Document:

Exhibit 10.1 

 

Ameren Corporation 2022 Omnibus Incentive Compensation
Plan

 

ARTICLE 1

Establishment, Effectiveness, Purpose and Duration

 

Section 1.01. Establishment. Ameren
Corporation, a Missouri corporation (hereinafter referred to as the “Company”), establishes an incentive compensation
plan to be known as the Ameren Corporation 2022 Omnibus Incentive Compensation Plan (hereinafter referred to as this “Plan”),
as set forth in this document.

 

Section 1.02. Effectiveness. This
Plan shall become effective upon shareholder approval (the “Effective Date”) and shall remain in effect as provided
in ‎Section 1.04. The Company may make contingent Awards before the Effective Date; provided that the vesting, exercise,
or payment of such Awards is expressly conditioned on shareholder approval and the Awards are forfeited if shareholders do not approve
this Plan. Subject to the approval of the Company’s shareholders of this Plan, no further awards shall be granted under the Prior
Plan as of the Effective Date.

 

Section 1.03. Purpose of This Plan.
The purpose of this Plan is to provide a means whereby Employees and Directors of the Company develop a sense of proprietorship and personal
involvement in the development and financial success of the Company, and to encourage them to devote their best efforts to the business
of the Company, thereby advancing the interests of the Company and its shareholders. A further purpose of this Plan is to provide a means
through which the Company may attract able individuals to become Employees or serve as Directors of the Company. This Plan permits the
grant of Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units,
Performance Shares, Performance Units, Cash-Based Awards and Other Stock-Based Awards.

 

Section 1.04. Duration of This Plan.
Unless sooner terminated as provided herein, this Plan shall terminate ten years from the Effective Date. After this Plan is terminated,
no Awards may be granted but Awards previously granted shall remain outstanding in accordance with their applicable terms and conditions
and this Plan’s terms and conditions. Notwithstanding the foregoing, no Incentive Stock Options may be granted more than ten years
after the earlier of (a) adoption of this Plan by the Board, or (b) the Effective Date.

 

ARTICLE 2

Definitions

 

Whenever used in this Plan, the following terms
shall have the meanings set forth below, and when the meaning is intended, the initial letter of the word shall be capitalized.

 

“Affiliate” means any corporation
or other entity (including, but not limited to, a partnership or a limited liability company) that is affiliated with the Company through
stock or equity ownership or otherwise, including each Subsidiary and any other corporation or entity designated as an Affiliate for
purposes of this Plan by the Committee.

 

     

     

    

 

“Aggregate Share Authorization”
has the meaning set forth in ‎Section 4.01.

 

“Annual Award Limit” and “Annual
Award Limits” have the meaning set forth in ‎Section 4.03.

 

“Award” means, individually
or collectively, a grant under this Plan of Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted
Stock, Restricted Stock Units, Performance Shares, Performance Units, Cash-Based Awards, or Other Stock-Based Awards, in each case subject
to the terms of this Plan.

 

“Award Agreement” means either
(i) an agreement entered into by the Company and a Participant setting forth the terms and provisions applicable to an Award granted
under this Plan, or (ii) a written or electronic statement issued by the Company to a Participant describing the terms and provisions
of such Award, including any amendment or modification thereof. The Committee may provide for the use of electronic, Internet, or
other non-paper Award Agreements, and the use of electronic, Internet, or other non-paper means for the acceptance thereof and actions
thereunder by a Participant.

 

“Board” or “Board
of Directors” means the Board of Directors of the Company.

 

“Cash-Based Award” means an
Award, denominated in cash, granted to a Participant as described in ‎Article 10.

 

“Change of Control” has the
meaning set forth in the Company’s Change of Control Severance Plan.

 

“Code” means the U.S. Internal
Revenue Code of 1986, as amended from time to time. For purposes of this Plan, references to sections of the Code shall be deemed to
include references to any applicable regulations or other published guidance thereunder and any successor or similar provision.

 

“Committee” means the Human
Resources Committee of the Board or a subcommittee thereof, or any other committee designated by the Board to administer this Plan. The
members of the Committee shall be appointed from time to time by and shall serve at the discretion of the Board. The Committee shall
consist of two or more persons, each of whom qualifies as a “non-employee director” within the meaning of Rule 16b-3
of the Exchange Act. If the Committee does not exist or cannot function for any reason, the Board may take any action under the Plan
that would otherwise be the responsibility of the Committee.

 

“Company” has the meaning set
forth in ‎Section 1.01, and any successor thereto as provided in ‎Article 21.

 

“Director” means any individual
who is a member of the Board of Directors of the Company and who is not an employee of the Company.

 

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“Director Award” means any
Award granted, whether singly, in combination, or in tandem, to a Participant who is a Director pursuant to such applicable terms, conditions,
and limitations as the Board or Committee may establish in accordance with this Plan.

 

“Effective Date” has the meaning
set forth in ‎Section 1.02.

 

“Employee” means any individual
designated as an employee of the Company, its Affiliates, and/or its Subsidiaries on the payroll records thereof.

 

“Exchange Act” means the Securities
Exchange Act of 1934, as amended from time to time. For purposes of this Plan, references to sections of the Exchange Act shall be deemed
to include references to any applicable regulations or other published guidance thereunder and any successor or similar provision.

 

“Fair Market Value” or “FMV”
means a price that is based on the opening, closing, actual, high, low, or average selling prices of a Share reported on the New York
Stock Exchange (“NYSE”) or other established stock exchange (or exchanges) on the applicable date, the preceding trading
day, the next succeeding trading day, or an average of trading days, as determined by the Committee in its discretion. Unless the Committee
determines otherwise, Fair Market Value shall be the closing price of a Share on the date in question (or, if there is no reported sale
on such date, on the last preceding date on which any reported sale occurred). In the event that Shares are not publicly traded at the
time a determination of their value is required to be made hereunder, the determination of their Fair Market Value shall be made by the
Committee in such manner as it deems appropriate. If Fair Market Value is a price other than the closing price of a Share on the most
recent date on which Shares were publicly traded, the definition of FMV shall be specified in the Award Agreement.

 

“Full Value Award” means an
Award other than an Award in the form of a Nonqualified Stock Option, Incentive Stock Option or Stock Appreciation Right, and which
is settled by the issuance of Shares.

 

“Grant Price” means the price
established at the time of grant of an SAR pursuant to ‎Article 7, used to determine whether there is any payment due upon exercise
of the SAR.

 

“Incentive Stock Option” or
 “ISO” means an Option to purchase Shares granted under ‎Article 6 to an Employee that is designated as an
Incentive Stock Option and intended to meet the requirements of Code Section 422.

 

“Nonqualified Stock Option”
or “NQSO” means an Option that is not intended to meet the requirements of Code Section 422, or that otherwise
does not meet such requirements.

 

“Option” means an Incentive
Stock Option or a Nonqualified Stock Option, as granted pursuant to ‎Article 6.

 

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

 

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“Option Term” means the period
of time during which an Option is exercisable as the Committee shall determine at the time of grant; provided, however,
no Option shall be exercisable later than the tenth anniversary of its grant date.

 

“Other Stock-Based Award” means
an equity-based or equity-related Award not otherwise described by the terms of this Plan, granted pursuant to ‎Article 10.

 

“Participant” means any eligible
individual as set forth in ‎Article 5 to whom an Award is granted.

 

“Performance Measures” means
measures as described in ‎Article 12 on which the performance goals with respect to Performance Shares and/or Performance Units
may be based.

 

“Performance Period” means
the period of time during which the performance goals must be met in order to determine the degree of payout and/or vesting with respect
to an Award.

 

“Performance Share” means an
Award granted pursuant to ‎Article 9 that is denominated in Shares, the value of which at the time it is payable is determined
based on achievement of corresponding performance criteria.

 

“Performance Unit” means an
Award granted under ‎Article 9 that is denominated in dollars, the value of which at the time it is payable is determined based
on achievement of corresponding performance criteria.

