Document:

Exhibit 10.1

 

SERIES C EXCHANGE AGREEMENT

 

This Exchange Agreement
(the “Agreement”) is entered into as of the 29th  day of December 2021 (the “Effective Date”) by and
between Wytec International, Inc., a Nevada corporation (the “Company” or “Wytec”), and William H. Gray, an
individual (“Gray”), with respect to the following facts:

 

R E C I T A L S

 

		A.	Gray is the President of the Company and the holder of 1,000 shares of the Company’s Series C Preferred
Stock (the “Series C Shares”), which are all of the issued and outstanding shares of the Company’s Series C Preferred
Stock.

 

		B.	The Company desires to exchange each Series C Share for 3,000 shares of the Company’s common stock
(the “Shares”).

 

		C.	Gray desires to exchange the Series C Shares for a total of 3,000,000 Shares (the “Exchange”).

 

		D.	By executing this Agreement, Gray agrees to exchange the Series C Shares for Shares on the terms and conditions
of this Agreement.

 

NOW, THEREFORE, for
good and valuable consideration the receipt and sufficiency of which are hereby acknowledged by the parties to this Agreement, and in
light of the recitals stated above, the parties to this Agreement hereby agree as follows:

 

	1.	Exchange for Shares.

 

Effective as of the date first
above written of this Agreement, with the closing of the Exchange deemed to be effective on such date (the “Closing”), Gray
hereby tenders the Series C Shares to the Company for cancellation in consideration for the issuance to Gray of 3,000,000 Shares. The
Shares will be subject to the conditions of Rule 144 of the Securities Act of 1933, as amended (the “Securities Act”), with
respect to their transferability unless and until they are registered with the Securities and Exchange Commission.

 

	2.	Representations and Warranties of the Company.

 

The Company represents and warrants to Gray that now and as of the
Closing:

 

2.1       Good Standing. The Company is a corporation duly
incorporated, validly existing and in good standing under the laws of the State of Nevada.

 

2.2       Subsidiaries. The Company does not own, directly
or indirectly, any capital stock, equity or interest in any corporation, firm, partnership, joint venture, or other entity.

 

2.3       Capitalization. Approximately 6,810,322 shares of
common stock, 2,280,000 shares of Series A Preferred Stock, 2,811,800 shares of Series B Preferred Stock, and 1,000 shares of Series C
Preferred Stock are outstanding as of September 30, 2021. The Company has not granted registration rights to any person.

 

2.4       Litigation.
To the Company’s knowledge, there is no claim, dispute, action, suit, proceeding or investigation pending or threatened against
the Company, challenging the validity or propriety of the transactions contemplated by this Agreement, at law or in equity or admiralty
or before any federal, state, local, foreign or other governmental authority, board, agency, commission or instrumentality.

 

	3.	Representations and Warranties of Gray.

 

Gray represents and warrants to the Company that now and as of the
Closing:

 

 

 

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3.1       Title
to Series C Shares. Gray is the legal and beneficial owner of the Series C Shares, and, upon consummation of the Exchange contemplated
herein, the Company will acquire from Gray good and marketable title to such Series C Shares, free and clear of all liens and claims.

 

3.2       Access
to Information. Gray hereby represents and warrants that prior to the execution of this Agreement by Gray, Gray has carefully reviewed
the audited financial statements for the Company for the year ended December 31, 2020, and the unaudited financial statements at and for
the nine months ended September 30, 2021, copies of which are available in public reports filed by Wytec with the Securities and Exchange
Commission at www.sec.gov., which include risk factors, and updated business, financial and other information regarding the Company, and
has carefully reviewed that information and the Executive Summary of the Company, dated October 1, 2021 (collectively the “Information”).
As the Chairman, Chief Executive Officer and President of the Company, Gray has also had an opportunity to ask questions of and receive
additional information from other members of the management of the Company before making an investment decision.

 

3.3       Sophistication
and Knowledge. Gray is a “sophisticated investor” and acknowledges that he has sufficient experience in financial and
business matters to be capable of utilizing such information to evaluate the merits and risks of Gray’s investment through the Exchange,
and to make an informed decision relating to it.

 

3.4       Evaluation
of Risks. Gray has evaluated the risks of this investment in the Company, including those risks particularly described in the Information,
and has determined that the investment is suitable for Gray. Gray has adequate financial resources for an investment of this character,
and at this time can bear a complete loss of this investment. Gray understands that by making this Exchange, he is surrendering the voting
power associated with owning the Series C Shares.

