Exhibit
10.2


 


[_______], 2021


 


Enterprise 4.0 Technology Acquisition Corp.


533 Airport Blvd Suite 400


Burlingame, CA 94010 


 


Re: Initial Public Offering


 


Ladies and Gentlemen:


 


This letter (this “Letter
Agreement”) is being delivered to you in accordance with the Underwriting Agreement (the “Underwriting Agreement”)
to be entered into by and among Enterprise 4.0 Technology Acquisition Corp., a Cayman Islands exempted company (the “Company”),
and Cantor Fitzgerald & Co. and Mizuho Securities USA LLC, as representatives (the “Representatives”) of
the several underwriters (each, an “Underwriter” and collectively, the “Underwriters”),
relating to an underwritten initial public offering (the “Public Offering”), of up to 28,750,000 of the Company’s
units (including up to 3,750,000 units that may be purchased to cover over-allotments, if any) (the “Units”),
each comprised of one Class A ordinary share of the Company, par value $0.0001 per share (the “Ordinary Shares”),
and one-half of one warrant. Each whole Warrant (each, a “Warrant”) entitles the holder thereof to purchase
one Ordinary Share. The Units shall be sold in the Public Offering pursuant to a registration statement on Form S-1 (File
No. 333-259773) and prospectus (the “Prospectus”) filed by the Company with the Securities and Exchange Commission
(the “Commission”) and the Company shall apply to have the Units listed on the Nasdaq Global Market. Certain
capitalized terms used herein are defined in Section 11 hereof.


 


In order to induce the Company
and the Underwriters to enter into the Underwriting Agreement and to proceed with the Public Offering and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, ENT4.0 Technology Sponsor LLC (the “Sponsor”)
and the undersigned individuals, each of whom is a member of the Company’s board of directors and/or management team, hereby agree
with the Company as follows:


 


1. The Sponsor and each
Insider agrees that (A) if the Company seeks shareholder approval of a proposed Business Combination, then in connection with such proposed
Business Combination, it, he or she shall (i) vote any Shares owned by it, him or her in favor of any proposed Business Combination
and (ii) not redeem any Shares owned by it, him or her in connection with such shareholder approval, (B) if the Company engages in
a tender offer in connection with any proposed Business Combination, it, he or she shall not sell any Shares to the Company in connection
therewith and (C) if the Company seeks shareholder approval of any proposed amendment to the Charter prior to the completion of a Business
Combination, it, he or she shall not redeem any Shares owned by it, him or her in connection with such shareholder approval.


 


2. The Sponsor and each Insider
hereby agrees that in the event that the Company fails to complete a Business Combination within the time period set forth in the Charter,
the Sponsor and each Insider shall take all reasonable steps to cause the Company to (i) cease all operations except for the purpose
of winding up, (ii) as promptly as reasonably possible but not more than 10 business days thereafter, subject to lawfully available
funds therefor, redeem 100% of the Ordinary Shares sold as part of the Units in the Public Offering (the “Offering Shares”),
at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest
earned on the funds held in the Trust Account and not previously released to the Company to pay any taxes (less up to $100,000 of interest
to pay winding up and dissolution expenses), divided by the number of then outstanding Offering Shares, which redemption will completely
extinguish all Public Shareholders’ rights as shareholders (including the right to receive further liquidation distributions, if
any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval
of the Company’s remaining shareholders and the Company’s board of directors, dissolve and liquidate, subject in the case
of clauses (ii) and (iii) above to the Company’s obligations under Cayman Islands law to provide for claims of creditors and other
requirements of applicable law. The Sponsor and each Insider agrees to not propose any amendment to the Charter (i) that would affect
the substance or timing of the Company’s obligation to provide holders of the Offering Shares the right to have their Offering Shares
redeemed in connection with the Business Combination or redeem 100% of the Offering Shares if the Company does not complete a Business
Combination within the time period described in the Prospectus or (ii) with respect to any other provision relating to shareholders’
rights or pre-Business Combination activity, unless the Company provides its public shareholders with the opportunity to redeem their
Ordinary Shares upon approval of any such amendment at a per-share price, payable in cash, equal to the aggregate amount then
on deposit in the Trust Account, including interest earned on the funds held in the Trust Account and not previously released to the Company
to pay any taxes, divided by the number of then outstanding Offering Shares.


