Document:

frc-ex105_61.htm

Exhibit 10.5

 

Execution Version

SECURITIES SUBSCRIPTION AGREEMENT

This Securities Subscription Agreement (this “Agreement”), effective as of January 22, 2021, is made and entered into by and between First Reserve Sustainable Growth Corp., a Delaware corporation (the “Company”), and First Reserve Sustainable Growth Sponsor LLC, a Delaware limited liability company (the “Buyer”).

RECITALS:

WHEREAS, the Buyer wishes to purchase from the Company an aggregate of 5,750,000 shares (the “Shares”) of the Company’s Class B Common Stock (as defined below), and the Company wishes to sell the Shares to the Buyer, on the terms and subject to the conditions set forth in this Agreement.

AGREEMENT:

NOW, THEREFORE, in consideration of the premises, representations, warranties and the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

The terms defined in this Article I shall have for all purposes of this Agreement the respective meanings set forth below:

“Agreement” shall have the meaning set forth in the preamble to this Agreement.

“Buyer” shall have the meaning set forth in the preamble to this Agreement.

“Class A Common Stock” shall mean the Class A Common Stock, $0.0001 par value per share, of the Company.

“Class B Common Stock” shall mean the Class B Common Stock, $0.0001 par value per share, of the Company. Pursuant to the Company’s certificate of incorporation, as amended to the date hereof, shares of Class B Common Stock will automatically convert into shares of Class A Common Stock on a one-for-one basis, subject to adjustment, upon the terms and conditions set forth therein.

“Closing” shall have the meaning set forth in Section 2.3 of this Agreement.

“Closing Date” shall have the meaning set forth in Section 2.3 of this Agreement.

“Company” shall have the meaning set forth in the preamble to this Agreement.

“Consent” means any consent, approval, notification, waiver, or other similar action that is necessary or convenient.

“Governmental Body” shall mean any legislature, agency, bureau, branch, department, division, commission, court, tribunal or other similar recognized organization or body of any federal, state, county, municipal, local or foreign government or other similar recognized organization or body exercising similar powers or authority.

“Law” shall mean any law (statutory, common or otherwise), constitution, ordinance, rule, regulation, executive order or other similar authority enacted, adopted, promulgated or applied by any Governmental Body.

“Lien” shall mean a mortgage, deed of trust, pledge, hypothecation, assignment, encumbrance, charge, restriction, lien (statutory or otherwise, including, without limitation, any lien for taxes), security interest, preference, participation interest, priority or security agreement or preferential arrangement of any kind or nature whatsoever, including, without limitation, any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing and the filing of any document under the law of any applicable jurisdiction to evidence any of the foregoing, other than (i) statutory, mechanics’ or other Liens incurred in the Company’s ordinary course of business or (ii) Liens for taxes incurred but not yet due.

“Order” shall mean an order, ruling, decision, award, judgment, injunction or other similar determination or finding by, before or under the supervision of any Governmental Body or arbitrator.

“Permit” shall mean a permit, license, certificate, waiver, notice or similar authorization. 

“Purchase Price” shall have the meaning set forth in Section 2.2 of this Agreement. 

“SEC” shall mean the United States Securities and Exchange Commission.

“Securities Act” shall mean the United States Securities Act of 1933, as amended, or any successor federal statute, and the applicable rules and regulations promulgated and in effect from time to time thereunder.

“Shares” shall have the meaning set forth in the recitals to this Agreement. Unless the context otherwise requires, as used in this Agreement “Shares” shall be deemed to include any shares of Class A Common Stock issued upon conversion of the shares of Class B Common Stock comprising the Shares.

ARTICLE II

PURCHASE OF THE SHARES

Section 2.1Purchase and Sale of the Shares. Subject to the terms and conditions hereof and in reliance upon the representations and warranties of the parties contained or incorporated by reference herein, simultaneous with the execution hereof, the Company shall sell 

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and deliver to the Buyer, and the Buyer shall purchase from the Company,  the Shares, in consideration of the payment of the Purchase Price noted herein.

