Document:

Exhibit 10.1

 

SUBSCRIPTION,
Voting AND REDEMPTION Agreement

 

BETWEEN

 

EXELA
TECHNOLOGIES, INC.

 

and

 

gp-hgm
llc

 

MAY 19, 2022

 

     

     

    

 

SUBSCRIPTION,
Voting AND REDEMPTION Agreement

  

This Subscription,
Voting and Redemption Agreement (the “Agreement”) is made as of the 19th day of May, 2022, between Exela
Technologies, Inc., a Delaware corporation (the “Company”) and GP-HGM LLC (the “Holder”,
together with the Company, the “Parties” and each a “Party”).

 

WHEREAS, the Nasdaq
Stock Market has notified the Company that the Company is not in compliance with the $1.00 minimum bid price requirement for the Company’s
common stock (the “Common Stock”) to remain listed on the Nasdaq Capital Market, and the Company’s board of directors
(the “Board of Directors”) has proposed an amendment to the certificate of incorporation of the Company to effect a
reverse stock split of between 1 for 2 and 1 for 20 (the “Reverse Stock Split”) with the primary intent of increasing
the price of the Common Stock in order to meet that requirement (the “Reverse Stock Split Proposal”);

 

WHEREAS, the Company
believes that it is in the best interests of the Company and its shareholders to increase the number of authorized shares of Preferred
Stock of the Company by up to an additional 20,000,000 shares (the “Preferred Stock Increase”) and the Company’s
board of directors has proposed an amendment to the Company’s Second Amended and Restated Certificate of Incorporation (the “Preferred
Stock Increase Amendment”) to be submitted for stockholder approval at the Company’s annual meeting (the “Preferred
Stock Increase Proposal”);

 

WHEREAS, in order for
each of the Reverse Stock Split Proposal and the Preferred Stock Increase Proposal to be adopted, each must be approved by the holders
of a majority in voting power of the outstanding shares of capital stock entitled to vote thereon;

 

WHEREAS, the Board
of Directors believes that the delisting of the Common Stock from the Nasdaq Capital Market would likely have a material adverse effect
on the liquidity of the market for the Common Stock and the price at which the Common Stock would trade;

 

WHEREAS, the Board
of Directors is concerned that while the holders of the Company’s Common Stock and Tandem Preferred Stock may favor the Reverse
Stock Split and the Preferred Stock Increase, the Company will not be able to obtain the vote of the holders of a majority of the outstanding
Common Stock and Tandem Preferred Stock in favor of the amendments to effect the Reverse Stock Split and the Preferred Stock Increase
due to the widely dispersed stock holdings of the Company’s stockholders (as of April 21, 2022 there were over 100,000 beneficial
owners of Common Stock), the advice of the Company’s proxy solicitor, and the Company’s most recent annual meeting of stockholders
where the Company had difficulty obtaining a quorum of shares, which at the time required a majority of the outstanding shares of Common
Stock;

 

WHEREAS, as a result
of the difficulty of obtaining a quorum of shares at the most recent annual meeting, the Company postponed the meeting in order to amend
its bylaws to reduce the quorum requirement and to solicit additional proxies;

 

WHEREAS, the
Company has created a separate class of preferred stock, the Special Voting Preferred Stock, par value $0.0001 per share (the
 “Special Voting Stock”) by resolutions of the Board of Directors as set forth in a Certificate of Designation
dated May 19, 2022 (the “Certificate of Designation”) and is entering into this Agreement with Holder for the
sole purpose of ensuring that if a majority of the votes cast by holders of shares of Common Stock and Tandem Preferred Stock at the
Annual Meeting are in favor of each of the Reverse Stock Split Proposal and the Preferred Stock Increase Proposal, that the Reverse
Stock Split Proposal and the Preferred Stock Increase Proposal will be approved under Delaware law, enabling the Company to effect
the Reverse Stock Split and the Preferred Stock Increase and maintain the listing of the Common Stock on the Nasdaq Capital
Market;

 

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WHEREAS,
to avoid the risk that a holder of the Company’s debt securities will assert that the issuance of the Special Voting Shares will
constitute a ‘Change of Control’ under the applicable agreement, the Company has requested that Holder, as an affiliate of
HandsOn Global Management LLC act as the Holder hereunder; and

 

WHEREAS,
the Company and the Holder have agreed to enter into this Agreement to provide for, among other things, the issuance, voting and redemption
of the Special Voting Shares on the terms set forth herein.

 

NOW
THEREFORE, in consideration of the premises, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows:

 

Article 1

Interpretation

 

		1.1	Defined Terms

 

For the purposes of this Agreement,
unless the context otherwise requires, the following terms shall have the respective meanings set out below and grammatical variations
of such terms shall have corresponding meanings.

 

“Affiliate”
shall have the meaning ascribed to it under Section 12b-2 of the Securities Exchange Act of 1934, as amended.

 

“Agreement”
has the meaning given to such term in the preamble.

 

“Annual Meeting”
means the Company’s 2022 annual meeting of stockholders, including any adjournments or postponements thereof, at which meeting the
Stockholder Approval is sought.

 

“Board of Directors”
has the meaning given to such term in the recitals.

 

“Business Day”
means any day, other than a day on which banks are generally closed in New York, NY.

 

“Certificate of Designation”
has the meaning given to such term in the recitals.

 

“Common Stock”
has the meaning given to such term in the recitals.

 

“Company”
has the meaning given to such term in the preamble.

 

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“Governmental Entity”
means any domestic or foreign federal, provincial, regional, state, municipal or other government, governmental department, agency, authority
or body (whether administrative, legislative, executive or otherwise), court, tribunal, commission or commissioner, bureau, minister or
ministry, board or agency, or other regulatory authority, including any securities regulatory authorities and stock exchange.

 

“Holder”
has the meaning given to such term in the preamble.

 

“Indemnified Persons”
has the meaning given to such term in Section 5.3.

 

“Lien”
has the meaning given to such term in Section 5.3.

 

“Losses”
has the meaning given to such term in Section 3.5.

 

“Other Voting Power”
has the meaning given to such term in Section 3.1(b).

 

“Party”
and “Parties” have the meanings given to such terms in the preamble.

 

“Person”
means and includes any individual, company, limited partnership, general partnership, joint stock company, limited liability company,
joint venture, association, company, trust, bank, trust company, pension fund, business trust or other organization, whether or not a
legal entity, and any Governmental Entity.

 

“Preferred Stock
Increase”  has the meaning given to such term in the recitals.

 

“Preferred Stock
Increase Amendment” has the meaning given to such term in the recitals.

 

“Preferred Stock
Increase Proposal” has the meaning given to such term in the recitals.

 

“Record Date”
means the record date established by the Company for purposes of determining stockholders entitled to vote at the Annual Meeting;

 

“Redemption Date”
has the meaning given to such term in Section 3.3.

 

“Reverse Stock Split”
has the meaning given to such term in the recitals.

 

“Reverse Stock Split
Amendment” means the amendment to the Company’s certificate of incorporation that effects the Reverse Stock Split.

 

“Reverse Stock Split
Date” means the date on which the Reverse Stock Split is consummated and deemed effective.

 

“Reverse Stock Split
Proposal” has the meaning given to such term in the recitals.

 

“Special Voting Shares”
has the meaning given to such term in Section 2.2(a).

 

“Special Voting Stock”
has the meaning given to such term in the recitals.

 

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“Stockholder Approval”
means approval of the adoption of the Reverse Stock Split Amendment and the Preferred Stock Increase Amendment at the Annual Meeting by
holders of a majority in voting power of the outstanding shares of Common Stock, Tandem Preferred Stock and Special Voting Stock entitled
to vote thereon, voting together as a single class.

 

“Tandem Preferred
Stock” means the Company’s tandem preferred stock that trades together with the Company’s 6.00% Series B Cumulative
Convertible Perpetual Preferred Stock.

