Exhibit 10.5


 


AMENDED
AND RESTATED REGISTRATION RIGHTS AGREEMENT


 


This Amended and Restated
Registration Rights Agreement (this “Agreement”) is made and entered into as of October 19, 2017, by and among
The Lovesac Company, a Delaware corporation (the “Company”), the investors set forth on Exhibit A of the Subscription
Agreement (the “A-2 Investors”) and the investors as set forth on Exhibit A of the A/A-1 Subscription Agreement
(as defined below) (the “A/A-1 Investors,” collectively with the A-2 Investors, the “Investors”
and, each individually, an “Investor”).


 


WHEREAS, the Company
and the A/A-1 Investors are parties to that certain Subscription Agreement, pursuant to which the A/A-1 Investors purchased shares
of Series A Preferred Stock (as defined below) or Series A-1 Preferred Stock (as defined below) of the Company (the “A/A-1
Subscription Agreement”);


 


WHEREAS, in connection
with the A/A-1 Subscription Agreement, the A/A-1 Investors entered into that certain Registration Rights Agreement (the “Original
Agreement”) pursuant to which the A/A-1 Investors were granted certain registration rights;


 


WHEREAS, the Company
and the A-2 Investors are parties to that certain Subscription Agreement, dated October 19, 2017 (the “Subscription Agreement”),
pursuant to which the Investor is purchasing shares of Series A-2 Preferred Stock (as defined below) of the Company; and


 


WHEREAS, in connection
with the consummation of the transactions contemplated by the Subscription Agreement, and pursuant to the terms of the Subscription
Agreement and the A/A-1 Subscription Agreement, the parties hereto desire to amend and restate the Original Agreement in order
to grant certain registration rights to the A-2 Investors on the same terms and conditions as the A/A1 Investors, as set forth
below.


 


NOW, THEREFORE, in
consideration of the foregoing and the mutual and dependent covenants hereinafter set forth, the parties hereto agree as follows:


 


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


 


“Agreement” has the meaning set
forth in the preamble.


 


“Commission”
means the Securities and Exchange Commission or any other federal agency administering the Securities Act and the Exchange Act
at the time.


 


“Common Stock”
means the common stock, par value $0.00001 per share, of the Company and any other shares of stock issued or issuable with respect
thereto (whether by way of a change in par value, stock dividend or stock split or in exchange for or upon conversion of such
shares or otherwise in connection with a combination of shares, distribution, recapitalization, merger, consolidation, other corporate
reorganization or other similar event with respect to the Common Stock).


 



    	 		 



     


    

 





“Company” has the meaning set forth in the preamble and includes
the Company’s successors by merger, acquisition, reorganization or otherwise.


 


“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.


 


“Governmental
Authority” means any federal, state, local or foreign government or political subdivision thereof, or any agency or instrumentality
of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory authority
or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority have the
force of law), or any arbitrator, court or tribunal of competent jurisdiction.


 


“Holder”
means the Investor, or any assignee of an Investor holding Series A Preferred Stock, Series A-1 Preferred Stock and/or Series A-2
Preferred Stock.


 


“Investor(s)” has the meaning set
forth in the preamble.


 


“Person”
means an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated
organization, trust, association or other entity.


 


“Prospectus”
means the prospectus or prospectuses included in any registration statement (including, without limitation, a prospectus that includes
any information previously omitted from a prospectus filed as part of an effective registration statement in reliance on Rule 430A
under the Securities Act or any successor rule thereto), as amended or supplemented by any prospectus supplement, with respect
to the terms of the offering of any portion of the Registrable Securities covered by such registration statement and by all other
amendments and supplements to the prospectus, including post-effective amendments and all material incorporated by reference in
such prospectus or prospectuses.


 


“Registrable
Securities” means (a) the shares of Common Stock beneficially owned by the Investors upon conversion of the Series
A Preferred Stock, the Series A-1 Preferred Stock and/or the Series A-2 Preferred Stock or upon exercise of the Warrants, and
(b) any shares of Common Stock issued or issuable with respect to any shares described in subsection (a) above by way of a
stock dividend or stock split or in exchange for or upon conversion of such shares or otherwise in connection with a
combination of shares, distribution, recapitalization, merger, consolidation, other reorganization or other similar event
with respect to the Common Stock (it being understood that, for purposes of this Agreement, a Person shall be deemed to be a
Holder of Registrable Securities whenever such Person has the right to then acquire or obtain from the Company any
Registrable Securities, whether or not such acquisition has actually been effected). As to any particular Registrable
Securities, such securities shall cease to be Registrable Securities when (i) the Commission has declared a registration
statement covering such securities effective and such securities have been disposed of pursuant to such effective
registration statement, (ii) such securities are sold under circumstances in which all of the
applicable conditions of Rule 144 under the Securities Act are met, or (iii) such securities have ceased to be
outstanding.


