Document:

Exhibit 10.2

EXHIBIT A
 
REGISTRATION RIGHTS AGREEMENT
 
This Registration Rights Agreement (this “Agreement”) is made and entered into as of July 25, 2022, between ToughBuilt Industries, Inc., a Nevada corporation (the “Company”), and each of the several purchasers signatory hereto (each such purchaser, a “Purchaser” and, collectively, the “Purchasers”).
 
This Agreement is made pursuant to the Securities Purchase Agreement, dated as of the date hereof, between the Company and each Purchaser (the “Purchase Agreement”).
 
The Company and each Purchaser hereby agrees as follows:
 
		1. 
	Definitions.

 
Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given such terms in the Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings:
 
“Advice” shall have the meaning set forth in Section 6(c).
 
“Effectiveness Date” means, with respect to the Initial Registration Statement required to be filed hereunder, the 45th calendar day following the date hereof (or, in the event of a “full review” by the Commission, the 75th calendar day following the date hereof) and with respect to any additional Registration Statements which may be required pursuant to Section 2(c) or Section 3(c), the 45th calendar day following the date on which an additional Registration Statement is required to be filed hereunder (or, in the event of a “full review” by the Commission, the 75th calendar day following the date such additional Registration Statement is required to be filed hereunder); provided, however, that in the event the Company is notified by the Commission that one or more of the above Registration Statements will not be reviewed or is no longer subject to further review and comments, the Effectiveness Date as to such Registration Statement shall be the fifth Trading Day following the date on which the Company is so notified if such date precedes the dates otherwise required above, provided, further, if such Effectiveness Date falls on a day that is not a Trading Day, then the Effectiveness Date shall be the next succeeding Trading Day.
 
“Effectiveness Period” shall have the meaning set forth in Section 2(a).
 
“Event” shall have the meaning set forth in Section 2(d).
 
“Event Date” shall have the meaning set forth in Section 2(d).

“Filing Date” means, with respect to the Initial Registration Statement required hereunder, the 10th calendar day following the date hereof (provided that, if such 10th calendar day is a day on which the EDGAR system (or successor thereto) is unavailable for a filing of a registration statement, then the next succeeding calendar day after such 10th calendar day on which the EDGAR system (or successor thereto) is available for a filing of a registration statement) and, with respect to any additional Registration Statements which may be required pursuant to Section 2(c) or Section 3(c), the earliest practical date on which the Company is permitted by SEC Guidance to file such additional Registration Statement related to the Registrable Securities.
 
“Holder” or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.
 
“Indemnified Party” shall have the meaning set forth in Section 5(c).
 
“Indemnifying Party” shall have the meaning set forth in Section 5(c).
 
“Initial Registration Statement” means the initial Registration Statement filed pursuant to this Agreement.
 
“Losses” shall have the meaning set forth in Section 5(a).
 
“Plan of Distribution” shall have the meaning set forth in Section 2(a). 
 
“Prospectus” means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated by the Commission pursuant to the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.
 
“Registrable Securities” means, as of any date of determination, (a) all Shares, (b) all Prefunded Warrant Shares then issued and issuable upon exercise of the Prefunded Warrants (assuming on such date the Prefunded Warrants are exercised in full without regard to any exercise limitations therein) and all Preferred Investment Option Shares then issued an issuable upon exercise of the Preferred Investment Options (assuming on such date the Preferred Investment Options are exercised in full without regard to any exercise limitations therein), (c) any additional shares of Common Stock issued and issuable in connection with any anti-dilution provisions in the Prefunded Warrants and the Preferred Investment Options (in each case, without giving effect to any limitations on exercise set forth in the Prefunded Warrants and the Preferred Investment Options, resepctively) and (d) any securities issued or then issuable upon any stock split, dividend or other distribution,  recapitalization or similar event with respect to the foregoing; provided, however, that any such Registrable Securities shall cease to be Registrable Securities (and the Company shall not be required to maintain the effectiveness of any, or file another, Registration Statement hereunder with respect thereto) for so long as (a) a Registration Statement with respect to the sale of such Registrable Securities is declared effective by the Commission under the Securities Act and such Registrable Securities have been disposed of by the Holder in accordance with such effective Registration Statement, (b) such Registrable Securities have been previously sold in accordance with Rule 144, or (c) such securities become eligible for resale without volume or manner-of-sale restrictions and without current public information pursuant to Rule 144 as set forth in a written opinion letter to such effect, addressed, delivered and acceptable to the Transfer Agent and the affected Holders (assuming that such securities and any securities issuable upon exercise, conversion or exchange of which, or as a dividend upon which, such securities were issued or are issuable, were at no time held by any Affiliate of the Company), as reasonably determined by the Company, upon the advice of counsel to the Company.

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“Registration Statement” means any registration statement required to be filed hereunder pursuant to Section 2(a) and any additional registration statements contemplated by Section 2(c) or Section 3(c), including (in each case) the Prospectus, amendments and supplements to any such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in any such registration statement.
 
 “Rule 415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.
 
“Rule 424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.
 
“Selling Stockholder Questionnaire” shall have the meaning set forth in Section 3(a).
 
“SEC Guidance” means (i) any publicly-available written or oral guidance of the Commission staff, or any comments, requirements or requests of the Commission staff and (ii) the Securities Act.
 
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		2.
	Shelf Registration.

 
(a)        On or prior to each Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering the resale of all of the Registrable Securities that are not then registered on an effective Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415.  Each Registration Statement filed hereunder shall be on Form S-3 (except if the Company is not then eligible to register for resale the Registrable Securities on Form S-3, in which case such registration shall be on another appropriate form in accordance herewith, subject to the provisions of Section 2(e)) and shall contain (unless otherwise directed by at least 85% in interest of the Holders) substantially the “Plan of Distribution” attached hereto as Annex A and substantially the “Selling Stockholder” section attached hereto as Annex B; provided, however, that no Holder shall be required to be named as an “underwriter” without such Holder’s express prior written consent.  Subject to the terms of this Agreement, the Company shall use its best efforts to cause a Registration Statement filed under this Agreement (including, without limitation, under Section 3(c)) to be declared effective under the Securities Act as promptly as possible after the filing thereof, but in any event no later than the applicable Effectiveness Date, and shall use its best efforts to keep such Registration Statement continuously effective under the Securities Act until the date that all Registrable Securities covered by such Registration Statement (i) have been sold, thereunder or pursuant to Rule 144, or (ii) may be sold without volume or manner-of-sale restrictions pursuant to Rule 144 and without the requirement for the Company to be in compliance with the current public information requirement under Rule 144, as determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Transfer Agent and the affected Holders (the “Effectiveness Period”).  The Company shall telephonically request effectiveness of a Registration Statement as of 5:00 p.m. (New York City time) on a Trading Day.   The Company shall immediately notify the Holders via e-mail of the effectiveness of a Registration Statement on the same Trading Day that the Company telephonically confirms effectiveness with the Commission, which shall be the date requested for effectiveness of such Registration Statement.  The Company shall, by 9:30 a.m. (New York City time) on the Trading Day after the effective date of such Registration Statement, file a final Prospectus with the Commission as required by Rule 424.  Failure to so notify the Holder within one (1) Trading Day of such notification of effectiveness or failure to file a final Prospectus as foresaid shall be deemed an Event under Section 2(d). 
 
(b)        Notwithstanding the registration obligations set forth in Section 2(a), if the Commission informs the Company that all of the Registrable Securities cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering on a single registration statement, the Company agrees to promptly inform each of the Holders thereof and use its commercially reasonable efforts to file amendments to the Initial Registration Statement as required by the Commission, covering the maximum number of Registrable Securities permitted to be registered by the Commission, on Form S-1 or such other form available to register for resale the Registrable Securities as a secondary offering, subject to the provisions of Section 2(e); with respect to filing on Form S-1 or other appropriate form, and subject to the provisions of Section 2(d) with respect to the payment of liquidated damages; provided, however, that prior to filing such amendment, the Company shall be obligated to use diligent efforts to advocate with the Commission for the registration of all of the Registrable Securities in accordance with the SEC Guidance, including without limitation, Compliance and Disclosure Interpretation 612.09.

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(c)        Notwithstanding any other provision of this Agreement and subject to the payment of liquidated damages pursuant to Section 2(d), if the Commission or any SEC Guidance sets forth a limitation on the number of Registrable Securities permitted to be registered on a particular Registration Statement as a secondary offering (and notwithstanding that the Company used diligent efforts to advocate with the Commission for the registration of all or a greater portion of Registrable Securities), unless otherwise directed in writing by a Holder as to its Registrable Securities, the number of Registrable Securities to be registered on such Registration Statement will be reduced as follows: 
 
		a.
	First, the Company shall reduce or eliminate any securities to be included other than Registrable Securities;

 
		b.
	Second, the Company shall reduce Registrable Securities represented by Preferred Investment Option Shares (applied, in the case that some Preferred Investment Option Shares may be registered, to the Holders on a pro rata basis based on the total number of unregistered Preferred Investment Option Shares held by such Holders); and 

 
		c.
	Third, the Company shall reduce Registrable Securities represented by Shares and the Prefunded Warrant Shares (applied, in the case that some Shares and Prefunded Warrant Shares may be registered, to the Holders on a pro rata basis based on the total number of unregistered Shares and Prefunded Warrant Shares held by such Holders). 

 

In the event of a cutback hereunder, the Company shall give the Holder at least three (3) Trading Days prior written notice along with the calculations as to such Holder’s allotment.  In the event the Company amends the Initial Registration Statement in accordance with the foregoing, the Company will use its best efforts to file with the Commission, as promptly as allowed by Commission or SEC Guidance provided to the Company or to registrants of securities in general, one or more registration statements on Form S-1 or such other form available to register for resale those Registrable Securities that were not registered for resale on the Initial Registration Statement, as amended.