Section 2.2Purchase Price. As payment in full for the Shares being purchased under this Agreement, simultaneous with the execution hereof, the Buyer shall pay $25,000 to the Company by wire transfer of immediately available funds or by such other method as may be reasonably acceptable to the Company (the “Purchase Price”).

Section 2.3Closing. The closing of the purchase and sale of the Shares (the “Closing”) shall be held on the date of this Agreement (“Closing Date”) at the offices of Vinson & Elkins L.L.P., 1001 Fannin Street, Suite 2500, Houston, Texas 77002, or such other place as may be agreed upon by the parties hereto.

Section 2.4Closing Deliveries. All actions taken at the Closing shall be deemed to have been taken simultaneously.

(a)Buyer Deliveries. At the Closing the Buyer shall deliver to the Company the Purchase Price.

(b)Company Deliveries. At the Closing, or within a reasonable time after the Closing but in no event later than thirty (30) days after the Closing, the Company shall deliver the Shares to the Buyer.

Section 2.5Further Assurances. The parties hereto shall execute and deliver such additional documents and take such additional actions as any party reasonably may deem to be practical and necessary in order to consummate the transactions contemplated by this Agreement.

Section 2.6Legend. Although the Company does not currently intend to issue certificates evidencing the Shares, if any certificates are issued each such certificate shall be stamped or otherwise imprinted with a legend in substantially the following form:

“THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, AND MAY NOT BE TRANSFERRED IN VIOLATION OF SUCH ACT AND LAWS.”

“THESE SECURITIES ARE SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER SET FORTH IN THE LETTER AGREEMENT BY AND BETWEEN THE COMPANY AND THE SPONSOR. COPIES OF SUCH AGREEMENT MAY BE OBTAINED FROM THE COMPANY AT THE COMPANY’S PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE.”

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE BUYER

The Buyer represents and warrants that the statements contained in this Article III are correct and complete as of the date of this Agreement.

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Section 3.1Organization and Good Standing. The Buyer is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware.

Section 3.2Power and Authority; Enforceability. This Agreement constitutes the legal, valid and binding obligation of the Buyer, enforceable against the Buyer in accordance with its terms. The Buyer has full entity power and authority to execute and deliver this Agreement and to perform its obligations hereunder. The Buyer has taken all actions necessary to authorize the execution and delivery of this Agreement, the performance of its obligations hereunder and the consummation of the transactions contemplated hereby. This Agreement has been duly authorized, executed and delivered by, and is enforceable against, the Buyer.

Section 3.3Investment Representations.

(a)The Buyer is an “accredited investor” as defined in Rule 501 of Regulation D under the Securities Act.

(b)The Buyer has received, has thoroughly read, is familiar with and understands the contents of this Agreement.

(c)The Buyer hereby acknowledges that an investment in the Shares involves certain significant risks. The Buyer acknowledges that there is a substantial risk that it will lose all or a portion of its investment and that it is financially capable of bearing the risk of such investment for an indefinite period of time. The Buyer has no need for liquidity in its investment in the Shares for the foreseeable future and is able to bear the risk of that investment for an indefinite period. The Buyer understands that there presently is no public market for the Shares and none is anticipated to develop in the foreseeable future. The Buyer’s present financial condition is such that the Buyer is under no present or contemplated future need to dispose of any portion of the Shares subscribed for hereby to satisfy any existing or contemplated undertaking, need or indebtedness. The Buyer’s overall commitment to investments which are not readily marketable is not disproportionate to its net worth and the investment in the Company will not cause such overall commitment to become excessive.

(d)The Buyer acknowledges that the Shares have not been and will not be registered under the Securities Act, or any state securities act, and are being sold on the basis of exemptions from registration under the Securities Act and applicable state securities acts, except those state securities acts that require registration of the Shares thereunder. Reliance on such exemptions, where applicable, is predicated in part on the accuracy of the Buyer’s representations and warranties set forth herein. The Buyer acknowledges and hereby agrees that the Shares will not be transferable under any circumstances unless the Buyer either registers the Shares in accordance with federal and state securities laws or finds and complies with an available exemption under such laws. Accordingly, the Buyer hereby acknowledges that there can be no assurance that it will be able to liquidate its investment in the Company.

