Document:

ex_390372.htm

Exhibit 4.1

 

NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD UNLESS (I) SUCH SECURITIES HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT, (II) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE 144, OR (III) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

PURSUANT TO SECTION 2 OF THIS WARRANT, ALL OR A PORTION OF THIS WARRANT MAY HAVE BEEN EXERCISED, AND THEREFORE THE ACTUAL NUMBER OF WARRANT SHARES REPRESENTED BY THIS WARRANT MAY BE LESS THAN THE AMOUNT SET FORTH ON THE FACE HEREOF.

 

 

 

UNDERWRITER COMMON STOCK PURCHASE WARRANT

 

BIOSIG TECHNOLOGIES, INC.

 

	Warrant Shares:                           	Issue Date: June __, 2022

                                             

 

THIS UNDERWRITER COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, _____________ or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the Issue Date set forth above and on or prior to 5:00 p.m. (New York City time) on June __, 2027 (the “Termination Date”), but not thereafter, to subscribe for and purchase from BioSig Technologies, Inc., a Delaware corporation (the “Company”), up to ______1 shares (as subject to adjustment hereunder, the “Warrant Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”). The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b). This Warrant is being issued pursuant to that certain underwriting agreement, dated as of June __, 2022, by and among the Company and Laidlaw & Company (UK) Ltd., as representative of the several underwriters named therein (the “Underwriting Agreement”).

 

Section 1.         Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in the Underwriting Agreement.

 

 

1 Insert number of shares equal to 5% of the aggregate number of shares of common stock sold in the offering.

 

 

 

Section 2.         Exercise.

 

a)    Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Issue Date and on or before the Termination Date by delivery to the Company of a duly executed facsimile copy or PDF copy submitted by e-mail (or e-mail attachment) of the Notice of Exercise in the form annexed hereto (the “Notice of Exercise”). Within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period (as defined in Section 2(d)(i) herein) following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the Warrant Shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date on which the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1) Trading Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

“Trading Day” means a day on which the principal Trading Market located in the United States is open for trading.

 

“Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange, or any successors to any of the foregoing.

 

Without limiting the rights of a Holder to receive Warrant Shares upon a “cashless exercise” and without limiting the liquidated damages provision in Section 2(d)(i) and the buy-in provision in Section 2(d)(iv), in no event will the Company be required to net cash settle a Warrant exercise.

 

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b)    Exercise Price. The exercise price per one Common Stock under this Warrant shall be $_____2, subject to adjustment hereunder (the “Exercise Price”).

 

c)    Cashless Exercise. This Warrant may be exercised, in whole or in part, by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A) =    as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b)(68) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the option of the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise or (z) the Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder’s execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular trading hours” on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular trading hours” on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a) hereof after the close of “regular trading hours” on such Trading Day;

 

(B) =    the Exercise Price of this Warrant, as adjusted hereunder; and

 

(X) =    the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

 

If Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9) of the Securities Act, the Warrant Shares shall take on the characteristics of the Warrants being exercised, and the holding period of the Warrant Shares being issued may be tacked on to the holding period of this Warrant.  The Company agrees not to take any position contrary to this Section 2(c).

 

“Bid Price” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the bid price of the Common Stock for the time in question (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest

 

 

2 Insert exercise price equal to 120% of public offering price.

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preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on the Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

“VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock is then reported on the Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the holders of a majority in interest of the Warrant Shares then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

d)    Mechanics of Exercise.

 

i.    Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted by its transfer agent (the “Transfer Agent”) to the Holder by crediting the account of the Holder’s or its designee’s balance account with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by the Holder or (B) the Warrant Shares are eligible for resale by the Holder without volume or manner-of-sale limitations pursuant to Rule 144 (in the event that the Warrant has been exercised on a cashless basis), and otherwise by physical delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is the earlier of (i) the earlier of (A) two (2) Trading Days after the delivery to the Company of the Notice of Exercise and (B) one (1) Trading Day after delivery of the aggregate Exercise Price to the Company and (ii) the number of Trading Days comprising the Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date, the “Warrant 

 

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Share Delivery Date”). Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than in the case of a cashless exercise) is received within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period following delivery of the Notice of Exercise. If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise. The Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding and exercisable. As used herein, “Standard Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s primary Trading Market with respect to the Common Stock as in effect on the date of delivery of the Notice of Exercise.

 

ii.    Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

 

iii.    Rescission Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

 

iv.    Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares in accordance with the provisions of Section 2(d)(i) above pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company

 

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shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of Warrants with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

 

v.    No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.

 

vi.    Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the Company, including, without limitation, the fees and expenses of legal counsel related to any opinion required by the transfer agent in connection with such issuance, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event that Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto.

 

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The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery of the Warrant Shares.

 

vii.    Closing of Books. The Company will not close its shareholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.

 

e)    Holder’s Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties.  Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company

 

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or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of a Holder, the Company shall within one (1) Trading Day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates or Attribution Parties since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant. “Common Stock Equivalents” means any securities of the Company which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive Common Stock. “Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 405 under the Securities Act. “Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

Section 3.         Certain Adjustments.

 

a)    Share Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a share dividend or otherwise makes a distribution or distributions on Common Stock or any other equity or equity equivalent securities payable in Common Stock (which, for avoidance of doubt, shall not include any Common Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse share split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification of Common Stock any share capital of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares

 

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of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of shareholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re‐classification.

 

b)    Reserved.

 

c)    Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time while this Warrant is outstanding the Company grants, issues or sells any Common Stock Equivalents or rights to purchase shares, warrants, securities or other property pro rata to the record holders of any class of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

d)    Pro Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any dividend (other than cash) or other distribution of its assets (or rights to acquire its assets) to holders of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of shares or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined for the participation in such Distribution (provided, however, to the extent that the Holder's right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any

 

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Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation). To the extent that this Warrant has not been partially or completely exercised at the time of such Distribution, such portion of the Distribution shall be held in abeyance for the benefit of the Holder until the Holder has exercised this Warrant.

 

e)    Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person (other than for the purpose of changing the Company’s name and/or the jurisdiction of incorporation of the Company or a holding company for the Company, (ii) the Company (and all of its subsidiaries, taken as a whole), directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding shares of Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the shares of Common Stock are effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of the Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate

 

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Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction, the Company or any Successor Entity (as defined below) shall, at the Holder’s option, exercisable at any time concurrently with, or within 30 days after, the consummation of the Fundamental Transaction (or, if later, the date of the public announcement of the applicable Fundamental Transaction), purchase this Warrant from the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value (as defined below) of the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental Transaction; provided, however, that if the Fundamental Transaction is not within the Company's control, including not approved by the Company's Board of Directors, Holder shall only be entitled to receive from the Company or any Successor Entity the same type or form of consideration (and in the same proportion), at the Black Scholes Value of the unexercised portion of this Warrant, that is being offered and paid to the holders of Common Stock of the Company in connection with the Fundamental Transaction, whether that consideration be in the form of cash, share or any combination thereof, or whether the holders of the Common Stock are given the choice to receive from among alternative forms of consideration in connection with the Fundamental Transaction; provided, further, that if holders of Common Stock of the Company are not offered or paid any consideration in such Fundamental Transaction, such holders of Common Stock will be deemed to have received common stock of the Successor Entity (which Entity may be the Company following such Fundamental Transaction) in such Fundamental Transaction. “Black Scholes Value” means the value of this Warrant based on the Black and Scholes Option Pricing Model obtained from the “OV” function on Bloomberg, L.P. (“Bloomberg”) determined as of the day of consummation of the applicable Fundamental Transaction for pricing purposes and reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date, (B) an expected volatility equal to the 100 day volatility obtained from the HVT function on Bloomberg as of the Trading Day immediately following the public announcement of the applicable Fundamental Transaction, (C) the underlying price per share used in such calculation shall be the greater of (i) the sum of the price per share being offered in cash, if any, plus the value of any non-cash consideration, if any, being offered in such Fundamental Transaction and (ii) the greater of (x) the last VWAP immediately prior to the public announcement of such Fundamental Transaction and (y) the last VWAP immediately prior to the consummation of such Fundamental Transaction and (D) a remaining option time equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date. The payment of the Black Scholes Value will be made by wire transfer of immediately available funds (or by delivery of such other consideration, as applicable) within five (5) Trading Days of the Holder’s election (or, if later, on the effective date of the Fundamental Transaction). The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the

 

11

 

 

Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of share capital of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such share capital (but taking into account the relative value of the Common Stock pursuant to such Fundamental Transaction and the value of such share capital, such number of share capital and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein.

 

f)    Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

g)    Notice to Holder.

 

i.    Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

ii.    Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any share capital of any class or of any rights, (D) the approval of any shareholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs

 

12

 

 

of the Company, then, in each case, the Company shall cause to be delivered by facsimile or email to the Holder at its last facsimile number or email address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided in this Warrant constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

Section 4.         Transfer of Warrant.

 

a)    Transferability. Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d) hereof, this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within two (2) Trading Days of the date on which the Holder delivers an assignment form to the Company assigning this Warrant in full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

 

13

 

 

b)    New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the Issue Date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

c)    Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

 

d)    Transfer Restrictions. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer of this Warrant shall not be either (i) registered pursuant to an effective registration statement under the Securities Act and under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions or current public information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer, that the Holder or transferee of this Warrant, as the case may be, provide to the Company, at the Company’s sole expense, an opinion of counsel, the form and substance of which opinion shall be reasonably satisfactory to the Company to the effect that the transfer of this Warrant does not require registration under the Securities Act.

 

e)    Representation by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities law, except pursuant to sales registered or exempted under the Securities Act.

 

Section 5.         Registration Rights

 

a)    Grant of Right. Unless a registration statement covering the exercise of this Warrant and the sale of the Warrant Shares by the Holder is in effect and available, the Holder shall have the right to include the Warrant Shares as part of any other registration of securities filed by the Company (other than in connection with a transaction contemplated by Rule 145(a) promulgated under the Securities Act, or pursuant to Form S-8 or any equivalent form); provided, however, that if, solely in connection with any primary underwritten public offering for the account of the Company, the managing underwriter(s) thereof shall, in its reasonable discretion, impose a limitation on the number of shares of Common Stock which may be included in the registration statement because, in such underwriter(s)’ judgment, marketing or other factors dictate such limitation is

 

14

 

 

necessary to facilitate public distribution, then the Company shall be obligated to include in such registration statement only such limited portion of the Warrant Shares with respect to which the Holder requested inclusion hereunder as the underwriter shall reasonably permit. Any exclusion of Warrant Shares shall be made pro rata among the holders seeking to include registrable securities in proportion to the number of Warrant Shares sought to be included by such holders; provided, however, that the Company shall not exclude any Warrant Shares unless the Company has first excluded all outstanding securities, the holders of which are not entitled to inclusion of such securities in such registration statement or are not entitled to pro rata inclusion with the Warrant Shares. Notwithstanding the foregoing, the Company shall not be required to register any Warrant Shares pursuant to this Section that are subject of a then effective registration statement.

 

b)    Terms. The Company shall bear all fees and expenses attendant to registering the Warrant Shares pursuant to Section 5(a) hereof, but the holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the holders to represent them in connection with the sale of the Warrant Shares. In the event of such a proposed registration, the Company shall furnish the then holders of outstanding Warrant Shares with not less than fifteen (15) days written notice prior to the proposed date of filing of such registration statement. Such notice to the holders shall continue to be given for each registration statement filed by the Company until such time as all of the Warrant Shares have been sold by the Holder. The holders of the Warrant Shares shall exercise the “piggy-back” rights provided for herein by giving written notice within five (5) days of the receipt of the Company’s notice of its intention to file a registration statement. Except as otherwise provided in this Warrant, there shall be no limit on the number of times the Holder may request registration under this Section 5(b).

 

Section 6.         Miscellaneous.

 

a)    No Rights as Shareholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a shareholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in Section 3.