 

“Period of Restriction” means
the period when Restricted Stock or Restricted Stock Units are subject to a substantial risk of forfeiture (based on the performance
of services, the achievement of performance goals, or the occurrence of other events as determined by the Committee, in its discretion),
as provided in ‎Article 8.

 

“Person” shall have the meaning
ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including
a “group” as defined in Section 13(d) thereof.

 

“Plan” has the meaning set
forth in ‎Section 1.01.

 

“Plan Year” means the calendar
year.

 

“Prior Plan” means the Ameren
Corporation 2014 Omnibus Incentive Compensation Plan.

 

“Prior Plan Award” means an
award granted under a Prior Plan that is outstanding as of the Effective Date.

 

“Restricted Stock” means an
Award granted pursuant to ‎Article 8, as set forth therein.

 

“Restricted Stock Unit” means
an Award granted pursuant to ‎Article 8, as set forth therein.

 

“Share” means a share of common
stock of the Company, $0.01 par value per share.

 

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“Stock Appreciation Right”
or “SAR” means an Award, designated as an SAR, granted pursuant to ‎Article 7.

 

“Subsidiary” means any corporation
or other entity, whether domestic or foreign, in which the Company has or obtains, directly or indirectly, a proprietary interest of
more than 50% by reason of stock ownership or otherwise.

 

ARTICLE 3

Administration

 

Section 3.01. General. The Committee
shall be responsible for administering this Plan, subject to this ‎Article 3 and the other provisions of this Plan. The Committee
may employ attorneys, consultants, accountants, agents, and other individuals, any of whom may be an Employee, and the Committee, the
Company, and its officers and Directors shall be entitled to rely upon the advice, opinions, or valuations of any such individuals. All
actions taken and all interpretations and determinations made by the Committee shall be final and binding upon the Participants, the
Company, and all other interested persons.

 

Section 3.02. Authority of the Committee.
The Committee shall have full discretionary power to interpret the terms and the intent of this Plan and any Award Agreement or other
agreement or document ancillary to or in connection with this Plan, to determine eligibility for Awards and to adopt such rules, regulations,
forms, instruments, and guidelines for administering this Plan as the Committee may deem necessary or proper. Such authority shall include,
but not be limited to, selecting Award recipients, establishing all Award terms and conditions, including the terms and conditions set
forth in Award Agreements, granting Awards as an alternative to or as the form of payment for grants or rights earned or due under compensation
plans or arrangements of the Company, construing any ambiguous provision of the Plan or any Award Agreement, and, subject to ‎Article 18,
adopting modifications and amendments to this Plan or any Award Agreement, including without limitation, any that are necessary to comply
with or qualify for the laws of the countries and other jurisdictions in which the Company, its Affiliates, and/or its Subsidiaries operate.

 

Section 3.03. Delegation. To the extent
permitted under applicable law, the Committee may delegate to one or more of its members or to one or more officers of the Company and/or
its Subsidiaries and Affiliates, or to one or more agents or advisors, such administrative duties or powers as it may deem advisable,
and the Committee or any individuals to whom it has delegated duties or powers as aforesaid may employ one or more individuals to render
advice with respect to any responsibility that the Committee or such individuals may have under this Plan. The Committee may, by resolution,
authorize one or more officers of the Company to do one or both of the following on the same basis as can the Committee: (a) designate
Employees to be recipients of Awards; and (b) determine the size of any such Awards; provided, however,
(i) the Committee shall not delegate such responsibilities to any such officer for Awards granted to an Employee who is, on the
relevant date, a Covered Employee or an officer or Director for purposes of Section 16 of the Exchange Act; (ii) the resolution
providing such authorization sets forth the total number of Shares underlying Awards such officer(s) may grant; and (iii) the
officer(s) shall report periodically to the Committee regarding the nature and scope of the Awards granted pursuant to the authority
delegated.

 

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ARTICLE 4

Shares Subject to this Plan and Maximum Awards

 

Section 4.01. Number of Shares Available
for Awards. (a) Subject to adjustment as provided in ‎Section 4.04, the maximum number of Shares available for grant
to Participants under this Plan (the “Aggregate Share Authorization”) shall be the sum of (i) 7,500,000 Shares
and (ii) the number of Shares available under the Prior Plan as of the Effective Date (the Shares under clause (ii) are the
 “Transferred Shares”). For the avoidance of doubt, the Transferred Shares shall no longer be available under the Prior
Plan and, to the extent that the issuance of any Share subject to a Prior Plan Award that is outstanding as of the Effective Date would
cause the Company to exceed the aggregate share authorization under the Prior Plan, any such Share shall be made under this Plan and
shall reduce this Plan’s Aggregate Share Authorization by one Share.

 

(b)            The
maximum number of Shares that may be issued pursuant to ISOs under this Plan shall be equal to the Aggregate Share Authorization.

 

(c)            The
maximum aggregate value of Awards that may be granted to any Director under this Plan during any calendar year shall not exceed $750,000,
as determined by the Committee based on the value of any Award at the time of grant.

 

Section 4.02. Share Usage. (a) Shares
covered by an Award or a Prior Plan Award (if applicable) shall be counted as used only to the extent they are actually issued. Any Shares
related to Awards that terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such Shares, are settled
in cash in lieu of Shares, or are exchanged with the Committee’s permission (prior to the issuance of Shares) for Awards not involving
Shares, shall be available again for grant under this Plan.

 

(b)            Notwithstanding
anything to the contrary in ‎Section 4.02(a), Shares subject to an Award shall not again be available for grant under this Plan
if such Shares are (i) Shares tendered or withheld in payment of the exercise price of an Option, (ii) Shares delivered to
or withheld by the Company to satisfy any tax withholding liabilities arising from an Option, or (iii) Shares covered by a stock-settled
Stock Appreciation Right that were not issued upon the settlement of the Stock Appreciation Right.

 

Section 4.03. Adjustments in Authorized
Shares. (a) In the event of any corporate event or transaction (including, but not limited to, a change in the Shares of the
Company or the capitalization of the Company) such as a merger, consolidation, reorganization, recapitalization, separation, partial
or complete liquidation, stock dividend, stock split, reverse stock split, split up, spin-off, or other distribution of stock or property
of the Company, combination of Shares, exchange of Shares, dividend in kind, or other like change in capital structure, number of outstanding
Shares, or distribution (other than normal cash dividends) to shareholders of the Company, or any similar corporate event or transaction,
or in the event of unusual or nonrecurring events affecting the Company or the financial statements of the Company or of changes in applicable
laws, regulations, or accounting principles, the Committee, in order to prevent dilution or enlargement of Participants’ rights
under this Plan, shall substitute or adjust, as applicable, the number and kind of Shares that may be granted under this Plan or under
particular forms of Awards, the number and kind of Shares subject to outstanding Awards, the Option Price or Grant Price applicable to
outstanding Awards, the Annual Award Limits, and other value determinations applicable to outstanding Awards. The Committee, in its discretion,
shall determine the methodology or manner of making such substitution or adjustment.

 

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(b)            The
Committee, in its sole discretion, may also make appropriate adjustments in the terms of any Awards under this Plan to reflect, or that
relate to, the changes or distributions described in Section 4.04(a) and to modify any other terms of outstanding Awards, including
modifications of performance goals and changes in the length of Performance Periods. The Committee shall not make any adjustment pursuant
to this Section 4.04 that would (i) cause an Award that is otherwise exempt from Code Section 409A to become subject to
Section 409A or (ii) cause an Award that is subject to Code Section 409A to fail to satisfy the requirements of Section 409A.
The determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and binding on Participants under this
Plan.

 

(c)            Subject
to the provisions of ‎Article 18 and notwithstanding anything else herein to the contrary, without affecting the number of Shares
reserved or available hereunder, the Committee may authorize the issuance or assumption of benefits under this Plan in connection with
any merger, consolidation, acquisition of property or stock, or reorganization upon such terms and conditions as it may deem appropriate
(including, but not limited to, a conversion of equity awards into Awards under this Plan in a manner consistent with FASB ASC Topic
718-20-35-6 or its successor, subject to compliance with the rules under Code Sections 409A, 422, and 424, as and where applicable.