 

3.5       No
Federal Registration. Gray understands that the Shares are not being registered under the Securities Act on the ground that the issuance
thereof is exempt under Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder as a transaction by an issuer not
involving any public offering, and that reliance on such exemption is predicated in part on the truth and accuracy of the undersigned’s
representations and warranties.

 

3.6       No
State Registration. Gray understands that the Shares are not being registered under state securities laws on the basis that the issuance
thereof is exempt as an offer and sale not involving a public offering in such state. Gray understands that reliance on such exemptions
is predicated in part on the truth and accuracy of Gray’s representations and warranties.

 

3.7       Acknowledgment
of No Liquidity. Gray has no need for any liquidity in this investment and is able to bear the economic risk of this investment
for an indefinite period of time. Gray has been advised and is aware that (i) it may not be possible to liquidate the investment
readily; (ii) Gray must bear the economic risk of his investment in the Shares for an indefinite period of time because the Shares
have not been registered under the Securities Act or state law and, therefore, cannot be sold unless they are subsequently
registered under the Securities Act and applicable state law or an exemption from such registration is available; (iii) a legend as
to the restrictions on transferability of the Shares referred to herein will be made on the documents evidencing the Shares, and
(iv) a notation in the appropriate records of the Company will be made with respect to any restrictions on transfer of Shares. The
undersigned covenants not to sell, transfer or otherwise dispose of any Shares unless such Shares have been registered under the
Securities Act and the applicable state securities laws, or an exemption from registration is available. The restrictive legend on
the book entry form or certificates will essentially state as follows:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), NOR UNDER ANY STATE SECURITIES LAWS. THESE
SECURITIES MAY NOT BE SOLD, TRANSFERRED, CONVEYED, HYPOTHECATED OR OTHERWISE ASSIGNED UNLESS THEY ARE REGISTERED UNDER THE ACT OR UNLESS
AN OPINION OF COUNSEL OR OTHER EVIDENCE REASONABLY SATISFACTORY TO THE COMPANY IS PRESENTED INDICATING THAT AN EXEMPTION FROM REGISTRATION
IS AVAILABLE.

 

3.8       Authority. This Agreement and all other documents
executed in connection with this acquisition of Shares are valid, binding, and enforceable agreements of Gray.

 

 

 

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3.9       Acknowledgment of Investment Risks. Gray hereby understands
and acknowledges the risk factors relating to this investment, including but not limited to those described in the Information, and that
the acceptance of the Shares is highly speculative and subject to a high degree of risk.

 

	4.	Further Assurances.

 

Each of the parties shall
use its reasonable commercial efforts to proceed promptly with the transactions contemplated in this Agreement, to fulfill the conditions
precedent for the closing of the Exchange, and to execute such further documents and perform such further acts as may be reasonably required
or desirable to carry out the provisions of this Agreement and to consummate the transactions contemplated by it.

 

	5.	Deliveries.

 

5.1       Items to be delivered by the Company to Gray.

 

(a)             
A book entry form from the Company’s transfer agent or certificate representing the Shares will be delivered to Gray within
ten (10) business days after the execution of this Agreement by all parties to it.

 

(b)            
An executed copy of this Agreement, signed by an authorized representative of the Company.

 

5.2      Items to be delivered to the Company by Gray.

 

 

(a)             
An executed copy of this Agreement, signed by Gray or his/her/its authorized representative.

 

(b)            
Any other document reasonably requested by the Company that it deems necessary for the consummation of the transactions contemplated
by this Agreement.

  

	6.	Survival of Representations and Warranties.

 

All representations, warranties
and statements made by a party in this Agreement or in any document or certificate delivered pursuant hereto shall survive the date of
the Closing for the period of the applicable statute of limitations. Each of the parties hereto is executing and carrying out the provisions
of this Agreement in reliance upon the representations, warranties, covenants and agreements contained in this Agreement or given at the
Closing, and not upon any investigation which it might have made or any representation, warranty, agreement, promise or information, written
or oral, given by the other party or by any other person, other than as specifically set forth in this Agreement.

 

	7.	Equitable Relief.

 

7.1       Damages Inadequate

 

Each party acknowledges that
it would be impossible to measure in money the damages to the other parties if there is a failure to comply with any covenants or provisions
of this Agreement, and agrees that in the event of any breach of any covenant or provision, the other parties to this Agreement will not
have an adequate remedy at law.