 

b)    Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any share certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or share certificate, if mutilated, the Company will make and deliver a new Warrant or share certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or share certificate.

 

c)    Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding Business Day.

 

15

 

 

d)    Authorized Shares.

 

The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued shares of Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of issuing the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).

 

Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its articles of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

 

Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

 

e)    Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions of the Underwriting Agreement.

 

16

 

 

f)    Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities laws.

 

g)    Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies, notwithstanding the fact that all rights hereunder terminate on the Termination Date. Without limiting any other provision of this Warrant or the Underwriting Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

h)    Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered to the address for the Holder in the Warrant Register.

 

i)    Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a shareholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

 

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

 

k)    Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.

 

l)    Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

 

m)    Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such

 

17

 

 

provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

 

n)    Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

 

 

********************

 

(Signature Page Follows)

 

 

 

18

 

 

 

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

 

	
			BIOSIG TECHNOLOGIES, INC.

			 

			
	
			By:                                                                           

			     Name:

			     Title:

			

 

 

 

19

 

 

NOTICE OF EXERCISE

 

TO:         BIOSIG TECHNOLOGIES, INC.

 

(1)    The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

 

(2)    Payment shall take the form of (check applicable box):

 

[ ] in lawful money of the United States; or

 

[ ] the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c).

 

(3)    Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

_______________________________

 

 

The Warrant Shares shall be delivered to the following DWAC Account Number:

 

_______________________________

 

_______________________________

 

_______________________________

 

(4)    Accredited Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933, as amended.

 

[SIGNATURE OF HOLDER]

 

Name of Investing Entity: _______________________________________________________________________

Signature of Authorized Signatory of Investing Entity: _________________________________________________

Name of Authorized Signatory: ___________________________________________________________________

Title of Authorized Signatory: ____________________________________________________________________

Date: ________________________________________________________________________________________

 

 

 

 

 

 

EXHIBIT B

 

 

ASSIGNMENT FORM

(To assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)

 

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	
			Name:

				______________________________________
	 	
			(Please Print)

			
	
			Address:

				 
	
			 

			 

			Phone Number:

			 

			Email Address:

				
			(Please Print)

			 

			______________________________________

			 

			______________________________________

			
	
			 

			Dated: _______________ __, ______

				 
	
			 

			Holder’s Signature:  _____________________________________

				 
	
			 

			Holder’s Address:  ______________________________________Exhibit
10.1

 

Exclusive
Channel Partner & Distribution Agreement

 

between

 

BIN
ZAYED PETROLEUM for INVESTMENT LTD

 

and

 

Hard
Rock Solutions, LLC

 

a
subsidiary of

 

Superior
Drilling Products, Inc.

 

dated
as of

 

June
26, 2022

 

**Certain
information has been excluded from the exhibit in accordance with Item 601(b)(10) of Regulation S-K because it is both not material and
would likely cause competitive harm to the registrant if publicly disclosed.

 

    	 

     

    

 

Exclusive
Channel Partner & Distribution Agreement

 

This
Exclusive Channel Partner & Distribution Agreement (the “Agreement”), dated as of June 26, 2022, is entered into
by and between Hard Rock Solution, LLC, a Utah limited liability company (a subsidiary of Superior Drilling Products, Inc.), having an
address at 1583 East 1700 South, Vernal, Utah 84078, USA (“Seller”), and Bin Zayed Petroleum for Investment Limited,
a Seychelles registred company having an address at P.O. Box 11092 -17th Floor Emaar Boulevard Tower, Dubai, UAE (“Distributor”,
and together with Seller, the “Parties”, and each, a “Party”).

 

RECITALS

 

WHEREAS,
Seller is in the business of developing manufacturing, renting and selling certain Tools (as defined below), including the ‘Drill
N Ream’ or ‘DNR’ for use in the upstream oil & gas drilling industry;

 

WHEREAS,
Distributor is in the business of marketing and reselling products that are similar in kind and/or quality to the Tools;

 

WHEREAS,
Distributor wishes to purchase the Tools from Seller and lease or rent the Tools to Customers (as defined below), subject to the terms
and conditions of this Agreement; and

 

WHEREAS,
Seller wishes to sell the Tools to Distributor and appoint Distributor as an exclusive distributor to lease or rent the Tools under the
terms and conditions of this Agreement.

 

NOW,
THEREFORE, in consideration of the mutual covenants, terms, and conditions set out herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

ARTICLE
I

Definitions

 

Capitalized
terms have the meanings set out in this Section, or in the Section in which they first appear in this Agreement.

 

“Action”
means any claim, action, cause of action, demand, lawsuit, arbitration, inquiry, audit, notice of violation, proceeding, litigation,
citation, summons, subpoena, or investigation of any nature, civil, criminal, administrative, regulatory, or other, whether at law, in
equity or otherwise.

 

“Affiliate”
of a Person means any other Person that directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is
under common Control with, this Person.

 

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

 

“Bribery
Laws” has the meaning set out in Section 12.03.

 

“Business
Day” means any day except Saturday, Sunday, or a federal or holiday in the United Arab Emirates.

 

“Claim”
means any Action made or brought against a Person entitled to indemnification under ARTICLE XVIII.

 

“Committed
Tools” has the meaning set out in Section 15.07.

 

“Competitive
Transaction” has the meaning set out in Section 2.03.

 

“Confidential
Information” has the meaning set out in ARTICLE XVI.

 

“Control”
(and with correlative meanings, the terms “Controlled by” and “under common Control with”) means, regarding any
Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of another
Person, whether through the ownership of voting securities, by contract, or otherwise.

 

    	2

     

    

 

“Customer”
means a purchaser that is (a) a Reseller located in the Territory who purchases Tools for further lease or rental to an End User (b)
an End User, or (c) any affiliate of Distributor that does not engage in the use of the Tool for oil and gas drilling purposes.

 

“Delivery
Point” means the street address specified in the applicable Purchase Order.

 

“Disclosing
Party” has the meaning set out in Section 16.01.

 

“Dispute”
has the meaning set out in Section 21.13.

 

“Dispute
Notice” has the meaning set out in Section 21.13.

 

“Distributor”
has the meaning set out in the preamble of this Agreement.

 

“Distributor
Indemnified Party” has the meaning set out in Section 18.02.

 

“Distributor
Indemnifying Party” has the meaning set out in Section 18.01.

 

“Effective
Date” means June 26, 2022.

 

“End
User” means the final paying Person that (a) has leased or rented a Tool from Distributor for (i) its own and its Affiliates’
internal use and not for sublease, resale, remarketing, or distribution or (ii) use in the process of drilling oil and gas wells in the
upstream industry and (b) is an individual or entity, other than any federal, state or local agency, office, or division, located in
the Territory.

 

“Force
Majeure Event” has the meaning set out in Section 21.17.

 

“Forecast”
means, regarding any 3-month period, a good faith forecast of Distributor’s purchasing demands for each calendar month during the
period, by Tools, which approximates, as nearly as possible, based on information available at the time to Distributor, the Purchase
Orders the Distributor will place in these future calendar months.

 

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

 

“Governmental
Order” means any order, writ, judgment, injunction, decree, stipulation, award, or determination entered by or with any Governmental
Authority.

 

“Indemnified
Party” means Seller Indemnified Party and Distributor Indemnified Party, collectively.

 

“Indemnifying
Party” means Seller Indemnifying Party and Distributor Indemnifying Party, collectively.

 

“Initial
Term” has the meaning set out in Section 15.01.

 

“Inspection
Period” has the meaning set out in Section 9.04.

 

    	3

     

    

 

“Intellectual
Property Rights” means all industrial and other intellectual property rights comprising or relating to: (a) Patents; (b) Trademarks;
(c) internet domain names, whether or not Trademarks, registered by any authorized private registrar or Governmental Authority, web addresses,
web pages, website, and URLs; (d) works of authorship, expressions, designs, and design registrations, whether or not copyrightable,
including copyrights and copyrightable works, software, and firmware, application programming interfaces, architecture, files, records,
schematics, data, data files, and databases and other specifications and documentation; (e) Trade Secrets; and (f) all industrial and
other intellectual property rights, and all rights, interests, and protections that are associated with, equivalent or similar to, or
required for the exercise of, any of the foregoing, however arising, in each case whether registered or unregistered and including all
registrations and applications for, and renewals or extensions of, these rights or forms of protection under the Laws of any jurisdiction
throughout in any part of the world.

 

“Law”
means any statute, law, ordinance, regulation, rule, code, constitution, treaty, common law, Governmental Order, or other requirement
or rule of law of any Governmental Authority.

 

“Level
1, Level 2 and Level 3 Service” shall each have the meanings set forth in Section 11.04(a).

 

“Limited
Warranty” has the meaning set out in Section 17.02.

 

“Losses”
has the meaning set out in Section 18.01.

 

“Market
Penetration Expectations” means the jointly established expectations set out in Exhibit A.

 

“Nonconforming
Tools” means any good received by Distributor from Seller under a Purchase Order that: (a) is not a Tool; (b) does not conform
to the technical specifications for the Tools and/or as modified specifically listed in the applicable Purchase Order; or (c) on visual
inspection, Distributor reasonably determines are otherwise defective.

 

“Non-Competitive
Transaction” has the meaning set out in Section 2.04.

 

“Notice”
has the meaning set out in Section 21.04.

 

“Party”
has the meaning set out in the preamble to this Agreement.

 

“Patents”
means all patents (including all reissues, divisionals, provisionals, continuations, and continuations-in-part, re-examinations, renewals,
substitutions, and extensions thereof), patent applications, and other patent rights and any other Governmental Authority-issued indicia
of invention ownership (including inventor’s certificates, petty patents, and patent utility models).

 

“Payment
Failure” has the meaning set out in Section 15.03(a).

 

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

 

“Personnel”
means agents, employees, or subcontractors engaged or appointed by Seller or Distributor.

 

“Price”
has the meaning set out in Section 10.01.

 

“Purchase
Order” means Distributor’s then-current standard form purchase order.

 

“Purchase
Order Transaction Terms” means any one or more of the terms specified by Distributor in a Purchase Order under Section 8.03.
For the avoidance of doubt, the term Purchase Order Transaction Terms does not include any general commercial terms or conditions of
any Purchase Order.

 

“Receiving
Party” has the meaning set out in Section 16.01.

 

“Renewal
Term” has the meaning set out in Section 15.02.

 

“Representatives”
means a Party’s Affiliates, employees, officers, directors, partners, shareholders, agents, attorneys, third-party advisors, successors,
and permitted assigns.

 

“Reseller”
means the Distributor’s sub-agents, sub-lessors other resellers, who have been approved by Seller, who lease or rent Tools to End
Users.

 

    	4

     

    

 

“Seller”
has the meaning set out in the preamble of this Agreement.

 

“Seller
Indemnified Party” has the meaning set out in Section 18.01.

 

“Seller
Indemnifying Party” has the meaning set out in Section 18.02.

 

“Seller’s
Intellectual Property Rights” means all Intellectual Property Rights owned by or licensed to Seller, including without limitation
those Patents and Trademarks owned by Seller on Schedule 2.

 

“Seller’s
Trademarks” means all Trademarks owned by or licensed to Seller and set out in Schedule 2.

 

“Term”
has the meaning set out in Section 15.02.

 

“Territory”
has the meaning set out in Schedule 3.

 

“Tools”
means those tools manufactured by Seller that are identified in Schedule 1. For the purposes of ARTICLE IX, Tools are deemed to
include Nonconforming Tools.

 

“Trademarks”
means all rights in and to US and foreign trademarks, service marks, trade dress, trade names, brand names, logos, trade dress, corporate
names, and domain names and other similar designations of source, sponsorship, association, or origin, together with the goodwill symbolized
by any of the foregoing, in each case whether registered or unregistered and including all registrations and applications for, and renewals
or extensions of, these rights and all similar or equivalent rights or forms of protection in any part of the world.

