Document:

Exhibit
10.15

 

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”). THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE UNITED
STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (C) IN COMPLIANCE WITH RULE 144 OR 144A THEREUNDER, IF AVAILABLE,
AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, (D) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT, OR (E) IN A TRANSACTION
THAT DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, AND THE HOLDER HAS, PRIOR TO SUCH
SALE, FURNISHED TO THE COMPANY AN OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE COMPANY.
HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.

 

5%
UNSECURED CONVERTIBLE PROMISSORY NOTE

 

PUREBASE
CORPORATION

 

DUE:
November 25, 2022

 

This
Unsecured Convertible Promissory Note (the “Note”) is a duly authorized and issued convertible promissory note (the
“Note”) of PUREBASE CORPORATION, a Nevada corporation (the “Company”). The Note has been issued
in accordance with exemptions from registration under the Securities Act of 1933, as amended (the “Securities Act”),
pursuant to a Securities Purchase Agreement, dated September 26, 2019 (the “Purchase Agreement”), between the Company
and the Holder (as defined below). Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Purchase
Agreement.

 

Article
I.

 

Section
1.01 Principal and Interest. FOR VALUE RECEIVED, the Company hereby promises to pay to the order of U.S. Mine Corp.,
a Nevada corporation (together with its permitted assigns, the “Holder”), in lawful money of the United States of
America and in immediately available funds the principal sum of Eight Hundred Twenty-Two Thousand and 00/100 Dollars (US$822,000.00)
on November 25, 2022 (the “Maturity Date”).

 

The
Company further promises to pay interest in cash on the unpaid principal amount of this Note at a rate per annum equal to five percent
(5%), commencing to accrue on the date hereof and payable on the Maturity Date or earlier prepayment as provided herein. Interest will
be computed on the basis of a 360- day year of twelve 30-day months for the actual number of days elapsed.

 

    	 

     

    

 

Section
1.02 Conversion. At any time, the Holder may, in its sole discretion, determine to convert (each, a “Conversion”)
all or part of the outstanding principal amount of this Note, together with accrued and unpaid interest due thereon, into shares of common
stock (“Common Stock”) of the Company, par value $0.001 per share (the “Conversion Shares”) at a conversion price
of $0.16 per share (the “Conversion Price”). The Company shall not issue any fraction of a Conversion Share
upon any such conversion. If the issuance would result in the issuance of a fraction of a Conversion Share, the Company shall round such
fraction of a Conversion Share up to the nearest whole Conversion Share. The number of Conversion Shares issuable upon a Conversion shall
be determined by the quotient obtained by dividing (i) the outstanding principal amount of this Note being converted plus accrued but
unpaid interest thereon on the conversion date for the Conversion by (ii) the Conversion Price. The calculation by the Company of the
number of Conversion Shares to be received by the Holder upon conversion hereof, shall be conclusive absent manifest error. To convert
any portion of the unpaid principal of this Note into Conversion Shares on any date (an “Conversion Date”), the Holder
shall (i) transmit by facsimile (or otherwise deliver), for receipt on or prior to 12:00 noon., New York time, on such date, a copy of
an executed notice of conversion in the form attached hereto as Exhibit A (the “ Conversion Notice”) to the
Company and (ii) return this Note to the Company via a nationally recognized overnight delivery service (or provide an indemnification
undertaking with respect to this Note in the case of its loss, theft or destruction). On or before the fifth trading day for the Company’s
Common Stock following the date of receipt of an Conversion Notice, the Company shall cause the Company’s transfer agent to issue
and deliver to the Holder at the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder,
for the number of Conversion Shares to which the Holder shall be entitled. If the outstanding principal amount of this Note is greater
than the principal portion being converted, then the Company shall as soon as practicable after receipt of this Note, at its own expense,
issue and deliver to the Holder a new Note representing the outstanding principal amount not converted. Such new Note (i) shall be of
like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the principal amount remaining outstanding,
(iii) shall have an issuance date, as indicated on the face of such new Note, which is the same as the date of this Note, and (iv) shall
have the same rights and conditions as this Note.

 

Section
1.01 Absolute Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation of
the Company, which is absolute and unconditional, to pay the principal of, and liquidated damages (if any) on, this Note at the time,
place, and rate, and in the coin or currency, herein prescribed. This Note is a direct debt obligation of the Company.

 

Section
1.02 Different Denominations. This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized
denominations, as requested by the Holder surrendering the same.

 

Section
1.03 Reliance on Note Register. Prior to due presentment to the Company for permitted transfer or conversion of this Note, the Company
and any agent of the Company may treat the name in which this Note is duly registered as the owner hereof for the purpose of receiving
payment as herein provided and for all other purposes, whether or not this Note is overdue, and neither the Company nor any such agent
shall be affected by notice to the contrary.

 

Section
1.04 Paying Agent and Registrar. Initially, the Company will act as paying agent and registrar. The Company may change any paying
agent, registrar, or Company-registrar by giving the Holder not less than five (5) business days’ written notice of its election
to do so, specifying the name, address, telephone number and facsimile number of the paying agent or registrar. The Company may act in
any such capacity.

 

Section
1.05 Investment Representations. This Note has been issued subject to certain investment representations of the original Holder set
forth in the Purchase Agreement and may be transferred or exchanged only in compliance with the Purchase Agreement and applicable federal
and state securities laws and regulations.

 

Section
1.06 Security; Other Rights. The obligations of the Company to the Holder under this Note are unsecured. However, in addition to
the rights and remedies given it by this Note and the Purchase Agreement, the Holder shall have all those rights and remedies allowed
by applicable law.

 

Section
1.07 Reservation of Common Stock. The Company shall reserve and keep available out of its authorized but unissued shares of Common
Stock, solely for the purpose of conversion of this Note, that number of shares of Common Stock equal to the number of Conversion Shares
into which the Note is convertible based upon the Conversion Price.

 

    	2

     

    

 

Article
II.

 

Section
2.01 Events of Default. Each of the following events shall constitute a default under this Note (each an “Event of Default”):

 

	 	(a)	failure
    by the Company to pay any principal amount or interest due hereunder within ten (10) business days of the date such payment is due;
	 	 	 
	 	(b)	the
    Company or any subsidiary of the Company shall: (i) make a general assignment for the benefit of its creditors; (ii) apply for or
    consent to the appointment of a receiver, trustee, assignee, custodian, sequestrator, liquidator or similar official for itself or
    any of its assets and properties; (iii) commence a voluntary case for relief as a debtor under the United States Bankruptcy Code;
    (iv) file with or otherwise submit to any governmental authority any petition, answer or other document seeking: (A) reorganization,
    (B) an arrangement with creditors or (C) to take advantage of any other present or future applicable law respecting bankruptcy, reorganization,
    insolvency, readjustment of debts, relief of debtors, dissolution or liquidation; (v) file or otherwise submit any answer or other
    document admitting or failing to contest the material allegations of a petition or other document filed or otherwise submitted against
    it in any proceeding under any such applicable law, or (vi) be adjudicated a bankrupt or insolvent by a court of competent jurisdiction;
	 	 	 
	 	(c)	any
    case, proceeding or other action shall be commenced against the Company or any subsidiary of the Company for the purpose of effecting,
    or an order, judgment or decree shall be entered by any court of competent jurisdiction approving (in whole or in part) anything
    specified in Section 2.01(b) hereof, or any receiver, trustee, assignee, custodian, sequestrator, liquidator or other official shall
    be appointed with respect to the Company, or shall be appointed to take or shall otherwise acquire possession or control of all or
    a substantial part of the assets and properties of the Company, and any of the foregoing shall continue unstayed and in effect for
    any period of sixty (60) days;
	 	 	 
	 	(d)	any
    material breach by the Company of any of its representations or warranties contained in this Note; or
	 	 	 
	 	(e)	any
    default, whether in whole or in part, shall occur in the due observance or performance of any obligations or other covenants, terms
    or provisions to be performed by the Company under this Note which is not cured within ten (10) business days after receipt of written
    notice thereof.

 

Section
2.02 If any Event of Default specified in Section 2.01(b) or Section 2.01(c) occurs, then the full principal amount of this Note,
together with any other amounts owing in respect thereof, to the date of the Event of Default, shall become immediately due and payable
without any action on the part of the Holder, and if any other Event of Default occurs, the full principal amount of this Note, together
with any other amounts owing in respect thereof, to the date of acceleration shall become, at the Holder’s election, immediately
due and payable in cash. All Notes for which the full amount hereunder shall have been paid in accordance herewith shall promptly be
surrendered to or as directed by the Company.