(e)There are substantial risk factors pertaining to an investment in the Company. The Buyer acknowledges that it has read the information set forth above regarding certain of such risks and is familiar with the nature and scope of all such risks, including, without limitation, risks 

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arising from the fact that the Company is an entity with limited operating history and financial resources; and the Buyer is fully able to bear the economic risks of such investment for an indefinite period, and can afford a complete loss thereof.

(f)The Buyer has been given the opportunity to (i) ask questions of and receive answers from the Company and its designated representatives concerning the terms and conditions of the offering, the Company and the business and financial condition of the Company and (ii) obtain any additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to assist the Buyer in evaluating the advisability of the purchase of the Shares and an investment in the Company. The Buyer further represents and warrants that, prior to signing this Agreement, it has asked such questions, received such answers and obtained such information as it has deemed necessary or advisable to evaluate the merits and risks of the purchase of the Shares and an investment in the Company. The Buyer is not relying on any oral representation made by any person as to the Company or its operations, financial condition or prospects.

(g)The Buyer understands that no federal, state or other governmental authority has made any recommendation, findings or determination relating to the merits of an investment in the Company.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

Section 4.1Organization and Good Standing. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware.

Section 4.2Power and Authority; Enforceability. This Agreement constitutes the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms. The Company has full power and authority to execute and deliver this Agreement and to perform its obligations hereunder. The Company has taken all actions necessary to authorize the execution and delivery of this Agreement, the performance of its obligations hereunder, and the consummation of the transactions contemplated hereby. This Agreement has been duly authorized, executed, and delivered by, and is enforceable against, the Company.

Section 4.3No Violation; Necessary Approvals. Neither the execution and delivery of this Agreement by the Company, nor the consummation or performance by the Company of any of transactions contemplated hereby, will: (a) with or without notice or lapse of time, constitute, create or result in a breach or violation of, default under, loss of benefit or right under or acceleration of performance of any obligation required under any Law, Order, contract or Permit to which the Company is a party or by which it is bound or any of its assets are subject, or any provision of the Company’s organizational documents as in effect on the Closing Date; (b) result in the imposition of any lien, claim or encumbrance upon any assets owned by the Company; (c) require any Consent under any contract or organizational document to which the Company is a party or by which it is bound; (d) require any Permit under any Law or Order other than (i) required filings, if any, with the SEC and (ii) notifications or other filings with state or federal regulatory agencies after the Closing that are necessary or convenient and do not require approval of the 

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agency as a condition to the validity of the transactions contemplated hereunder; or (e) trigger any rights of first refusal, preferential purchase or similar rights with respect to any of the Shares.

Section 4.4Authorization of the Shares. The Shares have been duly authorized and, when issued in accordance with this Agreement and the Company’s certificate of incorporation, the Shares will be duly and validly issued, fully paid and non-assessable shares of Class B Common Stock and will be free and clear of all Liens and claims, other than restrictions on transfer imposed by the Securities Act and applicable state securities laws.

ARTICLE V

MISCELLANEOUS

Section 5.1Entire Agreement. This Agreement, together with the certificates, documents, instruments and writings that are delivered pursuant hereto, constitutes the entire agreement and understanding of the parties hereto in respect of its subject matter 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.

Section 5.2Successors. All of the terms, agreements, covenants, representations, warranties and conditions of this Agreement are binding upon, and inure to the benefit of and are enforceable by, the parties hereto and their respective successors.

Section 5.3Assignments. Except as otherwise provided herein, no party hereto may assign either this Agreement or any of its rights, interests or obligations hereunder without the prior written approval of the other party. Any purported assignment in violation of this Section 5.3 shall be void and ineffectual and shall not operate to transfer or assign any interest or title to the purported assignee.

