Document:

Exhibit 10.1

 

ONE LIBERTY PROPERTIES, INC.

2022 INCENTIVE PLAN

 

SECTION 1

EFFECTIVE DATE AND PURPOSE

 

1.1 Effective Date. This Plan (as defined)
shall become effective upon approval by the stockholders of the Company (as defined), as and to the extent required by the listing requirements
of the New York Stock Exchange.

 

1.2 Purpose of the Plan. The Plan is
designed to motivate, retain and attract Participants (as defined) of experience and ability and to further the financial success of the
Company by aligning the interests of Participants through the ownership of Shares (as defined) with the interests of the Company’s
stockholders.

 

SECTION 2

DEFINITIONS

 

The following terms shall have the following meanings
(whether used in the singular or plural) unless a different meaning is plainly required by the context:

 

“1934 Act” means the Securities
Exchange Act of 1934, as amended. Reference to a specific section of the 1934 Act or a regulation thereunder shall include any regulation
promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding
such section or regulation.

 

“Affiliate” or “Affiliates”
has the meaning ascribed to such term by Rule 501 promulgated under the Securities Act of 1933, as amended.

 

“Award” means, individually or
collectively, a grant under the Plan of Nonqualified Stock Options, Incentive Stock Options, Restricted Stock, Restricted Stock Units,
Dividend Equivalent Rights and Performance Share Awards.

 

“Award Agreement” means either
(1) the written agreement setting forth the terms and provisions applicable to each Award granted under the Plan or (2) a statement (including
an electronic communication) issued by the Company to a Participant describing the terms and provisions of such Award.

 

“Board” or “Board of
Directors” means the Board of Directors of the Company, or any analogous governing body of any successor to the Company.

 

“Change in Control” means any
of the following:

 

(i) the acquisition (other than from the Company)
in one or more transactions by any person (as such term is used in Section 13(d) of the 1934 Act) of the beneficial ownership (within
the meaning of Rule 13d-3 under the 1934 Act) of 25% or more of (A) the then outstanding Shares or (B) the combined voting power
of the then outstanding securities of the Company entitled to vote generally in the election of directors (the “Company Voting
Stock”); provided, however, the provision of this clause (i) is not applicable to acquisitions made individually,
or as a group, by Fredric H. Gould, Matthew J. Gould and Jeffrey A. Gould, and their respective spouses, lineal descendants and Affiliates;

 

(ii) individuals who, as of the date of the
Award, constitute the Board of Directors (the “Incumbent Board”) cease for any reason to constitute at least a majority
of the Board; provided, however, that any individual becoming a director subsequent to the date of such Award whose election,
or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising
the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose,
any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such
terms are used in Regulation 14A promulgated under the 1934 Act) or other actual or threatened solicitation of proxies or consents
by or on behalf of a Person other than the Incumbent Board;

 

(iii) the closing of a sale or other conveyance
of all or substantially all of the assets of the Company outside the ordinary course of the Company’s business; or

 

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(iv) the effective time of any merger, share
exchange, consolidation, or other business combination involving the Company if immediately after such transaction persons who hold a
majority of the outstanding voting securities entitled to vote generally in the election of directors of the surviving entity (or the
entity owning 100% of such surviving entity) are not persons who, immediately prior to such transaction, held the Company’s voting
Shares.

 

Notwithstanding the foregoing, if the term “Change
in Control” is being used in a context where it is required to meet the definition of such term under Section 409A of the Code,
then a “Change in Control” shall not be deemed to have occurred under the foregoing definition unless the transaction or occurrence
constitutes a change in control for purposes of Section 409A of the Code.

 

The Board shall have full and final authority, which
shall be exercised in its sole discretion, to determine conclusively whether a Change in Control has occurred pursuant to the above definition,
the date of the occurrence of such Change in Control and any incidental matters relating thereto; provided that any exercise of authority
in conjunction with a determination of whether a Change in Control is a “change in control event” as defined in Treasury Regulation
Section 1.409A-3(i)(5) shall be consistent with such regulation.

 

“Code” means the Internal Revenue
Code of 1986, as amended from time to time, and the regulations thereunder.

 

“Committee” means the Compensation
Committee of the Board or any other committee of the Board appointed to administer the Plan.

 

“Company” means One Liberty Properties,
Inc., a Maryland corporation.

 

“Company Voting Stock” has the
meaning ascribed to such term under the definition of Change in Control.

 

“Disability” or “Disabled”
means the inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.

 

“Dividend Equivalent Right” means
an Award granted pursuant to Section 9, entitling the Participant to receive an amount of cash equal to the cash distributions that would
have been paid on the Shares specified in the Award to which such Dividend Equivalent Right relates, as if such Shares had been issued
to and held by the Participant holding such Dividend Equivalent Right during the period beginning with the grant date (or if otherwise
determined by the Committee, the beginning of the Performance Cycle) of the Award to which the Dividend Equivalent Right relates through
the vesting date of such award (or if otherwise determined by the Committee, the conclusion of such Performance Cycle).

 

“Exercise Price” means the price
at which a Share may be purchased by a Participant pursuant to the exercise of an Option.

 

“Fair Market Value” means, as
of any given date: (i) the closing sales price of the Shares on any national securities exchange on which the Shares are listed;
(ii) the closing sales price if the Shares are listed on the OTCBB or other over the counter market; or (iii) if there is no
regular public trading market for such Shares, the fair market value of the Shares as determined by the Committee.

 

“Grant Date” means, with respect
to an Award, the effective date that such Award is granted to a Participant.

 

“Incentive Stock Option” means
an Option to purchase Shares which is designated as an Incentive Stock Option and is intended to meet the requirements of Section 422
of the Code.

 

“Incumbent Board” has the meaning
ascribed to such term under the definition of Change in Control.

 

“Non-management director” means
a director who, in the applicable calendar year, was not compensated, directly or indirectly, by the Company, any Subsidiary or any of
their Affiliates, other than compensation for service as a director or as a member of any committee of the Board.

 

“Non-qualified Stock Option”
means an Option to purchase Shares which is not an Incentive Stock Option.

 

“Option” means an Incentive Stock
Option or a Nonqualified Stock Option.

 

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“Participant” means an officer,
employee, director or consultant of the Company or any of its Subsidiaries.

 

“Performance-Based Award” means
an Award granted pursuant to Section 8 of the Plan.

 

“Performance Criteria” shall
mean any, a combination of, or all of the following: (i) pre-tax income, (ii) after-tax income, (iii) net income (meaning
net income as reflected in the Company’s financial reports for the applicable period), (iv) operating income (including net
operating income), (v) cash flow, cash flow from operations, free cash flow and any one or more of the foregoing, (vi) return
on any one or more of equity, capital, invested capital and assets, (vii) funds available for distribution, (viii) occupancy
rate at any one or more of the Company’s or its Subsidiaries’ properties, (ix) total stockholder return, (x) funds
from operations (“FFO”), as computed in accordance with standards established by the National Association of Real Estate Investment
Trusts, Inc. (“NAREIT”), (xi) adjusted FFO (i.e., adjusting FFO to give effect to any one or more of the following:
straight-line rent, amortization of lease intangibles, lease termination fee income, amortization of restricted stock or other non-cash
compensation expense, amortization and/or write-off of deferred financing costs, deferred mortgage costs and debt prepayment costs), (xii) stock
appreciation (meaning an increase in the price or value of the Shares after the date of grant of an award and during the applicable period),
(xiii) revenues, (xiv) assets, (xv) gains/losses on property sales, (xvi) earnings before any one or more of the following
items: interest, taxes, impairment charges, depreciation or amortization for the applicable period, as reflected in the Company’s
financial reports for the applicable period, (xvii) reduction in expense levels, (xviii) operating cost management and employee
productivity, (xix) strategic business criteria consisting of one or more objectives based on meeting specified revenue, market share,
market penetration, geographic business expansion goals, objectively identified project milestones, cost targets and goals relating to
acquisition or divestitures; (xx) achievement of business or operational goals such as market share and/or business development,
and (xxi) such other metrics or criteria as the Committee may establish or select. Performance Criteria need not be the same with
respect to all Participants and may be established on an aggregate or per share basis (diluted or undiluted), may be based on performance
compared to performance by businesses or indices specified by the Committee, may be compared to any prior period, may be based on a company-wide
basis or in respect of any one or more business units, may be measured on an absolute or relative basis, may be adjusted for non-controlling
interests, and any one or more of the foregoing. All calculations and financial accounting matters relevant to this Plan shall be determined
in accordance with GAAP, except as otherwise directed by the Committee.

 

“Performance Cycle” means one
or more periods of time which may be of varying and overlapping durations, as the Committee may select, over which the attainment of one
or more Performance Goals will be measured for the purpose of determining a Participants right to and the payment of a Restricted Stock
Award, Restricted Stock Unit, Option or Performance Share Award.

 

“Performance Goals” means for
a Performance Cycle, the applicable Performance Criteria.

 

“Period of Restriction” means
the period during which an Award granted hereunder is subject to a substantial risk of forfeiture. Such restrictions may be based on the
passage of time, the achievement of Performance Goals or the occurrence of other events as determined by the Committee.