 

Article
III.

 

Section
3.01 Covenants. So long as this Note shall remain in effect and until any outstanding principal and interest and all fees and all
other expenses or amounts payable under this Note have been paid in full, unless the Holder shall otherwise consent in writing (such
consent not to be unreasonably withheld), the Company shall:

 

	 	(a)	Notice
    of Default. Promptly advise the Holder in writing of the occurrence of any Event of Default of which the Company is aware.

 

    	3

     

    

 

	 	(b)	Entry
    into Certain Transactions. Not, directly or in directly, (i) liquidate, dissolve or wind up the Company; or (ii) amend, alter
    or repeal any provision of the Company’s Articles of Incorporation or Bylaws.

 

Article
IV.

 

Section
4.01 Representations of the Company. The Company hereby represents and warrants to the Holder that:

 

	 	(a)	The
    Company has the requisite corporate power and authority to enter into and perform its obligations under this Note, (ii) the execution
    and delivery of this Note by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized
    by the Company’s Board of Directors, and no further consent or authorization is required by the Company, its Board of Directors
    or its stockholders, (iii) this Note has been duly executed and delivered by the Company, (iv) this Note constitutes the valid and
    binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such enforceability may
    be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar
    laws relating to, or affecting generally, the enforcement of creditors’ rights and remedies.
	 	 	 
	 	(b)	The
    execution, delivery and performance of this Note by the Company, and the consummation by the Company of the transactions contemplated
    hereby, will not (i) result in a violation of the Articles of Incorporation or by-laws (or equivalent constitutive document) of the
    Company or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default (or an event which with
    notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration
    or cancellation of, any agreement, indenture or instrument to which the Company is a party, or result in a violation of any law,
    rule, regulation, order, judgment or decree (including U.S. federal and state securities laws and regulations) applicable to the
    Company or by which any property or asset of the Company is bound or affected, except for those which could not reasonably be expected
    to have a material adverse effect on the assets, business, condition (financial or otherwise), or results of operations of the Company.
	 	 	 
	 	(c)	There
    is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory
    organization or body pending against or affecting the Company or any subsidiary, wherein an unfavorable decision, ruling or finding
    would materially adversely affect the validity or enforceability of, or the authority or ability of the Company to perform its obligations
    under, this Note.

 

Section
4.02 Representations of the Holder. The Holder hereby represents and warrants to the Company that:

 

	 	(a)	Investment
    Purpose. The Holder is acquiring this Note, and, upon conversion of this Note, the Holder will acquire the Conversion Shares
    into which this Note may be converted (the Conversion Shares together with the Note, the “Securities”), for its
    own account for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof,
    except pursuant to sales registered or exempted under the Securities Act of 1933, as amended (the “Securities Act”);
    provided, however, that by making the representations herein, such Holder reserves the right to dispose of the Securities at any
    time in accordance with or pursuant to an effective registration statement covering such Securities, or an available exemption under
    the Securities Act. The Holder agrees not to sell, hypothecate or otherwise transfer the Securities unless such Securities are registered
    under the federal and applicable state securities laws or unless, in the opinion of counsel satisfactory to the Company, an exemption
    from such law is available.

 

    	4

     

    

 

	 	(b)	Accredited
    Investor Status. The Holder meets the requirements of at least one of the suitability standards for an “Accredited Investor”
    as that term is defined in Rule 501(a)(3) of Regulation D under the Securities Act.
	 	 	 
	 	(c)	Investor
    Qualifications. The Holder was not formed for the specific purpose of acquiring this Note, is duly organized, validly existing
    and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is
    authorized by, and will not result in a violation of state law or its charter or other organizational documents, has full power and
    authority carry out the provisions hereof and thereof and to purchase and hold this Note.
	 	 	 
	 	(d)	Solicitation.
    The Holder is unaware of, is in no way relying on, and did not become aware of the offering of this Note through or as a result of,
    any form of general solicitation or general advertising including, without limitation, any article, notice, advertisement or other
    communication published in any newspaper, magazine or similar media or broadcast over television or radio, in connection with the
    offering and sale of this Note and is not subscribing for this Note and did not become aware of the offering of this Note through
    or as a result of any seminar or meeting to which the Holder was invited by, or any solicitation of a subscription by, a person not
    previously known to the Holder in connection with investments in securities generally.
	 	 	 
	 	(e)	Brokerage
    Fees. The Holder has taken no action that would give rise to any claim by any person for brokerage commissions, finders’
    fees or the like relating to this Note or the transaction contemplated hereby.
	 	 	 
	 	(f)	Knowledge
    and Experience. The Holder has such knowledge and experience in financial, tax, and business matters, and, in particular, investments
    in securities, so as to enable it to utilize the information made available to it in connection with this Note to evaluate the merits
    and risks of an investment in this Note and the Company and to make an informed investment decision with respect thereto.
	 	 	 
	 	(g)	Liquidity.
    The Holder has adequate means of providing for such Holder’s current financial needs and foreseeable contingencies and has
    no need for liquidity of its investment in this Note for an indefinite period of time, and after purchasing this Note the Holder
    will be able to provide for any foreseeable current needs and possible personal contingencies. The Holder must bear and acknowledges
    the substantial economic risks of the investment in this Note including the risk of illiquidity and the risk of a complete loss of
    this investment.
	 	 	 
	 	(h)	High
    Risk Investment. The Holder is aware that an investment in this Note, and upon conversion of this Note, the Conversion Shares,
    involves a number of very significant risks and has carefully researched and reviewed and understands the risks of, and other considerations
    relating to, the purchase of this Note, and, upon conversion of this Note, the Conversion Shares.
	 	 	 
	 	(i)	Reliance
    on Exemptions. The Holder understands that this Note is being offered and sold to it in reliance on specific exemptions from
    the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the
    truth and accuracy of, and such Holder’s compliance with, the representations, warranties, agreements, acknowledgments and
    understandings of such Holder set forth herein in order to determine the availability of such exemptions and the eligibility of such
    Holder to acquire such securities.

 

    	5

     

    

 

	 	(j)	Information.
    The Holder has been furnished with all documents and materials relating to the business, finances and operations of the Company and
    its subsidiaries and information that Holder requested and deemed material to making an informed investment decision regarding its
    purchase of this Note. The Holder has been afforded the opportunity to review such documents and materials and the information contained
    therein. The Holder has been afforded the opportunity to ask questions of the Company and its management. The Holder understands
    that such discussions, as well as any written information provided by the Company, were intended to describe the aspects of the Company’s
    and its subsidiaries’ business and prospects which the Company believes to be material, but were not necessarily a thorough
    or exhaustive description, and except as expressly set forth in this Note or the Purchase Agreement, the Company makes no representation
    or warranty with respect to the completeness of such information and makes no representation or warranty of any kind with respect
    to any information provided by any entity other than the Company. Some of such information may include projections as to the future
    performance of the Company and its subsidiaries, which projections may not be realized, may be based on assumptions which may not
    be correct and may be subject to numerous factors beyond the Company’s and its subsidiaries’ control. Additionally, Holder
    understands and represents that it is purchasing this Note notwithstanding the fact that the Company and its subsidiaries, may disclose
    in the future certain material information Holder has not received, including the financial results of the Company and its subsidiaries
    for the current fiscal quarter. Neither such inquiries nor any other due diligence investigations conducted by such Holder shall
    modify, amend or affect such Holder’s right to rely on the Company’s representations and warranties contained herein.
    The Holder has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision
    with respect to its investment in this Note.
	 	 	 
	 	(k)	No
    Other Representations or Information. In evaluating the suitability of an investment in this Note, the Holder has not relied
    upon any representation or information (oral or written) with respect to the Company or its subsidiaries, or otherwise, other than
    as stated in this Note or the Purchase Agreement.
	 	 	 
	 	(l)	No
    Governmental Review. The Holder understands that no United States federal or state agency or any other government or governmental
    agency has passed on or will pass on, or has made or will make, any recommendation or endorsement of this Note (or the Conversion
    Shares), or the fairness or suitability of the investment in this Note (or the Conversion Shares), nor have such authorities passed
    upon or endorsed the merits of the offering of this Note (or the Conversion Shares).
	 	 	 