 

Section 4.04. Source of Shares. The
Shares available for issuance under this Plan may be authorized and unissued Shares or treasury Shares.

 

ARTICLE 5

Eligibility and Participation

 

Section 5.01. Eligibility. Individuals
eligible to participate in this Plan include all Employees and Directors.

 

Section 5.02. Actual Participation.
Subject to the provisions of this Plan, the Committee may, from time to time, select from all eligible individuals those individuals
to whom Awards shall be granted and shall determine, in its sole discretion, the nature of any and all terms permissible by law, and
the amount of each Award.

 

ARTICLE 6

Stock Options

 

Section 6.01. Grant of Options. Subject
to the terms and provisions of this Plan, Options may be granted to Participants in such number, and upon such terms, and at any time
and from time to time as shall be determined by the Committee, in its sole discretion; provided that ISOs may be granted
only to eligible Employees of the Company or of any parent or subsidiary corporation (to the extent permitted under Code Sections 422
and 424).

 

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Section 6.02. Award Agreement. Each
Option grant shall be evidenced by an Award Agreement that shall specify the Option Price, the maximum duration of the Option, the number
of Shares to which the Option pertains, the conditions upon which an Option shall become vested and exercisable, and such other provisions
as the Committee shall determine which are not inconsistent with the terms of this Plan. The Award Agreement also shall specify whether
the Option is intended to be an ISO or an NQSO.

 

Section 6.03. Option Price. The Option
Price for each grant of an Option under this Plan shall be determined by the Committee in its sole discretion and shall be specified
in the Award Agreement; provided, however, the Option Price must be at least equal to 100% of the FMV of the Shares
as determined on the date of grant.

 

Section 6.04. Term of Options. Each
Option granted to a Participant shall expire at such time as the Committee shall determine and set forth in the Award Agreement at the
time of grant; provided, however, no Option shall be exercisable later than the tenth anniversary date of its grant.
Notwithstanding the foregoing, for Nonqualified Stock Options granted to Participants outside the United States, the Committee has the
authority to grant Nonqualified Stock Options that have a term greater than ten years.

 

Section 6.05. Exercise of Options.
Options granted under this ‎Article 6 shall be exercisable at such times and be subject to such restrictions and conditions
as the Committee shall in each instance approve, which terms and restrictions need not be the same for each grant or for each Participant.

 

Section 6.06. Payment. (a) Subject
to ‎Section 6.09, Options granted under this ‎Article 6 shall be exercised by the delivery of a notice of exercise
to the Company or an agent designated by the Company in a form specified or accepted by the Committee, or by complying with any alternative
procedures which may be authorized by the Committee, setting forth the number of Shares with respect to which the Option is to be exercised,
accompanied by full payment for the Shares. The Shares shall become the property of the Participant on the exercise date, subject to
any forfeiture conditions specified in the Option.

 

(b)            A
condition of the issuance of the Shares as to which an Option shall be exercised shall be the payment of the Option Price at the time
of the exercise. The Option Price of any Option shall be payable to the Company in full either (i) in cash or its equivalent;
(ii) by tendering (either by actual delivery or attestation) previously acquired Shares having an aggregate Fair Market Value at
the time of exercise equal to the Option Price; (iii) by a cashless (broker-assisted) exercise; (iv) by a combination
of (i), (ii) and/or (iii); or (v) any other method approved or accepted by the Committee in its sole discretion. Unless
otherwise determined by the Committee, all payments under all of the methods indicated above shall be paid in United States dollars.

 

(c)            Subject
to any governing rules or regulations, as soon as practicable after receipt of written notification of exercise and full payment
(including satisfaction of any applicable tax withholding), the Company shall deliver to the Participant a statement of holdings as evidence
of book entry uncertificated Shares, or at the sole discretion of the Committee upon the Participant’s request, Share certificates
in an appropriate amount based upon the number of Shares purchased under the Option(s).

 

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Section 6.07. Restrictions on Share Transferability.
The Committee may impose such restrictions on any Shares acquired pursuant to the exercise of an Option granted under this ‎Article 6
as it may deem advisable, including, without limitation, minimum holding period requirements, restrictions under applicable federal securities
laws, under the requirements of any stock exchange or market upon which such Shares are then listed and/or traded, or under any blue
sky or state securities laws applicable to such Shares.

 

Section 6.08. Termination of Employment.
Each Participant’s Award Agreement shall set forth the extent to which the Participant shall have the right to exercise the Option
following termination of the Participant’s employment or provision of services to the Company, its Affiliates, and/or its Subsidiaries,
as the case may be. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement
entered into with each Participant, need not be uniform among all Options granted pursuant to this ‎Article 6, and may reflect
distinctions based on the reasons for termination.

 

Section 6.09. Automatic Option Exercise.
An Award Agreement may provide that if, on the last day of the term of an Option, the Fair Market Value of one Share exceeds the exercise
price per Share of the Option, if the Participant has not exercised the Option, and the Option has not otherwise expired, the Option
shall be deemed to have been exercised by the Participant on such day. In such event, the Company shall deliver Shares to the Participant
in accordance with this ‎Section 6.09, reduced by the number of Shares required for payment of the exercise price and for payment
of withholding taxes; any fractional Share shall be settled in cash.

 

ARTICLE 7

Stock Appreciation Rights

 

Section 7.01. Grant of SARs. Subject
to the terms and conditions of this Plan, SARs may be granted to Participants at any time and from time to time as shall be determined
by the Committee. Subject to the terms and conditions of this Plan, the Committee shall have complete discretion in determining the number
of SARs granted to each Participant and, consistent with the provisions of this Plan, the terms and conditions pertaining to such SARs.

 

Section 7.02. SAR Award Agreement.
Each SAR grant shall be evidenced by an Award Agreement that shall specify the Grant Price, the maximum duration of the SAR, the number
of Shares to which the SAR pertains, the conditions upon which an SAR shall become vested and exercisable, and such other provisions
as the Committee shall determine which are not inconsistent with the terms of this Plan.

 

Section 7.03. Grant Price. The Grant
Price for each grant of an SAR shall be determined by the Committee and shall be specified in the Award Agreement; provided,
however, the Grant Price on the date of grant must be at least equal to 100% of the FMV of the Shares as determined on the date
of grant.

 

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Section 7.04. Term of SAR. The term
of an SAR granted under this Plan shall be determined by the Committee, in its sole discretion, and set forth in the Award Agreement
at the time of grant. Except as determined otherwise by the Committee and specified in the SAR Award Agreement, no SAR shall be exercisable
later than the tenth anniversary date of its grant. Notwithstanding the foregoing, for SARs granted to Participants outside the United
States, the Committee has the authority to grant SARs that have a term greater than ten years.

 

Section 7.05. Exercise of SARs. SARs
granted under this ‎Article 7 shall be exercisable at such times and be subject to such restrictions and conditions as the Committee
shall in each instance approve, which terms and restrictions need not be the same for each grant or for each Participant.

 

Section 7.06. Settlement of SARs.
Upon the exercise of an SAR, a Participant shall be entitled to receive payment from the Company on the exercise date in an amount determined
by multiplying:

 

(a)            the
excess of the Fair Market Value of a Share on the date of exercise over the Grant Price by

 

(b)            the
number of Shares with respect to which the SAR is exercised.

 

At the discretion of the Committee, the payment
upon SAR exercise may be in cash, Shares, or any combination thereof, or in any other manner approved by the Committee in its sole discretion.
The Committee’s determination regarding the form of SAR payout shall be set forth in the Award Agreement pertaining to the grant
of the SAR.