 






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“Rule 144” means Rule 144 under
the Securities Act or any successor rule thereto.


 


“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.


 


“Selling Expenses”
means all underwriting discounts and selling commissions applicable to the sale of Registrable Securities.


 


“Series A
Preferred Stock” means the Series A Preferred Stock of the Company, issued in connection with the A/A-1 Subscription
Agreement.


 


“Series A-1
Preferred Stock” means the Series A-1 Preferred Stock of the Company, issued in connection with the A/A-1 Subscription
Agreement.


 


“Series A-2
Preferred Stock” means the Series A-2 Preferred Stock of the Company, issued in connection with the Subscription Agreement.


 


“Subscription Agreement” has the
meaning set forth in the recitals.


 


Capitalized terms used
herein without definition shall have the meanings set forth in the Subscription Agreement.


 






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2. Piggyback Registration. If
the Company proposes to file an offering statement or registration statement under the Securities Act with respect to an
offering for its own account or for the account of any other securityholder(s) of the Company of any class of its equity
securities (other than (i) an offering statement or registration statement relating to an initial public offering of the
Company on Form 1-A or Form S-1 (or any successor forms) involving a primary offering by the Company and including no
securities for the account of other securityholders of the Company, (ii) a registration statement on Form S-8 (or any
successor form) or any other registration statement relating solely to employee benefit plans, (iii) a registration statement
on Form S-4 (or any successor form) or filed in connection with an exchange offer, or a transaction to which Rule 145 (or any
successor provision) under the Securities Act applies, or (iv) an offering of newly issued securities of the Company being
made on a pro rata basis solely to the Company’s existing shareholders), then the Company shall in each case give
written notice of such proposed filing to the Holder as soon as practicable (but no later than thirty (30) days) before the
anticipated filing date, and such notice shall offer each Holder the opportunity to register such number of shares of
Registrable Securities as such Holder may request. Each Holder desiring to have Registrable Securities included in such
registration statement shall so advise the Company in writing within ten (10) business days after the date on which the
Company’s notice is so given, setting forth the number of shares of Registrable Securities for which registration is
requested. If the Company’s offering is to be an underwritten offering, the Company shall, subject to the further provisions
of this Agreement, use its reasonable best efforts to cause the managing underwriter or underwriters to permit the Holders
of the Registrable Securities requested to be included in the registration for such offering to include such Registrable
Securities in such offering on the same terms and conditions as any similar securities of the Company included therein. The
right of each Holder to registration pursuant to this Section 2 in connection with an underwritten offering by the Company
shall, unless the Company otherwise assents, be conditioned upon such Holder’s participation as a seller in such
underwritten offering and its execution of an underwriting agreement in customary form with the managing underwriter or
underwriters selected by the Company. Notwithstanding the foregoing, if the managing underwriter or underwriters of such
offering deliver a written opinion to the Company that because the size of the offering that the Company, the Holders and any
other Persons or entities intend to make, the success of the offering would be materially and adversely affected by inclusion
of the Registrable Securities requested to be included, then the number of shares to be registered and offered for the
accounts of the Company and the Holders shall be reduced pro rata on the basis of the number of securities requested by the
Company and such Holders to be registered and offered to the extent necessary to reduce the total amount of securities to be
included in such offering to the amount recommended by such managing underwriter or underwriters (provided that if securities
were also contemplated to be registered and offered for the account of other Persons or entities in addition to the Company
and Holders, and the Holders are unable to sell all the securities requested by them to be included in the offering, such
securities of such other Persons shall be excluded from the offering).


