EXHIBIT 10.3


 


REGISTRATION RIGHTS AGREEMENT


 


THIS REGISTRATION
RIGHTS AGREEMENT (this “Agreement”), dated as of March 11, 2021, is made by and between Grom Social Enterprises.,
Inc., a Florida corporation (the “Company”), and FirstFire Global Opportunities Fund, LLC (the “Holder”).
The Company and the Holder are hereinafter sometimes collectively referred to as the “Parties” and each a “Party”
to this Agreement.


 


RECITALS


 


WHEREAS, the
Company’s Board of Directors (the “Board”) has unanimously approved, upon the terms and subject to the
conditions of, that certain Securities Purchase Agreement, of even date herewith, by and between the Holder and the Company (the
“Securities Purchase Agreement”), the Company has agreed to issue and sell to Holder a convertible promissory
note in the principal amount of $300,000.00 (the “Note”) and a warrant to purchase shares of common stock in
the Company (the “Warrant” together with the Note, and any shares of common stock in the Company issuable upon
conversion or exercise of either, the “Securities”), to the Holder; and


 


WHEREAS, to
induce the Holder to execute and deliver the Securities Purchase Agreement and this Agreement, the Company has agreed to provide
certain registration rights under the Securities Act of 1933, as amended (the “Securities Act”) and the rules
and regulations promulgated thereunder, and applicable state securities laws, with respect to the shares of Securities issuable
pursuant to the Securities Purchase Agreement.


 


NOW, THEREFORE,
for and in consideration of the foregoing premises, the agreements and covenants herein contained, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Holder, intending to be legally
bound, hereby agree as follows:


 


1.       
Definitions. As used in this Agreement, the following terms shall have the following meanings:


 


a.       “Closing
Date” shall mean the Purchase Date, as such term is defined in the Securities Purchase Agreement.


 


b.       “Effective
Date” shall mean the date the SEC declares the Registration Statement effective and the Company has filed all necessary
amendments, including the letter to request accelerated effectiveness and the Prospectus covering the resale of Shares.


 


c.       “Filing
Date” shall mean the date the Registration Statement has been filed with the SEC (as determined by EDGAR) and no stop
order of acceptance has been issued by the SEC.


 


d.       “Person”
means a corporation, a limited liability company, an association, a partnership, an organization, a business, an individual, a
governmental or political subdivision thereof or a governmental agency.


 


e.       “Principal
Market” means any of the New York Stock Exchange (including NYSE American), any tier of the Nasdaq Stock Market, or any
tier of the OTC Markets, whichever is the principal market on which the Securities is listed.


 


f.       “Purchase
Amount” means the Purchase Price, as such term is defined in the Securities Purchase Agreement.


 


 


 


 






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g.       “Register”,
“Registered” and “Registration” refer to a registration effected by preparing and filing
with the SEC one or more Registration Statements in compliance with the Securities Act and pursuant to Rule 415 under the Securities
Act or any successor rule providing for Note securities on a continuous basis (“Rule 415”), and effectiveness
of such Registration Statement(s).


 


h.        “Registrable
Securities” means the shares of Securities issued or issuable (i) pursuant to the Securities Purchase Agreement, including
shares issued pursuant to any conversion of the Note or exercise of the Warrant, and (ii) any shares of capital stock issued or
issuable with respect to such shares of Securities as a result of any stock split, stock dividend, recapitalization, exchange or
similar event or otherwise, which have not been (x) included in a Registration Statement that has been declared effective by the
SEC, (y) sold under circumstances meeting all of the applicable conditions of Rule 144, promulgated under the Securities Act or
(z) saleable without limitation as to time, manner and volume pursuant to Rule 144(k) (or any similar provision then in force)
under the Securities Act. In addition, the Registrable Securities shall include the shares (and any shares issuable upon conversion
or exercise) of any existing securities between the Holder and the Company.


 


i.       “Registration
Statement” means a registration statement of the Company filed with the SEC under the Securities Act.


 


j.       “SEC”
means the United States Securities and Exchange Commission.


 


All capitalized terms
used but not defined in this Agreement shall have the meaning ascribed to them in the Securities Purchase Agreement; provided however,
that any references to Fixed Conversion Price, Default Fixed Conversion Price, or Alternate Conversion Price shall have the meaning
ascribed to them in the Note.


 


For the purposes of
determining dates for penalties or filing deadlines, as outlined in this Agreement, both Parties agree that the date given by the
SEC shall constitute the official date.