 

“Plan” means the One Liberty
Properties, Inc. 2022 Incentive Plan, as set forth in this instrument, and as hereafter amended from time to time.

 

“Restricted Stock” means an Award
of Shares, the grant, issuance, retention and/or vesting of which is subject to such conditions as are expressed in the Award Agreement
and as contemplated herein.

 

“Restricted Stock Unit” or “RSU”
means an Award of a right to receive one Share, the grant, issuance, retention and/or vesting of which is subject to such conditions as
are expressed in the Award Agreement and as contemplated herein.

 

“Retirement” means (i) a
director who has attained the age of 65 years who resigns or retires from the Board or does not stand for re-election to the Board
and has served continuously as a director of the Company for not less than six consecutive years, and (ii) an officer or employee
of, or consultant to, the Company or one of its Subsidiaries who has attained the age of 65 years who resigns or retires from the
Company or one of its Subsidiaries and has served in any such capacity with the Company or one of its Subsidiaries for not less than ten
consecutive years at the time of retirement or resignation.

 

“Shares” means the shares of
common stock, $1.00 par value per share, of the Company, or any other security of the Company determined by the Committee pursuant to
Section 5.3.

 

“Subsidiary” means (i) a
corporation, association or other business entity of which 50% or more of the total combined voting power of all classes of capital stock
is owned, directly or indirectly, by the Company or by one or more Subsidiaries of the Company or by the Company and one or more Subsidiaries
of the Company, (ii) any partnership or limited liability company of which 50% or more of the capital and profit interests is owned,
directly or indirectly, by the Company or by one or more Subsidiaries of the Company or by the Company and one or more Subsidiaries of
the Company, or (iii) any other entity not described in clauses (i) or (ii) above of which 50% or more of the ownership
and the power, pursuant to a written contract or agreement, to direct the policies and management or the financial and the other affairs
thereof, are owned or controlled by the Company or by one or more Subsidiaries of the Company or by the Company and one or more Subsidiaries
of the Company.

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SECTION 3

ELIGIBILITY

 

3.1 Participants. Awards may be granted
in the discretion of the Committee to officers, employees, directors of, or consultants to the Company or its Subsidiaries.

 

3.2 Non-Uniformity. Awards granted hereunder
need not be uniform among eligible Participants and may reflect distinctions based on title, compensation, responsibility or any other
factor the Committee deems appropriate.

 

SECTION 4

ADMINISTRATION

 

4.1 The Committee. The Plan will be
administered by the Committee, which, to the extent deemed necessary by the Board, will consist of two or more persons who satisfy the
requirements for a “non-employee director” under Rule 16b-3 promulgated under the 1934 Act. The members of the Committee shall
be appointed from time to time by, and shall serve at the pleasure of, the Board of Directors. In the absence of such appointment, the
Board of Directors shall serve as the Committee and shall have all of the responsibilities, duties, and authority of the Committee set
forth herein.

 

4.2 Authority of the Committee. Subject
to applicable law, the Committee shall have the exclusive authority to administer and construe the Plan in accordance with its provisions.
The Committee’s authority shall include, without limitation, the power to (a) determine persons eligible for Awards, (b) prescribe
the terms and conditions of the Awards, (c) construe and interpret the Plan, the Awards and any Award Agreement, (d) adopt rules for the
administration, interpretation and application of the Plan as are consistent therewith, (e) establish, interpret, amend or revoke any
such rules, and (f) in its sole discretion, provide for acceleration of vesting, exercisability or payment of any Award, including but
not limited to in connection with a Change in Control. The Committee, in its sole discretion and on such terms and conditions as it may
provide, may delegate all or any part of its authority and powers under the Plan to one or more officers of the Company to the extent
permitted by law.

 

4.3 Decisions Binding. All determinations
and decisions made by the Committee and any of its delegates pursuant to Section 4.2 shall be final, conclusive and binding on all persons,
and shall be given the maximum deference permitted by law.

 

4.4 Limitation on Awards Granted to Non-management
directors. The maximum number of Shares issuable pursuant to Awards that may be granted to a Non-management director in any calendar
year shall not exceed 10,000 Shares.

 

SECTION 5

SHARES SUBJECT TO THE PLAN

 

5.1 Number of Shares. Subject to adjustment
as provided in Section 5.3, the total number of Shares available for grant under the Plan shall not exceed 750,000 Shares. The Shares
available for issuance under the Plan shall be authorized but unissued Shares of the Company.

 

5.2 Lapsed Awards. Unless determined
otherwise by the Committee, Shares related to Awards that are forfeited, cancelled, terminated or expire unexercised, shall be available
for grant under the Plan. Shares that are tendered by a Participant to the Company in connection with the exercise of an Award, withheld
from issuance in connection with a Participant’s payment of tax withholding liability, or settled in such other manner so that a
portion or all of the Shares included in an Award are not issued to a Participant shall not be available for grant under the Plan.

 

5.3 Adjustments in Awards and Authorized
Shares. In the event of a stock dividend or stock split, the number of Shares subject to the Plan, outstanding Awards and the numerical
amounts set forth in Sections 5, 6, 7 and 8 shall automatically be adjusted proportionally, except to the extent directed otherwise by
the Committee. In the event of a merger, reorganization, consolidation, recapitalization, separation, liquidation, combination or other
similar change in the structure of the Company affecting the Shares, the Committee shall adjust the number and class of Shares which may
be delivered under the Plan, the number, class and price of Shares subject to outstanding Awards, and the numerical limits of Sections
5, 6, 7 and 8, proportionally or in such other manner as the Committee shall determine to be advisable or appropriate. Any such numerical
limitations shall be subject to adjustment under this Section only to the extent such adjustment will not affect the ability to grant
or the qualification of Incentive Stock Options under the Plan or subject the Participant to taxes, penalties and interest imposed under
section 409A(a)(1) of the Code.

 

5.4 Restrictions on Transferability.
The Committee may impose such restrictions on any Award, Award of Shares or Shares acquired pursuant to an Award as it deems advisable
or appropriate, including, but not limited to, restrictions related to applicable Federal securities laws, the requirements of any national
securities exchange or system upon which Shares are then listed or traded, and any blue sky or state securities laws.

 

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SECTION 6

STOCK OPTIONS

 

6.1 Grant of Options. Subject to the
terms and provisions of the Plan, Options may be granted to Participants at any time and from time to time as determined by the Committee.
The Committee shall determine the number of Shares subject to each Option. The Committee may grant Incentive Stock Options, Nonqualified
Stock Options, or any combination thereof. The maximum aggregate number of Shares underlying Options granted in any one calendar year
to an individual Participant is 50,000.

 

6.2 Award Agreement. Each Option shall
be evidenced by an Award Agreement that shall specify the Exercise Price, the expiration date of the Option, the number of Shares to which
the Option pertains, whether the Option is intended to be an Incentive Stock Option or a Nonqualified Stock Option, any conditions on
exercise of the Option and such other terms and conditions as the Committee shall determine, including terms regarding forfeiture of Awards
or continued exercisability of Awards in the event of a Change in Control or termination of employment by the Participant.

 

6.3 Exercise Price. The Exercise Price
for each Option shall be determined by the Committee and shall be provided in each Award Agreement; provided, however, the
Exercise Price for each Option may not be less than one hundred percent (100%) of the Fair Market Value of a Share on the Grant Date.
In the case of an Incentive Stock Option, the Exercise Price shall be not less than one hundred ten percent (110%) of the Fair Market
Value of a Share if the Participant (together with persons whose stock ownership is attributed to the Participant pursuant to section
424(d) of the Code) owns on the Grant Date stock possessing more than 10% of the total combined voting power of all classes of stock of
the Company or any of its Subsidiaries.

 

6.4 Expiration of Options. Except as
provided in Section 6.7(c) regarding Incentive Stock Options, each Option shall terminate upon the earliest to occur of (i) the date(s)
for termination of the Option set forth in the Award Agreement or (ii) the expiration of ten (10) years from the Grant Date. Subject
to such limits, the Committee shall provide in each Award Agreement when each Option expires and becomes un-exercisable. Except as set
forth in an Award Agreement or as provided by the Committee, upon Retirement of a Participant, an Option may be exercised by such Participant
to the extent it was exercisable on the effective date of the Retirement and shall be exercisable for a period of six months from the
effective date of such Retirement, but not later than the expiration of the maximum term such Option. The Committee may not, after an
Option is granted, extend the maximum term of the Option.

 

6.5 Exercisability of Options. Options
granted under the Plan shall be exercisable, in whole or in part, at such times and be subject to such restrictions and conditions as
the Committee shall determine. After an Option is granted, the Committee may accelerate or waive any condition constituting a substantial
risk of forfeiture applicable to the Option.