 

7.2       Equitable Relief

 

It is therefore agreed that
any party to this Agreement who is entitled to the benefit of the covenants or provisions of this Agreement which have been breached,
in addition to any other rights or remedies which they may have, shall be entitled to immediate equitable and injunctive relief to enforce
such covenants and provisions, and that in the event that any such action or proceeding is brought in equity to enforce them, the defaulting
or breaching party will not urge a defense that there is an adequate remedy at law.

 

 

 

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	8.	Waivers.

 

If either party shall at any
time waive any rights hereunder resulting from any breach by the other party of any of the provisions of this Agreement, such waiver is
not to be construed as a continuing waiver of other breaches of the same or other provisions of this Agreement. Resort to any remedies
referred to herein shall not be construed as a waiver of any other rights and remedies to which such party is entitled under this Agreement
or otherwise.

 

	9.	Successors and Assigns.

 

This Agreement shall be binding
upon, enforceable against and inure to the benefit of, the parties hereto and their respective heirs, administrators, executors, personal
representatives, successors and assigns, and nothing herein is intended to confer any right, remedy or benefit upon any other person.
This Agreement may not be assigned by any party hereto except with the prior written consent of the other parties, which consent shall
not be unreasonably withheld.

 

	10.	Entire and Sole Agreement.

 

This Agreement and any
instruments and agreements to be executed pursuant to this Agreement, set forth the entire understanding of the parties hereto with
respect to its subject matter, merge and supersede all prior and contemporaneous understandings with respect to its subject matter,
and may not be waived or modified, in whole or in part, except by a writing signed by each of the parties hereto. No waiver of any
provision of this Agreement in any instance shall be deemed to be a waiver of the same or any other provision in any other instance.
Failure of any party to enforce any provision of this Agreement shall not be construed as a waiver of its rights under such
provision.

 

	11.	Expenses.

 

Each party to this Agreement
will separately pay for their own respective costs of legal services, accounting, auditing, communications, and due diligence in connection
with the transactions contemplated by this Agreement.

 

	12.	Governing Law.

 

This Agreement shall be governed
by and construed in accordance with the laws of the State of Nevada. The venue for any legal proceedings under this Agreement will be
in the appropriate forum in the County of Bexar, State of Texas.

 

	13.	Counterparts.

 

This Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall be deemed to be an original, and such counterparts shall
constitute but one and the same instrument.

 

	14.	Attorneys’ Fees and Costs.

 

In the event that any party
must resort to legal action in order to enforce the provisions of this Agreement or to defend such action, the prevailing party shall
be entitled to receive reimbursement from the nonprevailing party for all reasonable attorneys’ fees and all other costs incurred
in commencing or defending such action, or in enforcing this Agreement, including but not limited to post judgment costs.

 

	15.	Further Acts.

 

The parties to this Agreement
hereby agree to execute any other documents and take any further actions which are reasonably necessary or appropriate in order to implement
the transactions contemplated by this Agreement.

 

 

 

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	16.	Authorized Signatures.

 

Each party to this Agreement
hereby represents that the persons signing below are duly authorized to execute this Agreement on behalf of their respective party.

 

	17.	Severability.

 

The provisions of this Agreement
are severable and in the event that one or more of its provisions are deemed to be unenforceable or invalid for any reason, such finding
will not affect the enforceability or validity of any other provision of this Agreement, which shall remain in full force and effect.

 

[Signatures on following page.]

 

 

 

 

 

 

 

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IN WITNESS WHEREOF, this Agreement has been
entered into as of the date first above written.

 

 

	COMPANY:	WYTEC
    INTERNATIONAL, INC., a Nevada corporation
	 	 
	 	 
	 	By: /s/ William H. Gray
	 	       William H ,Gray, Chief Executive Officer
	 	 
	 	 
	 	By: /s/ Erica Perez
	 	        Erica
    Perez, Corporate Secretary
	 	 
	 	 
	 	 
	SHAREHOLDER:	/s/ William H. Gray
	 	William H. Gray
	 	 
	 	 

 

 

 

