Document:

cosm_ex41.htm

EXHIBIT 4.1
  
 DEBT EXCHANGE AGREEMENT
  
 THIS DEBT EXCHANGE AGREEMENT (the “Agreement”) is entered into as of July 19, 2021, by and between Cosmos Holdings Inc., a Nevada corporation with offices located at 141 West Jackson Blvd, Suite 4236, Chicago, Illinois 60604 (the “Company”), and Grigorios Siokas, a resident of Greece and Chief Executive Officer of Cosmos Holdings Inc. (the “Investor”).
  
 W I T N E S S E T H
  
 A. WHEREAS, the Investor has heretofore made certain loans in the aggregate amount of $1,250,000 as of this date to the Company (the “Indebtedness”), and desires to acquire shares of Common Stock at an exchange rate of $6.00 per share in exchange for the payment of $1,250,000 of these loans;
  
 B. WHEREAS, the Company has agreed to issue 208,333 shares (the “Shares”) in exchange for the repayment of $1,250,000 of these loans; and
  
 C. WHEREAS, the Exchange is being made in reliance upon the exemptions from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”).
  
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants hereinafter contained, the parties hereto agree as follows:
  
 1. Exchange. On the date hereof, pursuant to Sections 4(a)(2) and 3(a)(9) of the Securities Act, the Investor hereby agrees to convey, assign and transfer the Indebtedness to the Company in exchange for which the Company agrees to issue the Shares to the Investor. On the date hereof, in exchange for the Indebtedness, the Company shall deliver or cause to be delivered to the Investor (or his designee) the Shares. The Company and the Investor shall execute and/or deliver such other documents and agreements as are customary and reasonably necessary to effectuate the Exchange.
  
 2. Holding Period. For the purposes of Rule 144, the Company acknowledges that the holding period of the Shares may be tacked onto the holding period of the Indebtedness.
  
 3. Representations and Warranties of the Investor.
  
 (a) Investor Representation. 
  
 (i) Authority. The Investor has the requisite power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out his obligations hereunder.
  
 (ii) Reliance on Exemptions. The Investor understands that the Shares are being offered and exchanged in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying, in part, upon the truth and accuracy of, and the Investor’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Investor set forth herein in order to determine the availability of such exemptions and the eligibility of the Investor to acquire the Shares. 
  
 	 
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 (iii) Transfer or Resale. The Investor understands that: (i) the Shares have not been and are not being registered under the Securities Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) the Investor shall have delivered to the Company (if requested by the Company) an opinion of counsel, in a form reasonably acceptable to the Company, to the effect that such Shares to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration, or (C) the Investor provides the Company with reasonable assurance that such Shares can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the Securities Act (or a successor rule thereto) (collectively, “Rule 144”); (ii) any sale of the Shares made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144, and further, if Rule 144 is not applicable, any resale of the Shares under circumstances in which the Company (or the Person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the rules and regulations of the SEC promulgated thereunder; and (iii) neither the Company nor any other Person is under any obligation to register the Shares under the Securities Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder. Notwithstanding the foregoing, the Shares may be pledged in connection with a bona fide margin account or other loan or financing arrangement secured by the Shares and such pledge of Shares shall not be deemed to be a transfer, sale or assignment of the Shares hereunder, and the Investor effecting a pledge of Shares shall not be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or any other document, including, without limitation, this Section 3(a)(iii).
  
 (iv) No Governmental Review. The Investor understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Shares or the fairness or suitability of the investment in the Shares nor have such authorities passed upon or endorsed the merits of the offering of the Shares.
  
 (v) Validity; Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Investor and shall constitute the legal, valid and binding obligations of the Investor enforceable against the Investor in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. 
  
 (vi) No Conflicts. The execution, delivery and performance by the Investor of this Agreement, and the consummation by the Investor of the transactions contemplated hereby will not (A) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Investor is a party, or (B) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to the Investor, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of the Investor to perform its obligations hereunder. 
  
 	 
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 (vii) Investment Risk; Sophistication. The Investor is acquiring the Shares hereunder in the ordinary course of its business. The Investor has such knowledge, sophistication, and experience in business and financial matters so as to be capable of evaluation of the merits and risks of the prospective investment in the Shares, and has so evaluated the merits and risk of such investment. The Investor is an “accredited investor” as defined in Regulation D under the Securities Act.
  
