Item 1.01 Entry into a Material Definitive Agreement
On October 5, 2020, DSG Global Inc. ("we", "us", "our", the "Company"), through
its announced that its subsidiary, Imperium Motor Corp. entered into strategic
partnership a Memorandum of Understanding dated September 10, 2020 with Skywell
Shenzen Vehicles Co. Ltd. aka Skywell New Energy Automobile Group Co., Ltd.
("Skywell"), a leading manufacturer of electric vehicles in China. Pursuant to
the Memorandum of Understanding, Imperium received the exclusive right, subject
to placement of an initial vehicle order and corresponding payment to Skywell,
to purchase, homologate, and distribute Skywell's range of ET5 electric sport
utility vehicles in North America and the Caribbean. The Memorandum of
Understanding, while stated to be non-binding, provided for the conclusion of a
definitive agreement by the parties following the placement of an initial
vehicle order by the Company. The definitive agreement was to have a minimum
term of 3 years, and renew automatically for successive 3-year terms, subject to
the right of each party to terminate the agreement by giving 30 days' notice
prior to renewal.
Effective February 9, 2021, the Company entered into a definitive OEM
Cooperation Agreement with Skywell dated February 5, 2021, which agreement
modifies and replaces the Memorandum of Understanding. Pursuant to the OEM
Cooperation Agreement, Skywell has granted to the Company the exclusive right to
distribute Skywell's electric passenger cars, trucks (including but not limited
to the ET5 sport utility vehicle), buses and spare parts in the United States
and Canada for a 5 year term. In order to maintain the distributions rights
accorded by the agreement, the Company must purchase and deliver 1,000 units
within the first year of the term, 2,000 units in the second year, 3,000 units
in the third year, 4,000 units in the fourth year, and 5,000 units in the fifth
and final year of the term. Skywell may terminate the agreement in its
distribution with 30 days' notice if the Company fails to satisfy sales quotas.
Product price, terms of payment and logistical matters are subject to the
ongoing approval and agreement of the parties from time to time.
Item 9.01 Financial Statements and Exhibits
10.1 OEM Cooperation Agreement with Skywell New Energy Automobile Group Co.
Ltd. Dated February 5, 2021.
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