 
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(d)       If: (i) the Initial Registration Statement is not filed on or prior to its Filing Date (if the Company files the Initial Registration Statement without affording the Holders the opportunity to review and comment on the same as required by Section 3(a) herein or the Company subsequent withdraws the filing of the Registration Statement, the Company shall be deemed to have not satisfied this clause as of the Filing Date (i)), or (ii) the Company fails to file with the Commission a request for acceleration of a Registration Statement in accordance with Rule 461 promulgated by the Commission pursuant to the Securities Act, within five Trading Days of the date that the Company is notified (orally or in writing, whichever is earlier) by the Commission that such Registration Statement will not be “reviewed” or will not be subject to further review, or (iii) prior to the effective date of a Registration Statement, the Company fails to file a pre-effective amendment and otherwise respond in writing to comments made by the Commission in respect of such Registration Statement within ten (10) calendar days after the receipt of comments by or notice from the Commission that such amendment is required in order for such Registration Statement to be declared effective (provided that, if such 10th calendar day is a day on which the EDGAR system (or successor thereto) is unavailable for a filing of a pre-effective amendment, then the next succeeding calendar day after such 10th calendar day on which the EDGAR system (or successor thereto) is available for a filing of a pre-effective amendment), or (iv) a Registration Statement registering for resale all of the Registrable Securities is not declared effective by the Commission by the Effectiveness Date of the Initial Registration Statement (provided if the Registration Statement does not allow for the resale of Registrable Securities at prevailing market prices (i.e., only allows for fixed price sales), the Company shall have been deemed to have not satisfied this clause) or (v) after the effective date of a Registration Statement, such Registration Statement ceases for any reason to remain continuously effective as to all Registrable Securities included in such Registration Statement, or the Holders are otherwise not permitted to utilize the Prospectus therein to resell such Registrable Securities, for more than ten (10) consecutive Trading Days or more than an aggregate of fifteen (15) Trading Days (which need not be consecutive Trading Days) during any 12-month period (any such failure or breach being referred to as an “Event”, and for purposes of clauses (i) and (iv), the date on which such Event occurs, and for purpose of clause (ii) the date on which such five (5) Trading Day period is exceeded, and for purpose of clause (iii) the date which such ten (10) calendar day period is exceeded, and for purpose of clause (v) the date on which such ten (10) or fifteen (15) Trading Day period, as applicable, is exceeded being referred to as “Event Date”), then, in addition to any other rights the Holders may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary of each such Event Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay to each Holder an amount in cash, as partial liquidated damages and not as a penalty, equal to the product of 2.0% multiplied by the aggregate Subscription Amount paid by such Holder pursuant to the Purchase Agreement. If the Company fails to pay any partial liquidated damages pursuant to this Section in full within seven days after the date payable, the Company will pay interest thereon at a rate of 12% per annum (or such lesser maximum amount that is permitted to be paid by applicable law) to the Holder, accruing daily from the date such partial liquidated damages are due until such amounts, plus all such interest thereon, are paid in full. The partial liquidated damages pursuant to the terms hereof shall apply on a daily pro rata basis for any portion of a month prior to the cure of an Event.
 
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(e)        If Form S-3 is not available for the registration of the resale of Registrable Securities hereunder, the Company shall (i) register the resale of the Registrable Securities on Form S-1 or another appropriate form and (ii) undertake to register the Registrable Securities on Form S-3 as soon as such form is available, provided that the Company shall maintain the effectiveness of the Registration Statement then in effect until such time as a Registration Statement on Form S-3 covering the Registrable Securities has been declared effective by the Commission.
 
(f)        Notwithstanding anything to the contrary contained herein, in no event shall the Company be permitted to name any Holder or affiliate of a Holder as any Underwriter without the prior written consent of such Holder.
 
		3.
	Registration Procedures.

 
In connection with the Company’s registration obligations hereunder, the Company shall:
 
(a)        Not less than three (3) Trading Days prior to the filing of each Registration Statement and not less than one (1) Trading Day prior to the filing of any related Prospectus or any amendment or supplement thereto (including any document that would be incorporated or deemed to be incorporated therein by reference), the Company shall (i) furnish to each Holder copies of all such documents proposed to be filed, which documents (other than those incorporated or deemed to be incorporated by reference) will be subject to the review of such Holders, and (ii) cause its officers and directors, counsel and independent registered public accountants to respond to such inquiries as shall be necessary, in the reasonable opinion of respective counsel to each Holder, to conduct a reasonable investigation within the meaning of the Securities Act. The Company shall not file a Registration Statement or any such Prospectus or any amendments or supplements thereto to which the Holders of a majority of the Registrable Securities shall reasonably object in good faith, provided that, the Company is notified of such objection in writing no later than three (3) Trading Days after the Holders have been so furnished copies of a Registration Statement or one (1) Trading Day after the Holders have been so furnished copies of any related Prospectus or amendments or supplements thereto. Each Holder agrees to furnish to the Company a completed questionnaire in the form attached to this Agreement as Annex B (a “Selling Stockholder Questionnaire”) on a date that is not less than two (2) Trading Days prior to the Filing Date or by the end of the third (3rd) Trading Day following the date on which such Holder receives draft materials in accordance with this Section.   

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(b)        (i) Prepare and file with the Commission such amendments, including post-effective amendments, to a Registration Statement and the Prospectus used in connection therewith as may be necessary to keep a Registration Statement continuously effective as to the applicable Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration Statements in order to register for resale under the Securities Act all of the Registrable Securities, (ii) cause the related Prospectus to be amended or supplemented by any required Prospectus supplement (subject to the terms of this Agreement), and, as so supplemented or amended, to be filed pursuant to Rule 424, (iii) respond as promptly as reasonably possible to any comments received from the Commission with respect to a Registration Statement or any amendment thereto and provide as promptly as reasonably possible to the Holders true and complete copies of all correspondence from and to the Commission relating to a Registration Statement (provided that, the Company shall excise any information contained therein which would constitute material non-public information regarding the Company or any of its Subsidiaries), and (iv) comply in all material respects with the applicable provisions of the Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by a Registration Statement during the applicable period in accordance (subject to the terms of this Agreement) with the intended methods of disposition by the Holders thereof set forth in such Registration Statement as so amended or in such Prospectus as so supplemented.
 
(c)        If during the Effectiveness Period, the number of Registrable Securities at any time exceeds 100% of the number of shares of Common Stock then registered in a Registration Statement, then the Company shall file as soon as reasonably practicable, but in any case prior to the applicable Filing Date, an additional Registration Statement covering the resale by the Holders of not less than the number of such Registrable Securities.  
 
(d)       Notify the Holders of Registrable Securities to be sold (which notice shall, pursuant to clauses (iii) through (vi) hereof, be accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made) as promptly as reasonably possible (and, in the case of (i)(A) below, not less than one (1) Trading Day prior to such filing) and (if requested by any such Person) confirm such notice in writing no later than one (1) Trading Day following the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to a Registration Statement is proposed to be filed, (B) when the Commission notifies the Company whether there will be a “review” of such Registration Statement and whenever the Commission comments in writing on such Registration Statement, and (C) with respect to a Registration Statement or any post-effective amendment, when the same has become effective, (ii) of any request by the Commission or any other federal or state governmental authority for amendments or supplements to a Registration Statement or Prospectus or for additional information, (iii) of the issuance by the Commission or any other federal or state governmental authority of any stop order suspending the effectiveness of a Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose, (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose, (v) of the occurrence of any event or passage of time that makes the financial statements included in a Registration Statement ineligible for inclusion therein or any statement made in a Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to a Registration Statement, Prospectus or other documents so that, in the case of a Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and (vi) of the occurrence or existence of any pending corporate development with respect to the Company that the Company believes may be material and that, in the determination of the Company, makes it not in the best interest of the Company to allow continued availability of a Registration Statement or Prospectus; provided, however, that in no event shall any such notice contain any information which would constitute material, non-public information regarding the Company or any of its Subsidiaries, and the Company agrees that the Holders shall not have any duty of confidentiality to the Company or any of its Subsidiaries and shall not have any duty to the Company or any of its Subsidiaries not to trade on the basis of such information.

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(e)        Use its best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order stopping or suspending the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment.
 
(f)        Furnish to each Holder, without charge, at least one conformed copy of each such Registration Statement and each amendment thereto, including financial statements and schedules, all documents incorporated or deemed to be incorporated therein by reference to the extent requested by such Person, and all exhibits to the extent requested by such Person (including those previously furnished or incorporated by reference) promptly after the filing of such documents with the Commission, provided that any such item which is available on the EDGAR system (or successor thereto) need not be furnished in physical or electronic form.

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(g)        Subject to the terms of this Agreement, the Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto, except after the giving of any notice pursuant to Section 3(d).
 
(h)        Prior to any resale of Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate with the selling Holders in connection with the registration or qualification (or exemption from the Registration or qualification) of such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within the United States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition in such jurisdictions of the Registrable Securities covered by each Registration Statement, provided that the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject the Company to any material tax in any such jurisdiction where it is not then so subject or file a general consent to service of process in any such jurisdiction.
 

(i)         If requested by a Holder, cooperate with such Holder to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be delivered to a transferee pursuant to a Registration Statement, which certificates shall be free, to the extent permitted by the Purchase Agreement, of all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in such names as any such Holder may request.

 
(j)       Upon the occurrence of any event contemplated by Section 3(d), as promptly as reasonably possible under the circumstances taking into account the Company’s good faith assessment of any adverse consequences to the Company and its stockholders of the premature disclosure of such event, prepare a supplement or amendment, including a post-effective amendment, to a Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as thereafter delivered, neither a Registration Statement nor such Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. If the Company notifies the Holders in accordance with clauses (iii) through (vi) of Section 3(d) above to suspend the use of any Prospectus until the requisite changes to such Prospectus have been made, then the Holders shall suspend use of such Prospectus. The Company will use its best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable. The Company shall be entitled to exercise its right under this Section 3(j) to suspend the availability of a Registration Statement and Prospectus, subject to the payment of partial liquidated damages otherwise required pursuant to Section 2(d), for a period not to exceed 60 calendar days (which need not be consecutive days) in any 12-month period.