 

Section 7.07. Termination of Employment.
Each Award Agreement shall set forth the extent to which the Participant shall have the right to exercise the SAR following termination
of the Participant’s employment with or provision of services to the Company, its Affiliates, and/or its Subsidiaries, as the case
may be. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered
into with Participants, need not be uniform among all SARs granted pursuant to this ‎Article 7, and may reflect distinctions
based on the reasons for termination.

 

Section 7.08. Other Restrictions.
The Committee shall impose such other conditions and/or restrictions on any Shares received upon exercise of an SAR granted pursuant
to this Plan as it may deem advisable or desirable. These restrictions may include, but shall not be limited to, a requirement that the
Participant hold the Shares received upon exercise of an SAR for a specified period of time.

 

Section 7.09. Automatic SAR Exercise.
An Award Agreement may provide that if, on the last day of the term of an SAR, the Fair Market Value of one Share exceeds the Grant Price
per Share of the SAR, if the Participant has not exercised the SAR, and the SAR has not otherwise expired, the SAR shall be deemed to
have been exercised by the Participant on such day. In such event, the Company shall deliver payment to the Participant in accordance
with the terms of settlement set forth in ‎Section 7.06.

 

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ARTICLE 8

Restricted Stock and Restricted Stock Units

 

Section 8.01. Grant of Restricted Stock
or Restricted Stock Units. Subject to the terms and provisions of this Plan, the Committee, at any time and from time to time, may
grant Shares of Restricted Stock and/or Restricted Stock Units to Participants in such amounts as the Committee shall determine. Restricted
Stock Units shall be similar to Restricted Stock except that no Shares are actually awarded to the Participant on the date of grant.

 

Section 8.02. Restricted Stock or Restricted
Stock Unit Award Agreement. Each Restricted Stock and/or Restricted Stock Unit grant shall be evidenced by an Award Agreement that
shall specify the Period(s) of Restriction, the number of Shares of Restricted Stock or the number of Restricted Stock Units granted,
and such other provisions as the Committee shall determine.

 

Section 8.03. Other Restrictions.
(a) The Committee shall impose such other conditions and/or restrictions on any Shares of Restricted Stock or Restricted Stock Units
granted pursuant to this Plan as it may deem advisable including, without limitation, a requirement that Participants pay a stipulated
purchase price for each Share of Restricted Stock or each Restricted Stock Unit, restrictions based upon the achievement of specific
performance goals, time-based restrictions on vesting following the attainment of the performance goals, time-based restrictions, and/or
restrictions under applicable laws or under the requirements of any stock exchange or market upon which such Shares are listed or traded,
or holding requirements or sale restrictions placed on the Shares by the Company upon vesting of such Restricted Stock or Restricted
Stock Units.

 

(b)            To
the extent deemed appropriate by the Committee, the Company may retain any certificates or statements of holdings representing Shares
of Restricted Stock in the Company’s possession until such time as all conditions and/or restrictions applicable to such Shares
have been satisfied or lapse.

 

(c)            Except
as otherwise provided in this ‎Article 8, Shares of Restricted Stock covered by each Restricted Stock Award shall become freely
transferable by the Participant after all conditions and restrictions applicable to such Shares have been satisfied or lapse (including
satisfaction of any applicable tax withholding obligations), and Restricted Stock Units shall be paid in cash, Shares, or a combination
of cash and Shares as the Committee, in its sole discretion, shall determine.

 

Section 8.04. Certificate Legend.
In addition to any legends placed on certificates or statements of holdings pursuant to ‎Section 8.03, each certificate or statement
of holdings representing Shares of Restricted Stock granted pursuant to this Plan may bear a legend such as the following or as otherwise
determined by the Committee in its sole discretion:

 

The sale or transfer of Shares of stock represented
by this certificate or statement of holdings, whether voluntary, involuntary, or by operation of law, is subject to certain restrictions
on transfer as set forth in the Ameren Corporation 2022 Omnibus Incentive Compensation Plan, and in the associated Award Agreement. A
copy of the Plan and such Award Agreement may be obtained from Ameren Corporation.

 

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Section 8.05. Voting Rights. Unless
otherwise determined by the Committee and set forth in a Participant’s Award Agreement, to the extent permitted or required by
law, as determined by the Committee, Participants holding Shares of Restricted Stock granted hereunder may be granted the right to exercise
full voting rights with respect to those Shares during the Period of Restriction. A Participant shall have no voting rights with respect
to any Restricted Stock Units granted hereunder.

 

Section 8.06. Termination of Employment.
Each Award Agreement shall set forth the extent to which the Participant shall have the right to retain Restricted Stock and/or Restricted
Stock Units following termination of the Participant’s employment with or provision of services to the Company, its Affiliates,
and/or its Subsidiaries, as the case may be. Such provisions shall be determined in the sole discretion of the Committee, shall be included
in the Award Agreement entered into with each Participant, need not be uniform among all Shares of Restricted Stock or Restricted Stock
Units granted pursuant to this ‎Article 8, and may reflect distinctions based on the reasons for termination.

 

ARTICLE 9

Performance Units / Performance Shares

 

Section 9.01. Grant of Performance Units
/ Performance Shares. Subject to the terms and provisions of this Plan, the Committee, at any time and from time to time, may grant
Performance Units and/or Performance Shares to Participants in such amounts and upon such terms as the Committee shall determine.

 

Section 9.02. Value of Performance Units
/ Performance Shares. Each Performance Unit shall have an initial value that is established by the Committee at the time of grant.
Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on the date of grant. The Committee shall
set performance goals in its discretion which, depending on the extent to which they are met, will determine the value and/or number
of Performance Units/Performance Shares that will be paid out to the Participant.

 

Section 9.03. Earning of Performance Units
/ Performance Shares. Subject to the terms of this Plan, after the applicable Performance Period has ended, the holder of Performance
Units/Performance Shares shall be entitled to receive payout as provided in ‎Section 9.04 on the value and number of Performance
Units/Performance Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which
the corresponding performance goals have been achieved. Regardless of the level of performance achieved, in no event will the number
of Shares issued (or the amount of cash paid) with respect to a Performance Unit/Performance Share exceed 2.5 Shares (or the value of
2.5 Shares).

 

Section 9.04. Form and Timing of
Payment of Performance Units / Performance Shares. Payment of earned Performance Units/Performance Shares shall be as determined
by the Committee and as evidenced in the Award Agreement. Subject to the terms of this Plan, the Committee, in its sole discretion, may
pay earned Performance Units/Performance Shares in the form of cash or in Shares (or in a combination thereof) equal to the value of
the earned Performance Units/Performance Shares at the close of the applicable Performance Period, or as soon as practicable after the
end of the Performance Period. Any Shares may be granted subject to any restrictions deemed appropriate by the Committee. The determination
of the Committee with respect to the form of payout of such Awards shall be set forth in the Award Agreement pertaining to the grant
of the Award.

 

    12

     

    

 

Section 9.05. Termination of Employment.
Each Award Agreement shall set forth the extent to which the Participant shall have the right to retain Performance Units and/or Performance
Shares following termination of the Participant’s employment with or provision of services to the Company, its Affiliates, and/or
its Subsidiaries, as the case may be. Such provisions shall be determined in the sole discretion of the Committee, shall be included
in the Award Agreement entered into with each Participant, need not be uniform among all Awards of Performance Units or Performance Shares
awarded pursuant to this ‎Article 9, and may reflect distinctions based on the reasons for termination.

 

ARTICLE 10

Cash-Based Awards and Other Stock-Based Awards

 

Section 10.01. Grant of Cash-Based Awards.
Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant Cash-Based Awards to Participants
in such amounts and upon such terms as the Committee may determine.

 

Section 10.02. Other Stock-Based Awards.
The Committee may grant other types of equity-based or equity-related Awards not otherwise described by the terms of this Plan (including
the grant or offer for sale of unrestricted Shares) in such amounts and subject to such terms and conditions as the Committee shall determine.
Such Awards may involve the transfer of actual Shares to Participants, or payment in cash or otherwise of amounts based on the value
of Shares and may include, without limitation, Awards designed to comply with or take advantage of the applicable local laws of jurisdictions
other than the United States.

