Document:

EXHIBIT 10.3 

 

SECURITY PURCHASE AGREEMENT

 

This SECURITY PURCHASE
AGREEMENT (this “Agreement”), dated as of _______________________ is by and among SAFETY QUICK LIGHTING &
FANS CORP., a company duly organized and validly existing under the laws of Florida (“SQL” or the “Company”),
the holders of the Notes identified on the signature pages hereto (each, a “Purchaser” and collectively, the
“Purchasers”).

 

WHEREAS, the Company
and each of the Purchasers are parties to a Subscription Agreement for the purchase of Secured Convertible Promissory Notes (such
offering the “Note Offering”) (each a “Subscription Agreement” or “Purchase Agreement”),
that provides, subject to the terms and conditions thereof, for the issuance and sale by the Company to each of the Purchasers,
severally and not jointly, Notes and Warrants as more fully described in the Subscription Agreement; and

 

WHEREAS, to induce
each of the Purchasers to enter into the Purchase Agreement, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company has agreed to pledge and grant a security interest in the Collateral (as hereinafter
defined) as security for the Secured Obligations (as hereinafter defined). Accordingly, the parties hereto agree as follows:

 

Section 1.                  
Definitions. Each capitalized term used herein and not otherwise defined shall have the meaning assigned to such
term in the Subscription Agreement (or its Exhibits). In addition, as used herein:

 

“Accounts”
shall have the meaning ascribed thereto in Section 3(a) hereof.

 

“Agent”
shall mean a person or entity that is authorized to act for or represent the Note holders

 

“Notes”
shall mean the notes with an optional conversion feature issued to Purchasers in connection with the Note Offering.

 

“Business” shall mean the businesses from time
to time, now or hereafter, conducted by the Company and its subsidiaries.

 

“Collateral”
shall have the meaning ascribed thereto in Section 3 hereof.

 

“Copyright
Collateral” shall mean all Copyrights, whether now owned or hereafter acquired by the Company or any of its subsidiaries
that are associated with the Business.

 

“Copyrights”
shall mean all copyrights, copyright registrations and applications for copyright registrations, including those shown on Schedule
3 hereto, and, without limitation, all renewals and extensions thereof, the right to recover for all past, present and
future infringements thereof, and all other rights of any kind whatsoever accruing thereunder or pertaining thereto.

 

“Deposit
Accounts” shall have the meaning ascribed thereto in Section 3(g) hereof.

 

“Equipment”
shall have the meaning ascribed thereto in Section 3(e) hereof.

 

“Event
of Default” shall have the meaning ascribed thereto in Section 8 of the Notes.

    	 	 	 

    	 

    

“Excluded
Assets” means the collective reference to (a) any asset subject to a purchase money security interest (“PMSI
Assets”) in each case to the extent the grant by the Company of a security interest pursuant to this Agreement in the
Company’s right, title and interest in such PMSI Asset (i) is prohibited by legally enforceable provisions of any contract,
agreement, instrument or indenture governing such PMSI Asset, (ii) would give any other party to such contract, agreement, instrument
or indenture a legally enforceable right to terminate its obligations thereunder or accelerate the indebtedness evidenced thereby
or (iii) is permitted only with the consent of another party, if the requirement to obtain such consent is legally enforceable
and such consent has not been obtained; (b) Motor Vehicles the perfection of a security interest in which is excluded from the
Uniform Commercial Code in the relevant jurisdiction; and (c) the Capital Stock in any Foreign Subsidiary, to the extent (but only
to the extent) required to prevent the Collateral from including more than 65% of all capital stock of any Foreign Subsidiary of
the Company.

 

“Excluded
Collateral” shall mean (i) the assets of the Company which secure the Permitted Indebtedness, and (ii) any accounts receivable
and/or inventory sold or encumbered in connection with any accounts receivable and/or inventory financing, line of credit or factoring
arrangement, on commercially reasonable terms, as permitted under Section 5(c) of the Secured Notes (a “Permitted AR Line”).

 

“Foreign Subsidiary” shall mean any subsidiary
of the Company that is organized under the laws of a jurisdiction outside the United States.

 

“Instruments”
shall have the meaning ascribed thereto in Section 3(e) hereof.

 

“Intellectual Property” shall mean, collectively,
all Copyright Collateral, all Patent Collateral and all Trademark Collateral, together with (a) all inventions, processes, production
methods, proprietary information, know-how and trade secrets used or useful in the Business; (b) all licenses or user or other
agreements granted to the Company with respect to any of the foregoing, in each case whether now or hereafter owned or used including,
without limitation, the licenses or other agreements with respect to the Copyright Collateral, the Patent Collateral or the Trademark
Collateral; (c) all customer lists, identification of suppliers, data, plans, blueprints, specifications, designs, drawings, recorded
knowledge, surveys, manuals, materials standards, processing standards, catalogs, computer and automatic machinery software and
programs, and the like pertaining to the operation by the Company of the Business; (d) all sales data and other information relating
to sales now or hereafter collected and/or maintained by the Company that pertain to the Business; (e) all accounting information
which pertains to the Business and all media in which or on which any of the information or knowledge or data or records which
pertain to the Business may be recorded or stored and all computer programs used for the compilation or printout of such information,
knowledge, records or data; (f) all licenses, consents, permits, variances, certifications and approvals of governmental agencies
now or hereafter held by the Company pertaining to the operation by the Company and its Subsidiaries of the Business; and (g)
all causes of action, claims and warranties now or hereafter owned or acquired by the Company in respect of any of the items listed
above.

 

“Inventory”
shall have the meaning ascribed thereto in Section 3(c) hereof.

 

“Liens”
shall mean a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Motor
Vehicles” shall mean motor vehicles, tractors, trailers and other like property, whether or not the title thereto is
governed by a certificate of title or ownership.

 

“Patent
Collateral” shall mean all Patents, whether now owned or hereafter acquired by the Company or any of its subsidiaries
that are associated with the Business.

 

“Patents”
shall mean all patents and patent applications, including those shown on Schedule 3 hereto,
and, without limitation, the inventions and improvements described and claimed therein together with the reissues, divisions, continuations,
renewals, extensions and continuations-in-part thereof, all income, royalties, damages and payments now or hereafter due and/or
payable under and with respect thereto, including, without limitation, damages and payments for past or future infringements thereof,
the right to sue for past, present and future infringements thereof, and all rights corresponding thereto throughout the world.

    	 	 	 

    	 

    

“Permitted
Indebtedness” shall mean the Company’s existing indebtedness, liabilities and obligations as disclosed on Schedule
2.1 hereto and any future capitalized leases, purchase money indebtedness, the Notes, or any Permitted AR Line.

 

“Permitted
Liens” shall mean (i) the Company’s existing Liens as disclosed in Schedule 2.1
hereto, (ii) the security interests created by this Agreement, (iii) Liens of local or state authorities for franchise, real estate
or other like taxes, (iv) statutory Liens of landlords and liens of carriers, warehousemen, bailees, mechanics, materialmen and
other like Liens imposed by law, created in the ordinary course of business and for amounts not yet due, (v) tax Liens not yet
due and payable, (vi) Liens on accounts receivable and/or inventory securing a Permitted AR Line and (vii) existing or future Liens
which do not materially affect the value of the Company’s property and do not materially interfere with the use made and
proposed to be made of such property by the Company and the Subsidiaries or the Liens granted hereunder.

 

“PMSI Asset”
shall have the meaning ascribed thereto in the definition of Excluded Assets.

 

“Real Estate”
shall have the meaning ascribed thereto in Section 3(m) hereof.

 

“Secured Obligations” shall mean,
collectively, (a) the principal of and interest on the Notes issued or issuable (as applicable) by the Company and held by
the applicable Purchaser and all other amounts from time to time owing to such Purchasers by the Company under the Purchase
Agreement and the Notes and (b) all obligations of the Company to such Purchasers thereunder.