 


3. Short-Form Demand Registration.
Beginning one (1) year after an initial public offering of the Company (including, without limitation, an initial public offering
under Regulation A), the Company shall use its reasonable best efforts to qualify and remain qualified to register the offer and
sale of securities under the Securities Act pursuant to a registration statement on Form S-3 or any similar short-form registration
form or any successor form. At such time as the Company shall have qualified for the use of a registration statement on Form S-3
or any similar short-form registration form or any successor form thereto, the Holders of Registrable Securities shall have the
right to request an unlimited number of registrations under the Securities Act of all or any portion of their Registrable Securities
pursuant to a registration statement on Form S-3 or any similar or successor short-form registration statement (each, a “Short-Form
Demand Registration”). Each request for a Short-Form Demand Registration shall specify the number of Registrable Securities
requested to be included in the Short-Form Demand Registration. Upon receipt of any such request, the Company shall promptly (but
in no event later than ten (10) business days following receipt thereof) deliver notice of such request to all other Holders of
Registrable Securities who shall then have ten (10) business days from the date such notice is given to notify the Company in
writing of their desire to be included in such registration. The Company shall prepare and file with the Commission a registration
statement on Form S-3 or any successor form thereto covering all of the Registrable Securities that the Holders thereof have requested
to be included in such Short-Form Demand Registration within 30 days after the date on which the initial request is given and
shall use its reasonable best efforts to cause such registration statement to be declared effective by the Commission as soon
as practicable thereafter. Registrable Securities registered pursuant to a Short-Form Demand Registration may be sold or disposed
of in any type of offering permitted by Form S-3 or such other applicable form, including, without
limitation, pursuant to a delayed or continuous offering, in a spot offering, in an underwritten offering or any in other manner
then permitted by the form.


 






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4. Lock-up Agreements. Each Holder
of Registrable Securities hereby agrees that, in connection with an underwritten registered offering of the Company in which such
Holder participates as a selling stockholder pursuant to this Agreement, unless not required by the managing underwriter or lead
placement agent of the registered offering, it will enter into a lockup agreement in customary form and subject to customary exceptions
pursuant to which such Holder will agree that it will not, during the period commencing on the date of the final prospectus or
offering circular relating to a registered offering and ending on the date specified by the managing underwriter or lead placement
agent, not to exceed 90 days from the date of the final prospectus or offering circular relating to the registered offering (unless
reasonably requested by the managing underwriter or lead placement agent in order to accommodate regulatory restrictions on (i)
the publication or other distribution of research reports, and (ii) analyst recommendations and opinions, pursuant to any applicable
the restrictions contained in FINRA Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or amendments thereto):
(a) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell,
grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any shares of Registrable
Securities held immediately prior to the effectiveness of the registration statement or offering statement for the a registered
offering; or (b) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences
of ownership of the Registrable Securities, whether any such transaction described in clause (a) or (b) above is to be settled
by delivery of Registrable Securities or other securities, in cash or otherwise. The foregoing provisions of this Section 4
shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement. The underwriters, placement
agents and selling agents, if any, in connection with a registered offering are intended third-party beneficiaries of this Section
4 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. Each Purchaser
agrees to execute such agreements as may be reasonably requested by the underwriters, placement agents or selling agents in the
a registered offering that are consistent with this Section 4 or that are necessary to give further effect thereto, provided,
however, that the obligation of each Purchaser hereunder shall be conditioned on each officer, director and 5% beneficial holder
of the Company’s Common Stock entering into an agreement in substantially the same form in connection with the a registered
offering.


 






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5. Registration Procedures. If and
whenever the Holders of Registrable Securities have requested pursuant to Section 2 or Section 3 that any Registrable
Securities be registered, the Company shall use its reasonable best efforts to effect the registration of the offer and sale of
such Registrable Securities under the Securities Act in accordance with the intended method of disposition thereof, and pursuant
thereto the Company shall as soon as reasonably practicable and as applicable:


 


(a)
prepare
and file with the Commission a registration statement covering such Registrable Securities and use its reasonable best efforts
to cause such registration statement to be declared effective;


 


(b) prepare and file
with the Commission such amendments, post-effective amendments and supplements to such registration statement and the Prospectus
used in connection therewith as may be necessary to keep such registration statement effective for a period of not less than twelve
(12) months (or, in the case of a firm commitment underwritten offering, ninety (90) days), or if earlier, until all of such Registrable
Securities have been disposed of and to comply with the provisions of the Securities Act with respect to the disposition of such
Registrable Securities in accordance with the intended methods of disposition set forth in such registration statement;


