Document:

Exhibit 4.7

 

ASSIGNMENT,
ASSUMPTION AND AMENDMENT AGREEMENT

 

This Assignment, Assumption
and Amendment Agreement (this “Agreement”) is made as of [__], 2020, by and among Schultze Special Purpose Acquisition
Corp., a Delaware corporation (the “Company”), Clever Leaves Holdings Inc., a corporation organized under the
laws of British Columbia, Canada (“Holdco”), and Continental Stock Transfer & Trust Company, a New York
corporation (the “Warrant Agent”).

 

WHEREAS, the
Company and the Warrant Agent are parties to that certain Warrant Agreement, dated as of December 10, 2018, and filed with the
United States Securities and Exchange Commission on December 14, 2018 (the “Existing Warrant Agreement”; capitalized
terms used herein but not otherwise defined in this Agreement shall have the meanings ascribed to such terms in the Existing Warrant
Agreement);

 

WHEREAS, pursuant
to the Existing Warrant Agreement, the Company issued (a) 4,150,000 warrants to the Sponsor (collectively, the “Private
Warrants”) to purchase shares of the Company’s common stock, par value $0.0001 per share (“Common Stock”)
simultaneously with the closing of the Public Offering, at a purchase price of $1.00 per Private Warrant, with each Private Warrant
being exercisable for one share of Common Stock and with an exercise price of $11.50 per share and (b) 13,000,000 warrants to public
investors in the Public Offering (collectively, the “Public Warrants”) to purchase shares of Common Stock, with
each Public Warrant being exercisable for one share of Common Stock and with an exercise price of $11.50 per share;

 

WHEREAS, on
July 25, 2020, a Business Combination Agreement (as amended, amended and restated, supplemented or otherwise modified from time
to time, the “Business Combination Agreement”) was entered into by and among the Company, Holdco, Novel Merger
Sub Inc., a Delaware corporation and a wholly owned direct subsidiary of Holdco (“Merger Sub”), and Clever Leaves
International Inc., a corporation organized under the laws of British Columbia, Canada;

 

WHEREAS, all
of the Warrants are governed by the Existing Warrant Agreement;

 

WHEREAS, pursuant
to the provisions of the Business Combination Agreement, among other things, Merger Sub will merge with and into the Company with
the Company surviving such merger as a wholly owned subsidiary of Holdco (the “Merger”), and, as a result of
the Merger, all shares of Common Stock shall be converted into the right to receive common shares of Holdco (“Holdco Common
Shares”);

 

WHEREAS, upon
consummation of the Merger, as provided in Section 4.5 of the Existing Warrant Agreement, each of the issued and outstanding Warrants
will no longer be exercisable for shares of Common Stock but instead will be exercisable (subject to the terms and conditions of
the Existing Warrant Agreement as amended hereby) for Holdco Common Shares;

 

WHEREAS, the
board of directors of the Company has determined that the consummation of the transactions contemplated by the Business Combination
Agreement will constitute a Business Combination (as defined in Section 3.2 of the Existing Warrant Agreement);

 

WHEREAS, in
connection with the Merger, the Company desires to assign all of its right, title and interest in the Existing Warrant Agreement
to Holdco and Holdco wishes to accept such assignment; and

 

     

     

    

 

WHEREAS, Section
9.8 of the Existing Warrant Agreement provides that the Company and the Warrant Agent may amend the Existing Warrant Agreement
without the consent of any registered holders for the purpose of curing any ambiguity, or curing, correcting or supplementing any
defective provision contained therein or adding or changing any other provisions with respect to matters or questions arising under
the Existing Warrant Agreement as the Company and the Warrant Agent may deem necessary or desirable and that the Company and the
Warrant Agent deem shall not adversely affect the interest of the registered holders.