	 	(m)	Transfer
    or Resale. The Holder understands that: (i) this Note, and, upon conversion of the Note, the Conversion Shares, have not been
    and are not being registered under the Securities Act or any state securities laws, and may not be offered for sale, sold, assigned
    or transferred unless (A) subsequently registered thereunder, or (B) such Holder shall have delivered to the Company an opinion of
    counsel, in a generally acceptable form, to the effect that such securities to be sold, assigned or transferred may be sold, assigned
    or transferred pursuant to an exemption from such registration requirements; (ii) any sale of such securities made in reliance on
    Rule 144 under the Securities Act (or a successor rule thereto) (“Rule 144”) may be made only in accordance with
    the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of such securities under circumstances in which the
    seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities
    Act) may require compliance with some other exemption under the Securities Act or the rules and regulations of the SEC thereunder;
    and (iii) except as otherwise provided herein or the Purchase Agreement, neither the Company nor any other person is under any obligation
    to register such securities under the Securities Act or any state securities laws or to comply with the terms and conditions of any
    exemption thereunder. There can be no assurance that there will be any market for this Note or the Conversion Shares, nor can there
    be any assurance that this Note will be freely transferable at any time in the foreseeable future.

 

    	6

     

    

 

	 	(n)	Legends.
    The Holder understands that the certificates representing the Conversion Shares shall bear a restrictive legend in substantially
    the following form (and a stop transfer order may be placed against transfer of such stock certificates):

 

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”). THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE UNITED
STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (C) IN COMPLIANCE WITH RULE 144 OR 144A THEREUNDER, IF AVAILABLE,
AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, (D) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT, OR (E) IN A TRANSACTION
THAT DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, AND THE HOLDER HAS, PRIOR TO SUCH
SALE, FURNISHED TO THE COMPANY AN OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE COMPANY.
HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.

 

	 	(o)	Confidentiality.
    The Holder acknowledges and agrees that certain of the information received by it in connection with the transactions contemplated
    by this Note is of a confidential nature and may be regarded as material non-public information under Regulation FD promulgated by
    the SEC and that such information has been furnished to the Holder for the sole purpose of enabling the Holder to consider and evaluate
    an investment in this Note. The Holder agrees that it will treat such information in a confidential manner, will not use such information
    for any purpose other than evaluating an investment in this Note, will not, directly or indirectly, trade or permit the Holder’s
    agents, representatives or affiliates to trade in any securities of the Company while in possession of such information and will
    not, directly or indirectly, disclose or permit the Holder’s agents, representatives or affiliates to disclose any of such
    information without the Company’s prior written consent. The Holder shall make its agents, affiliates and representatives aware
    of the confidential nature of the information contained herein and the terms of this section including the Holder’s agreement
    to not disclose such information, to not trade in the Company’s securities while in the possession of such information and
    to be responsible for any disclosure or other improper use of such information by such agents, affiliates or representatives. Likewise,
    without the Company’s prior written consent, the Holder will not, directly or indirectly, make any statements, public announcements
    or other release or provision of information in any form to any trade publication, to the press or to any other person or entity
    whose primary business is or includes the publication or dissemination of information related to the transactions contemplated by
    this Note.
	 	 	 
	 	(p)	No
    Legal Advice from the Company. The Holder acknowledges that it has had the opportunity to review this Note and the transactions
    contemplated by this Note with its own legal counsel and investment and tax advisors. The Holder is relying solely on such advisors
    and not on any statements or representations of the Company or any of its employees, representatives or agents for legal, tax, economic
    and related considerations or investment advice with respect to this investment, the transactions contemplated by this Note or the
    securities laws of any jurisdiction.

 

    	7

     

    

 

	 	(q)	No
    Group Participation. The Holder and its affiliates are not a member of any group, nor is any Holder acting in concert with any
    other person, including any other Holder, with respect to its acquisition of this Note (and the Conversion Shares).

 

Article
V.

 

Section
5.01 Registration Rights. As addressed in the Purchase Agreement, there shall be no registration rights with respect to the Conversion
Shares.

 

Article
VI.

 

Section
6.01 Conversion Price Adjustments.

 

(a)
General. The conversion price and the number of Conversion Shares issuable upon the conversion of this Note shall be subject to
adjustment from time to time upon the occurrence of certain events described in this Section 6.01.

 

	 	(i)	Subdivision
    or Combination of Stock. In case the Company shall at any time subdivide (whether by way of stock dividend, stock split or otherwise)
    its outstanding shares of Common Stock into a greater number of shares, the conversion price in effect immediately prior to such
    subdivision shall be proportionately reduced and the number of Conversion Shares shall be proportionately increased, and conversely,
    in case the outstanding shares of Common Stock of the Company shall be combined (whether by way of stock combination, reverse stock
    split or otherwise) into a smaller number of shares, the conversion price in effect immediately prior to such combination shall be
    proportionately increased and the number of Conversion Shares shall be proportionately decreased. The conversion price and the number
    of Conversion Shares issuable upon conversion, as so adjusted, shall be readjusted in the same manner upon the happening of any successive
    event or events described in this Section 6.01(a)(i).
	 	 	 
	 	(ii)	Dividends
    in Stock, Property, Reclassification. If at any time, or from time to time, the holders of Common Stock (or any shares of stock
    or other securities at the time receivable upon the conversion of this Note) shall have received or become entitled to receive, without
    payment therefor:

 

(A)
any shares of stock or other securities that are at any time directly or indirectly convertible into or exchangeable for Common Stock,
or any rights or options to subscribe for, purchase or otherwise acquire any of the foregoing by way of dividend or other distribution,
or

 

(B)
additional stock or other securities or property (including cash) by way of spin-off, split-up, reclassification, combination of shares
or similar corporate rearrangement (other than shares of Common Stock issued as a stock split or adjustments in respect of which shall
be covered by the terms of Section 6.01(a)(i) above),

 

then
and in each such case, the conversion price and the number of Conversion Shares to be issued upon conversion of this Note shall be adjusted
proportionately, and the Holder hereof shall, upon the conversion of this Note, be entitled to receive, in addition to the number of
Conversion Shares receivable thereupon, and without payment of any additional consideration therefor, the amount of stock and other securities
and property (including cash in the cases referred to above) that such Holder would hold on the date of such exercise had such Holder
been the holder of record of such Common Stock as of the date on which holders of Common Stock received or became entitled to receive
such shares or all other additional stock and other securities and property. The conversion price and the Conversion Shares, as so adjusted,
shall be readjusted in the same manner upon the happening of any successive event or events described in this Section 6.01(a)(ii).

 

    	8

     

    

 

(iii)
Reorganization, Reclassification, Consolidation, Merger or Sale. If any recapitalization, reclassification or reorganization of
the capital stock of the Company, or any consolidation or merger of the Company with another corporation, or the sale of all or substantially
all of its assets or other transaction shall be effected in such a way that holders of Common Stock shall be entitled to receive stock,
securities or other assets or property (an “Organic Change”), then lawful and adequate provisions shall be made by
the Company whereby the Holder hereof shall thereafter have the right to purchase and receive (in lieu of the Conversion Shares of the
Company immediately theretofore purchasable and receivable upon the conversion of this Note) such shares of stock, securities or other
assets or property as may be issued or payable with respect to or in exchange for a number of outstanding shares of such Common Stock
equal to the number of shares of such stock immediately theretofore purchasable by reason of the Conversion Shares and receivable assuming
the full conversion of this Note. In the event of any Organic Change, appropriate provision shall be made by the Company with respect
to the rights and interests of the Holder of this Note to the end that the provisions hereof (including, without limitation, provisions
for adjustments of the conversion price and of the number of Conversion Shares purchasable and receivable upon the exercise of this Note)
shall thereafter be applicable, in relation to any shares of stock, securities or assets thereafter deliverable upon the exercise hereof.
To the extent necessary to effect the foregoing provisions, the successor corporation (if other than the Company) resulting from such
consolidation or merger or the corporation purchasing such assets shall assume by written instrument reasonably satisfactory in form
and substance to the Holder executed and mailed or delivered to the registered Holder hereof at the last address of such Holder appearing
on the books of the Company, the obligation to deliver to such Holder such shares of stock, securities or assets as, in accordance with
the foregoing provisions, such Holder may be entitled to purchase. In any event, the successor corporation (if other than the Company)
resulting from such consolidation or merger or the corporation purchasing such assets shall be deemed to assume such obligation to deliver
to such Holder such shares of stock, securities or assets even in the absence of a written instrument assuming such obligation to the
extent such assumption occurs by operation of law.

 

Article
VII.