 






     


     


    

 


The Sponsor and each Insider
acknowledges that it, he or she has no right, title, interest or claim of any kind in or to any monies held in the Trust Account or any
other asset of the Company as a result of any liquidation of the Company with respect to the Founder Shares held by it, him or her. The
Sponsor and each Insider hereby further waives any claim such Sponsor or Insider may have in the future as a result of, or arising out
of, any contracts or agreements with the Company and will not seek recourse against the Trust Fund for any reason whatsoever except in
each case with respect to the Sponsor’s or the Insider’s right to a pro rata interest in the proceeds held in the Trust Fund
for any Offering Shares such Sponsor or Insider may hold.


 


3. During the period
commencing on the effective date of the Underwriting Agreement and ending 180 days after such date, the Sponsor and each Insider shall
not, without the prior written consent of the Representatives, (i) sell, offer to sell, contract or agree to sell, hypothecate, pledge,
grant any option to purchase or otherwise dispose of or agree to dispose of, directly or indirectly, or establish or increase a put equivalent
position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Securities Exchange Act of 1934,
as amended, and the rules and regulations of the Commission promulgated thereunder, with respect to any Units, Ordinary Shares, Founder
Shares, Warrants or any securities convertible into, or exercisable, or exchangeable for, Ordinary Shares owned by it, him or her, (ii) enter
into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any
Units, Ordinary Shares, Founder Shares, Warrants or any securities convertible into, or exercisable, or exchangeable for, Ordinary Shares
owned by it, him or her, whether any such transaction is to be settled by delivery of such securities, in cash or otherwise, or (iii) publicly
announce any intention to effect any transaction specified in clause (i) or (ii). Each of the Insiders and the Sponsor acknowledges
and agrees that, prior to the effective date of any release or waiver of the restrictions set forth in this Section 3, the Company shall
announce the impending release or waiver by press release through a major news service at least two business days before the effective
date of the release or waiver. Any release or waiver granted shall only be effective two business days after the publication date of such
press release. The provisions of this Section will not apply if the release or waiver is effected solely to permit a transfer not for
consideration and the transferee has agreed in writing to be bound by the same terms described in this Letter Agreement to the extent
and for the duration that such terms remain in effect at the time of the transfer.


 


4. In the event of the
liquidation of the Trust Account, the Sponsor (which for purposes of clarification shall not extend to any other shareholders, members
or managers of the Sponsor) agrees to indemnify and hold harmless the Company against any and all loss, liability, claim, damage and expense
whatsoever (including, but not limited to, any and all legal or other expenses reasonably incurred in investigating, preparing or defending
against any litigation, whether pending or threatened, or any claim whatsoever) to which the Company may become subject as a result of
any claim by (i) any third party for services rendered or products sold to the Company or (ii) a prospective target business
with which the Company has entered into a letter of intent, confidentiality or other similar agreement or a Business Combination agreement
(a “Target”); provided, however, that such indemnification of the Company by the Sponsor
shall apply only to the extent necessary to ensure that such claims by a third party for services rendered or products sold to the Company
or a Target do not reduce the amount of funds in the Trust Account to below (i) $10.20 per share of the Offering Shares or (ii) such
lesser amount per share of the Offering Shares held in the Trust Account due to reductions in the value of the trust assets as of the
date of the liquidation of the Trust Account, in each case, net of the amount of interest earned on the property in the Trust Account
which may be withdrawn to pay taxes, except as to any claims by a third party (including a Target) who executed a waiver of any and all
rights to seek access to the Trust Account and except as to any claims under the Company’s indemnity of the Underwriters against
certain liabilities, including liabilities under the Securities Act of 1933, as amended. In the event that any such executed waiver is
deemed to be unenforceable against such third party, the Sponsor shall not be responsible to the extent of any liability for such third
party claims. The Sponsor shall have the right to defend against any such claim with counsel of its choice reasonably satisfactory to
the Company.


 


5. To the extent that
the Underwriters do not exercise their over-allotment option to purchase up to an additional 3,750,000 Units within 45 days from the date
of the Prospectus (and as further described in the Prospectus), the Sponsor agrees to surrender, at no cost, a number of Founder Shares
in the aggregate equal to 937,500 multiplied by a fraction, (i) the numerator of which is 3,750,000 minus the number of Units purchased
by the Underwriters upon the exercise of their over-allotment option, and (ii) the denominator of which is 3,750,000.


 






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6. The Sponsor and each
Insider hereby agrees and acknowledges that: (i) the Underwriters and the Company would be irreparably injured in the event of a
breach by such Sponsor or an Insider of its, his or her obligations under Sections 1, 2, 3, 4, 5, 7(a), 7(b), and 9, as applicable, of
this Letter Agreement (ii) monetary damages may not be an adequate remedy for such breach and (iii) the non-breaching party
shall be entitled to injunctive relief, in addition to any other remedy that such party may have in law or in equity, in the event of
such breach.