    	 	6firstamtoloc

  L & B 10205/0380/L2044398.DOCX/3  1 Loan No. 539430    FIRST AMENDMENT TO LOAN AGREEMENT    Date: December 29, 2021    Lender: Texas Partners Bank, a Texas state bank doing business as The Bank of San Antonio,  successor by merger to The Bank of San Antonio    Lender’s Mailing Address: 1900 NW Loop 410  San Antonio, Texas 78213    Borrower:  Xpel, Inc., a Nevada corporation    618 West Sunset Road  San Antonio, Texas 78216    Loan: Loan evidenced by $57,000,000.00 revolving line of credit note executed by Borrower  and payable to the order of Lender dated May 21, 2021, as modified and increased to  $75,000,000.00 pursuant to a revolving line of credit note executed by Borrower and  payable to the order of Lender of even date herewith (together with all further renewals,  extensions and modifications of the foregoing, collectively referred to as the “Note”) as  stated therein.    Loan Agreement:  The Loan Agreement dated May 21, 2021, between Borrower and Lender (the  “Agreement”), as amended by this First Amendment to Loan Agreement (the  “First Amendment” and collectively with the Agreement and all further renewals,  extensions or modifications thereof or hereof, the “Loan Agreement”).     Loan Documents: The Loan Agreement, the Note, the deeds of trust, mortgages, collateral pledges,  and/or security agreements securing the Note, and the related documents  evidencing or securing the Loan, including without limitation (i) Pledge  Agreement dated June 18, 2021, as amended by First Amendment to Pledge  Agreement dated October 29, 2021, and as further amended by Second  Amendment to Pledge Agreement of even date herewith, each as executed by  Borrower and Lender (together with all further renewals, extensions,  modifications or amendments, collectively, the “Xpel Pledge Agreement”)  creating a lien on all of Borrower’s Pledged Equity and other assets as set forth  therein; (ii) Commercial Security Agreement dated May 21, 2021, as amended  by First Amendment to Commercial Security Agreement of even date herewith,  each as executed by Borrower and Lender (together with all further renewals,  extensions, modifications or amendments, collectively, the “Xpel Security  Agreement”) creating a lien on all of Borrower’s business assets as set forth  therein; (iii) Commercial Security Agreement dated October 29, 2021, as  amended by First Amendment to Commercial Security Agreement of even date  herewith, each as executed by 1 One Armor, Inc. and Lender (together with all  further renewals, extensions, modifications or amendments, collectively, the “1  One Armor, Inc. Security Agreement”) creating a lien on all business assets of  1 One Armor, Inc. as set forth therein; (iv) Commercial Security Agreement dated  October 29, 2021, as amended by First Amendment to Commercial Security  Agreement of even date herewith, each as executed by TintNet, Inc. and Lender  (together with all further renewals, extensions, modifications or amendments,  collectively, the “TintNet, Inc. Security Agreement”) creating a lien on all  business assets of TintNet, Inc. as set forth therein; and (v) all other documents  evidencing or securing repayment of the Loan.    

 

