Document:

EXHIBIT 10.5

   

 EXHIBIT 10.5
  
 THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES OR AN OPINION OF COUNSEL OR OTHER EVIDENCE ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.
 

 CONVERSION AGREEMENT
 

 THIS CONVERSION AGREEMENT (the "Agreement"), dated as of September 21, 2020 (the “Effective Date”) is made by and between Global Boatworks Holdings, Inc., a Florida corporation (the “Company”), and Oceanside Equities Inc. (the “Debt Holder”).
 

 WHEREAS, Debt Holder is owed $384,000 in accrued compensation as of the Effective Date (the “Debt”). 
 

 WHEREAS, the Company and Debt Holder wish to convert the Debt into such number of shares of common stock of the Company equal to the Debt divided by the conversion price of $0.4391 per share (the "Conversion Price") resulting in the issuance of 888,709 shares of common stock of the Company (the “Shares”) to Debt Holder.
 

 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which the parties hereby acknowledge the parties agree as follows:
 

  1.

 Conversion.  It is agreed by the Company and Debt Holder that on the Effective Date the Debt shall convert into the Shares at the Conversion Price.  
 

  2.

 Certificate Delivery. Within three (3) business days of the Effective Date, the Company shall deliver a certificate or evidence of a book entry representing the Shares to Holder.  
 

  3.

 Further Assurances. The parties, by entering into this Agreement, agree to execute all agreements and other documents as reasonably requested by the other party.
 

  4.

 Representations and Warranties and Covenants of Debt Holder. Debt Holder represents, warrants and covenants to the Company as follows:
 

 a. No Registration.  Debt Holder understands that the Shares have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”) by reason of a specific exemption from the registration provisions of the Securities Act, the availability of which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of Debt Holder’s representations as expressed herein or otherwise made pursuant hereto.
 

 b.  Investment Experience. Debt Holder has substantial experience in evaluating and investing in private placement transactions of securities in companies similar to the Company and acknowledges that Debt Holder can protect Debt Holder’s interests. Debt Holder has such knowledge and experience in financial and business matters so that Debt Holder is capable of evaluating the merits and risks of Debt Holder’s investment in the Company.
 

 

  
 
 d.  Speculative Nature of Investment; SEC Reports; Dilution.  Debt Holder understands and acknowledges that the Company has a limited financial and operating history and that an investment in the Company is highly speculative and involves substantial risks. Debt Holder can bear the economic risk of such investment and is able, without impairing such financial condition, to hold the Shares for an indefinite period of time and to suffer a complete loss of Debt Holder’s investment.  Debt Holder further understands that the Company will need issue additional shares of common stock in connection with (i) future financings, (ii) the retention or hiring of management and employees and (iii) the conversion of existing outstanding debt that will be converted at various conversion prices some which will be at a price less than the Conversion Price, which will significantly dilute Debt Holder.  
 

 e.  Accredited Investor. Debt Holder is an “accredited investor’ within the meaning of Regulation D, Rule 501(a), promulgated by the Securities and Exchange Commission under the Securities Act and shall submit to the Company such further assurances of such status as may be reasonably requested by the Company.
 

 f.   Rule 144.  Debt Holder acknowledges that the Shares must be held indefinitely unless subsequently registered under the Securities Act or an exemption from such registration is available. The Debt Holder is aware of the provisions of Rule 144 promulgated under the Securities Act which permit limited resale of shares subject to the satisfaction of certain conditions, including among other things, the existence of a public market for the shares, the availability of certain current public information about the Company and the resale occurring not less than six months after a party has purchased and paid for the security to be sold.  The Debt Holder acknowledges that, in the event all of the requirements of Rule 144 are not met, registration under the Securities Act or an exemption from registration will be required for any disposition of the Shares the Debt Holder understands that, although Rule 144 is not exclusive, the Securities and Exchange Commission has expressed its opinion that persons proposing to sell restricted securities received in a private offering other than in a registered offering or pursuant to Rule 144 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales and that such persons and the brokers who participate in the transactions do so at their own risk.  
 