 

Section 10.03. Value of Cash-Based and
Other Stock-Based Awards. Each Cash-Based Award shall specify a payment amount or payment range as determined by the Committee. Each
Other Stock-Based Award shall be expressed in terms of Shares or units based on Shares, as determined by the Committee. The Committee
may establish performance goals in its discretion. If the Committee exercises its discretion to establish performance goals, the number
and/or value of Cash-Based Awards or Other Stock-Based Awards that will be paid out to the Participant will depend on the extent to which
the performance goals are met.

 

Section 10.04. Payment of Cash-Based Awards
and Other Stock-Based Awards. Payment, if any, with respect to a Cash-Based Award or an Other Stock-Based Award shall be made in accordance
with the terms of the Award, in cash or Shares as the Committee determines.

 

Section 10.05. Termination of Employment.
The Committee shall determine the extent to which the Participant shall have the right to receive Cash-Based Awards or Other Stock-Based
Awards following termination of the Participant’s employment with or provision of services to the Company, its Affiliates, and/or
its Subsidiaries, as the case may be. Such provisions shall be determined in the sole discretion of the Committee. Such provisions may
be included in the Award Agreement, but need not be uniform among all Awards of Cash-Based Awards or Other Stock-Based Awards granted
pursuant to this ‎Article 10, and may reflect distinctions based on the reasons for termination.

 

    13

     

    

 

ARTICLE 11

Transferability of Awards

 

Section 11.01. Transferability. Except
as provided in ‎Section 11.02, during a Participant’s lifetime, the Participant’s Awards shall be exercisable only
by the Participant. Awards shall not be transferable other than by will or the laws of descent and distribution; no Awards shall
be subject, in whole or in part, to attachment, execution, or levy of any kind; and any purported transfer in violation of this
 ‎Section 11.01 shall be null and void. The Committee may establish such procedures as it deems appropriate for a Participant
to designate a beneficiary to whom any amounts payable or Shares deliverable in the event of, or following, the Participant’s death,
may be provided.

 

Section 11.02. Committee Action. The
Committee may, in its discretion, determine that notwithstanding ‎Section 11.01, any or all Awards (other than ISOs) shall be
transferable to and exercisable by such transferees, and subject to such terms and conditions, as the Committee may deem appropriate;
provided, however, no Award may be transferred for value (as defined in the General Instructions to Form S-8 Registration
Statement under the Securities Act of 1933, as amended).

 

ARTICLE 12

Performance Measures

 

Section 12.01. Awards Under This Article 12.
If an Award (other than an Option or SAR) is intended to qualify as a Performance Unit or Performance Share, the Award shall be granted
in accordance with the terms of this ‎Article 12 and shall vest or be paid solely on account of the attainment of an objective
performance goal based on one or more of the Performance Measures listed in ‎Section 12.02.

 

Section 12.02. Performance Measures.
(a) The Committee shall determine the Performance Measures used to establish performance goals for Performance Units and/or Performance
Shares, including, but not limited to (i) net earnings or net income (before or after taxes); (ii) earnings per share;
(iii) net sales or revenue growth; (iv) net operating profit; (v) return measures (including, but not limited
to, return on assets, capital, invested capital, equity, sales, or revenue); (vi) cash flow (including, but not limited to,
operating cash flow, free cash flow, cash flow return on equity, and cash flow return on investment); (vii) earnings before
or after taxes, interest, depreciation, and/or amortization; (viii) gross or operating margins; (ix) gross revenue;
(x) productivity ratios; (xi) share price (including, but not limited to, growth measures); (xii) expense targets;
(xiii) margins; (xiv) operating efficiency; (xv) capacity utilization; (xvi) increase in customer
base; (xvii) environmental health and safety; (xviii) diversity; (xix) quality; (xx) customer
satisfaction; (xxi) working capital targets; (xxii) economic value added or EVA (net operating profit after tax minus
the sum of capital multiplied by the cost of capital); (xxiii) net debt; (xxiv) corporate governance; (xxv) total
shareholder return; (xxvi) dividend; and (xxvii) bond rating.

 

(b)            Any
Performance Measure(s) may be used in a quantitative manner to measure the performance of the Company, Subsidiary, and/or Affiliate
as a whole or any business unit of the Company, Subsidiary, and/or Affiliate or any combination thereof, as the Committee may deem appropriate,
or any of the above Performance Measures as compared to the performance of a group of comparator companies, or published or special index
that the Committee, in its sole discretion, deems appropriate, or the Company may select Performance Measure (xi) above as compared
to various stock market indices. The Committee also has the authority to provide for accelerated vesting of any Award based on the achievement
of performance goals pursuant to the Performance Measures specified in this ‎Article 12.

 

    14

     

    

 

Section 12.03. Evaluation of Performance.
The evaluation of performance may include or exclude the effect of events that occur during a Performance Period, including, but not
limited to, any of the following, and the Committee shall specify when it establishes the performance goal whether the effect of one
or more such events shall be so included or excluded: (a) asset write-downs; (b) litigation or claim judgments or settlements;
(c) the effect of changes in tax laws, accounting principles, laws, regulatory actions, or provisions affecting reported results;
(d) any reorganization and restructuring programs; (e) extraordinary nonrecurring items as described in FASB ASC Topic
225-20-20 or its successor and/or in management’s discussion and analysis of financial condition and results of operations appearing
in the Company’s annual report to shareholders or Annual Report on Form 10-K, as the case may be, for the applicable year;
(f) acquisitions or divestitures; and (g) foreign exchange gains and losses.

 

Section 12.04. Adjustment of Performance.
Performance Units and/or Performance Shares may be adjusted upward or downward, either on a formula or discretionary basis or any combination,
as the Committee determines.

 

ARTICLE 13

Director Awards

 

Subject to ‎Section 4.01(c), the Board
shall determine all Awards to Directors. The terms and conditions of any grant to any such Director shall be set forth in an Award Agreement.

 

ARTICLE 14

Dividend Equivalents

 

Any Participant selected by the Committee may
be granted dividend equivalents based on the dividends declared on Shares that are subject to any Full Value Award, to be credited as
of the dividend payment dates, during the period between the date on which the Full Value Award is granted and the date on which the
Full Value Award vests or expires, as determined by the Committee. Such dividend equivalents shall be converted to cash or additional
Shares by such formula and at such time and subject to such limitations as may be determined by the Committee; provided that
such dividend equivalents shall be subject to any performance or other vesting conditions that apply to the underlying Award. For the
avoidance of doubt, Participants (i) shall not accrue, be granted or be paid any dividends or dividend equivalents with respect
to Shares that are subject to any Option or Stock Appreciation Right and (ii) shall not be paid dividends or dividend equivalents
with respect to any Shares that are subject to any Full Value Award that has not vested.

 

    15

     

    

 

ARTICLE 15

Beneficiary Designation

 

Each Participant under this Plan may, from time
to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under this Plan is
to be paid in case of his death before he receives any or all of such benefit. Each such designation shall revoke all prior designations
by the same Participant, shall be in a form prescribed by the Committee, and will be effective only when filed by the Participant in
writing with the Company during the Participant’s lifetime. In the absence of any such beneficiary designation, benefits remaining
unpaid or rights remaining unexercised at the Participant’s death shall be paid to or exercised by the Participant’s executor,
administrator, or legal representative on behalf of the Participant’s estate.

 

ARTICLE 16

Rights of Participants

 

Section 16.01. Employment. (a) Nothing
in this Plan or an Award Agreement shall interfere with or limit in any way the right of the Company, its Affiliates, and/or its Subsidiaries
to terminate any Participant’s employment or service on the Board or to the Company at any time or for any reason not prohibited
by law, nor confer upon any Participant any right to continue his employment or service as a Director for any specified period of time.