 

NOW, THEREFORE,
in consideration of the foregoing and of the mutual covenants and agreements contained herein, the receipt and sufficiency of which
is hereby acknowledged, and intending to be legally bound, the parties hereto hereby agree as follows:

 

1. Assignment
and Assumption; Consent.

 

1.1 Assignment
and Assumption. The Company hereby assigns to Holdco all of the Company’s right, title and interest in and to the Existing
Warrant Agreement (as amended hereby) as of the Merger Effective Time (as defined in the Business Combination Agreement). Holdco
hereby assumes, and agrees to pay, perform, satisfy and discharge in full, as the same become due, all of the Company’s liabilities
and obligations under the Existing Warrant Agreement (as amended hereby) arising from and after the Merger Effective Time.

 

1.2 Consent.
The Warrant Agent hereby consents to the assignment of the Existing Warrant Agreement by the Company to Holdco pursuant to Section
1.1 hereof effective as of the Merger Effective Time, and the assumption of the Existing Warrant Agreement by Holdco from the
Company pursuant to Section 1.1 hereof effective as of the Merger Effective Time, and to the continuation of the Existing
Warrant Agreement in full force and effect from and after the Merger Effective Time, subject at all times to the Existing Warrant
Agreement (as amended hereby) and to all of the provisions, covenants, agreements, terms and conditions of the Existing Warrant
Agreement and this Agreement.

 

2. Amendment
of Existing Warrant Agreement. The Company and the Warrant Agent hereby amend the Existing Warrant Agreement as provided in
this Section 2, effective as of the Merger Effective Time, and acknowledge and agree that the amendments to the Existing
Warrant Agreement set forth in this Section 2 are necessary or desirable and that such amendments do not adversely affect
the interests of the registered holders:

 

2.1 Preamble.
The preamble on page one of the Existing Warrant Agreement is hereby amended by deleting “Schultze Special Acquisition Corp.,
a Delaware corporation” and replacing it with “Clever Leaves Holdings Inc., a corporation organized under the laws
of British Columbia, Canada”. As a result thereof, all references to the “Company” in the Existing Warrant Agreement
shall be references to Clever Leaves Holdings Inc. rather than Schultze Special Acquisition Corp.

 

2.2 Recitals.
The recitals on pages one and two of the Existing Warrant Agreement are hereby deleted and replaced in their entirety as follows:

 

“WHEREAS,
on December 10, 2018, Schultze Special Acquisition Corp. (“Schultze”) entered into that certain Warrant Purchase
Agreement, dated December 10, 2018 (the “Warrant Purchase Agreement”), with Schultze Special Purpose Acquisition
Sponsor, LLC (the “Sponsor”), pursuant to which the Sponsor agreed to purchase an aggregate of 4,150,000 warrants
simultaneously with the closing of the Public Offering (as defined below) bearing the legend set forth in Exhibit B hereto
(the “Private Warrants”) at a purchase price of one dollar ($1.00) per Private Warrant; and

 

    2

     

    

 

WHEREAS,
on December 13, 2018, Schultze consummated its initial public offering (“Public Offering”) of 13,000,000 units
(the “Units”), with each Unit consisting of one share of common stock of Schultze, par value $0.0001 per share
(“Schultze Common Stock”), and one warrant, where each warrant entitles the holder to purchase one share of
Schultze Common Stock at a price of $11.50 per share (the “Public Warrants” and together with the Private Warrants,
the “Schultze Warrants”); and

 

WHEREAS,
Schultze filed with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S-1,
No. 333-228494 (the “Registration Statement”) and prospectus (the “Prospectus”), for the
registration, under the Securities Act of 1933, as amended (the “Act”), of the offering and sale of the Units,
the Public Warrants and the Schultze Common Stock included in the Units; and

 

WHEREAS,
Schultze, the Company, Clever Leaves International Inc., a corporation organized under the laws of British Columbia, Canada (“Clever
Leaves”), and Novel Merger Sub Inc., a Delaware corporation and a direct wholly owned subsidiary of the Company (“Merger
Sub”) are parties to that certain Business Combination Agreement, dated as of July 25, 2020 (as amended, amended and
restated, supplemented or otherwise modified from time to time, the “Business Combination Agreement”), which,
among other things, provides for the merger of Merger Sub with and into Schultze with Schultze surviving such merger as a wholly
owned subsidiary of the Company (the “Merger”), and, as a result of the Merger, all shares of Schultze Common
Stock shall be converted into and exchanged for the right to receive common shares of the Company (“Company Common Shares”);
and