 g.          Authorization.
 

 i. The Debt Holder has all requisite power and authority to execute and deliver this Agreement, and to carry out and perform its obligations under the terms hereof. All action on the part of the Debt Holder necessary for the authorization, execution, delivery and performance of this Agreement, and the performance of all of the Debt Holder’s obligations herein, has been taken.
 

 ii. This Agreement, when executed and delivered by the Debt Holder, will constitute valid and legally binding obligations of the Debt Holder, enforceable in accordance with its terms except: (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies or by general principles of equity.
 

 iii.  No consent, approval, authorization, order, filing, registration or qualification of or with any court, governmental authority or third person is required to be obtained by the Debt Holder in connection with the execution and delivery of this Agreement by the Debt Holder or the performance of the Debt Holder’s obligations hereunder.
 

 

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 h.  Brokers or Finders. The Debt Holder has not engaged any brokers, finders or agents, and the Company has not, and will not, incur, directly or indirectly, as a result of any action taken by the Debt Holder, any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with this Agreement and the transactions related hereto.
 

 i.  Tax Advisors. The Debt Holder has reviewed with its own tax advisors the U.S. federal, state, local and foreign tax consequences of this investment and the transactions contemplated by this Agreement. With respect to such matters, the Debt Holder relies solely on such advisors and not on any statements or representations of the Company or any of its agents, written or oral. The Debt Holder understands that it (and not the Company) shall be responsible for its own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement.
 

 j.  Legends.  The Debt Holder understands and agrees that the certificates evidencing the Shares shall bear a legend in substantially the form as follows (in addition to any legend required by any other applicable agreement or under applicable state securities laws):
 

 “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH ACT AND/OR APPLICABLE STATE SECURITIES LAWS, OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.”
 

  6.

 Miscellaneous.  
 

 a.  Notice.  Any notice required under this Agreement shall be deemed duly delivered (and shall be deemed to have been duly received if so given), if personally delivered, sent by a reputable courier service, or mailed by registered or certified mail, postage prepaid, return receipt requested, addressed to the parties at the addresses set forth above or to such other address as any party may have furnished to the other in writing in accordance with this Section.
 

 b.  Law and Jurisdiction.  The laws of the State of Florida apply to this Agreement, without deference to the principles of conflicts of law.  Both jurisdiction and venue for any litigation pursuant to this Agreement shall be proper in the courts of Florida.
 

 c.  Severability.  If the law does not allow a provision of this Agreement to be enforced, such unenforceable provision shall be amended to become enforceable and reflect the intent of the parties, and the rest of the provisions of this Agreement shall remain in effect.
 

 d.  Waiver.  The failure of any party, in any instance, to insist upon strict enforcement of the provisions of this Agreement shall not be construed to be a waiver or relinquishment of enforcement in the future, and the terms of this Agreement shall continue to remain in full force and effect.
 

 e.  Assignability.  This Agreement shall not be assignable by either party.
 

 f.  Amendment.  This Agreement may only be amended or modified in a writing signed by both of the parties and referring to this Agreement.
 

 g.  Entire Agreement. This Agreement constitutes the entire agreement and final understanding of the parties with respect to the subject matter of this Agreement and supersedes and 
 

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 terminates all prior and/or contemporaneous understandings and/or discussions between the parties, whether written or verbal, express or implied, relating in any way to the subject matter of this Agreement.
 

            IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed by their respective officers thereonto duly authorized as of the day and year first above written.
 

 

 GLOBAL BOATWORKS HOLDINGS, INC.
 

 

 

 By: /s/ Robert Rowe
 Name: Robert Rowe
 Title: CEO
 

 OCEANSIDE EQUITIES INC.
 