 


7. (a) Subject to
Section 7(c), the Sponsor and each Insider agrees that it, he or she shall not Transfer any Founder Shares (or Ordinary Shares issuable
upon conversion thereof) until the earlier of (A) one year after the completion of the Company’s initial Business Combination or
(B) subsequent to the Business Combination, (x) if the last sale price of the Ordinary Shares equals or exceeds $12.00 per share (as adjusted
for share splits, share capitalizations, rights issuances, subdivisions, reorganizations, recapitalizations and the like) for any 20 trading
days within any 30-trading day period commencing at least 150 days after the Company’s initial Business Combination or (y) the date
on which the Company completes a liquidation, merger, share exchange, reorganization or other similar transaction that results in all
of the Company’s shareholders having the right to exchange their Ordinary Shares for cash, securities or other property (the “Founder
Shares Lock-up Period”).


 


(b) Subject to Section
7(c), the Sponsor and each Insider agrees that it, he or she shall not Transfer any Placement Units, Sponsor Loan Units, Placement Shares,
Sponsor Loan Shares, Placement Warrants (or Ordinary Shares issued or issuable upon the conversion or exercise of Placement Warrants),
Sponsor Loan Warrants (or Ordinary Shares issued or issuable upon the conversion or exercise of Sponsor Placement Warrants) until 30 days
after the completion of a Business Combination (the “Placement Unit Lock-up Period”, together with
the Founder Shares Lock-up Period, the “Lock-up Periods”).


 


(c) Notwithstanding
the provisions set forth in Sections 7(a) and (b), Transfers of the Founder Shares, Placement Units, Sponsor Loan Units, Placement
Shares, Placement Warrants, Sponsor Loan Warrants and Ordinary Shares issued or issuable upon the exercise or conversion of Placement
Warrants or Sponsor Loan Warrants or the Founder Shares and that are held by the Sponsor, any Insider or any of their permitted transferees
(that have complied with this Section 7(c)), are permitted (1) (a) to the Company’s officers and directors, the Initial Holders,
and other Insiders, (b) to an affiliate or immediate family member of any of the Company’s officers, directors, Initial Holders
and other Insiders, (c) to any member, officer or director of the Sponsor, or any immediate family member, partner, affiliate or
employee of a member of the Sponsor, (d) by gift to any permitted transferee under any of the immediately preceding subsections (a) through
(c), a trust, the beneficiaries of which are one or more permitted transferees under any of the immediately preceding subsections (a) through
(c), or a charitable organization, (e) by virtue of laws of descent and distribution upon death of any of the Company’s officers,
directors, Initial Holders or members of the Sponsor, (f) pursuant to a qualified domestic relations order, (g) in the event
of the Company’s liquidation prior to completion of the initial Business Combination, (h) by virtue of the laws of the Cayman
Islands or the Sponsors’ limited liability company agreements upon dissolution of either Sponsor, (i) subsequent to the initial
Business Combination, upon and in connection with a liquidation, merger, share exchange or other similar transaction which results in
all of the Company’s shareholders having the right to exchange their Ordinary Shares for cash, securities or other property, (j) subsequent
to the initial Business Combination, in the event of a consolidation merger, share exchange or similar transaction in which the Company
is the surviving entity that results in a change in the majority of its board of directors or management team and (k) through private
sales or transfers made in connection with any forward purchase agreement or similar arrangement or in connection with the completion
of the initial Business Combination at prices no greater than the price at which the Founder Shares, Placement Shares, Sponsor Loan Shares
or Warrants were originally purchased; provided, however, that in the case of clauses (a) through (f), (h) and (k) these
permitted transferees must enter into a written agreement agreeing to be bound by these transfer restrictions, and (2) in connection with
an initial Business Combination with the consent of the Company to any third party that agrees in writing to be bound by the provisions
of this Letter Agreement applicable to Insiders (other than paragraph 1). For the avoidance of doubt, for the purposes of this Letter
Agreement, a managed account managed by the same investment manager of any member of the Sponsor shall be deemed an affiliate of such
member.


 






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(d) Subject to the limitations
described herein, each Insider shall retain all of such Insider’s rights as a security holder during, as applicable, the Lock-Up
Periods including, without limitation, the right to vote, as the case may be, the Founder Shares and/or Placement Shares or Sponsor Loan
Shares.


