Document:

Exhibit 10.10

 

TENTH
AMENDMENT AND JOINDER

TO
LOAN AND SECURITY AGREEMENT AND CONSENT

 

This
Tenth Amendment to Loan and Security Agreement (this “Amendment”) is entered into this 13th day of January,
2021, by and among (a) KATAPULT SPV-1 LLC, a Delaware limited liability company (“Borrower”), (b) KATAPULT
GROUP, INC., a Delaware corporation (“Holdings”), (c) KATAPULT HOLDINGS, INC., a Delaware corporation
(“Parent Entity”), (d) MIDTOWN MADISON MANAGEMENT LLC, a Delaware limited liability company, as administrative,
payment and collateral agent for each of the Lenders (in such capacities, “Agent”) and (d) each of the Lenders
party hereto.

 

Recitals

 

A.
Borrower, Holdings, Agent and Lenders have entered into that certain Loan and Security Agreement, dated as of May 14, 2019, as amended
by that certain First Amendment to Loan and Security Agreement, dated as of June 14, 2019, as amended by that certain Second Amendment
to Loan and Security Agreement, dated as of November 8, 2019, as amended by that certain Third Amendment to Loan and Security Agreement,
dated as of November 20, 2019, as amended by that certain Fourth Amendment to Loan and Security Agreement, dated as of December 16, 2019,
as amended by that certain Fifth Amendment to Loan and Security Agreement, dated as of April 3, 2020, as amended by that certain Sixth
Amendment to Loan and Security Agreement, dated as of April 29, 2020, as amended by that certain Seventh Amendment to Loan and Security
Agreement, dated as of May 6, 2020, as further amended by that certain Eighth Amendment to Loan and Security Agreement, dated as of September
28, 2020 and as further amended by that certain Ninth Amendment to Loan and Security Agreement, dated as of December 4, 2020 (as heretofore
and as may be hereafter further amended, modified, restated, amended or restated from time to time the “Loan Agreement”).

 

B.
Agent, Borrower and each Lender have agreed to execute this Amendment for the purpose of effectuating the matters set forth herein, all
on the terms and conditions set forth herein.

 

Agreement

 

Now,
Therefore, in
consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged,
and intending to be legally bound, the parties hereto agree as follows:

 

1.
Definitions.
Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement as amended by this
Amendment (the “Loan Agreement”).

 

     

     

    

 

2.
Amendments to Loan Agreement and Consent.

 

2.1
Effective as of the date hereof, Section 1.1. to the Loan Agreement is hereby amended by deleting subsection (xxxviii) of
the definition of “Eligible Leases” set forth therein and replacing it with the following:

 

(xxxviii)
such Lease is not a Lease that would cause Eligible Leases pledged as Collateral originated through (i) the Wayfair Inc. retail partnership
to, commencing January 1, 2022, exceed sixty-five percent (65%) or (ii) any other single retail partnership of Borrower, Holdings or
Parent Entity to exceed, unless otherwise approved by the Agent in writing, twenty-five percent (25%) (in each case, as determined on
the basis of the aggregate Current Lease Balances of the Eligible Leases pledged as Collateral); provided that upon the occurrence of
a SPAC Transaction, the limitation with respect to the Wayfair Inc. retail partnership shall no longer apply;

 

2.2
Effective as of the date hereof, Section 1.1. to the Loan Agreement is hereby amended by adding the following definition of “Anticipated
SPAC Transaction” in the correct alphabetical order as follows:

 

“Anticipated
SPAC Transaction” means a business combination transaction between Parent Entity and FinServ Acquisition Corp. and/or its Affiliates.

 

2.3
Effective as of the date hereof, Section 1.1. to the Loan Agreement is hereby amended by deleting the definition of “SPAC
Transaction” set forth therein and replacing it with the following:

 

“SPAC
Transaction” means a business combination transaction or series of transactions whereby the Parent Entity or a newly formed
holding company of the Parent Entity formed to facilitate such transaction or series of transactions is acquired by or combined with
any special purpose acquisition company (SPAC) or one or more newly formed merger subsidiaries of such special purpose acquisition company
(SPAC), with the purpose of taking, directly or indirectly, the Parent Entity public without going through the traditional initial public
offering process. To the extent there is any inconsistency between this definition and the definition of “SPAC Transaction”
in any other Loan Document, including, without limitation, the Warrants, this definition shall control. For the sake of clarity, a SPAC
Transaction includes the Anticipated SPAC Transaction.

 

3.
Limited Effect of Amendment.

 

3.1
Except to the extent expressly set forth herein, this Amendment does not, and shall not be construed to, constitute a waiver of any
past, present or future violation of the Loan Agreement, the other Loan Documents or any other related document, and shall not, directly
or indirectly in any way whatsoever either: (i) impair, prejudice or otherwise adversely affect Agent’s or the Lenders’
right at any time to exercise any right, privilege or remedy in connection with the Loan Agreement, any other Loan Document or any other
related document (all of which rights are hereby expressly reserved by Agent and the Lenders), (ii) amend or alter any provision of the
Loan Agreement, any other Loan Document or any other related document, (iii) constitute any course of dealing or other basis for altering
any obligation of Borrower, Holdings, Parent Entity or any of their respective Affiliates or any right, privilege or remedy of Agent
or any Lender under the Loan Agreement, any other Loan Document or any other related document or (iv) constitute any consent (deemed
or express) by Agent or any Lender to any prior, existing or future violations of the Loan Agreement, any other Loan Document or any
other related document. There are no oral agreements among the parties hereto, and no prior or future discussions or representations
regarding the subject matter hereof shall constitute a waiver of any past, present or future violation of the Loan Agreement, any other
Loan Document or any other related document.