 

6.6 Payment. Options shall be exercised
by a Participant’s delivery of a written notice of exercise to the Secretary of the Company (or his or her designee), setting forth
the number of Shares with respect to which the Option is to be exercised, accompanied by full payment for the Shares. Upon the exercise
of an Option, the Exercise Price shall be payable to the Company in full in cash or its equivalent. The Committee may permit exercise
(a) by the Participant tendering previously acquired Shares having an aggregate Fair Market Value at the time of exercise equal to the
total Exercise Price, (b) the Participant tendering a combination of cash and previously acquired Shares equal to total Exercise Price
(the Shares tendered being valued at Fair Market Value at the time of exercise), or (c) by any other means which the Committee determines
to provide legal consideration for the Shares, and to be consistent with the purposes of the Plan. As soon as practicable after receipt
of a written notification of exercise and full payment for the Shares purchased, the Company shall deliver, or cause to be delivered,
to the Participant, evidence of such Participant’s ownership of such Shares. No right to vote or receive dividends or any other
rights as a shareholder shall exist with respect to the Shares as to which the Option has been exercised until the records of the Company
or its transfer agent reflect the issuance of such Shares. No adjustment will be made for a dividend or other rights for which a record
date is established prior to the date the records of the Company or its transfer agent reflect the issuance of the Shares upon exercise
of the Options.

 

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6.7 Certain Additional Provisions for Incentive
Stock Options.

 

(a) Exercisability. The aggregate Fair
Market Value (determined on the Grant Date(s)) of the Shares with respect to which Incentive Stock Options are exercisable for the first
time by any Participant during any calendar year (under all plans of the Company, any parent and its Subsidiaries) shall not exceed $100,000.
The portion of the Option which is in excess of the $100,000 limitation shall be treated as a Non-Qualified Option pursuant to Section
422(d)(1) of the Code.

 

(b) Company and Subsidiaries Only. Incentive
Stock Options may be granted only to Participants who are officers or other employees of the Company or a Subsidiary on the Grant Date.

 

(c) Expiration. No Incentive Stock Option
may be exercised after the expiration of ten (10) years from the Grant Date. In the case of an Incentive Stock Option that is granted
to a Participant who (together with persons whose stock ownership is attributed to the Participant pursuant to Section 424(d) of the Code)
owns on the Grant Date stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or any
of its Subsidiaries, the term of such Incentive Stock Option shall be no more than five years from the Grant Date.

 

6.8 Restriction on Transfer. Except
as otherwise determined by the Committee or as set forth in the Award Agreement, no Option may be transferred, gifted, pledged, assigned,
or otherwise alienated or hypothecated, voluntarily or involuntarily. Upon the death or Disability of a Participant, an Option may be
exercised by the duly appointed personal representative of the deceased Participant or in the event of a Disability by the Participant
or the duly appointed attorney-in-fact, guardian or custodian of the Disabled Participant to the extent the Option was exercisable on
the date of death or the date of Disability and shall be exercisable for a period of six months from the date of death or the date of
Disability.

 

6.9 Repricing of Options. Without stockholder
approval, (i) the Company will not reprice, replace or regrant an outstanding Option either in connection with the cancellation of
such Option or by amending an Award Agreement to lower the exercise price of such Option, and (ii) the Company will not cancel outstanding
Options in exchange for cash or other Awards.

 

6.10 Voting Rights. A Participant shall
have no voting rights with respect to any Options granted hereunder.

 

SECTION 7

RESTRICTED STOCK AND RESTRICTED STOCK UNITS

 

7.1 Grant of Restricted Stock and Restricted
Stock Units. Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant Shares of
Restricted Stock and/or RSUs to Participants in such amounts as the Committee shall determine. The Committee shall determine the number
of Shares of Restricted Stock and/or RSUs to be granted to each Participant and the time when each Award shall be granted. No more than
100,000 Shares of each of Restricted Stock and Shares underlying RSUs may be granted to any individual Participant in any one calendar
year.

 

7.2 Restricted Stock and RSU Agreements.
Each Award of Restricted Stock and RSUs shall be evidenced by an Award Agreement that shall specify the Period of Restriction, the number
of Shares of Restricted Stock granted, the number of Shares subject to an RSU, any applicable Performance Goals and Performance Cycle,
and such other terms and conditions as the Committee shall determine, including terms regarding forfeiture of Awards in the event of termination
of employment by the Participant or termination of the Participant’s relationship with the Company as a director, officer or consultant.

 

7.3 Transferability. Except as otherwise
determined by the Committee or as set forth in the Award Agreement, Shares of Restricted Stock and RSUs (including Shares underlying RSUs)
may not be sold, transferred, gifted, bequeathed, pledged, assigned, or otherwise alienated or hypothecated, voluntarily or involuntarily,
until the end of the applicable Period of Restriction and the satisfaction, in whole or in part, of any applicable Performance Goals within
the applicable Performance Cycle. Without stockholder approval, the Company will not, except as otherwise provided for in the Plan, repurchase
outstanding unvested Restricted Stock or unvested RSUs in exchange for cash.

 

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7.4 Other Restrictions. The Committee
may impose such other restrictions on Shares of Restricted Stock and RSUs (including Shares underlying RSUs) as it may deem advisable
or appropriate in accordance with this Section 7.4.

 

(a) General Restrictions. The Committee
may set one or more restrictions based upon (a) the achievement of specific Performance Goals, (b) applicable Federal or state securities
laws, (c) time-based restrictions, or (d) any other restrictions determined by the Committee, including the occurrence of a Change in
Control. Unless otherwise provided in an Award Agreement, the Period of Restriction shall be a two (2) year cliff vesting period,
with accelerated full vesting upon death, Disability or Retirement.

 

(b) Methods of Implementing Restrictions.
The Committee may take such action as it, in its sole discretion, deems appropriate to give notice to the Participant of, and implement,
the restrictions imposed pursuant to Section 7.

 

7.5 Removal of Restrictions. After the
end of the Period of Restriction, the Shares (including the Shares underlying the RSUs) shall be freely transferable by the Participant,
subject to any other restrictions on transfer (including without limitation, limitations imposed pursuant to the Company’s organizational
documents) which may apply to such Shares.

 

7.6 Voting Rights. Participants holding
(a) Shares of Restricted Stock shall have voting rights during the Period of Restriction and (b) RSUs shall not have voting rights during
the Period of Restriction.

 

7.7 Dividends and Other Distributions.
Except as otherwise determined by the Committee and set forth in the Award Agreement, Participants holding (a) Shares of Restricted Stock
shall be entitled to receive all dividends and other distributions paid with respect to the Shares during the Period of Restriction and
(b) except to the extent a Dividend Equivalent Right is granted in tandem with an RSU, RSUs shall not be entitled to receive any dividends
or other distributions paid with respect to the underlying Shares during the Period of Restriction.

 

SECTION 8

PERFORMANCE-BASED AWARDS

 

8.1 Performance-Based Awards. Participants
selected by the Committee may be granted one or more Performance Awards in the form of Options, Restricted Stock, Restricted Stock Units,
Dividend Equivalent Rights or Performance Share Awards payable upon the attainment of Performance Goals that are established by the Committee
and related to one or more of the Performance Criteria, in each case on a specified date or dates or over a Performance Cycle as determined
by the Committee. The Committee shall define the manner of calculating the Performance Criteria it selects to use for any Performance
Cycle. Depending on the Performance Criteria used to establish such Performance Goals, the Performance Goals may be expressed in terms
of overall Company performance or the performance of an individual. The Committee, in its discretion, may adjust or modify the calculation
of Performance Goals for such Performance Cycle in order to prevent the dilution or enlargement of the rights of an individual (i) in
the event of, or in anticipation of, any unusual or extraordinary corporate item, transaction, event or development, (ii) in recognition
of, or in anticipation of, any other unusual or nonrecurring events affecting the Company, or the financial statements of the Company,
or (iii) in response to, or in anticipation of, changes in applicable laws, regulations, accounting principles, or business conditions;
provided, however, that the Committee may not exercise such discretion in a manner that would increase the Performance-Based Award
granted to a Participant. Performance Awards, other than Dividend Equivalent Rights, shall be paid in Shares.

 

8.2 Grant of Performance-Based Awards.
With respect to each Performance-Based Award granted to a Participant, the Committee shall select, within the first 180 days of the beginning
of a Performance Cycle, the Performance Criteria for such grant, and the Performance Goals with respect to each Performance Criterion
(including, if applicable, a threshold level of performance below which no amount will become payable with respect to such Award). Each
Performance-Based Award will specify the amount payable, or the formula for determining the amount payable, upon achievement of the various
applicable performance targets. The Performance Criteria established by the Committee may be (but need not be) different for each Performance
Cycle and different Performance Goals may be applicable to Performance-Based Awards to different Participants.

 

8.3 Payment of Performance-Based Awards.
Following the completion of a Performance Cycle, the Committee shall meet to review and certify in writing whether, and to what extent,
the Performance Goals for the Performance Cycle have been achieved and, if so, to calculate and certify in writing the amount of the Performance-Based
Awards earned for the Performance Cycle.

 

8.4 Maximum Award Payable. The maximum
Performance-Based Award payable to any one Participant under the Plan for a Performance Cycle is 100,000 Shares (subject to adjustment
as provided in Section 5.3 hereof).