 

“Transfer”
shall mean any direct or indirect offer, sale, assignment, Lien, pledge, hypothecation, disposition, loan or other transfer (by operation
of law or otherwise), either voluntary or involuntary, or entry into any contract, option or other arrangement or understanding with respect
to any offer, sale, assignment, Lien, pledge, hypothecation, disposition, loan or other transfer (by operation of law or otherwise), of
the Special Voting Shares or any right or interest therein, excluding, for the avoidance of doubt, entry into this Agreement.

 

		1.2	Rules of Construction

 

Except as may be otherwise
specifically provided in this Agreement and unless the context otherwise requires, in this Agreement:

 

(a)            the
terms “Agreement”, “this Agreement”, “the Agreement”, “hereto”, “hereof”,
 “herein”, “hereby”, “hereunder” and similar expressions refer to this Agreement in its entirety and
not to any particular provision hereof and include any schedules or exhibits thereto;

 

(b)            references
to an “Article” or “Section” followed by a number or letter refer to the specified Article or Section to
this Agreement;

 

(c)            the
division of this Agreement into articles and sections and the insertion of headings are for convenience of reference only and shall not
affect the construction or interpretation of this Agreement;

 

(d)            words
importing the singular number only shall include the plural and vice versa and words importing the use of any gender shall include all
genders;

 

(e)            the
word “including” is deemed to mean “including without limitation”;

 

(f)            any
reference to this Agreement means this Agreement as amended, modified, replaced or supplemented from time to time;

 

(g)            any
reference to a statute, regulation or rule shall be construed to be a reference thereto as the same may from time to time be amended,
re-enacted or replaced, and any reference to a statute shall include any regulations or rules made thereunder;

 

(h)            all
dollar amounts refer to currency of the United States;

 

(i)            any
time period within which a payment is to be made or any other action is to be taken hereunder shall be calculated excluding the day on
which the period commences and including the day on which the period ends; and

 

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(j)            whenever
any action is required to be taken or period of time is to expire on a day other than a Business Day, such action shall be taken or period
shall expire on the next following Business Day.

 

		1.3	Entire Agreement

 

This Agreement constitute
the entire agreement between the Parties with respect to the subject matter described herein and supersede all prior agreements, understandings,
negotiations and discussions, whether written or oral.

 

		1.4	Time of Essence

 

Time shall be of the essence
of this Agreement.

 

Article 2

SUBSCRIPTION

 

		2.1	Authorized Shares

 

The Board of Directors has
duly authorized and adopted resolutions to create the Special Voting Stock, and the Company has filed with the Secretary of State of the
State of Delaware the Certificate of Designation for the Special Voting Stock.

 

		2.2	Purchase of Special Voting Stock

 

(a)            Upon
receipt of the consideration set forth in Section 2.2(b), the Company shall issue and sell to the Holder 1,000,000 shares of Special
Voting Stock (the “Special Voting Shares”).

 

(b)            The
Holder hereby subscribes for and agrees to purchase the Special Voting Shares for an aggregate purchase price of $100.

 

(c)            The
Company represents and warrants to the Holder that upon the issuance of the Special Voting Shares as provided for in this Agreement, the
Special Voting Shares will be duly authorized, validly issued, fully paid and nonassessable.

 

Article 3

Voting; Redemption; and other covenants

 

		3.1	Voting Agreement

 

(a)            The
Holder shall cause the Special Voting Shares to be present, in person, or by proxy, at the Annual Meeting for purposes of calculating
a quorum.

 

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(b)            The
Holder covenants and agrees to vote or cause to be voted the Special Voting Shares “FOR” or “AGAINST” each of
the Reverse Stock Split Proposal and the Preferred Stock Increase Proposal in the same proportion as all other votes cast with respect
to the Reverse Stock Split Proposal at the Annual Meeting (excluding abstention and broker non-votes). By way of example, if holders of
40% of the outstanding shares of Common Stock and Tandem Preferred Stock attend the Annual Meeting and of that 40%, holders of 80% of
the votes represented by the shares present vote in favor of the Reverse Stock Split Proposal, and holders of 20% of the votes represented
by the shares present vote against the Reverse Stock Split Proposal, then Holder will vote or will cause to be voted 80% of the Special
Voting Shares in favor of the Reverse Stock Split Proposal and 20% of the Special Voting Shares against the Reverse Stock Split Proposal.
By way of example, if holders of 40% of the outstanding shares of Common Stock and Tandem Preferred Stock attend the Annual Meeting and
of that 40%, holders of 70% of the votes represented by the shares present vote in favor of the Preferred Stock Increase Proposal, and
holders of 30% of the votes represented by the shares present vote against the Preferred Stock Increase Proposal, then Holder will vote
or will cause to be voted 70% of the Special Voting Shares in favor of the Preferred Stock Increase Proposal and 30% of the Special Voting
Shares against the Preferred Stock Increase Proposal.

 

		3.2	Grant of Irrevocable Proxy

 

Upon the issuance of the Special
Voting Shares, the Holder hereby irrevocably appoints the Company and any designee of the Company, and each of them individually, as the
Holder’s proxy and attorney-in-fact, with full power of substitution, to vote the Special Voting Shares solely to the extent and
in the manner specified in Section 3.1. This proxy is given to secure the performance of the duties of the Holder under this Agreement,
and its existence will not be deemed to relieve the Holder of its obligations under Section 3.1. The proxy and power of attorney
granted pursuant to this Section 3.2 shall be irrevocable, shall be deemed to be coupled with an interest sufficient in law to support
an irrevocable proxy and shall revoke any and all prior proxies granted by the Holder with regard to the Special Voting Shares, and the
Holder acknowledges that the proxy constitutes an inducement for the Company to enter into this Agreement. The power of attorney granted
by the Holder is a durable power of attorney and shall survive the bankruptcy, dissolution, death or incapacity of the Holder. The proxy
and power of attorney granted hereunder shall terminate at the earlier of (i) the valid termination of this Agreement in accordance
with Section 6.3 and (ii) immediately following the conclusion of the Annual Meeting following the receipt of Stockholder Approval.

 

		3.3	Redemption

 

The Parties hereby acknowledge
and agree that the Special Voting Shares shall be redeemed by the Company, in whole but not in part, automatically without any action
by any Party on the first (1st) Business Day after the later of (a) the date on which the voting on the Reverse Stock
Split Proposal has concluded and the polls on the Reverse Stock Split Proposal have closed and (b) the date on which the voting on
the Preferred Stock Increase Proposal has concluded and the polls on the Preferred Stock Increase Proposal have closed (the “Redemption
Date”), pursuant to and accordance with the Certificate of Designation. The Special Voting Shares will be so redeemed at an
aggregate price of $100 and shall be effected on the books of the Company. Following the redemption by the Company of the Special Voting
Shares on the Redemption Date, the Holder shall have no further right, title or interest in or to the Special Voting Shares, whether under
the Certificate of Designation, this Agreement or otherwise, and this Agreement shall terminate in accordance with Section 6.3.

 

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		3.4	No Transfer

 

From the date hereof through
the Redemption Date, without the Company’s prior written consent, the Holder agrees not to (a) Transfer the Special Voting
Shares or any interest therein (or enter into any transaction which is designed to, or might reasonably be expected to, result in the
Transfer (whether by actual disposition or effective economic disposition due to cash settlement or otherwise)) to any third party or
(b) deposit the Special Voting Shares into a voting trust or, except as otherwise provided in this Agreement, enter into a voting
agreement or arrangement with respect thereto or grant any proxy or power of attorney with respect thereto. Any Transfer or attempted
Transfer of the Special Voting Shares in violation of this Section 3.4 shall, to the fullest extent permitted by law, be null and
void ab initio.

