Document:

Exhibit 10.1

 

LETTER OF INTENT FOR BUSINESS TRANSACTIONS

 

April 20, 2016

 

Michael Mo

KT High-Tech Marketing Inc.

1999 S. Bascom Ave.

Suite 700

Campbell, CA 95008

 

Re: E3 IoT Product US Distribution

 

Dear Mr. Yao-San:

 

This non-binding letter
of intent (the “Letter of Intent”) is made by and between KT High-Tech Marketing ( “Party A”)
and E3 Enterprise (“Party B,” and together with Party A, each a “Party” and collectively the “Parties”)
and sets forth the general terms and conditions of the Parties’ agreement to distribute E3 Internet of Things (IoT) products
in the North American markets exclusively (the “Proposed Transaction”). This letter contains non-binding provisions
of understanding between Party A and Party B. Unless otherwise explicitly stated, it does not impose any legal obligations on
either Party.

 

The Proposed Transaction requires additional documentation
and approvals, including the preparation and approval of one or more final agreements (the “Final Agreements”) setting
forth the terms and conditions of the Proposed Transaction in further detail. Before the Final Agreements are reached, We would
like to confirm that we share an understanding of the principal terms and conditions of the Proposed Transaction, and that all
Parties are willing to proceed in mutual good faith to work toward Final Agreements and a closing consistent with these terms.

 

Our proposal is as follows:

 

		1.	PROPOSED TRANSACTION.

 

Party A will do each of the following: Provide E3 IoT product
marketing materials in English, procure the products from E3 directly from E3 factory or through E3 EMS/ODM partner at FOB Hong
Kong price, market these products through US distribution and retail channels.

 

Party B will do each of the following: Develop IoT products;
provide product information in Japanese; supply products to Party A on-demand basis; provide shipping and logistics service of
the products FOB Hong Kong; provide RMA service through its HK return center.

 

     

     

    

 

		2.	CONSIDERATION.

 

The consideration for the Proposed Transaction will be $10,000
as initial down payment for Party B products. Party A will pay for Party B product on cost-plus basis with a minimum gross margin
of 30%. Party B will provide Party A 60-day payment term.

 

		3.	TIMING.

 

The Parties shall execute the Final Agreements and close the
Proposed Transaction on or before September (the “Closing Date”) [, subject to the extension contemplated by Section
6 below].

 

		4.	CONTINGENCIES.

 

Any obligation to consummate the Proposed Transaction under
the terms of this Letter of Intent is based entirely on satisfaction of each of the following conditions:

 

		a.	Execution of mutually acceptable Final Agreements under the
                                         laws of the state of Delaware.

 

		b.	Receipt of all applicable consents, approvals, and authorizations
                                         including board, partnership, third party, and regulatory approvals, if any, relating
                                         to the Proposed Transaction.

 

		c.	Completion by each Party and its business, legal, financial,
                                         and engineering representatives of a substantial due diligence investigation of all relevant
                                         business, legal, financial, engineering, and/or environmental documents, with results
                                         satisfactory to such Party, no later than July 29,2016 or as otherwise agreed by the
                                         mutual written agreement of the Parties (the “Due Diligence Completion Date”).

 

		5.	Notice After
                                         Completion of Due Diligence.

 

On or before the Due Diligence Completion Date, each Party
shall notify the other Party in writing that it has completed substantial due diligence and is prepared to proceed with consummation
of the Proposed Transaction (the “Notice of Intention to Proceed”). If a Party does not provide a Notice of Intention
to Proceed to the other Party on or before the Due Diligence Completion Date, the other Party may cancel this proposal and, notwithstanding
anything contained herein to the contrary, neither Party shall have any obligation or liability to the other Party. For the purposes
of this Letter of Intent, the effective date of receipt of a Notice of Intention to Proceed will be the date of receipt as acknowledged
in writing by the receiving Party.