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(k)        Otherwise use commercially reasonable efforts to comply with all applicable rules and regulations of the Commission under the Securities Act and the Exchange Act, including, without limitation, Rule 172 under the Securities Act, file any final Prospectus, including any supplement or amendment thereof, with the Commission pursuant to Rule 424 under the Securities Act, promptly inform the Holders in writing if, at any time during the Effectiveness Period, the Company does not satisfy the conditions specified in Rule 172 and, as a result thereof, the Holders are required to deliver a Prospectus in connection with any disposition of Registrable Securities and take such other actions as may be reasonably necessary to facilitate the registration of the Registrable Securities hereunder.
 
(l)         If the Company is or becomes eligible for use of Form S-3 for the registration for the resale of the Registrable Securities, the Company shall use its best efforts to maintain eligibility for use of Form S-3 (or any successor form thereto) for the registration of the resale of Registrable Securities.
 
(m)       The Company may require each selling Holder to furnish to the Company a certified statement as to the number of shares of Common Stock beneficially owned by such Holder and, if required by the Commission, the natural persons thereof that have voting and dispositive control over the shares. During any periods that the Company is unable to meet its obligations hereunder with respect to the registration of the Registrable Securities solely because any Holder fails to furnish such information within three Trading Days of the Company’s request, any liquidated damages that are accruing at such time as to such Holder only shall be tolled and any Event that may otherwise occur solely because of such delay shall be suspended as to such Holder only, until such information is delivered to the Company.
 
		4. 
	Registration Expenses.

 

All fees and expenses incident to the performance of or compliance with, this Agreement by the Company shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without limitation, fees and expenses of the Company’s counsel and independent registered public accountants) (A) with respect to filings made with the Commission, (B) with respect to filings required to be made with any Trading Market on which the Common Stock is then listed for trading, and (C) in compliance with applicable state securities or Blue Sky laws reasonably agreed to by the Company in writing (including, without limitation, fees and disbursements of counsel for the Company in connection with Blue Sky qualifications or exemptions of the Registrable Securities), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement.  In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder.  In no event shall the Company be responsible for any broker or similar commissions of any Holder or, except to the extent provided for in the Transaction Documents, any legal fees or other costs of the Holders.

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		5. 
	Indemnification.

 
(a)        Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder, the officers, directors, members, partners, agents, brokers (including brokers who offer and sell Registrable Securities as principal as a result of a pledge or any failure to perform under a margin call of Common Stock), investment advisors and employees (and any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such title or any other title) of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, members, stockholders, partners, agents and employees (and any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such title or any other title) of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising out of or relating to (1) any untrue or alleged untrue statement of a material fact contained in a Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading or (2) any violation or alleged violation by the Company of the Securities Act, the Exchange Act or any state securities law, or any rule or regulation thereunder, in connection with the performance of its obligations under this Agreement, except to the extent, but only to the extent, that (i) such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in a Registration Statement, such Prospectus or in any amendment or supplement thereto (it being understood that the Holder has approved in writing Annex A hereto for this purpose) or (ii) in the case of an occurrence of an event of the type specified in Section 3(d)(iii)-(vi), the use by such Holder of an outdated, defective or otherwise unavailable Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated, defective or otherwise unavailable for use by such Holder and prior to the receipt by such Holder of the Advice contemplated in Section 6(c).  The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding arising from or in connection with the transactions contemplated by this Agreement of which the Company is aware. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such indemnified person and shall survive the transfer of any Registrable Securities by any of the Holders in accordance with Section 6(f).

		12	

(b)        Indemnification by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses, as incurred, to the extent arising out of or based solely upon: any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus, or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading (i) to the extent, but only to the extent, that such untrue statement or omission is contained in any information so furnished in writing by such Holder to the Company expressly for inclusion in such Registration Statement or such Prospectus or (ii) to the extent, but only to the extent, that such information relates to such Holder’s information provided in the Selling Stockholder Questionnaire or the proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in a Registration Statement (it being understood that the Holder has approved Annex A hereto for this purpose), such Prospectus or in any amendment or supplement thereto.  In no event shall the liability of a selling Holder be greater in amount than the dollar amount of the proceeds (net of all expenses paid by such Holder in connection with any claim relating to this Section 5 and the amount of any damages such Holder has otherwise been required to pay by reason of such untrue statement or omission) received by such Holder upon the sale of the Registrable Securities included in the Registration Statement giving rise to such indemnification obligation.
 
(c)        Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall have the right to assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof, provided that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have materially and adversely prejudiced the Indemnifying Party.

		13	

An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless:  (1) the Indemnifying Party has agreed in writing to pay such fees and expenses, (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding, or (3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and counsel to the Indemnified Party shall reasonably believe that a material conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and the reasonable fees and expenses of no more than one separate counsel shall be at the expense of the Indemnifying Party).  The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld or delayed.  No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.
 
Subject to the terms of this Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within twenty (20) Trading Days of written notice thereof to the Indemnifying Party, provided that the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable to such actions for which such Indemnified Party is finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) not to be entitled to indemnification hereunder.

		14	

(d)       Contribution. If the indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party or insufficient to hold an Indemnified Party harmless for any Losses, then each Indemnifying Party shall contribute to the amount paid or payable by such Indemnified Party, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission.  The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Agreement, any reasonable attorneys’ or other fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to such party in accordance with its terms.
 
The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph.  In no event shall the contribution obligation of a Holder of Registrable Securities be greater in amount than the dollar amount of the proceeds (net of all expenses paid by such Holder in connection with any claim relating to this Section 5 and the amount of any damages such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission) received by it upon the sale of the Registrable Securities giving rise to such contribution obligation.
 
The indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties.
 
		6. 
	Miscellaneous.

 
(a)        Remedies.  In the event of a breach by the Company or by a Holder of any of their respective obligations under this Agreement, each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, shall be entitled to specific performance of its rights under this Agreement.  Each of the Company and each Holder agrees that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance in respect of such breach, it shall not assert or shall waive the defense that a remedy at law would be adequate.

		15	

(b)        No Piggyback on Registrations; Prohibition on Filing Other Registration Statements.  Except for the shares of Common Stock issuable upon exercise of the warrants issued to the Placement Agent in the transactions contemplated by the Purchase Agreement, neither the Company nor any of its security holders (other than the Holders in such capacity pursuant hereto) may include securities of the Company in any Registration Statements other than the Registrable Securities.  The Company shall not file any other registration statements until all Registrable Securities are registered pursuant to a Registration Statement that is declared effective by the Commission, provided that this Section 6(b) shall not prohibit the Company from filing amendments to registration statements filed prior to the date of this Agreement so long as no new securities are registered on any such existing registration statements.

(c)        Discontinued Disposition.  By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of a notice from the Company of the occurrence of any event of the kind described in Section 3(d)(iii) through (vi), such Holder will forthwith discontinue disposition of such Registrable Securities under a Registration Statement until it is advised in writing (the “Advice”) by the Company that the use of the applicable Prospectus (as it may have been supplemented or amended) may be resumed.  The Company will use its best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable.  The Company agrees and acknowledges that any periods during which the Holder is required to discontinue the disposition of the Registrable Securities hereunder shall be subject to the provisions of Section 2(d).
 
(d)       Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed by the Company and the Holders of 50.1% or more of the then outstanding Registrable Securities (for purposes of clarification, this includes any Registrable Securities issuable upon exercise or conversion of any Security), provided that, if any amendment, modification or waiver disproportionately and adversely impacts a Holder (or group of Holders), the consent of such disproportionately impacted Holder (or group of Holders) shall be required.  If a Registration Statement does not register all of the Registrable Securities pursuant to a waiver or amendment done in compliance with the previous sentence, then the number of Registrable Securities to be registered for each Holder shall be reduced pro rata among all Holders and each Holder shall have the right to designate which of its Registrable Securities shall be omitted from such Registration Statement. Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of a Holder or some Holders and that does not directly or indirectly affect the rights of other Holders may be given only by such Holder or Holders of all of the Registrable Securities to which such waiver or consent relates; provided, however, that the provisions of this sentence may not be amended, modified, or supplemented except in accordance with the provisions of the first  sentence of this Section 6(d). No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration also is offered to all of the parties to this Agreement.

		16	

(e)        Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be delivered as set forth in the Purchase Agreement.  

(f)        Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties and shall inure to the benefit of each Holder. The Company may not assign (except by merger) its rights or obligations hereunder without the prior written consent of all of the Holders of the then outstanding Registrable Securities.  Each Holder may assign their respective rights hereunder in the manner and to the Persons as permitted under Section 5.7 of the Purchase Agreement.

(g)        No Inconsistent Agreements. Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall the Company or any of its Subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities, that would have the effect of impairing the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof.  Except as set forth on Schedule 6(i), neither the Company nor any of its Subsidiaries has previously entered into any agreement granting any registration rights with respect to any of its securities to any Person that have not been satisfied in full.

(h)        Execution and Counterparts. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart.  In the event that any signature is delivered by e-mail delivery of a “.pdf” format data file or any electronic signature complying with the U.S. federal ESIGN Act of 2000 (e.g., www.docusign.com), such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such “.pdf” signature page were an original thereof.

(i)         Governing Law.  All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined in accordance with the provisions of the Purchase Agreement.

(j)         Cumulative Remedies. The remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

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

		17	

 
(l)         Headings. The headings in this Agreement are for convenience only, do not constitute a part of the Agreement and shall not be deemed to limit or affect any of the provisions hereof.