 

“Trade
Secrets” means all inventions, discoveries, trade secrets, business and technical information and know-how, databases, data
collections, patent disclosures, and other confidential and proprietary information and all rights therein.

 

“US”
means the United States of America.

 

ARTICLE
II

Appointment and Relationship

 

Section
2.01 Exclusive Appointment. Seller hereby appoints Distributor, and Distributor accepts
the appointment, to act as an exclusive distributor for the lease or rental (excluding any lease to own or similarly sales finance arrangements)
of Tools to Customers located in the Territory during the Term solely in accordance with the terms and conditions of this Agreement.
Distributor shall not directly or indirectly market, advertise, promote, lease or rent the Tools to any Person located outside the Territory,
including leasing, renting, selling or distributing the Tools to any Person for ultimate resale to Persons outside the Territory. For
purposes of clarification, Seller shall not, directly or indirectly through any agents, representatives, or distributors, except through
Distributor hereunder, market, advertise, promote, sell, distribute, lease or rent the Tools in the Territory, other than to the Excluded
Accounts. Seller may in its sole discretion lease, rent or sell the Tools to any other Person, including distributors, retailers, and
Customers outside the Territory. By accepting this appointment, Distributor agrees to conform to all quality standards established from
time to time by Seller for its distributors. These quality standards are subject to change by Seller on 30 Business Days’ prior
Notice to Distributor.

 

Section
2.02 No Right to Appoint a Sub-distributor. Subject
to Section 21.10, Distributor shall not, without the prior written consent of Seller, such consent not to be unreasonably withheld or
delayed or the completion of required documentation by Seller:

 

(a)
Appoint any sub-distributor or other person or entity to lease, rent, sell or distribute in any manner the Tools at the wholesale or
retail level; or

 

    	5

     

    

 

(b)
Lease, rent or sell the Tools to any person or entity who Distributor knows or has reason to believe is intending to sub-lease, rent
or market the Tools other than to End Users.

 

Section
2.03 Restriction on Competitive Goods. This Agreement precludes Distributor from entering
into an agreement with any other Person related to the lease, rental, sale or distribution of other goods, products or tools, which contain
technology that is similar to or competitive with the Tools (a “Competitive Transaction”). Distributor agrees not
to enter in a Competitive Transaction for the Term of this Agreement and for 2 years after the expiration or termination of this Agreement.

 

Section
2.04 Right to Sell Other Equipment. This Agreement does not preclude either Party from
entering into an agreement with any other Person related to the lease, rental, sale or distribution of other goods, products, or tools,
so long as the goods, products or tools being distributed do not contain technology that is similar to or competitive with the Tools
(a “Non-Competitive Transaction”)

 

Section
2.05 Product Modifications, Deletions, and Additions. Seller may, without any liability
to Distributor, from time to time (a) revise Schedule 1 to delete obsolete products or to add products that Seller deems appropriate
in its sole discretion for lease, rental, or distribution by Distributor within the Territory, and/or (b) make changes, modifications,
enhancements, or alterations to the Tools, which will then replace the prior Tools for purposes of this Agreement.

 

Section
2.06 Purchase of Existing Inventory. Notwithstanding anything to the contrary herein
and as a material provision of this Agreement, Distributor agrees that, within 12 months from the Effective Date, Distributor shall purchase
all of Seller’s existing inventory of the Tool(s) in the Territory, which is listed on Exhibit B.

 

ARTICLE
III

No Franchise or Business Opportunity Agreement

 

Section
3.01 No Franchise or Business Opportunity Agreement. The
Parties to this Agreement are independent contractors and nothing in this Agreement shall be deemed or constructed as creating a joint
venture, partnership, agency relationship, franchise, or business opportunity between Seller and Distributor. Neither Party, by virtue
of this Agreement, will have any right, power, or authority to act or create an obligation, express or implied, on behalf of the other
Party. Each Party assumes responsibility for the actions of their personnel under this Agreement and will be solely responsible for their
supervision, daily direction, and control, wage rates, withholding income taxes, disability benefits, or the manner and means through
which the work under this Agreement will be accomplished. Except as provided otherwise in this Agreement, Distributor has the sole discretion
to determine Distributor’s methods of operation, Distributor’s accounting practices, Distributor’s personnel practices,
Distributor’s advertising and promotion, Distributor’s customers, and Distributor’s service areas and methods. The
relationship created hereby between the parties is solely that of Seller and Distributor. If any provision of this Agreement is deemed
to create a franchise relationship between the parties, then the Parties shall negotiate in good faith to modify this Agreement so as
to effect the Parties’ original intent as closely as possible in a mutually acceptable manner in order that the transactions contemplated
hereby be consummated as a distribution agreement and not a franchise agreement.

 

    	6

     

    

 

ARTICLE
IV

Terms of Agreement Prevail Over Distributor’s Purchase Order

 

Section
4.01 Terms of Agreement Prevail Over Distributor’s Purchase Order. This Agreement
is expressly limited to the terms of this Agreement and the Purchase Order Transaction Terms contained in the applicable Purchase Order.
The terms of this Agreement prevail over any terms or conditions contained in any other documentation related to the subject matter of
this Agreement and expressly exclude any of Distributor’s general terms and conditions contained in any Purchase Order or other
document issued by Distributor.

 

ARTICLE
V

General Distributor Performance Obligations

 

Section
5.01 Maintaining Facilities and Inventory. Distributor
shall, in good faith and at its own expense:

 

(a)
maintain a place or places of business in the Territory, including adequate office, storage, and warehouse facilities and all other facilities
as required for Distributor to perform its duties under this Agreement; and

 

(b)
purchase and maintain at all times a representative quantity of each Tool sufficient for and consistent with the Distributor’s
Customers’ needs.

 

Section
5.02 Marketing, and Renting, or Leasing Tools. Subject
to Section 5.06, Distributor shall, in good faith and at its own expense:

 

(a)
market, advertise, promote, lease and rent the Tools to Customers located in the Territory consistent with good business practice, in
each case using its best efforts to maximize the sales volume of the Tools;

 

(b)
establish and maintain a sales and marketing organization sufficient to develop to the satisfaction of Seller the market potential for
the lease and rental of the Tools, independent sales representatives, and a distribution organization and facilities sufficient to make
the Tools available by Distributor to each Customer immediately on receipt of order;

 

(c)
only lease or rent or offer to lease or rent the Tools that Distributor currently has in inventory or that have been ordered from Seller
and which order has been accepted by Seller as available for delivery to Distributor unless Distributor has received prior written authorization
from Seller;

 

(d)
develop and execute a marketing plan sufficient to fulfill its obligations under this Agreement;

 

(e)
have sufficient knowledge of the industry and products competitive with each Tool (including specifications, features, and benefits)
to be able to explain in detail to the Customers:

 

(i)
the differences between the Tool and any competing products and technology; and

 

(ii)
information on standard protocols and features of each Tool;

 

(f)
observe all reasonable directions and instructions given to it by Seller concerning the marketing, advertisement, and promotion of the
Tools to the extent that these marketing materials, advertisements, or promotions refer to the Tools or otherwise use Seller’s
Trademarks;

 

    	7

     

    

 

(g)
in all contact between Distributor and any Customer, Distributor must identify to the Customer Distributor’s full legal name, trade
name, or both;

 

(h)
market, advertise, promote, lease, and rent Tools and conduct business in a manner that always reflects favorably on the Tools and the
good name, goodwill, and reputation of Seller; and

 

(i)
promptly Notify Seller of any complaint or adverse claim about any Tool or its use of which Distributor becomes aware.

 

Section
5.03 Reporting and Recordkeeping. Distributor shall,
at its own expense:

 

(a)
submit to Seller complete and accurate reports (at least monthly) reports of inventory, marketing, and rental information (including
revenue, days rented, number of runs, performance data) of the Tools and the name and address of the Customers to whom the Tools are
sold, in a computer-readable format acceptable to Seller; and

 

(b)
maintain books, records, and accounts of all transactions and activities covered by this Agreement and permit full examination thereof
by Seller and its Representatives in accordance with ARTICLE XIV.

 

Section
5.04 Authority to Perform Under this Agreement. Distributor
shall, at its own expense, obtain and maintain required certifications, credentials, licenses, and permits necessary to conduct business
in accordance with this Agreement.

 

Section
5.05 Government Approval. If at any time during the
Term any notification, registration, or approval is required for giving legal effect in any applicable jurisdiction to this Agreement
or the transactions contemplated under this Agreement, Distributor shall:

 

(a)
immediately take whatever steps may be necessary to properly notify, register, or obtain approval;

 

(b)
be responsible for any charges incurred in connection with notifying, registering, or obtaining this approval; and

 

(c)
keep Seller currently informed of its efforts regarding this Section 5.05.

 

Seller
is not obligated to ship any Tools or other materials to Distributor under this Agreement until Distributor has provided Seller with
satisfactory evidence that this approval, notification, or registration is not required or that it has been obtained.

 

Section
5.06 Prohibited Acts. Notwithstanding anything to
the contrary in this Agreement, Distributor, Distributor Personnel, or any Customer approved by Seller to sublease the Tools shall:

 

(a)
engage in any unfair, competitive, misleading, or deceptive practices respecting Seller, Seller’s Trademarks or the Tools;

 

(b)
market or distribute the Tools other than in the form as delivered by Seller to Distributor under this Agreement;

 

(c)
lease, rent or sell or offer to lease, rent or sell any of the Tools outside the Territory;

 

(d)
ship or otherwise deliver Tools to any facility in a location that has not been approved by Seller or is outside the Territory; and

 

    	8

     

    

 

(e)
during the Term cease to function actively as a full-service distributor of Seller’s Tools.

 

ARTICLE
VI

Seller Performance Obligations

 

Section
6.01 Seller Performance Obligations. During the Term
Seller shall:

 

(a)
provide any information and support in the Territory that may be reasonably requested by Distributor regarding the marketing, advertising,
promotion, and lease or rental of Tools sold to Distributor under this Agreement and Seller will promptly provide to Distributor free
of charge all subsequent information, data, and operational knowledge for the Tools as it becomes available;

 

(b)
allow Distributor to participate, at its own expense, in any marketing, advertising, promotion, and sales programs;

 

(c)
approve or reject, in its reasonable discretion, any promotional information or material submitted by Distributor for Seller’s
approval within 20 Business Days of receipt; and

 

(d)
provide promotional information and material free of charge for use by Distributor in accordance with this Agreement.

 

Section
6.02 Support and Training.

 

For
the term of the Agreement, Seller shall provide Distributor with reasonable technical support for the Tools at no charge. If Distributor
requests that Seller’s technical support Personnel travel, Distributor shall pay Seller a day rate plus reasonable out of pocket
expenses incurred by Seller for such technical support Personnel services and travel.

 

ARTICLE
VII

NOT USED

 

ARTICLE
VIII

Order Procedure

 

Section
8.01 Non-Binding Forecasts of Distributor Demand. No
later than 30 Business Days prior to the first day of each calendar quarter, Distributor shall deliver to Seller a Forecast for the period
beginning with the first day of the calendar quarter. The Forecasts are for information purposes only and do not create any binding obligations
on behalf of either Party.

 

Section
8.02 Purchase Order. Distributor shall issue all
Purchase Orders to Seller in written form via email and cause all Purchase Orders to contain the Purchase Order Transaction Terms. By
placing a Purchase Order, Distributor makes an offer to purchase Tools under the terms and conditions of this Agreement, including the
Purchase Order Transaction Terms, and on no other terms. Except regarding the Purchase Order Transaction Terms, any variations made to
the terms and conditions of this Agreement by Distributor in any Purchase Order are void and have no effect.

 

    	9

     

    

 

Section
8.03 Purchase Order Transaction Terms.

 

Distributor
shall specify the following information (collectively, the “Purchase Order Transaction Terms”) in each Purchase Order:

 

(a)
a list of Tools to be purchased (with product size/type specified);

 

(b)
quantities ordered;

 

(c)
requested delivery date; and

 

 (d) Delivery Point.