 

“Stock
Collateral” shall mean, collectively, the Collateral described in clauses (a) through (c) of Section 3 hereof and the
proceeds of and to any such property and, to the extent related to any such property or such proceeds, all books, correspondence,
credit files, records, invoices and other papers.

 

“Trademark Collateral” shall mean all Trademarks,
whether now owned or hereafter acquired by the Company or any of its subsidiaries, that are associated with the Business. Notwithstanding
the foregoing, the Trademark Collateral does not and shall not include any Trademark which would be rendered invalid, abandoned,
void or unenforceable by reason of its being included as part of the Trademark Collateral.

 

“Trademarks”
shall mean all trade names, trademarks and service marks, logos, trademark and service mark registrations, and applications for
trademark and service mark registrations, including those shown on Schedule 3 hereto, and,
without limitation, all renewals of trademark and service mark registrations, all rights corresponding thereto throughout the world,
the right to recover for all past, present and future infringements thereof, all other rights of any kind whatsoever accruing thereunder
or pertaining thereto, together, in each case, with the product lines and goodwill of the business connected with the use of, and
symbolized by, each such trade name, trademark and service mark.

 

Uniform
Commercial Code” shall mean the Uniform Commercial Code as in effect in the State of New York from time to time.

 

Section 2.                     
Representations and Warranties. The Company represents and warrants to each of the Purchasers that:

 

	a.		except as set forth on Schedule 4 the Company
is the sole beneficial owner of the Collateral and, subject to the existing note payable to Signature Bank in an amount not to
exceed $620,000, no Lien exists or will exist upon any Collateral at any time (and, with respect to the Stock Collateral, no right
or option to acquire the same exists in favor of any other Person), except for Permitted Liens and the pledge and security interest
in favor of each of the Purchasers created or provided for herein which pledge and security interest will constitute a first priority
perfected pledge and security interest in and to all of the Collateral (other than (i) Intellectual Property registered or otherwise
located outside of the United States of America, (ii) Real Estate, and (iii) as otherwise set forth in this Agreement) upon the
filing of the applicable financing statements or delivery of stock certificates required hereunder or other action required by
this Agreement necessary to establish “control” as that term is defined in the Uniform Commercial Code over the Collateral
for the benefit of the Agent.

    	 	 	 

    	 

    
	b.		the Company owns and possesses the right to use, and has done nothing to authorize
or enable any other Person to use, all of its Copyrights, Patents and Trademarks, and all registrations of its material Copyrights,
Patents and Trademarks are valid and in full force and effect. Except as may be set forth in said Schedule
3.2, the Company owns and possesses the right to use all material Copyrights, Patents and Trademarks, necessary for
the operation of the Business;

	c.		to the Company’s knowledge, (i) except as set forth in Schedule
3.2 hereto, there is no violation by others of any right of the Company with respect to any material Copyrights, Patents
or Trademarks, respectively, and (ii) the Company is not, in connection with the Business, infringing in any material respect
upon any Copyrights, Patents or Trademarks of any other Person; and no proceedings have been instituted or are pending against
the Company or, to the Company’s knowledge, threatened, and no claim against the Company has been received by the Company,
alleging any such violation, except as may be set forth in said Schedule 3.2; and

 

Section 3.                     
Collateral. In order to secure the payment of the principal and interest and all other obligations of the Company
hereunder now or hereafter owed by the Company to Payee (the “Secured Obligations”), the Company hereby grants
to Payee (or its designee) (the “Secured Party”) a first priority security interest (the “Security
Interest”) in the property of the Company described below (the “Collateral”) on the terms and conditions
set forth in this Note second only to the existing note payable to Signature Bank in an amount not to exceed $620,000:

 

	(a)		all intellectual property of any kind or nature whatsoever, including without limitation
patents, patent applications, copyrights, copyright applications, trademarks and service marks and applications therefore, mask
works, net lists and trade secrets;

	(b)		all substitutes and replacements for, accessions, attachments, and other additions
to, and all proceeds, products, and increases of, any and all of the foregoing Collateral, in whatever form, whether cash or noncash;
interest, premium, and principal payments, redemption proceeds and subscription rights, and shares or other proceeds of conversions
or splits of any securities in Collateral, and returned or repossessed Collateral; and, to the extent not otherwise included,
all (A) payments under insurance, or any indemnity, warranty or guaranty, payable by reason of loss or damage to or otherwise
with respect to any of the foregoing Collateral, (B) cash and (C) security for the payment of any of the Collateral, and all goods
which gave or will give rise to any of the Collateral or are evidenced, identified, or represented therein or thereby.

    	 	 	 

    	 

    

(ii)  Sale or Removal of Collateral Prohibited. Except for the sale of inventory in the ordinary course of the Company’s business, the Company shall not sell, lease, encumber, pledge, mortgage, assign, grant a security interest in, or otherwise transfer the Collateral without the written consent of Payee, which consent shall not be unreasonably withheld.

	(i)		Uniform Commercial Code Security Agreement. This Section is intended to be
a security agreement pursuant to the Uniform Commercial Code for any of the items specified above as part of the Collateral which,
under applicable law, may be subject to a security interest pursuant to the Uniform Commercial Code, and the Company hereby grants
Payee a security interest in said items. The Company agrees that Payee may file any appropriate document in the appropriate index
or filing office as a financing statement for any of the items specified above as part of the Collateral and the Company shall
reimburse Payee for all fees and expenses associated with such filing. In addition, the Company agrees to execute and deliver
to Payee, upon Payee’s request, any financing statements, as well as extensions, renewals and amendments thereof, and reproductions
of this Agreement in such form as Payee may reasonably require to perfect a security interest with respect to said items. The
Company shall pay all costs of filing such financing statements and any extensions, renewals, amendments, and releases thereof,
and shall pay all reasonable costs and expenses of any record searches for financing statements Payee may reasonably require.
Without the prior written consent of Payee, the Company shall not create or suffer to be created pursuant to the Uniform Commercial
Code any other security interest in the Collateral, other than the Security Interests of Secured Party, including replacements
and additions thereto. Upon the occurrence of an Event of Default, each Secured Party shall have the remedies of a Payee under
the Uniform Commercial Code and, at Secured Party’s option, may also invoke the other remedies provided in this Note as
to such items. In exercising any of said remedies, Secured Party may proceed against the items of real property and any items
of personal property specified above as part of the Collateral separately or together and in any order whatsoever, without in
any way affecting the availability of Secured Party’s remedies under the Uniform Commercial Code or of the other remedies
provided in this Agreement.

	(ii)		Rights of Secured Party. Upon an Event of Default, Secured Party may require
the Company to assemble the Collateral and make it available to Secured Party at the place to be designated by Secured Party which
is reasonably convenient to the parties. Secured Party may sell all or any part of the Collateral as a whole or in parcels either
by public auction, private sale, or other method of disposition. Secured Party may bid at any public sale on all or any portion
of the Collateral. Unless the Collateral is perishable or threatens to decline speedily in value or is of the type customarily
sold on a recognized market, Secured Party shall give the Company reasonable notice of the time and place of any public sale or
of the time after which any private sale or other disposition of the Collateral is to be made, and notice given at least 10 days
before the time of the sale or other disposition shall be conclusively presumed to be reasonable. A public sale in the following
fashion shall be conclusively presumed to be reasonable:

 

	(a)		Notice shall be given at least 10 days before the date of sale by publication once
in a newspaper of general circulation published in the county in which the sale is to be held;

	(b)		The sale shall be held in a county in which the Collateral or any part is located
or in a county in which the Company has a place of business;

	(c)		Payment shall be in cash or by certified check immediately following the close of
the sale;

	(d)		The sale shall be by auction, but it need not be by a professional auctioneer; and

	(e)		The Collateral may be sold as is and without any preparation for sale.