Section 5.4Waiver of Jury Trial. THE PARTIES HERETO EACH HEREBY AGREE TO WAIVE THE RESPECTIVE RIGHTS TO JURY TRIAL OF ANY DISPUTE BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OTHER AGREEMENTS RELATING HERETO OR ANY DEALINGS AMONG THEM RELATING TO THE TRANSACTIONS. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL ACTIONS THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THE TRANSACTIONS, INCLUDING, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THE PARTIES HERETO EACH ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP AND THAT THEY WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED ORALLY OR IN WRITING, AND THE WAIVER WILL APPLY TO ANY AMENDMENTS, RENEWALS, 

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SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING HERETO. IN THE EVENT OF AN ACTION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO TRIAL BY A COURT.

Section 5.5Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed an original but all of which together will constitute one and the same instrument.

Section 5.6Headings. The article and section headings contained in this Agreement are inserted for convenience only and will not affect in any way the meaning or interpretation of this Agreement.

Section 5.7Governing Law. This Agreement, the entire relationship of the parties hereto and any litigation between the parties (whether grounded in contract, tort, statute, law or equity) shall be governed by, construed in accordance with and interpreted pursuant to the laws of the State of Delaware, without giving effect to its choice of laws principles.

Section 5.8Amendments. This Agreement may not be amended, modified or waived as to any particular provision, except by a written instrument executed by the parties hereto.

Section 5.9Severability. The provisions of this Agreement will be deemed severable and the invalidity or unenforceability of any provision will not affect the validity or enforceability of the other provisions hereof; provided that if any provision of this Agreement, as applied to any party hereto or to any circumstance, is adjudged by a Governmental Body, arbitrator or mediator not to be enforceable in accordance with its terms, the parties hereto agree that the Governmental Body, arbitrator or mediator making such determination will have the power to modify the provision in a manner consistent with its objectives such that it is enforceable, and/or to delete specific words or phrases, and in its reduced form, such provision will then be enforceable and will be enforced.

Section 5.10Expenses. Except as otherwise expressly provided in this Agreement, each party hereto will bear its own costs and expenses incurred in connection with the preparation, execution and performance of this Agreement and the consummation of the transactions contemplated hereby, including all fees and expenses of agents, representatives, financial advisors, legal counsel and accountants.

Section 5.11Construction. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties hereto and no presumption or burden of proof will arise favoring or disfavoring any party hereto because of the authorship of any provision of this Agreement. Any reference to any federal, state, local or foreign Law will be deemed also to refer to Law as amended and all rules and regulations promulgated thereunder, unless the context requires otherwise. The words “include,” “includes” and “including” will be deemed to be followed by “without limitation.” Pronouns in masculine, feminine and neuter genders will be construed to include any other gender, and words in the singular form will be construed to include the plural and vice versa, unless the context otherwise requires. The words “this Agreement,” “herein,” “hereof,” “hereby,” “hereunder” and words of similar import refer to 

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this Agreement as a whole and not to any particular subdivision unless expressly so limited. The parties hereto intend that each representation, warranty, and covenant contained herein will have independent significance. If any party hereto has breached any representation, warranty, or covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant relating to the same subject matter (regardless of the relative levels of specificity) which such party hereto has not breached will not detract from or mitigate the fact that such party hereto is in breach of the first representation, warranty or covenant.

Section 5.12Waiver. No waiver by any party hereto of any default, misrepresentation or breach of warranty or covenant hereunder, whether intentional or not, may be deemed to extend to any prior or subsequent default, misrepresentation or breach of warranty or covenant hereunder or affect in any way any rights arising because of any prior or subsequent occurrence.

 

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IN WITNESS WHEREOF, the undersigned have executed this Agreement to be effective as of the date first set forth above.

COMPANY:

FIRST RESERVE SUSTAINABLE GROWTH CORP.

 

By:/s/ Neil A. Wizel__________________________________

Name:Neil A. Wizel

Title:Chief Executive Officer

 

BUYER:

FIRST RESERVE SUSTAINABLE GROWTH SPONSOR LLC

By: FRSGC Management Company LLC, its sole member

By: Neil A. Wizel, its sole member

 

By:/s/ Neil A. Wizel____________________________________

Name:Neil A. Wizel

Title:Sole Member

 

 

 

Signature Page to Securities Subscription AgreementExhibit
4.1

 

COMSOVEREIGN
HOLDING CORP.