 

Section
8.04 Seller’s Right to Accept or Reject Purchase Orders. Seller
may refuse anyPurchase Order, but in the event of any Purchase Order refusal by Seller, Seller shall always provide Distributor with
a reasonable explanation acceptable for such rejection. Seller may accept any Purchase Order by confirming the order (whether by written
confirmation, invoice, or otherwise) or by delivering the Tools, whichever occurs first. No Purchase Order is binding on Seller unless
accepted by Seller as provided in this Agreement.

 

Section
8.05 Cancellation of Purchase Orders.

 

(a)
Seller may, in its sole discretion, without liability or penalty, cancel any Purchase Order placed by Distributor and accepted by Seller,
in whole or in part:

 

(i)
if Seller discontinues its sale of Tools or reduces or allocates its inventory of Tools; or

 

(ii)
if Seller determines that Distributor is in violation of its payment obligations under or is in breach of this Agreement.

 

(b)
Without the express written consent of Seller, Distributor has no right to cancel or amend any Purchase Order submitted by it.

 

Section
8.06 Market Penetration Expectations. Distributor
shall meet the Market Penetration Expectations for each year of this Agreement (which are set forth in Exhibit A). The Parties
shall jointly collaborate to set the Market Penetration Expectations for the following calendar year by October of each year.

 

ARTICLE
IX

Shipment and Delivery

 

Section
9.01 Shipment. Unless expressly agreed to by the
Parties in writing, Distributor shall select the method of shipment of and the carrier for the Tools. Seller may, in its sole discretion,
without liability or penalty, make partial shipments of Tools to Distributor. Each shipment constitutes a separate sale, and Distributor
shall pay for the units shipped, whether the shipment is in whole or partial fulfillment of a Purchase Order.

 

Section
9.02 Delivery. Unless expressly agreed to by the
Parties, Seller shall deliver the Tools to the Delivery Point, using Seller’s or manufacturer’s standard methods for packaging
and shipping the Tools. All Prices are EXW (Incoterms 2022). Unless otherwise agreed in a Purchase Order, all Tools shall be delivered
pursuant to EXW (Incoterms 2022); provided that Seller shall always prepare the Tools for export and assist with loading onto Distributor’s
carrier of choice.

 

Section
9.03 Late Delivery. Any time quoted for delivery
is an estimate only; provided, however, that Seller shall use commercially reasonable efforts to deliver all Tools on or before the requested
delivery date. Seller is not liable for or in respect of any loss or damage arising from any delay in filling any order, failure to deliver,
or delay in delivery. No delay in the shipment or delivery of any Tool relieves Distributor of its obligations under this Agreement,
including accepting delivery of any remaining installment or other orders of Tools.

 

    	10

     

    

 

Section
9.04 Inspection. Distributor shall inspect Tools received under this Agreement within
5 Business Days of receipt (the “Inspection Period”) of the Tools and either accept or, if any Tools are Nonconforming
Tools, reject these Tools. Distributor will be deemed to have accepted the Tools unless it Notifies Seller in writing of any Nonconforming
Tools during the Inspection Period and furnishes written evidence or other documentation as required by Seller. If Distributor timely
Notifies Seller of any Nonconforming Tools, Seller shall determine, in its sole discretion, whether the Tools are Nonconforming Tools.
If Seller determines that the Tools are Nonconforming Tools, it shall either, in its sole discretion replace or repair the Nonconforming
Tools.

 

Distributor
shall ship/transport all Nonconforming Tools to Seller’s facility located in Dubai, United Arab Emirates or any other facility
designated by Seller. If Seller exercises its option to replace Nonconforming Tools, Seller shall, after receiving Distributor’s
shipment of Nonconforming Tools, ship the replaced Tools to Distributor at/to the Delivery Point. If Seller exercises its option to repair
the Nonconforming Tools, Seller shall repair in accordance with its internal policies and ship the repaired Tools to Distributor at/to
the Delivery Point.

 

Distributor
acknowledges and agrees that the remedies set out Section 9.04 are Distributor’s exclusive remedy for the delivery of Nonconforming
Tools, subject to Distributor’s rights Section 17.02 and Section 17.04 regarding any Nonconforming Tools for which Distributor
has accepted delivery under this Section 9.04.

 

Section
9.05 Limited Right of Return. Except as provided
under Section 9.04, Section 17.02 and Section 17.04, all sales of Tools to Distributor under this Agreement are made on a one-way basis
and Distributor has no right to return Tools purchased under this Agreement.

 

Section
9.06 Title and Risk of Loss.

 

(a)
Title to Tools shipped under any Purchase Order passes to Distributor on receipt of the Tools by Distributor or payment in full by Distributor
for such Tools, whichever is later.

 

(b)
Risk of loss to Tools shipped under any Purchase Order passes to Distributor on in accordance with EXW (Incoterms 2022).

 

ARTICLE
X

Price and Payment

 

Section
10.01 Tool Purchase Price. Distributor shall purchase the Tools from Seller at the
prices set out in Seller”s distributor price list in effect when the Seller accepts the related Purchase Order, but only if they
differ from those on Exhibit C, which shall be reviewed and updated by Seller not more than annually but always prior to the next
calendar year (“Prices”).

 

Section
10.02 Distributor 55% - Seller 45% Total Revenue Split. Parties
will participate in annual review process to insure that the total revenue generated per DNR tool is staying within the 55/45 revenue
split. Beginning one year from the execution of this agreement parties will review individual tool revenue, along with tool life and
forcasted revenue for each DNR tool. This review process is to monitor that the Distributor recive 55% of the total projected revenue
of each DNR Tool and Seller is to recive 45% of the total projected revenue. Exhibit C shows examples of this Total Revenue Split based
on actuals that seller has demonstrated in the MENA region.

 

Section
10.03 Shipping Charges, Insurance, and Taxes. Distributor
shall pay for shipping charges and insurance costs in accordance with ARTICLE IX. All Prices are exclusive of all sales, use, and excise
taxes, and any other similar taxes, duties, and charges of any kind imposed by any Governmental Authority on any amounts payable by Distributor
under this Agreement. Distributor is responsible for all charges, costs, and taxes; provided, that, Distributor is not responsible for
any taxes imposed on, or regarding Seller”s income, revenues, gross receipts, Personnel or real or personal property, or other
assets.

 

    	11

     

    

 

Section
10.04 Payment Terms. Seller shall issue a periodic
invoice to Distributor for all Tools shipped pursuant to a Purchase Order, whether such Tool is new or refurbished. Distributor shall
pay all invoiced amounts due to Seller within 60 Business Days from the date of the invoice. Distributor shall make all payments in US
Dollars (USD) by check or wire transfer in accordance with the following wire instructions:

 

ABA
Number: TBD

Account
Number: TBD

Bank
Address: TBD

Attn:
Hard Rock Solutions, LLC

 

Section
10.05 Invoice Disputes. Distributor shall Notify
Seller in writing of any dispute with any invoice (along with a reasonably detailed dispute description) within 20 Business Days from
the date of the invoice. Distributor will be deemed to have accepted all invoices for which Seller does not receive timely Notice of
disputes and shall pay all undisputed amounts due under these invoices within the period set out in Section 10.03. The Parties shall
seek to resolve all disputes expeditiously and in good faith in accordance with the dispute resolution provisions set out in Section
21.13. Notwithstanding anything to the contrary, Distributor shall continue performing its obligations under this Agreement during any
dispute, including, without limitation, Distributor’s obligation to pay all due and undisputed invoice amounts in accordance with
the terms and conditions of this Agreement.

 

Section
10.06 Late Payments. Except for invoiced payments
that Distributor has successfully disputed, Distributor shall pay interest on all late payments, calculated daily and compounded monthly
at the lesser of the rate of 12% per month or the highest rate permissible under applicable Law. Distributor shall also reimburse Seller
for all costs reasonably incurred in collecting any late payments, including, without limitation, attorneys’ fees. In addition
to all other remedies available under this Agreement or at Law (which Seller does not waive by the exercise of any rights under this
Agreement), Seller may (a) suspend the delivery of any Tools if Distributor fails to pay any undisputed amounts when due under this Agreement
and (b) terminate this Agreement under the terms of Section 15.03(b).

 

Section
10.07 No Setoff. Distributor shall perform its obligations
under this Agreement without setoff, deduction, recoupment, or withholding of any kind for amounts owed or payable by Seller, whether
relating to Seller’s or Seller’s Affiliates’ breach, bankruptcy, or otherwise and whether under this Agreement, any
Purchase Order, any other agreement between (a) Distributor or any of its Affiliates and (b) Seller or any of its Affiliates, or otherwise.

 

ARTICLE
XI

PRICING and service of the Tools

 

Section
11.01 Credit Risk to Customers. Distributor is responsible
for all credit risks regarding, and for collecting payment for, all amounts invoiced to third parties (including Customers), whether
Distributor has made full payment to Seller for the Tools. The inability of Distributor to collect the purchase price for any product
does not affect Distributor’s obligation to pay Seller for any Tool.

 

    	12

     

    

 

Section
11.02 Pricing to Customers. The range of daily rental, per foot or per well amounts to be charged
by Distributor to a Customer for lease or rental of a Tool shall be determined by the size of the Tool, the conditions of the geographic
market where the Tools are deployed, wear expectations and Customer acceptance. Distributor may change the rental charges to a Customer
from time to time upon advance written notice to Seller. The Parties shall jointly collaborate to set lease and rental prices to all
Customers and/or End Users based on each Party’s knowledge of the market, the Market Penetration Expectations and ongoing market
conditions for the Tools. For the avoidance of doubt, all pricing to Customers for the Tools shall be acceptable to each Party.

 

Section
11.03 Not Used.

 

Section
11.04 Service of the Tools.

 

(a)
After every run of the Tool(s), Seller’s digital dull grading system in coordination with a representative of Seller must be used
by Distributor or its agents to evaluate the Tool(s) for a pass or fail grade to determine re-run, repair, or cut-out.

 

(b)
The Tools shall be serviced as follows:

 

(i)
Distributor will have the right to provide only basic inspection and connection repair (“Level 1 Service”); and

 

(ii)
Seller will provide cutter replacement (“Level 2 Service”) and refurbishing (“Level 3 Service”).

 

(c)
For Level 2 and Level 3 Service by Seller, Distributor shall ship Tools to Seller DAP (Incoterms 2022) Seller’s Dubai, United Arab
Emirates or another facility designated by Seller and Seller shall ship tools back to Distributor’s locations, EXW (Incoterms 2022).

 

(d)
All pricing for the Level 1 Service, Level 2 Service and Level 3 Service is set forth on Exhibit C. Seller reserves the right to update
the service pricing at its sole discretion but not more than 2 times in any calendar year.

 

ARTICLE
XII

Compliance with Laws

 

Section
12.01 General Compliance With Laws Representation and Warranty. Distributor
represents and warrants to Seller that it is in compliance all Laws applicable to this Agreement, the Tools, and the operation of its
business.

 

Section
12.02 General Compliance With Laws Covenant. Distributor shall always comply with all
Laws except to the extent that the failure could not, in the aggregate, reasonably be expected to have a material adverse effect on Distributor’s
business or its ability to comply with its obligations under this Agreement. Without limiting the generality of the foregoing, each party
shall always, at its own expense, obtain and maintain all certifications, credentials, authorizations, licenses, and permits necessary
to conduct that portion of its business relating to the exercise of its rights and the performance of its obligations under this Agreement.