 

		3.5	Indemnification

 

The Company shall indemnify
and hold harmless the Holder, its directors and officers, partners, members, managers, employees, agents, and representatives (collectively,
 “Indemnified Persons”), to the fullest extent permitted by applicable law, from and against any losses, claims, damages,
liabilities, joint or several, costs (including reasonable costs of preparation and reasonable attorneys’ fees) and expenses, judgments,
fines, penalties, interest, settlements or other amounts arising from any and all claims, demands, actions, suits or proceedings, whether
civil, criminal, administrative or investigative, in which any Indemnified Person may be involved, or is threatened to be involved, as
a party or otherwise (collectively, “Losses”), promptly as incurred, arising out of, based upon or resulting from (A) the
Holder’s entry into this Agreement or the taking of any actions contemplated by this Agreement and (B) the Holder’s ownership
or voting of the Special Voting Shares in accordance with the terms of this Agreement, provided that the foregoing indemnity shall not
apply to Losses to the extent that they have resulted from the fraud, bad faith or willful misconduct of such Indemnified Person. The
right of indemnification provided hereunder includes the right to be paid or reimbursed by the Company the reasonable expenses (including
reasonable attorneys’ fees) incurred by an Indemnified Person who was, is or is threatened to be made a named defendant or respondent
in a proceeding or action in advance of the final disposition of the proceeding and without any determination as to such person’s
ultimate entitlement to indemnification; provided, payment of such expenses incurred by any such person in advance of the final disposition
of a claim or proceeding will be made only upon delivery to the Company of a written affirmation by such person of its good faith belief
that it has met the standard of conduct necessary for indemnification hereunder and a written undertaking by such person to repay all
amounts so advanced if it is ultimately determined by a court of competent jurisdiction that such person is not entitled to be indemnified
hereunder. Promptly after its receipt of notice of the commencement of any action or proceeding, any Indemnified Person will notify the
Company in writing of the commencement thereof. If the Company so elects, it may assume the defense of such action or proceeding in a
timely manner, including the employment of counsel (reasonably satisfactory to the Indemnified Person) and payment of expenses, provided
the Company permit an Indemnified Person and counsel retained by an Indemnified Person at such Indemnified Person’s expense to participate
in such defense. Notwithstanding the foregoing, in the event (i) the Company fails to promptly assume the defense and employ counsel
reasonably satisfactory to the Indemnified Person, or (ii) the Indemnified Person has been advised by counsel that there exist actual
or potential conflicting interests between the Company and its counsel and such Indemnified Person, an Indemnified Person may employ separate
counsel (in addition to local counsel) to represent or defend such Indemnified Person in such action or proceeding, and the Company agrees
to pay the fees and disbursements of such separate counsel as incurred; provided however, that the Company will not, in connection with
any one such action or proceeding, or separate but substantially similar actions or proceedings arising out of the same general allegations,
be liable for fees and expenses of more than one separate firm of attorneys (in addition to any local counsel). The Company agrees not
to waive, release or settle any action or proceeding in respect of which indemnification may be sought hereunder without the prior written
consent of the applicable Indemnified Person, unless such waiver, release or settlement includes no admission of wrongdoing by the Indemnified
Person. The Company shall not be liable to an Indemnified Person under this Agreement for amounts paid in settlement of any threatened
or pending claim, demand, action, suit or proceeding in respect of which indemnification may be sought under this Agreement without the
Company’s prior written consent, which shall not be unreasonably withheld, delayed or conditioned.

 

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Article 4

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company represents and
warrants to the Holder as follows:

 

		4.1	Authorization; No Conflicts

 

The execution, delivery and
performance by the Company of this Agreement, and the consummation of the transactions contemplated hereby (a) are within the Company’s
power and authority, (b) have been duly authorized by all necessary proceedings on its behalf, and (c) do not conflict in any
material respect with or require any consent or approval pursuant to (unless any such required consent or approval has been obtained prior
to the consummation of the transactions contemplated by this Agreement and remains in full force and effect) its organizational documents
or conflict with or breach, or require any consent from or approval under, any law, regulation, order, judgment, writ, injunction, license,
permit, agreement or instrument applicable to the Company.

 

		4.2	Enforceability

 

This Agreement has been validly
executed by the Company and constitutes a legally binding obligations of the Company, enforceable against the Company in accordance with
the terms and conditions hereof, except as any enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting
the enforcement of creditors’ rights generally or by general equitable principles (whether sought in equity or at law).

 

		4.3	ACKNOWLEDGMENT

 

THE COMPANY ACKNOWLEDGES AND
AGREES THAT THE REPRESENTATIONS AND WARRANTIES SET FORTH IN ARTICLE 5 CONSTITUTE THE SOLE AND EXCLUSIVE REPRESENTATIONS AND WARRANTIES
OF THE HOLDER IN CONNECTION WITH THIS AGREEMENT, WHETHER IN WRITING, ORALLY OR OTHERWISE, AND THE COMPANY UNDERSTANDS, ACKNOWLEDGES AND
AGREES THAT ALL OTHER REPRESENTATIONS AND WARRANTIES OF ANY KIND OR NATURE IN CONNECTION WITH THIS AGREEMENT, EXPRESS OR IMPLIED AND THE
ACCURACY AND COMPLETENESS THEREOF ARE SPECIFICALLY DISCLAIMED BY THE HOLDER AND ARE NOT BEING RELIED UPON BY THE COMPANY OR ANY OF ITS
REPRESENTATIVES OR AFFILIATES.

 

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Article 5

REPRESENTATIONS AND WARRANTIES OF THE HOLDER

 

The Holder represents and
warrants to the Company as follows:

 

		5.1	Authorization; No Conflicts

 

The execution, delivery and
performance by the Holder of this Agreement, and the consummation of the transactions contemplated hereby (a) are within the Holder’s
power and authority, (b) have been duly authorized by all necessary proceedings on the Holder’s behalf (if any), and (c) do
not conflict with or breach, or require any consent or approval under, any law, regulation, order, judgment, writ, injunction, license,
permit, agreement or instrument applicable to the Holder.

 

		5.2	Enforceability

 

This Agreement has been validly
executed by the Holder and constitutes a legally binding obligation of the Holder, enforceable against the Holder in accordance with the
terms and conditions hereof, except as any enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting
the enforcement of creditors’ rights generally or by general equitable principles (whether sought in equity or at law).

 

		5.3	Title to Special Voting Shares

 

Upon issuance, the Holder
will have good and valid title to the Special Voting Shares free and clear of any lien, encumbrance, pledge, charge, security interest,
mortgage, title retention agreement, option, equity or other adverse claim (each, a “Lien”), and will not, in whole or in
part, as of the Record Date, have (a) assigned, transferred, hypothecated, pledged or otherwise disposed of the Special Voting Shares
or (b) given any Person any transfer order, power of attorney or other authority of any nature whatsoever with respect to the Special
Voting Shares other than as contemplated hereunder.

 

		5.4	Legal, Tax and Financial Advice

 

The Holder is aware of the
legal, financial and tax matters related to this Agreement and the Holder has either sought and received professional legal, tax and financial
advice regarding this Agreement and the matters related to this Agreement or has determined after reviewing the Agreement carefully that
the Holder will waive its right to seek such professional advice.

 

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		5.5	ACKNOWLEDGMENT

 

THE HOLDER ACKNOWLEDGES AND
AGREES THAT THE REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION 2.2(c) AND ARTICLE 4 CONSTITUTE THE SOLE AND EXCLUSIVE
REPRESENTATIONS AND WARRANTIES OF THE COMPANY IN CONNECTION WITH THIS AGREEMENT, WHETHER IN WRITING, ORALLY OR OTHERWISE, AND HOLDER UNDERSTANDS,
ACKNOWLEDGES AND AGREES THAT ALL OTHER REPRESENTATIONS AND WARRANTIES OF ANY KIND OR NATURE IN CONNECTION WITH THIS AGREEMENT, EXPRESS
OR IMPLIED AND THE ACCURACY AND COMPLETENESS THEREOF (INCLUDING ANY RELATING TO THE FUTURE OR HISTORICAL FINANCIAL CONDITION, RESULTS
OF OPERATIONS, ASSETS OR LIABILITIES OF THE COMPANY OR ITS SUBSIDIARIES OR THE ACCURACY AND COMPLETENESS OF ANY INFORMATION SUPPLIED RELATING
TO THE COMPANY OR ITS SUBSIDIARIES) ARE SPECIFICALLY DISCLAIMED BY THE COMPANY AND ARE NOT BEING RELIED UPON BY THE HOLDER OR ANY OF ITS
REPRESENTATIVES OR AFFILIATES.