 

    - 2 - 

     

    

 

3.2
This Amendment shall be construed in connection with and as part of the Loan Agreement and all terms, conditions, representations,
warranties, covenants and agreements set forth in the Loan Agreement, as amended by this Amendment, are hereby ratified and confirmed
and shall remain in full force and effect.

 

4.
Representations and Warranties and Covenants.
To induce Agent and Lenders to enter into this Amendment, Borrower,
Holdings and Parent Entity, jointly and severally, hereby represent and warrant to Agent and each Lender as follows:

 

4.1
Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Agreement are
true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties
relate to an earlier date, in which case they are true and correct as of such date), and (b) no Regulatory Trigger Event, Default
Trigger Event, First Payment Default Trigger Event, Default or Event of Default has occurred and is continuing;

 

4.2
Each of Borrower, Holdings and Parent Entity has the power and authority to execute and deliver this Amendment and to perform its
obligations under the Loan Agreement;

 

4.3
The execution and delivery by Borrower, Holdings and Parent Entity of this Amendment and the performance by Borrower, Holdings and
Parent Entity of their respective obligations under the Loan Agreement have been duly authorized by all requisite action of such parties
and have been duly executed and delivered by such parties;

 

4.4
The execution and delivery by Borrower, Holdings and Parent Entity of this Amendment and the performance by Borrower, Holdings and
Parent Entity of their obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval,
license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or
authority, or subdivision thereof, binding on either Borrower, Holdings or Parent Entity, except as already has been obtained or made;
and

 

4.5
This Amendment has been duly executed and delivered by each of Borrower, Holdings and Parent Entity and is the binding obligation
of each of Borrower, Holdings and Parent Entity, enforceable against each of Borrower, Holdings and Parent Entity in accordance with
its terms, subject to the effect of any applicable bankruptcy, moratorium, insolvency, reorganization or other similar law affecting
the enforceability of creditors’ rights generally and to the effect of general principles of equity (whether in a proceeding at
law or in equity).

  

5.
Conditions Precedent to Effectiveness of Amendment
Against Agent and Lenders. This Amendment shall not be effective against
Agent or any Lender unless and until each of the following conditions shall have been satisfied as of the date hereof, in Agent’s
sole discretion:

 

5.1
Agent shall have received this Amendment, duly executed by Borrower, Holdings and Parent Entity;

 

5.2
Agent shall have received such additional documents, instruments and information as Agent may request;

 

5.3
Borrower shall have paid to Agent, on behalf of itself and the Lenders, all fees, costs and expenses due and owing to Agent and the
Lenders as of the date hereof; and

 

5.4
After giving effect to this Amendment, no Regulatory Trigger Event, Default Trigger Event, First Payment Default Trigger Event, Default
or Event of Default has occurred and is continuing.

 

    - 3 - 

     

    

 

6.
Integration.
This Amendment and the Loan Agreement represent the entire agreement about this subject matter and supersede prior negotiations or agreements.
All prior agreements, understandings, representations, warranties and negotiations between the parties about the subject matter of this
Amendment and the Loan Agreement merge into this Amendment and the Loan Agreement.

 

7.
Counterparts.
This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute
one and the same instrument. Signature pages delivered by facsimile or other electronic means shall have the same effect as manually
executed signature pages. The words “execution,” “executed”, “signed,” “signature,” and
words of like import in this Amendment shall be deemed to include electronic signatures, each of which shall be of the same legal effect,
validity or enforceability as a manually executed signature.

 