 

Section
12.03 Distributor shall:

 

(a)
Comply with all Laws, local regulations, statutes, regulations, and codes relating to anti-bribery and anti-corruption including but
not limited to the United States Foreign Corrupt Practices Act of 1977 (P. L. 95-213) (the “Bribery Laws”);

 

(b)
Covenant that it will not take any action which would constitute a violation of the Bribery Laws;

 

    	13

     

    

 

(c)
Have and shall maintain in place throughout the term of this Agreement its own policies and procedures to ensure compliance with the
Bribery Laws, and will enforce them where appropriate;

 

(d)
Covenant that it shall immediately report to Seller any request or demand for any undue financial or other advantage of any kind received
by Distributor in connection with the performance of this Agreement;

 

(e)
Represent and warrant that none of its partners, owners, principals, staff members/employees or their child, spouse or other close relative
is presently an official, officer or representative of any government or political party or candidate for political office;

 

(f)
Warrant that it has not to date offered, given or promised any prohibited payment under the Bribery Laws in connection with establishing
or maintaining any business, entering into or securing any necessary approvals or engaging in any other business-related activity;

 

(g)
Distributor agrees to promptly notify Seller in the event circumstances shall change so as to cause any of the representations and warranties
contained herein to become inaccurate;

 

(h)
Distributor shall not appoint any sub-agents or other parties acting on Seller’s behalf without the prior written approval of Seller.

 

(i)
Covenant that it shall immediately notify Seller in writing if there is any change in management or organization of provider or a foreign
public official becomes an officer or employee of Distributor or acquires a direct or indirect interest in Distributor; and

 

(j)
Within 1 month of the date of this Agreement, and annually thereafter, certify to Seller in writing signed by an officer of Distributor,
compliance with this Section 12. Distributor shall provide such supporting evidence of compliance as Seller may reasonably request.

 

Section
12.04 In the event of termination pursuant to this Section 12, Distributor shall have the duty to disgorge and refund to Seller the
full amount of any commissions it has received as a result of sales or activities performed in violation of the terms of this Agreement.

 

Section
12.05 DISTRIBUTOR IS FAMILIAR WITH AND UNDERSTANDS THE BRIBERY LAWS AND EXPRESSLY AGREES TO COMPLY IN ALL RESPECTS WITH THE BRIBERY
LAWS AND SELLER’S POLICIES AND PROCEDURES RELATED TO THE BRIBERY LAWS, WHICH MAY BE IN EFFECT FROM TIME TO TIME.

 

Section
12.06 If Seller learns of or has a good faith belief that Distributor or any subsidiary or other affiliated entity has breached (including
Distributor’s actual breach) of this Section 12 shall be deemed a breach of Section 15.03(d).

 

Section
12.07 Distributor shall comply with all export and import laws of the United States of America. Distributor assumes all responsibility
for shipments of Tools requiring any government import clearance.

 

ARTICLE
XIII

Intellectual Property Rights

 

Section
13.01 Ownership. Subject to the express rights and
licenses granted by Seller in this Agreement, Distributor acknowledges and agrees that:

 

(a)
all Seller’s Intellectual Property Rights are the sole and exclusive property of Seller or its licensors;

 

    	14

     

    

 

(b)
Distributor shall not acquire any ownership interest in any of Seller’s Intellectual Property Rights under this Agreement;

 

(c)
any goodwill derived from the use by Distributor of Seller’s Intellectual Property Rights inures to the benefit of Seller or its
licensors, as the case may be;

 

(d)
if Distributor acquires any Intellectual Property Rights in or relating to any product (including any Tool) purchased under this Agreement
(including any rights in any Trademarks, derivative works, or patent improvements relating thereto), by operation of law, or otherwise,
these rights are deemed and are hereby irrevocably assigned to Seller or its licensors without further action by either Party; and

 

(e)
Distributor shall use Seller’s Intellectual Property Rights solely for the purposes of performing its obligations under this Agreement
and only in accordance with this Agreement and the instructions of Seller.

 

Section
13.02 Seller’s Trademark License Grant. This
Agreement does not grant either Party the right to use the other Party’s or their Affiliates’ Trademarks except as set out
under this Section 13.02. Subject to the terms and conditions of this Agreement, Seller hereby grants to Distributor a non-exclusive,
non-transferable, and non-sublicensable license to use Seller’s Trademarks in the Territory during the Term solely on or in connection
with the promotion, advertising, and lease or rental of the Tools in accordance with the terms and conditions of this Agreement. Distributor
will promptly discontinue the display or use of any Trademark or change how a Trademark is displayed or used regarding the Tools when
requested by Seller. Other than the express licenses granted by this Agreement, Seller grants no right or license to Distributor, by
implication, estoppel, or otherwise, to the Tools or any Intellectual Property Rights of Seller.

 

Section
13.03 License to Translated Marketing Materials and Other Documentation. To
the extent that Distributor translates or causes to be translated, any of Seller’s marketing materials, user manuals, or other
documentation, Distributor hereby irrevocably assigns all copyrights in these translations to Seller, subject to a non-exclusive, non-transferable,
and non-sublicensable license to Distributor, hereby granted by Seller, to use the translations in the Territory during the Term solely
on or in connection with the promotion, advertising, lease or rental, or use of the Tools permitted under this Agreement.

 

Section
13.04 Use of the Names “Superior”, “Hard Rock” and “Drill N Ream” By Distributor.

 

(a)
Distributor is authorized to refer to and advertise itself as an authorized distributor of the Tools in the Territory. Any use of the
names “Superior” and “Drill N Ream” by Distributor in connection with its distribution or lease and rental of
the Tools or advertising of the name names “Superior”, “Hard Rock” and “Drill N Ream” is at the Distributor’s
sole cost and expense.

 

(b)
Distributor shall not use the names “Superior” and “Drill N Ream” or any Trademark:

 

(i)
on, directly, or indirectly in connection with, any place of business or other facility that is not used for, or directly related to,
the marketing of the Tools;

 

(ii)
on, or directly or indirectly in connection with, any place of business or other facility that is located outside the Territory;

 

(iii)
on, or directly or indirectly in connection with, signs, letterheads, advertising, or other promotional materials, or otherwise, in a
manner that would indicate that Distributor has any place of business or other facility located outside the Territory that is used for
or related to the lease or rental of Tools; or

 

    	15

     

    

 

(iv)
in, or directly or indirectly as a part of, the trade, corporate, or firm name or style of Distributor or any division, subsidiary, or
affiliate thereof.

 

Section
13.05 Prohibited Acts. Distributor shall not:

 

(a)
take any action that interferes with any of Seller’s rights in or to Seller’s Intellectual Property Rights, including Seller’s
ownership or exercise thereof;

 

(b)
challenge any right, title, or interest of Seller in or to Seller’s Intellectual Property Rights;

 

(c)
make any claim or take any action adverse to Seller’s ownership of Seller’s Intellectual Property Rights;

 

(d)
register or apply for registrations, anywhere in the world, for Seller’s Trademarks or any other Trademark that is similar to Seller’s
Trademarks or that incorporates Seller’s Trademarks in whole or in confusingly similar part;

 

(e)
use any mark, anywhere, that is confusingly similar to Seller’s Trademarks;

 

(f)
engage in any action that tends to disparage, dilute the value of, or reflect negatively on the products purchased under this Agreement
(including Tools) or any Seller Trademark;

 

(g)
misappropriate any of Seller’s Trademarks for use as a domain name without prior written consent from Seller;

 

(h)
alter, obscure, or remove any of Seller’s Trademarks or trademark or copyright notices or any other proprietary rights notices
placed on the products purchased under this Agreement (including Tools), marketing materials, or other materials that Seller may provide;
and

 

(i)
subject to Section 13.02 and Section 13.04, place Seller’s name or any of Seller’s Trademarks:

 

(i)
on, or directly or indirectly in connection with, any place of business or other facility that is not used for, or directly related to,
the marketing of the Tools;

 

(ii)
on, or directly or indirectly in connection with, any place of business or other facility that is located outside the Territory;

 

(iii)
on, or directly or indirectly in connection with, signs, letterheads, advertising, or other promotional materials, or otherwise, in a
manner that would indicate that Distributor has any place of business or other facility located outside the Territory that is used for
or related to the lease, rental or sale of the Tools; or

 

(iv)
in, or directly or indirectly as part of, the trade, corporate, or firm name or style of Distributor or any division, subsidiary, or
affiliate thereof.

 

Section
13.06 No Continuing Rights. On expiration or earlier
termination of this Agreement:

 

(a)
Distributor’s rights under Section 13.02 and Section 13.04 cease immediately; and

 

(b)
Distributor shall immediately cease all display, advertising, promotion, and use of all of Seller’s Trademarks and shall not thereafter
use, advertise, promote, or display any trademark, trade name, or product designation or any part thereof that is similar to or confusing
with Seller’s Trademarks or with any trademark, trade name, or product designation associated with Seller or any Tool.

 

    	16

     

    

 

ARTICLE
XIV

Audit and Inspection Rights

 

Section
14.01 Audit Rights. On reasonable request, during
the Term and within 1 year after the expiration or earlier termination of this Agreement, Seller may audit Distributor’s files
relating to its sales, marketing, and inventory of Tools regarding transactions that took place in the immediately preceding 24 months.
Seller may conduct any audit under this Section 14.01 at any time during regular business hours and no more frequently than semi-annually.

 

Section
14.02 Inspection Rights. During the Term Distributor shall, on reasonable request,
make available for physical inspection by Seller at any time during regular business hours all Tools in Distributor’s inventory.

 

ARTICLE
XV

Term; Termination

 

Section
15.01 Initial Term. The term of this Agreement commences
on the Effective Date and continues for a period of 3 years, unless and until earlier terminated as provided under this Agreement or
applicable Law (the “Initial Term”).

 

Section
15.02 Renewal Term. On expiration of the Initial
Term, Distributor shall have the exclusive option to have this Agreement automatically renew for additional successive periods of at
least 6-month terms unless and until either Party provides Notice of nonrenewal at least 3 calendar months before the end of the then-current
term, or unless and until earlier terminated as provided under this Agreement or applicable Law (each a “Renewal Term”
and together with the Initial Term, the “Term”). If the Term is renewed for any Renewal Term(s) pursuant to this Section,
the terms and conditions of this Agreement during each such Renewal Term are the same as the terms in effect immediately before such
renewal, subject to any change in Prices payable for the Tools and payment terms during the applicable Renewal Term as set out in ARTICLE
X or changes to or in the availability of the Tools as set out in Section 7.02. If either Party provides timely Notice of its intent
not to renew this Agreement, then, subject to Section 15.01, unless earlier terminated in accordance with its terms, this Agreement terminates
on the expiration of the then-current Term.

 

Section
15.03 Seller’s Right to Terminate. Seller may
terminate this Agreement by providing Notice to Distributor:

 

(a)
if Distributor fails to pay any amount when due under this Agreement (“Payment Failure”) and the failure continues
for 45 days after Distributor’s receipt of Notice of nonpayment;

 

(b)
if within any 12-month period, 3 or more Payment Failures occur;

 

(c)
if Distributor breaches any provisions of Section 12;

 

(d)
if Distributor breaches any provision of this Agreement (other than a Payment Failure), and either the breach cannot be cured or, if
the breach can be cured, it is not cured by Distributor within 20 Business Days after Distributor’s receipt of Notice of such breach;

 

(e)
under and in accordance with Section 3.01, Section 8.06 and Section 10.04;

 

(f)
if Distributor becomes insolvent or files, or has filed against it, a petition for voluntary or involuntary bankruptcy or under any other
insolvency Law, makes or seeks to make a general assignment for the benefit of its creditors, or applies for, or consents to, the appointment
of a trustee, receiver, or custodian for a substantial part of its property, or is generally unable to pay its debts as they become due;

 

    	17

     

    

 

(g)
if Distributor fails to observe or perform any term, covenant, or condition of Distributor under any agreement with Seller, other than
this Agreement, and the default continues beyond any grace period set out in the other agreement for the remedying of the default; or

 

(h)
if Distributor undergoes a change of Control, in any case without Seller’s prior written consent.

 

Any
termination under this Section 15.03 is effective on Distributor’s receipt of Seller’s Notice of termination or any later
date set out in the Notice.