 

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SECTION 9

DIVIDEND EQUIVALENT RIGHTS

 

9.1 Dividend Equivalent-Rights. A Dividend
Equivalent Right may be granted hereunder to any Participant only in tandem with an Award of RSUs or a Performance Based Award (other
than an Award of Restricted Stock or Options). The terms and conditions of Dividend Equivalent Rights shall be specified in the Award
Agreement which shall provide that such Dividend Equivalent Right shall (i) not be sold, transferred, gifted, pledged, assigned,
or otherwise alienated or hypothecated, voluntarily or involuntarily (provided, that if permitted by the Committee, a Participant may
designate a beneficiary to receive any proceeds of Dividend Equivalent Rights upon the Participant’s death), and (ii) be settled
upon settlement or payment of, or lapse of restrictions on, the Award to which it relates, and such Dividend Equivalent Right shall expire
or be forfeited or annulled under the same conditions as such Award.

 

SECTION 10

AMENDMENT, TERMINATION, AND DURATION

 

10.1 Amendment, Suspension, or Termination.
The Board, in its sole discretion, may amend, suspend or terminate the Plan, or any part thereof, at any time and for any reason; provided,
however, that if and to the extent required by law or to maintain the Plan’s compliance with the Code, the rules of any national
securities exchange (if applicable), or any other applicable law, any such amendment shall be subject to stockholder approval. The amendment,
suspension or termination of the Plan shall not, without the consent of the Participant, alter or impair any rights or obligations under
any Award theretofore granted to such Participant. No Award may be granted during any period of suspension or after termination of the
Plan.

 

10.2 Duration of the Plan. The Plan
shall become effective in accordance with Section 1.1, and subject to Section 10.1, shall remain in effect until the tenth anniversary
of the effective date of the Plan.

 

SECTION 11

TAX WITHHOLDING

 

11.1 Withholding Requirements. Prior
to the delivery of any Shares pursuant to an Award (or the exercise thereof), the Company shall have the power and the right to deduct
or withhold from any amounts due to the Participant from the Company, or require a Participant to remit to the Company, an amount sufficient
to satisfy Federal, state and local taxes (including the Participant’s FICA obligation) required or appropriate to be withheld with
respect to such Award (or the exercise or vesting thereof).

 

11.2 Withholding Arrangements. The Company,
pursuant to such procedures as it may specify from time to time, may permit a Participant to satisfy such tax withholding obligation,
in whole or in part, by (a) electing to have the Company withhold otherwise deliverable Shares, or (b) delivering to the Company, Shares
then owned by the Participant. The amount of the withholding requirement shall be deemed to include any amount that the Company agrees
may be withheld at the time any such election is made, not to exceed the amount determined by using the maximum federal, state and local
marginal income tax rates applicable to the Participant with respect to the Award on the date that the amount of tax to be withheld is
to be determined. The Fair Market Value of the Shares to be withheld or delivered shall be determined as of the date that the taxes are
required to be withheld.

 

SECTION 12

MISCELLANEOUS

 

12.1 Deferrals. To the extent consistent
with the requirements of section 409A of the Code, the Committee may provide in an Award Agreement or another document that a Participant
is permitted or required to defer receipt of the delivery of Shares that would otherwise be due to such Participant under an Award, other
than an Option, any such deferral shall be subject to such rules and procedures as shall be determined by the Committee.

 

12.2 Termination for Cause. If a Participant’s
employment or relationship with the Company or a Subsidiary shall be terminated for cause by the Company or such Subsidiary during the
Restriction Period or prior to the exercise of any Option (for these purposes, cause shall have the meaning ascribed thereto in any employment
agreement or Award Agreement to which such Participant is a party or, in the absence thereof, shall include, but not be limited to, insubordination,
dishonesty, incompetence, moral turpitude, the refusal to perform his duties and responsibilities for any reason (other than illness or
incapacity) and other misconduct of any kind, as determined by the Committee), then, (i) all Options (whether or not then vested
and exercisable) shall immediately terminate and (ii) such Participant’s rights to all Restricted Stock, RSUs, Dividend Equivalent
Rights and Performance Share Awards shall be forfeited immediately.

 

    8

     

    

 

12.3 No Effect on Employment or Service;
Types of Service Recognized. Nothing in the Plan, any Award or any Award Agreement, and no action of the Committee, shall confer or
be construed to confer on any Participant any right to continue in the employ or service of the Company or any Subsidiary or shall interfere
with or limit in any way the right of the Company or any Subsidiary to terminate any Participant’s employment or service at any
time, with or without cause. Employment with the Company or any Subsidiary is on an at-will basis only, unless otherwise provided by an
applicable employment or service agreement between the Participant and the Company or any Subsidiary, as the case may be. Except as set
forth in the following sentence, for purposes of the Plan and any Award, service as an employee, officer, director or consultant shall
be recognized; references in the Plan and any Award Agreement to employment shall be construed more broadly to refer to service as an
employee, officer, director or consultant. Notwithstanding the preceding sentence, for purposes of Incentive Stock Options, references
in the Plan or any Award Agreement to employment shall be construed as referring only to employment, and not to other forms of service.

 

12.4 Successors. All obligations of
the Company under the Plan, with respect to Awards granted hereunder, shall be binding on any successor to the Company, whether the existence
of such successor is the result of a direct or indirect merger, consolidation or otherwise, or the purchase of all or substantially all
of the business or assets of the Company.

 

12.5 No Rights as Stockholder. Except
to the limited extent provided in Sections 7.6 and 7.7, no Participant (nor any beneficiary thereof) shall have any of the rights or privileges
of a stockholder of the Company with respect to any Shares issuable pursuant to an Award (or the exercise or vesting thereof), unless
and until the issuance of such Shares shall have been recorded on the records of the Company or its transfer agents or registrars.

 

12.6 Uncertificated Shares. Notwithstanding
any provision of the Plan to the contrary, the ownership of Shares issued under the Plan may be evidenced in such a manner as the Committee,
in its sole discretion, deems appropriate, including by book-entry or direct registration (including transaction advices) or the issuance
of one or more share certificates, and to the extent that the Plan, applicable law or the Company’s organizational documents, require
or contemplate the imposition of a legend or other notation on one or more certificates evidencing Shares or an Award, the Committee shall
have the sole discretion to determine the manner in which such legend or notation is implemented.

 

12.7 Fractional Shares. No fractional
Shares shall be issued or delivered pursuant to the Plan or any Award. The Committee shall determine whether cash, or Awards, or other
property shall be issued or paid in lieu of fractional Shares or whether such fractional Shares or any rights thereto shall be forfeited
or otherwise eliminated.

 

12.8 Severability. In the event any
provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts
of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

 

12.9 Requirements of Law; Claw-Back Policies.
The grant of Awards and the issuance of Shares under the Plan shall be subject to all applicable laws, rules and regulations, and to such
approvals by any governmental agencies or national securities exchanges as may be required from time to time, and shall be subject to
the applicable provisions of any claw-back policy implemented by the Company, whether implemented prior to or after the grant of such
Award, including without limitation, any claw-back policy adopted to comply with the requirements of applicable law (including the requirements
of a national securities exchange).

 

12.10 Securities Law Compliance. To
the extent any provision of the Plan, Award Agreement or action by the Committee fails to comply with any applicable federal or state
securities law, it shall be deemed null and void, to the extent permitted by law and deemed advisable or appropriate by the Committee.

 

12.11 Real Estate Investment Trust.
No Award shall be granted or awarded and, with respect to any Award granted under the Plan, such Award shall not vest, be exercisable
or be settled, to the extent that the grant, vesting, exercise or settlement of such Award could cause the Participant or any other person
to be in violation of any restrictions on ownership and transfer of the Company’s securities set forth in its articles of incorporation
or other governing instrument or organizational documents, as amended, and in effect from time to time, or if, in the discretion of the
Committee, the grant, vesting, exercise or settlement of such award could otherwise impair the Company’s status as a real estate
investment trust under the Code.

 

    9

     

    

 

12.12 Governing Law. The Plan and all
Award Agreements shall be construed in accordance with and governed by the laws of the State of Maryland and applicable federal law.

 

12.13 Captions. Captions are provided
herein for convenience of reference only, and shall not serve as a basis for interpretation or construction of the Plan.

 

12.14 Section 409A of the Code.

 

(a) General. The Company intends that
all Awards be structured to comply with, or be exempt from, Section 409A, such that no adverse tax consequences, interest, or penalties
under Section 409A apply. Notwithstanding anything in the Plan or any Award Agreement to the contrary, the Committee may, without a Participant’s
consent, amend this Plan or Awards, adopt policies and procedures, or take any other actions (including amendments, policies, procedures
and retroactive actions) as are necessary or appropriate to preserve the intended tax treatment of Awards, including any such actions
intended to (i) exempt this Plan or any Award from Section 409A, or (ii) comply with Section 409A, including regulations, guidance,
compliance programs and other interpretative authority that may be issued after an Award’s grant date. The Company makes no representations
or warranties as to an Award’s tax treatment under Section 409A or otherwise. The Company will have no obligation under this Section
12.14 or otherwise to avoid the taxes, penalties or interest under Section 409A with respect to any Award and will have no liability to
any Participant or any other person if any Award, compensation or other benefits under the Plan are determined to constitute noncompliant
“nonqualified deferred compensation” subject to taxes, penalties or interest under Section 409A.