 

     

     

    

 

		6.	EXTENSION of
                                         Time for Closing.

 

If the Proposed Transaction is not completed by the Closing
Date and each Party has been operating in good faith to complete its due diligence and negotiate the transaction documents in
order to consummate the Proposed Transaction, the Parties shall evaluate the progress made towards closing and, if suitable progress
is being made, discuss in good faith a revised Counting Period (as defined below) and Closing Date. If satisfactory progress has
not been made towards closing, or if the Closing Date cannot occur by December 30th 2016, either Party in its sole
discretion, may withdraw from the Proposed Transaction without any further obligation or liability to the other Party. Any Party
withdrawing from the Proposed Transaction pursuant to the preceding sentence shall promptly inform the other Party in writing
of such termination, notwithstanding any other provision contained herein. As used herein, the term “Counting Period”
shall mean the period from the date of this proposal until the Closing Date, if on or before the Due Diligence Completion Date
each Party has sent the Notice of Intention to Proceed in accordance with the terms of Section 5 above.

 

		7.	FINAL AGREEMENTS.

 

The Final Agreements will include customary covenants, conditions,
representations, and warranties, which will be made as of the Closing Date. The Parties recognize that this is a non-binding Letter
of Intent and that there may be additional elements for negotiation and inclusion.

 

		8.	Access to
                                         Information.

 

While this Letter of Intent remains in effect, each Party and
its advisors shall have reasonable access to the other Party’s books, records, and personnel files, and shall receive such
financial and operational data and other information as that Party shall reasonably request. Any information so received shall
be kept confidential by the receiving Party. On termination or expiration of this Letter of Intent, each Party shall return any
and all printed information received from the other Party in connection with the Proposed Transaction.

 

		9.	Exclusive
                                         Dealing.

 

In consideration of the effort and expense to be incurred by
the Parties in connection with their due diligence review of the Proposed Transaction, each Party agrees that for a period of
120 days from the date of this Letter of Intent, such Party and its officers, directors, employees, and agents will not initiate,
solicit, encourage (directly or indirectly), or accept any offer or proposal of any third party with respect to the Proposed Transaction,
and shall not enter into any agreement, understanding, or transaction that would have an adverse affect on the ability of the
Parties to consummate the Proposed Transaction.

 

     

     

    

 

		10.	Expenses.

 

Unless and until otherwise agreed in writing, each Party shall
be responsible for and bear all of its own costs and expenses (including any legal, accounting, broker, advisor, investment banking,
or other fees and expenses or prior commitments in respect thereof) incurred in connection with the Proposed Transaction or this
Letter of Intent, regardless of whether or not the Proposed Transaction is consummated. Except for breach of any confidentiality
provisions hereof, neither Party shall have any liability to the other Party for any liabilities, losses, damages (whether special,
incidental, or consequential), costs, or expenses incurred by the Party if negotiations between the Parties are terminated as
provided in Section 13 below.

 

 

If the foregoing terms and conditions are in form and substance
acceptable to you, please so indicate by signing this Letter of Intent in the space provided below and returning it to the attention
of the undersigned. I look forward to working with you to complete the Proposed Transaction.

 

 

	 	 	Sincerely,

         

        KT High-Tech Marketing Inc

	 	 	 
	 	 	By:	 
	 	 	Michael Mo
	 	 	Its: CEO
	 	 	1999 S. Bascom Ave. Suite 700
	 	 	Campbell, CA 95008

 

AGREED AND ACCEPTED:

 

	 	 	E3 Enterprise

         

	Dated: 	 	 	By:	 
	 	 	 
	 	 	Bingwei Yao
	 	 	Its: President
	 	 	32F, Shinjuku Nomura Buidling,
	 	 	1-26-2 Nishi-Shinjuku, 
	 	 	Shinjuku-Ku
	 	 	Tokyo, JapanEXHIBIT 10.1

EXCHANGE
AGREEMENT

THIS EXCHANGE AGREEMENT
("Agreement") is entered into as of June 23, 2016, by and between CloudCommerce,
Inc., a Nevada corporation (the "Company"), and                   (the "Investor"),
with respect to the following facts:

R E C I T A L S

 

A.        The Company
entered into loan transactions with the Investor in the aggregate principal
amount of $                   , as described below, which were evidenced
by certain convertible promissory Notes (the "Notes"), copies of which are
attached hereto as Exhibit A.

 

	
    
      Effective Date

    	
     
	
    
      Annual Interest

    	
     
	
    
      Outstanding Principal
      Balance

    

 

B.         The Investor desires
to tender the Notes to the Company for cancellation, including all outstanding
principal and accrued unpaid interest, in exchange for the issuance by the
Company to Investor of                     shares of the Company's
Series B Preferred Stock (the "Shares"). 