 

(b)            Neither
an Award nor any benefits arising under this Plan shall constitute an employment contract with the Company, its Affiliates, and/or its
Subsidiaries and, accordingly, subject to Articles ‎3 and ‎18, this Plan and the benefits hereunder may be terminated at any
time in the sole and exclusive discretion of the Committee without giving rise to any liability on the part of the Company, its Affiliates,
and/or its Subsidiaries.

 

Section 16.02. Participation. No individual
shall have the right to be selected to receive an Award under this Plan, or, having been so selected, to be selected to receive a future
Award.

 

Section 16.03. Rights as a Shareholder.
Except as otherwise provided herein, a Participant shall have none of the rights of a shareholder with respect to Shares covered by any
Award until the Participant becomes the record holder of such Shares.

 

ARTICLE 17

Change of Control

 

Except as otherwise set forth in an Award Agreement,
upon a Participant’s involuntary termination of employment (including upon a termination of the Participant’s employment
by the Company (or a successor corporation or its parent) without “cause”, by a Participant for “good reason”
and/or due to a Participant’s death or “disability”, as such terms may be defined in the applicable Award Agreement
and/or a Participant’s Service Agreement, as the case may be) during the two-year period following the Change of Control, the Participant
will be entitled to one hundred percent (100%) vesting of the Participant’s Awards as if the Participant had remained employed
by the Company (or a successor corporation or its parent). Any Award that is subject to Performance Measures will vest based on actual
performance following the end of the Performance Period; provided that, if actual performance is not measurable following the
end of the Performance Period, then such Award shall vest based on target performance. Notwithstanding anything to the contrary contained
herein, if an Award is not continued, assumed, substituted or replaced by the Company or its parent (or a successor corporation or its
parent), such Award shall accelerate and vest and any restrictions thereon shall lapse and such Award shall be cancelled in consideration
of a payment, with the form, amount and timing of such payment determined by the Committee, in its sole discretion.

 

    16

     

    

 

ARTICLE 18

Amendment, Modification, Suspension, and Termination

 

Section 18.01. Amendment, Modification,
Suspension, and Termination. Subject to ‎Section 18.02, the Committee may, at any time and from time to time, alter, amend,
modify, suspend, or terminate this Plan and any Award Agreement in whole or in part; provided, however, that, without
the prior approval of the Company’s shareholders and except as provided in ‎Section 4.04, Options or SARs awarded under
this Plan will not be repriced, replaced, regranted through cancellation, or by lowering the Option Price of a previously granted Option
or the Grant Price of a previously granted SAR, or exchanged for a cash payment or other Awards (other than pursuant to ‎Article 17
or as otherwise provided in connection with a change of control of the Company) and no material amendment of this Plan shall be made
without shareholder approval if shareholder approval is required by law, regulation, or stock exchange rule, including, but not limited
to, the Exchange Act, the Code, and if applicable, the NYSE Listed Company Manual.

 

Section 18.02. Awards Previously Granted.
Notwithstanding any other provision of this Plan to the contrary (other than ‎Section 18.03), no termination, amendment, suspension,
or modification of this Plan or an Award Agreement shall materially adversely affect any Award previously granted under this Plan, without
the written consent of the Participant holding such Award.

 

Section 18.03. Amendment to Conform to
Law. Notwithstanding any other provision of this Plan to the contrary, the Board of Directors may amend the Plan or an Award Agreement,
to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming the Plan or an Award Agreement
to any present or future law relating to plans of this or similar nature (including, but not limited to, Code Section 409A), and
to the administrative regulations and rulings promulgated thereunder.

 

ARTICLE 19

Withholding

 

The Company shall have the power and the right
to deduct or withhold, or require a Participant to remit to the Company, the minimum statutory amount to satisfy federal, state, and
local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result
of this Plan. Participants may elect to satisfy the withholding requirements, in whole or in part, by having the Company withhold shares
having a Fair Market Value on the date the tax is to be determined equal to the minimum statutory total tax that could be imposed on
the transaction. The Participant shall remain responsible at all times for paying any federal, state, and local income or employment
tax due with respect to any Award, and the Company shall not be liable for any interest or penalty that a Participant incurs by failing
to make timely payments of tax.

 

    17

     

    

 

ARTICLE 20

Successors

 

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

 

ARTICLE 21

General Provisions

 

Section 21.01. Forfeiture Events.
(a) The Committee may specify in an Award Agreement that the Participant’s rights, payments, and benefits with respect to
an Award shall be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of certain specified events, in addition
to any otherwise applicable vesting or performance conditions of an Award. Such events may include, but shall not be limited to, termination
of employment for cause (as defined in the Award Agreement), termination of the Participant’s provision of services to the Company,
Affiliate, and/or Subsidiary, violation of material Company, Affiliate, and/or Subsidiary policies, breach of noncompetition, confidentiality,
or other restrictive covenants that may apply to the Participant, or other conduct by the Participant that is detrimental to the business
or reputation of the Company, its Affiliates, and/or its Subsidiaries.

 

(b)            If
the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct,
with any financial reporting requirement under the securities laws, if the Participant knowingly or with gross negligence engaged in
the misconduct, or knowingly or with gross negligence failed to prevent the misconduct, or if the Participant is one of the individuals
subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002, the Participant shall reimburse the Company
the amount of any payment in settlement of an Award earned or accrued during the 12-month period following the first public issuance
or filing with the United States Securities and Exchange Commission (whichever just occurred) of the financial document embodying such
financial reporting requirement.

 

(c)            The
Committee shall have full authority to implement any policies and procedures necessary or desirable to comply with Section 10D of
the Exchange Act and any rules promulgated thereunder.

 

(d)            All
Awards shall be subject to the Company’s compensation recoupment policy as such policy may be in effect from time to time.

 

Section 21.03. Legend. The certificates
or statements of holdings for Shares may include any legend which the Committee deems appropriate to reflect any restrictions on transfer
of such Shares.

 

    18

     

    

 

Section 21.04. Gender and Number.
Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine, the plural shall include
the singular, and the singular shall include the plural.

 

Section 21.05. Severability. In the
event any provision of this Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining
parts of this Plan, and this Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

 

Section 21.06. Requirements of Law.
The granting of Awards and the issuance of Shares under this Plan shall be subject to all applicable laws, rules, and regulations, and
to such approvals by any governmental agencies or national securities exchanges as may be required.

 

Section 21.07. Delivery of Title.
The Company shall have no obligation to issue or deliver evidence of title for Shares issued under this Plan prior to:

 

(a)            obtaining
any approvals from governmental agencies that the Company determines are necessary or advisable; and

 

(b)            completion
of any registration or other qualification of the Shares under any applicable national or foreign law or ruling of any governmental body
that the Company determines to be necessary or advisable.

 

Section 21.08. Inability to Obtain Authority.
The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s
counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect
of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.

 

Section 21.09. Investment Representations.
The Committee may require any individual receiving Shares pursuant to an Award under this Plan to represent and warrant in writing that
the individual is acquiring the Shares for investment and without any present intention to sell or distribute such Shares.

 

Section 21.10. Uncertificated Shares.
To the extent that this Plan provides for issuance of certificates to reflect the transfer or issuance of Shares, the transfer or issuance
of such Shares may be effected on a noncertificated basis, to the extent not prohibited by applicable law or the rules of any stock
exchange upon which the Shares are listed.

 

Section 21.11. Unfunded Plan. Participants
shall have no right, title, or interest whatsoever in or to any investments that the Company, and/or its Subsidiaries, and/or its Affiliates
may make to aid it in meeting its obligations under this Plan. Nothing contained in this Plan, and no action taken pursuant to its provisions,
shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any Participant, beneficiary,
legal representative, or any other individual. To the extent that any individual acquires a right to receive payments from the Company,
its Subsidiaries, and/or its Affiliates under this Plan, such right shall be no greater than the right of an unsecured general creditor
of the Company, a Subsidiary, or an Affiliate, as the case may be. All payments to be made hereunder shall be paid from the general funds
of the Company, a Subsidiary, or an Affiliate, as the case may be, and no special or separate fund shall be established and no segregation
of assets shall be made to assure payment of such amounts except as expressly set forth in this Plan.