 (v) Notwithstanding any provision of this Agreement,
Secured Party shall be under no obligation to offer to sell the Collateral. In the event Secured Party offer to sell the Collateral,
Secured Party will be under no obligation to consummate a sale of the Collateral if, in their reasonable business judgment, none
of the offers received by them reasonably approximates the fair value of the Collateral.

    	 	 	 

    	 

    

(vi) In the event Secured
Party elects not to sell the Collateral, Secured Party may elect to follow the procedures set forth in the Uniform Commercial Code
for retaining the Collateral in satisfaction of the Company’s obligation, subject to the Company’s rights under such
procedures.

 

(vii) In addition
to the rights under this Agreement, in the Event of Default by the Company, Secured Party shall be entitled to the appointment
of a receiver for the Collateral as a matter of right whether or not the apparent value of the Collateral exceeds the outstanding
principal amount of the Notes and any receiver appointed may serve without bond. Employment by Secured Party shall not disqualify
a person from serving as receiver.

 

(viii) Additional Rights of Secured Party. The
Company shall execute and deliver to Secured Party concurrently with the Company’s execution and delivery of this
Agreement and at any time thereafter at the reasonable request of Secured Party, all financing statements, continuation
financing statements, fixture filings, security agreements, mortgages, pledges, assignments, endorsements of certificates of
title, applications for title, affidavits, reports, notices, schedules of accounts, letters of authority, and all other
documents that Secured Party may reasonably request, in form reasonably satisfactory to Secured Party, to perfect and
maintain perfected Secured Party’s continuing security interests in the Collateral and in order to fully consummate all
of the transactions contemplated under the Offering Documents, the Company hereby authorizes Secured Party to file and/or
record such financing statements and other documents as Secured Party deems reasonably necessary to perfect and maintain
Secured Party’s continuing security interest in the Collateral, including, but not limited to, any and all filings
recognized by the United States Patent and Trademark Office for the purposes of perfecting a security interest in any
Collateral that is considered intellectual property of the Company. The Company agree any such financing statements may
contain an “all asset” or “all property” description of the Collateral.

 

(ix) The Security Interest shall terminate
when all the Secured Obligations have been fully and indefeasibly paid in full, at which time all Uniform Commercial Code termination
statements and similar documents which the Company shall reasonably request to evidence such termination shall be executed.

 

Section 4.                     
Further Assurances; Remedies. In furtherance of the grant of the pledge and security interest pursuant to Section
3 hereof, the Company hereby agrees with the Agent and each of the Purchasers as follows:

 

4.01         
Delivery and Other Perfection. The Company shall:

 

	a.		if any of the above-described shares, securities, monies or property required to be
pledged by the Company under clauses (a), (b) and (c) of Section 3 hereof are received by the Company, forthwith either (x) transfer
and deliver to the Agent such shares or securities so received by the Company (together with the certificates for any such shares
and securities duly endorsed in blank or accompanied by undated stock powers duly executed in blank) all of which thereafter shall
be held by the Agent, pursuant to the terms of this Agreement, as part of the Collateral or (y) take such other action as the
Agent shall reasonably deem necessary or appropriate to duly record the Lien created hereunder in such shares, securities, monies
or property referred to in said clauses (a), (b) and (c) of Section 3;

	b.		deliver and pledge to the Agent, at the Agent’s request, any and all Instruments,
endorsed and/or accompanied by such instruments of assignment and transfer in such form and substance as the Agent may request;
provided, that so long as no Event of Default shall have occurred and be continuing, the Company may retain for collection in
the ordinary course any Instruments received by it in the ordinary course of business and the Agent shall, promptly upon request
of the Company, make appropriate arrangements for making any other Instrument pledged by the Company available to it for purposes
of presentation, collection or renewal (any such arrangement to be effected, to the extent deemed appropriate by the Agent, against
trust receipt or like document);

	c.		give, execute, deliver, file and/or record any financing statement, notice, instrument,
document, agreement or other papers that may be necessary (in the reasonable judgment of the Agent) to create, preserve, perfect
or validate any security interest granted pursuant hereto or to enable the Agent to exercise and enforce their rights hereunder
with respect to such security interest, including, without limitation, causing any or all of the Stock Collateral to be transferred
of record into the name of the Agent or its nominee (and the Agent agrees that if any Stock Collateral is transferred into its
name or the name of its nominee, the Agent will thereafter promptly give to the Company copies of any notices and communications
received by it with respect to the Stock Collateral), provided that notices to account debtors in respect of any Accounts or Instruments
shall be subject to the provisions of Section 4.09 below;

    	 	 	 

    	 

    
	d.		upon the acquisition after the date hereof by the Company of any Equipment covered
by a certificate of title or ownership cause the Agent to be listed as the lienholder on such certificate of title and within
one hundred twenty (120) days of the acquisition thereof (or such other time as the Agent may approve in its sole discretion)
deliver evidence of the same to the Agent;

	e.		keep accurate books and records relating to the Collateral, and, during the continuation
of an Event of Default, stamp or otherwise mark such books and records in such manner as the Agent may reasonably require in order
to reflect the security interests granted by this Agreement;

	f.		furnish to the Agent from time to time (but, unless an Event of Default shall have
occurred and be continuing, no more frequently than quarterly) statements and schedules further identifying and describing the
material Copyright Collateral, the Patent Collateral and the Trademark Collateral, respectively, and such other reports in connection
with the Copyright Collateral, the Patent Collateral and the Trademark Collateral, as the Agent may reasonably request, all in
reasonable detail;

	g.		permit representatives of the Agent, upon reasonable notice, at any time during normal
business hours to inspect and make abstracts from its books and records pertaining to the Collateral, and permit representatives
of the Agent to be present at the Company’s place of business to receive copies of all communications and remittances relating
to the Collateral, and forward copies of any notices or communications by the Company with respect to the Collateral, all in such
manner as the Agent may reasonably require; provided, however, that so long as an Event of Default is not continuing, such visits
shall be made not more than once per fiscal year at Company’s expense; and

	h.		upon the occurrence and during the continuance of any Event of Default, upon request
of the Agent, promptly notify each account debtor in respect of any Accounts or Instruments that such Collateral has been assigned
to the Agent hereunder, and that any payments due or to become due in respect of such Collateral are to be made directly to the
Agent.

	i.		Immediately notify the Agent of (i) any name change involving the Company or any subsidiary,
and (ii) any disposition of a significant portion of the equity or assets of the Company or any subsidiary.

4.02         
Other Financing Statements and Liens. Except with respect to Permitted Indebtedness, without the prior written consent
of the Agent, the Company shall not file or authorize or permit to be filed, in any jurisdiction, any financing statement or like
instrument with respect to the Collateral in which the Agent is not named as the sole secured party for the benefit of each of
the Purchasers, except for Permitted Liens.

 

4.03         
Preservation of Rights. The Agent shall not be required to take steps necessary to preserve any rights against prior
parties to any of the Collateral.

 

4.04         
Special Provisions Relating to Certain Collateral.

 a. Intellectual Property.

	(i)		For the purpose of enabling the Agent to exercise rights and remedies under Section
4.05 hereof at such time as the Agent shall be lawfully entitled to exercise such rights and remedies, and for no other purpose,
the Company hereby grants to the Agent, to the extent assignable, an irrevocable, non-exclusive license (exercisable without payment
of royalty or other compensation to the Company) to use, assign, license or sublicense any of the Intellectual Property (other
than the Patent Collateral or goodwill associated therewith) now owned or hereafter acquired by the Company, wherever the same
may be located, including in such license reasonable access to all media in which any of the licensed items may be recorded or
stored and to all computer programs used for the compilation or printout thereof.