 

Article 6

Miscellaneous

 

		6.1	Notices

 

(a)            Any
notice or other communication required or permitted to be given hereunder shall be in writing and shall be delivered in person, transmitted
by facsimile or e-mail or similar means of recorded electronic communication or sent by registered mail, charges prepaid, addressed as
follows:

 

(i)            in
the case of the Company:

 

c/o Exela Technologies 

300 First Stamford Place, Second Floor
West 

Stamford, CT 06902 

Attention:  Erik
Mengwall, Deputy General Counsel and Secretary 

E-mail:        legalnotices@exelatech.com

 

with a copy to: 

 

Willkie Farr & Gallagher LLP 

787 Seventh Ave 

New York, NY 10019

Attention:  Maurice
M. Lefkort; Sean M. Ewen

E-mail:        mlefkort@willkie.com;
sewen@willkie.com

 

(ii)            in
the case of the Holder, to the address of the Holder contained on the register maintained by the Company.

 

(b)            Any
such notice or other communication shall be deemed to have been given and received on the day on which it was delivered or transmitted
(or, if such day is not a Business Day or if delivery or transmission is made on a Business Day after 5:00 p.m. (eastern time) at
the place of receipt, then on the following Business Day) or, if mailed, on the third Business Day following the date of mailing.

 

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(c)            Any
Parties may at any time change its address for service from time to time by giving notice to the other Parties in accordance with this
Section ‎‎5.1.

 

		6.2	Fees and Expenses

 

Each Party shall pay the fees
and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to
the negotiation, preparation, execution, delivery and performance of this Agreement.

 

		6.3	Termination

 

This Agreement shall terminate,
become null and void, and shall have no further force or effect immediately as of and following the earliest of (i) the redemption
of the Special Voting Shares by the Company on the Redemption Date in accordance with Section 3.3 hereof and the Certificate of Designation,
(ii) the date on which the Company delivers written notice to the Holder of its intent to terminate this Agreement (or such later
date specified in such notice) and (iii) June 27, 2023. Notwithstanding anything else contained herein, (a) this Article 6
and Section 3.5 shall survive termination, and (b) such termination shall not relieve any Party from liability for any material
breach of this Agreement by the Party prior to such termination.

 

		6.4	Amendments and Waivers

 

No amendment or waiver of
any provision of this Agreement shall be binding on any Parties unless consented to in writing by such Party. No waiver of any provision
of this Agreement shall constitute a waiver of any other provision, nor shall any waiver of any provision of this Agreement constitute
a continuing waiver unless otherwise expressly provided.

 

		6.5	Assignment

 

No Party may assign any of
its rights or benefits under this Agreement, or delegate any of its duties or obligations, except with the prior written consent of the
other Party.

 

		6.6	Successors and Assigns

 

This Agreement shall inure
to the benefit of and shall be binding on and enforceable by and against the Parties and their respective successors or heirs, executors,
administrators and other legal personal representatives, and permitted assigns.

 

		6.7	Specific Performance

 

The Company and the Holder
hereby agree that irreparable damage for which monetary damages, even if available, would not be an adequate remedy, would occur in the
event that any provision of this Agreement is not performed in accordance with its specific terms or is otherwise breached. Accordingly,
the Company and the Holder agree that, prior to the valid termination of this Agreement in accordance with Section 6.3, the Company
shall be entitled to an injunction or injunctions, or any other appropriate form of specific performance or equitable relief, to prevent
breaches of this Agreement and to enforce specifically the terms and provisions hereof in any court of competent jurisdiction, this being
in addition to any other remedy to which they are entitled under the terms of this Agreement, at law or in equity (and the Holder hereby
waives any requirement for the securing or posting of any bond in connection with such remedy).

 

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		6.8	Governing Law; Venue

 

THIS AGREEMENT, AND ALL MATTERS
ARISING OUT OF OR RELATING TO THIS AGREEMENT, including (a) its negotiation, execution and validity and (b) any action or proceeding,
whether at law or in equity, whether in contract, tort or otherwise (including any representation or warranty made in or in connection
with this Agreement or as an inducement to enter into this Agreement), SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH THE INTERNAL LAWS OF THE STATE OF DELAWARE WITHOUT GIVING EFFECT TO any laws, rules or provisions of the State of Delaware that
would cause the application of the laws, rules or provisions of any jurisdiction other than the State of Delaware. Any action or
proceeding against any Party arising out of or relating to this Agreement or the transactions contemplated hereby shall be brought exclusively
in the Court of Chancery of the State of Delaware or, if, and only if, the Court of Chancery of the State of Delaware does not have subject
matter jurisdiction, the Superior Court of the State of Delaware, or, if, and only if, the Superior Court of the State of Delaware does
not have subject matter jurisdiction, the United States District Court for the District of Delaware, and each Party hereby irrevocably
and unconditionally consents and submits to the exclusive jurisdiction of such courts in any such action or proceeding. Each Party irrevocably
waives and agrees not to raise any objection it might now or hereafter have that it is not subject personally to the jurisdiction of the
above-named courts, that any such action or proceeding is located is an inconvenient forum, that the venue of the action or proceeding
is improper, or that this Agreement or the transactions contemplated hereby may not be enforced in or by the above-named courts. Each
Party agrees that such party will not bring any action or proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby in any court other than the above-named courts. Each Party irrevocably consents to process being served by any Party
in any Proceeding by delivery of a copy thereof in accordance with the provisions of Section ‎5.1
and agrees that nothing in this Agreement will affect the right of any Party to serve process in any other manner permitted by applicable
Legal Requirements.

 

		6.9	Waiver of Jury Trial

 

EACH PARTY ACKNOWLEDGES AND
AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES OF FACT AND
LAW, AND THEREFORE, EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT SUCH
PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THE NEGOTIATION,
OR ENTERING INTO OF THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN
THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF
THIS WAIVER, (C) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION ‎5.9.

 

     12

     

    

 

		6.10	Further Assurances

 

Each of the Parties hereto
shall, from time to time hereafter and upon any reasonable request of the other, promptly do, execute, deliver or cause to be done, executed
and delivered all further acts, documents and things as may be required or necessary for the purposes of giving effect to this Agreement.

 

		6.11	Severability

 

If any provision of this Agreement
is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, all other provisions of this
Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated
hereby is not affected in any manner materially adverse to any Parties hereto. Upon such determination that any term or other provision
is invalid, illegal or incapable of being enforced, the Parties hereto shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the Parties hereto as closely as possible in an acceptable manner to the end that transactions contemplated
hereby are fulfilled to the extent possible.

 

		6.12	Counterparts

 

This Agreement and all documents
contemplated by or delivered under or in connection with this Agreement may be executed and delivered in any number of counterparts, with
the same effect as if all Parties had signed and delivered the same document, and all counterparts shall be construed together to be an
original and will constitute one and the same agreement.

 

     13

     

    

 

IN WITNESS
WHEREOF this Agreement has been executed by the Parties.

  

	 	EXELA TECHNOLOGIES, INC.
	 	 
	 	 
		By:	/s/ Erik Mengwall
	 	 	Name:	Erik Mengwall
	 	 	Title:	Secretary

 

	 	GP-HGM LLC
	 	 
	 	 
		By:	/s/ Par Chadha
		 	Name: Par Chadha
	 	 	Title: Manager

 

Signature Page — Subscription, Voting
and Redemption Agreementsobr_ex41.htm

EXHIBIT 4.1
  
 Form of Representative’s Warrant Agreement
  
 THE REGISTERED HOLDER OF THIS PURCHASE WARRANT BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE WARRANT EXCEPT AS HEREIN PROVIDED AND THE REGISTERED HOLDER OF THIS PURCHASE WARRANT AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS PURCHASE WARRANT FOR A PERIOD OF ONE HUNDRED EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE OTHER THAN (I) AEGIS CAPITAL CORP. OR AN UNDERWRITER OR A SELECTED DEALER IN CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE OFFICER OR PARTNER OF AEGIS CAPITAL CORP. OR OF ANY SUCH UNDERWRITER OR SELECTED DEALER.
  