(m)       Independent Nature of Holders’ Obligations and Rights. The obligations of each Holder hereunder are several and not joint with the obligations of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of the obligations of any other Holder hereunder. Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that the Holders are in any way acting in concert or as a group or entity with respect to such obligations or the transactions contemplated by this Agreement or any other matters, and the Company acknowledges that the Holders are not acting in concert or as a group, and the Company shall not assert any such claim, with respect to such obligations or transactions. Each Holder shall be entitled to 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. The use of a single agreement with respect to the obligations of the Company contained was solely in the control of the Company, not the action or decision of any Holder, and was done solely for the convenience of the Company and not because it was required or requested to do so by any Holder.  It is expressly understood and agreed that each provision contained in this Agreement is between the Company and a Holder, solely, and not between the Company and the Holders collectively and not between and among Holders.
 
********************
 
(Signature Pages Follow)
		18	

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

	 
	 

	 
	By:
	

	 
	 
	Name:

	 
	 
	Title:

 
 
 
[SIGNATURE PAGE OF HOLDERS FOLLOWS]
 
		19	

[SIGNATURE PAGE OF HOLDERS TO TBLT RRA]
 
            
	Name of Holder: 
	__________________________

	
	

	Signature of Authorized Signatory of Holder: 
	__________________________

	 
	 

	Name of Authorized Signatory: 
	_________________________

	 
	 

	Title of Authorized Signatory: 
	__________________________

 
[SIGNATURE PAGES CONTINUE]
 
		20	

Annex A

Plan of Distribution
 
Each Selling Stockholder (the “Selling Stockholders”) of the securities and any of their pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their securities covered hereby on the Nasdaq Capital Market or any other stock exchange, market or trading facility on which the securities are traded or in private transactions.  These sales may be at fixed or negotiated prices.  A Selling Stockholder may use any one or more of the following methods when selling securities:
 
		·
	ordinary brokerage transactions and transactions in which the broker‐dealer solicits purchasers;

 
		·
	block trades in which the broker‐dealer will attempt to sell the securities as agent but may position and resell a portion of the block as principal to facilitate the transaction;

 
		·
	purchases by a broker‐dealer as principal and resale by the broker‐dealer for its account;

 
		·
	an exchange distribution in accordance with the rules of the applicable exchange;

 
		·
	privately negotiated transactions;

 
		·
	settlement of short sales; 

 
		·
	in transactions through broker‐dealers that agree with the Selling Stockholders to sell a specified number of such securities at a stipulated price per security;

 
		·
	through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

 
		·
	a combination of any such methods of sale; or

 
		·
	any other method permitted pursuant to applicable law.

 
The Selling Stockholders may also sell securities under Rule 144 or any other exemption from registration under the Securities Act of 1933, as amended (the “Securities Act”), if available, rather than under this prospectus.
 
Broker‐dealers engaged by the Selling Stockholders may arrange for other brokers‐dealers to participate in sales.  Broker‐dealers may receive commissions or discounts from the Selling Stockholders (or, if any broker‐dealer acts as agent for the purchaser of securities, from the purchaser) in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an agency transaction not in excess of a customary brokerage commission in compliance with FINRA Rule 2121; and in the case of a principal transaction a markup or markdown in compliance with FINRA Rule 2121.  

		21	

In connection with the sale of the securities or interests therein, the Selling Stockholders may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the securities in the course of hedging the positions they assume.  The Selling Stockholders may also sell securities short and deliver these securities to close out their short positions, or loan or pledge the securities to broker-dealers that in turn may sell these securities.  The Selling Stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or create one or more derivative securities which require the delivery to such broker-dealer or other financial institution of securities offered by this prospectus, which securities such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).
 
The Selling Stockholders and any broker-dealers or agents that are involved in selling the securities may be deemed to be “underwriters” within the meaning of the Securities Act in connection with such sales.  In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act.  Each Selling Stockholder has informed the Company that it does not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute the securities. 
 
The Company is required to pay certain fees and expenses incurred by the Company incident to the registration of the securities.  The Company has agreed to indemnify the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.  
 
We agreed to keep this prospectus effective until the earlier of (i) the date on which the securities may be resold by the Selling Stockholders without registration and without regard to any volume or manner-of-sale limitations by reason of Rule 144, without the requirement for the Company to be in compliance with the current public information under Rule 144 under the Securities Act or any other rule of similar effect or (ii) all of the securities have been sold pursuant to this prospectus or Rule 144 under the Securities Act or any other rule of similar effect.  The resale securities will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in certain states, the resale securities covered hereby may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied with.
 
Under applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the resale securities may not simultaneously engage in market making activities with respect to the common stock for the applicable restricted period, as defined in Regulation M, prior to the commencement of the distribution.  In addition, the Selling Stockholders will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of the common stock by the Selling Stockholders or any other person.  We will make copies of this prospectus available to the Selling Stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale (including by compliance with Rule 172 under the Securities Act).
 
		22	

 
 
SELLING SHAREHOLDERS
 
The common stock being offered by the selling shareholders are those previously issued to the selling shareholders, and those issuable to the selling shareholders, upon exercise of the warrants.  For additional information regarding the issuances of those shares of common stock and warrants, see “Private Placement of Shares of Common Stock and Warrants” above.  We are registering the shares of common stock in order to permit the selling shareholders to offer the shares for resale from time to time.  Except for the ownership of the shares of common stock and the warrants, the selling shareholders have not had any material relationship with us within the past three years.
 
The table below lists the selling shareholders and other information regarding the beneficial ownership of the shares of common stock by each of the selling shareholders.  The second column lists the number of shares of common stock beneficially owned by each selling shareholder, based on its ownership of the shares of common stock and warrants, as of ________, 2022, assuming exercise of the warrants held by the selling shareholders on that date, without regard to any limitations on exercises.
 
The third column lists the shares of common stock being offered by this prospectus by the selling shareholders.
 
In accordance with the terms of a registration rights agreement with the selling shareholders, this prospectus generally covers the resale of the sum of (i) the number of shares of common stock issued to the selling shareholders in the “Private Placement of Shares of Common Stock and Warrants” described above and (ii) the maximum number of shares of common stock issuable upon exercise of the related warrants, determined as if the outstanding warrants were exercised in full as of the trading day immediately preceding the date this registration statement was initially filed with the SEC, each as of the trading day immediately preceding the applicable date of determination and all subject to adjustment as provided in the registration right agreement, without regard to any limitations on the exercise of the warrants.  The fourth column assumes the sale of all of the shares offered by the selling shareholders pursuant to this prospectus.
 
Under the terms of the warrants and other warrants held by selling shareholders, a selling shareholder may not exercise any such warrants to the extent such exercise would cause such selling shareholder, together with its affiliates and attribution parties, to beneficially own a number of shares of common stock which would exceed 4.99% or 9.99%, as applicable, of our then outstanding common stock following such exercise, excluding for purposes of such determination shares of common stock issuable upon exercise of such warrants which have not been exercised. The number of shares in the second and fourth columns do not reflect this limitation.  The selling shareholders may sell all, some or none of their shares in this offering.  See "Plan of Distribution."
 
		23	

 
	Name of Selling Shareholder
	Number of shares of
 Common Stock Owned 
Prior to Offering
	Maximum Number of 
shares of Common Stock 
to be Sold Pursuant to this 
Prospectus
	Number of shares of 
Common Stock Owned 
After Offering

 
		24	

Annex C
 
ToughBuilt Industries, Inc.
 
Selling Stockholder Notice and Questionnaire
 
The undersigned beneficial owner of common stock (the “Registrable Securities”) of ToughBuilt Industries, Inc., a Nevada corporation (the “Company”), understands that the Company has filed or intends to file with the Securities and Exchange Commission (the “Commission”) a registration statement (the “Registration Statement”) for the registration and resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”), of the Registrable Securities, in accordance with the terms of the Registration Rights Agreement (the “Registration Rights Agreement”) to which this document is annexed.  A copy of the Registration Rights Agreement is available from the Company upon request at the address set forth below.  All capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Registration Rights Agreement.
 
Certain legal consequences arise from being named as a selling stockholder in the Registration Statement and the related prospectus.  Accordingly, holders and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences of being named or not being named as a selling stockholder in the Registration Statement and the related prospectus.
 
NOTICE
 
The undersigned beneficial owner (the “Selling Stockholder”) of Registrable Securities hereby elects to include the Registrable Securities owned by it in the Registration Statement.
 
		25	

 
The undersigned hereby provides the following information to the Company and represents and warrants that such information is accurate:
 
QUESTIONNAIRE
 
		1.
	Name.

 
	 	(a)
	Full Legal Name of Selling Stockholder

	 
	 
	 

	 
	 
	

 

	 	(b)
	Full Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities are held:

	 
	 
	 

	 
	 
	 

 

	 	(c)
	Full Legal Name of Natural Control Person (which means a natural person who directly or indirectly alone or with others has power to vote or dispose of the securities covered by this Questionnaire):

	 
	 
	 

	 
	 
	 

 

		2.
	Address for Notices to Selling Stockholder:

 
	 

	 

	 

	Telephone:
	 

	E-Mail:
	 

	Contact Person:
	 

 
		3.
	Broker-Dealer Status:

 
		(a)
	Are you a broker-dealer?

 
Yes    ̈               No    ̈
 
		(b)
	If “yes” to Section 3(a), did you receive your Registrable Securities as compensation for investment banking services to the Company?

 
Yes    ̈               No    ̈
 
		Note:
	If “no” to Section 3(b), the Commission’s staff has indicated that you should be identified as an underwriter in the Registration Statement.

 
		26	

 
		(c)
	Are you an affiliate of a broker-dealer?