	(ii)		Notwithstanding anything contained herein to the contrary, so long as no Event of
Default shall have occurred and be continuing and following notice by the Agent of the termination of Company’s rights with
respect thereto, the Company will be permitted to use, enjoy or protect the Intellectual Property in the ordinary course of the
business of the Company. In furtherance of the foregoing, unless an Event of Default shall have occurred and is continuing, the
Agent shall from time to time, upon the request of the Company, execute and deliver any instruments, certificates or other documents,
in the form so requested, which the Company shall have certified are appropriate (in its judgment) to allow it to take any action
permitted above. Further, upon the payment in full of all of the Secured Obligations or earlier expiration of this Agreement or
release of the Collateral, the Agent shall grant back to the Company the license granted pursuant to clause (i) immediately above.

    	 	 	 

    	 

    

4.05         
Events of Default, etc. During the period during which an Event of Default shall have occurred and be continuing:

	a.		the Company shall, at the request of the Agent, assemble the Collateral owned by it
at such place or places, reasonably convenient to both the Agent and the Company, designated in its request;

	b.		the Agent may make any reasonable compromise or settlement deemed desirable with respect
to any of the Collateral and may extend the time of payment, arrange for payment in installments, or otherwise modify the terms
of, any of the Collateral with the consent of the Company, which shall not be unreasonably withheld;

	c.		the Agent shall have all of the rights and remedies with respect to the Collateral
of a secured party under the Uniform Commercial Code (whether or not said Code is in effect in the jurisdiction where the rights
and remedies are asserted) and such additional rights and remedies to which a secured party is entitled under the laws in effect
in any jurisdiction where any rights and remedies hereunder may be asserted, including, without limitation, the right, to the
maximum extent permitted by law, to exercise all voting, consensual and other powers of ownership pertaining to the Collateral
as if the Agent were the sole and absolute owner thereof (and the Company agrees to take all such action as may be appropriate
to give effect to such right);

	d.		the Agent in its discretion may, in its name or in the name of the Company or otherwise,
demand, sue for, collect or receive any money or property at any time payable or receivable on account of or in exchange for any
of the Collateral, but shall be under no obligation to do so; and

	e.		the Agent may, upon 30 Business Days, prior written notice to the Company of the time
and place, with respect to the Collateral or any part thereof which shall then be or shall thereafter come into the possession,
custody or control of the Agent, or any of its respective agents, sell, lease, assign or otherwise dispose of all or any of such
Collateral, at such place or places as the Agent deems best, and for cash or on credit or for future delivery (without thereby
assuming any credit risk), at public or private sale, without demand of performance or notice of intention to effect any such
disposition or of time or place thereof (except such notice as is required above or by applicable statute and cannot be waived)
and the Agent or anyone else may be the purchaser, lessee, assignee or recipient of any or all of the Collateral so disposed of
at any public sale (or, to the extent permitted by law, at any private sale), and thereafter hold the same absolutely, free from
any claim or right of whatsoever kind, including any right or equity of redemption (statutory or otherwise), of the Company, any
such demand, notice or right and equity being hereby expressly waived and released. In the event of any sale, assignment, or otherd
isposition of any of the Trademark Collateral, the goodwill of the Business connected with and symbolized by the Trademark Collateral
subject to such disposition shall be included, and the Company shall supply to the Agent or its designee, for inclusion in such
sale, assignment or other disposition, all Intellectual Property relating to such Trademark Collateral. The Agent may, without
notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement
at the time and place fixed for the sale, and such sale may be made at any time or place to which the same may be so adjourned.

	f.		The proceeds of each collection, sale or other disposition under this Section 4.05,
including by virtue of the exercise of the license granted to the Agent in Section 4.04(a)(i) hereof, shall be applied in accordance
with Section 4.09 hereof.

	g.		The Company recognizes that, by reason of certain prohibitions contained in the Securities
Act of 1933, as amended, and applicable state securities laws, the Agent may be compelled, with respect to any sale of all or
any part of the Collateral, to limit purchasers to those who will agree, among other things, to acquire the Collateral for their
own account, for investment and not with a view to the distribution or resale thereof. The Company acknowledges that any such
private sales to an unrelated third party in an arm’s length transaction may be at prices and on terms less favorable to
the Agent than those obtainable through a public sale without such restrictions, and, notwithstanding such circumstances, agrees
that any such private sale shall be deemed to have been made in a commercially reasonable manner and that the Agent shall have
no obligation to engage in public sales and no obligation to delay the sale of any Collateral for the period of time necessary
to permit the respective Issuer thereof to register it for public sale.

4.06         
Deficiency. If the proceeds of sale, collection or other realization of or upon the Collateral pursuant to Section
4.05 hereof are insufficient to cover the costs and expenses of such realization and the payment in full of the Secured Obligations,
the Company shall remain liable for any deficiency.

    	 	 	 

    	 

    

4.07         
Removals, etc. Without at least thirty (30) days’ prior written notice to the Agent or unless otherwise required
by law, the Company shall not (a) maintain any of its books or records with respect to the Collateral at any office or maintain
its chief executive office or its principal place of business at any place, or permit any Inventory or Equipment to be located
anywhere other than at the address indicated for the Company in Section 6(g) of the Purchase Agreement or at one of the locations
identified in Schedule 4.1 hereto or in transit from one of such locations to another or
(b) change its corporate name, or the name under which it does business, from the name shown on the signature page hereto.

 

4.08          Private
Sale. The Agent shall incur no liability as a result of the sale of the Collateral, or any part thereof, at any private
sale to an unrelated third party in an arm’s length transaction pursuant to Section 4.05 hereof conducted in a
commercially reasonable manner. The Company hereby waives any claims against the Agent arising by reason of the fact that the
price at which the Collateral may have been sold at such a private sale was less than the price which might have been
obtained at a public sale or was less than the aggregate amount of the Secured Obligations, even if the Agent accepts the
first offer received and does not offer the Collateral to more than one offeree.

 

4.09         
Application of Proceeds. Except as otherwise herein expressly provided, the proceeds of any collection, sale or other
realization of all or any part of the Collateral pursuant hereto, and any other cash at the time held by the Agent under this Section
4, shall be applied by the Agent:

 

First,
to the payment of the costs and expenses of such collection, sale or other realization, including reasonable out-of-pocket costs
and expenses of the Agent and the fees and expenses of its agents and counsel, and all expenses, and advances made or incurred
by the Agent in connection therewith;

 

Next,
to the payment in full of the Secured Obligations in each case equally and ratably in accordance with the respective amounts thereof
then due and owing to each of the Purchasers; and

 

Finally,
to the payment to the Company, or its successors or assigns, or as a court of competent jurisdiction may direct, of any surplus
then remaining.

 

As used in this Section
4, “proceeds” of Collateral shall mean cash, securities and other property realized in respect of, and distributions
in kind of, Collateral, including any thereof received under any reorganization, liquidation or adjustment of debt of the Company
or any issuer of or obligor on any of the Collateral.

 

4.10         
Attorney-in-Fact. Without limiting any rights or powers granted by this Agreement to the Agent while no Event of
Default has occurred and is continuing, upon the occurrence and during the continuance of any Event of Default, the Agent is hereby
appointed the attorney-in-fact of the Company for the purpose of carrying out the provisions of this Section 4 and taking any action
and executing any instruments which the Agent may deem necessary or advisable to accomplish the purposes hereof, which appointment
as attorney-in-fact is irrevocable and coupled with an interest. Without limiting the generality of the foregoing, so long as the
Purchasers shall be entitled under this Section 4 to make collections in respect of the Collateral, the Agent shall have the right
and power to receive, endorse and collect all checks made payable to the order of the Company representing any dividend, payment,
or other distribution in respect of the Collateral or any part thereof and to give full discharge for the same.