 

WHEREAS, on November
9, 2020, the Company, Schultze, the Sponsor and Clever Leaves entered into that certain Amendment No. 1 to Transaction Support
Agreement, pursuant to which the Sponsor agreed to surrender and forfeit a certain amount of Private Warrants immediately prior
to the consummation of the Merger; and

 

WHEREAS,
on [__], 2020, pursuant to the terms of the Business Combination Agreement, the Company, Schultze and the Warrant Agent entered
into an Assignment, Assumption and Amendment Agreement (the “Warrant Assumption Agreement”), pursuant to which
Schultze assigned this Agreement to the Company and the Company assumed this Agreement from Schultze; and

 

WHEREAS,
Schultze may issue up to an additional 750,000 Schultze Warrants (the “Working Capital Warrants”) in satisfaction
of the Sponsor Loans (as defined in the Business Combination Agreement) and that certain Promissory Note dated September 13, 2018
issued to Sponsor in the principal amount of $250,000; and

 

WHEREAS,
pursuant to the Business Combination Agreement, the Warrant Assumption Agreement and Section 4.5 of this Agreement, effective
as of the Merger Effective Time (as defined in the Business Combination Agreement), each of the issued and outstanding Schultze
Warrants (including the Working Capital Warrants) were no longer exercisable for shares of Schultze Common Stock but instead became
exercisable (subject to the terms and conditions of this Agreement) for Company Common Shares (each a “Warrant”
and collectively, the “Warrants”); and

 

    3

     

    

 

WHEREAS,
the Company desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing to so act, in connection
with the issuance, registration, transfer, exchange, redemption and exercise of the Warrants; and

 

WHEREAS,
the Company desires to provide for the form and provisions of the Warrants, the terms upon which they shall be issued and exercised,
and the respective rights, limitation of rights, and immunities of the Company, the Warrant Agent, and the holders of the Warrants;
and

 

WHEREAS,
all acts and things have been done and performed which are necessary to make the Warrants, when executed on behalf of the Company
and countersigned by or on behalf of the Warrant Agent, as provided herein, the valid, binding and legal obligations of the Company,
and to authorize the execution and delivery of this Agreement.

 

NOW, THEREFORE,
in consideration of the mutual agreements herein contained, the parties hereto agree as follows:”

 

2.3 Reference
to Company Common Shares. (i) All references to “Common Stock” in the Existing Warrant Agreement (including all
Exhibits thereto) shall mean “Company Common Shares” and (ii) all references to “stockholders” shall mean
“shareholders.”

 

2.4 Detachability
of Warrants. Section 2.5 of the Existing Warrant Agreement is hereby deleted and replaced with the following:

 

“[INTENTIONALLY
OMITTED]”

 

Except that the defined
term “Business Day” set forth therein shall be retained for all purposes of the Existing Warrant Agreement.

 

2.5 Post
IPO Warrants.

 

2.5.1 Section
2.7 of the Existing Warrant Agreement is hereby deleted in its entirety.

 

2.5.2 All
references to “Post IPO Warrant” in the Existing Warrant Agreement (including all Exhibits thereto) shall be deleted.

 

2.6 Duration
of Warrants. The first sentence of Section 3.2 of the Existing Warrant Agreement is hereby deleted and replaced with the following:

 

“A Warrant
may be exercised only during the period commencing on the date that is thirty (30) days after the consummation of the transactions
contemplated by the Business Combination Agreement (a “Business Combination”), and terminating at 5:00 p.m.,
New York City time on the earlier to occur of: (x) the date that is five (5) years after the date on which the Business Combination
is completed, (y) the liquidation of the Company, or (z) other than with respect to the Private Warrants, the Redemption Date (as
defined below) as provided in Section 6.2 hereof (the “Expiration Date”); provided, however,
that the exercise of any Warrant shall be subject to the satisfaction of any applicable conditions, as set forth in Subsection
3.3.2 below with respect to an effective registration statement.”