 
Yes    ̈               No    ̈
 
		(d)
	If you are an affiliate of a broker-dealer, do you certify that you purchased the Registrable Securities in the ordinary course of business, and at the time of the purchase of the Registrable Securities to be resold, you had no agreements or understandings, directly or indirectly, with any person to distribute the Registrable Securities?

 
Yes    ̈               No    ̈
 
		Note:
	If “no” to Section 3(d), the Commission’s staff has indicated that you should be identified as an underwriter in the Registration Statement.

 
		4.
	Beneficial Ownership of Securities of the Company Owned by the Selling Stockholder.

Except as set forth below in this Item 4, the undersigned is not the beneficial or registered owner of any securities of the Company other than the securities issuable pursuant to the Purchase Agreement.
 
	 	(a)
	Type and Amount of other securities beneficially owned by the Selling Stockholder:

	 
	 
	 

	 
	 
	 

		27	

 
		5.
	Relationships with the Company:

Except as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more of the equity securities of the undersigned) has held any position or office or has had any other material relationship with the Company (or its predecessors or affiliates) during the past three years.
 
	 	State any exceptions here:

	 
	 

	 
	 

The undersigned agrees to promptly notify the Company of any material inaccuracies or changes in the information provided herein that may occur subsequent to the date hereof at any time while the Registration Statement remains effective; provided, that the undersigned shall not be required to notify the Company of any changes to the number of securities held or owned by the undersigned or its affiliates.
 
By signing below, the undersigned consents to the disclosure of the information contained herein in its answers to Items 1 through 5 and the inclusion of such information in the Registration Statement and the related prospectus and any amendments or supplements thereto.  The undersigned understands that such information will be relied upon by the Company in connection with the preparation or amendment of the Registration Statement and the related prospectus and any amendments or supplements thereto.
 
IN WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person or by its duly authorized agent.
 
	Date: 
	

	 
	Beneficial Owner:
	 

	 
	 
	 
	 
	 

	 
	 
	 
	By:
	 

	 
	 
	 
	 
	Name:

	 
	 
	 
	 
	Title:

 
PLEASE EMAIL A .PDF COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE TO:

 
		28Exhibit 10.1

 

VIDEO GAME DEVELOPMENT AGREEMENT 

 

(Cover Page) 

 

	 	
    L A M Y 

     
	 	
    201 Allen St.

    Unit 10104

    New York, NY 10002

     

    Attn: General Counsel

     

    Email: lamyinc@mail.com

     

	 	 	 
	 	
    EMILE LAWRENCE, SE 

     
	 	
    45 Cockroft Place

    Cambridge CB30HF, England, U. K.

    

    Email: emlawrence66@outlook.com

     

	 	 	 
	 	
    Effective Date

     
	 	
    May 5, 2022

     

	 	 	 
	 	
    TwoPlus1 Video Game

     
	 	
    “TwoPlus1 Video Game” otherwise the “Game”,
    denotes an interactive entertainment product known as “TwoPlus1” (or such other name as the parties hereto mutually agree),
    which requires development. The product is in the genre of an educational video game for children that provides learning and training
    value to the player.

     

    “TwoPlus1 Game Mobile Version” means the same game
    version of a product capable of operating on a mobile or portable device (including tablets, smart phones, virtual reality headsets, and
    HTML5 products. Mobile Versions also include products that operate on any past, present or future mobile operating systems such as Android,
    iOS, and Windows Phone.

     

	 	 	 
	 	
    Territory

     
	 	
    Worldwide

     

	 	 	 	 
	 	
    Term; Renewal

     
	 	
    Term: The Term of further development of Game begins on the
    Effective Date and continues for three years from the Effective Date unless both parties mutually agree in writing to extend the Term
    at least thirty (30) days prior to the expiry of the Term. Upon the Commercial Launch of Game, this Agreement shall continue in full
    force and effect until terminated pursuant to Section 8.2 or 8.3 of the Terms and Conditions attached hereto as Attachment or pursuant
    mutual agreement between the parties hereto in writing (the “Term”).

     

	 	 	 	 
	 	
    Sublicensing

     
	 	
    Sublicense Rights. L A M Y may, in accordance with this paragraph,
    sublicense its rights to operate the TwoPlus1Game under this Agreement to one or more third parties upon prior written notice to Emile
    Lawrence, SE.

     

	 	 	 
	 	
    Attachments

     
	 	
    Attachment – Terms and Conditions

     

 

 

    	 	1	 

     

    

 

This Video Game Development Agreement, which consists
of this Cover Page, the Terms and Conditions attached as Attachment, each of which are incorporated by reference (collectively,
the “Agreement”) is entered into as of the aforesaid Effective Date between L A M Y and Emile Lawrence, SE., otherwise
“Lawrence”. This Agreement contains the terms and conditions under which Lawrence, grants L A M Y the right to exploit TwoPlus1in
any commercial way, before or after Lawrence’s contributions to its development.

 

Agreed and signed by each party’s duly authorized representative:

 

	“L A M Y”	 	 	 	“Emile Lawrence, SE.”
	 	 	 
	 	 	 	 	 
	Name:	 	
    Dwight Witmer
	 	 	 	Name:	 	
    Emile Lawrence

	Title:	 	
    Director
	 	 	 	Title:	 	
    Self

	Signature:	 	
    /s/ Dwight
Witmer
	 	 	 	Signature:	 	
    /s/ Emile
Lawrence

 

 

 

 

 

 

 

 

 

 

 

 

    	 	2	 

     

    

 

ATTACHMENT 

 

TERMS AND CONDITIONS 

 

These Terms and Conditions form a part of the Agreement between L
A M Y and Lawrence, identified on the Cover Page to which these Terms and Conditions are attached. The parties agree as follows:

 

	1.	DEFINITIONS 

 

1.1 “Business Day” means any
day other than a Saturday, Sunday or official holiday.

 

1.2 “Commercial Launch” means
the Game is made commercially available to an unlimited number of end users and L A M Y fully enables the monetization features.

 

1.3 “Game Virtual Currency” means
any virtual currency or other denotation of value that is made available only within the Game, which may be used by an end user to purchase
the Game’s virtual items.

 

1.4 “Game Virtual Items” means
items, item sets, avatars, attributes, abilities, skills, skill levels, services, “VIP” status privileges, or other in-game
consumables, features or functionality (whether representing an actual or fictional item) which may be acquired or used by an end user
within the Game. In some instances, Game Virtual Items may be purchased using the Game’s virtual currency.

 

1.4A “TwoPlus1 Virtual Currency”
means any virtual currency that is made available within the TwoPlus1 platform, but that may not be converted back or exchanged back for
real goods or hard currency.

 

1.4B “TwoPlus1 Platform” means
the video game platforms that are managed, hosted, held, controlled, or operated by L A M Y.

 

1.4C “TwoPlus1 Platform Data”
means any data or information that is submitted by an end user through the TwoPlus1 platform or otherwise collected by L A M Y as a result
of an end user’s access or use of the TwoPlus1 platform, including user name, password, profile, social graph data, TwoPlus1 ID
and email address.

 

1.5 “TwoPlus1 IP” means the TwoPlus1
intellectual property and all other works of authorship or other material or information relating thereto owned, controlled, developed,
licensable, or sublicensable by L A M Y or its affiliates during the Term, including: (a) text, video, visual displays, scripts,
literary treatments, characters, character skills and abilities, character biographies and background stories, backgrounds, environments,
rules and play patterns, and other elements visible to the user of a game or other product; (b) all sounds, sound effects, sound
tracks, and other elements audible to the user of a game or other product; (c) all methods in which the user interacts with the characters,
backgrounds, environments, or other elements of a game or other product; (d) the distinctive and particular elements of design, organization,
presentation, “look and feel,” layout, user interface, navigation, trade dress, and stylistic convention (including the digital
implementations) within a game or other product and the total appearance and impression substantially formed by the combination, coordination
and interaction of these elements; (e)source code and object code; (f) any other proprietary elements of a game; (g) client
or “app” software that is installed on an end user’s mobile device to enable the end user to play a Branded Game; (h) server
software and databases; (i) manuals, specifications, user guides, Frequently-Asked-Questions, and other documentation; (j) any
other material or information; (k) all derivative works of the TwoPlus1 IP made by or on behalf of L A M Y or its affiliates; (l)
all other Upgrades or modifications, improvements, or derivative works to any of the items listed in (a) through (k) including any
such Upgrades or modifications, improvements, or derivative works produced hereunder.

 

1.6 “TwoPlus1 Marks” mean all
trade marks, service marks, words, taglines, names, symbols, devices, designs, indicia of origin, short phrases, and short sayings, including
titles, logos, product designs, product features, character names, nicknames, personas, sounds, place names, scenes, things, and events,
as well as any translations, foreign language equivalents, and combinations, in each case owned by L A M Y or its affiliates.

 

 

 

    	 	3	 

     

    

 

1.7 “Licensed IP” means the TwoPlus1
intellectual property and all its material and non-material components which Lawrence incorporates into the Game or otherwise uses in
developing, publishing, distributing, operating, marketing, advertising, promoting or exploiting the Game, subject to L A M Y’s
approval pursuant to Section 3.3.

 

1.8 “Licensed Marks” means all
elements of TwoPlus1 Marks which L A M Y incorporates into the Game or otherwise uses in developing, publishing, distributing, operating,
marketing, advertising, promoting or exploiting the Game, subject to L A M Y’s approval pursuant to Section 3.3.

 

1.9 “Personal Data” means any
data or information that can be used, individually or together with other information, to identify, contact, or locate an end user, including
a person’s name, mailing address, email address, or similar account ID, telephone number, financial information, or government-issued
identifier.

 

1.10 “TwoPlus1 Mark” means a
word, name, symbol, device, design, or other designation, or a combination of the preceding items, used by or on behalf of L A M Y to
identify or distinguish the Game, TwoPlus1 services, TwoPlus1 entities, or the TwoPlus1 Platform, including logos, designs, characters,
phrases, titles, artwork, and other creative elements.