8.
Release.
BORROWER, HOLDINGS AND PARENT ENTITY, TOGETHER WITH THEIR RESPECTIVE PARENTS, DIVISIONS, SUBSIDIARIES, AFFILIATES, MEMBERS, MANAGERS,
PARTICIPANTS, PREDECESSORS, SUCCESSORS, AND ASSIGNS, AND EACH OF ITS CURRENT AND FORMER DIRECTORS, OFFICERS, SHAREHOLDERS, MEMBERS, MANAGERS,
PARTNERS, AGENTS, AND EMPLOYEES, AND EACH OF THEIR RESPECTIVE PREDECESSORS, SUCCESSORS, HEIRS, AND ASSIGNS (INDIVIDUALLY AND COLLECTIVELY,
“RELEASORS”) HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER WAIVES AND DISCHARGES  AGENT AND
EACH LENDER AND THEIR RESPECTIVE PARENTS, DIVISIONS, SUBSIDIARIES, AFFILIATES, MEMBERS, MANAGERS, PARTICIPANTS, PREDECESSORS, SUCCESSORS,
AND ASSIGNS, AND EACH OF ITS CURRENT AND FORMER DIRECTORS, OFFICERS, SHAREHOLDERS, MEMBERS, MANAGERS, PARTNERS, ATTORNEYS, AGENTS, AND
EMPLOYEES, AND EACH OF THEIR RESPECTIVE PREDECESSORS, SUCCESSORS, HEIRS, AND ASSIGNS (INDIVIDUALLY AND COLLECTIVELY, THE “RELEASED
PARTIES”) FROM ALL POSSIBLE CLAIMS, COUNTERCLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES AND LIABILITIES
WHATSOEVER, WHETHER KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT OR CONDITIONAL, OR AT
LAW OR IN EQUITY, IN ANY CASE ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE HEREOF THAT ANY OF THE RELEASORS MAY NOW OR HEREAFTER
HAVE AGAINST THE RELEASED PARTIES (OR ANY OF THEM), IF ANY, IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION
OF LAW OR REGULATIONS, OR OTHERWISE, INCLUDING WITHOUT LIMITATION ARISING  DIRECTLY OR INDIRECTLY FROM THE LOAN AGREEMENT, THE LOAN
DOCUMENTS, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE LOAN DOCUMENTS AND/OR NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT OR
THE LOAN DOCUMENTS, INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST
IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE.  EACH OF THE RELEASORS  WAIVES THE BENEFITS OF ANY LAW, WHICH MAY PROVIDE
IN SUBSTANCE: “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN ITS FAVOR AT
THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY IT MUST HAVE MATERIALLY AFFECTED ITS SETTLEMENT WITH THE DEBTOR.” EACH OF
THE RELEASORS UNDERSTANDS THAT THE FACTS WHICH IT BELIEVES TO BE TRUE AT THE TIME OF MAKING THE RELEASE PROVIDED FOR HEREIN MAY LATER
TURN OUT TO BE DIFFERENT THAN IT NOW BELIEVES, AND THAT INFORMATION WHICH IS NOT NOW KNOWN OR SUSPECTED MAY LATER BE DISCOVERED. 
EACH OF THE RELEASORS ACCEPTS THIS POSSIBILITY, AND EACH OF THEM ASSUMES THE RISK OF THE FACTS TURNING OUT TO BE DIFFERENT AND NEW INFORMATION
BEING DISCOVERED; AND EACH OF THEM FURTHER AGREES THAT THE RELEASE PROVIDED FOR HEREIN SHALL IN ALL RESPECTS CONTINUE TO BE EFFECTIVE
AND NOT SUBJECT TO TERMINATION OR RESCISSION BECAUSE OF ANY DIFFERENCE IN SUCH FACTS OR ANY NEW INFORMATION. RELEASORS AGREE THAT (I)
THE COMMENCEMENT OF ANY LITIGATION OR LEGAL PROCEEDINGS BY ANY RELEASOR OR ANY OF THEIR RESPECTIVE AFFILIATES AGAINST ANY RELEASED PARTY
WITH RESPECT TO ANY CLAIMS, COUNTERCLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES AND LIABILITIES RELEASED HEREBY,
PURPORTED TO BE RELEASED HEREBY OR ARISING ON OR BEFORE THE DATE HEREOF, AND/OR (II) THE COMMENCEMENT OF ANY CLAIM, INITIATION OR COMMENCEMENT
OF ANY CLAIM OR PROCEEDING IN FAVOR OF, THROUGH OR BY ANY RELEASOR WHICH ALLEGES THAT THE RELEASE HEREIN IS INVALID OR UNENFORCEABLE
IN ANY RESPECT, SHALL, IN EACH CASE, CONSTITUTE AN IMMEDIATE EVENT OF DEFAULT.

 

9.
Waiver of Compliance with Article 9 of UCC.
To the extent not prohibited by applicable law, each of Borrower, Holdings and Parent Entity: (a) waives its right to receive notice
under, and any other rights in respect to, Sections 9-611, 9-620(e), 9-621 and 9-623 of the UCC following the occurrence and during
the continuance of an Event of Default; (b) waives any right to object to the sale, transfer, conveyance or surrender of the Collateral
following the occurrence and during the continuance of an Event of Default; (c) waives any obligation of Agent to dispose of the
Collateral under the UCC or otherwise following the occurrence and during the continuance of an Event of Default; (d) waives any
other right, whether legal or equitable, which Borrower, Holdings or Parent Entity may possess in and to the Collateral following the
occurrence and during the continuance of an Event of Default; (e) agrees that the transactions contemplated herein have been effected
and negotiated in a commercially reasonable manner; and (f) agrees that Agent and each Lender has acted in, and has effected and negotiated
the transactions contemplated herein, in good faith. Each of Borrower, Holdings and Parent Entity acknowledges and agrees that the waivers
set forth in this Section 10 and elsewhere in this Agreement constitute material consideration for the agreement of Agent and
the Lenders to execute, deliver and accept this Agreement.

 

[Signature
page follows.]

 

    - 4 - 

     

    

 

IN
WITNESS WHEREOF, this Amendment is being executed as of the date first written above.

 

	BORROWER:	 
	 	 	 
	KATAPULT SPV-1 LLC	 
	 	 	 
	By:	/s/ Orlando Zayas	 
	Name:	Orlando Zayas	 
	Title:	Chief Executive Officer	 
	 	 	 
	Address:	 
	500 7th Avenue, 8th Floor	 
	New York, New York 10018	 
	 	 	 
	HOLDINGS:	 
	 	 	 
	KATAPULT GROUP, INC.	 
	 	 	 
	By:	/s/ Orlando Zayas	 
	Name:	Orlando Zayas	 
	Title:	Chief Executive Officer	 
	 	 	 
	Address:	 
	500 7th Avenue, 8th Floor	 
	New York, New York 10018	 
	 	 	 
	PARENT ENTITY: 	 
	 	 	 
	Katapult Holdings, Inc.	 
	 	 	 