 

Section
7.01 Notice. Notices regarding this Note shall be sent to the parties at the following addresses, unless a party notifies the other
parties, in writing, of a change of address:

 

	If
    to the Company:

     
	Purebase
    Corporation

    8625
    State Hwy, 124

    Ione,
    CA 95640

    Attention:
    A. Scott Dockter, CEO

    Telephone:
    (888) 791-9474

	With
    a copy to:	 

    The
    Crone Law Group, P.C.

    500
    Fifth Avenue, Suite 938

    New
    York, New York 10110

    Attn:
    Eric Mendelson, Esq.

    Telephone:
    (917) 398-5082

     

	If
    to the Holder:	US
    Mine Corporation

    8625
    Highway 124

    Ione,
    CA 95640

    Attn:
    John Bremer

    Telephone:
    (951) 638-1005

 

    	9

     

    

 

Section
7.02 Governing Law; Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Note
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 Note (whether brought against a party hereto or its respective affiliates, directors,
officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting in the City of New York, Borough
of Manhattan (the “New York Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of
the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein (including with respect to the enforcement of this Note), 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, or such New York
Courts are improper or 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 Note 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 manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted
by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions
contemplated hereby. If either party shall commence an action or proceeding to enforce any provisions of this Note, then the prevailing
party in such action or proceeding shall be reimbursed by the other party for its attorney’s fees and other costs and expenses
incurred with the investigation, preparation and prosecution of such action or proceeding.

 

Section
7.03 Severability. The invalidity of any of the provisions of this Note shall not invalidate or otherwise affect any of the other
provisions of this Note, which shall remain in full force and effect.

 

Section
7.04 Entire Agreement and Amendments. This Note together with the Purchase Agreement represents the entire agreement between the
parties hereto with respect to the subject matter hereof and there are no representations, warranties or commitments, except as set forth
herein. This Note may be amended only by an instrument in writing executed by the Company and the Holder.

 

[Remainder
of Page Intentionally Left Blank]

 

    	10

     

    

 

IN
WITNESS WHEREOF, with the intent to be legally bound hereby, the Company as executed this Note as of the date first written above.

 

	 	PUREBASE
    CORPORATION
	 	 
	 	By:	/s/
    Scott Dockter
	 	Name:	A. Scott Dockter
	 	Title:	Chief Executive Officer

 

    	 

     

    

 

EXHIBIT
A

 

NOTICE
OF CONVERSION

 

(To
be executed by the Holder in order to convert the Note)

 

TO: Purebase Corporation  

 

The
undersigned hereby irrevocably elects to convert the unpaid principal amount and accrued interest amount indicated below of the 5% Unsecured
Convertible Promissory Note due November 25, 2022 (the “Note”) into Conversion Shares of Purebase Corporation, according
to the conditions stated therein, as of the Conversion Date written below.

 

	Conversion
    Date:	 
	Applicable
    Conversion Price (per Conversion Shares):	$
    
	Principal
    amount of Note to be converted:	$
	Principal
    amount of Note unconverted:	$
	Interest
    amount to be converted	$
	Number
    of Conversion Shares to be issued:	 
	Issue
    the Conversion Shares in the following name and to the following address:	 
	Issue
    to the following account of the Holder:	 
	Authorized
    Signature:	 
	Name:	 
	Title:	 
	Telephone
    Number:EX-4.1

   

  Exhibit 4.1

  HOLLEY INC.

  DESCRIPTION OF SECURITIES

  The following sets forth a summary of certain terms of the securities of Holley Inc. (the “Company”, “we” or “our”), including certain provisions of the Delaware General Corporation Law (the “DGCL”) and of the Company’s certificate of incorporation and the bylaws. This summary is not intended to be a complete summary of the rights and preferences of such securities and is qualified entirely by reference to the certificate of incorporation, bylaws and the Warrant Agreement, dated October 6, 2020, between Continental Stock Transfer & Trust Company, as Warrant agent, and Empower Ltd. (the “Warrant Agreement”). You should refer to our certificate of incorporation, bylaws and the Warrant Agreement, which are incorporated by reference as exhibits to our Annual Report on Form 10-K, for a complete description of the rights and preferences of our securities. The summary below is also qualified by reference to the provisions of the DGCL, as applicable.

  Authorized and Outstanding Stock

  The certificate of incorporation authorizes the issuance of 555,000,000 shares of capital stock, consisting of (i) 550,000,000 shares of common stock, par value $0.0001 per share (“Common Stock”) and (ii) 5,000,000 shares of preferred stock, par value $0.0001 per share (“Preferred Stock”).

  Common Stock

  Except as otherwise required by law or as otherwise provided in any certificate of designation for any series of preferred stock, under the certificate of incorporation, the holders of Common Stock possess all voting power for the election of our directors and all other matters requiring stockholder action and are entitled to one vote per share on matters to be voted on by stockholders and are not entitled to cumulative voting in the election of directors. Subject to certain limited exceptions, the holders of Common Stock shall at all times vote together as one class on all matters submitted to a vote of the holders of Common Stock under the certificate of incorporation. Subject to preferences that may be applicable to any outstanding series of preferred stock, the holders of our Common Stock will receive ratably any dividends declared by our board of directors out of funds legally available for the payment of dividends. In the event of our liquidation, dissolution or winding-up, the holders of our Common Stock will be entitled to share ratably in all assets remaining after payment of or provision for any liabilities, subject to prior distribution rights of preferred stock, if any, then outstanding.

  Preferred Stock

  The certificate of incorporation provides that shares of preferred stock may be issued from time to time in one or more series. The board of directors is authorized to fix the voting rights, if any, designations, powers, preferences and relative, participating, optional, special and other rights, if any, and any qualifications, limitations and restrictions thereof, applicable to the shares of each series. The Company’s board of directors is able, without stockholder approval, to issue preferred stock with voting and other rights that could adversely affect the voting power and other rights of the holders of the Common Stock and could have anti-takeover effects. The ability of the Company’s board of directors to issue preferred stock without stockholder approval could have the effect of delaying, deferring or preventing a change of control of us or the removal of existing management. 

  Dividends

  Under the certificate of incorporation, holders of Common Stock are entitled to receive ratable dividends, if any, as may be declared from time-to-time by our board of directors out of legally available assets or funds, subject to preferences that may be applicable to any outstanding series of preferred stock. 

  Preemptive or Other Rights

  The certificate of incorporation does not provide for any preemptive or other similar rights.

   

  

   

   Election of Directors

  Under the terms of the certificate of incorporation, the board of directors is divided into three classes designated as Class I, Class II and Class III. Class I directors will initially serve for a term expiring at the 2022 annual meeting of stockholders. Class II and Class III directors will initially serve for a term expiring at the 2023 and 2024 annual meeting of stockholders, respectively. At each succeeding annual meeting of stockholders, directors will be elected for a full term of three years to succeed the directors of the class whose terms expire at such annual meeting of the stockholders. There will be no limit on the number of terms a director may serve on the board of directors of the Company.

  Under the certificate of incorporation, directors are elected by a plurality voting standard, whereby each of our stockholders may not give more than one vote per share towards any one director nominee. There are no cumulative voting rights.

  Annual Stockholder Meetings

  The bylaws provide that annual stockholder meetings will be held at a date, time and place, if any, as exclusively selected by the board of directors. To the extent permitted under applicable law, the Company may conduct meetings by remote communications.

  Dissenters’ Rights of Appraisal and Payment

  Under the DGCL, with certain exceptions, the Company’s stockholders have appraisal rights in connection with a merger or consolidation of the Company. Pursuant to the DGCL, stockholders who properly request and perfect appraisal rights in connection with such merger or consolidation will have the right to receive payment of the fair value of their shares as determined by the Delaware Court of Chancery.

  Stockholders’ Derivative Actions

  Under the DGCL, any of the Company’s stockholders may bring an action in the Company’s name to procure a judgment in the Company’s favor, also known as a derivative action, provided that the stockholder bringing the action is a holder of the Company’s shares at the time of the transaction to which the action relates or such stockholder’s stock thereafter devolved by operation of law.