 


2.       
Registration.


 


a.       Mandatory
Registration. The Company shall prepare and file with the SEC a Registration Statement or Registration Statements (as is necessary)
covering the resale of all of the Registrable Securities, which Registration Statement(s) shall state that, in accordance with
Rule 415 promulgated under the Securities Act, such Registration Statement also covers such indeterminate number of additional
shares of Securities as may become issuable upon stock splits, stock dividends or similar transactions. The Company shall initially
register for resale all of the Registrable Securities, or an amount equal to the maximum amount allowed under Rule 415 (a)(1)(i)
as interpreted by the SEC. In the event the Company cannot register sufficient shares to cover the Registerable Securities, due
to the remaining number of authorized shares of common stock of the Company being insufficient, the Company will use its best efforts
to register the maximum number of shares it can, based upon the remaining balance of authorized shares and will use its best efforts
to increase the number of its authorized shares of common stock as soon as reasonably practicable.


 


b.       The Company shall use its best
efforts to have the Registration Statement filed with the SEC within sixty (60) days following the Closing Date (the “Filing
Deadline”). If the Registration Statement covering the Registrable Securities required to be filed by the Company pursuant
to Section 2(a) hereof is not filed by the Filing Deadline, then the Company shall pay the Holder the sum of one percent
(1%) of the Purchase Amount as liquidated damages, and not as a penalty. The liquidated damages set forth in this Section 2(b)
shall be paid, at the Holder’s option, in cash or shares of common stock priced at the Default Fixed Conversion Price, or
in portions thereof. Failure of the Company to make payment within five (5) business days of the Filing Deadline shall be considered
a breach of this Agreement. 


 


Notwithstanding the
foregoing, the amounts payable by the Company pursuant to this Section 2 shall not be payable to the extent any delay in
the filing of the Registration Statement occurs because of an act of, or a failure to act or to act timely by the Holder or is
otherwise attributable to the Holder.


 


 


 






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The Company acknowledges
that its failure to have the Registration Statement filed by the Filing Deadline will cause the Holder to suffer irreparable harm,
and, that damages will be difficult to ascertain. Accordingly, the Parties agree that it is appropriate to include in this Agreement
a provision for liquidated damages. The Parties acknowledge and agree that the liquidated damages provision set forth in this Section
2(b) represents the Parties’ good faith effort to quantify such damages and, as such, agree that the form and amount
of such liquidated damages are reasonable and will not constitute a penalty. The payment of liquidated damages shall not relieve
the Company from its obligations to register the Securities and deliver the Securities, registered, pursuant to the terms of this
Agreement and the Securities Purchase Agreement.


 


c.       The
Company shall use its best efforts and take all available steps to have the Registration Statement declared effective by the SEC
within one hundred twenty (120) calendar days after the Closing Date (the “Effective Deadline”). If the Registration
Statement covering the Registrable Securities required to be filed by the Company pursuant to Section 2(a) hereof has not
become effective by the Effective Deadline, then the Company shall pay the Holder the sum of one percent (1%) of the Purchase
Amount as liquidated damages, and not as a penalty. The liquidated damages set forth in this Section 2(c) shall be paid,
at the Holder’s option, in cash or shares of common stock priced at the Fixed Default Conversion Price, or portion thereof.
Failure of the Company to make payment within five (5) business days of the date the Registration Statement is declared effective
by the SEC shall be considered a breach of this Agreement.


 


If
the Registration Statement covering the Registrable Securities required to be filed by the Company pursuant to Section 2(a)
hereof has become effective, and, thereafter, the Holder’s right to sell is suspended, for any reason, then the Company
shall pay the Holder the sum of one percent (1%) of the Purchase Amount plus interest and penalties due to the Holder for the
Registrable Securities pursuant to the Securities Purchase Agreement for each ten (10) calendar day period, pro rata, compounded
daily, following the suspension, until such suspension ceases (the “Suspension Damages”). The Suspension Damages
shall continue until the obligation is fulfilled and shall be paid within five (5) business days after each ten (10) day period,
or portion thereof, until such suspension is released. The Suspension Damages shall be paid, at the Holder’s option,
in cash or Securities priced at the Fixed Default Conversion Price, or portion thereof. Failure
of the Company to make payment within said five (5) business days after each ten (10) day period shall be considered a breach
of this Agreement. 


 


Notwithstanding the
foregoing, the amounts payable by the Company pursuant to this Section 2(c) shall not be payable to the extent any delay
in the effectiveness of the Registration Statement or any suspension of the effectiveness occurs because of an act of, or a failure
to act or to act timely by the Holder or is otherwise attributable to the Holder.


 


Further, if the Registration
Statement prohibits, or otherwise limits, the ability of the Holder to sell any of the Registrable Securities at the prevailing
market price (each or any, a “Price Restriction”), the Company’s obligations under this Section 2(c) shall not
be met. For avoidance of doubt, the Registration Statement will not be considered effective for purposes of this Agreement if there
is a Price Restriction on the Registrable Securities, despite the Registration Statement being otherwise declared effective by
the SEC.