 


(c) as soon as reasonably
practicable before filing such registration statement, Prospectus or amendments or supplements thereto with the Commission, furnish
to the Holder of such Registrable Securities copies of such documents proposed to be filed, which documents shall be subject to
the review, comment and approval of such Holder’s counsel;


 


(d) notify each selling
Holder of Registrable Securities, promptly after the Company receives notice thereof, of the time when such registration statement
has been declared effective or a supplement to any Prospectus forming a part of such registration statement has been filed with
the Commission;


 


(e) furnish to each selling
Holder of Registrable Securities such number of copies of the Prospectus included in such registration statement (including each
preliminary Prospectus) and any supplement thereto (in each case including all exhibits and documents incorporated by reference
therein), and such other documents as such Holder may reasonably request in order to facilitate the disposition of the Registrable
Securities owned by such seller;


 


(f) use its reasonable best
efforts to register or qualify such Registrable Securities under such other securities or “blue sky” laws of such
jurisdictions as any selling Holder reasonably requests and do any and all other acts and things which may be reasonably necessary
or advisable to enable such Holders to consummate the disposition in such jurisdictions of the Registrable Securities owned by
such Holders; provided, that the Company shall not be required to qualify generally to do business, subject itself to general
taxation or consent to general service of process in any jurisdiction where it would not otherwise be required to do so;


 


(g) notify the Holders
of Registrable Securities promptly of any request by the Commission for the amending or supplementing of such registration statement
or Prospectus or for additional information;


 


(h) cooperate with
the Holders of the Registrable Securities to facilitate the timely preparation and delivery of certificates representing the
Registrable Securities to be sold pursuant to such registration statement or Rule 144 free of any restrictive legends and
representing such number of shares of Common Stock and registered in such names as the Holders
of the Registrable Securities may reasonably request a reasonable period of time prior to sales of Registrable Securities
pursuant to such registration statement or Rule 144;


 






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(i) take no direct or indirect
action prohibited by Regulation M under the Exchange Act; provided, that, to the extent that any prohibition is applicable
to the Company, the Company will take all reasonable action to make any such prohibition inapplicable;


 


(j) otherwise use its
reasonable best efforts to take all other steps necessary to effect the registration of such Registrable Securities contemplated
hereby; and


 


(k) in connection with
an underwritten offering, the Company will enter into such customary agreements (including underwriting and lock-up agreements
in customary form) and take all such other customary actions as the Holders of such Registrable Securities or the managing underwriter
of such offering reasonably request in order to facilitate the intended disposition of the Registrable Securities.


 


6. Expenses. All expenses (other than Selling
Expenses of the Holders and other expenses of the Holders specified in the last sentence of this Section 6) incurred
by the Company in complying with its obligations pursuant to this Agreement and in connection with the registration and
disposition of Registrable Securities shall be paid by the Company, including, without limitation, all (i) registration and
filing fees (including, without limitation, any fees relating to filings required to be made with, or the listing of any
Registrable Securities on, any securities exchange or over-the-counter trading market on which the Registrable Securities are
listed or quoted); (ii) underwriting expenses (other than fees, commissions or discounts); (iii) expenses of any audits
incident to or required by any such registration; (iv) fees and expenses of complying with securities and “blue
sky” laws (including, without limitation, fees and disbursements of counsel for the Company in connection with
“blue sky” qualifications or exemptions of the Registrable Securities); (v) printing expenses; (vi) messenger,
telephone and delivery expenses; (vii) fees and expenses of the Company’s counsel and accountants; (viii) Financial
Industry Regulatory Authority, Inc. filing fees (if any): and (ix) reasonable fees and expenses of counsel for the Major
Investor (as defined in the Subscription Agreement). In addition, the Company shall be responsible for all of its internal
expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without
limitation, all salaries and expenses of its officers and employees performing legal or accounting duties) and the expense of
any annual audits. All Selling Expenses relating to the offer and sale of Registrable Securities registered under the
Securities Act by a Holder pursuant to this Agreement shall be borne and paid by such Holder. In addition, each Holder of
Registrable Securities shall be responsible for paying any stock transfer taxes applicable to the sale of Registrable
Securities by such Holder, and the fees and disbursements of counsel, if any, retained by such Holder (except for the
reasonable fees and disbursements of counsel for the Major Investor required to be paid by the Company pursuant to this Section 6).