 

1.11 “TwoPlus1 Platform” means
the social networking, mobile gaming distribution channels, and other platforms that are hosted, held, controlled, or operated by L A
M Y or its affiliates.

 

1.12 “TwoPlus1 Platform Data”
means any data or information that is submitted by an end user through the TwoPlus1 Platform or otherwise collected by L A M Y as a result
of an end user’s access or use of the TwoPlus1 Platform, including user name, password, profile, social graph data, any TwoPlus1
ID, and email address.

 

1.13 “TwoPlus1 Virtual Currency”
means any virtual currency that is made available within the TwoPlus1 Platform, but that may not be converted or exchanged for real goods
or hard currency.

 

1.14 “Upgrade” means a modification
of, addition to, or extension of a game or other product, correction, update, upgrade, patch, enhancement, extension, or new release,
whether combined with the original game or product or distributed, marketed, or sold separately or sold under a different title.

 

1.15 “affiliate” means with respect
to a specified entity, an entity that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under
common control with, the specified entity. For purposes of this definition, the term “control” (including the terms “controlling”,
“controlled by” and “under common control with”) means the possession, direct or indirect, of more than 50% of
voting power, through ownership of voting securities, by contract or otherwise.

 

1.16 Other Terms. Other capitalized terms
used but not defined where they initially appear in these Terms and Conditions will have the meanings set forth on the Cover Page.

 

	2.	LICENSE 

 

2.1 Lawrence, License Grant. Subject to the
terms and conditions of this Agreement, Lawrence, hereby grants to L A M Y under all intellectual property rights owned or licensable
by Lawrence, or any affiliate a non-transferable (except in accordance with Section 12.7), sublicenseable (as set forth on the Cover
Page) license during the Term to use such Licensed IP solely to develop, market, and distribute the Game worldwide. This license includes
the rights to: (a)modify, develop, publish, distribute, operate, and exploit the Game in any territory at any time.

 

2.2 Lawrence, License Grant. Subject to
the terms and conditions of this Agreement, Lawrence, hereby grants to L A M Y under all of Lawrence’s intellectual property rights
in the Game to: (a) publish, distribute, operate and exploit the Game (including Upgrades) worldwide; (b) use any TwoPlus1
Marks associated with the Game to market advertise, promote and exploit the Game in any Territory, including in promotional and marketing
materials, domain names and social media identifiers; and (c) use, reproduce, host, perform, display, transmit, broadcast, adapt
and translate the Game and other TwoPlus1 Materials as necessary to market and make available to end users the Game in any Territory.
The rights granted by Lawrence, in this Agreement are exclusive as more specifically described on the Cover Page, and include any additional
license rights set forth on the Cover Page.

 

 

 

 

    	 	4	 

     

    

 

	3.	COOPERATION 

 

3.1 Personnel. L A M Y and Lawrence, may
each appoint an individual or a team of qualified personnel to be responsible for fulfilling their respective obligations of developing
Game under this Agreement. L A M Y and Lawrence will ensure that their respective appointed individuals or teams will have the necessary
resources and capabilities to perform that party’s respective obligations under this Agreement, and that their respective appointed
individuals or teams will perform their obligations in a professional manner, consistent with best industry standards.

 

3.2 Deliverables. Lawrence will deliver to
L A M Y all deliverables in accordance with the specifications as agreed between the Parties from time to time. If L A M Y determines
that any of the deliverables do not conform to the specifications, then L A M Y will issue to Lawrence a notice of rejection in accordance
with Section 12.6 as soon as reasonably practicable. Upon receiving a rejection notice from L A M Y that describes the reasons for
that rejection, Lawrence will use commercially reasonable efforts to correct the rejected deliverables and deliver those corrected deliverables
for test and evaluation by L A M Y within a period to be agreed upon by the parties. The test and evaluation procedures provided in this
Section3.2 will be repeated for the corrected deliverables until L A M Y accepts those deliverables. In addition, upon L A M Y’s
request, Lawrence will provide L A M Y with “master copies” of Licensed IP free of charge.

 

3.3 L A M Y Approval. L A M Y will appoint
an individual as the points of contact for reviewing and approving Lawrence’s implementation of the Licensed IP in the Game. Lawrence
will use commercially reasonable efforts to submit to L A M Y all Branded Materials made by or on behalf of Lawrence or its affiliates
before such Branded Materials are made available to end users in the Game. L A M Y may not reject any Branded Materials without proper
reason, and will provide Lawrence written notice specifying the reasons for rejection. Lawrence may use any Branded Materials without
seeking approval if L A M Y previously approved those Branded Materials and Lawrence has not since materially modified the Branded Materials
provided always that such Branded Materials are only used in accordance with Section 2.1.

 

3.4 Distribution.

 

L A M Y. L A M Y has the sole right to create,
design, edit, manage, host and otherwise control the presentation of the Game and the Platform in any territory. L A M Y may stop any
end user or other transaction, or take other actions to restrict access to or the availability of the Game in any territory. Lawrence
has no approval right over L A M Y’s operation of the Game or distribution of the Game in any territory.

 

3.5 EULA. Lawrence will prepare and maintain
an end user license agreement (“EULA”) for use of the Game by end users.

 

3.6 Compliance. (A) Lawrence must ensure
at all times that all Licensed IP and deliverables provided by Lawrence comply with this Agreement and all applicable L A M Y policies
that are communicated to Lawrence. Distribution of the Game by L A M Y, or any withdrawal of the Game from the TwoPlus1 Platform, does
not relieve Lawrence of its responsibilities to ensure the Licensed IP complies with this Agreement and to perform all of its other obligations
under this subsection 3.6(A). (B) Lawrence must ensure at all times that the and Lawrence Materials comply with this Agreement and all
applicable L A M Y policies that are communicated to Lawrence. Distribution of the Game by L A M Y, or any withdrawal of the Game from
any platform, does not relieve Tencent of its responsibilities under this subsection 3.6(B).

 

3.7 License to Lawrence Materials. Lawrence
may provide L A M Y with access to Lawrence’s technical documentation, software, and other materials (“lawrence Materials”).
For the avoidance of doubt, Lowrence Materials do not include the Game or any Licensed IP. Subject to the provisions hereunder, Lawrence
hereby grants L A M Y a nonexclusive, nontransferrable (except in accordance with Section 12.7), royalty-free license during the
Term of this Agreement to use those Lawrence Materials only for the purpose of assisting Lawrence with the design, development, integration,
and testing of the Game in order for Parties to distribute, host, operate, and otherwise exploit the Game under this Agreement. The Lawrence
Materials are Lawrence’s Confidential Information. L A M Y must not use the Lawrence Materials with any software or other materials
that are subject to any third party licenses or restrictions (e.g., open source software licenses) that, when combined with the Lawrence
Materials, would require Lawrence to disclose, license, distribute or otherwise make all or any part of those Lawrence Materials (whether
alone or with that software or other materials) available to any third party.

 

 

 

 

    	 	5	 

     

    

 

3.8 Pirated Games. In the event of any third
party making available the Game or a substantially similar game to the Game without authorization anywhere in the world during the Term,
L A M Y or its affiliates is entitled to take legal actions reasonably determined by L A M Y (including issue the take-down notice to
any relevant third party against that third party). Lawrence further agrees to, following L A M Y’s or its affiliates’ request,
provide L A M Y or its affiliates with all necessary legal documents required under the laws and judicial practice in the relevant jurisdiction
for L A M Y or its affiliates to take such legal actions, including but not limited to the relevant chain of title documents with respect
to Licensed IP sufficient to support that L A M Y or its affiliates is entitled to take such legal actions in the jurisdiction.

 

3.9 Customer Support. Lawrence is responsible
for providing customer support (if any) for the Games to end users.

 

3.10 Responsibility for Costs. Each party
will be responsible for all costs and expenses incurred by it in connection with its performance of this Agreement, unless otherwise expressly
provided in this Agreement.

 

	4.	MARKETING 

 

4.1 Marketing. L A M Y will have the sole
right to determine the marketing, advertising, and promotion of the Game.

 

	5.	PAYMENT; REPORTING; AUDIT

 

5.1 Payments and Reports. With reference
to the aforesaid, beginning on January 1 2023, L A M Y will pay Lawrence the amount of $2,000 per month via electronic fund transfer upon
receipt of an accurate and complete invoice that complies with Payee’s policies. All payments, will be made in U.S. dollars. If
currency conversion is required, payment shall be based on the medium exchange rate published by the major US and UK banks.

 

5.2 Taxes. All payments by L A M Y to Lawrence
under this Agreement include all applicable taxes, and Payee will be responsible for the payment of all withholding or income taxes owed
in connection with this Agreement. Payor reserves the right to withhold only applicable withholding income taxes payable by Payee (but
not VAT or other taxes on payments) from amounts due from Payor if required by applicable tax laws, and those amounts due, as reduced
by Payor’s withholdings, will constitute full payment to Payee. Payor will furnish to Payee the original receipts or other government
certifications evidencing all taxes withheld from such payment promptly after such receipts are available.

 

5.3 Audit. For so long as Payor publishes,
distributes, and operates the Game, Payor will keep records regarding the publication, distribution, and operation of the Game. Payee
may, no more than once each calendar year, upon 30 calendar days’ prior notice, during the regular business hours of Payor on a
mutually agreeable date, have a mutually agreed independent accountant from one of the top four international accounting firms (the “Auditor”)
conduct an audit of such records for the sole purpose of verifying that the payments made to Payee conform to Payor’s obligations
under this Agreement. Payee will be solely responsible for all costs and expenses of conducting the audit. The Auditor will be required
to sign a confidentiality agreement with respect to the records being examined. Payee acknowledges that Payor’s records and the
reports and results of any audit contain the Confidential Information of Payor, and are subject to the terms and conditions of Section 7
of this Agreement. Any undisputed underpayment will be paid by Payor. Any overpayment will be credited towards Payor’s next payment
to Payee.