 


The Company acknowledges
that its failure to have the Registration Statement become effective by the Effective Deadline or to permit the suspension of
the effectiveness of the Registration Statement, will cause the Holder to suffer irreparable harm and, that damages will be difficult
to ascertain. Accordingly, the Parties agree that it is appropriate to include in this Agreement a provision for liquidated damages.
The Parties acknowledge and agree that the liquidated damages provision set forth in this Section 2(c) represents the Parties’
good faith effort to quantify such damages and, as such, agree that the form and amount of such liquidated damages are reasonable
and will not constitute a penalty. The payment of liquidated damages shall not relieve the Company from its obligations to register
the Securities and deliver the Securities, registered, pursuant to the terms of this Agreement and the Securities Purchase Agreement.


 


 


 


 






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d.        The
Company agrees to only register such securities as are necessary to meet its obligations to the Holder hereunder including the
Securities and any other of the Company’s securities held by the Holder, and agrees not to register additional securities
without the Holder’s prior written consent to be agreed upon in writing by the Holder before the Filing Date. Furthermore,
the Company agrees that it will not file any other Registration Statement, including those on Form S-8 or Form S-4, for other securities,
for a period of twelve (12) months from the Closing Date, unless it has the prior written approval from the Holder. Failure to
obtain prior written approval from the Holder will cause the Holder to suffer damages that will be difficult to ascertain. Accordingly,
the Parties agree that it is appropriate to include a provision for liquidated damages and the Company agrees to pay the Holder
the sum of one percent (1%) of the Purchase Amount as liquidated damages and not as a penalty for each thirty (30) calendar day
period, pro rata, compounded daily, until the unauthorized Registration Statement is withdrawn.


 


3.       
Related
Obligations.


 


At such time as the
Company is obligated to prepare and file a Registration Statement with the SEC pursuant to Section 2(a) hereof, the Company
will use its best efforts to effect the registration of the Registrable Securities in accordance with the intended method of disposition
thereof and, with respect thereto, the Company shall have the following obligations:


 


a.       The
Company shall use its best efforts to cause such Registration Statement relating to the Registrable Securities to become effective
within ninety calendar days after the Issue Date and shall keep such Registration Statement effective pursuant to Rule 415 under
the Securities Act until the date on which the Holder shall have sold all the Registrable Securities or the Shares included therein
otherwise cease to be Registrable Securities (the “Registration Period”), which Registration Statement (including
any amendments or supplements thereto and prospectuses contained therein) shall, as of the date thereof, not contain any untrue
statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements
therein, in light of the circumstances in which they were made, not misleading.


 


b.       The
Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to a Registration
Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to Rule
424 under the Securities Act, as may be necessary to keep such Registration Statement effective during the Registration Period,
and, during such period, comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities
of the Company covered by such Registration Statement until such time as all of such Registrable Securities shall have been disposed
of in accordance with the intended methods of disposition by the Holder as set forth in such Registration Statement. In the event
the number of shares of Securities available under a Registration Statement filed pursuant to this Agreement is at any time insufficient
to cover all of the Registrable Securities, the Company shall amend such Registration Statement, or file a new Registration Statement
(on the short form available therefor, if applicable), or both, so as to cover all of the Registrable Securities, in each case,
as soon as practicable, but in any event within thirty (30) calendar days after the necessity therefor arises (based on the then
Purchase Price of the Securities and other relevant factors on which the Company reasonably elects to rely), assuming the Company
has sufficient authorized shares at that time, and if it does not, within thirty (30) calendar days after such shares are authorized.
The Company shall use it best efforts to cause such amendment and/or new Registration Statement to become effective as soon as
practicable following the filing thereof.


 


c.       The
Company shall furnish to the Holder whose Registrable Securities are included in any Registration Statement and its legal counsel
without charge and upon request (i) promptly after the same is prepared and filed with the SEC at least one copy of such Registration
Statement and any amendment(s) thereto, including financial statements and schedules, all documents incorporated therein by reference
and all exhibits, the prospectus included in such Registration Statement (including each preliminary prospectus) and, with regards
to such Registration Statement(s), any correspondence by or on behalf of the Company to the SEC or the staff of the SEC and any
correspondence from the SEC or the staff of the SEC to the Company or its representatives, (ii) upon the effectiveness of any Registration
Statement, a copy of the prospectus included in such Registration Statement and all amendments and supplements thereto (or such
other number of copies as the Holder may reasonably request) and (iii) such other documents, including copies of any preliminary
or final prospectus, as the Holder may reasonably request from time to time in order to facilitate the disposition of the Registrable
Securities. The Company filing the documents described in this paragraph through EDGAR shall constitute delivery.