PROMISSORY NOTE

 

Note
Number: T-

 

	$[an aggregate
    of 1,500,000]	January
    29, 2021

 

For
value received, COMSOVEREIGN HOLDING CORP., a Nevada corporation (the “Company”), unconditionally promises
to pay to [       ] or its assigns (the “Holder”) the principal sum of $[       ] with interest on
the outstanding principal amount at the rate of 10% per annum (subject to adjustment as set forth below), or the maximum rate
permissible by law, whichever is less, and calculated on the basis of a 365 day year for the actual number of days elapsed. Interest
shall commence on the date hereof and shall continue on the outstanding principal balance hereof until paid in full. The principal
balance of this Note, together with the accrued unpaid interest thereon shall be due and payable on the dates and in the manner
set forth below.

 

1.
Reference to Merger Agreement. This Promissory Note (this “Note”) is one of a series of promissory notes
(collectively, the “Term Debentures”) which are delivered pursuant to and in accordance with the terms and
conditions of that certain Agreement and Plan of Merger, dated as of August 24, 2020, by and between the Company, CHC Merger Sub
8, LLC, Skyline Partners Technology LLC (“Skyline”), and the other parties named therein (as it may be amended,
the “Merger Agreement”). Capitalized terms used in this Note without definition herein shall have the meanings
given to them in the Merger Agreement.

 

2.
Maturity; Payments; Prepayment; Waiver of Presentment.

 

(a)
Maturity Date. This Note shall mature on the earlier of (i) January 1, 2022, (ii) the date on which the Sales Condition (set
forth below) is satisfied, or (iii) the date on which the Financing Condition (set forth below) is satisfied (the “Maturity
Date”).

 

(i)
Sales Condition. As used herein, the “Sales Condition” shall mean an aggregate of $6,000,000
worth of products and services are sold following the Closing Date by (A) Skyline and (B) the Company and its subsidiaries and
affiliates (other than Skyline) to the Skyline customers that are identified on Annex A to this Note.

 

(ii)
As used herein, the “Financing Condition” shall mean the Company issues and sells shares of CHC Common
Stock (as defined below) or debt securities to investors after the Closing Date in a bona-fide arms-length financing transaction
for aggregate consideration of at least $12,000,000.

 

(b)
Payments.

 

(i)
The Company shall make semi-annual payments of all accrued, unpaid interest on the unpaid principal amount on December
1 and on June 1 of each year that this Note is outstanding, commencing on June 1, 2021.

 

     

     

    

 

(ii)
All payments of principal and interest shall be in lawful money of the United States of America and shall be payable at
the address of the Holder listed on the Company’s records, unless another place of payment shall be specified in writing
by the Holder. All payments shall be applied first to any fees or expenses due to the Holder then to accrued interest, including
any interest that accrues after the commencement of a proceeding by or against the Company under Title 11 of the United States
Code, and thereafter to the outstanding principal balance hereof. If any payments on this Note become due on a Saturday, Sunday
or a public holiday under the laws of the State of Arizona, such payment shall be made on the next succeeding business day and
such extension of time shall be included in computing interest in connection with such payment. Each payment which is made on
the Term Debentures (whether of principal, interest, or any other amount) shall be allocated and remitted pro rata among
the Holders of the outstanding Term Debentures, based upon the aggregate outstanding principal amount on the Term Debentures.
If any Holder receives any payment (whether voluntary, involuntary, by application of offset, or otherwise) under this Note in
excess of Holder’s pro rata share of the payments received by all Holders of the Term Debentures, then Holder shall
hold in trust all such excess payments for the benefit of the Holders of the other Term Debentures, and shall pay such amounts
held in trust to such other Holders upon demand.

 

(c)
Prepayment. This Note may be prepaid by the Company in whole or in part prior to the Maturity Date without penalty or premium.

 

(d)
Waiver. The Company hereby waives demand, notice, presentment, protest and notice of dishonor.