 (viii) Ownership of Shares. The Investor owns the Shares free and clear of any Liens (other than the obligations pursuant to this Agreement, liens in the ordinary course of business (e.g. bone fide margin account liens) and applicable securities laws).
  
 4. Representations and Warranties of the Company. The Company represents and warrants to Investor as follows: 
  
 (a) Due Incorporation. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Nevada and has the requisite corporate power to own its properties and to carry on its business as currently being conducted. The Company is duly qualified as a foreign corporation to do business and is in good standing in each jurisdiction where the nature of the business conducted or property owned by it makes such qualification necessary, unless the failure to be so qualified or in good standing, as the case may be, would not have or would not reasonably be expected to result in (i) a material adverse effect on the legality, validity or enforceability of this Agreement or any other document in connection with the Offering, (ii) a material adverse effect on the results of operations, assets, business or financial condition of the Company, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under this Agreement (any of (i), (ii) or (iii), constituting a “Material Adverse Effect”).
  
 (b) This Agreement has been duly and validly executed and delivered by the Company, and upon the execution and delivery of this Agreement by the Company and the performance by the Company of his obligations herein, this Agreement will constitute a legal, valid and binding obligation of the Company. 
  
 (c) The execution and delivery by the Company of this Agreement does not, and the performance by the Company of its obligations under this Agreement and the consummation of the transactions contemplated hereby will not, conflict with or result in a violation or breach of any of the terms, conditions or provisions of any other agreement to which the Company is a party.
  
 (d) The Shares have been offered and sold to the Investor in accordance with the registration requirements of applicable securities laws.
  
 (e) There is no action, suit, proceeding or investigation pending or, to the best knowledge of the Company, currently threatened against the Company that may affect the validity of this Agreement or the right of the Company to enter into this Agreement or to consummate the transactions contemplated hereby.
  
 (f) The Shares are free and clear of all liens, charges, encumbrances and restrictions of any kind and nature whatsoever, and none of the Shares is subject to any written or oral agreement, whatsoever, with respect to the voting thereof, the sale or pledge thereof (including, without limitation any option or right of first refusal to sell any such Shares), nor has any proxy been granted to any corporation, company, partnership, joint venture, other entity or natural person (a “Person”) with respect to any of the Shares.
  
 	 
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 (g) There is no firm, corporation, entity, agency or Person that is entitled to a finder’s fee or any type of brokerage commission in relation to or in connection with the transactions contemplated by this Agreement as a result of any agreement or understanding with the Company.
  
 (h) The Company shall take such additional steps, and shall execute and deliver such additional documents and instruments, at the Company’s expense, as shall be necessary to transfer to the Investor all of the Company’s right, title and interest in and to the Shares as provided in this Agreement, and to finalize the transfer of the Shares on the books and records of the Company.
  
 5. Effective Date. Except as otherwise provided herein, this Agreement shall be deemed effective as of such date as the Company and the Investor shall have duly executed and delivered this Agreement (the “Effective Date”).
  
 6. No Commissions. Neither the Company nor the Investor has paid or given, or will pay or give, to any person, any commission, fee or other remuneration, directly or indirectly, in connection with the transactions contemplated by this Agreement.
  
 7. No Integration. None of the Company, its Subsidiaries, any of their affiliates, or any Person acting on their behalf shall, directly or indirectly, make any offers or sales of any security (as defined in the Securities Act) or solicit any offers to buy any security or take any other actions, under circumstances that would require registration of any of the Shares under the Securities Act or cause this offering of the Shares to be integrated with such offering or any prior offerings by the Company for purposes of Regulation D under the Securities Act. 
  
 8. Miscellaneous.
  
 (a) This Agreement shall be governed and construed in accordance with the laws of the State of Nevada.
  
 (b) The invalidity or unenforceability of any term, phrase, clause, paragraph, restriction, covenant, agreement or other provision of this Agreement shall in no way affect the validity or enforcement of any other provision or any part thereof. 
  