 


 


 






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d.       [RESERVED]


 


e.       The Company shall
immediately notify the Holder in writing of the happening of any event as a result of which the prospectus included in a Registration
Statement, as then in effect, would then contain an untrue statement of a material fact or omission to state a material fact, which
would otherwise be required to be stated therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading; and, as a result, is required to be supplemented or as a result of which the Registration
Statement is required to be amended (“Registration Default”) and use all diligent efforts to promptly prepare
any necessary supplement to such prospectus or amendment to such Registration Statement and take any other necessary steps to cure
the Registration Default, (which, if such Registration Statement is on Form S-3, may consist of a document to be filed by the Company
with the SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) and to be incorporated by reference in the prospectus) to correct such untrue statement or omission, and deliver
one (1) copy of such supplement or amendment to Holder (or such other number of copies as Holder may reasonably request; delivery
via EDGAR shall constitute delivery). Failure to cure the Registration Default within five (5) business days shall result in the
Company paying liquidated damages of one percent (1%) of the Purchase Amount for each thirty (30) calendar day period or portion
thereof, beginning on the date of suspension. The Company shall also promptly notify Holder in writing (i) when a prospectus or
any prospectus supplement or post-effective amendment has been filed, and when a Registration Statement or any post-effective amendment
has become effective (notification of such effectiveness shall be delivered to Holder by facsimile on the same day of such effectiveness
and by overnight mail); (ii) of any request by the SEC for amendments or supplements to a Registration Statement or related prospectus
or related information; (iii) of the Company’s reasonable determination that a post-effective amendment to a Registration
Statement would be appropriate; (iv) in the event the Registration Statement is no longer effective; or (v) the Registration Statement
is stale for a period of more than five (5) trading days as a result of the Company’s failure to timely file its financials
with the SEC.


 


The Company acknowledges
that its failure to cure the Registration Default within five (5) business days will cause the Holder irreparable harm, and that
damages will be difficult to ascertain. Accordingly, the Parties agree that it is appropriate to include in this Agreement a provision
for liquidated damages. The Parties acknowledge and agree that the liquidated damages provision set forth in this Section 4(e)
represents the Parties’ good faith effort to quantify such damages and, as such, agree that the form and amount of such liquidated
damages are reasonable and will not constitute a penalty.


 


It is the intention
of the Parties that interest payable under any of the terms of this Agreement shall not exceed the maximum amount permitted under
any applicable law. If a law, which applies to this Agreement which sets the maximum interest amount, is finally interpreted so
that the interest in connection with this Agreement exceeds the permitted limits, then: (1) any such interest shall be reduced
by the amount necessary to reduce the interest to the permitted limit; and (2) any sums already collected (if any) from the Company
which exceed the permitted limits will be refunded to the Company. The Holder may choose to make this refund by reducing the amount
that the Company owes under this Agreement or by making a direct payment to the Company. If a refund reduces the amount that the
Company owes the Holder, the reduction will be treated as a partial payment. In the event that any provision of this Agreement
is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable, such provision shall
be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability
of the remaining provisions of this Agreement will not in any way be affected or impaired thereby.


 


f.        The
Company shall use its best efforts to prevent the issuance of any stop order or other suspension of effectiveness of a Registration
Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction and, if such
an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment and to notify
the Holder of the issuance of such order and the resolution thereof. The Company will immediately notify the Holder of a proceeding,
or threat of proceeding, the result of which could affect the effectiveness of the registration statement.


 


g.       The
Company shall permit the Holder and its counsel, of the Holder’s choosing, to review and comment upon all Registration Statements,
amendments and supplements, at least seven (7) days prior to filing. The Company shall not file any Registration Statement with
which Holder or its counsel reasonably objects.


 


 


 






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h.       The
Company shall make available for inspection by (i) the Holder and (ii) one firm of attorneys and one firm of accountants or other
agents retained by the Holder (collectively, the “Inspectors”) all pertinent financial and other records, and
pertinent corporate documents and properties of the Company (collectively, the “Records”), as shall be reasonably
deemed necessary by each Inspector, and cause the Company’s officers, directors and employees to supply all information which
any Inspector may reasonably request; provided, however, that each Inspector shall hold in strict confidence and shall not make
any disclosure (except to the Holder) or use of any Record or other information which the Company determines in good faith to be
confidential, and of which determination the Inspectors are so notified, unless (a) the disclosure of such Records is necessary
to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required under the Securities Act,
(b) the release of such Records is ordered pursuant to a final, non-appealable subpoena or order from a court or government body
of competent jurisdiction, or (c) the information in such Records has been made generally available to the public other than by
disclosure in violation of this or any other agreement of which the Inspector has knowledge. The Holder agrees that it shall, upon
learning that disclosure of such Records is sought in or by a court or governmental body of competent jurisdiction or through other
means, give prompt notice to the Company and allow the Company, at its expense, to undertake appropriate action to prevent disclosure
of, or to obtain a protective order for, the Records deemed confidential.