 






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7. Indemnification.
(a) The Company shall indemnify and hold harmless, to the fullest extent permitted by law, each Holder of Registrable
Securities, such Holder’s officers, directors, managers, members, partners, stockholders and Affiliates, each
underwriter, broker or other Person acting on behalf of such Holder of Registrable Securities and each “controlling
person” (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), if any, who
controls any of the foregoing Persons, against all losses, claims, actions, damages, liabilities and expenses, joint or
several, to which any of the foregoing Persons may become subject under the Securities Act or otherwise, insofar as such
losses, claims, actions, damages, liabilities or expenses arise out of or are based upon any untrue or alleged untrue
statement of a material fact contained in any registration statement, Prospectus, preliminary Prospectus, free writing
prospectus (as defined in Rule 405 under the Securities Act or any successor rule thereto), information statement, offering
circular, test-the-waters materials or other offering materials or any amendment thereof or supplement thereto or any
omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not
misleading; and shall reimburse such Persons for any legal or other expenses reasonably incurred by any of them in connection
with investigating or defending any such loss, claim, action, damage or liability, except insofar as the same are caused by
or contained in any information furnished in writing to the Company by such Holder expressly for use therein. This
indemnity shall be in addition to any liability the Company may otherwise have.


 


(b) In connection with
any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in
writing such information as the Company reasonably requests for use in connection with any such registration statement or Prospectus
and, to the extent permitted by law, shall indemnify and hold harmless, the Company, each director of the Company, each officer
of the Company who shall sign such registration statement, each underwriter, broker or other Person acting on behalf of the Holders
of Registrable Securities and each “controlling person” (within the meaning of Section 15 of the Securities Act and
Section 20 of the Exchange Act) who controls any of the foregoing Persons against any losses, claims, actions, damages, liabilities
or expenses resulting from any untrue or alleged untrue statement of material fact contained in the registration statement, Prospectus,
preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule thereto),
information statement or offering circular or any amendment thereof or supplement thereto or any omission or alleged omission
of a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading, but only to the extent that such untrue statement or omission is contained in any information
so furnished in writing by such Holder; provided, that the obligation to indemnify shall be several, not joint and several,
for each Holder and shall not exceed an amount equal to the net proceeds (after underwriting fees, commissions or discounts) actually
received by such Holder from the sale of Registrable Securities pursuant to such registration statement. This indemnity shall
be in addition to any liability the selling Holder may otherwise have.


 






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(c) Promptly
after receipt by an indemnified party of notice of the commencement of any action involving a claim referred to in this Section
7, such indemnified party shall, if a claim in respect thereof is made against an
indemnifying party, give written notice to the latter of the commencement of such action. The failure of any indemnified
party to notify an indemnifying party of any such action shall not (unless such failure shall have a material adverse effect
on the indemnifying party) relieve the indemnifying party from any liability in respect of such action that it may have to
such indemnified party hereunder. In case any such action is brought against an indemnified party, the indemnifying party
shall be entitled to participate in and to assume the defense of the claims in any such action that are subject or
potentially subject to indemnification hereunder, jointly with any other indemnifying party similarly notified to the extent
that it may wish, with counsel reasonably satisfactory to such indemnified party, and after written notice from the
indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall
not be responsible for any legal or other expenses subsequently incurred by the indemnified party in connection with the
defense thereof; provided, that, if (i) any indemnified party shall have reasonably concluded that there may be one or more
legal or equitable defenses available to such indemnified party which are additional to or conflict with those available to
the indemnifying party, or that such claim or litigation involves or could have an effect upon matters beyond the scope of
the indemnity provided hereunder, or (ii) such action seeks an injunction or equitable relief against any indemnified party
or involves actual or alleged criminal activity, the indemnifying party shall not have the right to assume the defense
of such action on behalf of such indemnified party without such indemnified party’s prior written consent (but, without
such consent, shall have the right to participate therein with counsel of its choice) and such indemnifying party shall
reimburse such indemnified party and any “controlling person” of such indemnified party for that portion of the
fees and expenses of any counsel retained by the indemnified party which is reasonably related to the matters covered by the
indemnity provided hereunder. If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim,
it shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such
indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party a conflict of
interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim. In
such instance, the conflicting indemnified parties shall have a right to retain one separate counsel, chosen by the Holders
of a majority of the Registrable Securities included in the registration, at the expense of the indemnifying
party.