 

4.11         
Perfection; Name Changes. (a) Concurrently with the execution and delivery of this Agreement or within 5 Business
Days following the date hereof, the Company shall file such financing statements and other documents to perfect the security interests
granted by Section 3 of this Agreement (including, without limitation United States Patent and Trademark Office (“USPTO”)
filings to perfect the security interest in the Intellectual Property) that may be perfected by such filing. The Company covenants
that it shall provide the Purchasers and the Placement Agent with at least ten (10) business days’ prior written notice
before effecting any name change for the Company or any of its subsidiaries. Any breach of this covenant shall be considered an
Event of Default hereunder.

    	 	 	 

    	 

    

4.12         
Termination. When all Secured Obligations shall have been paid in full under the Purchase Agreement, this Agreement
shall terminate, and the Agent shall forthwith cause to be assigned, transferred and delivered, against receipt but without any
recourse, warranty or representation whatsoever, any remaining Collateral and money received in respect thereof, to or on the order
of the Company and to be released and cancelled all licenses and rights referred to in Section 4.04(b)(i) hereof. The Agent shall
also execute and deliver to the Company upon such termination such Uniform Commercial Code termination statements, certificates
for terminating the Liens on the Motor Vehicles and such other documentation as shall be reasonably requested by the Company to
effect the termination and release of the Liens on the Collateral.

 

4.13         
Expenses. The Company agrees to pay to the Agent all reasonable out-of-pocket expenses (including reasonable expenses
for legal services of every kind) of, or incident to, the enforcement of any of the provisions of this Section 4, or performance
by the Agent of any obligations of the Company in respect of the Collateral which the Company has failed or refused to perform
upon reasonable notice, or any actual or attempted sale, or any exchange, enforcement, collection, compromise or settlement in
respect of any of the Collateral, and for the care of the Collateral and defending or asserting rights and claims of the Agent
in respect thereof, by litigation or otherwise, including expenses of insurance, and all such expenses shall be Secured Obligations
to the Agent secured under Section 3 hereof.

 

4.14         
Further Assurances. The Company agrees that, from time to time upon the written reasonable request of the Agent,
the Company will execute and deliver such further documents and do such other acts and things as the Agent may reasonably request
in order fully to effect the purposes of this Agreement.

 

4.15         
Indemnity. The Company hereby covenants and agrees to reimburse, indemnify and hold the Agent harmless from and against
any and all claims, actions, judgments, damages, losses, liabilities, costs, transfer or other taxes, consequential damages and
expenses (including, without limitation, reasonable attorneys’ fees and expenses) incurred or suffered without any gross
negligence, bad faith or willful misconduct by the Agent, arising out of or incident to any investigation, proceeding or litigation
arising out of this Agreement or the administration of the Agent’s duties hereunder, or resulting from its actions or inactions
as Agent.

 

Section 5.                     
Miscellaneous.

 

5.01         
No Waiver. No failure on the part of the Agent or any of its agents to exercise, and no course of dealing with respect
to, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise by the Agent or any of its agents of any right, power or remedy hereunder preclude any other or further exercise
thereof or the exercise of any other right, power or remedy. The remedies herein are cumulative and are not exclusive of any remedies
provided by law.

 

5.02         
Governing Law and Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of
the State of New York applicable to contracts to be wholly performed within such state and without regard to conflicts of law provisions.
Any legal action or proceeding arising out of or relating to this Agreement may be instituted in the courts of the State of New
York sitting in New York County or in the United States of America for the Southern District of New York, and the parties hereto
irrevocably submit to the jurisdiction of each such court in any action or proceeding. Purchaser hereby irrevocably waives and
agrees not to assert, by way of motion, as a defense, or otherwise, in every suit, action or other proceeding arising out of or
based on this Agreement and brought in any such court, any claim that Purchaser is not subject personally to the jurisdiction of
the above named courts, that Purchaser’s property is exempt or immune from attachment or execution, that the suit, action
or proceeding is brought in an inconvenient forum or that the venue of the suit, action or proceeding is improper.

 

5.03         
Notices. All notices, requests, consents and demands hereunder shall be in writing and facsimile (facsimile confirmation
required) or delivered to the intended recipient at its address or telex number specified pursuant to Section 6(g) of the Purchase
Agreement and shall be deemed to have been given at the times specified in said Section 6(g).

 

5.04         
Waivers, etc. The terms of this Agreement may be waived, altered or amended only by an instrument in writing duly
executed by the Company and the Agent. Any such amendment or waiver shall be binding upon each of the Purchasers and the Company.

    	 	 	 

    	 

    

5.05         
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the respective successors
and assigns of the Company and each of the Purchasers (provided, however, that the Company shall not assign or transfer its rights
hereunder without the prior written consent of the Agent).

 

5.06         
Counterparts. This Agreement may be executed in any number of counterparts, all of which together shall constitute
one and the same instrument and any of the parties hereto may execute this Agreement by signing any such counterpart. Execution
and delivery of this Agreement by facsimile transmission (including delivery of documents in Adobe PDF format) shall constitute
execution and delivery of this Agreement for all purposes, with the same force and effect as execution and delivery of an original
manually signed copy hereof.

 

5.07         
Severability. If any provision hereof is invalid and unenforceable in any jurisdiction, then, to the fullest extent
permitted by law, (a) the other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally
construed in favor of the Purchasers in order to carry out the intentions of the parties hereto as nearly as may be possible and
(b) the invalidity or unenforceability of any provision hereof in any jurisdiction shall not affect the validity or enforceability
of such provision in any other jurisdiction.

 

5.08         
UCC and USPTO Filings. The Purchasers each hereby acknowledge that neither the Placement Agent nor its legal counsel
shall have any responsibility whatsoever for the filing of any financing statements (or USPTO security filings) or for taking any
other actions to perfect, monitor, or otherwise protect, the Lenders’ security interest in the Collateral, Copyright Collateral,
Trademark Collateral or Patent Collateral.

 

5.09         
Adequacy of Consideration. Safety Quick Lighting & Fans Corp. as owner of the Intellectual Property hereby agrees
and acknowledges that the proceeds from the sale of the Secured Notes to Purchasers in the Note Offering constitute good and adequate
consideration for the obligations of Safety Quick Lighting & Fans Corp. hereunder.

 

 

 

[Signature Page Follows]

    	 	 	 

    	 

    

IN WITNESS WHEREOF, the parties hereto
have caused this Security Agreement to be duly executed as of the day and year first above written.

 

 

	COMPANY:	 	SAFETY QUICK LIGHTING & FANS CORP.
	 	 	 
	 	 	By:	 
	 	 	James R. Hills
	 	 	President and CEO
	 	 	 
	 	 	 
	PURCHASERS:	 	 
	 	 	 
	 	 	By:	 
	 	 	Name:
	 	 	Title:EXHIBIT 10.4

 

SAFETY QUICK LIGHTING & FANS CORP.

 

This Registration
Rights Agreement (this “Agreement”) is made and entered into this ____day of ___________, _____, by and
among Safety Quick Lighting & Fans Corp, a Florida corporation (the “Company”), and each Holder of
the Notes and Warrants issued by the Company pursuant to a Securities Purchase Agreement, dated as of the date hereof, by and between
each Investor and the Company (the “SPA”).

 

The Underlying
Shares shall have the registration rights as set forth herein.

 

The Company and the
Investor hereby agree as follows:

 

1.                 
Definitions. Capitalized terms used and not otherwise defined herein that are defined in the SPA shall
have the meanings given such terms in the SPA. As used in this Agreement, the following terms shall have the following meanings:

 

“Closing
Date” means the date of the closing of the private placement of the Secured Convertible Promissory Notes (the “Notes”).

 

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

 

“Common
Stock” means the Company’s common stock par value $0.0001 per share.

 

“Conversion
Shares” means all shares of Common Stock issuable upon conversion of the Notes.

 

“Demand
Effectiveness Date” shall have the meaning set forth in Section 2(b).

 

“Demand
Filing Date” shall have the meaning set forth in Section 2(b).

 

“Demand
Notice” shall have the meaning set forth in Section 2(b).

