Company: WKSP
Filing Date: 2025-12-11
Form Type: 8-K
Source: 0001493152-25-027177
Chunk: 2

Company: Worksport Ltd
Filing Date: 2025-12-11
Form: 8-K
Item: Item 1.01
Chunk 2
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 at least 61 days’ prior notice from the holder to
the Company, the holder may increase the amount of ownership of outstanding stock after exercising the holder’s Inducement Warrants
up to 9.99% of the number of shares of the Company’s common stock outstanding immediately after giving effect to the exercise,
as such percentage ownership is determined in accordance with the terms of the Inducement Warrants.

Cashless
Exercise

If,
at the time a holder exercises its Inducement Warrants, a registration statement registering the resale of the Inducement Warrant Shares
by the holder under the Securities Act (as defined herein) is not then effective or available, then in lieu of making the cash payment
otherwise contemplated to be made to us upon such exercise in payment of the aggregate exercise price, the holder may elect instead to
receive upon such exercise (either in whole or in part) the net number of shares of common stock determined according to a formula set
forth in the Inducement Warrants.

Trading
Market

There
is no established trading market for the Inducement Warrants, and the Company does not expect an active trading market to develop. The
Company does not intend to apply to list the Inducement Warrants on any securities exchange or other trading market. Without a trading
market, the liquidity of the Inducement Warrants will be extremely limited.

Rights
as a Stockholder

Except
as otherwise provided in the Inducement Warrants or by virtue of the holder’s ownership of shares of the Company’s common
stock, such holder of Inducement Warrants does not have the rights or privileges of a holder of the Company’s common stock, including
any voting rights, until such holder exercises such holder’s Inducement Warrants. The Inducement Warrants will provide that the
holders of the Inducement Warrants have the right to participate in distributions or dividends paid on the Company’s shares of
common stock.

Fundamental
Transactions

If
at any time the Inducement Warrants are outstanding, the Company, either directly or indirectly, in one or more related transactions
effects a Fundamental Transaction (as defined in the Inducement Warrants), a holder of Inducement Warrants will be entitled to receive,
upon exercise of the Inducement Warrants, the kind and amount of securities, cash or other property that such holder would have received
had they exercised the Inducement Warrants immediately prior to the Fundamental Transaction.