	By:	/s/ Orlando Zayas	 
	Name:	Orlando Zayas	 
	Title:	Chief Executive Officer	 
	 	 	 
	Address:	 
	500 7th Avenue, 8th Floor	 
	New York, New York 10018	 
	 	 	 
	AGENT:	 
	 	 	 
	MIDTOWN MADISON MANAGEMENT LLC	 
	 	 	 
	By:	/s/ David Aidi	 
	Name:	David Aidi	 
	Title:	Authorized Signatory	 

 

     

     

    

 

 

	CLASS A LENDERS:	 
	 	 	 
	Atalaya Special Opportunities Fund VII LP
	 	 	 
	By:	/s/ David Aidi	 
	Name:	David Aidi	 
	Title:	Authorized Signatory	 
	 	 	 
	Atalaya Asset Income Fund IV LP	 
	 	 	 
	By:	/s/ David Aidi	 
	Name:	David Aidi	 
	Title:	Authorized Signatory	 
	 	 	 
	Atalaya Asset Income Fund (Cayman) IV LP
	 	 	 
	By:	/s/ David Aidi	 
	Name:	David Aidi	 
	Title:	Authorized Signatory	 
	 	 	 
	Atalaya Special Opportunities Fund (Cayman) VII LP
	 	 	 
	By:	/s/ David Aidi	 
	Name:	David Aidi	 
	Title:	Authorized Signatory	 
	 	 	 
	Atalaya Asset Income Fund V LP	 
	 	 	 
	By:	/s/ David Aidi	 
	Name:	David Aidi	 
	Title:	Authorized Signatory	 

 

     

     

    

 

	CLASS B LENDER(S):	 
	 	 	 
	Atalaya Special Opportunities Fund VII LP
	 	 	 
	By:	/s/ David Aidi	 
	Name:	David Aidi	 
	Title:	Authorized Signatory	 
	 	 	 
	ATALAYA ASSET INCOME FUND IV LP	 
	 	 	 
	By:	/s/ David Aidi	 
	Name:	David Aidi	 
	Title:	Authorized Signatory	 
	 	 	 
	ATALAYA ASSET INCOME FUND V LP	 
	 	 	 
	By:	/s/ David Aidi	 
	Name:	David Aidi	 
	Title:	Authorized Signatory	 

 

     

     

    

 

	Atalaya Special Opportunities Fund (CAYMAN) VII LP
	 	 	 
	By:	/s/ David Aidi	 
	Name:	David Aidi	 
	Title:	Authorized Signatory	 
	 	 	 
	ATALAYA ASSET INCOME FUND (CAYMAN) IV LP
	 	 	 
	By:	/s/ David Aidi	 
	Name:	David Aidi	 
	Title:	Authorized Signatory	 
	 	 	 
	ATALAYA ASSET INCOME FUND (CAYMAN) V LP
	 	 	 
	By:	/s/ David Aidi	 
	Name:	David Aidi	 
	Title:	Authorized Signatorycosm_ex41.htm

EXHIBIT 4.1
   
 AMENDED AND RESTATED
 DEBT EXCHANGE AGREEMENT
   
 This AMENDED AND RESTATED DEBT EXCHANGE AGREEMENT (the "Agreement"), dated as of February 5, 2021, is entered into by and among Cosmos Holdings Inc., a Nevada corporation (the “Company”), Grigorios Siokas (the “Guarantor”) and Athanasios Kolefas and his controlled entity, Epirus Investment Management LTD (collectively, the "Lender" and together with the Company and the Guarantor, the "Parties" and each, a "Party").This agreement replaces in its entirety the Debt Exchange Agreement between the Parties dated as of December 18, 2020, which is hereby deemed to be null and void. This Agreement memorializes what the Parties agreed to on February 5, 2021. 
  
 W I T N E S S E T H:
  
 WHEREAS, the Lender, the Company and Grigorios Siokas, the Company’s Chief Executive Officer, as personal guarantor (the “Guarantor”) entered into various promissory notes, personal guarantees and allonges with the last promissory note being exchanged hereunder dated April 23, 2020, pursuant to which the Lender has made certain loans, from time to time, to the Company, all of which have been personally guaranteed by the Guarantor in the principal amount of $3,010,000 as of the date hereof (the “Debt”); 
  
 WHEREAS, upon the Closing ( as defined below) of this Agreement, the Company will issue to the Lender shares (the “Exchange Shares”) of common stock of the Company, par value $.001 per share (the “Common Stock”), at an exchange rate of $3.85 per share (the “Exchange Rate”),in excess of the fair market value of the Common Stock of $3.28 on February 5, 2021, the date terms were agreed to between the Parties, in consideration of the repayment of the principal amount of the Debt;
  
 WHEREAS, the Company will issue the Exchange Shares to the Lender in exchange for the repayment of the principal amount of the Debt with all accrued and unpaid interest to continue to be accrued as set forth herein; 
  
 WHEREAS, subject to the terms and conditions herein, the Lender, the Company and the Guarantor have agreed to issue the Exchange Shares for the repayment and cancellation of all principal amount of the Debt and continue to accrue interest on the Debt and cancellation of all promissory notes, personal guarantees and allonges in all respects (collectively, the Loan Agreements”).
  
