SEC Contract Filing

Filing Date: 2024-04-08

Document Content:
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>4
<FILENAME>ex_10-3.htm
<DESCRIPTION>STANDSTILL AGREEMENT DATED MARCH 25, 2024 - DISTRICT 2 CAPITAL FUND LP
<TEXT>
<HTML>
<HEAD>
<TITLE>Standstill Agreement dated March 25, 2024 - District 2 Capital Fund LP</TITLE>
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<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Exhibit 10.3</B></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 9.5pt Times New Roman, Times, Serif; margin: 0; text-align: center">STANDSTILL AGREEMENT</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This Standstill Agreement (this
&ldquo;Agreement&rdquo;) is entered into as of March 25, 2024, by and between District 2 Capital Fund LP, a Delaware limited partnership
(&ldquo;Lender&rdquo;), and Auto Parts 4Less Group, Inc., a Nevada corporation (&ldquo;Borrower&rdquo;).</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U>RECITALS</U></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0 0.5in; text-align: justify"><B>WHEREAS, </B>Borrower has, over the past
several months, been attempting to reorganize its balance sheet, in an effort to attract needed new capital investment; and</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0 0.5in; text-align: justify"><B>WHEREAS, </B>Borrower has achieved significant
progress in its balance sheet reorganization efforts and, as a result thereof, has been able to secure the commitment of an investor,
contingent upon Lender&rsquo;s entering into this Agreement; and</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0 0.5in; text-align: justify"><B>WHEREAS, </B>Lender is the holder of a total
of a substantial amount of debt of Borrower embodied by the promissory notes described in <U>Exhibit A</U> attached hereto and made a
part hereof (the &ldquo;Subject Debt&rdquo;); and</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0 0.5in; text-align: justify"><B>WHEREAS, </B>Borrower has requested that
Lender delay its right to convert any of the promissory notes comprising the Subject Debt into shares of Borrower&rsquo;s common stock
(the &ldquo;Standstill&rdquo;); and</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0 0.5in; text-align: justify"><B>WHEREAS, </B>Lender has agreed, subject
to the terms, amendments, conditions and understandings expressed in this Agreement, to grant the Standstill.</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>NOW, THEREFORE, </B>for good
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recitals.
</B>Lender and Borrower each acknowledge and agree that the recitals set forth above in this Agreement are true and accurate and are hereby
incorporated into, and made a part of, this Agreement.</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Standstill.
</B>Notwithstanding the terms of the promissory notes comprising the Subject Debt, Lender hereby agrees that its right to convert all
or any portion of the promissory notes comprising the Subject Debt shall be suspended on the date of this Agreement and shall terminate
on December 31, 2024 (the &ldquo;Standstill Period&rdquo;); <I>provided, however</I>, that, should Borrow fail to obtain $350,000 in new
capital, in the form of debt, equity or a combination thereof (the &ldquo;New Capital Amount&rdquo;), on or before the date that is 60
days from the date of this Agreement, then the Standstill Period shall terminate, this Agreement shall terminate and the parties shall
be returned to their statuses quo ante.</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Standstill
Consideration. </B>In consideration of Lender&rsquo;s entering into this Agreement and agreeing to the Standstill, Borrow undertakes and
agrees to seek to obtain the New Capital Amount and to pursue an uplisting of its common stock onto either the NASDAQ or NYSE stock exchanges,
with all diligence and in good faith.</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9.5pt Time