 

“Demand
Registration Statement” shall have the meaning set forth in Section 2(b).

 

“Effectiveness
Period” shall mean from the date hereof until the earlier to occur of the date when all Registrable Securities covered
by a Registration Statement either (a) have been sold pursuant to a Registration Statement or an exemption from the registration
requirements of the Securities Act, and (b) pursuant to a written opinion of Company counsel acceptable to the Company’s
transfer agent and the legal counsel for the Holders, may be sold pursuant to Rule 144(k).

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Holder”
or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities
(including any permitted assignee).

 

“Indemnified
Party” shall have the meaning set forth in Section 5(c).

 

“Indemnifying
Party” shall have the meaning set forth in Section 5(c).

 

“Investor”
shall mean each purchaser of Notes and Warrants pursuant to the SPA.

 

“Investors”
shall mean, collectively, each Investor.

 

“Losses”
shall have the meaning set forth in Section 5(a).

    	 	 	 

    	 

    

“Mandatory
Effectiveness Date” means, with respect to the Mandatory Registration Statement required to be filed pursuant to
Section 2(a) of this Agreement.

 

“Mandatory
Filing Date” shall have the meaning set forth in Section 2(a).

 

“Mandatory
Registration Statement” shall have the meaning set forth in Section 2(a).

 

“Notes”
means the 12% and 15% Senior Secured Convertible Promissory Notes in the aggregate principal amount of up to $3,000,000 issued
to certain Investors including the Investor.

 

“Person”
shall mean an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited
liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding,
such as a deposition), whether commenced or threatened.

 

“Prospectus”
means the prospectus included in the 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 upon Rule 430A promulgated
under the Securities Act), 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 the Registration Statement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by
reference in such Prospectus.

 

“Registrable
Securities” means (i) the Underlying Shares, and (ii) any shares of Common Stock issued or issuable upon any stock
split, dividend or other distribution, recapitalization, anti-dilution adjustment or similar event with respect to the foregoing
or in connection with any provisions in the Notes and/or Warrants.

 

“Registration
Statement” means any registration statement required to be filed hereunder (which, at the Company's option, may be
an existing registration statement of the Company previously filed with the Commission, but not declared effective), including
(in each case) the Prospectus, amendments and supplements to the registration statement or Prospectus, including pre- and post-effective
amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in the registration
statement.

 

“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or
any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Rule 415”
means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to
time, or any similar Rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Rule 424”
means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to
time, or any similar Rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Securities
Act” means the Securities Act of 1933, as amended.

    	 	 	 

    	 

    

“Trading
Day” means (a) a day on which the Common Stock is listed or quoted for trading on a Trading Market, or (b) if
the Common Stock is not trading on a Trading Market, a day on which the Common Stock is quoted in the over-the-counter
market as reported by Pink Sheets LLC (or any similar organization or agency succeeding to its functions of reporting price); provided,
that in the event that the Common Stock is not listed or quoted as set forth in (a) and (b) hereof, then Trading Day shall
mean a Business Day;

 

“Trading
Market” means the following markets or exchanges on which the Common Stock is listed or quoted for trading on the
date in question: the OTC Bulletin Board, the American Stock Exchange, the New York Stock Exchange, the NASDAQ Global Market or
the NASDAQ Capital Market.

 

“Underlying
Shares” means collectively, all Conversion Shares and the Warrant Shares.

 

“Warrant
Shares” means all shares of Common Stock issuable upon exercise of the Warrants.

 

“Warrants”
means the Common Stock purchase warrants in the amount of ________ shares issued to the Investor by the Company which are exercisable
at $0.375 per share.

 

2.                 
Registration.

 

(a)                Mandatory
Registration. The Company shall, on the date that is sixty (60) days from the Closing Date (the
“Mandatory Filing Date”), file with the Commission a Registration Statement (the
“Mandatory Registration Statement”), covering the resale of all of the Registrable Securities for
an offering to be made on a continuous basis pursuant to Rule 415. The Mandatory Registration Statement required
hereunder shall be on Form S-1 or Form S-3 (except if the Company is not then eligible to register for resale the Registrable
Securities on Form S-1 or Form S-3, in which case the Mandatory Registration Statement shall be on another appropriate form
in accordance herewith). The Company shall use its best efforts to cause the Mandatory Registration Statement to become
effective, no later than ninety (90) days after the Mandatory Filing Date (the “Mandatory
Effectiveness Date”) and to keep the Mandatory Registration Statement continuously effective under the
Securities Act until the earlier of (i) when all Registrable Securities have been sold pursuant to the Mandatory Registration
Statement, and (ii) the date on which the Registration Statement may be sold without any restrictions pursuant to Rule 144 of
the Securities Act.

 

(b)              
Demand Registration Rights. At any time commencing on the date nine (9) months following the Closing Date, the Holders
owning no less than 50.1% of the aggregate principal amount of the Notes then outstanding shall have the one-time right, by written
notice signed by such 50.1% of Holders, provided to the Company (the “Demand Notice”), to demand
the Company to register for resale all Registrable Securities under and in accordance with the provisions of the Securities Act
by filing with the Commission a Registration Statement covering the resale of all of the Registrable Securities (the “Demand
Registration Statement”). Such Demand Registration Statement shall be (i) filed by the Company with the Commission
no later than forty-five (45) days after receipt by the Company of the Demand Notice (the “Demand Filing Date”),
and (ii) the Company shall use its reasonable best efforts to have the Demand Registration Statement declared effective by the
Commission no later than ninety (90) days after the Demand Filing Date (the “Demand Effectiveness Date”).
The Demand Registration Statement required hereunder shall be on Form S-1 or Form S-3 (except if the Company is not then eligible
to register for resale the Registrable Securities on Form S-1 or Form S-3, in which case the Demand Registration Statement shall
be on another appropriate form). The Company shall keep the Demand Registration Statement continuously effective under the Securities
Act until the earlier of (i) the date when all Registrable Securities have been sold pursuant to the Demand Registration Statement,
and (ii) the date on which the Registration Statement may be sold without any restrictions pursuant to Rule 144 of the Securities
Act.

    	 	 	 

    	 

    

(c)               
Filing Default Damages. If a Demand Registration Statement or Mandatory Registration Statement (as the case may be)
is not filed on or prior to the Demand Filing Date or Mandatory Filing Date (as the case may be), then the Company shall pay to
the Holders of the Underlying Shares, for each thirty (30) day period of such failure and until the date a Mandatory Registration
Statement or Demand Registration Statement (as the case may be) is filed and/or the Registrable Securities may be sold pursuant
to Rule 144, an amount in cash, as partial liquidated damages and not as a penalty, equal to two (2%) percent of the aggregate
gross proceeds paid by the Holders for the Notes. The maximum liquidated damages shall be equal to 15% of the aggregate gross proceeds.
If the Company fails to pay any partial liquidated damages pursuant to this Section 2(c) in full within five (5) days of
the date payable, the Company shall pay interest thereon at a rate of 18% per annum (or such lesser maximum amount that is permitted
to be paid by applicable law) to the Holders, accruing daily from the date such partial liquidated damages are due until such amounts,
plus all such interest thereon, are paid in full.

 

(d)              
Effectiveness, etc.; Default Damages. If a Mandatory Registration Statement or Demand Registration Statement (as
the case may be) is not declared effective by the Commission on or prior to the Mandatory Effectiveness Date or the Demand Effectiveness
Date, respectively, or the Commission declared any such Registration Statement effective, but the Holders of Registrable Securities
cannot sell such Registrable Securities thereunder, for any reason or no reason, then the interest rate shall increase two percent
(2%) above the current interest rate, and will continue to increase two percent (2%) above the then effective interest rate after
every 30-day period thereafter in which the Company remains in default. In no event shall any interest to be paid under the Notes
exceed the maximum rate permitted by law. Notwithstanding the foregoing, the Company shall not be responsible to pay any penalties
if the delay in effectiveness is the result of any comment relating to Rule 415, provided that the Company is working diligently
to cause such effectiveness.