 

(b) Separation from Service. If an Award
constitutes “nonqualified deferred compensation” under Section 409A, any payment or settlement of such Award upon a termination
of a Participant’s employment or other service provider relationship will, to the extent necessary to avoid taxes under Section
409A, be made only upon the Participant’s “separation from service” (within the meaning of Section 409A), whether such
“separation from service” occurs upon or after the termination of the Participant’s employment or other service provider
relationship. For purposes of this Plan or any Award Agreement relating to any such payments or benefits, references to a “termination,”
“termination of employment” or like terms means a “separation from service.”

 

(c) Payments to Specified Employees.
Notwithstanding any contrary provision in the Plan or any Award Agreement, any payment(s) of “nonqualified deferred compensation”
required to be made under an Award to a “specified employee” (as defined under Section 409A and as the Committee determines)
due to his or her “separation from service” will, to the extent necessary to avoid taxes under Section 409A(a)(2)(B)(i) of
the Code, be delayed for the six-month period immediately following such “separation from service” (or, if earlier, until
the specified employee’s death) and will instead be paid (as set forth in the Award Agreement) on the day immediately following
such six-month period or as soon as administratively practicable thereafter (without interest). Any payments of “nonqualified deferred
compensation” under such Award payable more than six months following the Participant’s “separation from service”
will be paid at the time or times the payments are otherwise scheduled to be made. Furthermore, notwithstanding any contrary provision
of the Plan or any Award Agreement, any payment of “nonqualified deferred compensation” under the Plan that may be made in
installments shall be treated as a right to receive a series of separate and distinct payments.

 

12.15. Section 280G of the Code. Notwithstanding
any provision of this Plan to the contrary, if any payment or benefit that a Participant would otherwise receive from the Company pursuant
to an Award under the Plan or otherwise (a “Payment”) would (a) constitute a “parachute payment” within the meaning
of Section 280G of the Code and (b) but for this paragraph, be subject to the excise tax imposed by Section 4999 of the Code (the
“Excise Tax”), then such Payment will be equal to the Reduced Amount (as defined below). The “Reduced Amount”
will be either (1) the largest portion of the Payment that would result in no portion of the Payment (after reduction) being subject to
the Excise Tax or (2) the entire Payment, whichever amount after taking into account all applicable federal, state and local employment
taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate, net of the maximum reduction in federal
income taxes which could be obtained from a deduction of such state and local taxes), results in Participant’s receipt, on an after-tax
basis, of the greatest amount of the Payment. If a reduction is to be made, the Payment or Payments to which reduction will apply will
based on the date as of which the Payment is due, starting with the Payment due latest. In no event will the Company be liable to a Participant
for any amounts not paid as a result of the operation of this paragraph (other than for the Company’s obligations to pay the Reduced
Amount or the entire Payment, as applicable). The Company makes no representation that any or all of the payments or benefits described
in the Plan will be exempt from the Excise Tax, and the Participant shall be responsible for payment of any Excise Tax (if applicable).

 

 

10Exhibit 10.1 
 

WARRANT REPURCHASE AGREEMENT
 
This Warrant Repurchase Agreement (the “Agreement”) is entered into as of this 8th day of June, 2022, by and between ToughBuilt Industries, Inc., a Nevada corporation with offices located at 25371 Commercentre Drive, Suite 200, Lake Forest, CA 92630 (the “Company”), and the Holder signatory hereto (the “Holder”), with reference to the following facts:
 
A.           Prior to the date hereof, (i) pursuant to that certain Securities Purchase Agreement, dated as of August 19, 2019, by and between the Company and the investors party thereto (as amended, the “Securities Purchase Agreement”), the Company issued to such investors, among other things, (x) Series A Notes (as defined in the Securities Purchase Agreement), (y) Series B Notes (as defined in the Securities Purchase Agreement), in accordance with the terms thereof and (z) the Warrants (as defined in the Securities Purchase Agreement). Capitalized terms used but not otherwise defined herein shall have the meanings as set forth in the Securities Purchase Agreement (as amended hereby).
 
B.            On November 20, 2020, pursuant to that certain Exchange Agreement, dated November 20, 2020, by and between the Company and the Holder (the “Exchange Agreement”), the Company exchanged the Warrant originally issued to the Holder pursuant to the Securities Purchase Agreement for a new warrant to purchase 575,000 shares of Common Stock (adjusted to 38,334 for the Company’s 1-for-150 reverse stock split on April 25, 2022) (the “Exchange Warrant”) for $1.00 per share (adjusted to $150.00 per share for the reverse stock split) until April 19, 2024.
 
C.          In connection with the Company’s February 2022 registered direct offering, the Company amended the Exchange Warrant to be exercisable for 11,500,001 shares of common stock (76,667 shares of common stock after adjustment for the 1-for-150 reverse stock split) for an exercise price of $0.05 per share ($7.50 per share after adjustment for the reverse stock split), subject to adjustment, until the Expiration Date.
 
D.           As of the date hereof, the Holder holds such portion of the Exchange Warrant, which as of the date hereof is exercisable into 62,700 shares of Common Stock (without regard to any limitation on exercise set forth therein) (such portion of the Exchanged Warrant outstanding as of the Purchase Time (as defined below), the “Repurchase Warrant”).
 
E.             The Company has entered into an engagement letter with H.C. Wainwright, & Co. (“HCW”), pursuant to which the Company desires to consummate an offering of securities of the Company on or prior to June 24, 2022 (or such later date as the parties shall mutually agree)(the “New Offering”).
 
F.             The Company desires to purchase, and the Holder desires to sell, on the basis and subject to the terms and conditions set forth in this Agreement, the Repurchase Warrant for a purchase price of $2.5 million (the “Purchase Price”).
 
G.           Effective as of the Effective Time (as defined below), the Company and the Holder shall amend and restate Section 4(o) of the Securities Purchase Agreement in accordance with Section 2 below (the “Amendment”).

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants hereinafter contained, the sufficiency of which is acknowledged by the parties, the parties hereto agree as follows:
 
1.             Repurchase.
 
(a)          On the terms and subject to the conditions set forth herein, upon the payment in full of the Purchase Price to the Holder, the Holder hereby sells, assigns, delivers and transfers to the Company all of its right, title and interest in and to the Repurchase Warrant (collectively, the “Repurchase” and together with the Amendment, the “Transactions”). Simultaneously with the receipt of the Purchase Price, in full, by the Holder (the “Purchase Time”), the Repurchase Warrant shall be deemed cancelled and of no further force and effect.
 
(b)           The Purchase Price shall be paid in U.S. dollars and immediately available funds as follows:
 
(i)           $1 million at the closing of the New Offering and from the proceeds of the New Offering in accordance with the Holder’s written wire instructions incorporated into the flow of funds letter for the New Offering; and
 
(ii)           $1.5 million by no later than one (1) Business Day after the closing of the New Offering from the cash of the Company in accordance with the Holder’s written wire instructions.
 
(c)          This Agreement shall be deemed to be effective (the “Effective Time”) upon the time of full execution and delivery by the parties hereto of this Agreement.
 
(d)           Until the Purchase Price has been paid in full to the Holder in accordance herewith and the Repurchase Warrant is cancelled, other than exercise limitations pursuant to Section 1(f)(i) (Beneficial Ownership) thereof, the Repurchase Warrant may be exercised by the Holder without any restriction pursuant to any and all provisions provided for in the Repurchase Warrant, including but not limited to the Alternate Net Number calculation pursuant to Section 1(d) thereof.
 
2.             Ratifications; Amendment.
 
(a)           Ratifications. Except as otherwise expressly provided herein, the Securities Purchase Agreement, and each other Transaction Document, is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects, except that on and after the date hereof: (i) all references in the Securities Purchase Agreement to “this Agreement,” “hereto,” “hereof,” “hereunder” or words of like import referring to the Securities Purchase Agreement shall mean the Securities Purchase Agreement as amended by this Agreement, and (ii) all references in the other Transaction Documents to the “Securities Purchase Agreement,” “thereto,” “thereof,” “thereunder” or words of like import referring to the Securities Purchase Agreement shall mean the Securities Purchase Agreement as amended by this Agreement.

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(b)           Amendment. Effective as of the Purchase Time, the Securities Purchase Agreement is hereby amended as follows:
 
(i)           The defined term “Transaction Documents” is hereby amended to include this Agreement.
 
(ii)           Section 4(o) of the Securities Purchase Agreement is hereby amended and restated as follows:
 
Participation Right. During the period commencing on the date hereof through December 31, 2024, neither the Company nor any of its Subsidiaries shall, directly or indirectly, effect any Subsequent Placement unless the Company shall have first complied with this Section 4(o). The Company acknowledges and agrees that the right set forth in Section 4(o) is a right granted by the Company, separately, to each Buyer.
 