 

    4

     

    

 

2.7 Book-Entry.
A new Section 3.3.6 is hereby inserted as follows:

 

“Notwithstanding
anything herein to the contrary, any Company Common Share issued upon the exercise of a Warrant may be issued by the Company in
uncertificated or book-entry form.”

 

2.8 Replacement
of Securities upon Reorganization, etc. The first sentence and the second sentence of Section 4.5 of the Existing Warrant Agreement
is hereby amended to include the phrase “amalgamation, plan of arrangement” after the word “merger”.

 

2.9 No
Fractional Warrants or Shares. The third sentence of Section 4.7 of the Existing Warrant Agreement is hereby deleted and replaced
with the following:

 

“If,
by reason of any adjustment made pursuant to this Section 4, the holder of any Warrant would be entitled, upon the exercise of
such Warrant, to receive a fractional interest in a share, the Company shall, upon such exercise, round down to the nearest whole
number of Company Common Shares to be issued to the Warrant holder.”

 

2.10 Notices.

 

2.10.1 Section
9.2 of the Existing Warrant Agreement is hereby amended in part to change the delivery of notices to the Company to the following:

 

“Clever
Leaves Holdings Inc.

489 Fifth
Avenue, 27th Floor,

New York,
NY 10017

Attn: CEO

Email: kyle.detwiler@cleverleaves.com”

 

2.10.2 Section
9.2 of the Existing Warrant Agreement is hereby further amended in part to change the delivery of a copy of notices sent to Greenberg
Traurig, LLP to be replaced with the following:

 

“Freshfields
Bruckhaus Deringer US LLP

601 Lexington
Avenue, 31st Floor

New York, NY
10022

Attn: Sebastian
L. Fain, Esq.

Pam L. Marcogliese,
Esq.

Email: sebastian.fain@freshfields.com

pamela.marcogliese@freshfields.com”

 

2.11 Currency.
A new Section 9.11 is hereby inserted as follows:

 

“Currency.
Unless otherwise specified in this Agreement, all references to currency, monetary values and dollars set forth herein shall mean
U.S. dollars (USD) and all payments hereunder shall be made in U.S. dollars (USD).”

 

    5

     

    

 

2.12 Exhibit
A to the Existing Warrant Agreement is hereby amended by deleting Exhibit A in its entirety and replacing it with new Exhibit A
attached hereto.

 

3. Miscellaneous
Provisions.

 

Effectiveness of Warrant 

. Each of the parties hereto acknowledges
and agrees that the effectiveness of this Agreement shall be expressly subject to the occurrence of the Merger (as defined in the
Business Combination Agreement) and shall automatically be terminated and shall be null and void if the Business Combination Agreement
shall be terminated for any reason.

 

3.2 Successors.
All the covenants and provisions of this Agreement by or for the benefit of the Company or the Warrant Agent shall bind and inure
to the benefit of their respective successors and assigns.

 

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

 

3.4 Applicable
Law. The validity, interpretation and performance of this Agreement shall be governed in all respects by the laws of the State
of New York, without giving effect to conflict of law principles that would result in the application of the substantive laws of
another jurisdiction. The parties hereby agree that any action, proceeding or claim against a party arising out of or relating
in any way to this Agreement shall be brought and enforced in the courts of the State of New York or the United States District
Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive.
Each of the parties hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum.

 

3.5 Examination
of the Warrant Agreement. A copy of this Agreement shall be available at all reasonable times at the office of the Warrant
Agent in the Borough of Manhattan, City and State of New York, for inspection by the registered holder of any Warrant. The Warrant
Agent may require any such holder to submit his Warrant for inspection by it.

 

3.6 Counterparts.
This Agreement may be executed in any number of original or facsimile counterparts and each of such counterparts shall for all
purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. Signatures
to this Agreement transmitted by electronic mail in PDF form, or by any other electronic means designed to preserve the original
graphic and pictorial appearance of a document (including DocuSign), will be deemed to have the same effect as physical delivery
of the paper document bearing the original signatures.

 

3.7 Effect
of Headings. The section headings herein are for convenience only and are not part of this Agreement and shall not affect the
interpretation thereof.