 THIS PURCHASE WARRANT IS NOT EXERCISABLE PRIOR TO [________________] [DATE THAT IS SIX MONTHS FROM THE EFFECTIVE DATE OF THE OFFERING]. VOID AFTER 5:00 P.M., EASTERN TIME, [___________________] [DATE THAT IS FIVE YEARS FROM THE EFFECTIVE DATE OF THE OFFERING].
  
 COMMON STOCK PURCHASE WARRANT
  
 For the Purchase of [__] Shares of Common Stock
 of
 SOBR SAFE, INC.
  
 1. Purchase Warrant. THIS CERTIFIES THAT, in consideration of funds duly paid by or on behalf of Aegis Capital Corp. (“Holder”), as registered owner of this Purchase Warrant, SOBR Safe, Inc., a Delaware corporation (the “Company”), Holder is entitled, at any time or from time to time from [________________] [DATE THAT IS SIX MONTHS FROM THE EFFECTIVE DATE OF THE OFFERING] (the “Commencement Date”), and at or before 5:00 p.m., Eastern time, [____________] [DATE THAT IS FIVE YEARS FROM THE EFFECTIVE DATE OF THE OFFERING] (the ”Expiration Date”), but not thereafter, to subscribe for, purchase and receive, in whole or in part, up to [__] shares of common stock of the Company, par value $0.00001 per share (the “Shares”), subject to adjustment as provided in Section 6 hereof. If the Expiration Date is a day on which banking institutions are authorized by law to close, then this Purchase Warrant may be exercised on the next succeeding day which is not such a day in accordance with the terms herein. During the period ending on the Expiration Date, the Company agrees not to take any action that would terminate this Purchase Warrant. This Purchase Warrant is initially exercisable at $[__] per Share; provided, however, that upon the occurrence of any of the events specified in Section 6 hereof, the rights granted by this Purchase Warrant, including the exercise price per Share and the number of Shares to be received upon such exercise, shall be adjusted as therein specified. The term “Exercise Price” shall mean the initial exercise price or the adjusted exercise price, depending on the context. The term “Effective Date” shall mean ☑, 2022, the date on which the Registration Statement on Form S-1 (File No. 333-260681 ) of the Company was declared effective by the Securities and Exchange Commission.
  
 2. Exercise.
  
 2.1 Exercise Form. In order to exercise this Purchase Warrant, the exercise form attached hereto must be duly executed and completed and delivered to the Company, together with this Purchase Warrant and payment of the Exercise Price for the Shares being purchased payable in cash by wire transfer of immediately available funds to an account designated by the Company or by certified check or official bank check. If the subscription rights represented hereby shall not be exercised at or before 5:00 p.m., Eastern time, on the Expiration Date, this Purchase Warrant shall become and be void without further force or effect, and all rights represented hereby shall cease and expire.
  
  	 
	1
	

	 

 
  
 2.2 Cashless Exercise. If at any time after the Commencement Date there is no effective registration statement registering, or no current prospectus available for, the resale of the Shares by the Holder, then in lieu of exercising this Purchase Warrant by payment of cash or check payable to the order of the Company pursuant to Section 2.1 above, Holder may elect to receive the number of Shares equal to the value of this Purchase Warrant (or the portion thereof being exercised), by surrender of this Purchase Warrant to the Company, together with the exercise form attached hereto, in which event the Company shall issue to Holder, Shares in accordance with the following formula:
  
  	X	 =
	 Y(A-B)
	  

	 A
	  

 
  
  	 Where,
	  
	  
	  

	  
	X	 =
	 The number of Shares to be issued to Holder;

	  
	 Y
	 =
	 The number of Shares for which the Purchase Warrant is being exercised;

	  
	 A
	 =
	 The fair market value of one Share; and

	  
	 B
	 =
	 The Exercise Price.

 
  
 For purposes of this Section 2.2, the fair market value of a Share is defined as follows:
  
  	  
	 (i)
	 if the Company’s common stock is traded on a securities exchange, the value shall be deemed to be the closing price on such exchange prior to the exercise form being submitted in connection with the exercise of the Purchase Warrant; or

 
  
  	  
	 (ii)
	 if the Company’s common stock is actively traded over-the-counter, the value shall be deemed to be the closing bid price prior to the exercise form being submitted in connection with the exercise of the Purchase Warrant; if there is no active public market, the value shall be the fair market value thereof, as determined in good faith by the Company’s Board of Directors.

 
  
 2.3 Legend. Each certificate for the securities purchased under this Purchase Warrant shall bear a legend as follows unless such securities have been registered under the Securities Act of 1933, as amended (the “Securities Act”):
  
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE LAW. NEITHER THE SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED FOR SALE, SOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE LAW WHICH, IN THE OPINION OF COUNSEL TO THE COMPANY, IS AVAILABLE.”
  
 3. Transfer.
  
 3.1 General Restrictions. The registered Holder of this Purchase Warrant agrees by his, her or its acceptance hereof, that such Holder will not: (a) sell, transfer, assign, pledge or hypothecate this Purchase Warrant or the securities issuable hereunder for a period of one hundred eighty (180) days following the Effective Date to anyone other than: (i) Aegis Capital Corp. (“Aegis Capital Corp”) or an underwriter or a selected dealer participating in the Offering, or (ii) a bona fide officer or partner of Aegis Capital Corp or of any such underwriter or selected dealer, in each case in accordance with FINRA Conduct Rule 5110(e)(1), or (b) for a period of one hundred eighty (180) days following the Effective Date, cause this Purchase Warrant or the securities issuable hereunder to be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of this Purchase Warrant or the securities hereunder, except as provided for in FINRA Rule 5110(e)(2). On and after one hundred eighty (180) days after the Effective Date, transfers to others may be made subject to compliance with or exemptions from applicable securities laws. In order to make any permitted assignment, the Holder must deliver to the Company the assignment form attached hereto duly executed and completed, together with the Purchase Warrant and payment of all transfer taxes, if any, payable in connection therewith. The Company shall within five (5) business days transfer this Purchase Warrant on the books of the Company and shall execute and deliver a new Purchase Warrant or Purchase Warrants of like tenor to the appropriate assignee(s) expressly evidencing the right to purchase the aggregate number of Shares purchasable hereunder or such portion of such number as shall be contemplated by any such assignment.
  
  	 
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 3.2 Restrictions Imposed by the Securities Act. The securities evidenced by this Purchase Warrant shall not be transferred unless and until: (i) the Company has received the opinion of counsel for the Holder that the securities may be transferred pursuant to an exemption from registration under the Securities Act and applicable state securities laws, the availability of which is established to the reasonable satisfaction of the Company (the Company hereby agreeing that the opinion of Lucosky Brookman LLP shall be deemed satisfactory evidence of the availability of an exemption), or (ii) a registration statement or a post-effective amendment to the Registration Statement relating to the offer and sale of such securities has been filed by the Company and declared effective by the U.S. Securities and Exchange Commission (the “Commission”) and compliance with applicable state securities law has been established.
  
 4. Registration Rights.
  
 4.1 Demand Registration.
  
 4.1.1 Grant of Right. The Company, upon written demand (a “Demand Notice”) of the Holders of at least 51% of the Purchase Warrants and/or the underlying Shares, agrees to register, on one (1) occasion, all or any portion of the Shares underlying the Purchase Warrants (collectively, the “Registrable Securities”). On such occasion, the Company will file a registration statement with the Commission covering the Registrable Securities within sixty (60) days after receipt of a Demand Notice and use its reasonable best efforts to have the registration statement declared effective promptly thereafter, subject to compliance with review by the Commission; provided, however, that the Company shall not be required to comply with a Demand Notice if the Company has filed a registration statement with respect to which the Holder is entitled to piggyback registration rights pursuant to Section 4.2 hereof and either: (i) the Holder has elected to participate in the offering covered by such registration statement or (ii) if such registration statement relates to an underwritten primary offering of securities of the Company, until the offering covered by such registration statement has been withdrawn or until thirty (30) days after such offering is consummated. The Company covenants and agrees to give written notice of its receipt of any Demand Notice by any Holders to all other registered Holders of the Purchase Warrants and/or the Registrable Securities within ten (10) days after the date of the receipt of any such Demand Notice.
  