 


i.       The
Company shall hold in confidence and not make any disclosure of information concerning the Holder unless (i) disclosure of such
information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information is necessary
to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of such information is ordered
pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction, or (iv)
such information has been made generally available to the public other than by disclosure in violation of this Agreement or any
other agreement. The Company agrees that it shall, upon learning that disclosure of such information concerning a Holder is sought
in or by a court or governmental body of competent jurisdiction or through other means, give prompt written notice to the Holder
and allow the Holder, at the Holder’s expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective
order for, such information.


 


j.       If
necessary, the Company shall use its best efforts to secure designation and quotation of all the Registrable Securities covered
by any Registration Statement on the Principal Market. If, despite the Company’s best efforts, the Company is unsuccessful
in satisfying this obligation, it shall use its best efforts to cause all the Registrable Securities covered by any Registration
Statement to be listed on each other national securities exchange and automated quotation system, if any, on which securities of
the same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted
under the rules of such exchange or system. If, despite the Company’s best efforts, the Company is unsuccessful in satisfying
its obligation in this Section, it will use its best efforts to secure the inclusion for quotation with Pink Sheets, LLC. The Company
shall pay all fees and expenses in connection with satisfying its obligation under this Section 3(j).


 


k.       The
Company shall cooperate with the Holder to facilitate the timely preparation and delivery of certificates (not bearing any restrictive
legend) representing the Registrable Securities to be offered pursuant to a Registration Statement and enable such certificates
to be in such denominations or amounts, as the case may be, as the Holder may reasonably request and registered in such names of
the Persons who shall acquire such Registrable Securities from the Holder, as the Holder may request.


 


l.       The
Company shall provide a transfer agent for all the Registrable Securities not later than the Effective Date of the first Registration
Statement filed pursuant hereto.


 


m.     If
requested by the Holder, the Company shall (i) as soon as reasonably practical, incorporate in a prospectus supplement or post-effective
amendment such information as Holder reasonably determines should be included therein relating to the sale and distribution of
Registrable Securities, including, without limitation, information with respect to the Note of the Registrable Securities to be
sold in such Note; (ii) make all required filings of such prospectus supplement or post-effective amendment as soon as notified
of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments
to any Registration Statement if reasonably requested by Holder.


 


 


 






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n.       The
Company shall use its best efforts to cause the Registrable Securities covered by the applicable Registration Statement to be registered
with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such Registrable
Securities.


 


o.       The
Company shall make available to the Holder as soon as reasonably practical, but not later than ninety (90) calendar days after
the close of the period covered thereby, an earnings statement (in form complying with the provisions of Rule 158 under the Securities
Act) covering a 12-month period beginning not later than the first day of the Company’s fiscal quarter next following the
effective date of any Registration Statement. Filing via EDGAR shall constitute delivery.


 


p.       The
Company shall otherwise use its best efforts to comply with all applicable rules and regulations of the SEC in connection with
any registration hereunder.


 


q.       Within
five (5) business days after the Registration Statement which includes Registrable Securities is declared effective by the SEC,
the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable
Securities, with copies to the Holder, confirmation that such Registration Statement has been declared effective by the SEC in
the form attached hereto as Exhibit A.


 


r.       After
the SEC declares the Registration Statement cleared of all comments and the Company’s acceptance of the effectiveness of
the Registration Statement, the Company shall file a prospectus covering the resale of the Shares (the “Prospectus”)
within five (5) trading days.


 


s.       The
Company shall take all other reasonable actions necessary to expedite and facilitate disposition by the Holder of the Registrable
Securities pursuant to a Registration Statement.


 


t.       In
addition to the obligation to register the Registerable Securities under a Registration Statement hereunder, so long as any amounts
remain outstanding under the Note or the Warrants, Holder shall also have the right to obtain any unallocated shares under any
outstanding effective registration statement of the Company for any conversions under the Note or exercises of any Warrant. The
Company shall first offer allocation of any unallocated shares to Holder before allocating them to any other person. Further, any
Registered Securities offered by the Company, shall first be made to the Holder. Holder shall have five (5) business days to either
accept the offer of Registered Securities, in whole or in part, or to decline such offer. The Company shall be able to offer and
sell any number of Registered Securities offered to, but not purchased by, Holder after five (5) business days.


 


4.       
Obligations
Of The Holder.


 


a.       At
least five (5) calendar days prior to the first anticipated filing date of a Registration Statement, the Company shall notify the
Holder in writing of the information the Company requires from the Holder. The Holder covenants and agrees that, in connection
with any resale of Registrable Securities by it pursuant to a Registration Statement, it shall comply with the “Plan of Distribution”
section of the current prospectus relating to such Registration Statement.


 


b.       The
Holder, by the Holder’s acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested
thereby in connection with the preparation and filing of any Registration Statement hereunder and in responding to SEC comments
in connection therewith.