  Limitations on Liability and Indemnification of Officers and Directors

  The certificate of incorporation and bylaws provide for the indemnification of current and former officers and directors of the Company to the fullest extent permitted by Delaware law. The DGCL permits a corporation to limit or eliminate a director’s personal liability to the corporation or the holders of its capital stock for breach of fiduciary duty. This limitation is generally unavailable for acts or omissions by a director which (i) were not in good faith, (ii) were the result of intentional misconduct or a knowing violation of law, (iii) the director derived an improper personal benefit from (such as a financial profit or other advantage to which the director was not legally entitled) or (iv) breached the director’s duty of loyalty. The DGCL also prohibits limitations on director liability under Section 174 of the DGCL, which relates to certain unlawful dividend declarations and stock repurchases. We have entered into agreements with our officers and directors to provide contractual indemnification in addition to the indemnification provided for in our certificate of incorporation. We have purchased a policy of directors’ and officers’ liability insurance that insures our officers and directors against the cost of defense, settlement or payment of a judgment in some circumstances and insures us against our obligations to indemnify our officers and directors. In connection with the consummation of that certain business combination (the “Closing”) contemplated by that certain Agreement and Plan of Merger dated March 11, 2021 (the “Merger Agreement”), by and among Empower Ltd., (“Empower” and predecessor to the Company), Empower Merger Sub I Inc., Empower Merger Sub II LLC, and Holley Intermediate Holdings, Inc., we purchased a tail policy with respect to liability coverage for the benefit of our officers and directors prior to the Closing on the same or substantially similar terms of our existing policy. Pursuant to the Merger Agreement, we are required to maintain such tail policy for a period of no less than six years following the Closing.

  These provisions may discourage current stockholders and future stockholders from bringing a lawsuit against our directors for breach of their fiduciary duty. These provisions also may have the effect of reducing the likelihood of derivative litigation against officers and directors, even though such an action, if successful, might otherwise benefit us and our stockholders and stockholders. Furthermore, a stockholder’s or stockholder’s investment may be adversely affected to the extent we pay the costs of settlement and damage awards against officers and directors pursuant to these indemnification provisions.

  2

  

   

  We believe that these provisions, the directors’ and officers’ liability insurance and the indemnity agreements are necessary to attract and retain talented and experienced officers and directors.

  Exclusive Forum

  The certificate of incorporation provides that, unless the Company selects or consents in writing to the selection of an alternative forum, to the fullest extent permitted by the applicable law: (a) the sole and exclusive forum for any complaint asserting any internal corporate claims, to the fullest extent permitted by law, and subject to applicable jurisdictional requirements, shall be the Court of Chancery of the State of Delaware (or, if the Court of Chancery does not have, or declines to accept, jurisdiction, another state court or a federal court located within the State of Delaware); and (b) the sole and exclusive forum for any complaint asserting a cause of action arising under the Securities Act of 1933, to the fullest extent permitted by law, shall be the federal district courts of the United States of America. For purposes of the foregoing, “internal corporate claims” means claims, including claims in the right of the Company that are based upon a violation of a duty by a current or former director, officer, employee or stockholder in such capacity, or as to which the DGCL confers jurisdiction upon the Court of Chancery. Any person or entity purchasing or otherwise acquiring any interest in any shares of Common Stock will be deemed to have consented to (i) the personal jurisdiction of the state and federal courts located within the State of Delaware in connection with any action brought in any such court to enforce the exclusive forum provision of the certificate of incorporation, and (ii) having service of process made upon such holder of Common Stock in any such action by service upon such holder of Common Stock’s counsel in such action as agent for such holder of Common Stock. 

  Certain Anti-Takeover Provisions of Delaware Law; Certificate of Incorporation and Bylaws

  The certificate of incorporation, bylaws and DGCL contain provisions, as summarized in the following paragraphs that are intended to enhance the likelihood of continuity and stability in the composition of our board of directors. These provisions are intended to avoid costly takeover battles, reduce the Company’s vulnerability to a hostile change of control and enhance the ability of the Company’s board of directors to maximize stockholder value in connection with any unsolicited offer to acquire the Company. However, these provisions may have an anti-takeover effect and may delay, deter or prevent a merger or acquisition of the Company by means of a tender offer, a proxy contest or other takeover attempt that a stockholder might consider in its best interest, including those attempts that might result in a premium over the prevailing market price for the shares of Common Stock held by stockholders.

  Advanced Notice Requirements for Stockholder Meetings, Nominations and Proposals

  The bylaws provide that special meetings of the stockholders may be called only by or at the direction of the chairman of our board of directors, the chief executive officer, the secretary, or the board of directors pursuant to a resolution adopted by a majority of the board. Our bylaws prohibit the conduct of any business at a special meeting other than as specified in the notice for such meeting. These provisions may have the effect of deferring, delaying or discouraging hostile takeovers or changes in control or management of the Company.

  The bylaws establish an advance notice procedure for stockholders who wish to present a proposal before an annual meeting of stockholders, including the nomination of a director candidate. The bylaws provide that the only business that may be conducted at an annual meeting of stockholders is business that is (i) specified in the notice of such meeting (or any supplement or amendment thereto) given by or at the direction of the board of directors, (ii) otherwise properly brought before such meeting by or at the direction of the board of directors, or (iii) otherwise properly brought before such meeting by a stockholder who (A) is a stockholder of record (and, with respect to any beneficial owner, if different, on whose behalf such business is proposed, only if such beneficial owner is the beneficial owner of shares of Common Stock) both at the time of giving the notice and at the time of the meeting, (B) is entitled to vote at the meeting and (C) has complied with the notice procedures set forth in the bylaws as to such business. To be timely for the Company’s annual meeting of stockholders, the Company’s secretary must receive the written notice at the Company’s principal executive offices not earlier than the 120th day and not later than the 90th day before the one-year anniversary of the preceding year’s annual meeting. In the event that no annual meeting was held in the previous year or the date of the annual meeting is advanced by more than thirty (30) days or delayed (other than as a result of adjournment) by more than thirty (30) days from the first anniversary of the previous year’s annual meeting, notice by a stockholder to be timely must be received not later than the close of business on the later of the ninetieth (90th) day prior to such annual meeting or the tenth (10th) day following the date on which public announcement of the date of such meeting is first made. Nominations and proposals also must satisfy other procedural and information requirements set forth in the bylaws. The Chairperson of the board of directors of the Company may refuse to acknowledge the introduction of any stockholder proposal not made in compliance with the foregoing procedures. 

  3

  

   

  These provisions may also defer, delay or discourage a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to influence or obtain control of the Company.

  No Cumulative Voting

  The DGCL provides that a stockholder’s right to vote cumulatively in the election of directors does not exist unless the certificate of incorporation specifically provides otherwise. Our certificate of incorporation does not provide for cumulative voting.

  Classified Board of Directors

  Our certificate of incorporation provides that our board of directors is divided into three classes of directors, with the classes to be as nearly equal in number as possible, designated Class I, Class II and Class III. Class I, II and III directors shall initially serve until our 2022, 2023 and 2024 annual meetings of stockholders, respectively. Commencing with the 2024 annual meeting of stockholders, directors of each class the term of which shall then expire shall be elected to hold office for a three-year term. The classification of directors has the effect of making it more difficult for stockholders to change the composition of our board of directors.

   Removal of Directors; Vacancies

  Our certificate of incorporation provides that directors may be removed only for cause and only upon the affirmative vote of holders of a majority of the voting power of all the then outstanding shares of stock entitled to vote generally in the election of directors, voting together as a single class. In addition, our certificate of incorporation provides that any newly created directorships and any vacancies on our board of directors will be filled only by the affirmative vote of the majority of remaining directors. Therefore, stockholders are not able to elect new directors to fill any resulting vacancies that may be created as a result of such a special meeting.

  Supermajority Vote Requirement to Amend the Bylaws and Certificate of Incorporation

  The affirmative vote of at least (i) 66 2/3% of the voting power of all the then-outstanding shares of capital stock entitled to vote generally in the election of directors, voting as a single class, is required for stockholders to adopt, amend or repeal Article VI of the bylaws, (ii) 66.7% of the voting power of all the then-outstanding shares of capital stock entitled to vote generally in the election of directors is required for stockholders, voting as a single class, to adopt, amend or repeal Section 4.2 and Articles V, VII, VIII, X, XI and XII of the certificate of incorporation and (iii) 80% of the voting power of all the then-outstanding shares of capital stock entitled to vote generally in the election of directors is required for stockholders, voting as a single class, to adopt, amend or repeal Article IX of the certificate of incorporation.

  Stockholder Action by Written Consent

  The DGCL permits any action required to be taken at any annual or special meeting of the stockholders to be taken without a meeting, without prior notice and without a vote if a consent in writing, setting forth the action so taken, is signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares of stock entitled to vote thereon were present and voted, unless the certificate of incorporation provides otherwise. Our certificate of incorporation precludes stockholder action by written consent.