 

3.8 Reference
to and Effect on Agreements; Entire Agreement.

 

3.8.1 Any
references to “this Agreement” in the Existing Warrant Agreement will mean the Existing Warrant Agreement as amended
by this Agreement. Except as specifically amended by this Agreement, the provisions of the Existing Warrant Agreement shall remain
in full force and effect.

 

3.8.2
This Agreement and the Existing Warrant Agreement, as modified by this Agreement, constitutes the entire understanding of the parties
and supersedes all prior agreements, understandings, arrangements, promises and commitments, whether written or oral, express or
implied, relating to the subject matter hereof, and all such prior agreements, understandings, arrangements, promises and commitments
are hereby canceled and terminated.

 

[Remainder of page
intentionally left blank.]

 

    6

     

    

 

IN WITNESS WHEREOF, each of the parties
has caused this Agreement to be duly executed as of the date first above written.

 

	 	Schultze Special Purpose Acquisition Corp.
	 	 	 
	 	By:	                
	 	Name:	 
	 	Title:	 
	 	 	 
	 	CLEVER LEAVES HOLDINGS INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	CONTINENTAL STOCK TRANSFER & TRUST COMPANY, as Warrant Agent
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

 

7Exhibit 10.7 

 

ESCROW AGREEMENT AMENDMENT

 

Effective as of the
Closing, Section 3.2 of the Escrow Agreement shall be deleted in its entirety and replaced with the following:

 

(a) Forfeiture
of Sponsor Upfront Shares; Release of Sponsor Upfront Escrow Shares and SPAC Director Shares.  Except as otherwise set forth
herein, the Escrow Agent shall hold the shares remaining after any cancellation required pursuant to Section 3.1. Effective
immediately prior to the consummation of the transactions contemplated by the BCA (as defined below), Sponsor shall forfeit and
surrender the Shares Forfeiture Amount, the Escrow Agent shall release such forfeited shares of Common Stock to the Company for
cancellation. Of such remaining shares, the Sponsor Upfront Escrow Shares including the SPAC Director Shares shall be held pursuant
to this Section 3.2(a) and the Sponsor Earn-Out Shares shall be held pursuant to Section 3.2(b). The Sponsor Upfront
Escrow Shares and the SPAC Director Shares shall be held for a period expiring on the earlier of (I) one (1) year following the
date of the consummation of the transactions contemplated by the Business Combination Agreement, dated as of July 25, 2020, by
and among the Company, Clever Leaves Holdings, Inc., Novel Merger Sub Inc. and Clever Leaves International Inc. (the “BCA”)
and (II) the date on which the closing price of the shares of Common Stock on the Trading Market as reported by Bloomberg Financial
L.P. using the AQR function equals or exceeds Twelve Dollars Fifty Cents ($12.50) per share (as adjusted for stock splits, stock
dividends, reorganizations, and recapitalizations) for any twenty (20) trading days within any consecutive thirty (30)-trading-day
period commencing after the 180th day after the consummation of the transactions contemplated by the BCA (such period,
the “Initial Stockholder Upfront Escrow Period”). Upon expiration of the Initial Stockholder Upfront Escrow
Period, the Escrow Agent shall disburse and release to the Initial Stockholders all Sponsor Upfront Escrow Shares and SPAC Director
Shares held with respect to such Initial Stockholders (and any applicable stock power), upon receipt of a written notice executed
by Sponsor (with evidence a copy of such written notice shall have been delivered to Holdco), in form reasonably acceptable to
the Escrow Agent, certifying the expiration of the Initial Stockholder Upfront Escrow Period and the number of Sponsor Upfront
Escrow Shares and SPAC Director Shares to be disbursed and released to each Initial Stockholder. The Escrow Agent shall have no
further duties under this Section 3.2(a) with respect to the Sponsor Upfront Escrow Shares and the SPAC Director Shares
after the disbursement of the Sponsor Upfront Escrow Shares to the Initial Stockholders.