 

	6.	DATA; OWNERSHIP 

 

6.1 L A M Y Ownership. L A M Y and its affiliates,
shall own all intellectual property and proprietary rights in and to all TwoPlus1 IP (including the Licensed IP), TwoPlus1 Platform, TwoPlus1
Platform Data, Game Data and Personal Data within on any territory. L A M Y and its affiliates own and reserve all right, title, goodwill
and interest in and to the TwoPlus1 IP subject to the licenses granted in Section 2.1. Furthermore, L A M Y and its affiliates own:
(a) the Game, the Game Titles, the Game Virtual Items, the Game Virtual Currencies and the marketing materials for the Game, any
game-play mechanics, meta and balance of the Game (including without limitation all resources, buffs, skills and abilities available to
characters and players of the Branded Game) (b) all hardware (other than end user mobile devices) related to the operation of the
Games, all source code of the Game, the Platform, Game Data and Personal Data on any Territory, as well as Platform Data, and Marks; and
(c) all other properties in whatever form, including hardware, software, customer data, user data, design documents, marketing plans,
specifications, manuals, know how, technology, methods, idea, concepts, websites, billing systems, anti-hacking software and all other
TwoPlus1 Materials, and in each case, where applicable, subject to Section 6.2, including Lawrence’s underlying rights in the
Licensed IP (collectively, the “TwoPlus1 Property”). L A M Y and its affiliates own and reserve all right, title, and
interest in and to the TwoPlus1 Property. To the extent L A M Y has applied for copyright or trademark registration in the Game or the
Game Logo.

 

 

 

 

    	 	6	 

     

    

 

6.2 Feedback. For any feedback or suggestions
provided by Lawrence to L A M Y or any of its affiliates regarding any TwoPlus1 Property, including any modification to any source code
that Lawrence makes available to L A M Y (“Feedback”), Lawrence hereby assigns to L A M Y all of Lawrence’s right,
title, and interest in and to the Feedback, including all intellectual property and proprietary rights. Accordingly, Feedback is also
L A M Y’s Property. For the avoidance of doubt, Feedback shall not include any Licensed IP.

 

	7.	CONFIDENTIAL INFORMATION 

 

7.1 “Confidential Information”
means any: (a) proprietary information of a party to this Agreement disclosed by one party to the other that is in written, graphic,
machine readable or other tangible form and is marked “Confidential” or “Proprietary” or in some other manner
to indicate its confidential nature; and (b)all information collected or developed by a party regarding its customers. Confidential Information
also include oral disclosures if that information would reasonably be understood to be confidential from the context of disclosure. TwoPlus1
Platform Data, Game Data and Personal Data collected is L A M Y’s Confidential Information.

 

7.2 Exceptions. Confidential Information
will not include any information that: (a) was publicly known and made generally available prior to the time of disclosure by the
disclosing party; (b) becomes publicly known and made generally available after disclosure by the disclosing party to the receiving
party through no action or inaction of the receiving party; (c) is already in the possession of the receiving party at the time of
disclosure; (d) is obtained by the receiving party from a third party without a breach of that third party’s obligations of
confidentiality; or (e) is independently developed by the receiving party without use of or reference to the disclosing party’s
Confidential Information.

 

7.3 Non-Use and Non-Disclosure. Each party
will: (a) treat as confidential all Confidential Information of the other party; (b) not disclose that Confidential Information
to any third party, except on a “need to know” basis to third parties that have signed a non-disclosure agreement containing
provisions substantially as protective as the terms of this Section provided that the disclosing party has obtained the written consent
to that disclosure from the other party; and (c) will not use that Confidential Information except in connection with performing
its obligations or exercising its rights under this Agreement. Each party is permitted to disclose the other party’s Confidential
Information if required by law or stock exchange listing rules so long as the other party is given prompt written notice of that requirement
prior to disclosure and assistance in obtaining an order protecting that information from public disclosure.

 

	8.	TERM AND TERMINATION 

 

8.1 Term. This Agreement commences upon the
Effective Date and continues for the Term specified on the Cover Page.

 

8.2 Termination for Material Breach. Either
party may terminate this Agreement if the other party does not cure its material breach of this Agreement within 30 days of receiving
written notice of the material breach from the non-breaching party. Termination in accordance with this Section 8.2 will take effect
when the breaching party receives written notice of termination from the non-breaching party, which notice must not be delivered until
the breaching party has failed to cure its material breach during the 30-day cure period. If either party disputes in good faith whether
a material breach of this Agreement has occurred, that dispute will be resolved in accordance with the arbitration procedure set forth
in Section 12.5. This Agreement including the license grant will remain in effect unless the arbitrators have finally determined
that a material breach has occurred and within 30 days of such determination, the breaching party has failed to cure the material breach.

 

8.3 Insolvency. A party may immediately terminate
this Agreement upon written notice to the other party if the other party is subject to proceedings in bankruptcy or insolvency, voluntarily
or involuntarily, if a receiver is appointed with or without the other party’s consent, if the other party assigns its property
to its creditors or performs any other act of bankruptcy, or if the other party becomes insolvent and cannot pay its debts when they are
due.

 

 

 

 

    	 	7	 

     

    

 

8.4 Effects of Termination or Expiration.
Upon the expiration or termination of this Agreement:

 

(a) Unless either party (the “Terminating
Party”) terminates this Agreement for the other party’s (the “Terminated Party”) uncured material breach of this
Agreement, the Terminating Party will pay to the Terminated Party all moneys lost due to the breach, as applicable, that the Terminating
Party and the money owed to the Terminated Party as of the date of termination or expiration under this Agreement.

 

(b) Following any termination or expiration, both
parties may fulfil any purchase of a the Game or the Virtual Item that was pending as of the date that the termination or expiration takes
effect. Unless the Terminating Party determines otherwise, any termination or expiration will not affect further access, downloads or
re-downloads of the Game, Game Virtual Currency, or Game Virtual Items by end users who have purchased a the Game, Game Virtual Currency,
or Game Virtual Items before the date the termination or suspension takes effect, nor their rights in previously-downloaded Game, Game
Virtual Currency, or Game Virtual Items.

 

(c) Terminating Party is not obligated to return
copies of any materials received from the Terminated Party to the Terminated Party, subject to Section 7 above.

 

8.5 Survival of Certain Obligations. The
following provisions will survive the termination or expiration of this Agreement: Sections 6 through 12, and any other provisions that,
by their nature, are intended to survive. All liabilities that accrued prior to termination will also survive termination or expiration
of this Agreement.

 

	9.	REPRESENTATIONS AND WARRANTIES 

 

9.1 Authorization; Compliance with Laws.
Each party represents and warrants that: (a) they are personally responsible or are duly organized, validly existing, of sound person
or and in good standing in the jurisdiction stated in the preamble to this Agreement; (b) the execution and delivery of this Agreement
by such party has been duly and validly authorized; (c) this Agreement constitutes a valid, binding, and enforceable obligation of
such party; and (d) such party will comply with all applicable laws, rules, and regulations of any applicable governmental body in
performing under this Agreement.

 

9.2 No Conflict. Each party represents and
warrants that it will not grant any rights under any future agreement, nor will it permit or suffer any lien, obligation, or encumbrance
that will conflict with the full enjoyment by such party of its rights under this Agreement.

 

9.3 Right to Make Full Grant. Each party
represents and warrants that it has and will have all requisite rights to fully perform its obligations under this Agreement and to grant
to the other party all rights granted under this Agreement free and clear of all agreements, liens, adverse claims, encumbrances, and
interests of any person or entity, including such party’s employees, contractors, and its contractors’ employees and agents.

 

9.4 Performance and Licensed IP.
(A) Lawrence represents and warrants that: (a) the media on which Licensed IP are delivered will be free of defects in materials
and workmanship; (b) the materials and information provided as part of the Licensed IP are accurate in all material respects; and
(c) L A M Y will be able to fully use the Licensed IP without the use of any tools or other computer programs. If Lawrence breaches
a representation or warranty in this Section 9.4(A), Lawrence will promptly repair or replace a defective item or deliver a missing
item.

 

9.5 Third Party Materials. Lawrence represents
and warrants that the Licensed IP will not contain any software code that is subject to a license requiring, as a condition of use, modification,
or distribution of the software code, that the software code or other software code combined or distributed with it be: (a) disclosed
or distributed in source code form; (b) licensed for the purpose of making derivative works; or (c) redistributable at no charge.

 

9.6 Services. Each party represents and warrants
that any services it performs under this Agreement will be performed in a timely, competent, professional, and workmanlike manner by qualified
personnel.

 

 

 

 

    	 	8	 

     

    

 

9.7 Legal Proceedings. (A) Lawrence
represents and warrants that: (a) Lawrence is not involved in any legal proceeding (litigation, arbitration, mediation, or otherwise)
relating to any Licensed IP; (b) Lawrence has not received notice of a claim relating to any Licensed IP; and (c) Lawrence is
not aware of any facts or circumstances that might lead to a legal proceeding relating to any Licensed IP. (B) L A M Y represents
and warrants that: (a) L A M Y is not involved in any legal proceeding (litigation, arbitration, mediation, or otherwise (b) L
A M Y has not received notice of a claim relating to any TwoPlus2 Marks Game or any marketing materials therefor; and (c) L A M Y
is not aware of any facts or circumstances that might lead to a legal proceeding relating to any L A M Y Materials to be used in the the
Game or any marketing materials therefor.