 

3.
Repayment.

 

(a)
At any time after the Maturity Date, if this Note has not been paid in full, each Holder, may: (i) demand payment of the entire
outstanding principal balance and all unpaid accrued interest under this Note (a “Payment Demand”); or (ii)
continue to hold this Note, in which case the interest rate shall be increased and this Note shall thereafter accrue interest
at the rate of 15% per annum, compounded semiannually, until such time as this Note is paid in full.

 

(b)
Corporate Transaction. In the event that (i) the Company enters into an agreement pertaining to (A) a sale, lease, conveyance,
exclusive license or other disposition of all or substantially all of the assets of the Company or (B) (1) any consolidation or
merger of the Company with or into any other corporation or other entity or person, or any other corporate reorganization, in
which the equityholders of the Company immediately prior to such consolidation, merger or reorganization own less than fifty percent
(50%) of the voting power of the surviving or successor entity (or in the event stock or ownership interests of an affiliated
entity are issued in such transaction, less than fifty percent (50%) of the voting power of such affiliated entity) immediately
after such consolidation, merger or reorganization; or (2) any transaction or series of related transactions to which the Company
is a party in which in excess of fifty percent (50%) of the Company’s outstanding voting power is transferred; other than
(x) any consolidation or merger effected exclusively to change the domicile of the Company, or (y) any transaction or series of
transactions principally for bona fide equity financing purposes in which cash is received by the Company or any successor or
indebtedness of the Company is cancelled or converted or a combination thereof (each such event described in (A) and (B) above
being referred to herein as a “Corporate Transaction”), and (ii) this Note has not previously been paid in
full, then, before any distribution or payment shall be made to the holders of equity securities of the Company, the Holder shall
be entitled to be paid the principal balance of this Note then outstanding plus unpaid accrued interest thereon through the date
of such Corporate Transaction.

 

4.
Default.

 

(a)
Each of the following events shall be an “Event of Default” hereunder:

 

(i)
the Company engages in any liquidation, dissolution or winding up;

 

(ii)
the Company transfers substantially all of the assets or voting control over a material subsidiary;

 

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(iii)
the Company files any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium law
or any other law for the relief of, or relating to, debtors, now or hereafter in effect, or makes any assignment for the benefit
of creditors or takes any corporate action in furtherance of any of the foregoing;

 

(iv)
an involuntary petition is filed against the Company under any bankruptcy statute now or hereafter in effect and such
petition continues without dismissal for a period of 90 days or more, or a custodian, receiver, trustee, assignee for the benefit
of creditors (or other similar official) is appointed to take possession, custody or control of any property of the Company;

 

(v)
the Company executes an assignment for the benefit of creditors with respect to a majority of its assets;

 

(vi)
the Company fails to make any payment of interest under this Note within five (5) days of the date due;

 

(vii)
the Company fails to pay this Note and any and all unpaid principal, accrued interest or other amounts owing hereunder
at any time on or after Holder makes a Payment Demand following the Maturity Date;

 

(viii)
any default under any agreement of the Company with a third party which consists of the failure to pay indebtedness for
borrowed money in excess of $2,500,000 at maturity or which results in a right by such third party, whether or not exercised,
to accelerate the maturity of such indebtedness for borrowed money of the Company, including, without limitation, the occurrence
of any Event of Default (as defined) under the CHC Convertible Debentures issued pursuant to the Merger Agreement;

 

(ix)
(A) the Company fails to file any form, report or document required to be filed with the Securities Exchange Commission
within 10 days of the due date thereof, (B) the Company voluntarily begins a process to delist from any exchange to which it is
registered, or (C) the Company receives any delisting warning from any exchange with which it is registered; and

 

(x) the
Company breaches any covenant or agreement in any material respect made by Company in this Note (except as set forth in (vi)
above) and, as to any breach that is capable of cure, the Company fails to cure such breach within thirty (30) days of the
Company becoming aware of the occurrence of such breach.

 

(b)
Upon the occurrence and following any Event of Default hereunder, all unpaid principal, accrued interest and other amounts
owing hereunder shall, at the option of the Holder, and, in the case of an Event of Default pursuant to Section 3(a)(iii) or (iv)
above, automatically, be immediately due, payable and collectible by the Holder pursuant to applicable law.