 (c) A telefaxed or received e-mail copy of this Agreement shall be deemed an original. 
  
 (d) The headings and captions used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 
  
 (e) Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the Investor. A waiver of any breach or failure to enforce any of the terms or conditions of this Agreement shall not in any way affect, limit or waive a party’s rights at any time to enforce strict compliance thereafter with every other term or condition of this Agreement. All remedies under this Agreement shall be cumulative and not alternative.
  
 (f) This Agreement constitutes the entire agreement and understanding of the parties with respect to the subject matter hereof and supersedes any and all prior negotiations, correspondence, agreements, understandings duties or obligations between the parties with respect to the subject matter hereof. 
  
 	 
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 (g) The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties.
  
 (h) The representations, warranties, covenants and agreements of the Company and the Investor contained in this Agreement shall survive the closing of the transaction contemplated hereunder.
  
 (i) This Agreement cannot be altered or otherwise amended except pursuant to an instrument in writing signed by each of the parties. This Agreement shall be binding upon, and, inure to the benefit of the parties hereto, their successors, legal representatives and assigns.
  
 (j) Any notice, request, instrument or other document to be given hereunder by any party to any of the other parties shall be in writing and shall be deemed to have been duly given when delivered personally; if delivered via a nationally recognized overnight courier service to the party at the address first written above in the Preamble, on the second business day; or otherwise, within five (5) days after dispatch by registered or certified mail, postage prepaid, return receipt requested, to the party to whom the same is so given or made or at such other address as the one party shall specify to the other party in writing.
  
 (k) It is acknowledged, understood and agreed by the parties hereto that they had the opportunity to seek independent legal counsel of its choice prior to the execution and delivery of this Agreement. Any axiom of law requiring construction of a document against the draft or thereof is hereby waived. The parties hereto have freely, of their own respective will, executed this Agreement without any undue influence, coercion, duress or other circumstances to bring into question the validity, enforceability and/or execution of this Agreement.
  
 IN WITNESS WHEREOF, Investor and the Company have executed this Agreement as of the date set forth on the first page of this Agreement.
  
 	  
	 COMPANY:
	  

	  
	  
	  

	 	COSMOS HOLDINGS INC.	
	 	 	 	 
		By:	/s/ George Terzis	
	  
	  
	Name: George Terzis 	 
	 	 	Title: Chief Financial Officer	 
	 	 	 	 
	  
	 INVESTOR
	  

	  
	  
	  
	  

	  
	 /s/ Grigorios Siokas 
	  

	  
	Name:	 Grigorios Siokas
	  

	  
	  
	 Title: Chief Executive Officer
	  

	  
	  
	  
	  

	  
	 Aggregate Principal Amount of Indebtedness:
	  

	  
	  
	 $1,250,000.00
	  

  
 	 
	5EX-10.1

 Exhibit 10.1 

REASSIGNMENT NO. 19 OF RECEIVABLES 

IN REMOVED ASSET POOL ONE ACCOUNTS 

REASSIGNMENT NO. 19 OF RECEIVABLES INCLUDED IN ASSET POOL ONE (this “Reassignment”), dated as of July 16, 2021, by and
between the CHASE ISSUANCE TRUST (the “Issuing Entity” or the “Trust”) and WELLS FARGO BANK, NATIONAL ASSOCIATION (the “Collateral Agent”), pursuant to the Asset Pool One Supplement referred to
below. 
 W I T N E S S E T H: 

WHEREAS, the Trust and the Collateral Agent are parties to the Third Amended and Restated Asset Pool One Supplement, dated as of
January 20, 2016 (hereinafter as such agreement may have been, or may from time to time be, amended, supplemented or otherwise modified, the “Asset Pool One Supplement”); 

WHEREAS, pursuant to the Asset Pool One Supplement, the Trust wishes to remove from Asset Pool One all Asset Pool One Receivables in certain
designated Asset Pool One Accounts identified on Schedule 1 to this Reassignment (the “Removed Asset Pool One Accounts”) and to cause the Collateral Agent to reassign the Asset Pool One Receivables of such Removed Asset Pool One
Accounts, whether now existing or hereafter created, from the Collateral Agent to the Trust; and 
 WHEREAS, the Collateral Agent is willing
to accept such designation and to reassign the Asset Pool One Receivables in the Removed Asset Pool One Accounts subject to the terms and conditions hereof; 