 4.1.2 Terms. The Company shall bear all fees and expenses attendant to the registration of the Registrable Securities pursuant to Section 4.1.1, but the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to represent them in connection with the sale of the Registrable Securities. The Company agrees to use its reasonable best efforts to cause the filing required herein to become effective promptly and to qualify or register the Registrable Securities in such states as are reasonably requested by the Holders; provided, however, that in no event shall the Company be required to register the Registrable Securities in a State in which such registration would cause: (i) the Company to be obligated to register or license to do business in such State or submit to general service of process in such State, or (ii) the principal stockholders of the Company to be obligated to escrow their shares of capital stock of the Company. The Company shall cause any registration statement filed pursuant to the demand right granted under Section 4.1.1 to remain effective for a period of at least twelve (12) consecutive months after the date that the Holders of the Registrable Securities covered by such registration statement are first given the opportunity to sell all of such securities. The Holders shall only use the prospectuses provided by the Company to sell the shares covered by such registration statement, and will immediately cease to use any prospectus furnished by the Company if the Company advises the Holder that such prospectus may no longer be used due to a material misstatement or omission. Notwithstanding the provisions of this Section 4.1.2, the Holder shall be entitled to a demand registration under this Section 4.1.2 on only one (1) occasion and such demand registration right shall terminate on the fifth anniversary of the Effective Date in accordance with FINRA Rule 5110(g)(8)(C).
  
  	 
	3
	

	 

 
  
 4.2 “Piggy-Back” Registration.
  
 4.2.1 Grant of Right. In addition to the demand right of registration described in Section 4.1 hereof, the Holder shall have the right, for a period of no more than seven (7) years from the Effective Date in accordance with FINRA Rule 5110(g)(8)(D), to include the Registrable Securities as part of any other registration of securities filed by the Company (other than in connection with a transaction contemplated by Rule 145(a) promulgated under the Securities Act or pursuant to Form S-8 or Form S-4 or any equivalent form); provided, however, that if, solely in connection with any primary underwritten public offering for the account of the Company, the managing underwriter(s) thereof shall, in its reasonable discretion, impose a limitation on the number of shares of common stock which may be included in the Registration Statement because, in such underwriter(s)’ judgment, marketing or other factors dictate such limitation is necessary to facilitate public distribution, then the Company shall be obligated to include in such Registration Statement only such limited portion of the Registrable Securities with respect to which the Holder requested inclusion hereunder as the underwriter shall reasonably permit. Any exclusion of Registrable Securities shall be made pro rata among the Holders seeking to include Registrable Securities in proportion to the number of Registrable Securities sought to be included by such Holders; provided, however, that the Company shall not exclude any Registrable Securities unless the Company has first excluded all outstanding securities, the holders of which are not entitled to inclusion of such securities in such Registration Statement or are not entitled to pro rata inclusion with the Registrable Securities.
  
 4.2.2 Terms. The Company shall bear all fees and expenses attendant to registering the Registrable Securities pursuant to Section 4.2.1 hereof, but the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to represent them in connection with the sale of the Registrable Securities. In the event of such a proposed registration, the Company shall furnish the then Holders of outstanding Registrable Securities with not less than thirty (30) days’ written notice prior to the proposed date of filing of such registration statement. Such notice to the Holders shall continue to be given for each registration statement filed by the Company until such time as all of the Registrable Securities have been sold by the Holder. The holders of the Registrable Securities shall exercise the “piggy-back” rights provided for herein by giving written notice within ten (10) days of the receipt of the Company’s notice of its intention to file a registration statement. Except as otherwise provided in this Purchase Warrant, there shall be no limit on the number of times the Holder may request registration under this Section 4.2.2; provided, however, that such registration rights shall terminate on the fifth anniversary of the Commencement Date.
  
 4.3 General Terms.
  
 4.3.1 Indemnification. The Company shall indemnify the Holders of the Registrable Securities to be sold pursuant to any registration statement hereunder and each person, if any, who controls such Holders within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act, against all loss, claim, damage, expense or liability (including all reasonable attorneys’ fees and other expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which any of them may become subject under the Securities Act, the Exchange Act or otherwise, arising from such registration statement but only to the same extent and with the same effect as the provisions pursuant to which the Company has agreed to indemnify the Underwriters contained in Section 5.1 of the Underwriting Agreement between the Underwriters and the Company, dated as of [___________], 2022. The Holders of the Registrable Securities to be sold pursuant to such registration statement, and their successors and assigns, shall severally, and not jointly, indemnify the Company, against all loss, claim, damage, expense or liability (including all reasonable attorneys’ fees and other expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which they may become subject under the Securities Act, the Exchange Act or otherwise, arising from information furnished by or on behalf of such Holders, or their successors or assigns, in writing, for specific inclusion in such registration statement to the same extent and with the same effect as the provisions contained in Section 5.2 of the Underwriting Agreement pursuant to which the Underwriters have agreed to indemnify the Company.
  
 4.3.2 Exercise of Purchase Warrants. Nothing contained in this Purchase Warrant shall be construed as requiring the Holders to exercise their Purchase Warrants prior to or after the initial filing of any registration statement or the effectiveness thereof.
  
  	 
	4
	

	 

 
  
 4.3.3 Documents Delivered to Holders. The Company shall furnish to each Holder participating in any of the foregoing offerings and to each underwriter of any such offering, if any, a signed counterpart, addressed to such Holder or underwriter, of: (i) an opinion of counsel to the Company, dated the Effective Date of such registration statement (and, if such registration includes an underwritten public offering, an opinion dated the date of the closing under any underwriting agreement related thereto), and (ii) a “cold comfort” letter dated the Effective Date of such registration statement (and, if such registration includes an underwritten public offering, a letter dated the date of the closing under the underwriting agreement) signed by the independent registered public accounting firm which has issued a report on the Company’s financial statements included in such registration statement, in each case covering substantially the same matters with respect to such registration statement (and the prospectus included therein) and, in the case of such accountants’ letter, with respect to events subsequent to the date of such financial statements, as are customarily covered in opinions of issuer’s counsel and in accountants’ letters delivered to underwriters in underwritten public offerings of securities. The Company shall also deliver promptly to each Holder participating in the offering requesting the correspondence and memoranda described below and to the managing underwriter, if any, copies of all correspondence between the Commission and the Company, its counsel or the Auditor and all memoranda relating to discussions with the Commission or its staff with respect to the registration statement and permit each Holder and underwriter to do such investigation, upon reasonable advance notice, with respect to information contained in or omitted from the registration statement as it deems reasonably necessary to comply with applicable securities laws or rules of FINRA. Such investigation shall include access to books, records and properties and opportunities to discuss the business of the Company with its officers and the Auditor, all to such reasonable extent and at such reasonable times as any such Holder shall reasonably request.
  
 4.3.4 Underwriting Agreement. The Company shall enter into an underwriting agreement with the managing underwriter(s), if any, selected by any Holders whose Registrable Securities are being registered pursuant to this Section 4, which managing underwriter shall be reasonably satisfactory to the Company. Such agreement shall be reasonably satisfactory in form and substance to the Company, each Holder and such managing underwriters, and shall contain such representations, warranties and covenants by the Company and such other terms as are customarily contained in agreements of that type used by the managing underwriter. The Holders shall be parties to any underwriting agreement relating to an underwritten sale of their Registrable Securities and may, at their option, require that any or all the representations, warranties and covenants of the Company to or for the benefit of such underwriters shall also be made to and for the benefit of such Holders. Such Holders shall not be required to make any representations or warranties to or agreements with the Company or the underwriters except as they may relate to such Holders, their Shares and their intended methods of distribution.
  
 4.3.5 Documents to be Delivered by Holders. Each of the Holders participating in any of the foregoing offerings shall furnish to the Company a completed and executed questionnaire provided by the Company requesting information customarily sought of selling security holders.
  
 4.3.6 Damages. Should the registration or the effectiveness thereof required by Sections 4.1 and 4.2 hereof be delayed by the Company or the Company otherwise fails to comply with such provisions, the Holders shall, in addition to any other legal or other relief available to the Holders, be entitled to obtain specific performance or other equitable (including injunctive) relief against the threatened breach of such provisions or the continuation of any such breach, without the necessity of proving actual damages and without the necessity of posting bond or other security.
  