 






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(d) If the
indemnification provided for hereunder is held by a court of competent jurisdiction to be unavailable to an indemnified party
with respect to any loss, claim, damage, liability or action referred to herein, then the indemnifying party, in lieu of
indemnifying such indemnified party hereunder, shall contribute to the amounts paid or payable by such indemnified party as a
result of such loss, claim, damage, liability or action in such proportion as is appropriate to reflect the relative fault of
the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or
omissions which resulted in such loss, claim, damage, liability or action as well as any other relevant equitable
considerations; provided, that the maximum amount of liability in respect of such contribution shall be limited, in
the case of each Holder of Registrable Securities, to an amount equal to the net proceeds (after underwriting fees,
commissions or discounts) actually received by such seller from the sale of Registrable Securities
effected pursuant to such registration. The relative fault of the indemnifying party and of the indemnified party shall be
determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the
indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. The parties agree that it would not be just and equitable if contribution pursuant hereto
were determined by pro rata allocation or by any other method or allocation which does not take account of the equitable
considerations referred to herein. No Person guilty or liable of fraudulent misrepresentation within the meaning of Section
11(f) of the Securities Act shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation.


 


8. Participation in Underwritten
Registrations. No Person may participate in any registration hereunder which is underwritten unless such Person (a)
agrees to sell such Person’s securities on the basis provided in any underwriting arrangements on customary terms
approved by the Person or Persons entitled hereunder to approve such arrangements and (b) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements and other documents in customary form reasonably
required under the terms of such underwriting arrangements.


 


9. Rule 144 Compliance. With
a view to making available to the Holders of Registrable Securities the benefits of Rule 144 and any other rule or regulation
of the Commission that may at any time permit a Holder to sell securities of the Company to the public without registration,
the Company shall:


 


(a) make
and keep public information available, as those terms are understood and defined in Rule 144, at all times after the Registration
Date;


 


(b) use reasonable
best efforts to file with the Commission in a timely manner all reports and other documents required of the Company under the Securities
Act and the Exchange Act, at any time after the Registration Date; and


 


(c) furnish
to any Holder so long as the Holder owns Registrable Securities, promptly upon request, a written statement by the Company as to
its compliance with the reporting requirements of Rule 144 and of the Securities Act and the Exchange Act, a copy of the most recent
annual or quarterly report of the Company, and such other reports and documents so filed or furnished by the Company as such Holder
may reasonably request in connection with the sale of Registrable Securities without registration.


 


10. Termination. This Agreement shall
terminate and be of no further force or effect when there shall no longer be any Registrable Securities outstanding; provided,
that the provisions of Section 6 and Section 7 shall survive any such termination.


 






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11. Notices. All notices,
requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to
have been given (a) when delivered by hand (with written confirmation of receipt); (b) when
received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by
facsimile or e-mail of a PDF document (with confirmation of transmission) if sent during normal business hours of the
recipient, and on the next Business Day if sent after normal business hours of the recipient; or (d) on the third (3rd) day
after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications must
be sent to the respective parties at the addresses indicated in the Subscription Agreement.


 


12. Entire Agreement.
This Agreement, together with the Subscription Agreement and other Transaction Documents (as defined in the Subscription Agreement),
constitutes the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein,
and supersedes all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject
matter. Notwithstanding the foregoing, in the event of any conflict between the terms and provisions of this Agreement and those
of the Subscription Agreement or any other Transaction Document with respect to or relating to the registration rights provided
for herein, the terms and conditions of this Agreement shall control.


 


13. Successor and Assigns. This Agreement
shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns.
The Company may assign this Agreement at any time in connection with a sale or acquisition of the Company, whether by merger,
consolidation, sale of all or substantially all of the Company’s assets, or similar transaction, without the consent of
the Investor; provided, that the successor or acquiring Person agrees in writing to assume all of the Company’s rights
and obligations under this Agreement.