NOW, THEREFORE, the Trust and the Collateral Agent hereby agree as follows: 

Defined Terms. All terms defined in the Asset Pool One Supplement and used herein shall have such defined meanings when used herein,
unless otherwise defined herein. 
 “Removal Cut-Off Date” shall mean, with respect
to the Removed Asset Pool One Accounts designated hereby, June 30, 2021. 
 “Removal Date” shall mean, with respect to
the Removed Asset Pool One Accounts designated hereby, July 16, 2021. 
 “Removal Notice Date” shall mean, with
respect to the Removed Asset Pool One Accounts, July 9, 2021. 
 1. Designation of Removed Asset Pool One Accounts. No later
than five Business Days after the Removal Date, or as otherwise agreed upon between the Trust and the Collateral Agent, the Trust will deliver to the Collateral Agent an accurate list, based on the computer records of, or kept on behalf of, the
Transferor (in the form of a computer file, microfiche list, CD-ROM or such other form as is agreed upon between the Transferor and the Collateral Agent) of all Removed Asset Pool One Accounts, identified by
account number and the aggregate amount of Asset Pool One Principal Receivables in each Removed Asset Pool One Account as of 

 
the Removal Cut-Off Date, which list shall, as of the Removal Date, modify and amend and be incorporated into and made a part of this Reassignment and the
Asset Pool One Supplement. 
 2. Reassignment of Receivables. The Collateral Agent does hereby reassign to the Trust, without
recourse, on and after the Removal Date, all right, title and interest of the Collateral Agent in, to and under the Asset Pool One Receivables now existing and hereafter created from time to time in the Removed Asset Pool One Accounts, all
Interchange and Recoveries related thereto, all monies due or to become due (including all Asset Pool One Finance Charge Receivables) and all amounts received or receivable with respect thereto and all proceeds (as defined in the UCC as in effect in
the applicable jurisdiction) thereof (the “Removed Collateral”). 
 3. Conditions Precedent. The reassignment
hereunder of the Asset Pool One Receivables in the Removed Asset Pool One Accounts and the amendment of the Asset Pool One Supplement pursuant to Section 7 of this Reassignment are each subject to the satisfaction, on or prior to the Removal
Date, of the conditions set forth in subsection 2.5(b) of the Asset Pool One Supplement. 
 4. Representations and Warranties. The
Trust hereby represents and warrants to the Collateral Agent as of the Removal Date that: 
 (a) Legal, Valid and Binding Obligation.
This Reassignment constitutes a legal, valid and binding obligation of the Trust enforceable against the Trust, in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws now or hereafter in effect affecting the enforcement of creditors’ rights in general and the rights of creditors of national banking associations and except as such enforceability may be limited by general
principles of equity (whether considered in a suit at law or in equity); and 
 (b) List of Removed Accounts. The list of Removed
Asset Pool One Accounts delivered pursuant to subsection 2.5(b)(ii) of the Asset Pool One Supplement, as of the Removal Date, is accurate in all material respects. 

5. Representations and Warranties of the Servicer. No selection procedures believed by the Servicer to be materially adverse to the
interests of the Asset Pool One Noteholders were utilized in selecting the Removed Asset Pool One Accounts to be removed from the Trust and (I) a random selection procedure was used by the Servicer in selecting the Removed Asset Pool One
Accounts and only one such removal of randomly selected Accounts shall occur in the then current Monthly Period, (II) the Removed Asset Pool One Accounts arose pursuant to an affinity, private-label, agent-bank,
co-branding or other arrangement with a third party that has been cancelled by such third party or has expired without renewal and which by its terms permits the third party to repurchase the Removed Asset
Pool One Accounts subject to such arrangement, upon such cancellation or non-renewal and the third party has exercised such repurchase right or (III) the Removed Asset Pool One Accounts were selected
using another method that will not preclude transfers from satisfying the conditions for sale accounting treatment under generally accepted accounting principles in effect for reporting periods before November 15, 2009. 