(i)           Between the time period of 4:00 pm (New York City time) and 6:00 pm (New York City time) on the 2nd Trading Day immediately prior to the Trading Day of the expected announcement of the Subsequent Placement (or, if the Trading Day of the expected announcement of the Subsequent Placement is the first Trading Day following a holiday or a weekend (including a holiday weekend), between the time period of 4:00 pm (New York City time) on the 3rd Trading Day immediately prior to such holiday or weekend and 2:00 pm (New York City time) on the day immediately prior to the 2nd Trading Day of the expected announcement of the Subsequent Placement), the Company shall deliver to each Buyer a written notice (each such notice, a “Pre-Notice”), which Pre-Notice shall not contain any information (including, without limitation, material, non-public information) other than: (A) if the proposed Offer Notice (as defined below) constitutes or contains material, non-public information, a statement asking whether such Buyer is willing to accept material non-public information or (B) if the proposed Offer Notice does not constitute or contain material, non-public information, (x) a statement that the Company proposes or intends to effect a Subsequent Placement, (y) a statement that the statement in clause (x) above does not constitute material, non-public information and (z) a statement informing such Buyer that it is entitled to receive an Offer Notice (as defined below) with respect to such Subsequent Placement upon its written request. Upon the written request of a Buyer prior to 8:30 am (New York City time) on the Trading Day following the date on which such Pre-Notice is delivered to such Buyer, and only upon a written request by such Buyer, the Company shall promptly, but no later than one (1) Trading Day after such request, deliver to such Buyer an irrevocable written notice (the “Offer Notice”) of any proposed or intended issuance or sale or exchange (the “Offer”) of the securities being offered (the “Offered Securities”) in a Subsequent Placement, which Offer Notice shall (A) identify and describe the Offered Securities, (B) describe the price and other terms upon which they are to be issued, sold or exchanged, and the number or amount of the Offered Securities to be issued, sold or exchanged, (C) identify the Persons (if known) to which or with which the Offered Securities are to be offered, issued, sold or exchanged and (D) offer to issue and sell to or exchange with such Buyer in accordance with the terms of the Offer such Buyer’s pro rata portion of 50% of the Offered Securities, provided that the number of Offered Securities which such Buyer shall have the right to subscribe for under this Section 4(o) shall be (x) based on such Buyer’s pro rata portion of the aggregate number of Purchased Shares purchased hereunder by all Buyers (the “Basic Amount”), and (y) with respect to each Buyer that elects to purchase its Basic Amount, any additional portion of the Offered Securities attributable to the Basic Amounts of other Buyers as such Buyer shall indicate it will purchase or acquire should the other Buyers subscribe for less than their Basic Amounts (the “Undersubscription Amount”), which process shall be repeated until each Buyer shall have an opportunity to subscribe for any remaining Undersubscription Amount. 

		3	

(ii)           To accept an Offer, in whole or in part, such Buyer must deliver a written notice to the Company prior to 8:30 am (New York City time) on the Trading Day following the date on which the Offer Notice is delivered to such Buyer (such period, the “Offer Period”), setting forth the portion of such Buyer’s Basic Amount that such Buyer elects to purchase and, if such Buyer shall elect to purchase all of its Basic Amount, the Undersubscription Amount, if any, that such Buyer elects to purchase (in either case, the “Notice of Acceptance”). If the Basic Amounts subscribed for by all Buyers are less than the total of all of the Basic Amounts, then each Buyer who has set forth an Undersubscription Amount in its Notice of Acceptance shall be entitled to purchase, in addition to the Basic Amounts subscribed for, the Undersubscription Amount it has subscribed for; provided, however, if the Undersubscription Amounts subscribed for exceed the difference between the total of all the Basic Amounts and the Basic Amounts subscribed for (the “Available Undersubscription Amount”), each Buyer who has subscribed for any Undersubscription Amount shall be entitled to purchase only that portion of the Available Undersubscription Amount as the Basic Amount of such Buyer bears to the total Basic Amounts of all Buyers that have subscribed for Undersubscription Amounts, subject to rounding by the Company to the extent it deems reasonably necessary. Notwithstanding the foregoing, if the Company desires to modify or amend the terms and conditions of the Offer after the expiration of the Offer Period, the Company may deliver to each Buyer a new Offer Notice and the Offer Period shall expire at 6:30 am (New York City time) on the Trading Day following the date after such Buyer’s receipt of such new Offer Notice. 

		4	

(iii)           The Company shall have five (5) Business Days from the expiration of the Offer Period above (A) to offer, issue, sell or exchange all or any part of such Offered Securities as to which a Notice of Acceptance has not been given by a Buyer (the “Refused Securities”) pursuant to a definitive agreement(s) (the “Subsequent Placement Agreement”), but only to the offerees described in the Offer Notice (if so described therein) and only upon terms and conditions (including, without limitation, unit prices and interest rates) that are not more favorable to the acquiring Person or Persons or less favorable to the Company than those set forth in the Offer Notice and (B) to publicly announce (x) the execution of such Subsequent Placement Agreement, and (y) either (I) the consummation of the transactions contemplated by such Subsequent Placement Agreement or (II) the termination of such Subsequent Placement Agreement, which shall be filed with the SEC on Form 8-K with such Subsequent Placement Agreement and any documents contemplated therein filed as exhibits thereto (if such day is a holiday, or weekend or if the U.S. Securities and Exchange Commission (the “SEC”) is closed or is not accepting EDGAR filings, then the first day thereafter that the SEC is open and resumes accepting EDGAR filings). For the avoidance of doubt, the Company must provide the Buyers with a second Subsequent Placement Notice, and the Buyers will again have the right of participation set forth above in this Section 4(q), if the definitive agreement related to the initial Subsequent Placement Notice is not entered into for any reason on the terms set forth in such Offer Notice within two (2) Trading Days after the date of delivery of the initial Offer Notice.
 
(iv)           In the event the Company shall propose to sell less than all the Refused Securities (any such sale to be in the manner and on the terms specified in Section 4(o)(ii) above), then each Buyer may, at its sole option and in its sole discretion, reduce the number or amount of the Offered Securities specified in its Notice of Acceptance to an amount that shall be not less than the number or amount of the Offered Securities that such Buyer elected to purchase pursuant to Section 4(o)(ii) above multiplied by a fraction, (A) the numerator of which shall be the number or amount of Offered Securities the Company actually proposes to issue, sell or exchange (including Offered Securities to be issued or sold to Buyers pursuant to this Section 4(o) prior to such reduction) and (B) the denominator of which shall be the original amount of the Offered Securities. In the event that any Buyer so elects to reduce the number or amount of Offered Securities specified in its Notice of Acceptance, the Company may not issue, sell or exchange more than the reduced number or amount of the Offered Securities unless and until such securities have again been offered to the Buyers in accordance with Section 4(o)(i) above. 

		5	

(v)            Upon the closing of the issuance, sale or exchange of all or less than all of the Refused Securities, such Buyer shall acquire from the Company, and the Company shall issue to such Buyer, the number or amount of Offered Securities specified in its Notice of Acceptance, as reduced pursuant to Section 4(o)(iv) above if such Buyer has so elected, upon the terms and conditions specified in the Offer. The purchase by such Buyer of any Offered Securities is subject in all cases to the preparation, execution and delivery by the Company and such Buyer of a separate purchase agreement relating to such Offered Securities reasonably satisfactory in form and substance to such Buyer and its counsel.
 
(vi)             Any Offered Securities not acquired by a Buyer or other Persons in accordance with this Section 4(o) may not be issued, sold or exchanged until they are again offered to such Buyer under the procedures specified in this Agreement.
 
(vii)          The Company and each Buyer agree that if any Buyer elects to participate in the Offer, neither the Subsequent Placement Agreement with respect to such Offer nor any other transaction documents related thereto (collectively, the “Subsequent Placement Documents”) shall include any term or provision whereby such Buyer shall be required to agree to any restrictions on trading as to any securities of the Company or be required to consent to any amendment to or termination of, or grant any waiver, release or the like under or in connection with, any agreement previously entered into with the Company or any instrument received from the Company.
 
(viii)            Notwithstanding anything to the contrary in this Section 4(o) and unless otherwise agreed to by such Buyer, the Company shall either confirm in writing to such Buyer that the transaction with respect to the Subsequent Placement has been abandoned or shall publicly disclose its intention to issue the Offered Securities, in either case, in such a manner such that such Buyer will not be in possession of any material, non-public information, by 9:30 am (New York city time) on the second (2nd) Business Day following delivery of the Offer Notice. If by 9:30 am (New York city time) on such second (2nd) Business Day, no public disclosure regarding a transaction with respect to the Offered Securities has been made, and no notice regarding the abandonment of such transaction has been received by such Buyer, such transaction shall be deemed to have been abandoned and such Buyer shall not be in possession of any material, non-public information with respect to the Company or any of its Subsidiaries. Should the Company decide to pursue such transaction with respect to the Offered Securities, the Company shall provide such Buyer with another Offer Notice and such Buyer will again have the right of participation set forth in this Section 4(o). 

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(ix)           The Company shall not circumvent the provisions of this Section 4(o) by providing terms or conditions to one Buyer that are not provided to all Buyers.
 