 


14. No Third-Party Beneficiaries. This
Agreement is for the sole benefit of the parties hereto and their respective successors and permitted assigns and nothing herein,
express or implied, is intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy of any
nature whatsoever, under or by reason of this Agreement; provided, however, the parties hereto hereby acknowledge that
the Persons set forth in Section 7 are express third-party beneficiaries of the obligations of the parties hereto set forth
in Section 7.


 


15. Headings. The headings
in this Agreement are for reference only and shall not affect the interpretation of this Agreement.


 


16. Amendment,
Modification and Waiver. The provisions of this Agreement may only be amended, modified, supplemented or waived with the
prior written consent of the Company and the Holders of a majority of the then outstanding Registrable Shares; provided,
however, that any amendment that would affect any Holder of Registrable Securities then outstanding (solely in such
Holder’s capacity as a Holder of Registrable Securities and not otherwise) in a disproportionately material or adverse
manner shall be effected only with the prior written consent of such Holder. No waiver by any party or parties shall operate
or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver,
whether of a similar or different character, and whether occurring before or after that waiver. Except as otherwise set forth
in this Agreement, no failure to exercise, or delay in exercising, any right, remedy, power or privilege arising
from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right,
remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right,
remedy, power or privilege.


 






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17. Severability. If
any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term
or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable,
the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as
closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally
contemplated to the greatest extent possible.


 


18. Remedies. Each Holder
of Registrable Securities, in addition to being entitled to exercise all rights granted by law, including recovery of damages,
shall be entitled to specific performance of its rights under this Agreement. The Company acknowledges that monetary damages would
not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Agreement and the Company
hereby agrees to waive the defense in any action for specific performance that a remedy at law would be adequate.


 


19. Governing Law; Submission
to Jurisdiction. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware
without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction).
Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby may be
instituted in the federal courts of the United States or the courts of the State of Delaware, and each party irrevocably submits
to the exclusive jurisdiction of such courts in any such suit, action or proceeding. Service of process, summons, notice or other
document by mail to such party’s address set forth herein shall be effective service of process for any suit, action or other
proceeding brought in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of
any suit, action or any proceeding in such courts and irrevocably waive and agree not to plead or claim in any such court that
any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.


 


20. Waiver of Jury Trial.
Each party acknowledges and agrees that any controversy which may arise under this Agreement is likely to involve complicated
and difficult issues and, therefore, each such party irrevocably and unconditionally waives any right it may have to a trial by
jury in respect of any legal action arising out of or relating to this Agreement or the transactions contemplated hereby. Each
party to this Agreement certifies and acknowledges that (a) no representative of any other party has represented, expressly or
otherwise, that such other party would not seek to enforce the foregoing waiver in the event of a legal action, (b) such party
has considered the implications of this waiver, (c) such party makes this waiver voluntarily, and (d) such party has been induced
to enter into this Agreement by, among other things, the mutual waivers and certifications in this Section 20.


 






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21. Counterparts. This Agreement
may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall be deemed to
be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission
shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.


 


22. No Conflicting Rights. As of
the date of this Agreement, the Company has not granted registration rights to any Person other than the registration rights provided
for by this Agreement to the Holders. The Company shall not (a) grant any registration rights to third parties which are more favorable
than or inconsistent with the rights granted hereunder, or (b) enter into any agreement, take any action, or permit any change
to occur, with respect to its securities that violates or subordinates the rights expressly granted to the Holders of Registrable
Securities in this Agreement. The Company agrees that in no event will the Company effect, or permit to be effected, an initial
public offering of the Company’s business through any parent or subsidiary of the Company or any other entity other than
the Company.


 


23. Further Assurances. Each of
the parties to this Agreement shall, and shall cause their affiliates to, execute and deliver such additional documents, instruments,
conveyances and assurances and take such further actions as may be reasonably required to carry out the provisions hereof and to
give effect to the transactions contemplated hereby.


 


[SIGNATURE PAGE FOLLOWS]


 






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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
first written above.


 





	COMPANY	 
	 	 	 
	The Lovesac Company	 
	 	 
	By:	/s/ Shawn Nelson	 
	Name:	Shawn Nelson	 
	Title:	Chief Executive Officer	 



 


INVESTORS


 


The Investors have executed a Subscription Booklet
with the Company which provides, among other things, that by executing the Subscription Booklet, each Investor is deemed to have
executed this Registration Rights Agreement in all respects.


 


 


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