SEC Contract Filing

Filing Date: 2019-12-06

Document Content:
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>4
<FILENAME>pixy_ex101.htm
<DESCRIPTION>FORM OF EXCHANGE AGREEMENT
<TEXT>
<html><head><title>pixy_ex101.htm</title><!--Document Created by EDGARMaster--></head><BODY spellcheck="true" style="text-align:justify;font:10pt TIMES NEW ROMAN;margin:0px 7%"><p style="MARGIN: 0px" align="right"><b>EXHIBIT 10.1</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>EXCHANGE AGREEMENT</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">This Exchange Agreement (the &#8220;<b>Agreement</b>&#8221;) is entered into as of the 5th day of December, 2019, by and between ShiftPixy, Inc., a Wyoming corporation with offices located at 1 Venture, Suite 150, Irvine CA 92618 (the &#8220;<b>Company</b>&#8221;) and the investor signatory hereto (the &#8220;<b>Holder</b>&#8221;), with reference to the following facts:</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">A. Prior to the date hereof, the Company had issued (i) two senior secured convertible notes to the Holder, one in the original principal amount of $222,222, dated June 4, 2018 (the &#8220;<b>June Existing Note</b>&#8221;), and one in the original principal amount of $2,533,333.33, dated March 12, 2019, of which the remaining principal amounts are $222,222 and $2,445,000, respectively (collectively, the &#8220;<b>March Existing Note</b>&#8221;, and together with the June Existing Note, the &#8220;<b>Existing Notes</b>&#8221;) and (ii) a warrant (the &#8220;<b>Existing Warrant</b>&#8221;) to purchase 1,515,151 shares of Common Stock (as defined in that certain Securities Purchase Agreement, dated March 11, 2019, by and between the Company and the investors party thereto (the &#8220;<b>Securities Purchase Agreement</b>&#8221;).</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">B. The Company and the Holder desire to exchange (collectively, the &#8220;<b>Exchange</b>&#8221; or the &#8220;<b>Transaction</b>&#8221;) (i) the June Existing Note for (x) a senior secured convertible note in the principal amount of $244,444 (the &#8220;<b>June Exchange Note</b>&#8221;), and (y) 870,000 shares of common stock of the Company (the &#8220;<b>Exchange Stock</b>&#8221;, and together with any shares of Common Stock issuable upon exercise of any Exchange Note (as defined below), the &#8220;<b>Exchange Shares</b>&#8221;) and (ii) the March Exchange Note for the a senior secured convertible note in the principal amount of $2,689,500 (the &#8220;<b>March Exchange Note</b>&#8221;, and together with the June Exchange Note, collectively, the &#8220;<b>Exchange Notes</b>&#8221; and together with the Exchange Stock, the &#8220;<b>Exchange Securities</b>&#8221;). The Exchange Securities and this Agreement and such other documents and certificates related thereto are collectively referred to herein as the &#8220;<b>Exchange Documents</b>&#8221;.</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">C. The Exchange is being made in reliance upon the exemption from registration provided by Section 3(a)(9) of the Securities Act of 1933, as amended (the &#8220;<b>1933 Act</b>&#8221;).</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">D. Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Securities Purchase Agreement.</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants hereinafter contained, the parties hereto agree as follows:</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">1. <b><u>Exchange</u></b>. On the date hereof, the Holder hereby agrees to convey, assign and transfer the Existing Notes to the Company in exchange for which the Company agrees to issue the Exchange Securities. On the date hereof, in exchange for the Existing Notes, the Company shall deliver (a) the Exchange Stock to the Holder by deposit/withdrawal at custodian in accordance with the instructions attached hereto as <b><u>Schedule I</u></b>, and (b) the Exchange Notes to the Holder at the address set forth in the Schedule of Buyers to the Securities Purchase Agreement (or at such other address and/or designee as provided to the Company on or prior to the date hereof). The Exchange Stock and the June Exchange Note shall not be issued with any restricted legends. The March Exchange Note shall be issued with applicable restricted legends.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak40385db4-30a0-43e2-a77d-29607e5ae064" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">1</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">2. <b><u>Ratifications; Waiver; Exercise Price Adjustment; Amendments</u></b>. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px; TEXT-INDENT: 45px" align="justify">(a) <u>Ratification</u>. Except as otherwise expressly provided herein, (i) the Securities Purchase Agreement, the Exchange Agreement, each other Transaction Document (as defined in the Securities Purchase Agreement) and each other Exchange Document (as defined in the Exchange Agreement), is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects, except that on and after the date hereof and (