 

Section
15.04 Distributor’s Right to Terminate. Distributor
may terminate this Agreement by providing Notice to Seller:

 

(a)
if Seller breaches any material provision of this Agreement and either the breach cannot be cured or, if the breach can be cured, it
is not cured (or cure is significantly underway) by Seller within 20 Business Days after Seller’s receipt of Notice of such breach;

 

(b)
if Seller becomes insolvent or files, or has filed against it, a petition for voluntary or involuntary bankruptcy or under any other
insolvency Law, makes or seeks to make a general assignment for the benefit of its creditors or applies for, or consents to, the appointment
of a trustee, receiver, or custodian for a substantial part of its property, or is generally unable to pay its debts as they become due;
or

 

(c)
in the event of a Force Majeure Event affecting Seller’s performance under this Agreement for more than 90 consecutive Business
Days.

 

Any
termination under this 15.04 is effective on Seller’s receipt of Distributor’s Notice of termination or any later date set
out in the Notice.

 

Section
15.05 Effect of Expiration or Termination.

 

(a)
The Term’s expiration or earlier termination does not affect any rights or obligations that:

 

(i)
are to survive the expiration or earlier termination of this Agreement under Section 21.03; and

 

(ii)
were incurred by the Parties before the expiration or earlier termination; provided that all indebtedness of Distributor to Seller of
any kind is immediately due and payable on the effective date of the Term’s expiration or earlier termination, without further
notice to Distributor.

 

(b)
Unless otherwise agreed by the Parties, any Notice of termination under this Agreement automatically operates as a cancellation of any
deliveries of Tools to Distributor that are scheduled to be made after the effective date of termination, whether or not any orders for
the Tools had been accepted by Seller. Regarding any Tools that are still in transit on termination of this Agreement, Seller may require,
in its sole and absolute discretion, that all sales and deliveries of the Tools be made on either a cash-only or certified check basis.

 

    	18

     

    

 

(c)
Subject to Section 15.06, on the expiration or earlier termination of this Agreement, Distributor shall promptly:

 

(i)
cease to represent itself as Seller’s authorized distributor regarding the Tools, and shall otherwise desist from all conduct or
representations that might lead the public to believe that Distributor is authorized by Seller to lease, rent, or sell the Tools;

 

(ii)
return to Seller or destroy all documents and tangible materials (and any copies) containing, reflecting, incorporating, or based on
Seller’s Confidential Information;

 

(iii)
permanently erase all of Seller’s Confidential Information from its computer systems; and

 

(iv)
certify in writing to Seller that it has complied with the requirements of this Section 15.05.

 

(d)
Subject to Section 15.05(a), the Party terminating this Agreement, or in the case of the expiration of this Agreement, each Party, shall
not be liable to the other Party for any damage of any kind (whether direct or indirect) incurred by the other Party by reason of the
expiration or earlier termination of this Agreement.

 

Section
15.06 Not Used.

 

Section
15.07 Seller’s Buy-Back Right. Within 30 Days
following the Term’s expiration or earlier termination, Distributor shall Notify Seller in writing of the description and quantity
of all Tools in Distributor’s remaining inventory. In the Notice, in addition to Distributor’s full inventory list, Distributor
shall separately identify which of those Tools Distributor is then contractually obligated to lease or rent to one or more Customers
(“Committed Tools”). On or before the 45th Business Day after Seller receives the Notice and Distributor’s
inventory list; Seller shall evaluate and inspect Distributor’s inventory and fleet of Tools to determine whether Seller desires
to purchase any Tools owned by Distributor. Thereafter, Seller may, in its sole discretion, offer to purchase all or a portion of any
remaining inventory (other than Committed Tools) free of all liens, claims, or encumbrances, at a price equal to the lesser of Distributor’s
cost therefor, Seller’s then-prevailing price for distributors or the fair market value of each individual Tool (where fair
market value shall be reasonably determined by an oilfield equipment appraiser of Seller’s sole designation). Distributor must
accept Seller’s offer and promptly deliver, at Distributor’s expense and risk of loss, the ordered Tools to Seller’s
designated carrier for delivery to Seller. Seller shall pay the repurchase price to Distributor either by:

 

(a)
the issuance of a credit against any indebtedness of Distributor to Seller; or

 

(b)
if the repurchase price exceeds the indebtedness, by payment of the excess to Distributor within 30 Business Days after delivery to Seller.

 

ARTICLE
XVI

Confidentiality

 

Section
16.01 Protection of Confidential Information. From
time to time during the Term, either Party (as “Disclosing Party”) may disclose or make available to the other Party
(as “Receiving Party”) information about its business affairs, goods, and services, forecasts, confidential information,
and materials comprising or relating to Intellectual Property Rights, trade secrets, third-party confidential information, and other
sensitive or proprietary information; such information, as well as the terms of this Agreement, whether orally or in written, electronic
or other form or media, and whether or not marked, designated, or otherwise identified as “confidential”, constitutes “Confidential
Information” hereunder. Confidential Information excludes information that at the time of disclosure:

 

(a)
is or becomes generally available to and known by the public other than because of, directly or indirectly, any breach of this ARTICLE
XVI by Receiving Party or any of its Representatives;

 

    	19

     

    

 

(b)
is or becomes available to Receiving Party on a non-confidential basis from a third-party source, provided that such third party is not
and was not prohibited from disclosing such Confidential Information;

 

(c)
was known by or in the possession of Receiving Party or its Representatives before being disclosed by or on behalf of Disclosing Party;

 

(d)
was or is independently developed by Receiving Party without reference to or use of, in whole or in part, any of Disclosing Party’s
Confidential Information; or

 

(e)
must be disclosed under applicable Law.

 

Receiving
Party shall, for 3 years from receipt of any such Confidential Information:

 

(i)
protect and safeguard the confidentiality of Disclosing Party’s Confidential Information with at least the same degree of care
as Receiving Party would protect its own Confidential Information, but in no event with less than a commercially reasonable degree of
care;

 

(ii)
not use Disclosing Party’s Confidential Information, or permit it to be accessed or used, for any purpose other than to exercise
its rights or perform its obligations under this Agreement; and

 

(iii)
not disclose any such Confidential Information to any Person, except to Receiving Party’s Representatives who need to know the
Confidential Information to assist Receiving Party, or act on its behalf, to exercise its rights or perform its obligations under this
Agreement.

 

Receiving
Party shall be responsible for any breach of this ARTICLE XVI caused by any of its Representatives. The provisions of this Article XVI
shall survive termination or expiration of this Agreement for any reason for a period of 2 years after such termination or expiration.
On the expiration or earlier termination of this Agreement, at Disclosing Party’s written request, Receiving Party and its Representatives
shall, under Section 15.05, promptly return or destroy all Confidential Information including copies that it has received under this
Agreement.

 

In
the event of any conflict between the terms and provisions of this Article XVI and those of any other provision in this Agreement, the
terms and provisions of this Article XVI will prevail.

 

ARTICLE
XVII

Representations and Warranties

 

Section
17.01 Distributor’s Representations and Warranties. Distributor
represents and warrants to Seller that:

 

(a)
it is a limited entity formed and duly organized, validly existing, and in good standing in the jurisdiction of its organization;

 

(b)
it is duly qualified to do business and is in good standing in every jurisdiction in which such qualification is required for purposes
of this Agreement;

 

(c)
it has the full right, power and authority to enter into this Agreement, to grant the rights and licenses granted under this Agreement,
and to perform its obligations under this Agreement;

 

    	20

     

    

 

(d)
the execution of this Agreement by its Representative whose signature is set out at the end hereof has been duly authorized by all necessary
action of Distributor; and

 

(e)
when executed and delivered by each of Seller and Distributor, this Agreement will constitute the legal, valid, and binding obligation
of Distributor, enforceable against Distributor in accordance with its terms.

 

Section
17.02 Limited Product Warranty. Subject to the provisions
of Section 17.03, Section 17.04, and Section 17.05, Seller makes certain limited warranties regarding the Tools (the “Limited
Warranties”) solely to Distributor:

 

(a)
New Tools. In the case of the purchase of new Tools, and solely for the benefit of Distributor, Seller warrants, for a period
of 12 months from delivery or the date of first run/use of the Tool, whichever is earlier, that new Tools shall conform to the material
and technical specifications set forth in any Purchase Order. If the new Tools fail to conform with such specifications upon inspection
by Seller, Seller will, at its option and as Buyer’s sole remedy, either repair or replace such defective Tools with the type originally
and return in accordance with the provisions of Section 9.04.

 

(b)
Refurbished/Overhauled Tools. Seller warrants that for a period of 3 months from the date of delivery by Seller or the date of
first run/use of the Tool, whichever is earlier, that overhauled Tools will be free from defects in workmanship. If the overhauled Tools
fail to conform with such warranty upon inspection by Seller, Seller will, at its option and as Buyer’s sole remedy, either repair
or replace such defective Tools with the type originally furnished in accordance with the provisions of Section 9.04. This warranty expressly
assumes that parts normally considered consumables (including, but not limited to rubber goods, seals (rubber, polymer and/or metallic)
and/or bearings, are replaced during overhaul. If Distributor requests that such parts not be replaced, Seller hereby disclaims any warranty
for said overhauled Tools.

 

(c)
Service/Repair of Tools. Seller warrants that any repair services to be provided pursuant to this Agreement shall conform to the
material aspects of the specifications set forth in the Agreement. Seller shall re-perform that part of the non-conforming Services,
provided Seller is notified by Distributor prior to any run/use of the Tool.

 

No
warranty is extended to Distributor under this Agreement. Distributor shall not provide any warranty regarding any Tool other than the
Seller warranty described in this Section 17.02.

 

Section
17.03 Warranty Limitations. Limited Warranties do
not apply where the Tool:

 

(a)
has been subjected to abuse, misuse, neglect, negligence, accident, improper testing, improper installation, improper storage, improper
handling, abnormal physical stress, abnormal environmental conditions, or use contrary to any instructions issued by Seller;

 

(b)
has been reconstructed, repaired, or altered by Persons other than Seller or its authorized Representative; or

 

(c)
has been used with any third-party product, hardware, or product that has not been previously approved in writing by Seller.

 

    	21

     

    

 

Section
17.04 Extent of Liability. During any effective warranty
period, regarding any Defective Tools:

 

(a)
notwithstanding anything in this Agreement to the contrary, Seller’s liability under any Limited Warranty is discharged, in Seller’s
sole discretion and at its expense, by repairing or replacing the Defective Tools; or

 

(b)
Distributor or Customer is responsible for all costs and risk of loss associated with the delivery of Defective Tools to Seller or Seller’s
agent designated for this purpose located at Dubai, United Arab Emirates or any other facility designated by Seller (subject to change
on receipt of Notice from Seller) for warranty repair or replacement;

 

All
claims for breach of a Limited Warranty must be received by Seller no later than 20 Business Days after the expiration of the limited
warranty period of the Tool.

 

Distributor
has no right to return for repair, replacement, credit, or refund any Tool except as set out in this Section 17.04. Distributor shall
not reconstruct, repair, alter, or replace any Tool, in whole or in part, either itself or by or through any third party.

 

SECTIONS
17.03 AND 17.04 SETS FORTH DISTRIBUTOR’S SOLE REMEDY AND SELLER’S ENTIRE LIABILITY FOR ANY BREACH OF ANY WARRANTY RELATING
TO THE TOOLS.

 

Except
as explicitly authorized in this Agreement or a separate written agreement with Seller, Distributor shall not service, repair, modify,
alter, replace, reverse engineer, or otherwise change the Tools it leases or rents to Customers.