 4.4 Termination of Registration Rights. The registration rights afforded to the Holders under this Section 4 shall terminate on the earliest date when all Registrable Securities of such Holder either: (i) have been publicly sold by such Holder pursuant to a Registration Statement, (ii) have been covered by an effective Registration Statement on Form S-1 or Form S-3 (or successor form), which may be kept effective as an evergreen Registration Statement, or (iii) may be sold by the Holder within a 90 day period without registration pursuant to Rule 144 or consistent with applicable SEC interpretive guidance (including CD&I no. 201.04 (April 2, 2007) or similar interpretive guidance).
  
 5. New Purchase Warrants to be Issued.
  
 5.1 Partial Exercise or Transfer. Subject to the restrictions in Section 3 hereof, this Purchase Warrant may be exercised or assigned in whole or in part. In the event of the exercise or assignment hereof in part only, upon surrender of this Purchase Warrant for cancellation, together with the duly executed exercise or assignment form and funds sufficient to pay any Exercise Price and/or transfer tax if exercised pursuant to Section 2.1 hereto, the Company shall cause to be delivered to the Holder without charge a new Purchase Warrant of like tenor to this Purchase Warrant in the name of the Holder evidencing the right of the Holder to purchase the number of Shares purchasable hereunder as to which this Purchase Warrant has not been exercised or assigned.
  
  	 
	5
	

	 

 
  
 5.2 Lost Certificate. Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Purchase Warrant and of reasonably satisfactory indemnification or the posting of a bond, the Company shall execute and deliver a new Purchase Warrant of like tenor and date. Any such new Purchase Warrant executed and delivered as a result of such loss, theft, mutilation or destruction shall constitute a substitute contractual obligation on the part of the Company.
  
 6. Adjustments.
  
 6.1 Adjustments to Exercise Price and Number of Securities. The Exercise Price and the number of Shares underlying the Purchase Warrant shall be subject to adjustment from time to time as hereinafter set forth:
  
 6.1.1 Share Dividends; Split Ups. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding Shares is increased by a stock dividend payable in Shares or by a split up of Shares or other similar event, then, on the effective day thereof, the number of Shares purchasable hereunder shall be increased in proportion to such increase in outstanding Shares, and the Exercise Price shall be proportionately decreased.
  
 6.1.2 Aggregation of Shares. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding Shares is decreased by a consolidation, combination or reclassification of Shares or other similar event, then, on the Effective Date thereof, the number of Shares purchasable hereunder shall be decreased in proportion to such decrease in outstanding Shares, and the Exercise Price shall be proportionately increased.
  
 6.1.3 Replacement of Securities upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding Shares other than a change covered by Section 6.1.1 or 6.1.2 hereof or that solely affects the par value of such Shares, or in the case of any share reconstruction or amalgamation or consolidation of the Company with or into another corporation (other than a consolidation or share reconstruction or amalgamation in which the Company is the continuing corporation and that does not result in any reclassification or reorganization of the outstanding Shares), or in the case of any sale or conveyance to another corporation or entity of the property of the Company as an entirety or substantially as an entirety in connection with which the Company is dissolved, the Holder of this Purchase Warrant shall have the right thereafter (until the expiration of the right of exercise of this Purchase Warrant) to receive upon the exercise hereof, for the same aggregate Exercise Price payable hereunder immediately prior to such event, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization, share reconstruction or amalgamation, or consolidation, or upon a dissolution following any such sale or transfer, by a Holder of the number of Shares of the Company obtainable upon exercise of this Purchase Warrant immediately prior to such event; and if any reclassification also results in a change in Shares covered by Section 6.1.1 or 6.1.2, then such adjustment shall be made pursuant to Sections 6.1.1, 6.1.2 and this Section 6.1.3. The provisions of this Section 6.1.3 shall similarly apply to successive reclassifications, reorganizations, share reconstructions or amalgamations, or consolidations, sales or other transfers.
  
 6.1.4 Changes in Form of Purchase Warrant. This form of Purchase Warrant need not be changed because of any change pursuant to this Section 6.1, and Purchase Warrants issued after such change may state the same Exercise Price and the same number of Shares as are stated in the Purchase Warrants initially issued pursuant to this Agreement. The acceptance by any Holder of the issuance of new Purchase Warrants reflecting a required or permissive change shall not be deemed to waive any rights to an adjustment occurring after the Commencement Date or the computation thereof.
  
 6.2 Substitute Purchase Warrant. In case of any consolidation of the Company with, or share reconstruction or amalgamation of the Company with or into, another corporation (other than a consolidation or share reconstruction or amalgamation which does not result in any reclassification or change of the outstanding Shares), the corporation formed by such consolidation or share reconstruction or amalgamation shall execute and deliver to the Holder a supplemental Purchase Warrant providing that the holder of each Purchase Warrant then outstanding or to be outstanding shall have the right thereafter (until the stated expiration of such Purchase Warrant) to receive, upon exercise of such Purchase Warrant, the kind and amount of shares of stock and other securities and property receivable upon such consolidation or share reconstruction or amalgamation, by a holder of the number of Shares for which such Purchase Warrant might have been exercised immediately prior to such consolidation, share reconstruction or amalgamation, sale or transfer. Such supplemental Purchase Warrant shall provide for adjustments which shall be identical to the adjustments provided for in this Section 6. The above provision of this Section shall similarly apply to successive consolidations or share reconstructions or amalgamations.
  
 6.3 Elimination of Fractional Interests. The Company shall not be required to issue certificates representing fractions of Shares upon the exercise of the Purchase Warrant, nor shall it be required to issue scrip or pay cash in lieu of any fractional interests, it being the intent of the parties that all fractional interests shall be eliminated by rounding any fraction up or down, as the case may be, to the nearest whole number of Shares or other securities, properties or rights.
  
  	 
	6
	

	 

 
  
 7. Reservation and Listing. The Company shall at all times reserve and keep available out of its authorized Shares, solely for the purpose of issuance upon exercise of the Purchase Warrants, such number of Shares or other securities, properties or rights as shall be issuable upon the exercise thereof. The Company covenants and agrees that, upon exercise of the Purchase Warrants and payment of the Exercise Price therefor, in accordance with the terms hereby, all Shares and other securities issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable and not subject to preemptive rights of any stockholder. As long as the Purchase Warrants shall be outstanding, the Company shall use its commercially reasonable efforts to cause all Shares issuable upon exercise of the Purchase Warrants to be listed (subject to official notice of issuance) on all national securities exchanges (or, if applicable, on the OTC Bulletin Board or any successor trading market) on which the Shares issued to the public in the Offering may then be listed and/or quoted.
  
 8. Certain Notice Requirements.
  
 8.1 Holder’s Right to Receive Notice. Nothing herein shall be construed as conferring upon the Holders the right to vote or consent or to receive notice as a stockholder for the election of directors or any other matter, or as having any rights whatsoever as a stockholder of the Company. If, however, at any time prior to the expiration of the Purchase Warrants and their exercise, any of the events described in Section 8.2 shall occur, then, in one or more of said events, the Company shall give written notice of such event at least fifteen (15) days prior to the date fixed as a record date or the date of closing the transfer books for the determination of the stockholders entitled to such dividend, distribution, conversion or exchange of securities or subscription rights, or entitled to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of the closing of the transfer books, as the case may be. Notwithstanding the foregoing, the Company shall deliver to each Holder a copy of each notice given to the other stockholders of the Company at the same time and in the same manner that such notice is given to the stockholders.
  
 8.2 Events Requiring Notice. The Company shall be required to give the notice described in this Section 8 upon one or more of the following events: (i) if the Company shall take a record of the holders of its Shares for the purpose of entitling them to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of retained earnings, as indicated by the accounting treatment of such dividend or distribution on the books of the Company; (ii) the Company shall offer to all the holders of its Shares any additional shares of capital stock of the Company or securities convertible into or exchangeable for shares of capital stock of the Company, or any option, right or warrant to subscribe therefor; or (iii) a dissolution, liquidation or winding up of the Company (other than in connection with a consolidation or share reconstruction or amalgamation) or a sale of all or substantially all of its property, assets and business shall be proposed.
  