 


c.       The
Holder agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section
3(f) hereof or the first sentence of Section 3(e) hereof, the Holder will immediately discontinue disposition of Registrable
Securities pursuant to any Registration Statement(s) covering such Registrable Securities until Holder’s receipt of the copies
of the supplemented or amended prospectus contemplated by Section 3(f) hereof or the first sentence of Section 3(e)
hereof.


 


 


 






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5.       
Expenses
Of Registration.


 


All expenses, other
than underwriting discounts and commissions, incurred in connection with registrations, filings or qualifications pursuant to Section
2 and Section 3 hereof, including, without limitation, all registration, listing and qualifications fees, printing and
accounting fees, and reasonable fees and disbursements of counsel for the Company shall be paid by, and are the sole obligation
of, the Company.


 


6.       
Indemnification.


 


In the event any Registrable
Securities are included in a Registration Statement under this Agreement:


 


a.       To
the fullest extent permitted by law, the Company will, and hereby agrees to, indemnify, hold harmless and defend the Holder of
the Registrable Securities, the directors, officers, partners, employees, agents, representatives of, and each Person, if any,
who controls Holder within the meaning of the Securities Act or the Exchange Act) (each, an “Indemnified Person”),
against any losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, attorneys’ fees, amounts paid
in settlement or expenses, joint or several (collectively, “Claims”), incurred in investigating, preparing or
defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court
or governmental, administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified
party is or may be a party thereto (Indemnified Damages”), to which any of them may become subject insofar as such
Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any
untrue statement or alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment thereto
or in any filing made in connection with the qualification of the Note under the securities or other “blue sky” laws
of any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”), or the omission or alleged
omission to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances
under which the statements therein were made, not misleading; (ii) any untrue statement or alleged untrue statement of a material
fact contained in the final prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement thereto
with the SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein,
in light of the circumstances under which the statements therein were made, not misleading; or (iii) any violation or alleged violation
by the Company of the Securities Act, the Exchange Act, any other law, including, without limitation, any state securities law,
or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities pursuant to a Registration Statement
(the matters in the foregoing clauses (i) through (iii) being, collectively, “Violations”). Subject to the restrictions
set forth in Section 6(c) hereof with respect to the number of legal counsel, the Company shall reimburse the Holder and
each such controlling person, promptly as such expenses are incurred and are due and payable, for any reasonable legal fees or
other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything
to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to a
Claim arising out of or based upon a Violation committed by any Indemnified Person or which occurs in reliance upon and in conformity
with information furnished in writing to the Company by any Indemnified Person expressly for use in connection with the preparation
of the Registration Statement or any such amendment thereof or supplement thereto, if such prospectus were timely made available
by the Company pursuant to Section 3(c) hereof; (ii) shall not be available to the extent such Claim is based on (a) a failure
of the Holder to deliver or to cause to be delivered the prospectus made available by the Company, or (b) the Indemnified Person’s
use of an incorrect prospectus despite being promptly advised in advance by the Company in writing not to use such incorrect prospectus;
and (iii) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent
of the Company, which consent shall not be unreasonably withheld. Such indemnity shall remain in full force and effect regardless
of any investigation made by or on behalf of the Indemnified Person and shall survive the resale of the Registrable Securities
by the Holder pursuant to the Registration Statement.


 


 


 


 


 






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b.       Promptly
after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action
or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party
shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying
party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to
the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of
the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified
Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its
own counsel with the fees and expenses to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained
by the indemnifying party, the representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying
party would be inappropriate due to actual or potential differing interests between such Indemnified Person or Indemnified Party
and any other party represented by such counsel in such proceeding. The indemnifying party shall pay for only one separate legal
counsel for the Indemnified Persons or the Indemnified Parties, as applicable, and such counsel shall be selected by the Holder,
if the Holder is entitled to indemnification hereunder, or the Company, if the Company is entitled to indemnification hereunder,
as applicable. The Indemnified Party or Indemnified Person shall cooperate fully with the indemnifying party in connection with
any negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying party all
information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or claim. The indemnifying
party shall keep the Indemnified Party or Indemnified Person fully apprised at all times as to the status of the defense or any
settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action, claim or
proceeding effected without its written consent, provided, however, that the indemnifying party shall not unreasonably withhold,
delay or condition its consent. No indemnifying party shall, without the consent of the Indemnified Party or Indemnified Person,
consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term
thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release from all liability
in respect to such Claim. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated to all
rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations relating to the
matter for which indemnification has been made. The failure to deliver written notice to the indemnifying party within a reasonable
time of the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified Person
or Indemnified Party under this Section 6, except to the extent that the indemnifying party is actually prejudiced in its
ability to defend such action.


 


c.       The
indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of
the investigation or defense, as and when bills are received or Indemnified Damages are incurred.


 


d.       The
indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party
or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject
to pursuant to the law.