 

(e)               
Piggyback Registration Rights. If, at any time following the date hereof, there is not an effective Registration
Statement covering the Registrable Securities and the Company shall determine to prepare and file with the Commission a registration
statement relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities,
other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents, relating to equity
securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection
with stock option or other employee benefit plans, then the Company shall send to each Holder a written notice of such determination
at least twenty (20) days prior to the filing of any such registration statement and shall automatically include in such registration
statement all Registrable Securities; provided, however, that (i) if, at any time after giving written notice of
its intention to register any securities and, prior to the effective date of the registration statement filed in connection with
such registration, the Company determines for any reason not to proceed with such registration, the Company will be relieved of
its obligation to register any Registrable Securities in connection with such registration, and (ii) in case of a determination
by the Company to delay registration of its securities, the Company will be permitted to delay the registration of Registrable
Securities for the same period as the delay in registering such other securities.

 

3.                 
Registration Procedures. In connection with the Company's registration obligations hereunder, and during the
period in which the Company is required or elects to keep a registration statement effective (the “Effectiveness Period”),
the Company shall:

 

(a)               
(i) Prepare and file with the Commission such amendments, including post-effective amendments, to the Registration Statement
and the Prospectus used in connection therewith as may be necessary to keep the Registration Statement continuously effective as
to the applicable Registrable Securities for the Effectiveness Period; (ii) cause the related Prospectus to be amended or supplemented
by any required Prospectus supplement, and as so supplemented or amended, to be filed pursuant to Rule 424; and (iii) respond
to any comments received from the Commission with respect to the Registration Statement or any amendment thereto.

    	 	 	 

    	 

    

(b)              
Notify each Holder of Registrable Securities included in the Registration Statement, as promptly as reasonably possible,
but no later than three (3) business days after the date when: (i) (A) when a Prospectus or any Prospectus supplement or post-effective
amendment to the Registration Statement has been filed, provided, however, that such Holder has previously requested
in writing to receive notice of such filing; (B) when the Commission notifies the Company whether there will be a “review”
of the Registration Statement and whenever the Commission comments in writing on the Registration Statement, provided,
however, that such Holder has previously requested in writing to receive notice of such notification; and (C) when the
Registration Statement or any post-effective amendment has become effective; (ii) of any request by the Commission or any other
Federal or state governmental authority during the period of effectiveness of the Registration Statement for amendments or supplements
to the Registration Statement or Prospectus or for additional information; (iii) of the issuance by the Commission or any other
federal or state governmental authority of any stop order suspending the effectiveness of the Registration Statement covering
any or all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iv) of the receipt by the Company
of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction, or the initiation of any Proceeding for such purpose; and (v) of the occurrence of any
event that makes, or with the passage of time would make, the financial statements included in the Registration Statement ineligible
for inclusion therein, or, that makes, or with the passage of time would make, any statement made in the Registration Statement
or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or
that requires any revisions to the Registration Statement, Prospectus or other documents so that, in the case of the Registration
Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state
any 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.

 

(c)               
Use its best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the effectiveness
of the Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction, at the earliest practicable moment.

 

(d)              
Promptly deliver to each Holder no later than five (5) business days after the Effectiveness Date, without charge, two (2)
copies of the final Prospectus or Prospectuses (including each form of prospectus) and each amendment or supplement thereto (and,
upon the request of the Holder such additional copies as such Persons may reasonably request in connection with resales by the
Holder of Registrable Securities). The Company hereby consents to the use of such Prospectus and each amendment or supplement thereto
by the Holder in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment
or supplement thereto, except after the giving of any notice pursuant to Section 3(b).

 

(e)               
Prior to any resale of Registrable Securities by a Holder, use its best efforts to register or qualify or cooperate with
the selling Holders in connection with the registration or qualification (or exemption from the registration or qualification)
of such Registrable Securities for the resale by the Holder under the securities or Blue Sky Laws of such jurisdictions within
the United States as any Holder reasonably requests in writing, to keep such registration or qualification (or exemption therefrom)
effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition
in such jurisdictions of the Registrable Securities covered by the Registration Statement; provided, however, that
the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject
the Company to any material tax in any such jurisdiction where it is not then so subject, or file a general consent to service
of process in any such jurisdiction.

 

(f)               
Upon the occurrence of any event contemplated by Section 3(b)(v), as promptly as reasonably possible, prepare
a supplement or amendment, including a post-effective amendment, to the Registration Statement or a supplement to the related
Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document
so that, as thereafter delivered, neither the Registration Statement nor such Prospectus will contain an 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 under which they were made, not misleading.

 

(g)              
Use its best efforts to comply with all applicable rules and regulations of the Commission relating to the registration
of the Registrable Securities pursuant to the Registration Statement or otherwise.

    	 	 	 

    	 

    

(h)              
The Company covenants that it shall file the reports required to be filed by it under the Securities Act and the Exchange
Act and the rules and regulations adopted by the SEC thereunder so long as the Holder owns any Registrable Securities, but in no
event longer than two (2) years; provided, however, that the Company may delay any such filing but only pursuant
to Rule 12b-25 under the Exchange Act, and the Company shall take such further reasonable action as the Holder may reasonably
request (including, without limitation, promptly obtaining any required legal opinions from Company counsel necessary to effect
the sale of Registrable Securities under Rule 144 and paying the related fees and expenses of such counsel), all to the extent
required from time to time to enable such Holder to sell Registrable Securities without registration under the Securities Act within
the limitation of the exemptions provided by (a) Rule 144 under the Securities Act, as such Rule may be amended
from time to time, or (b) any similar rule or regulation hereafter adopted by the Commission. Upon the request of any Holder
of Registrable Securities, the Company will deliver to such Holder a written statement as to whether it has complied with such
requirements.

 

4.                 
Registration Expenses. All fees and expenses incident to the performance of or compliance with this Agreement
by the Company shall be borne by the Company whether or not any Registrable Securities are sold pursuant to the Registration Statement,
other than fees and expenses of counsel or any other advisor retained by the Holders and discounts and commissions with respect
to the sale of any Registrable Securities by the Holders. The fees and expenses referred to in the foregoing sentence shall include,
without limitation, (i) all registration and filing fees (including, without limitation, fees and expenses (A) with respect to
any filings required to be made with the Trading Market on which the Common Stock is then listed for trading, and (B) in compliance
with applicable state securities or Blue Sky laws), (ii) printing expenses (including, without limitation, expenses of printing
certificates for Registrable Securities and of printing prospectuses if the printing of prospectuses is reasonably requested by
the holders of a majority of the Registrable Securities included in the Registration Statement), (iii) messenger, telephone and
delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability insurance, if the Company
so desires such insurance, in its sole discretion, and (vi) fees and expenses of all other Persons retained by the Company in connection
with the consummation of the transactions contemplated by this Agreement.

 

5.                 
Indemnification

 

(a)               
Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify
and hold harmless the Holder, the officers, directors, agents and employees of it, each Person who controls the Holder (within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, agents
and employees of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and all
losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys' fees) and expenses relating
to an Indemnified Party’s actions to enforce the provisions of this Section 5 (collectively, “Losses”),
as incurred, to the extent arising out of or relating to any untrue or alleged untrue statement of a material fact contained in
the Registration Statement, any Prospectus or any form of prospectus, or in any amendment or supplement thereto, or in any preliminary
prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein
or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in light
of the circumstances under which they were made) not misleading, except to the extent, but only to the extent, that (1) such untrue
statements or omissions are based solely upon information regarding such Holder furnished (or in the case of an omission, not
furnished) in writing to the Company by or on behalf of such Holder expressly for use therein, or to the extent that such information
relates to such Holder or such Holder's proposed method of distribution of Registrable Securities and was reviewed and expressly
approved in writing by such Holder expressly for use in the Registration Statement, such Prospectus or such form of prospectus,
or in any amendment or supplement thereto, (2) in the case of an occurrence of an event of the type specified in Section 3(b)(ii)-(v),
the use by such Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus
is outdated or defective and prior to the receipt by such Holder of written notice from the Company that the use of the applicable
Prospectus may be resumed, or (3) the failure of the Holder to deliver a prospectus prior to the confirmation of a sale. The Company
shall notify the Holders promptly of the institution, threat or assertion of any Proceeding of which the Company is aware in connection
with the transactions contemplated by this Agreement.