 8.3 Notice of Change in Exercise Price. The Company shall, promptly after an event requiring a change in the Exercise Price pursuant to Section 6 hereof, send notice to the Holders of such event and change (“Price Notice”). The Price Notice shall describe the event causing the change and the method of calculating same and shall be certified as being true and accurate by the Company’s Chief Financial Officer.
  
  	 
	7
	

	 

 
  
 8.4 Transmittal of Notices. All notices, requests, consents and other communications under this Purchase Warrant shall be in writing and shall be deemed to have been duly made when hand delivered or mailed by express mail or private courier service: (i) if to the registered Holder of the Purchase Warrant, to the address of such Holder as shown on the books of the Company, or (ii) if to the Company, to following address or to such other address as the Company may designate by notice to the Holders:
  
 If to the Holder:
  
 Aegis Capital Corp
 c/o Aegis Capital Corp.
 810 7th Ave #18, 
 New York, NY 10019
 Attn: Isaac L. Eide
  
 with a copy (which shall not constitute notice) to:
  
 Lucosky Brookman LLP
 101 Wood Avenue South
 5th Floor
 Iselin, NJ 08830
 Attn: Joseph Lucosky
 Email: Jlucosky@lucbro.com
  
 If to the Company:
  
 SOBR Safe, Inc.
 6400 S. Fiddlers Green Circle, Suite 525
 Greenwood Village, Colorado 80111
 Attn: [_________]
 Fax No.: [_________]
  
 with a copy (which shall not constitute notice) to:
  
 [  ]
  
 9. Miscellaneous.
  
 9.1 Amendments. The Company and Aegis Capital Corpmay from time to time supplement or amend this Purchase Warrant without the approval of any of the Holders in order to cure any ambiguity, to correct or supplement any provision contained herein that may be defective or inconsistent with any other provisions herein, or to make any other provisions in regard to matters or questions arising hereunder that the Company and Aegis Capital Corpmay deem necessary or desirable and that the Company and Aegis Capital Corpdeem shall not adversely affect the interest of the Holders. All other modifications or amendments shall require the written consent of and be signed by the party against whom enforcement of the modification or amendment is sought. 
  
 9.2 Headings. The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the meaning or interpretation of any of the terms or provisions of this Purchase Warrant.
  
 9.3 Entire Agreement. This Purchase Warrant (together with the other agreements and documents being delivered pursuant to or in connection with this Purchase Warrant) constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof.
  
 9.4 Binding Effect. This Purchase Warrant shall inure solely to the benefit of and shall be binding upon, the Holder and the Company and their permitted assignees, respective successors, legal representative and assigns, and no other person shall have or be construed to have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Purchase Warrant or any provisions herein contained.
  
  	 
	8
	

	 

 
  
 9.5 Governing Law; Submission to Jurisdiction; Trial by Jury. This Purchase Warrant shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect to conflict of laws principles thereof. The Company hereby agrees that any action, proceeding or claim against it arising out of, or relating in any way to this Purchase Warrant shall be brought and enforced in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any process or summons to be served upon the Company may be served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 8 hereof. Such mailing shall be deemed personal service and shall be legal and binding upon the Company in any action, proceeding or claim. The Company and the Holder agree that the prevailing party(ies) in any such action shall be entitled to recover from the other party(ies) all of its reasonable attorneys’ fees and expenses relating to such action or proceeding and/or incurred in connection with the preparation therefor. The Company (on its behalf and, to the extent permitted by applicable law, on behalf of its stockholders and affiliates) and the Holder hereby irrevocably waive, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.
  
 9.6 Waiver, etc. The failure of the Company or the Holder to at any time enforce any of the provisions of this Purchase Warrant shall not be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Purchase Warrant or any provision hereof or the right of the Company or any Holder to thereafter enforce each and every provision of this Purchase Warrant. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Purchase Warrant shall be effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement of such waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be a waiver of any other or subsequent breach, non-compliance or non-fulfillment.
  
 9.7 Execution in Counterparts. This Purchase Warrant may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement, and shall become effective when one or more counterparts has been signed by each of the parties hereto and delivered to each of the other parties hereto. Such counterparts may be delivered by facsimile transmission or other electronic transmission.
  
 9.8 Exchange Agreement. As a condition of the Holder’s receipt and acceptance of this Purchase Warrant, Holder agrees that, at any time prior to the complete exercise of this Purchase Warrant by Holder, if the Company and Aegis Capital Corpenter into an agreement (“Exchange Agreement”) pursuant to which they agree that all outstanding Purchase Warrants will be exchanged for securities or cash or a combination of both, then Holder shall agree to such exchange and become a party to the Exchange Agreement.
  
 [Signature Page Follows]
  
  	 
	9
	

	 

 
  
 IN WITNESS WHEREOF, the Company has caused this Purchase Warrant to be signed by its duly authorized officer as of the ____ day of _______, 2022.
  
 SOBR SAFE, INC.
  
  	 By:
	  
	  

	 Name:
		  

	 Title:
		  

 
  
  	 
	10
	

	 

 
  
 [Form to be used to exercise Purchase Warrant]
  
 Date: __________, 20___
  
 The undersigned hereby elects irrevocably to exercise the Purchase Warrant for ______ shares of common stock, par value $0.00001 per share (the “Shares”), of [_________], a [_________] corporation (the “Company”), and hereby makes payment of $____ (at the rate of $____ per Share) in payment of the Exercise Price pursuant thereto. Please issue the Shares as to which this Purchase Warrant is exercised in accordance with the instructions given below and, if applicable, a new Purchase Warrant representing the number of Shares for which this Purchase Warrant has not been exercised.
  
 or
  
 The undersigned hereby elects irrevocably to convert its right to purchase ___ Shares of the Company under the Purchase Warrant for ______ Shares, as determined in accordance with the following formula:
  
  	  
	X	 =
	 Y(A-B)
	  

	 A
	  

 
  
  	 Where,
	  
	  
	  

	  
	X	 =
	 The number of Shares to be issued to Holder;

	  
	 Y
	 =
	 The number of Shares for which the Purchase Warrant is being exercised;

	  
	 A
	 =
	 The fair market value of one Share which is equal to $_____; and

	  
	 B
	 =
	 The Exercise Price which is equal to $______ per share

 
  
 The undersigned agrees and acknowledges that the calculation set forth above is subject to confirmation by the Company and any disagreement with respect to the calculation shall be resolved by the Company in its sole discretion.
  
 Please issue the Shares as to which this Purchase Warrant is exercised in accordance with the instructions given below and, if applicable, a new Purchase Warrant representing the number of Shares for which this Purchase Warrant has not been converted.
  
 Signature________________________________________
  
 Signature Guaranteed________________________________________
  
 INSTRUCTIONS FOR REGISTRATION OF SECURITIES
  
  	 Name:
	  
	  

	  
	 (Print in Block Letters)
	  

 
  
  	 Address:
	  
	  

	  
	  
	  

	  
	  
	  

 
  
 NOTICE: The signature to this form must correspond with the name as written upon the face of the Purchase Warrant without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on a registered national securities exchange.
  
  	 
	11
	

	 

 
  
 [Form to be used to assign Purchase Warrant]
  
 ASSIGNMENT
  
 (To be executed by the registered Holder to effect a transfer of the within Purchase Warrant):
  
 FOR VALUE RECEIVED, __________________ does hereby sell, assign and transfer unto the right to purchase shares of common stock, par value $0.00001 per share, of SOBR Safe, Inc., a Delaware corporation (the “Company”), evidenced by the Purchase Warrant and does hereby authorize the Company to transfer such right on the books of the Company.
  
 Dated: __________, 20__
  
 Signature ______________________________________
  
 Signature Guaranteed ______________________________________
  
 NOTICE: The signature to this form must correspond with the name as written upon the face of the within Purchase Warrant without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on a registered national securities exchange.
  
  	 
	12

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