 NOW, THEREFORE, in consideration of the premises, and of the representations, warranties, covenants and agreements set forth herein, the Parties agree as follows:
  
 	 
	
	

	 

 
  
 Section I
 EXCHANGE
  
 1.1 Closing Transactions. Upon three (3) days prior written notice among the Parties that all conditions precedent to closing (the “Closing”) shall be deemed to have occurred, the following exchange (the “Exchange”) shall occur on the closing date (the “Closing Date”), upon which:
  
 	  
	 (a) 
	 the Lender acknowledges that the Loan Agreements are hereby terminated in all respects and all principal amount of the Debt contemplated thereunder is deemed repaid; 

	  
	  
	  

	  
	 (b) 
	 the Company shall issue the Exchange Shares to Lender and provide all necessary documentation from the Company’s transfer agent evidencing the Exchange Shares registered in the name of the Lender; 

	  
	  
	  

	  
	 (c) 
	 the Exchange Shares are being issued at the Exchange Rate of $3.85 per share of Common Stock, the fair market value of the Common Stock on the date that terms were agreed to between the Parties. Thus, an aggregate of 781,819 shares of Common Stock are being authorized to issue upon the signing of this Agreement in exchange for the principal amount of Debt of $3,010,000; and

	  
	  
	  

	  
	 (d) 
	 the Company shall continue to accrue interest on the Debt through the execution of this Agreement. Thereafter, all accrued and unpaid interest , as well as any unpaid fees, shall be paid in three (3) equal monthly installments immediately following the closing of the IPO.

 
  
 Section II
 REPRESENTATIONS AND WARRANTIES
  
 2.1 Representations and Warranties of the Company. The Company represents and warrants to the Lender as follows:
  
 (a) Organization, Authority and Subsidiaries. The Company has been duly organized and is validly existing and in good standing under the laws of its jurisdiction of organization and is qualified to do business in every jurisdiction in which its ownership of property or conduct of business requires it to qualify. The Company possesses all requisite power and authority and all material licenses, permits and authorizations necessary to own and operate its properties, except where the failure to be so qualified, in good standing or have such power or authority would not, individually or in the aggregate, have a Material Adverse Effect (as hereinafter defined) on the business, properties, management, financial position or results of operations or prospects of the Company.
  
 (b) Due Issuance and Authorization. 
  
 (i) This Agreement has been duly authorized by the Company and, when duly executed and delivered in accordance with its terms by each of the parties thereto, will each constitute a valid and legally binding agreement of the Company , enforceable against the Company, in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors' rights generally or by equitable principles relating to enforceability.
  
 (ii) The Exchange Shares have been duly authorized by the Company and, when issued as provided herein, will be validly issued, fully paid and non-assessable and free and clear of any pre-emptive rights or rights of first offer or similar rights and will be free of any liens or encumbrances, except inchoate liens arising by operation of law, of the stockholders of the Company; provided, however, that the Exchange Shares shall be subject to restrictions on transfer in accordance with the terms of this Agreement and under state and/or federal securities laws or otherwise required by such laws at the time a transfer is proposed.
  
 	 
	-2-
	

	 

 
  
 (c) Consents. No consent, approval or authorization of, or designation, declaration or filing with, any governmental authority, regulatory authority, or court or other third party on the part of the Company,or the Guarantor is required in connection with the execution and delivery of the Agreement or the consummation of the exchange and the transactions contemplated hereunder (other than the filings with the Securities and Exchange Commission (the “SEC”) or in the European Union or Greece reflect the cancellation of the debt).
  
 (d) No Conflicts. The execution, delivery and performance by the Company of this Agreement and the consummation of the transactions contemplated hereby, do not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of, any lien, charge or encumbrance upon any property or assets of the Company pursuant to, any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument, each as amended, to which the Company is a party or by which the Company is bound or to which any of the property or assets of the Company is subject, (ii) result in any violation of the provisions of the charter or by-laws or similar organizational documents of the Company or (iii) result in the violation of any law or statute or any judgment, order, rule or regulation of any court or arbitrator or governmental or regulatory authority, except, in the case of clauses (i) and (ii) above, for any such conflict, breach, violation or default that would not, individually or in the aggregate, have a Material Adverse Effect.
  
 (e) Financial Statements. The financial statements and the related notes thereto included in the SEC Documents (as hereinafter defined) present fairly the consolidated financial position of the Company as of the dates indicated and the results of their operations and the changes in their cash flows for the periods specified; such financial statements have been prepared in conformity with GAAP applied on a consistent basis throughout the periods covered thereby.
  
 (f) SEC Documents. Since January 1, 2019, the Company has timely filed all reports, schedules, forms and statements required to be filed by it with the SEC pursuant to the reporting requirements of the Exchange Act (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements and schedules thereto and documents incorporated by reference therein, being hereinafter referred to herein as the "SEC Documents"). 
  
 (g) Issuance Exempt. Assuming the truth and accuracy of the representations and warranties of the Lender contained in Section 2.2 hereof, the offer, sale, and issuance of the Exchange Shares will be exempt from the registration requirements of the Securities Act , and are exempt from registration and qualification under the registration, permit or qualification requirements of all applicable state securities laws. All shares of capital stock and other securities issued by the Company prior to the date of this Agreement have been issued in transactions either registered under the Securities Act or exempt from the registration requirements under the Securities Act and all applicable state securities or "blue sky" laws, and in compliance with all applicable corporate laws. 
  
 (h) No Integrated Offering. Neither, the Company nor any of its Affiliates or any other Person acting on the Company's behalf, has directly or indirectly engaged in any form of general solicitation or general advertising with respect to the Exchange Shares, nor have any of such Persons made any offers or sales of any security or solicited any offers to buy any security under circumstances that would require registration of any of the Exchange Shares under the Securities Act or cause the Exchange Shares or the other transactions contemplated by this Agreement to be integrated with any prior offering of securities of the Company for purposes of the Securities Act or any applicable stockholder approval provisions.
  