  Authorized but Unissued Shares

  Our authorized but unissued shares of Common Stock and preferred stock are available for future issuance without stockholder approval. The DGCL does not require stockholder approval for any issuance of authorized shares. However, the rules of the New York Stock Exchange require stockholder approval of certain issuances equal to or exceeding 20% of the then-outstanding voting power or the then-outstanding number of shares of Common Stock. No assurances can be given that our shares will remain so listed. We may use additional shares for a variety of corporate purposes, including future public offerings to raise additional capital, corporate acquisitions and employee benefit plans. As discussed above, our board of directors has the ability to issue preferred stock with voting rights or other preferences, without stockholder approval. The existence of authorized but unissued shares of Common Stock and preferred stock could render more difficult or discourage an attempt to obtain control of the Company by means of a proxy contest, tender offer, merger or otherwise.

   

  4

  

   

  Warrants

  As of January 25, 2022, there were 14,666,644 warrants outstanding, consisting of 9,999,977 public warrants, each representing the right to purchase one share of Common Stock at a price of $11.50 per share, subject to certain conditions set forth in the Warrant Agreement (the “Public Warrants”) and 4,666,667 private placement warrants, each representing the right to purchase one share of Common Stock at a price of $11.50 per share, subject to certain conditions set forth in the Warrant Agreement (the “Private Warrants”, together with the Public Warrants, the “Warrants”).

  Public Warrants

  Each whole Warrant entitles the registered holder to purchase one share of Common Stock at a price of $11.50 per share, subject to adjustment as discussed below, at any time commencing on October 9, 2021 (the one year anniversary of Empower’s initial public offering), except as discussed below. Pursuant to the Warrant Agreement, a Warrant holder may exercise its Warrants only for a whole number of shares of Common Stock. This means only a whole Warrant may be exercised at a given time by a Warrant holder. The Warrants will expire on July 16, 2026, the date that is five years after the Closing Date, at 5:00 p.m., New York City time, or earlier upon redemption or liquidation.

  We will not be obligated to deliver any shares of Common Stock pursuant to the exercise of a Warrant and will have no obligation to settle such Warrant exercise unless a registration statement under the Securities Act with respect to the shares of Common Stock underlying the Warrants is then effective and a prospectus relating thereto is current, subject to our satisfying our obligations described below with respect to registration, or a valid exemption from registration is available. As of the date hereof, all of the (i) outstanding Public Warrants and the underlying shares of Common Stock to such Public Warrants and (ii) outstanding Private Warrants and the underlying shares of Common Stock to such Private Warrants have been registered for resale pursuant to a registration statement, and such registration statements have been declared effective by the SEC.  It is the Company’s expectation that it will continue to maintain the effectiveness of such registration statements. No Warrant will be exercisable and we will not be obligated to issue a share of Common Stock upon exercise of a Warrant unless the share of Common Stock issuable upon such Warrant exercise has been registered, qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the Warrants. In the event that the conditions in the two immediately preceding sentences are not satisfied with respect to a Warrant, the holder of such Warrant will not be entitled to exercise such Warrant and such Warrant may have no value and expire worthless. In no event will we be required to net cash settle any Warrant.

  We have agreed that as soon as practicable, but in no event later than twenty business days after the Closing, we will use our commercially reasonable efforts to file with the SEC a registration statement for the registration, under the Securities Act, of the shares of Common Stock issuable upon exercise of the Warrants, and we will use our commercially reasonable efforts to cause the same to become effective within 60 business days after the Closing, and to maintain the effectiveness of such registration statement and a current prospectus relating to those shares of Common Stock until the Warrants expire or are redeemed, as specified in the Warrant Agreement. As of the date hereof, all of the (i) outstanding Public Warrants and the underlying shares of Common Stock to such Public Warrants and (ii) outstanding Private Warrants and the underlying shares of Common Stock to such Private Warrants have been registered for resale pursuant to a registration statement, and such registration statements have been declared effective by the SEC.  It is the Company’s expectation that it will continue to maintain the effectiveness of such registration statements. However, if our shares of Common Stock are at the time of any exercise of a Warrant not listed on a national securities exchange such that they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, we may, at our option, require holders of Public Warrants who exercise their Warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event we so elect, we will not be required to file or maintain in effect a registration statement, but we will use our commercially reasonably efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available. If a registration statement covering the shares of Common Stock issuable upon exercise of the Warrants is not effective by the 60th business day after the Closing, Warrant holders may, until such time as there is an effective registration statement and during any period when we will have failed to maintain an effective registration statement, exercise Warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption, but we will use our commercially reasonably efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available. In such event, each holder would pay the exercise price by surrendering the Warrants for that number of shares of Common Stock equal to the lesser of (A) the quotient obtained by dividing (x) the product of the number of shares of Common Stock underlying the Warrants, multiplied by the excess of the fair market value 

  5

  

   

  less the exercise price of the Warrants by (y) the fair market value and (B) 0.361 per Warrant. The “fair market value” as used in this paragraph shall mean the volume weighted average price of the shares of Common Stock for the 10 trading days ending on the trading day prior to the date on which the notice of exercise is received by the Warrant agent.

  Redemption of Warrants when the price per share of Common Stock equals or exceeds $18.00. 

  We may redeem the outstanding Warrants (except as described herein with respect to the Private Warrants) in whole and not in part, at a price of $0.01 per Warrant, upon a minimum of 30 day’s prior written notice of redemption to each Warrant holder, if, and only if, the closing price of the Common Stock equals or exceeds $18.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a Warrant as described under the heading “— Anti-dilution Adjustments”) on the trading day prior to the date on which we send the notice of redemption to the Warrant holders.

  We will not redeem the Warrants as described above unless a registration statement under the Securities Act covering the issuance of the shares of Common Stock issuable upon exercise of the Warrants is then effective and a current prospectus relating to those shares of Common Stock is available throughout the 30-day redemption period. If and when the Warrants become redeemable by us, we may exercise our redemption right even if we are unable to register or qualify the underlying securities for sale under all applicable state securities laws.

  We have established the last of the redemption criterion discussed above to prevent a redemption call unless there is at the time of the call a significant premium to the Warrant exercise price. If the foregoing conditions are satisfied and we issue a notice of redemption of the Warrants, each Warrant holder will be entitled to exercise his, her or its Warrant prior to the scheduled redemption date. Any such exercise would not be done on a “cashless” basis and would require the exercising Warrant holder to pay the exercise price for each Warrant being exercised. However, the price of the shares of Common Stock may fall below the $18.00 redemption trigger price (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a Warrant as described under the heading “— Anti-dilution Adjustments”) as well as the $11.50 per share of Common Stock exercise price after the redemption notice is issued.

  Redemption of Warrants when the price per share of Common Stock equals or exceeds $10.00. 

  We may redeem the outstanding Warrants (except as described herein with respect to the Private Warrants) in whole and not in part, at a price of $0.10 per Warrant, upon a minimum of 30 days’ prior written notice of redemption if, and only if, the closing price of our shares of Common Stock equals or exceeds $10.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a Warrant as described under the heading “— Anti-dilution Adjustments”) on the trading day prior to the date on which we send the notice of redemption to the Warrant holders.

  Beginning on the date the notice of redemption is given until the Warrants are redeemed or exercised, holders may elect to exercise their Warrants on a cashless basis. The numbers in the table below represent the number of shares of Common Stock that a Warrant holder will receive upon such cashless exercise in connection with a redemption by us pursuant to this redemption feature, based on the “fair market value” of our shares of Common Stock on the corresponding redemption date (assuming holders elect to exercise their Warrants and such Warrants are not redeemed for $0.10 per Warrant), determined for these purposes based on volume weighted average price of our shares of Common Stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of Warrants, and the number of months that the corresponding redemption date precedes the expiration date of the Warrants, each as set forth in the table below. We will provide our Warrant holders with the redemption fair market value no later than one business day after the 10-trading day period described above ends.