 

Section
17.05 Warranties Disclaimer; Non-Reliance. EXCEPT
FOR THE LIMITED EXPRESS WARRANTIES DESCRIBED IN SECTION 17.02, (A) NEITHER SELLER NOR ANY PERSON ON SELLER’S BEHALF HAS MADE OR
MAKES ANY EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY WHATSOEVER, INCLUDING ANY WARRANTIES OF: (i) MERCHANTABILITY; (ii) FITNESS FOR
A PARTICULAR PURPOSE; OR (iii) PERFORMANCE OF TOOLS TO STANDARDS SPECIFIC TO THE COUNTRY OF IMPORT, WHETHER ARISING BY LAW, COURSE OF
DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE OR OTHERWISE, ALL OF WHICH ARE EXPRESSLY DISCLAIMED, AND (B) DISTRIBUTOR ACKNOWLEDGES
THAT IT HAS NOT RELIED ON ANY REPRESENTATION OR WARRANTY MADE BY SELLER, OR ANY OTHER PERSON ON SELLER’S BEHALF, EXCEPT AS SPECIFICALLY
DESCRIBED IN SECTION 17.02 OF THIS AGREEMENT.

 

ARTICLE
XVIII

Indemnification

 

Section
18.01 Distributor General Indemnification. Subject
to the terms and conditions of this Agreement, including those set out in Section 18.03, Distributor (as “Distributor Indemnifying
Party”) shall indemnify, defend, and hold harmless Seller and its parent, officers, directors, partners, members, shareholders,
employees, agents, Affiliates, successors, and permitted assigns (collectively, “Seller Indemnified Party”) against
any and all losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, fines,
costs, or expenses of whatever kind, including attorneys’ fees, fees, and the costs of enforcing any right to indemnification under
this Agreement and the cost of pursuing any insurance providers, incurred by a Seller Indemnified Party or awarded against Seller Indemnified
Party (collectively, “Losses”), arising out of or relating to any Claim of a third party:

 

(a)
relating to a breach or non-fulfillment of any representation, warranty, or covenant under this Agreement by Distributor Indemnifying
Party or Distributor Indemnifying Party’s Personnel;

 

    	22

     

    

 

(b)
alleging or relating to any negligent or more culpable act or omission of Distributor Indemnifying Party or its Personnel (including
any recklessness or willful misconduct) in connection with the performance of its obligations under this Agreement or the performance
of any service or technician job related to the Tools;

 

(c)
alleging or relating to any bodily injury, death of any Person (except for any Seller Indemnifying Party Personnel) or damage to real
or tangible personal property caused by the acts or omissions of Distributor Indemnifying Party or its Personnel;

 

(d)
relating to a purchase of a Tool by any person or entity purchasing directly or indirectly through Distributor Indemnifying Party and
not directly relating to a claim of Limited Warranty breach;

 

(e)
relating to any failure by Distributor Indemnifying Party or its Personnel to comply with any applicable Laws; or

 

(f)
alleging that the Distributor Indemnifying Party breached its agreement with a third party as a result of or in connection with entering
into, performing under, or terminating this Agreement.

 

Section
18.02 Seller General Indemnification. Subject to
the terms and conditions set out in Section 18.03, Seller (as “Seller Indemnifying Party”) shall indemnify, hold harmless,
and defend Distributor and its officers, directors, employees, agents, Affiliates, successors, and permitted assigns (collectively, “Distributor
Indemnified Party”) against all Losses incurred by Distributor Indemnified Party, arising out of or resulting from any Claim
of a third party alleging or relating to:

 

(a)
a breach or non-fulfillment of any material representation, warranty, or covenant under this Agreement by Seller Indemnifying Party or
Seller Indemnifying Party’s Personnel;

 

(b)
any grossly negligent or more culpable act or omission of Seller Indemnifying Party or its Personnel (including any recklessness or willful
misconduct) in connection with the performance of its obligations under this Agreement; or

 

(c)
any bodily injury, death of any Seller Indemnifying Party Personnel, or damage to real or tangible personal property of Distributor Indemnified
Party caused by the willful or grossly negligent acts or omissions of Seller Indemnifying Party or its Personnel.

 

Notwithstanding
anything to the contrary in this Agreement, this Section 18.02 does not apply to any claim (whether direct or indirect) covered under
Section 18.04 or any claim (whether direct or indirect) for which a sole or exclusive remedy is provided for under another section of
this Agreement, including Section 9.04 and Section 17.04.

 

Section
18.03 Exceptions and Limitations on General Indemnification. Notwithstanding
anything to the contrary in this Agreement, an Indemnifying Party is not obligated to indemnify or defend an Indemnified Party against
any claim (whether direct or indirect) if the claim or corresponding Losses arise out of or result from the Indemnified Party’s
or its Personnel’s:

 

(a)
gross negligence or more culpable act or omission (including recklessness or willful misconduct); or

 

(b)
bad faith failure to materially comply with any of its obligations set out in this Agreement.

 

    	23

     

    

 

Section
18.04 Sole Remedy. ARTICLE XVIII SETS FORTH THE ENTIRE
LIABILITY AND OBLIGATION OF EACH INDEMNIFYING PARTY AND THE SOLE AND EXCLUSIVE REMEDY FOR EACH INDEMNIFIED PARTY FOR ANY LOSSES COVERED
BY ARTICLE XVIII.

 

ARTICLE
XIX

Limitation of Liability

 

Section
19.01 No Liability for Consequential or Indirect Damages. IN
NO EVENT IS EITHER PARTY OR THEIR REPRESENTATIVES LIABLE FOR CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, PUNITIVE OR ENHANCED
DAMAGES, LOST PROFITS OR REVENUES, OR DIMINUTION IN VALUE, ARISING OUT OF OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF:
(A) WHETHER THE DAMAGES WERE FORESEEABLE; (B) WHETHER OR NOT THE BREACHING PARTY WAS ADVISED OF THE POSSIBILITY OF THE DAMAGES AND (C)
THE LEGAL OR EQUITABLE THEORY (CONTRACT, TORT OR OTHERWISE) ON WHICH THE CLAIM IS BASED, AND NOTWITHSTANDING THE FAILURE OF ANY AGREED
OR OTHER REMEDY OF ITS ESSENTIAL PURPOSE.

 

Section
19.02 Maximum Liability for Damages. EXCEPT FOR LIABILITY
FOR INDEMNIFICATION, LIABILITY FOR BREACH OF CONFIDENTIALITY, OR LIABILITY FOR INFRINGEMENT OR MISAPPROPRIATION OF INTELLECTUAL PROPERTY
RIGHTS, IN NO EVENT SHALL SELLER’S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT, WHETHER ARISING OUT OF OR RELATED
TO BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, EXCEED 50% THE TOTAL OF THE AMOUNTS PAID TO SELLER UNDER THIS AGREEMENT
IN THE 1 YEAR PERIOD PRECEDING THE EVENT GIVING RISE TO THE CLAIM OR $1,000,000 USD, WHICHEVER IS LESS. THE FOREGOING LIMITATIONS APPLY
EVEN IF THE DISTRIBUTOR’S REMEDIES UNDER THIS AGREEMENT FAIL OF THEIR ESSENTIAL PURPOSE.

 

ARTICLE
XX

Insurance

 

Section
20.01 Mutual Insurance Obligations. During the Term and for a period of 12 months thereafter,
each Party shall, at its own expense, maintain and carry in full force and effect the following insurance policies with financially sound
insurers:

 

(a)
Commercial/comprehensive general liability insurance including contractual, products and completed operations insurance, covering all
operations and work hereunder of not less than $1,000,000 USD for bodily injury and property damage. Such insurance shall specifically
refer to the Agreement and shall specifically cover on a primary basis the liability assumed by Distributor hereunder;

 

(b)
Automobile liability insurance of not less than $1,000,000 USD including all owned, hired and non-owned vehicles used in connection with
the operations and work performed, only applicable to Distributor if Distributor plans to include the use of a motor vehicle.

 

(c)
Umbrella/excess liability no less than $5,000,000 USD in excess of the above listed insurance.

 

    	24

     

    

 

(d)
On a Party’s request, the other Party shall provide
the requesting Party with a certificate of insurance from the insured Party’s insurer evidencing the insurance coverage specified
in this Section. The certificate of insurance shall name the other Party as an additional insured. Each Party shall provide the other
Party with 30 Business Days’ advance Notice in the event of a cancellation in its insurance policy. Except where prohibited by
Law, Distributor shall require its insurer to waive all rights of subrogation against Seller and its insurers.

 

ARTICLE
XXI

Miscellaneous

 

Section
21.01 Further Assurances. On Seller’s request,
Distributor shall, at its sole cost and expense, execute and deliver all such further documents and instruments, and take all such further
acts, reasonably necessary to give full effect to this Agreement.

 

Section
21.02 Entire Agreement.

 

(a)
Subject to ARTICLE IV, this Agreement, including and together with any related exhibits, schedules, attachments, and appendices, together
with the Purchase Order Transaction Terms, constitutes the sole and entire agreement of the Parties with respect to the subject matter
contained herein and therein and supersedes all prior and contemporaneous understandings, agreements, representations and warranties,
both written and oral, regarding such subject matter.

 

(b)
Without limitation of anything contained in Section 21.02(a), Distributor acknowledges that except for the representations and warranties
contained in Section 17.01 neither Seller nor any other Person has relied on any other express or implied representation or warranty,
either written or oral, on behalf of Seller, including any representation or warranty arising from statute or otherwise in Law.

 

Section
21.03 Survival; Limitation of Actions. Subject to
the limitations and other provisions of this Agreement: (a) the representations and warranties of the Parties contained herein and related
exceptions, limitations, or qualifiers survive the expiration or earlier termination of this Agreement for a period of 12 months after
the expiration or termination; and (b) Sections 2.03, 2.04, 3.01 and Articles 13 through 19 of this Agreement, as well as any other provision
that, to give proper effect to its intent, should survive such expiration or termination, survive the expiration or earlier termination
of this Agreement for the period specified therein, or if nothing is specified for a period of 12 months after expiration or termination.
Notwithstanding any right under any applicable statute of limitations to bring a claim, no lawsuit or other action based on or arising
in any way out of this Agreement may be brought by either Party after the applicable survival period’s expiration; provided, however,
that the foregoing limitation does not apply to the collection of any amounts due to Seller under the Agreement; and provided, further,
that any claims asserted in good faith with reasonable specificity and in writing by Notice before the applicable survival period’s
expiration is not thereafter barred by the relevant period’s expiration, and these claims survive until finally resolved.

 

    	25

     

    

 

Section
21.04 Notices. All notices, requests, consents, claims,
demands, waivers, and other communications under this Agreement (each, a “Notice”) must be in writing and addressed
to the other Party at its address set out below (or to any other address that the receiving Party may designate from time to time in
accordance with this Section). Unless otherwise agreed herein, all Notices must be delivered by personal delivery, nationally recognized
overnight courier, certified or registered mail (in each case, return receipt requested, postage prepaid) or email of a PDF document
(with confirmation of transmission). Except as otherwise provided in this Agreement, a Notice is effective only (a) on receipt by the
receiving Party and (b) if the Party giving the Notice has complied with the requirements of this Section.

 

	Notice
    to Seller:	HARD
    ROCK SOLUTIONS, LLC

    a
    subsidiary of Superior Drilling Products, Inc.

    1583
    East, 1700 South

    Vernal,
    Utah 84078

    United
    States of America

	 	Email:
    annette@teamsdp.com 
	 	Attention:
    Annette Meier
	 	 
	with
    a copy to:	Ewing
    & Jones, PLLC

    6363
    Woodway Drive

    Suite
    1000

    Houston,
    Texas 77057

	 	Email:
    rewing@ewingjones.com 
	 	Attention:
    Mr. Randolph Ewing
	 	 
	Notice
    to Distributor:	BIN
    ZAYED PETROLEUM

    for
    INVESTMENT LTD

    17th
    Floor, Emaar Tower, Emaar Bulevard, Downtown, Dubai, UAE

	 	Email:
    e.envia@binzayedpetroleum.com
	 	Attention:
    Edward Envia
	 	 
	with
    a copy to:	CLYDE
    & CO

    PO
    Box 7001, Rolex Tower, Sheikh Zayed Road

    Dubai
    | UAE

	 	Email:
    Fady.Maximos@clydeco.ae
	 	Attention:
    Mr. Fady Maximos

 

Section
21.05 Severability. If any term or provision of this
Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability does not affect
any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction.
On a determination that any term or provision is invalid, illegal, or unenforceable, the Parties shall negotiate in good faith to modify
this Agreement to effect the original intent of the Parties as closely as possible in order that the transactions contemplated hereby
be consummated as originally contemplated to the greatest extent possible.

