Document:

crsr-ex101_6.htm

Exhibit 10.1

EXECUTION VERSION

THIRD AMENDMENT

 

THIS THIRD AMENDMENT (this “Amendment”) dated as of November 28, 2022 to the Credit Agreement referenced below is by and among Corsair Gaming, Inc., a Delaware corporation (the “Borrower”), the Guarantors party hereto, the Lenders party hereto and BANK OF AMERICA, N.A., as Agent (in such capacity, the “Administrative Agent”).

 

W I T N E S S E T H

 

WHEREAS, credit facilities have been extended to the Borrower pursuant to that certain Credit Agreement (as amended, modified, supplemented and extended from time to time, the “Credit Agreement”), dated as of September 3, 2021, among the Borrower, the Guarantors party thereto, the Lenders party thereto and the Administrative Agent;  

 

WHEREAS, the Borrower has requested certain modifications to the Credit Agreement, and the Administrative Agent and the Lenders have agreed to make such requested modifications on the terms and conditions set forth herein.

 

NOW, THEREFORE, IN CONSIDERATION of the premises and the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.Defined Terms.  Capitalized terms used herein but not otherwise defined herein shall have the meanings provided to such terms in the Credit Agreement.

 

2.Amendments to the Credit Agreement.  

 

(a)The following defined terms are hereby added to Section 1.01 of the Credit Agreement in appropriate alphabetical order:

 

“Specified Period” means the period from December 31, 2022 and extending through December 31, 2023. 

“Specified Period Conditions” means (a) the Consolidated Total Net Leverage Ratio is less than (x) if such transaction is occurring on or prior to March 31, 2023, 3.50 to 1.00, and (y) if such transaction is occurring after March 31, 2023, 3.00 to 1.00, in each case, calculated as of the most recent Measurement Period, and (b) the Consolidated Interest Coverage Ratio is greater than 3.00 to 1.00.

“Specified Pricing Period” means the period beginning on the Third Amendment Effective Date and ending on (but not including) the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 6.02(b) for the fiscal year ending December 31, 2023.

“Third Amendment Effective Date” means November 28, 2022.

(b)The definition of Applicable Rate in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

 

 

 

“Applicable Rate” means, for any day, the rate per annum set forth below opposite the applicable Level then in effect (based on the Consolidated Total Net Leverage Ratio), it being understood that the Applicable Rate with respect to (a) Incremental Term Loans advanced under any Incremental Term Facility, the percentage(s) per annum set forth in the Incremental Term Facility Agreement executed and delivered in connection with the establishment of such Incremental Term Facility, (b) Revolving Loans that are Base Rate Loans shall be the percentage set forth under the column “Revolving Loans” and “Base Rate”, (c) Revolving Loans that are BSBY Rate Loans shall be the percentage set forth under the column “Revolving Loans” and “BSBY Rate & Letter of Credit Fee”, (d) that portion of the Term Loan comprised of Base Rate Loans shall be the percentage set forth under the column “Term Loan” and “Base Rate”, (e) that portion of the Term Loan comprised of BSBY Rate Loans shall be the percentage set forth under the column “Term Loan” and “BSBY Rate & Letter of Credit Fee”, (f) the Letter of Credit Fee shall be the percentage set forth under the column “Revolving Loans” and “BSBY Rate & Letter of Credit Fee”, and (g) the Commitment Fee shall be the percentage set forth under the column “Commitment Fee”:

							
	
Level
	
Consolidated Total Net Leverage Ratio
	
BSBY Rate

& Letter of Credit Fee
	
Base Rate
	
Commitment
Fee

	
Revolving Loans
	
Term Loan
	
Revolving Loans
	
Term Loan

	
1
	
> 3.00 to 1.0
	
2.250%
	
2.250%
	
1.250%
	
1.250%
	
0.400%

	
2
	
< 3.00 to 1.0 but
> 2.50 to 1.0
	
2.000%
	
2.000%
	
1.000%
	
1.000%
	
0.350%

	
3
	
< 2.50 to 1.0 but
> 2.00 to 1.0
	
1.750%
	
1.750%
	
0.750%
	
0.750%
	
0.300%

	
4
	
< 2.00 to 1.0 but
> 1.00 to 1.0
	
1.500%
	
1.500%
	
0.500%
	
0.500%
	
0.250%

	
5
	
< 1.00 to 1.0
	
1.250%
	
1.250%
	
0.250%
	
0.250%
	
0.200%

	
 
	
 
	
 
	
 
	
 
	
 
	
 

; provided that, during the Specified Pricing Period, the following grid shall apply:

							
	