  L & B 10205/0380/L2044398.DOCX/3  2 Loan No. 539430     R E C I T A L S:    A. The information set forth above forms part of this instrument and Borrower warrants and  represents to Lender that such information is true and correct.   B. Borrower has requested that the Lender increase the amount of funds available pursuant  to the original note in the amount of $57,000,000.00 to $75,000,000.00 as evidenced by the Note.  C. Lender is agreeable to Borrower’s request subject to the terms and conditions set forth  herein and in the other documents between Borrower, any collateral provider and Lender executed of  even date herewith.  NOW THEREFORE, in consideration of the mutual covenants, terms and conditions set forth  herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby  acknowledge, the parties agree as follows:    1. Recitals; Terms.  Borrower adopts and affirms the Recitals.  All defined terms under  the Agreement shall have the same meaning in this First Amendment unless modified herein.    2. Indebtedness.  Without limitation, the Indebtedness includes the Note, as increased of  even date herewith.  Any reference to the “Note” in the Agreement or Loan Documents shall be deemed  to refer to the Note dated of even date herewith.    3. Conditions Precedent to any Advances under the Note.  As a condition to Lender’s  agreement to increase the principal amount of the loan facility available to Borrower pursuant to the  Agreement from $57,000,000.00 to $75,000,000.00, Borrower and Lender shall execute, and Borrower  shall cause any collateral providers to execute, the Loan Documents dated of even date herewith.    4. Collateral.  The Loan will continue to be secured by the collateral as described in the (i)  Xpel Pledge Agreement; (ii) Xpel Security Agreement; (iii) 1 One Armor, Inc. Security Agreement, and  (iv) TintNet, Inc. Security Agreement, all as may be further renewed, extended, modified and amended  over time. This collateral may be referred to as the “Collateral.”  If Borrower uses the proceeds of  the Note to acquire any equity interests of a third party organized under the laws of a jurisdiction  in the United States (thereby creating a U.S. domestic subsidiary of Borrower), Borrower  covenants and agrees to cause each such U.S. domestic subsidiary to pledge all of its assets  to secured repayment of the Loan and Note and Borrower shall execute, or cause such parties  as Lender may reasonably require to execute, such further documents as Lender may  reasonably require to evidence such pledge of assets including, but not limited to, further  security agreements and resolutions on such terms and conditions as Lender may reasonably  require.  The form of the security agreement to be executed by each such subsidiary shall be  upon substantially the same terms as the Xpel Security Agreement.  All such additional assets  shall constitute Collateral securing repayment of the Loan.    5. Representations.  Borrower hereby confirms that all representations and warranties set  forth in the Agreement (a) that contain a materiality qualification, are true and correct, on and as of the  date hereof and (b) that do not contain a materiality qualification, are true and correct in all material  respects, on and as of the date hereof; except (x) the representations and warranties contained in  Section 5(H) of the Agreement shall be deemed to refer to the most recent financial statements  furnished pursuant to Section 6 of the Agreement and (y) any representation that by its terms is made  only as of an earlier date, shall remain true and correct in all material respects (or in the case of such  representations and warranties that are subject to a materiality qualification, in all respects) as of such  earlier date.    6. Miscellaneous. Borrower agrees to pay all reasonable out-of-pocket expenses of  Lender in connection with this First Amendment and the documents dated of even date herewith as  

 

  L & B 10205/0380/L2044398.DOCX/3  3 Loan No. 539430   well as the negotiation, administration, enforcement and or collection of the Loan Documents.  Borrower  represents and warrants to Lender that there are no defaults or events of default under the Loan  Documents now existing. In consideration of Lender’s acceptance of this First Amendment and  agreement to increase the principal amount of the Note, Borrower agrees that it has no defenses,  affirmative or otherwise, claims, or causes of action of any kind or nature whatsoever against the Lender  or its agents or employees, directly or indirectly, arising out of the Loan Documents. TO THE EXTENT  ANY SUCH DEFENSES, AFFIRMATIVE OR OTHERWISE, CLAIMS, OR CAUSES OF ACTION  EXIST, THEY ARE HEREBY FOREVER WAIVED, DISCHARGED AND RELEASED.    7. Full Force.  Except as amended by this First Amendment, the Agreement continues in  full force and effect in accordance with its terms.    8. Counterparts. This First Amendment and any amendments, waivers, consents or  supplements hereto and any Loan Documents may be executed in counterparts, each of which shall  constitute an original, but all taken together shall constitute a single instrument. Delivery of an executed  counterpart of a signature page to this First Amendment and any Loan Documents by facsimile or in  electronic (i.e. “pdf” or “tiff” or via “DocuSign” or similar) format shall be effective as delivery of a  manually executed counterpart of said instrument. The words “execution,” “signed,” “signature,” and  words of similar import in this First Amendment and any Loan Documents shall be deemed to include  electronic or digital signatures or electronic records (including via “DocuSign” or similar), each of which  shall be of the same effect, validity and enforceability as manually executed signatures or a paper- based recordkeeping system, as the case may be, to the extent and as provided for under applicable  law, including the Electronic Signatures in Global and national Commerce Act of 2000 (15 U.S.C. §§  7001 to 7031, the Uniform Electronic Transactions Act (UETA), or any state law based on UETA,  including the Texas Uniform Electronic Transactions Act, Chapter 322, Texas Business & Commerce  Code.    THIS WRITTEN FIRST AMENDMENT TO LOAN AGREEMENT, THE AGREEMENT AND THE  OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES  WITH RESPECT TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE  CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL  AGREEMENT OF THE PARTIES.    THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.    [Remainder of Page Intentionally Left Blank]    

 

L & B 10205/0380/L2044398.DOCX/3 Signature Page to Loan No. 539430  First Amendment to Loan Agreement   (Xpel, Inc.) IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly  executed as of the date first above written.  BORROWER:  XPEL, INC., a Nevada corporation  By:__________________________________  Barry Wood, Chief Financial Officer  /s/ Barry Wood 

 

 /s/ Robert S. Glenn

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