 

 By:/s/ Vince Beatty
 Name: Vince Beatty
 Title: CEO
 

 

 

 4EXHIBIT 10.6

    
 EXHIBIT 10.6
  
 SERVICES AGREEMENT
 THIS SERVICES AGREEMENT (this “Agreement”), entered into this ___ day of September 2020, sets forth the arrangement between ________________, with an address located at ______________ (hereinafter referred to as “Consultant”), and Global Boatworks Holdings, Inc., a Florida corporation, with its principal place of business at 2637 Atlantic Blvd., #134, Pompano Beach, FL  33062 (hereinafter referred to as “Company”), with respect to compensation to which Consultant may become entitled under the terms and conditions set forth in this Agreement.
 

 W I T N E S S E T H:
 WHEREAS, the Company is in process of evaluating and closing the acquisition of R3 Score Technologies Inc. which has developed data driven scoring designed to unlock new valuable employees and customers globally utilizing a multi-factor algorithm based on 11 factors assessing character, capacity and continuity of choice; 
 WHEREAS, since June 2020, the Consultant has provided various services relating to the acquisition R3 Score Technologies Inc. including the introduction and assisting in the closing of the acquisition (the “Closing”) (collectively, the "Services");
 WHEREAS, the Consultant has extensive knowledge and experience with respect to the Services and the Consultant has provided the Services to the Company; and
 NOW, THEREFORE, in consideration of the mutual promises set forth in this Agreement, the parties agree as follows:
  
 1.

 Purpose; Services.  In consultation with the management of the Company, the Consultant has provided the Services.   Consultant shall not have any authority to execute contracts or make any commitments on behalf of the Company.  Consultant accepts the engagement provided in this Agreement and agrees to perform the Services in a professional manner, diligently, in good faith, in a manner consistent with the best interests of the Company.  
  
 2.

 Compensation.  On the date hereof, Consultant shall be issued ______ shares of common stock with a cost basis of $0.80 per share.  The shares of common stock shall be issued and fully earned upon the Closing. 
  
 3.

 Independent Contractor Relationship.  This Agreement is intended to create an independent contractor relationship between Consultant and Company.
  
 (a)

 No Taxes Withheld from Compensation.  Company will not withhold any taxes from any compensation paid to Consultant according to this Agreement. It is acknowledged and agreed by the parties that Company has not, is not, and shall not be obligated to make, and that it is the sole responsibility of Consultant to make, in connection with compensation paid to Consultant according to this Agreement, all periodic filings and payments required to be made in connection with any withholding taxes, FICA taxes, Federal unemployment taxes, and any other federal, state or local taxes, payments or filings required to be paid, made or maintained.
  
 (b)

 Consultant Controls Time and Effort.  It is agreed that Company is interested only in the ultimate results of Consultant’s activities pursuant to this Agreement, and that Consultant shall have exclusive control over the time and effort invested by Consultant pursuant to this Agreement, and the manner and means of Consultant’s performance under this Agreement.  
  
 (c)

 Independence from Company.  The parties further agree that Consultant shall have no control or supervision over Company’s employees, officers, directors, representatives or affiliates.  Consultant will not represent that it is an employee of Company. Consultant shall at all times represent himself and be construed as independent of Company.  Consultant shall not, under any circumstances, be deemed to be a servant or employee 
 

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 of Company for any purpose, including for Federal tax purposes.  Consultant’s relationship to Company is that of an independent contractor, and nothing in this Agreement shall constitute this Agreement as a joint venture or partnership between Consultant and Company.  Consultant shall have no authority to bind Company or any of its employees, officers, directors, representatives or affiliates by any promise or representation, oral or otherwise, unless specifically authorized in a writing bearing an authorized signature of a Company officer, director or representative. All discussions and negotiations with any source for funding and/or financing shall be conducted by Company.
 Consultant represents that it is an accredited investor as such term is defined under the Securities Act of 1933, as amended.  
  
 4.