 

9.8 Non-infringement. (A) L A M Y represents
and warrants that: (a)none of the Licensed IP infringes, misappropriates, or otherwise violates the rights of a third party nor will cause
Lawrence’s use, or reproduction of a the Game or any related item to infringe, misappropriate, or otherwise violate the rights of
a third party; and (b) L A M Y does not know of a third party that is infringing Lawrence’s rights to any of the Licensed IP.
materials therefor.

 

	10.	INDEMNIFICATION 

 

10.1 Indemnification. Each party (the “Indemnifying
Party”) will indemnify, defend, and hold harmless the other party and its affiliates and their directors, officers, and employees
(the “Indemnified Party”) from and against all taxes, losses, damages, liabilities, costs, and expenses, including attorneys’
fees and other legal expenses, arising directly or indirectly from or in connection with: (a) any breach by the Indemnifying Party
or its employees or agents of any of the warranties or representations contained in this Agreement; (b) any failure of the Indemnifying
Party to perform services under this Agreement in accordance with all applicable laws, rules, and regulations; (c) any violation
or claimed violation of a third party’s rights resulting in whole or in part from the Indemnified Party’s exercise of its
license rights under this Agreement; or (d) the Indemnifying Party’s negligence or wilful misconduct.

 

	11.	LIMITATION OF LIABILITY 

 

11.1 Disclaimer of Warranties. ALL PERFORMANCE
BY EACH PARTY AND ITS AFFILIATES IS PROVIDED “AS IS.”EACH PARTY AND ITS AFFILIATES MAKE NO REPRESENTATIONS OR WARRANTIES OF
ANY KIND WITH RESPECT TO THE GAME OR LICENSED IP OR OTHERWISE, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING IMPLIED WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, QUALITY, OR ACCURACY. EACH PARTY ACKNOWLEDGES AND AGREES THAT THE
OTHER PARTY CANNOT ENSURE THAT ANY MATERIAL SUBMITTED BY OR ON BEHALF OF THAT OTHER PARTY WILL BE PROTECTED FROM THEFT OR MISUSE, AND
THAT OTHER PARTY WILL HAVE NO LIABILITY ARISING FROM A FAILURE OF ANY SECURITY TECHNOLOGY OR PROCEDURE OR OF ANY END USER TO COMPLY WITH
THE EULA.

 

11.2 Disclaimer of Consequential Damages.
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, NEITHER PARTY WILL, UNDER ANY CIRCUMSTANCES, BE LIABLE TO THE OTHER
PARTY FOR CONSEQUENTIAL, INCIDENTAL, SPECIAL, PUNITIVE, OR EXEMPLARY DAMAGES ARISING OUT OF OR RELATED TO THE TRANSACTION CONTEMPLATED
UNDER THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO LOST PROFITS OR LOSS OF BUSINESS.

 

11.3 Cap on Liability. UNDER NO CIRCUMSTANCES
WILL A PARTY’S OR ANY OF ITS AFFILIATE’S TOTAL LIABILITY OF ALL KINDS ARISING OUT OF OR RELATED TO THIS AGREEMENT (INCLUDING
BUT NOT LIMITED TO WARRANTY CLAIMS), REGARDLESS OF THE FORUM AND REGARDLESS OF WHETHER ANY ACTION OR CLAIM IS BASED ON CONTRACT, TORT,
OR OTHERWISE, EXCEED THE TOTAL AMOUNT PAID OR PAYABLE BY SUCH PARTY TO THE OTHER PARTY UNDER THIS AGREEMENT FOR THE TWELVE-MONTH PERIOD
PRECEDING THAT CLAIM.

 

11.4 Independent Allocations of Risk. EACH
PROVISION OF THIS AGREEMENT THAT PROVIDES FOR A LIMITATION OF LIABILITY OR EXCLUSION OF DAMAGES IS TO ALLOCATE THE RISKS OF THIS AGREEMENT
BETWEEN THE PARTIES. THIS ALLOCATION IS AN ESSENTIAL ELEMENT OF THE BASIS OF THE BARGAIN BETWEEN THE PARTIES. EACH OF THESE PROVISIONS
IS SEVERABLE AND INDEPENDENT OF ALL OTHER PROVISIONS OF THIS AGREEMENT, AND EACH OF THESE PROVISIONS WILL APPLY EVEN IF THESE PROVISIONS
FAIL THEIR ESSENTIAL PURPOSE.

 

 

 

 

    	 	9	 

     

    

 

	12.	MISCELLANEOUS 

 

12.1 Subcontractors. Each party may exercise
its respective rights under this Agreement via its affiliates and subcontractors. Each party will be responsible for the compliance of
its affiliates and subcontractors with the terms of this Agreement.

 

12.2 Independent Contractor. The parties
are independent contractors in the performance of this Agreement. Without limiting the generality of the previous sentence, neither party
is authorized to bind the other party to any liability or obligation or to represent that it has any authority to do so.

 

12.3 Press Release. Except as expressly set
forth in this Agreement or as required by the laws of any jurisdiction, neither party will make any public announcement or press release
regarding the cooperation contemplated by this Agreement without the prior consent of the other party. Any party required by law to make
a public announcement regarding any matter related to the cooperation contemplated by this Agreement will solicit from and consider in
good faith the other party’s feedback on the content of that public announcement.

 

12.4 Force Majeure. No party to this Agreement
will be liable to the other party for any failure or delay in fulfilling an obligation under this Agreement, if that failure or delay
is attributable to circumstances beyond its control, including, but not limited to, any fire, power failure, labor dispute, war, civil
dispute, or government action (including any new law or regulation) or inaction (“Force Majeure”). The parties agree
that the deadline for fulfilling the obligation in question, and the Term, as applicable, will be extended for a period of time equal
to that of the continuance of the Force Majeure.

 

12.5 Governing Law and Resolution of Disputes.
This Agreement will be governed and construed in accordance with the Laws of the State of Wyoming, without reference to its choice of
law rules and not including the provisions of the 1980 U.N. Convention on Contracts for the International Sale of Goods. Except for the
right of either party to apply to any court of competent jurisdiction for a temporary restraining order, a preliminary injunction, or
other equitable relief to preserve the status quo or prevent irreparable harm, any dispute, controversy or claim arising in any way out
of or in connection with this Agreement, including the existence, validity, interpretation, performance, breach or termination of this
Agreement, or any dispute regarding pre-contractual or non-contractual rights or obligations arising out of or relating to it (“Dispute”)
will be referred to and finally resolved by binding arbitration of the court.

 

12.6 Notices. All notices under the terms
of this Agreement will be given in writing and sent by overnight courier, registered mail, email or will be delivered by hand to the addresses
set forth below. All notices will be deemed to have been received when they are hand delivered, or five Business Days after their mailing.

 

12.7 Assignment. Neither this Agreement nor
any rights or obligations under this Agreement may be assigned or otherwise transferred by either party, in whole or in part, whether
voluntarily or by operation of law, without the prior written consent of the other party. L A M Y and Lawrence may assign this agreement
or any rights and obligations under this Agreement to an affiliate or subsidiary without the other party’s consent by providing
a written notice to the other party prior to such assignment. Subject to this Section, this Agreement will be binding upon and will inure
to the benefit of the parties and their respective successors and assigns. Any assignment in violation of this Section will be null and
void.

 

12.8 Waiver. Any waiver of the provisions
of this Agreement or of a party’s rights or remedies under this Agreement must be in writing provided in accordance with Section 12.6
(Notices) to be effective. Failure, neglect, or delay by a party to enforce the provisions of this Agreement or its rights or remedies
at any time will not be construed as a waiver of the party’s rights under this Agreement and will not in any way affect the validity
of the whole or any part of this Agreement or prejudice the party’s right to take subsequent action. Exercise or enforcement by
either party of any right or remedy under this Agreement will not preclude the enforcement by the party of any other right or remedy under
this Agreement or that the party is entitled by law to enforce.

 

12.9 Severability. If any term, condition,
or provision in this Agreement is found to be invalid, unlawful, or unenforceable to any extent, the parties will endeavour in good faith
to agree to amendments that will preserve, as far as possible, the intentions expressed in this Agreement. If the parties fail to agree
on an amendment, the invalid term, condition, or provision will be severed from the remaining terms, conditions, and provisions of this
Agreement, which will continue to be valid and enforceable to the fullest extent permitted by law, and the Tribunal will preserve, as
far as possible, the original intention of the parties with respect to the severed term, condition, or provision.

 

 

 

 

    	 	10	 

     

    

 

12.10 Remedies Cumulative. No single or partial
exercise of any right or remedy will preclude any other or further exercise of any other right or remedy. Rights and remedies provided
in this Agreement are cumulative and not exclusive of any right or remedy provided at law or in equity.

 

12.11 Confidentiality of Agreement. Each
party will not disclose any terms of this Agreement to any third party without the consent of the other party, except as required by applicable
law.

 

12.12 Counterparts. This Agreement may be
executed in counterparts, each of which will be deemed to be an original and together will constitute one and the same agreement. This
Agreement may also be executed and delivered by facsimile or email and that execution and delivery will have the same force and effect
of an original document with original signatures.

 

12.13 Language. If this Agreement is executed
in more than one language, then only the English version is binding on the parties.

 

12.14 Headings. Headings are used in this
Agreement for reference only and will not be considered when interpreting this Agreement.

 

12.15 Integration. This Agreement and all
exhibits contain the entire agreement of the parties with respect to the subject matter of this Agreement and supersede all previous communications,
representations, understandings, and agreements, either oral or written, between the parties with respect to that subject matter. No terms,
provisions, or conditions of any purchase order, acknowledgement, or other business form that either party may use in connection with
the transactions contemplated by this Agreement will have any effect on the rights, duties, or obligations of the parties under, or otherwise
modify, this Agreement, regardless of any failure of a receiving party to object to these terms, provisions, or conditions. This Agreement
may not be amended, except by a writing signed by both parties.

 

[End of Attachment]

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	11

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