		3.	Series E Preferred Stock Redemption.     Upon the closing of the transactions contemplated by this Agreement, the Company shall redeem the nine shares of Series E Non-Convertible Stock (the “Series E Preferred Stock”) of the Company held by the Holder for $1.00 per share of Series E Preferred Stock pursuant to the Certificate of Designation of the Series E Preferred Stock.

 
4.             Representations and Warranties.     Except as set forth in the correspondingly numbered Section of the Disclosure Schedules, the Company represents and warrants to Holder that the statements contained in this Section 5 are true and correct as of the date hereof and will be at the Effective Time:
 
  (a)           Organization and Qualification.    Each of the Company and each of its Subsidiaries are entities duly organized and validly existing and in good standing under the laws of the jurisdiction in which they are formed, and have the requisite power and authority to own their properties and to carry on their business as now being conducted and as presently proposed to be conducted. Each of the Company and each of its Subsidiaries is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not reasonably be expected to have a Material Adverse Effect (as defined below). As used in this Agreement, “Material Adverse Effect” means any material adverse effect on (i) the business, properties, assets, liabilities, operations (including results thereof), condition (financial or otherwise) or prospects of the Company or any Subsidiary, individually or taken as a whole, (ii) the transactions contemplated hereby or (iii) the authority or ability of the Company to perform the Transactions or any other obligation under this Agreement. Other than the Persons (as defined below) listed in the SEC Documents (as defined in Section 5(h) below), the Company has no Subsidiaries. “Subsidiaries” means any Person in which the Company, directly or indirectly, (I) owns any of the outstanding capital stock or holds any equity or similar interest of such Person or (II) controls or operates all or any part of the business, operations or administration of such Person, and each of the foregoing, is individually referred to herein as a “Subsidiary.” For purposes of this Agreement, (x) “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and any Governmental Entity or any department or agency thereof and (y) “Governmental Entity” means any nation, state, county, city, town, village, district, or other political jurisdiction of any nature, federal, state, local, municipal, foreign, or other government, governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal), multi-national organization or body; or body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature or instrumentality of any of the foregoing, including any entity or enterprise owned or controlled by a government or a public international organization or any of the foregoing.

		7	

(b)           Authorization and Binding Obligation. The Company has the requisite corporate power and authority to enter into and perform its obligations under this Agreement and to consummate the Transactions. The execution and delivery of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby and thereby, has been duly authorized by the Company’s Board of Directors and no further filing, consent, or authorization is required by the Company, its Board of Directors or its stockholders. This Agreement has been duly executed and delivered by the Company, and constitute the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies and except as rights to indemnification and to contribution may be limited by federal or state securities laws.
 
(c)           No Conflicts. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby will not (i) result in a violation of the Articles of Incorporation (as defined below) or any other organizational documents of the Company or any of its Subsidiaries, any capital stock of the Company or any of its Subsidiaries or Bylaws (as defined below) of the Company or any of its Subsidiaries, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party, or (iii) to the Knowledge of the Company, result in a violation of any law, rule, regulation, order, judgment or decree (including foreign, federal and state securities laws and regulations and the rules and regulations of the Nasdaq Capital Market (the “Principal Market”) and including all applicable federal laws, rules and regulations) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound or affected. For purposes of this Agreement, the term “Knowledge of the Company” or any other similar knowledge qualification, means the actual or constructive knowledge of any director or officer of the Company, after due inquiry.

		8	

(d)           No Consents. Neither the Company nor any Subsidiary is required to obtain any consent from, authorization or order of, or make any filing or registration with the Securities and Exchange Commission (the “SEC”) or state securities agencies, any court, governmental agency or any regulatory or self-regulatory agency or any other Person in order for it to execute, deliver or perform any of its respective obligations under or contemplated by this Agreement in accordance with the terms hereof. All consents, authorizations, orders, filings and registrations which the Company or any Subsidiary is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof, and neither the Company nor any of its Subsidiaries are aware of any facts or circumstances which might prevent the Company or any of its Subsidiaries from obtaining or effecting any of the Transactions. Except as disclosed in the SEC Documents (as defined in Section 5(h) below), the Company is not in violation of the requirements of the Principal Market and has no knowledge of any facts or circumstances which would reasonably lead to delisting or suspension of the Common Stock in the foreseeable future.
 
(e)           Solvency. Neither the Company nor any of its Subsidiaries has taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency, reorganization, receivership, liquidation or winding up, nor does the Company or any Subsidiary have any knowledge or reason to believe that any of their respective creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact which would reasonably lead a creditor to do so. The Company and its Subsidiaries, individually and on a consolidated basis, are not as of the date hereof, and after giving effect to the transactions contemplated hereby to occur on the date hereof, will not be Insolvent (as defined below). For the purpose of this Agreement (x) “Insolvent” means, (i) with respect to the Company and its Subsidiaries, on a consolidated basis, (A) the present fair saleable value of the Company’s and its Subsidiaries’ assets is less than the amount required to pay the Company’s and its Subsidiaries’ total Indebtedness (as defined below), (B) the Company and its Subsidiaries are unable to pay their debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured or (C) the Company and its Subsidiaries intend to incur or believe that they will incur debts that would be beyond their ability to pay as such debts mature; and (ii) with respect to the Company and each Subsidiary, individually, (A) the present fair saleable value of the Company’s or such Subsidiary’s (as the case may be) assets is less than the amount required to pay its respective total Indebtedness, (B) the Company or such Subsidiary (as the case may be) is unable to pay its respective debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured or (C) the Company or such Subsidiary (as the case may be) intends to incur or believes that it will incur debts that would be beyond its respective ability to pay as such debts mature; (y) “Indebtedness” of any Person means, without duplication (A) all indebtedness for borrowed money, (B) all obligations issued, undertaken or assumed as the deferred purchase price of property or services (including, without limitation, “capital leases” in accordance with GAAP) (other than trade payables entered into in the ordinary course of business consistent with past practice), (C) all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar instruments, (D) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property, assets or businesses, (E) all indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property), (F) all monetary obligations under any leasing or similar arrangement which, in connection with GAAP, consistently applied for the periods covered thereby, is classified as a capital lease, (G) all indebtedness referred to in clauses (A) through (F) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien upon or in any property or assets (including accounts and contract rights) owned by any Person, even though the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness, and (H) all Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (A) through (G) above; and (z) “Contingent Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to any Indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will be protected (in whole or in part) against loss with respect thereto.

		9	

(f)           Indebtedness and Other Contracts. Neither the Company nor any of its Subsidiaries, (i) except as disclosed in the SEC Documents, has any outstanding debt securities, notes, credit agreements, credit facilities or other agreements, documents or instruments evidencing Indebtedness of the Company or any of its Subsidiaries or by which the Company or any of its Subsidiaries is or may become bound, (ii) is a party to any contract, agreement or instrument, except as disclosed in the SEC Documents, the violation of which, or default under which, by the other party(ies) to such contract, agreement or instrument could reasonably be expected to result in a Material Adverse Effect, (iii) has any financing statements securing obligations in any amounts filed in connection with the Company or any of its Subsidiaries, except as disclosed in the SEC Documents; (iv) is in violation of any term of, or in default under, any contract, agreement or instrument relating to any Indebtedness, except where such violations and defaults would not result, individually or in the aggregate, in a Material Adverse Effect, or (v) is a party to any contract, agreement or instrument relating to any Indebtedness, the performance of which, in the judgment of the Company’s officers, has or is expected to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries have any liabilities or obligations required to be disclosed in the SEC Documents which are not so disclosed in the SEC Documents, other than those incurred in the ordinary course of the Company’s or its Subsidiaries’ respective businesses and which, individually or in the aggregate, do not or could not have a Material Adverse Effect.

		10	

(g)           Litigation. Except as otherwise disclosed by the Company in its SEC Documents, there is no action, suit, arbitration, proceeding, inquiry or investigation before or by the Principal Market, any court, public board, other Governmental Entity, self-regulatory organization or body pending or, to the Knowledge of the Company, threatened against or affecting the Company or any of its Subsidiaries, the Common Stock or any of the Company’s or its Subsidiaries’ officers or directors that would reasonably be expected to have a Material Adverse Effect on the Company or its Subsidiaries, whether of a civil or criminal nature or otherwise, in their capacities as such, except as disclosed in the SEC Documents. No director, officer or employee of the Company or any of its Subsidiaries has willfully violated 18 U.S.C. §1519 or engaged in spoliation in reasonable anticipation of litigation. Without limitation of the foregoing, there has not been, and to the Knowledge of the Company, there is not pending or contemplated, any investigation by the SEC involving the Company, any of its Subsidiaries or any current or former director or officer of the Company or any of its Subsidiaries. The SEC has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company under the 1933 Act or the 1934 Act. Neither the Company nor any of its Subsidiaries is subject to any order, writ, judgment, injunction, decree, determination or award of any Governmental Entity.
 