  
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 6. Amendment of the Asset Pool One Supplement. The Asset Pool One Supplement is
hereby amended to provide that all references therein to the “Asset Pool One Supplement,” to “this Asset Pool One Supplement” and to “herein” shall be deemed from and after the Removal Date to be a dual reference to the
Asset Pool One Supplement as supplemented by this Reassignment. All references therein to the Asset Pool One Accounts shall be deemed not to include the Removed Asset Pool One Accounts designated hereunder and all references to Asset Pool One
Receivables shall be deemed not to include the Asset Pool One Receivables reassigned hereunder. Except as expressly amended hereby, all of the representations, warranties, terms, covenants and conditions of the Asset Pool One Supplement shall remain
unamended and shall continue to be, and shall remain, in full force and effect in accordance with its terms and except as expressly provided herein shall not constitute or be deemed to constitute a waiver of compliance with or a consent to
noncompliance with any term or provision of the Asset Pool One Supplement. 
 7. Release. 

(a) The Collateral Agent hereby expressly terminates, relinquishes, releases, discharges and renders ineffective any and all security
interests, liens, mortgages and encumbrances, as against the Trust, any transferee of the Trust and any person claiming title to or an interest in the Removed Collateral through any such person, or any successor or assign of any of the foregoing
(all such persons and entities being referred to individually as a “Transferee” and collectively as the “Transferees”), any and all right, title, benefit, interest or claim whatsoever, present or future, actual or
contingent (collectively, “Rights”), owned or held by the Collateral Agent to, against or in respect of the Removed Collateral. 

(b) In case any provision of this Reassignment shall be rendered invalid, illegal or unenforceable in any jurisdiction, the Collateral Agent
hereby acknowledges that its interest in the Removed Collateral is subordinate and junior to the security interest of any Transferee and hereby expressly agrees that any security interest it may have in any Removed Collateral is and shall remain
subordinate and junior to all security interests granted by a Transferee, regardless of the time of the recording, perfection or filing thereof or with respect thereto. 

(c) The Collateral Agent acknowledges and agrees that the Transferees and their representatives are expressly entitled to rely on the
provisions of this Section 8, it being the intent of the Collateral Agent that the Transferees will acquire title to the Removed Collateral purchased by them free of any Rights owned or held by the Collateral Agent to, against or in respect of
the Removed Collateral. 
 8. Counterparts. This Reassignment may be executed in two or more counterparts, and by different parties
on separate counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument. 
 9.
GOVERNING LAW. THIS REASSIGNMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

  
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 10. Authorization. The Collateral Agent hereby authorizes the Trust, or any agent
designated by the Trust, to file any financing statements or continuation statements, and amendments to financing statements, in any jurisdictions and with any filing offices as the Trust may determine, in its sole discretion, are necessary or
advisable to reflect the reassignment to the Trust pursuant to Section 3 hereof. Such financing statements may describe the collateral in the same manner as described herein or may contain an indication or description of collateral that
describes such property in any other manner as the Trust may determine, in its sole discretion, is necessary, advisable or prudent to ensure the perfection of the security interest in the collateral granted to the Trust in connection herewith,
including, without limitation, describing such property as “all assets” or “all personal property.” 
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INTENTIONALLY LEFT BLANK] 

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

					
	CHASE ISSUANCE TRUST
		
	By:	 	 JPMORGAN CHASE BANK,

		 	NATIONAL ASSOCIATION, as
		 	Administrator
		
	By:	 	 /s/ Maria L. Sarcone

		 	Name:	 	Maria L. Sarcone
		 	Title:	 	Executive Director
	
	WELLS FARGO BANK, NATIONAL
	ASSOCIATION, as Collateral Agent
		
	By:	 	 /s/ Cory J. Dahlstrand

		 	Name:	 	Cory J. Dahlstrand
		 	Title:	 	Corporate Trust Officer

 CHASE ISSUANCE TRUST 

REASSIGNMENT NO. 19 (APO) 

 Schedule 1 to 

Reassignment No. 19 
 of
Receivables 
 REMOVED ASSET POOL ONE ACCOUNTS 

[Delivered to the Collateral Agent]

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