  The share prices set forth in the column headings of the table below will be adjusted as of any date on which the number of shares issuable upon exercise of a Warrant or the exercise price of a Warrant is adjusted as set forth under the heading “ — Anti-dilution Adjustments” below. If the number of shares issuable upon exercise of a Warrant is adjusted, the adjusted share prices in the column headings will equal the share prices immediately prior to such adjustment, multiplied by a fraction, the numerator of which is the number of shares deliverable upon exercise of a Warrant prior to such adjustment and the denominator of which is the number of shares deliverable upon exercise of a Warrant immediately so adjusted. In such an event, the number of shares in the table below shall be adjusted by multiplying such share amounts by a fraction, the numerator of which is the number of shares deliverable upon exercise of a Warrant immediately prior to such adjustment and the denominator of which is the number of shares deliverable upon exercise of a Warrant as so adjusted. If the exercise price of a Warrant is adjusted pursuant to the second 

  6

  

   

  paragraph under the heading “ — Anti-dilution Adjustments” below, the adjusted share prices in the column headings will equal the share prices immediately prior to the adjustment less the decrease in the exercise price of a Warrant pursuant to such exercise price adjustment.

    

  										
	Redemption Date
(period to expiration
of Warrants)
  
	Fair Market Value of Share of Common Stock 
  

	 
	10.00 
  
	11.00 
  
	12.00 
  
	13.00 
  
	14.00 
  
	15.00 
  
	16.00 
  
	17.00 
  
	18.00 
  

	60 months
	0.261
	0.281
	0.297
	0.311
	0.324
	0.337
	0.348
	0.358
	0.361

	57 months
	0.257
	0.277
	0.294
	0.310
	0.324
	0.337
	0.348
	0.358
	0.361

	54 months
	0.252
	0.272
	0.291
	0.307
	0.322
	0.335
	0.347
	0.357
	0.361

	51 months
	0.246
	0.268
	0.287
	0.304
	0.320
	0.333
	0.346
	0.357
	0.361

	48 months
	0.241
	0.263
	0.283
	0.301
	0.317
	0.332
	0.344
	0.356
	0.361

	45 months
	0.235
	0.258
	0.279
	0.298
	0.315
	0.330
	0.343
	0.356
	0.361

	42 months
	0.228
	0.252
	0.274
	0.294
	0.312
	0.328
	0.342
	0.355
	0.361

	39 months
	0.221
	0.246
	0.269
	0.290
	0.309
	0.325
	0.340
	0.354
	0.361

	36 months
	0.213
	0.239
	0.263
	0.285
	0.305
	0.323
	0.339
	0.353
	0.361

	33 months
	0.205
	0.232
	0.257
	0.280
	0.301
	0.320
	0.337
	0.352
	0.361

	30 months
	0.196
	0.224
	0.250
	0.274
	0.297
	0.316
	0.335
	0.351
	0.361

	27 months
	0.185
	0.214
	0.242
	0.268
	0.291
	0.313
	0.332
	0.350
	0.361

	24 months
	0.173
	0.204
	0.233
	0.260
	0.285
	0.308
	0.329
	0.348
	0.361

	21 months
	0.161
	0.193
	0.223
	0.252
	0.279
	0.304
	0.326
	0.347
	0.361

	18 months
	0.146
	0.179
	0.211
	0.242
	0.271
	0.298
	0.322
	0.345
	0.361

	15 months
	0.130
	0.164
	0.197
	0.230
	0.262
	0.291
	0.317
	0.342
	0.361

	12 months
	0.111
	0.146
	0.181
	0.216
	0.250
	0.282
	0.312
	0.339
	0.361

	9 months
	0.090
	0.125
	0.162
	0.199
	0.237
	0.272
	0.305
	0.336
	0.361

	6 months
	0.065
	0.099
	0.137
	0.178
	0.219
	0.259
	0.296
	0.331
	0.361

	3 months
	0.034
	0.065
	0.104
	0.150
	0.197
	0.243
	0.286
	0.326
	0.361

	0 months
	—  
	—  
	0.042
	0.115
	0.179
	0.233
	0.281
	0.323
	0.361

   

  For example, if the volume weighted average price of our shares of Common Stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of the Warrants is $11.00 per share, and at such time there are 57 months until the expiration of the Warrants, holders may choose to, in connection with this redemption feature, exercise their Warrants for 0.277 shares of Common Stock for each whole Warrant. However, the exact fair market value and redemption date may not be set forth in the table above, in which case, if the fair market value is between two values in the table or the redemption date is between two redemption dates in the table, the number of shares of Common Stock to be issued for each Warrant exercised will be determined by a straight-line interpolation between the number of shares set forth for the higher and lower fair market values and the earlier and later redemption dates, as applicable, based on a 365 or 366-day year, as applicable. For example, if the volume weighted average price of our shares of Common Stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of the Warrants is $13.50 per share, and at such time there are 38 months until the expiration of the Warrants, holders may choose to, in connection with this redemption feature, exercise their Warrants for 0.298 shares of Common Stock for each whole Warrant. In no event will the Warrants be exercisable on a cashless basis in connection with this redemption feature for more than 0.361 shares of Common Stock per Warrant (subject to adjustment). Finally, as reflected in the table above, if the Warrants are out of the money, they cannot be exercised on a cashless basis in connection with a redemption by us pursuant to this redemption feature, since they will not be exercisable for any shares of Common Stock.

  This redemption feature differs from the typical Warrant redemption features used by many other blank check companies, which typically only provide for a redemption of Warrants for cash (other than the Private Warrants) when the trading price for the shares of Common Stock exceeds $18.00 per share for a specified period of time. This redemption feature is structured to allow for all of the outstanding Warrants to be redeemed when the shares of Common Stock are trading at or above $10.00 per share, which may be at a time when the trading price of our shares of Common Stock is below the exercise price of the Warrants. This redemption feature was established to provide us with the flexibility to redeem the Warrants without the Warrants having to reach the $18.00 per share threshold discussed above. Holders choosing to exercise their Warrants in connection with a redemption pursuant to this feature will, in effect, receive a number of shares for their Warrants based on an option pricing model with a fixed volatility 

  7

  

   

  input as of the date of the initial public offering prospectus. This redemption right provides us with an additional mechanism by which to redeem all of the outstanding Warrants, and therefore have certainty as to our capital structure as the Warrants would no longer be outstanding and would have been exercised or redeemed. We will be required to pay the applicable redemption price to Warrant holders if we choose to exercise this redemption right and it will allow us to quickly proceed with a redemption of the Warrants if we determine it is in our best interest to do so. As such, we would redeem the Warrants in this manner when we believe it is in our best interest to update our capital structure to remove the Warrants and pay the redemption price to the Warrant holders.

  As stated above, we can redeem the Warrants when the shares of Common Stock are trading at a price starting at $10.00, which is below the exercise price of $11.50, because it will provide certainty with respect to our capital structure and cash position while providing Warrant holders with the opportunity to exercise their Warrants on a cashless basis for the applicable number of shares. If we choose to redeem the Warrants when the shares of Common Stock are trading at a price below the exercise price of the Warrants, this could result in the Warrant holders receiving fewer shares of Common Stock than they would have received if they had chosen to wait to exercise their Warrants for shares of Common Stock if and when such shares of Common Stock were trading at a price higher than the exercise price of $11.50.

  No fractional shares of Common Stock will be issued upon exercise. If, upon exercise, a holder would be entitled to receive a fractional interest in a share, we will round down to the nearest whole number of the number of shares of Common Stock to be issued to the holder. If, at the time of redemption, the Warrants are exercisable for a security other than the shares of Common Stock pursuant to the Warrant Agreement, the Warrants may be exercised for such security. At such time as the Warrants become exercisable for a security other than the shares of Common Stock, the Company (or surviving company) will use its commercially reasonable efforts to register under the Securities Act the security issuable upon the exercise of the Warrants.

  Maximum Percentage Procedures. 

  A holder of a Warrant may notify us in writing in the event it elects to be subject to a requirement that such holder will not have the right to exercise such Warrant, to the extent that after giving effect to such exercise, such person (together with such person’s affiliates), to the Warrant agent’s actual knowledge, would beneficially own in excess of 9.8% (or such other amount as a holder may specify) of the shares of Common Stock issued and outstanding immediately after giving effect to such exercise.

  Anti-dilution Adjustments. 