 


7.       
Contribution.


 


To the extent any indemnification
by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with
respect to any amounts for which it would otherwise be liable under Section 6 hereof to the fullest extent permitted by
law; provided, however, that: (i) no contribution shall be made under circumstances where the maker would not have been liable
for indemnification under the fault standards set forth in Section 6 hereof; (ii) no seller of Registrable Securities guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution
from any seller of Registrable Securities who was not guilty of fraudulent misrepresentation; and (iii) contribution by any seller
of Registrable Securities shall be limited in amount to the net amount of proceeds received by such seller from the sale of such
Registrable Securities.


 


 


 


 






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8.       
Reports
Under The Exchange Act. 


 


With a view to making
available to the Holders the benefits of Rule 144 under the Securities Act or any similar rule or regulation of the SEC that may
at any time permit the Investors to sell securities of the Company to the public without registration (“Rule 144”)
the Company agrees to:


 


a.       make
and keep public information available, as those terms are understood and defined in Rule 144;


 


b.       file
with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange
Act so long as the Company remains subject to such requirements and the filing of such reports and other documents as are required
by the applicable provisions of Rule 144; and


 


c.       furnish
to the Holder so long as the Holder owns Registrable Securities, promptly upon request, (i) a written statement by the Company
that it has complied with the reporting requirements of Rule 144, the Securities Act and the Exchange Act, (ii) a copy of the most
recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other
information as may be reasonably requested to permit the Investors to sell such securities pursuant to Rule 144 without registration.


 


9.       
No
Assignment Of Registration Rights.


 


The registration rights
and obligations under this Agreement shall not be assignable.


 


10.       
Amendment
Of Registration Rights.


 


Provisions of this
Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively
or prospectively), only with the written consent of both the Company and the Holder. Any amendment or waiver effected in accordance
with this Section 10 shall be binding upon the Holder and the Company. No such amendment shall be effective to the extent
that it applies to less than all of the Holders of the Registrable Securities. No consideration shall be offered or paid to any
Person to amend or consent to a waiver or modification of any provision of any of this Agreement unless the same consideration
also is offered to all of the Parties to this Agreement.


 


11.       
Miscellaneous.


 


a.       Any
notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be
in writing and will be deemed to have been delivered (i) upon receipt, when delivered personally; (ii) upon receipt, when sent
by facsimile (provided a confirmation of transmission is mechanically or electronically generated and kept on file by the sending
Party); or (iii) one (1) day after deposit with a nationally recognized overnight delivery service, in each case properly addressed
to the Party to receive the same. The addresses for such communications are as set forth on the signature page to this Agreement.
Each Party shall provide five (5) business days prior notice to the other Party of any change in address, phone number or facsimile
number.


 


b.       Failure
of any Party to exercise any right or remedy under this Agreement or otherwise, or delay by a Party in exercising such right or
remedy, shall not operate as a waiver thereof.


 


c.        This
Agreement and all acts and transactions pursuant hereto and the rights and obligations of the Parties hereto shall be governed,
construed and interpreted in accordance with the laws of the State of New York, without giving effect to principles of conflicts
of law. The Parties submit to the jurisdiction of the state of New York and federal courts in the borough of Manhattan, New York,
and agree that any legal action or proceeding relating to this Agreement may be brought in those courts.


 


 


 


 






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d.       This
Agreement and the Securities Purchase Agreement constitute the entire set of agreements among the Parties hereto with respect to
the subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth
or referred to herein or in the Securities Purchase Agreement.


 


e.       This
Agreement and the Securities Purchase Agreement supersede all prior agreements and understandings among the Parties hereto with
respect to the subject matter hereof and thereof.


 


f.       The
headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.


 


g.       This
Agreement may be executed in two or more counterparts, all of which taken together shall constitute one instrument. Execution and
delivery of this Agreement by exchange of facsimile copies bearing the facsimile signature of a Party shall constitute a valid
and binding execution and delivery of this Agreement by such Party. Such facsimile copies shall constitute enforceable original
documents.


 


h.       Each
Party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the other Party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.


 


i.       All
consents and other determinations to be made by the Holder pursuant to this Agreement shall be made, unless otherwise specified
in this Agreement, by the Holder holding a majority of the Registrable Securities.


 


j.       The
language used in this Agreement will be deemed to be the language chosen by the Parties to express their mutual intent and no rules
of strict construction will be applied against any Party.


 


k.       The
Company hereby represent and warrants to the Holder that: (i) it has voluntarily entered into this Agreement of its own freewill,
(ii) it is not entering into this Agreement under economic duress, (iii) the terms of this Agreement are reasonable and fair to
the Company, and (iv) the Company has had independent legal counsel of its own choosing review this Agreement, advise the Company
with respect to this Agreement, and represent the Company in connection with its entering into this Agreement.