 

Section
21.06 Amendment and Modification. No amendment to
or modification of or rescission, termination, or discharge of this Agreement is effective unless it is in writing and signed by an authorized
Representative of each Party.

 

Section
21.07 Waiver. No waiver under this Agreement is effective unless it is in writing and
signed by an authorized representative of the Party waiving its right. Any waiver authorized on one occasion is effective only in that
instance and only for the purpose stated and does not operate as a waiver on any future occasion. None of the following constitutes a
waiver or estoppel of any right, remedy, power, privilege, or condition arising from this Agreement: (i) any failure or delay in exercising
any right, remedy, power, or privilege or in enforcing any condition under this Agreement; or (ii) any act, omission, or course of dealing
between the Parties.

 

    	26

     

    

 

Section
21.08 Cumulative Remedies. All rights and remedies
provided in this Agreement are cumulative and not exclusive, and the exercise by Seller of any right or remedy does not preclude the
exercise of any other rights or remedies that may now or later be available at law, in equity, by statute, in any other agreement between
the Parties or otherwise. Notwithstanding the previous sentence, the Parties intend that Distributor’s rights under Section, 9.03,
Section 9.04, Section 17.04, Section 17.04 and each of the Parties’ rights under ARTICLE XVIII are Distributor’s exclusive
remedies for the events specified therein.

 

Section
21.09 Equitable Remedies. Distributor acknowledges
and agrees that (a) a breach or threatened breach by Distributor of any of its obligations under ARTICLE XVI or ARTICLE XXII would give
rise to irreparable harm to Seller for which monetary damages would not be an adequate remedy and (b) in the event of a breach or a threatened
breach by Distributor of any of these obligations, Seller shall, in addition to any and all other rights and remedies that may be available
to Seller at law, at equity, or otherwise in respect of this breach, be entitled to equitable relief, including a temporary restraining
order, an injunction, specific performance, and any other relief that may be available from a court of competent jurisdiction, without
any requirement to post a bond or other security, and without any requirement to prove actual damages or that monetary damages do not
afford an adequate remedy. Distributor agrees that it will not oppose or otherwise challenge the appropriateness of equitable relief,
or the entry by a court of competent jurisdiction of an order granting equitable relief, in either case, consistent with the terms of
this Section 21.09.

 

Section
21.10 Assignment, Delegation, and Subdistribution. Distributor
may not assign any of its rights or delegate any of its obligations under this Agreement, including engaging any sub-agent, sub-lessor
or Affiliate without the prior written consent of Seller.

 

Distributor
may engage such third-party sub-agent, sub-distributor, or sub-lessor that intends to lease, rent, or otherwise distribute the Tools
in the Territory, provided that Distributor:

 

(a)
obtains the prior written consent of Seller, which consent Seller may withhold in its sole discretion;

 

(b)
obtains Seller’s approval that the subject third-party has completed all of Seller’s required documentation and approvals
for such an assignment or engagement; and

 

(c)
prior to the commencement of any work by the sub-agent, sub-lessor, or sub-distributor, enters into a written agreement with such sub-agent,
sub-lessor, or sub-distributor that binds the sub-distributor to terms that are at least as protective of the rights and information
of Seller under this Agreement.

 

In
all cases, Distributor is responsible for any acts or omissions of any of its Affiliates or subdistributors regarding the distribution
of the Tools and, notwithstanding any delegation to Affiliates or use of subdistributors, Distributor shall continue to be responsible
for its obligations and responsibilities under this Agreement.

 

Any
purported assignment or delegation in violation of this Section is null and void. No assignment or delegation relieves the assigning
or delegating Party of any of its obligations under this Agreement. Seller may assign any of its rights or delegate any of its obligations
to any Affiliate or any Person acquiring all or substantially all of Seller’s assets without the consent of Distributor.

 

Section
21.11 Successors and Assigns. This Agreement is binding
on and inures to the benefit of the Parties and their respective permitted successors and permitted assigns.

 

    	27

     

    

 

Section
21.12 No Third-Party Beneficiaries. This Agreement benefits solely the Parties to this
Agreement and their respective permitted successors and permitted assigns and nothing in this Agreement, express or implied, confers
on any other Person any legal or equitable right, benefit, or remedy of any nature whatsoever under or by reason of this Agreement.

 

Section
21.13 Dispute Resolution. In the event of a dispute,
controversy, or claim arising out of or relating to this Agreement, or the breach, termination or invalidity hereof (each, “Dispute”),
the Party seeking to settle the Dispute shall deliver Notice (each, a “Dispute Notice”) of the dispute to the other
Party as follows:

 

The
Distributor shall send the Dispute Notice to the CEO, Troy Meier of Seller at troy@teamsdp.com (or to another person of equivalent or
superior position designated by Seller in a Notice to Distributor).

 

The
Seller shall send the Dispute Notice to the DIRECTOR, Edward Envia of Distributor at e.envia@binzayedpetroleum.com (or to another person
of equivalent or superior position designated by Distributor in a Notice to Seller).

 

The
Parties shall negotiate in good faith to resolve the Dispute. If the Parties are unable to resolve any Dispute within 20 Business Days
after the applicable Dispute Notice’s delivery, either Party may file for arbitration in accordance with the provisions of Section
21.15.

 

Section
21.14 Governing Law. This Agreement shall be governed by and construed in accordance
with the English Law.

 

Section
21.15 Arbitration. Any controversy or claim arising out of or relating to this Agreement
that cannot be resolved in accordance with Section 21.13, or the breach thereof (including the amount of compensation payable hereunder
or any question as to its existence, validity or termination) shall be referred to and finally resolved by arbitration under the Arbitration
Rules of the DIFC-LCIA Arbitration Centre, which Rules are deemed to be incorporated by reference into this Section 21.15. The arbitration
shall (i) take place in Dubai, United Arab Emirates, (ii) be decided by 1 arbitrator and (iii) exclusively use the English language.
Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.

 

Section
21.16 Counterparts. This Agreement may be executed
in counterparts, each of which is deemed an original, but all of which together are deemed to be one and the same agreement. A signed
copy of this Agreement delivered by email, electronic signature or other means of electronic transmission is deemed to have the same
legal effect as delivery of an original signed copy of this Agreement.

 

Section
21.17 Force Majeure. No Party shall be liable or
responsible to the other Party, nor be deemed to have defaulted under or breached this Agreement or a Purchase Order, for any failure
or delay in fulfilling or performing any term of this Agreement or a Purchase Order (except for any obligations to make payments to the
other Party under this Agreement), when and to the extent the failure or delay is caused by or results from acts beyond the impacted
Party’s (“Impacted Party”) control, including the following force majeure events (“Force Majeure Events”):
(a) acts of God; (b) flood, fire, earthquake, or explosion; (c) war, invasion, hostilities (whether war is declared or not), terrorist
threats or acts, riot, or other civil unrest; (d) requirements of Law; (e) actions, embargoes, or blockades in effect on or after the
date of this Agreement; (f) action by any Governmental Authority; (g) national or regional emergency; (h) strikes, labor stoppages, or
slowdowns or other industrial disturbances; and (i) shortage of adequate power or transportation facilities. The Impacted Party shall
give Notice within 2 Business Days of the Force Majeure Event to the other Party, stating the period of time the occurrence is expected
to continue. The Impacted Party shall use diligent efforts to end the failure or delay and ensure the effects of the Force Majeure Event
are minimized. The Impacted Party shall resume the performance of its obligations as soon as reasonably practicable after the removal
of the cause. In the event that the Impacted Party’s failure or delay remains uncured for a period of 90 Business Days following
Notice given by it under this Section 21.17, either Party may thereafter terminate the Purchase Order subject to the Force Majeure Event
on 10 Business Days’ Notice.

 

Section
21.18 Reliance Disclaimer. Each Party confirms and agrees that, in deciding whether to sign this Agreement, it has not relied on
any statement or representation by the other Party or anyone acting on behalf of such other Party related to the subject matter of this
Agreement that is not in this Agreement.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	28

     

    

 

IN
WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Effective Date.

 

	 	HARD
    ROCK SOLUTIONS, LLC
	 	a
    subsidiary of Superior Drilling Products, Inc.
	 	 	 
	 	By	/s/
    Troy Meier
	 	Name: 	Troy
    Meier
	 	Title:	CEO
	 	 	 
	 	BIN
    ZAYED PETROLEUM
	 	for
    INVESTMENT LTD
	 	 	 
	 	By	/s/
    Edward Envia
	 	Name:	Edward
    Envia
	 	Title:	Director

 

    	29

     

    

 

Schedule
1

 

TOOLS

 

Seller’s
‘Drill N Ream’
or ‘DNR’, in all sizes in which Seller manufactures, which is has developed and
solely and exclusively owns and is described in this Schedule 1.

 

There
are no other Tools than the Drill N Ream included in this Agreement.

 

 

    	30

     

    

 

 

    	31

     

    

 

Schedule
2

 

TRADEMARKS
& PATENTS

 

Registered
Trademarks:

 

 

	Ref
    No.	 	Mark	 	Registration	 	Goods/Services
    Class	 	Application
    No

    Filing
    Date

    &
    Country

	3039.003.USTM	 	Drill-n-	 	U.S.
    Reg. No.	 	International	 	85/386,210
	 	 	Ream	 	4,207,933	 	Class
    7	 	08/01/2011
	United
    States	 	 	 	Sept
    11, 2012	 	 	 	US
	 	 	 	 	Supplemental	 	 	 	 
	 	 	 	 	Register	 	 	 	 

 

Registered
Patents:

 

	Ref
    No./Patent No.	 	Country
	3039.002.US	 	United
    States
	3039.002.PCT	 	International
	3039.002.AU	 	Australia
	3039.002.CA	 	Canada
	3039.002.CN	 	China
	339.002.EP	 	Europe
	3039.002.MX	 	Mexico
	3039.003.US	 	United
    States
	3039.003.PCT	 	International
	3039.003.AR	 	Argentina
	3039.006.US	 	United
    States
	3039.006.USCN	 	United
    States
	8,752,649	 	United
    States
	8,813,877	 	United
    States
	8,851,205	 	United
    States
	9,163,460	 	United
    States
	10458AU1	 	Australia

 

    	32

     

    

 

Schedule
3

 

TERRITORY

 

The
Middle East/North Africa region (“MENA”), excluding any countries where there are trade restrictions on US companies
or the lease, rental or sale of US goods or services. If any of those restricted countries from MENA region become unrestricted country
being allowed to do business with the United States of America again, then those countries are covered by MENA exclusivity rights of
this agreement.

 

The
MENA countries consist of: Algeria, Bahrain, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia,
Syria, Tunisia, United Arab Emirates and Yemen.

 

 

    	33

     

    

 

Exhibit
A

 

MARKET
PENETRATION EXPECTATIONS

 

Market
Penetration Expectations (MPE’s) with be jointly agreed to no later then October 31, 2022 for the 2023 calendar year. Parties agree
MPE’s will be established and set for each of the following calendar years by October 31, of the previous year. Parties agree to
support one and others efforts to achive high levels of Market Penetration throughout the life of this agreement.

 

EXHIBIT
B

 

EXISTING
MENA INVENTORY

 

[RedaCted
CONFIDEntial information]

 

EXHIBIT
C

 

PRICES

 

[RedaCted
CONFIDEntial information]

 

    	34

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