 

(b) Release
of Sponsor Earn-Out Shares. The Escrow Agent shall hold, disburse and release the Sponsor Earn-Out Shares as follows:

 

(i) The Escrow
Agent shall hold the First Level Earn-Out Shares until the closing price per share of the shares of Common Stock equals or exceeds
the First Earn-Out Target at any time prior to or on the First Target Expiration Date. The Escrow Agent shall disburse and release
to Sponsor all First Level Earn-Out Shares (and any applicable stock power), upon receipt of a written notice executed by Sponsor
(with evidence a copy of such written notice shall have been delivered to Holdco), in form reasonably acceptable to the Escrow
Agent, certifying the achievement of the First Earn-Out Target (the “First Earn-Out Target Release Notice”).
In the event that the First Earn-Out Target Release Notice is not delivered on or prior to the First Target Expiration Date, then
the Escrow Agent shall automatically disburse and release
the First Level Earn-Out Shares (and any applicable stock power) to Holdco for cancellation. The Escrow Agent shall have no further
duties under this Section 3.2(b)(i) with respect to the First Level Earn-Out Shares after the disbursement of the First
Level Earn-Out Shares to Sponsor or Holdco, as the case may be.

 

     

    	 

    

 

(ii) Additionally,
the Escrow Agent shall hold the Second Level Earn-Out Shares until the closing price per share of the shares of Common Stock equals
or exceeds the Second Earn-Out Target at any time prior to or on the Second Target Expiration Date. The Escrow Agent shall disburse
and release to Sponsor all Second Level Earn-Out Shares (and any applicable stock power), upon receipt of written notice executed
by Sponsor (with evidence a copy of such written notice shall have been delivered to Holdco), in form reasonably acceptable to
the Escrow Agent, certifying the achievement of the Second Earn-Out Target (the “Second Earn-Out Target Release Notice”).
In the event that the Second Earn-Out Target Release Notice is not delivered on or prior to the Second Target Expiration Date,
then the Escrow Agent shall automatically disburse and release the Second Level Earn-Out Shares (and any applicable stock power)
to Holdco for cancellation. The Escrow Agent shall have no further duties under this Section 3.2(b)(ii) with respect to
the Second Level Earn-Out Shares after the disbursement of the Second Level Earn-Out Shares to Sponsor or Holdco, as the case may
be.

 

(iii) The
Earn-Out Shares and the Earn-Out Targets shall be adjusted to reflect appropriately the effect of any stock splits, reverse splits,
stock dividends, reorganizations, reclassifications and other similar events with respect to the Holdco Common Shares, occurring
on or after the date hereof and prior to the time any such Earn-Out Shares are released to Sponsor or returned to Holdco, as the
case may be.

 

(iv) For
purposes of this Section 3.2:

 

“Available Cash
Amount” means, after giving effect to the exercise of Redemption Rights and payments related thereto, the aggregate amount
of cash held either in or outside the Trust Account, including the aggregate amount of the PIPEs, including, for the avoidance
of doubt, the aggregate amount of the Agreed PIPE (as defined in the BCA) (excluding any PIK Amount) consummated prior to, or as
of, the closing of the transactions contemplated by the BCA.

 

“Closing”
shall have the meaning set forth in the BCA.

 

“Earn-Out Shares”
means the First Level Earn-Out Shares and the Second Level Earn-Out Shares, as the case may be.

 

    2

    	 

    

 

“Earn-Out Targets”
means the First Earn-Out Target and the Second Earn-Out Target, as the case may be.

 

“First Earn-Out
Target” means that the closing price per share of Common Stock on the Trading Market as reported by Bloomberg Financial
L.P. using the AQR function equals or exceeds Twelve Dollars Fifty Cents ($12.50) for any twenty (20) trading days within any consecutive
thirty (30)-trading-day period commencing after Closing

 

“First Level
Earn-Out Shares” means the number of Holdco Common Shares equal to Fifty Percent (50%) of the Sponsor Earn-Out Shares.

 

“First Target
Expiration Date” means the second (2nd) anniversary of the Closing.

 

“Maximum Upfront
Shares Amount” means 1,168,421 Holdco Common Shares. For the avoidance of doubt, the Company may issue up to the aggregate
amount of 2,631,579 shares of Common Stock at $9.50 (or higher) per share for a PIPE in the amount of twenty-five million dollars
($25,000,000) and such issuance pursuant to such PIPE shall in no event reduce the Maximum Upfront Shares Amount.