 Confidential Information. Consultant acknowledges that, pursuant to this Agreement, Consultant may be given access to or may become acquainted with certain information, trade secrets or both, of the other party, including but not limited to, confidential information and trade secrets regarding computer programs, designs, skills, patents, pending patents, copyrights, procedures, methods, documentation, plans, drawings, schematics, facilities, customers, policies, marketing, pricing, customer lists and other information and know-how all relating to or useful to the Company (collectively, the “Confidential Information") and the exclusive property of the Company.
  
 5.

 Nondisclosure of Confidential Information.  During the term of this Agreement and for a period of five years thereafter, Consultant shall only disclose the Confidential Information in connection with its performance pursuant to this Agreement, subject to the terms and conditions of this Agreement, and otherwise, the Consultant shall not in any manner, either directly or indirectly, divulge, disclose or communicate to any person or entity, any of the Confidential Information.  Consultant expressly agree that the Confidential Information affects the successful and effective conduct of the Company’s business and its goodwill, and that any breach of the terms of this Section by the Consultant is a breach of this Agreement.  
  
 6.

 Exceptions to Nondisclosure.  Notwithstanding anything to the contrary contained in this Agreement, the Consultant shall not be prohibited from disclosing to third parties, or using without the prior written consent of the Company, information that (a) was, on the date of this Agreement, generally known to the public, (b) is as of the date of this Agreement known to the Consultant, as evidenced by written records in the possession of Consultant, (c) is subsequently disclosed to Consultant by a third party who is in lawful possession of such information and is not under an obligation of confidence, (d) is disclosed by the Company to third parties generally without restriction on use and disclosure, or (e) is required to be disclosed by law or a final order of a court or other governmental agency or authority of competent jurisdiction, provided, however, reasonable notice prior to any disclosure as required by applicable law or court process shall be given to the Company which would allow the Company sufficient time to attempt to obtain injunctive relief in respect to such disclosure.
  
 7.

 Term, Termination of this Agreement and Return of Property.  The Term of this Agreement shall be for a period of one (1) month (the “Term”).  
  
 9.

 Notice.  Any notice required under this Agreement shall be deemed duly delivered (and shall be deemed to have been duly received if so given), if personally delivered, sent by a reputable courier service, or mailed by registered or certified mail, postage prepaid, return receipt requested, addressed to the parties at the addresses set forth above or to such other address as any party may have furnished to the other in writing in accordance with this Section.
  
 10.

 Law and Jurisdiction.  The laws of the State of Florida apply to this Agreement, without deference to the principles of conflicts of law.  Both jurisdiction and venue for any litigation pursuant to this Agreement shall be in the State of Florida.
 

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 11.

 Severability.  If the law does not allow a provision of this Agreement to be enforced, such unenforceable provision shall be amended to become enforceable and reflect the intent of the parties, and the rest of the provisions of this Agreement shall remain in effect.  
  
 12.

 Waiver.  The failure of any party, in any instance, to insist upon strict enforcement of the provisions of this Agreement shall not be construed to be a waiver or relinquishment of enforcement in the future, and the terms of this Agreement shall continue to remain in full force and effect.  
  
 13.

 Amendment.  This Agreement may only be amended or modified in a writing signed by both of the parties and referring to this Agreement.
  
 14.

 Entire Agreement.  This Agreement constitutes the entire agreement and final understanding of the parties with respect to the subject matter of this Agreement and supersedes and terminates all prior and/or contemporaneous understandings and/or discussions between the parties, whether written or verbal, express or implied, relating in any way to the subject matter of this Agreement. 
  
 15.

 Execution in Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one in the same instrument.  Confirmation of execution by electronic transmission of a facsimile signature shall be binding on the confirming party.
 SIGNING THIS AGREEMENT INDICATES ACCEPTANCE OF THE TERMS OF THIS AGREEMENT.
  
Global Boatworks Holdings, Inc.

  
 

 

  By:

              
  Name:

 Robert Rowe 
 Title: CEO
 

  

  

  
 

 

  By: 

               

              
 Name:
 Title: 
 

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