 (i) Litigation. Except as described in the SEC Documents, there are no legal, governmental or regulatory investigations, actions, suits or proceedings pending to which the the Company or any of the Company’s Subsidiaries is a party or to which any property of the Company or any of the Company’s Subsidiaries is the subject that, individually or in the aggregate, if determined adversely to the Company or any of the best knowledge of the Company and the Guarantor, no such investigations, actions, suits or proceedings are threatened by any Governmental Entity or by others.
  
 	 
	-3-
	

	 

 
  
 (j) Acknowledgment Regarding Exchange Shares. The Company’s Board of Directors has determined in its good faith business judgment that the issuance of the Exchange Shares hereunder and the consummation of the transactions contemplated hereby are in the best interests of the Company and its stockholders.
  
 2.2 Representations and Warranties of the Lender. The Lender hereby represents and warrants to the Company and Guarantor as follows:
  
 (a) Organization. The Lender is a U.S. citizen and resident of New Jersey able to perform his obligations under this Agreement.
  
 (b) Authorization. The execution, delivery and performance of this Agreement have been duly and validly authorized by all necessary action of the Lender. The Agreement constitutes a valid and binding obligation of the Lender, enforceable in accordance with its terms. No other proceedings are necessary for the execution and delivery by the Lender of this Agreement, the performance of his obligations hereunder or the consummation by it of the exchange and the transactions contemplated hereby.
  
 (c) Consents. No consent, approval or authorization of, or designation, declaration or filing with, any governmental authority, regulatory authority, court or other third party on the part of the Lender is required in connection with the execution and delivery of this Agreement or the consummation of the exchange and the transactions contemplated hereby, except where the failure to obtain such consent, approval or authorization or make such declaration or filing would not be reasonably likely to have a material adverse effect.
  
 (d) No Conflicts. The execution, delivery and performance by the Lender of this Agreement and the consummation of the and the transactions contemplated thereby will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Lender is a party or by which the Lender is bound, (ii) intentionally omitted or (iii) result in the violation of any law or statute or any judgment, order, rule or regulation of any court or arbitrator or governmental or regulatory authority, except, in the case of clauses (i) and (iii) above, for any such conflict, breach, violation or default that would not, individually or in the aggregate, have a material adverse effect.
  
 (e) Transfers or Assignments of Debt. The Lender has not transferred, assigned or sold any of the Debt prior to the date hereof.
  
 (f) Lender Capacity. The Lender, by reason of his business and financial experience, has the capacity to protect his own interests in connection with the Exchange and the transactions contemplated by this Agreement. The Lender is able to bear the economic risk of an investment in the Exchange Shares and has sufficient net worth to sustain a loss of all of its investment in the Exchange Shares if such a loss should occur. The Lender is acquiring the Exchange Shares for his own account for investment only, not as a nominee or agent, and not with a view towards the resale or distribution thereof in violation of the Securities Act. The Lender represents that it is an "accredited investor" within the meaning of Regulation D under the Securities Act.
  
 (g) Due Diligence. The Lender has received all such documents, records and information which the Lender has requested, and has had adequate opportunity to ask questions of, and receive answers from, the Company's officers, employees, agents, accountants, and representatives concerning the business, operations, financial condition, assets, liabilities, and all other matters relating to the Company and its Subsidiaries relevant to the Lender's investment in the Exchange Shares.
  
 	 
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 (h) No Registration. The Lender understands and hereby acknowledges that he is aware that the Exchange Shares have not been registered under the Securities Act or any similar state securities laws and that the Exchange Shares will be issued by the Company in reliance upon exemptions from the registration requirements of such laws. The Exchange Shares are being issued in accordance with the provisions of Rule 144 under the Securities Act of 1933 and are subject to the provisions of Rule 144.The Lender further understands and acknowledges that all representations, warranties and agreements made herein form, in part, the basis for the foregoing exemptions under the Securities Act and the applicable state securities laws, and that in issuing the Exchange Shares to the Lender, the Company has relied on all representations, warranties and agreements of the Lender contained herein.
  
 (i) Certain Tax Matters. The Lender does hereby acknowledge that he (i) has reviewed with his own tax advisors the federal, state, local and foreign tax consequences of an investment in the Exchange Shares, (ii) is relying solely on such advisors and not on any statements or representations of the Company, the Guarantor or any of their respective agents and (iii) understands that it shall be responsible for its own tax liability that may arise as a result of this investment in the Exchange Shares.
  
 Section III
 ADDITIONAL AGREEMENTS
  
 3.1 Remedies. The Lender acknowledges that his breach or impending violation of any of the provisions of this Section 3 may cause irreparable damage to the Company for which remedies at law would be inadequate. The Lender further acknowledges that the provisions set forth herein are essential terms and conditions of this Agreement. The Lender therefore agrees that Company shall be entitled to a decree or order by any court of competent jurisdiction enjoining such impending or actual violation of any of such provisions. Such decree or order, to the extent appropriate, shall specifically enforce the full performance of any such provision by the Lender and the Lender hereby consents to the jurisdiction of any such court of competent jurisdiction, state or federal, sitting in the State of New York. This remedy shall be in addition to all other remedies available to the Company at law or equity. If any portion of this Section 3.1 is adjudicated to be invalid or unenforceable, this Section 3.1 shall be deemed amended to delete therefrom the portion so adjudicated, such deletion to apply only with respect to the operation of this Section 3.1 in the jurisdiction in which such adjudication is made.
  
 3.2 No Short Sales. Exchange Shares shall not at any time be used to cover “short” sales of Common Stock.
  
 3.3 Further Assurances. From time to time after the Closing Date, each Party hereto shall deliver or cause to be delivered such further documents and instruments and shall do and cause to be done such further acts as a Party may reasonably request to carry out the provisions and purposes of this Agreement.
  