  If the number of outstanding shares of Common Stock is increased by a capitalization or share dividend payable in shares of Common Stock, or by a split-up of ordinary shares or other similar event, then, on the effective date of such capitalization or share dividend, split-up or similar event, the number of shares of Common Stock issuable on exercise of each Warrant will be increased in proportion to such increase in the outstanding Common Stock. A rights offering made to all or substantially all holders of Common Stock entitling holders to purchase shares of Common Stock at a price less than the “historical fair market value” (as defined below) will be deemed a share dividend of a number of shares of Common Stock equal to the product of (i) the number of shares of Common Stock actually sold in such rights offering (or issuable under any other equity securities sold in such rights offering that are convertible into or exercisable for shares of Common Stock) and (ii) one minus the quotient of (x) the price per share of Common Stock paid in such rights offering and (y) the historical fair market value. If the rights offering is for securities convertible into or exercisable for shares of Common Stock, in determining the price payable for shares of Common Stock, there will be taken into account any consideration received for such rights, as well as any additional amount payable upon exercise or conversion. For these purposes, “historical fair market value” means the volume weighted average price of a share of Common Stock as reported during the 10 trading day period ending on the trading day prior to the first date on which the shares of Common Stock trade on the applicable exchange or in the applicable market, regular way, without the right to receive such rights.

  In addition, if we, at any time while the Warrants are outstanding, pay a dividend or make a distribution in cash, securities or other assets to all or substantially all of the holders of the shares of Common Stock on account of such shares of Common Stock (or other securities into which the Warrants are convertible), other than (a) as described above, (b) any cash dividends or cash distributions which, when combined on a per share basis with all other cash dividends and cash distributions paid on the shares of Common Stock during the 365-day  period ending on the date of declaration of such dividend or distribution does not exceed $0.50 (as adjusted to appropriately reflect any other adjustments and excluding cash dividends or cash distributions that resulted in an adjustment to the exercise price or to the number of shares of Common Stock issuable on exercise of each Warrant) but only with respect to the amount 

  8

  

   

  of the aggregate cash dividends or cash distributions equal to or less than $0.50 per share or (c) to satisfy the redemption rights of the holders of Common Stock in connection with a stockholder vote to amend our certificate of incorporation or bylaws with respect to any other provision relating to the rights of holders of Common Stock, then the Warrant exercise price will be decreased, effective immediately after the effective date of such event, by the amount of cash and/or the fair market value of any securities or other assets paid on each share of Common Stock in respect of such event.

  If the number of outstanding shares of Common Stock is decreased by a consolidation, combination, reverse share sub-division or reclassification of shares of Common Stock or other similar event, then, on the effective date of such consolidation, combination, reverse share sub-division, reclassification or similar event, the number of shares of Common Stock issuable on exercise of each Warrant will be decreased in proportion to such decrease in outstanding shares of Common Stock. Whenever the number of shares of Common Stock purchasable upon the exercise of the Warrants is adjusted, as described above, the Warrant exercise price will be adjusted by multiplying the Warrant exercise price immediately prior to such adjustment by a fraction (x) the numerator of which will be the number of shares of Common Stock purchasable upon the exercise of the Warrants immediately prior to such adjustment and (y) the denominator of which will be the number of shares of Common Stock so purchasable immediately thereafter.

  In case of any reclassification or reorganization of the outstanding shares of Common Stock (other than those described above or that solely affects the par value of such shares of Common Stock), or in the case of any merger or consolidation of us with or into another corporation (other than a consolidation or merger in which we are the continuing corporation and that does not result in any reclassification or reorganization of our outstanding shares of Common Stock), or in the case of any sale or conveyance to another corporation or entity of the assets or other property of us as an entirety or substantially as an entirety in connection with which the Company is dissolved, the holders of the Warrants will thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in the Warrants and in lieu of the shares of Common Stock issuable upon exercise thereof, the kind and amount of shares of Common Stock or other securities or property (including cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon a dissolution following any such sale or transfer, that the holder of the Warrants would have received if such holder had exercised their Warrants immediately prior to such event. However, if such holders were entitled to exercise a right of election as to the kind or amount of securities, cash or other assets receivable upon such consolidation or merger, then the kind and amount of securities, cash or other assets for which each Warrant will become exercisable will be deemed to be the weighted average of the kind and amount received per share by such holders in such consolidation or merger that affirmatively make such election, and if a tender, exchange or redemption offer has been made to and accepted by such holders under circumstances in which, upon completion of such tender or exchange offer, the maker thereof, together with members of any group (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) of which such maker is a part, and together with any affiliate or associate of such maker (within the meaning of Rule 12b-2 under the Exchange Act) and any members of any such group of which any such affiliate or associate is a part, own beneficially (within the meaning of Rule 13d-3 under the Exchange Act) more than 50% of the issued and outstanding shares of Common Stock, the holder of a Warrant will be entitled to receive the highest amount of cash, securities or other property to which such holder would actually have been entitled as a stockholder if such Warrant holder had exercised the Warrant prior to the expiration of such tender or exchange offer, accepted such offer and all of the shares of Common Stock held by such holder had been purchased pursuant to such tender or exchange offer, subject to adjustment (from and after the consummation of such tender or exchange offer) as nearly equivalent as possible to the adjustments provided for in the Warrant Agreement. If less than 70% of the consideration receivable by the holders of shares of Common Stock in such a transaction is payable in the form of shares of Common Stock in the successor entity that is listed for trading on a national securities exchange or is quoted in an established over-the-counter market, or is to be so listed for trading or quoted immediately following such event, and if the registered holder of the Warrant properly exercises the Warrant within thirty days following public disclosure of such transaction, the Warrant exercise price will be reduced as specified in the Warrant Agreement based on the Black-Scholes value (as defined in the Warrant Agreement) of the Warrant. The purpose of such exercise price reduction is to provide additional value to holders of the Warrants when an extraordinary transaction occurs during the exercise period of the Warrants pursuant to which the holders of the Warrants otherwise do not receive the full potential value of the Warrants.

  The Warrants are issued in registered form under the Warrant Agreement whereby the terms of the Warrants may be amended without the consent of any holder for the purpose of (i) curing any ambiguity or correcting any mistake, or defective provision (ii) amending the provisions relating to cash dividends on ordinary shares as contemplated by and in accordance with the Warrant Agreement or (iii) adding or changing any provisions with respect to matters or questions arising under the Warrant Agreement as the parties to the Warrant Agreement may deem necessary or desirable and that the parties deem to not adversely affect the rights of the registered holders of the 

  9

  

   

  Warrants, provided that the approval by the holders of at least 50% of the then-outstanding Public Warrants is required to make any change that adversely affects the interests of the registered holders. The Warrant holders do not have the rights or privileges of holders of shares of Common Stock and any voting rights until they exercise their Warrants and receive shares of Common Stock.

   Private Placement Warrants

  Except as described below, the Private Warrants have terms and provisions that are identical to those of the Public Warrants. The Private Warrants (including the shares of Common Stock issuable upon exercise of the Private Warrants) were not transferable, assignable or salable until August 15, 2021, the date that was 30 days after the Closing Date (except pursuant to limited exceptions to our officers and directors and other persons or entities affiliated with the initial purchasers of the Private Warrants), and they will not be redeemable by us so long as they are held by Empower Sponsor Holdings LLC (the “Sponsor”) or its permitted transferees. Our Sponsor, or its permitted transferees, has the option to exercise the Private Warrants on a cashless basis. If the Private Warrants are held by holders other than our Sponsor or its permitted transferees, the Private Warrants will be redeemable by us in all redemption scenarios and exercisable by the holders on the same basis as the Public Warrants. Any amendment to the terms of the Private Warrants or any provision of the Warrant Agreement with respect to the Private Warrants will require a vote of holders of at least 50% of the number of the then outstanding Private Warrants.

  If a holder of the Private Warrants elects to exercise a Private Warrant on a cashless basis, the holder would pay the exercise price by surrendering his, her or its Warrants for that number of shares of Common Stock equal to the quotient obtained by dividing (x) the product of the number of shares of Common Stock underlying the Warrants, multiplied by the excess of the “Sponsor fair market value” (defined below) over the exercise price of the Warrants by (y) the Sponsor fair market value. For these purposes, the “Sponsor fair market value” shall mean the average reported closing price of the shares of Common Stock for the 10 trading days ending on the third trading day prior to the date on which the notice of Warrant exercise is sent to the Warrant agent. The reason these Warrants permit a cashless exercise so long as they are held by our Sponsor and its permitted transferees is because it was not known at time of issuance whether they would be affiliated with us following the Business Combination, which would significantly limit their ability to sell our securities in the open market. We have policies in place that restrict insiders from selling our securities except during specific periods of time. Even during such periods of time when insiders will be permitted to sell our securities, an insider cannot trade in our securities if he or she is in possession of material non-public information. Accordingly, unlike public investors who could exercise their Warrants and sell the shares of Common Stock received upon such exercise freely in the open market in order to recoup the cost of such exercise, the insiders are significantly restricted from selling such securities.

   

  10

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