 

(c)
In the event of any Event of Default hereunder, the Company shall pay all reasonable attorneys’ fees and court costs
incurred by the Holder in enforcing and collecting this Note.

 

(d)
Upon and during the occurrence of any Event of Default, interest shall accrue thereafter at the rate of 15% per annum compounded
semiannually.

 

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5.
Notification of Default or Satisfaction of Sales Condition or Financing Condition. Until the payment of all amounts due under
the Term Debentures, the Company shall give written notice to Holder of any event which, with or without notice or passage of
time or both would (i) constitute an Event of Default, (ii) constitute satisfaction of the Sales Condition, or (iii) constitute
satisfaction of the Financing Condition, in each case, within five business days of becoming aware of such event.

 

6.
Usury. In no event shall the interest rate or rates payable under this Note plus any other amounts paid in connection herewith
and therewith, exceed the highest rate permissible under any law that a court of competent jurisdiction shall, in a final determination,
deem applicable. The Company and the Holder, in executing and delivering this Note, intend legally to agree upon the rate or rates
of interest and manner of payment stated within it; provided, however, that, anything contained herein to the contrary
notwithstanding, if said rate or rates of interest or manner of payment exceeds the maximum allowable under applicable law, then,
ipso facto, as of the date of this Note, the Company is and shall be liable only for the payment of such maximum as allowed
by law, and payment received from the Company in excess of such legal maximum, whenever received, shall be applied to reduce the
principal balance of any remaining obligations to the extent of such excess.

 

7.
Miscellaneous.

 

(a)
Tax Status of Note. The Company intends that this Note represents indebtedness of the Company for federal income tax purposes,
and that this Note does not bear original issue discount as determined for U.S. federal income tax purposes. The Company shall
report for all U.S. federal income tax purpose in accordance with intentions described in the preceding sentence.

 

(b)
Notices. All notices required or permitted by this Note shall be in writing and shall be deemed effectively given: (i) upon
personal delivery to the recipient; (ii) when sent by confirmed facsimile or electronic mail during normal business hours of the
recipient, and if not sent during normal business hours of the recipient, then on the next business day; (iii) five calendar days
after having been sent by registered or certified mail, with return receipt requested and postage prepaid; or (iv) one business
day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.
All communications to the Company shall be sent to the Company at 5000 Quorum Drive, Suite 400, Dallas, Texas 75254, Attention:
Chief Financial Officer, Email: bmihelich@comsovereign.com (or at such other address or to the attention of such other person
as the Company may designate by ten days’ advance written notice to the Holder) with a copy to Pryor Cashman LLP, 7 Times
Square, New York, New York 10036, Attention: Eric M. Hellige, Esq., Email: ehellige@pryorcashman.com; and to Holder at the address
set forth on the Signature Page attached hereto (or at such other address or to the attention of such other person as Holder may
designate by ten days’ advance written notice to the Company).

 

(c)
Successors and Assigns. The terms and conditions of this Note shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties.

 

(d)
Governing Law. This Note shall be governed by and construed under the laws of the State of Delaware as applied to agreements
among Delaware residents, made and to be performed entirely within the State of Delaware.

 

(e)
Titles and Subtitles. The titles and subtitles used in this Note are used for convenience only and are not to be considered
in construing or interpreting this Note.

 

(f)
Amendment and Waiver. This Note may be amended only with the written consent of the Company and the Holder.

 

(g)
Cumulative Remedies. The Holder’s rights and remedies hereunder shall be cumulative. No exercise by the Holder of one
right or remedy shall be deemed an election, and no waiver by the Holder of any Event of Default shall be deemed a continuing
waiver.

 

[Remainder
of Page Intentionally Left Blank]

 

    4

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Note to be duly executed and delivered as of the day and year first written above.

 

	 	COMSOVEREIGN HOLDING CORP.
	 	 	 
	 	By:
     	 
	 	 	Name:
	 	 	Title:

 

[SIGNATURE
PAGE TO PROMISSORY NOTE]

 

     

     

    

 

ANNEX
A

 

List
of Skyline Customers

 

1.
T-Mobile

 

2.
Rogers Wireless

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