 3.4 Public Announcements. Except as may be required by applicable law, no Party hereto shall make any public announcements or otherwise communicate with any news media with respect to this Agreement or any of the transactions contemplated hereby, without prior consultation with the other parties as to the timing and contents of any such announcement or communications; provided, however, that nothing contained herein shall prevent any Party from promptly making all filings with any Governmental Entity or disclosures with the stock exchange, if any, on which such Party's capital stock is listed, as may, in its judgment, be required in connection with the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby.
  
 	 
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 Section IV
 CERTAIN DEFINITIONS
  
 Except as otherwise expressly provided, all accounting terms used in this Agreement, whether or not defined in this Section IV, shall be construed in accordance with GAAP. The following terms have the meanings set forth below:
  
 "Affiliate" of any Person means any other Person which directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such Person. The term "control" (including the terms "controlling," "controlled by" and "under common control with") as used with respect to any Person means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.
  
 "Agreement" means this Agreement.
  
 "Closing" has the meaning assigned to it in Section 1.1 hereof.
  
 "Closing Date" has the meaning assigned to it in Section 1.1 hereof.
  
 "Code" means the Internal Revenue Code of 1986, as amended.
  
 "Common Stock" has the meaning assigned to it in the recitals hereof.
  
 "Exchange Act" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
  
 "Exchange Shares" has the meaning assigned to it in the recitals hereof.
  
 "GAAP" means United States generally accepted accounting principles consistently applied.
  
 "Governmental Entity" means any national, federal, state, municipal, local, territorial, foreign or other government or any department, commission, board, bureau, agency, regulatory authority or instrumentality thereof, or any court, judicial, administrative or arbitral body or public or private tribunal.
  
 "Lender" has the meaning assigned to it in the Preamble hereof.
  
 “Material Adverse Effect,” when used with respect to any Person, means a material adverse effect or change on the condition (financial or otherwise), operations or results thereof, or properties or assets (taken as a whole), of such Person and its subsidiaries as a whole, or any event that has occurred or circumstances that exist that result in such material adverse effect or change; provided, however, that “Material Adverse Effect” shall not include any event, occurrence, fact, condition, or change, directly or indirectly, arising out of or attributable to: (i) any changes, conditions or effects in the United States or foreign economies or securities or financial markets in general; (ii) changes, conditions or effects that generally affect the industries in which the Company operates; (iii) any change, effect or circumstance resulting from an action required or permitted by this Agreement; (iv) conditions caused by acts of terrorism or war (whether or not declared); (v) a change in law; (vi) changes in GAAP; (vii) the announcement of the transactions contemplated in this Agreement; (viii) changes in political conditions; or (ix) acts of God.
  
 	 
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 ."Person" means any individual, sole proprietorship, partnership, limited liability company, joint venture, trust, incorporated organization, association, corporation, institution, public benefit corporation, Governmental Entity or other entity.
  
 "Securities Act" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.
  
 "Subsidiary" means, with respect to any Person, any corporation, association, trust, limited liability company, partnership, joint venture or other business association or entity (i) at least 50% of the outstanding voting securities of which are at the time owned or controlled directly or indirectly by such Person or (ii) with respect to which such Person possesses, directly or indirectly, the power to direct or cause the direction of the affairs or management.
  
 "Tax" or "Taxes" means any federal, state, local or foreign income, gross receipts, license, payroll, employment, severance, stamp, occupation, premium, windfall profits, customs, duties, franchise, withholding, social security, unemployment, real property, personal property, sales, use, transfer, value added, estimated or other tax of any kind whatsoever, including any interest, penalties or additions thereto.
  
 "Transfer" means to sell, exchange, transfer, negotiate, gift, convey in trust, pledge, assign, encumber or otherwise dispose of.
   
 Section V
 MISCELLANEOUS
  
 5.1 Amendment. No amendment of any provision of this Agreement will be effective unless made in writing and signed by a duly authorized officer of each Party.
  
 5.2 Waiver. The conditions to each Party's obligation to consummate the Closing are for the sole benefit of such Party and may be waived by such Party in whole or in part to the extent permitted by applicable law. No waiver will be effective unless it is in a writing signed by a duly authorized officer of the waiving Party that makes express reference to the provision or provisions subject to such waiver.
  
 5.3 Counterparts and Facsimile. For the convenience of the Parties hereto, this Agreement may be executed in any number of separate counterparts, each such counterpart being deemed to be an original instrument, and all such counterparts will together constitute the same agreement. Executed signature pages to this Agreement may be delivered by .PDF or electronic facsimile (including via electronic mail), and such .PDF or facsimiles will be deemed as sufficient as if actual signature pages had been delivered.
  
 5.4 Governing Law; Forum This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New York, without giving effect to principles of conflicts of law or choice of law that would compel the application of the substantive laws of any other jurisdiction. The Parties hereby consent to the concurrent exclusive jurisdiction of the courts of the State of New York and the United States located in New York County, New York in connection with any suit, action or proceeding arising out of or relating in any manner to this Agreement, and each of the Parties further irrevocably agrees to waive any objection to the venue of any such suit or proceeding in either court, or to in personal jurisdiction.
  