 


l.       Notwithstanding
anything in this Agreement to the contrary, the Parties hereto hereby acknowledge and agree to the following: (i) the Holder makes
no representations or covenants that it will not engage in trading in the securities of the Company; (ii) the Company has not and
shall not provide material non-public information to the Holder unless prior thereto the Holder shall have executed a written agreement
regarding the confidentiality and use of such information; and (iii) the Company understands and confirms that the Holder will
be relying on the acknowledgements set forth in clauses (i) through (iii) above if the Holder effects any transactions in the securities
of the Company.


 


12.       Waiver.


 


The Holder’s
delay or failure at any time or times hereafter to require strict performance by Company of any undertakings, agreements or covenants
shall not waive, affect, or diminish any right of the Holder under this Agreement to demand strict compliance and performance herewith.
Any waiver by the Holder of any breach under this Agreement (an “Event of Default”) shall not waive or affect
any other Event of Default, whether such Event of Default is prior or subsequent thereto and whether of the same or a different
type. None of the undertakings, agreements and covenants of the Company contained in this Agreement, and no Event of Default, shall
be deemed to have been waived by the Holder, nor may this Agreement be amended, changed or modified, unless such waiver, amendment,
change or modification is evidenced by an instrument in writing specifying such waiver, amendment, change or modification and signed
by the Holder.


 


13.       Payment
Of Liquidated Damages.


 


Any liquidated damages
or other fees incurred herein by the Company for failure to act in a timely manner shall be charged to the Purchase Amount, unless
specifically noted otherwise. The Holder reserves the rights to take payment of such amounts in cash or in Securities priced at
the Fixed Default Conversion Price.


 


[Signature Page Follows]


 


 






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IN WITNESS WHEREOF,
the Parties hereto have caused this Registration Rights Agreement to be duly executed on the day and year first above written.


 


	 	THE
COMPANY:
	 	 
	 	GROM SOCIAL ENTERPRISES., INC. 
	 	 
	 	 
	 	By:	/s/ Mel Leiner
	 	Name:	Mel
Leiner
	 	Title: 	Executive
Vice President
	 	Address:	2060
NW Boca Raton Boulevard #6
	 	 	Boca Raton,
Florida 33431
	 	 	 
	 	HOLDER:
	 	 
	 	FirstFire Global Opportunities Fund, LLC
	 	(entity name,
    if applicable)
	 	 	 
	 	 	 
	 	By:	/s/ Eli Fireman
	 	Name:	Eli Fireman
	 	Title:	Manager of FirstFire Capital Management, LLC, its Manager
	 	Address:	1040 1st
Avenue, Suite 190
	 	 	New York,
New York 10022




 


 


 


 


 


 


 


 


 


 


 


 


 


 



    	 	13	 



     


    

 


EXHIBIT A


 


FORM OF NOTICE OF EFFECTIVENESS


OF REGISTRATION STATEMENT


 


Date: __________


 


[TRANSFER AGENT]


 


Re:    Grom
Social Enterprises., Inc.


 


Ladies and Gentlemen:


 


We are counsel to Grom
Social Enterprises., Inc., a Florida corporation (the “Company”), and have represented the Company in connection
with that certain Securities Purchase Agreement (the “Securities Purchase Agreement”) entered into by and among the
Company and FirstFire Global Opportunities Fund, LLC (the “Holder”), pursuant to which the Company has agreed to issue
to the Holder, a Convertible Promissory Note and Warrants (together the “Securities”) on the terms and conditions
set forth in the Securities Purchase Agreement. Pursuant to the Securities Purchase Agreement, the Company also has entered into
a Registration Rights Agreement with the Holder (the “Registration Rights Agreement”) pursuant to which the
Company agreed, among other things, to register the Registrable Securities (as defined in the Registration Rights Agreement), including
the shares of Securities issued or issuable under the Securities Purchase Agreement under the Securities Act of 1933, as amended
(the “Securities Act”). In connection with the Company’s obligations under the Registration Rights Agreement,
on ____________ ___, 20__, the Company filed a Registration Statement on Form ________ (File No. 333-________) (the “Registration
Statement”) with the United States Securities and Exchange Commission (the “SEC”) relating to the
Registrable Securities which names the Holder as a selling shareholder thereunder.


 


In connection with
the foregoing, we advise you that the Registration Statement has become effective under the Securities Act at [enter the time
of effectiveness] on [enter the date of effectiveness] and to the best of our knowledge, after telephonic inquiry of a member
of the SEC’s staff, no stop order suspending its effectiveness has been issued and no proceedings for that purpose are pending
before, or threatened by, the SEC and the Registrable Securities are available for resale under the Securities Act pursuant to
the Registration Statement.


 


Very truly yours,


 


[Company Counsel]


 


By: _________________________________________


 



 


 


 


 


 


 


 


 


 


 


 


 


 






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