 

“Minimum Upfront
Shares Amount” means 460,000 Holdco Common Shares.

 

“Net Capital”
means an aggregate amount equal to (A) the Available Cash Amount, minus (B) SPAC’s good faith estimate of the SPAC
Transaction Expenses (as defined in the BCA) delivered to the Company pursuant to Section 3.01(b) of the BCA.

 

“PIK Amount”
means the accrued payment-in-kind interest on the Secured Convertible Notes (as defined in the BCA), which shall be invested into
the Agreed PIPE.

 

“Second Earn-Out
Target” means that the closing price per share of Common Stock on the Trading Market as reported by Bloomberg Financial
L.P. using the AQR function equals or exceeds Fifteen Dollars ($15.00) for any twenty (20) trading days within any consecutive
thirty (30)-trading-day period commencing after Closing.

 

“Second Level
Earn-Out Shares” means the number of Holdco Common Shares equal to Fifty Percent (50%) of the Sponsor Earn-Out Shares.

 

“Second Target
Expiration Date” means the fourth (4th) anniversary of the Closing.

 

“Shares Forfeiture
Amount” means a number of shares of Common Stock equal to (A) 3,250,000 minus (B) the Sponsor Upfront Escrow Shares
minus (C) the Sponsor Earn-Out Shares, if any.

 

“SPAC Director
Shares” means 60,000 Sponsor Upfront Escrow Shares held by members of the Board of Directors of SPAC.

 

    3

    	 

    

 

“Sponsor Earn-Out
Shares” means a number of shares of Common Stock (rounded down to the nearest whole share) equal to (A) the Sponsor
Earn-Out Value, divided by (C) $5.00; provided that the number of Sponsor Earn-Out Shares shall not be less than
zero or greater than 1,300,000.

 

“Sponsor Earn-Out
Value” means an amount equal to (A) the Sponsor Value, minus (B) the Sponsor Upfront Shares Value.

 

“Sponsor Upfront
Escrow Shares” means a number of shares of Common Stock (rounded down to the nearest whole share) equal to (A) the Sponsor
Value, divided by (B) $10.00; provided that the number of Sponsor Upfront Escrow Shares shall not be less than the
Minimum Upfront Shares Amount or greater than the Maximum Upfront Shares Amount.

 

“Sponsor Upfront
Shares Value” means an amount equal to (A) the Sponsor Upfront Escrow Shares, multiplied by (B) $10.00.

 

“Sponsor Value”
means an amount equal to (A) the Net Capital, multiplied by (B) twenty percent (20%).

 

“Trading Market”
means the stock market on which the shares of Common Stock shall be trading at the time of determination.

 

Effective as of the
closing of the transactions contemplated by the BCA, a new Exhibit B shall be inserted in its entirety after Exhibit A to
the Escrow Agreement, as amended, which is an illustrative calculation of (a) Net Capital, (b) Shares Forfeiture Amount, (c) Sponsor
Earn-Out Shares, (d) Sponsor Earn-Out Value, (e) Sponsor Upfront Escrow Shares, (f) Sponsor Upfront Shares Value and (g) Sponsor
Value.

 

Effective as of the
Closing, the following Section 3.3 shall be inserted in its entirety immediately following Section 3.2 of the Escrow
Agreement, as amended.

 

3.3 Effective
as of the closing of the transactions contemplated by the BCA, the shares of Common Stock held in escrow pursuant to the terms
of this Agreement shall become common shares of Holdco (“Holdco Common Shares”) in accordance with the terms
and conditions of the BCA. Effective as of the Closing of the transactions contemplated by the BCA and for purposes of this Agreement,
references to shares of “Common Stock” in this Agreement are hereby deemed to refer to Holdco Common Shares. Effective
as of the closing of the transactions contemplated by the BCA, Holdco shall be deemed to be “the Company” for all purposes
of this Agreement.

 

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00316-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00316-of-00352.parquet"}]]