 

    19

     

    

 

Section 21.12. No Fractional Shares.
No fractional Shares shall be issued or delivered pursuant to this Plan or any Award. The Committee shall determine whether cash, Awards,
or other property shall be granted or paid in lieu of fractional Shares or whether such fractional Shares or any rights thereto shall
be forfeited or otherwise eliminated.

 

Section 21.13. Retirement and Welfare
Plans. Neither Awards made under this Plan nor Shares or cash paid pursuant to such Awards, except pursuant to a Covered Employee’s
annual incentive award, may be included as “compensation” for purposes of computing the benefits payable to any Participant
under the Company’s or any Subsidiary’s or Affiliate’s retirement plans (both qualified and non-qualified) or welfare
benefit plans unless such other plan expressly provides that such compensation shall be taken into account in computing a Participant’s
benefit.

 

Section 21.14. Deferred Compensation.
With respect to Awards subject to Code Section 409A, the Plan is intended to comply with the requirements of Code Section 409A,
and the provisions of the Plan and any Award Agreement shall be interpreted in a manner that satisfies the requirements of Code Section 409A,
and the Plan shall be operated accordingly. The Committee may make changes in the terms or operation of the Plan and/or Awards (including
changes that may have retroactive effect) deemed necessary or desirable to comply with Code Section 409A. The Company, however,
makes no representation or covenants that the Plan or Awards will comply with Section 409A.

 

Section 21.15. Nonexclusivity of this
Plan. The adoption of this Plan shall not be construed as creating any limitations on the power of the Board or Committee to adopt
such other compensation arrangements as it may deem desirable for any Participant.

 

Section 21.16. No Constraint on Corporate
Action. Nothing in this Plan shall be construed to (a) limit, impair, or otherwise affect the Company’s or a Subsidiary’s
or an Affiliate’s right or power to make adjustments, reclassifications, reorganizations, or changes of its capital or business
structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer all or any part of its business or assets; or (b) limit
the right or power of the Company or a Subsidiary or an Affiliate to take any action which such entity deems to be necessary or appropriate.

 

Section 21.17. Governing Law. The
Plan and each Award Agreement shall be governed by the laws of the state of Missouri, excluding any conflicts or choice of law rule or
principle that might otherwise refer construction or interpretation of this Plan to the substantive law of another jurisdiction. Unless
otherwise provided in the Award Agreement, recipients of an Award under this Plan are deemed to submit to the exclusive jurisdiction
and venue of the federal or state courts of Missouri, to resolve any and all issues that may arise out of or relate to this Plan or any
related Award Agreement.

 

(a)            The
foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such individuals may be entitled
under the Company’s Articles of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have
to indemnify them or hold them harmless.

 

    20

     

    

 

Section 21.18. No Guarantee of Favorable
Tax Treatment. Although the Company intends to administer the Plan so that Awards will be exempt from, or will comply with, the requirements
of Code Section 409A, the Company does not warrant that any Award under the Plan will qualify for favorable tax treatment under
Code Section 409A or any other provision of federal, state, local, or foreign law. The Company shall not be liable to any Participant
for any tax, interest, or penalties that the Participant might owe as a result of the grant, holding, vesting, exercise, or payment of
any Award under the Plan.

 

Section 21.19. Effect of Disposition of
Facility or Operating Unit. In the event that the Company or any of its Affiliates and/or Subsidiaries closes or disposes of the
facility at which a Participant is located or the Company or any of its Affiliates and/or Subsidiaries diminish or eliminate ownership
interests in any operating unit of the Company or any of its Affiliates and/or Subsidiaries so that such operating unit ceases to be
majority owned by the Company or any of its Affiliates and/or Subsidiaries, then, with respect to Awards held by Participants who subsequent
to such event will not be Employees, the Committee may, to the extent consistent with Code Section 409A (if applicable), (i) accelerate
the exercisability of Awards to the extent not yet otherwise exercisable or remove any restrictions applicable to any Awards and (ii) extend
the period during which Awards will be exercisable to a date subsequent to the date when such Awards would otherwise have expired by
reason of the termination of such Participant’s employment with the Company or any of its Affiliates and/or Subsidiaries (but in
no event to a date later than the expiration date of the Awards or the fifth anniversary of the transaction in which such facility closes
or operating unit ceases). If the Committee takes no special action with respect to any disposition of a facility or an operating unit,
then the terms and conditions of the Award Agreement and the other terms and conditions of this Plan shall control.

 

    21Exhibit 4.6

 

EXHIBIT A-1

 

COMMON STOCK PURCHASE WARRANT

 

toughbuilt
industries, inc.

 

	Warrant Shares: ______	Initial Exercise Date: _______, 2022

 

THIS 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 date hereof (the “Initial Exercise Date”) and on or prior to 5:00 p.m. (New York City time) on
______1 (the “Termination Date”) but not thereafter, to subscribe for and purchase from ToughBuilt
Industries, Inc., a Nevada corporation (the “Company”), up to ____ shares (as subject to adjustment hereunder,
the “Warrant Shares”) of 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).

 

Section 1.         Definitions.
In addition to the terms defined elsewhere in this Warrant, the following terms have the meanings indicated in this Section 1:

 

“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.

 

“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 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 share of the 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 Warrants then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the
Company.

 

 

		1	Insert the date that is the ___ year anniversary of the Initial Exercise Date, provided that, if
such date is not a Trading Day, insert the immediately following Trading Day.

 

    	 	1	 

     

    

 

“Board
of Directors” means the board of directors of the Company.

 

“Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed; provided, however, for clarification, commercial banks shall not be deemed to
be authorized or required by law to remain closed due to “stay at home”, “shelter-in-place”, “non-essential
employee”  or any other similar orders or restrictions or the closure of any physical branch locations at the direction
of any governmental authority so long as the electronic funds transfer systems (including for wire transfers) of commercial banks
in The City of New York generally are open for use by customers on such day.

 

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

 

“Common
Stock” means the common stock of the Company, par value $0.0001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries 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.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“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.

 

“Purchase
Agreement” means the Securities Purchase Agreement, dated as of ____, 2022, between the Company and the purchasers signatory
thereto.

 

“Registration
Statement” means the Company’s registration statement on Form S-1 (File No. 333-_____).

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Subsidiary”
means any subsidiary of the Company and shall, where applicable, also include any direct or indirect subsidiary of the Company
formed or acquired after the date hereof.

 

“Trading
Day” means a day on which the Common Stock is traded on a Trading Market.

 

“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).

 

    	 	2	 

     

    

 

“Transfer
Agent” means VStock Transfer Company, Inc., the current transfer agent of the Company, with a mailing address of 18 Lafayette
Pl, Woodmere, New York 11598, and any successor transfer agent of 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 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 share of the 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 Warrants
then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

“Warrants”
means this Warrant and other Common Stock purchase warrants issued by the Company pursuant to the Registration Statement.

 

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 Initial Exercise 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 five (5) 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.

 

    	 	3	 

     

    

 

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

 

c)       Cashless
Exercise. If at the time of exercise hereof there is no effective registration statement registering, or the prospectus contained
therein is not available for the issuance of the Warrant Shares to the Holder, then this Warrant may also be exercised, in whole
or in part, at such time 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) 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. (“Bloomberg”) 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 registered characteristics of the Warrants being exercised. The Company agrees not to
take any position contrary to this Section 2(c).

 

    	 	4	 

     

    

 

Notwithstanding
anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise pursuant
to this Section 2(c).

 

		d)	Mechanics of Exercise.