 


8. The Sponsor and each
Insider represents and warrants that it, he or she has never been suspended or expelled from membership in any securities or commodities
exchange or association or had a securities or commodities license or registration denied, suspended or revoked. Each Insider’s
biographical information furnished to the Company (including any such information included in the Prospectus) is true and accurate in
all respects and does not omit any material information with respect to the Insider’s background. Each Insider’s questionnaire
furnished to the Company is true and accurate in all respects. Each Insider represents and warrants that: it, he or she is not subject
to or a respondent in any legal action for, any injunction, cease-and-desist order or order or stipulation to desist or refrain from
any act or practice relating to the offering of securities in any jurisdiction; it, he or she has never been convicted of, or pleaded
guilty to, any crime (i) involving fraud, (ii) relating to any financial transaction or handling of funds of another person,
or (iii) pertaining to any dealings in any securities and it, he or she is not currently a defendant in any such criminal proceeding.


 


9. Except as disclosed
in the Prospectus, neither the Sponsor nor any Insider nor any affiliate of the Sponsor or any Insider, nor any director or officer of
the Company, shall receive from the Company any finder’s fee, reimbursement or cash payments prior to, or in connection with any
services rendered in order to effectuate the completion of the Company’s initial Business Combination (regardless of the type of
transaction that it is), other than the amounts described in the Prospectus under the heading “Summary – The Offering –
Limited Payments to Insiders.”


 


10. The Sponsor and each
Insider has full right and power, without violating any agreement to which it is bound (including, without limitation, any non-competition or non-solicitation agreement
with any employer or former employer), to enter into this Letter Agreement and, as applicable, to serve as an officer and/or director
on the board of directors of the Company and hereby consents to being named in the Prospectus as an officer and/or director of the Company.


 


11. As used herein, (i) “Business
Combination” shall mean a merger, share exchange, asset acquisition, stock purchase, reorganization or similar business
combination, involving the Company and one or more businesses; (ii) “Shares” shall mean, collectively,
the Ordinary Shares, Placement Shares, Sponsor Loan Shares and the Founder Shares; (iii) “Founder Shares”
shall mean (a) the 7,187,500 Class B ordinary shares of the Company, par value $0.0001 per share, initially issued to the Sponsor
(up to 937,500 Shares of which are subject to complete or partial surrender by the Sponsor if the over-allotment option is not exercised
by the Underwriters) for an aggregate purchase price of $25,000, or approximately $0.003 per share, prior to the completion of the Public
Offering; (iv) “Initial Holders” shall mean the Sponsor and any Insider that holds Founder Shares; (v) “Insiders”
shall mean the Sponsor and its members, any holders of Founder Shares, any person who receives Placement Units, Founder Shares or their
respective underlying securities as a Permitted Transferee and each officer and director of the Company; (vi) “Placement Shares”
shall mean the Ordinary Shares sold as part of the Placement Units; (vii) “Placement Warrants” shall mean the
Warrants to purchase up to an aggregate of 350,000 Ordinary Shares that are included in the Placement Units; (viii) “Placement
Units” shall mean the aggregate of up to 700,000 Units of the Company (each Placement Unit consists of one-half of a Placement
Warrant and one Placement Share) sold in the Private Placement to the Sponsor for an aggregate purchase price of up to $7,000,000; (ix)
“Private Placement” shall mean that certain private placement transaction occurring simultaneously with the
closing of the Public Offering pursuant to which the Company has agreed to sell an aggregate of up to 700,000 Placement Units to the Sponsor;
(x) “Public Shareholders” shall mean the holders of securities issued in the Public Offering; (xi) “Sponsor
Loan” shall mean the loan the Sponsor will be making to the Company simultaneously with the Public Offering; (xii) “Sponsor
Loan Shares” shall mean the shares underlying the Sponsor Loan Units; (xiii) “Sponsor Loan Units”
shall mean an aggregate of up to 575,000 Units of the Company (each Sponsor Loan Unit consists of one-half of a Sponsor Loan Warrant and
one Sponsor Loan Share) that may be issued to the Sponsor upon conversion of the Sponsor Loan; (xii) “Sponsor Loan Warrants”
shall mean the Warrants to purchase an aggregate of up to 287,500 Ordinary Shares that are included in the Sponsor Loan Units; (xiv) “Trust
Account” shall mean the trust fund into which a portion of the net proceeds of the Public Offering shall be deposited; (xv) “Transfer”
shall mean the (a) sale of, offer to sell, contract or agreement to sell, hypothecate, pledge, grant of any option to purchase or
otherwise dispose of or agreement to dispose of, directly or indirectly, or establishment or increase of a put equivalent position or
liquidation with respect to or decrease of a call equivalent position within the meaning of Section 16 of the Securities Exchange
Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder with respect to, any security, (b) entry
into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any
security, whether any such transaction is to be settled by delivery of such securities, in cash or otherwise, or (c) public announcement
of any intention to effect any transaction specified in clause (a) or (b); and (xvi) “Charter” shall
mean the Company’s memorandum and articles of association, as the same may be amended from time to time.