C.        The Company
desires to issue the Shares to the Investor in exchange for the cancellation of
the Notes.

D.        The closing of
the transactions contemplated by this Agreement (the "Closing") will be deemed
to have occurred upon the completion of the deliveries by each Party to this
Agreement described in Section 2 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:

Section 1. EXCHANGE OF NOTES FOR SHARES

The Investor agrees to
tender the Notes to the Company for cancellation in exchange for which the
Company agrees to issue                  Shares of the Company's Series
B Preferred Stock to the Investor. The Investor agrees that upon receipt of the
Shares, the Notes shall be deemed fully paid and satisfied.  In the event the Notes
are lost or destroyed, the Investor hereby warrants that the Notes are lost or
destroyed and agrees to immediately surrender to the Company said Notes should
it later be found.  The Investor hereby agrees to indemnify and hold harmless
the Company and its affiliates against all liability, costs, damages, claims or
expenses which may be incurred by any of them as a result of any claim to
ownership of the lost Notes asserted by the Investor or by anyone other than Investor.

-1-

 

Section 2. DELIVERIES

2.1    The Company. 
The Company will cause its transfer agent to a deliver certificate evidencing
the Shares issuable to the Investor within five (5) business days after
delivery of the Notes or an affidavit that said Notes are lost by the Investor
to the Company.  

2.2    The Investor. 
The Investor will deliver the Notes or an affidavit that said Notes are lost
upon the execution of this Agreement.  The Investor also agrees to deliver any
other document reasonably requested by the Company that it deems necessary for
the consummation of the transactions contemplated by this Agreement.

Section 3.  EQUITABLE
RELIEF.

3.1       Damages
Inadequate.  Each party acknowledges that it would be impossible to measure
in money the damages to the other party 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 party to this Agreement will
not have an adequate remedy at law.

3.2       Equitable
Relief.  It is therefore agreed that the other 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 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.

Section 4. MISCELLANEOUS

4.1       Further
Assurances.  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.

4.2       Counterparts. 
This Agreement may be executed in several counterparts, each of which shall
constitute an original and all of which, when taken together, shall constitute
one agreement.

4.3       Governing Law. 
This Agreement shall be construed in accordance with, and governed in all
respects by, the laws of the State of Nevada.

4.4       Successors
and Assigns.  This Agreement shall be binding upon the parties hereto and
their respective heirs, successors and assigns, if any, and shall inure to the
benefit of the parties hereto and their respective heirs, successors and
assigns, if any.

 

-2- 

4.5       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.

4.6       Public
Disclosure. The Company and the Investor agree not to issue any public
statement with respect to the Investor's investment or proposed investment in
the Company or the terms of any agreement or covenant without the other party's
prior written consent, except such disclosures as may be required under
applicable law or under any applicable order, rule or regulation. The Company
agrees to reference Investor only as "an accredited investor" and attach only a
form copy of this Agreement, including exhibits, in any of the Company's
filings with the Securities and Exchange Commission or any other public
filings, except such full disclosures as may be required under applicable law
or under any applicable order, rule or regulation.

4.7       Waiver. 
No failure or delay on the part of either party hereto in the exercise of any power,
right or privilege hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any such power, right or privilege preclude any
other or further exercise thereof or of any other power, right or privilege.

4.8       Entire Agreement. 
This Agreement sets forth the entire understanding of the parties hereto and
supersedes all prior agreements and understandings between the parties relating
to the subject matter hereof.

4.9       Parties in
Interest.  None of the provisions of this Agreement or of any other
document relating hereto is intended to provide any rights or remedies to any
person (including, without limitation, any employees or creditors of the
Company) other than the parties hereto and their respective heirs, successors and
assigns, if any.

4.10     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.

 

-3- 

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed as of the date
first above written.

 

	COMPANY:	 	CLOUDCOMMERCE, INC.
	 	 	 
	 	 	 
	 	 	
    
      By:

    
	 	 	Andrew Van Noy, Chief Executive Officer
	 	 	 
	INVESTOR:	 	 
	 	 	 
	 	 	
    
      By:

    
	 	 	 

  

 

 

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EXHIBIT A

NOTES

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