(h)           Disclosure. The Company confirms that neither it nor any other Person acting on its behalf has provided the Holder or its agents or counsel with any information that constitutes or would reasonably be expected to constitute material, non-public information concerning the Company or any of its Subsidiaries, other than the existence of the transactions contemplated by this Agreement. The Company understands and confirms that the Holder will rely on the foregoing representations in effecting transactions in securities of the Company. All disclosure provided to the Holder regarding the Company and its Subsidiaries, their businesses and the transactions contemplated hereby, furnished by or on behalf of the Company or any of its Subsidiaries is true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. No event or circumstance has occurred or information exists with respect to the Company or any of its Subsidiaries or its or their business, properties, liabilities, prospects, operations (including results thereof) or conditions (financial or otherwise), which, under applicable law, rule or regulation, requires public disclosure at or before the date hereof or announcement by the Company but which has not been so publicly announced or disclosed.
 
5.            Holder’s Representations and Warranties. As a material inducement to the Company to enter into this Agreement and consummate the Transactions, the Holder represents, warrants and covenants with and to the Company as of the date hereof and the Effective Time, as follows:

		11	

(i)           Validity; Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Holder and shall constitute the legal, valid and binding obligations of the Holder enforceable against the Holder in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.
 
(j)           No Conflicts. The execution, delivery and performance by the Holder of this Agreement, and the consummation by the Holder of the transactions contemplated hereby will not (i) result in a violation of the organizational documents of the Holder or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Holder is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to the Holder, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of the Holder to perform its obligations hereunder.
 
(k)           Ownership of Repurchase Warrant. The Holder owns the Repurchase Warrant free and clear of any liens (other than the obligations pursuant to this Agreement and applicable securities laws).
 
6.            Disclosure of Transaction. The Company shall, on or before 8:30 a.m., New York City Time, on June 8, 2022, file a Current Report on Form 8-K describing the terms of the transactions contemplated hereby in the form required by the 1934 Act and attaching this Agreement as an exhibit to such filing (excluding schedules, the “8-K Filing”). From and after the filing of the 8-K Filing, the Company shall have disclosed all material, non-public information (if any) provided up to such time to the Holder by the Company or any of its Subsidiaries or any of their respective officers, directors, employees or agents. In addition, upon the filing of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement with respect to the Transactions or as otherwise disclosed in the 8-K Filing, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, affiliates, employees or agents, on the one hand, and any of the Holder or any of their affiliates, on the other hand, shall terminate. Neither the Company, its Subsidiaries nor the Holder shall issue any press releases or any other public statements with respect to the transactions contemplated hereby; provided, however, the Company shall be entitled, without the prior approval of the Holder, to issue a press release or make such other public disclosure with respect to such transactions (i) in substantial conformity with the 8-K Filing and contemporaneously therewith or (ii) as is required by applicable law and regulations (provided that in the case of clause (i) the Holder shall be consulted by the Company in connection with any such press release or other public disclosure prior to its release). Without the prior written consent of the Holder (which may be granted or withheld in the Holder’s sole discretion), except as required by applicable law, the Company shall not (and shall cause each of its Subsidiaries and affiliates to not) disclose the name of the Holder in any filing, announcement, release or otherwise. 

		12	

7.           Fees. The Company shall reimburse Kelley Drye & Warren, LLP (counsel to the lead Holder) in an aggregate non-accountable amount of $10,000 (the “Legal Fee Amount”) for costs and expenses incurred by it in connection with drafting and negotiation of this Agreement. Each party to this Agreement shall bear its own expenses in connection with the structuring, documentation, negotiation and closing of the transactions contemplated hereby, except as provided in the previous sentence and except that the Company shall be responsible for the payment of any placement agent’s fees, financial advisory fees and any wire transfer fees relating to or arising out of the transactions contemplated hereby.
 
8.           Most Favored Nation. The Company hereby represents and warrants as of the date hereof and covenants and agrees that none of the terms offered to any Person with respect to any repurchase of any currently outstanding warrants to purchase shares of Common Stock (or other similar instrument), including, without limitation with respect to any consent, release, amendment, settlement, or waiver relating thereto (each an “Settlement Document”), is or will be more favorable to such Person (other than any reimbursement of legal fees) than those of the Holder and this Agreement. If, and whenever on or after the date hereof, the Company enters into a Settlement Document, then (i) the Company shall provide notice thereof to the Holder promptly following the occurrence thereof and (ii) the terms and conditions of this Agreement shall be, without any further action by the Holder or the Company, automatically amended and modified in an economically and legally equivalent manner such that the Holder shall receive the benefit of the more favorable terms and/or conditions (as the case may be) set forth in such Settlement Document, provided that upon written notice to the Company at any time the Holder may elect not to accept the benefit of any such amended or modified term or condition, in which event the term or condition contained in this Agreement shall apply to the Holder as it was in effect immediately prior to such amendment or modification as if such amendment or modification never occurred with respect to the Holder. The provisions of this Section 14 shall apply similarly and equally to each Settlement Document.
 
9.           Independent Nature of Holder’s Obligations and Rights. The obligations of the Holder under this Agreement are several and not joint with the obligations of any other holder of securities of the Company (each, an “Other Holder”), and the Holder shall not be responsible in any way for the performance of the obligations of any Other Holder under any other agreement by and between the Company and any Other Holder (each, an “Other Agreement”). Nothing contained herein or in any Other Agreement, and no action taken by the Holder pursuant hereto, shall be deemed to constitute the Holder and Other Holders as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Holder and Other Holders are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement or any Other Agreement and the Company acknowledges that, to the best of its knowledge, the Holder and the Other Holders are not acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement or any Other Agreement. The Company and the Holder confirm that the Holder has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. The Holder shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement, and it shall not be necessary for any Other Holder to be joined as an additional party in any proceeding for such purpose.

		13	

10.           Miscellaneous.
 
(a)           Successors and Assigns. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the parties hereto and the respective successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party, other than the parties hereto or their respective successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.
 
(b)           Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state or federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.
 
(c)          Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.
 
(d)           Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon delivery, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party) or by electronic mail; or (iii) one Trading Day after deposit with an overnight courier service, in each case properly addressed to the party to receive the same. The addresses, facsimile numbers and e-mail addresses for such communications shall be as set forth on the signature pages attached hereto or to such other address, facsimile number and/or e-mail address and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine or e-mail containing the time, date, recipient facsimile number and an image of the first page of such transmission or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above, respectively.

		14	

(e)           Broker and Finder’s Fees. Each party represents that it neither is nor will be obligated for any finders’ fee or broker commission in connection with this transaction.
 
(f)          Amendments and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the Holder, or successor and assignee as provided under this Agreement.
 
(g)            Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms so long as this Agreement as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).
 
(h)          Entire Agreement. This Agreement represents the entire agreement and understandings between the parties concerning the Transactions and the other matters described herein and therein and supersedes and replaces any and all prior agreements and understandings solely with respect to the subject matter hereof and thereof. Except as expressly set forth herein, nothing herein shall amend, modify or waive any term or condition of the other Transaction Documents.
 
(i)            Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
 
(j)          Interpretation. Unless the context of this Agreement clearly requires otherwise, (i) references to the plural include the singular, the singular the plural, the part the whole, (ii) references to any gender include all genders, (iii) “including” has the inclusive meaning frequently identified with the phrase “but not limited to” and (iv) references to “hereunder” or “herein” relate to this Agreement. 

		15	

(k)          No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.
 
(l)           Survival. The representations, warranties and covenants of the Company and the Holder contained herein shall survive the consummation of the Transactions and the issuance and delivery of the New Securities.
 
(m)         Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.
 
(n)          No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.
 
(o)          Termination. This Agreement shall automatically terminate and, other than the Company’s obligations pursuant to Section 6 above, shall be null in void upon the earliest of (x) June 24, 2022 (or such later date as the Holder shall approve in writing, which may be an e-mail), solely to the extent the Purchase Price has not been paid in full to the Holder on or prior to such date or (y) the failure by the Company to comply with any provision of the Warrant, including but not limited to processing any exercises and/or delivering shares in a timely manner, in accordance with the Warrant provisions.
   
[SIGNATURE PAGE FOLLOWS] 

		16	

IN WITNESS WHEREOF, the Company and the Holder have each executed this Agreement as of the date set forth on the first page of this Agreement.
 

	 	COMPANY:	 
	 	 	 
	 	TOUGHBUILT INDUSTRIES, INC.	 
	 	 	 
	 	By:	 /s/ Michael Panosian	 
	 	 	Name: Michael Panosian	 
	 	 	Title: Chief Executive Officer	 

	 	 	 
	 	Address:	 
	 	25371 Commercentre Drive, Suite 200	 
	 	Lake Forest, CA 92630	 

 

[REPURCHASE AGREEMENT SIGNATURE PAGE]

		17	

IN WITNESS WHEREOF, the Holder and Company have executed this Agreement as of the date set forth on the first page of this Agreement.
 
	 	HOLDER:	 
	 	 	 
	 	ALTO OPPORTUNITY MASTER FUND, SPC 	 
	 	- SEGREGATED MASTER PORTFOLIO B	 
	 	 	 
	 	By:	 /s/ Waqas Khatri	 
	 	 	Name: Waqas Khatri	 
	 	 	Title: Director	 

 
[REPURCHASE AGREEMENT SIGNATURE PAGE]

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