 	 
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 5.5 WAIVER OF TRIAL BY JURY. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY LITIGATION, ACTION, PROCEEDING, CROSS-CLAIM, OR COUNTERCLAIM IN ANY COURT (WHETHER BASED ON CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF, RELATING TO OR IN CONNECTION WITH (I) THIS AGREEMENT OR THE VALIDITY, PERFORMANCE, INTERPRETATION, COLLECTION OR ENFORCEMENT HEREOF OR (II) THE ACTIONS OF THE PARTIES IN THE NEGOTIATION, AUTHORIZATION, EXECUTION, DELIVERY, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT HEREOF.
  
 5.6 Remedies. Each of the Parties to this Agreement will be entitled to enforce its rights under this Agreement specifically, to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights existing in its favor. The Parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach of the provisions of this Agreement and that any Party shall be entitled to immediate injunctive relief or specific performance without bond or the necessity of showing actual monetary damages in order to enforce or prevent any violations of the provisions of this Agreement.
  
 5.7 Notices. All notices, demands and other communications to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given (i) when personally delivered, sent by telecopy (with hard copy to follow); (ii) one day after sent by reputable overnight express courier (charges prepaid); or (iii) five (5) days following mailing by certified or registered mail, postage prepaid and return receipt requested. Unless another address is specified in writing, notices, demands and communications to the Company, Parent and the Lender shall be sent to the addresses indicated below:
  
 	 if to the Company or Guarantor
	 Cosmos Holdings Inc. 
 141 West Jackson Blvd.
 Suite 4236
 Chicago, IL 56064
 Attn: Grigorios Siokas
 Email: greg.ceo@cosmoshold.com
  

	 with copies (which shall not constitute notice) to:
  
  
  
  
  
  
 If to Lender: 
	 Davidoff Hutcher & Citron LLP
 605 Third Avenue, 34th Floor
 New York, New York 10158
 Facsimile: 212-286-1884
 Email: cc@dhclegal.com
 Attn: Charles Capetanakis
  
 Athanasios Kolefas
 56 Irene Court,
 Closter, NJ 07624

 
  
 5.8 Entire Agreement. This Agreement (including the Exhibits hereto) referenced herein set forth the entire agreement of the Parties hereto with regard to the subject matter hereof and supersedes and replaces all prior agreements, understandings and representations, oral or written, with regard to such matters.
  
 	 
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 5.9 Assignment; Successors and Assigns. Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof shall be assignable by any Party hereto without the prior written consent of the other Parties, and any attempt to assign any right, remedy, obligation or liability hereunder without such consent shall be void, except that the Lender may, without the prior consent of the Parent or the Company, assign its rights hereunder to any of its Affiliates. Except as expressly set forth herein, this Agreement shall not inure to the benefit of or be enforceable by any other Person. All covenants, promises and agreements by or on behalf of the Parties contained in this Agreement shall be binding upon and shall inure to the benefit of the Parties hereto and their respective heirs, legal representatives, successors and assigns.
  
 5.10 Severability. If any provision of this Agreement or the application thereof to any Person or circumstance, is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to Persons or circumstances other than those as to which it has been held invalid or unenforceable, will remain in full force and effect and shall in no way be affected, impaired or invalidated thereby, so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such determination, the Parties shall negotiate in good faith in an effort to agree upon a suitable and equitable substitute provision to effect the original intent of the Parties.
  
 5.11 No Third-Party Beneficiaries. Nothing contained in this Agreement, expressed or implied, is intended to confer upon any Person other than the Company, the Guarantor and the Lender, any benefits, rights or remedies of any nature whatsoever.
  
 5.12 Restrictive Legends.
  
 (a) The Lender understands and agrees that Parent will cause the legends set forth below or legends substantially equivalent thereto, to be placed upon any certificate(s) evidencing ownership of the Exchange Shares, together with any other legends that may be required by state or federal securities laws:
  
 THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY ONLY (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, OR (C) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (C) TO REQUEST THE DELIVERY OF AN OPINION OF COUNSEL AND/OR, CERTIFICATION AND/OR OTHER INFORMATION REASONABLY SATISFACTORY TO THE ISSUER.
  
 5.13 Interpretation. The headings contained in this Agreement are for reference purposes only and are not part of this Agreement. Whenever the words "include," "includes" or "including" are used in this Agreement, they shall be deemed followed by the words "without limitation." No rule of construction against the draftsperson shall be applied in connection with the interpretation or enforcement of this Agreement, as this Agreement is the product of negotiation between sophisticated parties advised by counsel. Except as expressly stated in this Agreement, all references to any statute, rule or regulation are to the statute, rule or regulation as amended, modified, supplemented or replaced from time to time (and, in the case of statutes, include any rules and regulations promulgated under the statute) and to any section of any statute, rule or regulation include any successor to the section.
  
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 IN WITNESS WHEREOF, the Parties have executed this Debt Exchange Agreement as of the date first written above.
  
  
 	 	 COSMOS HOLDINGS INC.
	
	 	 	 	 
		By:	 /s/ Grigorios Siokas 
	
	  
	 Name:
	 Grigorios Siokas
	 
	 	Title:	 Chief Executive Officer
	 
	 	 	 	 
	  
	  
	  
	  

	  
	 GUARANTOR
	  

	  
	  
	  
	  

	  
	 By: 
	 /s/ Grigorios Siokas 
	  

	  
	 Name: 
	 Grigorios Siokas
	  

	  
	  
	  
	  

	  
	  
	  
	  

	  
	 LENDER
	  

	  
	  
	  
	  

	  
	 By: 
	 /s/ Athanasios Kolefas 
	  

	  
	 Name: 
	 Athanasios (“Tom”) Kolefas
	  

 
  
 	 
	-10-

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