 

		i.	Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased
hereunder to be transmitted by 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 Holder or (B) this Warrant is being exercised via cashless
exercise, 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 (A) the earlier of (A) the earlier of (i)
two (2) Trading Days and (ii) the number of days comprising the Standard Settlement Period, in each case 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
(such date, the “Warrant 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 by the Warrant Share Delivery Date. 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 third Trading Day after the Warrant Share Delivery Date) 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.

 

    	 	5	 

     

    

 

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 certificate, 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 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 shares of Common Stock 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.

 

    	 	6	 

     

    

 

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, 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. 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 stockholder books or records in any manner which prevents the timely exercise of this
Warrant, pursuant to the terms hereof.

 

    	 	7	 

     

    

 

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 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% (or, upon election by a Holder prior to the issuance of
any Warrants, 9.99%) of the number of shares of the 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 the 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.

 

    	 	8	 

     

    

 

Section 3.             Certain
Adjustments.

 

a)             Stock
Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable
in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of 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 stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification
of shares of the Common Stock any shares of capital stock 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 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 stockholders 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)             Subsequent
Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues
or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record
holders of any class of shares 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 shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights
(provided, however, that, 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 shares of 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).

 

c)             Pro
Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other
distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital
or otherwise (including, without limitation, any distribution of cash, stock 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 shares of Common Stock are to be determined for the participation in
such Distribution (provided, however, that, 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 shares of 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).

 

    	 	9	 

     

    

 

d)             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, (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 Common Stock or 50% or more of the voting power of the common equity of the Company or 50% or
more of the voting power of the common equity of the Company, (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 Common Stock is 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 or share purchase agreement or other business
combination (including, without limitation, a reorganization, recapitalization, spin-off, merger or scheme of arrangement) with
another Person or group of Persons whereby such other Person or group acquires 50% or more of the outstanding shares of Common
Stock or 50% or more of the voting power of the common equity of the Company (not including any shares of 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 or share purchase agreement or other business combination) (each a “Fundamental Transaction”) occurs or
is consummated, 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 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 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, the Holder shall only be entitled
to receive from the Company or any Successor Entity, as of the date of consummation of such Fundamental Transaction, 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, stock or any combination thereof, or whether the holders of 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-Scholes Option Pricing Model obtained from the “OV” function on Bloomberg determined
as of the day of consummation of the applicable contemplated 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 greater of 100% and
the 100 day volatility obtained from the HVT function on Bloomberg (determined utilizing a 365-day annualization factor) 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 highest VWAP during
the period beginning on the Trading Day immediately preceding the public announcement of the applicable contemplated Fundamental
Transaction (or the consummation of the applicable Fundamental Transaction, if earlier) and ending on the Trading Day of the Holder’s
request pursuant to this Section 3(d) and (D) a remaining option time equal to the time between the date of the public announcement
of the applicable contemplated Fundamental Transaction and the Termination Date and (E) a zero cost of borrow. The payment of the
Black Scholes Value will be made by wire transfer of immediately available funds (or such other consideration) within five (5)
Trading Days of the Holder’s election (or, if later, on the effective date of the consummation 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 in accordance with the provisions
of this Section 3(d) 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 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 shares of capital stock 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 shares of capital stock (but taking into account the relative value of
the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number
of shares of capital stock 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 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 with the same effect as if such Successor Entity had been named as the Company herein.

 

    	 	10	 

     

    

 

e)             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.

 

f)             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 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.

 

    	 	11	 

     

    

 

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 shares
of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection
with any reclassification of the Common Stock, any consolidation or merger to which the Company (or any of its Subsidiaries) is
a party, any sale or transfer of all or substantially all of its assets, 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 of the Company, then, in each case, the Company shall cause to be delivered by email to
the Holder at its last 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 shares of the 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.

 

g)             Voluntary
Adjustment By Company. Subject to the rules and regulations of the Trading Market, the Company may at any time during the term
of this Warrant reduce the then current Exercise Price to any amount and for
any period of time deemed appropriate by the board of directors of the Company.

 

    	 	12	 

     

    

 

Section 4.         Transfer
of Warrant.

 

a)       Transferability.
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 three (3) 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.

 

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 initial
issuance 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.

 

Section 5.         Miscellaneous.

 

a)       No
Rights as Stockholder Until Exercise; No Settlement in Cash. This Warrant does not entitle the Holder to any voting rights,
dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except
as expressly set forth in Section 3. Without limiting the rights of a Holder to receive Warrant Shares on a “cashless exercise,”
and to receive the cash payments contemplated pursuant to Sections 2(d)(i) and 2(d)(iv), in no event will the Company be required
to net cash settle an exercise of this Warrant.

 

    	 	13	 

     

    

 

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 stock 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 stock certificate,
if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation,
in lieu of such Warrant or stock 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 Trading Day, then such action may be taken or such right may be exercised on the next succeeding
Trading Day.

 

d)       Authorized
Shares.

 

The Company covenants
that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued 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
certificate 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.

 

    	 	14	 

     

    

 

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)       Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed
by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of
conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense
of the transactions contemplated by this Warrant (whether brought against a party hereto or their respective affiliates, directors,
officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts
sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or
with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit,
action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service
of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered
or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Warrant and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If either party shall
commence an action, suit or proceeding to enforce any provisions of this Warrant, the prevailing party in such action, suit or
proceeding shall be reimbursed by the other party for their reasonable attorneys’ fees and other costs and expenses incurred
with the investigation, preparation and prosecution of such action or proceeding.

 

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. Without limiting any other provision
of this Warrant, 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.

 

    	 	15	 

     

    

 

h)       Notices.
Any and all notices or other communications or deliveries to be provided by the Holders hereunder including, without limitation,
any Notice of Exercise, shall be in writing and delivered personally, by e-mail, or sent by a nationally recognized overnight courier
service, addressed to the Company, at 25371 Commercentre Drive, Suite 200, Lake Forest, California 92630, Attention: Martin Galstyan,
CFO, email address: martin.g@toughbuilt.com, or such other email address or address as the Company may specify for such purposes
by notice to the Holders. Any and all notices or other communications or deliveries to be provided by the Company hereunder shall
be in writing and delivered personally, by e-mail, or sent by a nationally recognized overnight courier service addressed to each
Holder at the e-mail address or address of such Holder appearing on the books of the Company. Any notice or other communication
or deliveries hereunder shall be deemed given and effective on the earliest of (i) the time of transmission, if such notice or
communication is delivered via e-mail at the e-mail address set forth in this Section prior to 5:30 p.m. (New York City time) on
any date, (ii) the next Trading Day after the time of transmission, if such notice or communication is delivered via e-mail at
the e-mail address set forth in this Section on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on
any Trading Day, (iii) the second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier
service, or (iv) upon actual receipt by the party to whom such notice is required to be given. To the extent that any notice provided
hereunder constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries, the Company shall
simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.

 

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 stockholder 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.

 

    	 	16	 

     

    

 

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

 

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 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)

 

    	 	17	 

     

    

 

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.

 

	 	toughbuilt industries, inc.	 
	 	 	 	 
	 	By:	 	 
	 	 	Name:	 
	 	 	Title:	 

 

    	 	18	 

     

    

 

NOTICE OF EXERCISE

 

To:         toughbuilt
industries, 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

 

[ ] if permitted,
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:

 

	 	 	 

 

	 	 	 

 

	 	 	 

 

[SIGNATURE
OF HOLDER]

 

Name of Investing Entity: ___________________________________________________________________________

Signature of Authorized Signatory of Investing
Entity: _____________________________________________________

Name of Authorized Signatory: _______________________________________________________________________

Title of Authorized Signatory: ________________________________________________________________________

Date: ___________________________________________________________________________________________

 

    	 	 	 

     

    

 

ASSIGNMENT FORM

 

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

 

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

 

	Name:	 
	 	(Please Print)
	 	 
	Address:	 
	 	(Please Print)
	 	 
	Phone Number:	 
	 	 
	Email Address: 	 

 

	Dated: _________________, ______	 
	Holder’s Signature:                                  	 
	Holder’s Address:

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