    	 	 	 

    	 

    

(b)              
Indemnification by Holder. The Holder shall indemnify and hold harmless the Company, its directors, officers, agents
and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20
of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted
by applicable law, from and against all Losses, as incurred, to the extent arising out of or based upon: (x) the Holder's failure
to comply with the prospectus delivery requirements of the Securities Act or (y) any untrue or alleged untrue statement of a material
fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto
or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required
to be stated therein or necessary to make the statements therein not misleading (i) to the extent, but only to the extent, that
such untrue statement or omission is contained in any information so furnished (or in the case of an omission, not furnished)
in writing by or on behalf of such Holder to the Company specifically for inclusion in the Registration Statement or such Prospectus
(or, in each case, any amendment or supplement thereto) or (ii) to the extent that (1) such untrue statements or omissions are
based solely upon information regarding such Holder furnished (or in the case of an omission, not furnished) in writing to the
Company by or on behalf of such Holder expressly for use therein, or to the extent that such information relates to such Holder
or such Holder's proposed method of distribution of Registrable Securities, such Prospectus or such form of Prospectus or in any
amendment or supplement thereto, or (2) in the case of an occurrence of an event of the type specified in Section 3(b)(ii)-(v),
the use by such Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus
is outdated or defective and prior to the receipt by such Holder of written notice from the Company that the use of the applicable
Prospectus may be resumed, or (3) the failure of the Holder to deliver a Prospectus prior to the confirmation of a sale. In no
event shall the liability of any selling Holder hereunder be greater in amount than the dollar amount of the Subscription Amount
paid by the Holder in the Purchase Agreement.

 

(c)               
Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled
to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person
from whom indemnity is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall
have the right to assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party
and the payment of all fees and expenses incurred in connection with defense thereof; provided, however, that the
failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities
pursuant to this Agreement, except and only to the extent that such failure shall have materially prejudiced the Indemnifying Party.

 

An Indemnified Party
shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees
and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has
agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to assume the defense of
such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named
parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party,
and such Indemnified Party shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel
were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying
Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall
not have the right to assume the defense thereof and the reasonable fees and expenses of one separate counsel for all Indemnified
Parties in any matters related on a factual basis shall be at the expense of the Indemnifying Party). The Indemnifying Party shall
not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably
withheld. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any
pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release
of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

 

All reasonable fees
and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating
or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party,
as incurred, within ten (10) Trading Days of written notice thereof to the Indemnifying Party; provided, however,
that the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable
to such actions for which such Indemnified Party is not entitled to indemnification hereunder, determined based upon the relative
faults of the parties.

    	 	 	 

    	 

    

(d)              
Contribution. If a claim for indemnification under Section 5(a) or Section 5(b) is unavailable
to an Indemnified Party (by reason of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such
Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such
proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with
the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The
relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether
any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of
a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party,
and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement
or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations
set forth in Section 5(c), any reasonable attorneys' or other reasonable fees or expenses incurred by such party in
connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification
provided for in this Section was available to such party in accordance with its terms.

 

(e)Rule 144.
As long as any Holder owns any Notes, Warrants or Registrable Securities, the Company covenants to timely file (or obtain extensions
in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date
hereof pursuant to Section 13(a) or 15(d) of the Exchange Act. As long as any Holder owns any Notes, Warrants or Registrable Securities,
if the Company is not required to file reports pursuant to Section 13(a) or 15(d) of the Exchange Act, it will prepare and furnish
to the Holders and make publicly available in accordance with Rule 144(c) promulgated under the Securities Act annual and quarterly
financial statements, together with a discussion and analysis of such financial statements in form and substance substantially
similar to those that would otherwise be required to be included in reports required by Section 13(a) or 15(d) of the Exchange
Act, as well as any other information required thereby, in the time period that such filings would have been required to have been
made under the Exchange Act. The Company further covenants that it will take such further action as any Holder may reasonably request,
all to the extent required from time to time to enable such person to sell Conversion Shares and Warrant Shares without registration
under the Securities Act within the limitation of the exemptions provided by Rule 144 promulgated under the Securities Act, including
providing any legal opinions relating to such sale pursuant to Rule 144, if such person is deemed by the Company’s counsel
to be in compliance with the rules and regulations set forth in Rule 144. Upon the request of any Holder, the Company shall deliver
to such Holder a written certification of a duly authorized officer as to whether it has complied with such requirements.

 

6.                 
Miscellaneous.

 

(a)               
Compliance. The Holder covenants and agrees that it will comply with the prospectus delivery requirements of the
Securities Act as applicable to it in connection with sales of Registrable Securities pursuant to the Registration Statement.

 

(b)              
Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall
be in writing and signed by the Company and each Holder of the then outstanding Registrable Securities.

 

(c)               
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder
shall be in writing and shall be deemed given and effective on the earliest of (i) the Trading Day following the date of delivery
to the courier service, if sent by nationally recognized overnight courier service, (ii) the third Trading Day following the date
of mailing, if sent by first-class, registered or certified mail, postage prepaid, (iii) the Trading Day following transmission
by electronic mail with receipt confirmed or acknowledged, or (iv) upon actual receipt by the party to whom such notice is required
to be given. The address for such notices and communications shall be delivered and addressed as set forth in the Purchase Agreement
or to such other address as shall be designated in writing from time to time by a party hereto.

    	 	 	 

    	 

    

(d)              
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted
assigns of each of the parties and shall inure to the benefit of the Holder.

 

(e)               
Execution and Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed
shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement. In the event that
any signature is delivered by facsimile transmission, such signature shall create a valid binding obligation of the party executing
the same (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature were the
original thereof.

 

(f)               
Governing Law. This Agreement shall be governed by and construed exclusively in accordance with the internal laws
of the State of New York without regard to the conflicts of laws principles thereof. The parties hereto hereby irrevocably agree
that any suit or proceeding arising directly and/or indirectly pursuant to or under this Agreement, shall be brought solely in
a federal or state court located in the City, County and State of New York. By its execution hereof, the parties hereby covenant
and irrevocably submit to the in personam jurisdiction of the federal and state courts located in the City, County
and State of New York and agree that any process in any such action may be served upon any of them personally, or by certified
mail or registered mail upon them or their agent, return receipt requested, with the same full force and effect as if personally
served upon them in New York. The parties hereto waive any claim that any such jurisdiction is not a convenient forum for any such
suit or proceeding and any defense or lack of in personam jurisdiction with respect thereto. In the event of any such action
or proceeding, the party prevailing therein shall be entitled to payment from the other party hereto of its reasonable counsel
fees and disbursements.

 

(g)              
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use
their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result
as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention
of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any
of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

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

 

[Signature Page Follows]

    	 

    	 

    

IN WITNESS WHEREOF, the parties
have executed this Registration Rights Agreement as of the date first written above.

 

	 	 	 	SAFETY QUICK LIGHTING & FANS CORP.
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	 	James R. Hills
	 	 	 	 	President & CEO
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	 
	By:	 	 	 	 
	Name:	 	 	 	 
	Title	 	 	 	 
	 	 	 	 
	Address	 	 	 	 
	 	 	 	 
	Facsimile Number

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