan Investment LP.

3.Royalty Settlement.  On or around March 31, 2020, Cool will issue to RoyalCan Investment LP 10,400,000 common shares of Cool for the benefit of Delavaco, Bliss, ICFR, and Montoya in the following amounts; Delavaco 4,100,000 common shares, Bliss 2,100,000 common shares, ICFR 2,100,000 common shares, and Montoya 2,100,000 common shares.

 

4.Torque Settlement. Cool, Torque and Ideas agree to terminate the Torque Agreement.

 

5.General Release. Except for the duties under this Agreement, each of the parties hereto, hereby generally release and forever discharge each other, as well as each of their heirs, successors, representatives, assigns, directors, officers, members, affiliates, partners (individual shareholders of corporate partners), agents, employees, and attorneys, and each of them, of and from any and all claims, debts, liabilities, demands, obligations, costs, expenses, actions and causes of action, of every nature, character and description, known or unknown, which the parties may now own or hold, or have held at any time heretofore owned or held, or may at any time own or hold, by reason of any matter, cause or thing related to the Delavaco Receivable, the Delavaco Transaction Fee, the Royalty Agreement and the Torque Agreement, or the relationship between the parties, including, without limitation, those arising out of or related to the Delavaco Receivable, the Delavaco Transaction Fee, the Royalty Agreement and the Torque Agreement. This release shall be construed as broadly as possible.  

 

6.Acknowledgment and Scope of Release.  The Parties to this Agreement hereby acknowledge that they are legally competent, are represented by counsel, have discussed this Agreement with their counsel, have been fully advised of all their pertinent legal rights and/or obligations, fully understand the terms of this Agreement, and have entered into this Agreement freely and voluntarily.  The Parties specifically release and renounce any right they may now or hereafter have to reform, rescind, modify, or set aside this Agreement because of mutual or unilateral mistake, such risk of mistake being hereby assumed by the Parties in return for the consideration described above.

 

7.Voluntary Agreement.  Each Party represents that it has read this Agreement completely and understands its contents.  Each Party further represents that it executes this Agreement freely and voluntarily and not as the result of duress or financial disadvantage.

 

8.Covenant Not to Sue.  The Parties hereby covenant that they shall not sue, sue further, or otherwise prosecute in any way any person or entity hereinabove released with respect to the subject matter of the Lawsuit and any and every claim released by this Agreement.

 

9.Amendment.  No modification, amendment, or waiver of any of the Agreement’s provisions, or any future representation, promise, or condition in connection with the subject matter of this Agreement, shall be binding upon any party to this Agreement unless made in writing and signed by both Parties or by a duly authorized officer or agent of each Party.

 

10.Integration Clause.  This Agreement contains the entire agreement between the Parties with regard to the matters set forth herein.  The Parties expressly acknowledge that they rely on no other representations of any sort, oral or written, that are not explicitly set forth within this Agreement.

 

11.Severability.  If any provision of this Agreement, or its application to any person, party or circumstance, is held invalid, the remainder of this Agreement and its application to all other persons, parties and circumstances shall not be affected adversely thereby unless the provision or provisions held invalid or inapplicable will, if not enforced, substantially impair the benefits and fairness of the remaining portions of the Agreement.

 

12.Governing Law and Venue.  This Agreement shall be construed and interpreted in accordance with the laws of the State of Maryland, and any action regarding this Agreement will be filed in the Superior Court of the State of Maryland.

 

13.Execution.  This Agreement may be executed in counterparts, and in any number of additional original signed copies, and each such copy, including facsimile copies or scanned signatures, shall for all purposes be deemed to be an original.  All such copies shall together constitute but one and the same instrument.  

 

IN WITNESS WHEREOF, the Parties hereto have approved and executed this Agreement on the dates specified below.

		
	
COOL HOLDINGS, INC.

 

 

______________________________________________

Name:  Vernon A. LoForti

Title:   SVP & CFO

 

 

BLISS INVESTMENTS GROUP LLC

 

 

 

 

	
 
	
	
Name: 

Title:  
	

 

		
		
	
DELAVACO HOLDINGS, INC.

 

 

 

 

	
 
	
	
Name:  

Title: 
	

 

		
	
ICFR LLC

 

 

 

 

	
 
	
	
Name:  

Title:   
	

 

		
	
JUAN PABLO MONTOYA

 

 

 

 

	
 
	
	
Name:  

 
	

 

TORQUE ESPORTS CORP.

 

_______________________________________________

Name:  

Title:

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