 






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12. This Letter Agreement
constitutes the entire agreement and understanding of the parties hereto in respect of the subject matter hereof and supersedes all prior
understandings, agreements, or representations by or among the parties hereto, written or oral, to the extent they relate in any way to
the subject matter hereof or the transactions contemplated hereby. This Letter Agreement may not be changed, amended, modified or waived
(other than to correct a typographical error) as to any particular provision, except by a written instrument executed by all parties hereto.


 


13. No party hereto may
assign either this Letter Agreement or any of its rights, interests, or obligations hereunder without the prior written consent of the
other party. Any purported assignment in violation of this Section shall be void and ineffectual and shall not operate to transfer or
assign any interest or title to the purported assignee. This Letter Agreement shall be binding on the Sponsor and each Insider and their
respective successors, heirs and assigns and permitted transferees.


 


14. Nothing in this Letter
Agreement shall be construed to confer upon, or give to, any person or corporation other than the parties hereto any right, remedy or
claim under or by reason of this Letter Agreement or of any covenant, condition, stipulation, promise or agreement hereof. All covenants,
conditions, stipulations, promises and agreements contained in this Letter Agreement shall be for the sole and exclusive benefit of the
parties hereto and their successors, heirs, personal representatives and assigns and permitted transferees.


 


15. This Letter Agreement
may be executed in any number of original or facsimile counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and all such counterparts shall together constitute but one and the same instrument.


 


16. This Letter Agreement
shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability
of this Letter Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision,
the parties hereto intend that there shall be added as a part of this Letter Agreement a provision as similar in terms to such invalid
or unenforceable provision as may be possible and be valid and enforceable.


 


17. This Letter Agreement
shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect to conflicts
of law principles that would result in the application of the substantive laws of another jurisdiction. The parties hereto (i) all
agree that any action, proceeding, claim or dispute arising out of, or relating in any way to, this Letter Agreement shall be brought
and enforced in the courts of New York City, in the State of New York, and irrevocably submit to such jurisdiction and venue, which jurisdiction
and venue shall be exclusive and (ii) waive any objection to such exclusive jurisdiction and venue or that such courts represent
an inconvenient forum.


 


18. Any notice, consent
or request to be given in connection with any of the terms or provisions of this Letter Agreement shall be in writing and shall be sent
by express mail or similar private courier service, by certified mail (return receipt requested), by hand delivery or facsimile transmission.


 


19. This Letter Agreement
shall terminate on the earlier of (i) the expiration of the Lock-up Periods or (ii) the liquidation of the Company;
provided, however, that this Letter Agreement shall earlier terminate in the event that the Public Offering is not completed and closed
by June 30, 2022; provided further that Section 4 of this Letter Agreement shall survive such liquidation.


 


[Signature Page Follows]


 






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	 	Sincerely,
	 	 
	 	Enterprise 4.0 Technology Acquisition Corp.
	 	 	 
	 	By:	 
	 	Name:  	Eric Benhamou
	 	Title:	Chief Executive Officer
	 	 	 
	 	 
	 	Name: 	Christopher Paisley
	 	 	 
	 	 
	 	Name: 	Ron Sege
	 	 	 
	 	 
	 	Name: 	Yashwanth Hemaraj
	 	 	 
	 	 
	 	Name: 	Kim Le
	 	 	 
	 	 
	 	Name: 	Sudhakar Ramakrishna
	 	 	 
	 	 
	 	Name: 	Mona Sabet
	 	 	 
	 	 
	 	Name: 	Judith Sim
	 	 	 
	 	 
	 	Name: 	Alex Vieux
	 	 	 
	 	 
	 	Name: 	Steven Fletcher
	 	 	 
	 	ENT4.0 Technology Sponsor LLC
	 	 
	 	By:	 
	 	Name:	Steven Fletcher
	 	Title: 	Managing Member



 


[Signature Page to Letter Agreement]


 


 


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