Level
	
Consolidated Total Net Leverage Ratio
	
BSBY Rate

& Letter of Credit Fee
	
Base Rate
	
Commitment
Fee

	
Revolving Loans
	
Term Loan
	
Revolving Loans
	
Term Loan

	
1
	
> 3.50 to 1.0
	
3.250%
	
3.250%
	
2.250%
	
2.250%
	
0.500%

	
2
	
< 3.50 to 1.0 but
> 3.00 to 1.0
	
2.750%
	
2.750%
	
1.750%
	
1.750%
	
0.450%

	
3
	
< 3.00 to 1.0 but
> 2.50 to 1.0
	
2.250%
	
2.250%
	
1.250%
	
1.250%
	
0.400%

2

 

 

							
	
4
	
< 2.50 to 1.0 but
> 2.00 to 1.0
	
2.000%
	
2.000%
	
1.000%
	
1.000%
	
0.350%

	
5
	
< 2.00 to 1.0 but
> 1.00 to 1.0
	
1.750%
	
1.750%
	
0.750%
	
0.750%
	
0.300%

	
6
	
< 1.00 to 1.0
	
1.500%
	
1.500%
	
0.500%
	
0.500%
	
0.250%

	
 
	
 
	
 
	
 
	
 
	
 
	
 

Any increase or decrease in the Applicable Rate resulting from a change in the Consolidated Total Net Leverage Ratio shall become effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 6.02(b); provided, however, that if a Compliance Certificate is not delivered when due in accordance with Section 6.02(b), then, upon the request of the Required Lenders, Pricing Level 1 shall apply, in each case as of the first Business Day after the date on which such Compliance Certificate was required to have been delivered and in each case shall remain in effect until the first Business Day following the date on which such Compliance Certificate is delivered.

Notwithstanding anything to the contrary contained in this definition, (i) the determination of the Applicable Rate for any period shall be subject to the provisions of Section 2.10(b) and (ii) the Applicable Rate shall be set at Pricing Level 3 from the Third Amendment Effective Date until the first Business Day immediately following the date a Compliance Certificate is delivered to the Administrative Agent pursuant to Section 6.02(b) for the fiscal quarter ending December 31, 2022. Any adjustment in the Applicable Rate shall be applicable to all Credit Extensions then existing or subsequently made or issued.

(c)Clause (b) of the definition of “Permitted Acquisition” in Section 1.01 of the Credit Agreement is hereby amended in its entirety as follows:

 

(b)subject to Section 1.02(f), upon giving effect to such Acquisition on a Pro Forma Basis, the Loan Parties would be in compliance with the financial covenants set forth in Section 7.11 and, during the Specified Period, the Specified Period Conditions, in each case, as of the then most recent Measurement Period;

(d)The definition of “Permitted Sale and Leaseback Transaction” in Section 1.01 of the Credit Agreement is hereby amended in its entirety as follows:

 

“Permitted Sale and Leaseback Transaction” means any Sale and Leaseback Transaction consummated by a Loan Party with respect to any fee owned real property of such Loan Party; provided, that, (a) the real property sold shall be sold for fair market value (as determined by the Borrower in good faith) to a Person that is not an Affiliate of the Borrower or any Subsidiary, (b) the Borrower shall have delivered a certificate of a Responsible Officer of the Borrower certifying that: (i) after giving effect to such Sale and Leaseback Transaction on a Pro Forma Basis, the Loan Parties would be in compliance with the covenants set forth in Section 7.11 and, during the Specified Period, the Specified Period Conditions, in each case as of the most recent Measurement Period and (ii) no Event of Default shall have occurred and be continuing or would arise upon consummation of such transaction as a result thereof and (c) the Net 

3

 

 

Cash Proceeds received from the sale of such property shall have been applied in accordance with, and to the extent required by, Section 2.05(b)(i).

(e)The definition of “Unrestricted Cash” in Section 1.01 of the Credit Agreement is hereby amended in its entirety as follows:

 

“Unrestricted Cash” means the aggregate amount of unrestricted cash and Cash Equivalents of the Loan Parties maintained in domestic accounts, not to exceed (other than, solely for purposes of calculating the Consolidated Total Net Leverage Ratio solely for purposes of determining the Applicable Rate for a period not to exceed twelve (12) months from the incurrence thereof, any such cash representing Net Cash Proceeds from the incurrence of Permitted Convertible Indebtedness to the extent such Permitted Convertible Indebtedness remains outstanding) $75,000,000 (the “Cash Netting Threshold”) in the aggregate; provided that, during the Specified Period, solely for purposes of calculating the Consolidated Total Net Leverage Ratio in connection with the determination of compliance by the Loan Parties with Section 7.11(b) of the Credit Agreement (and not for any other purpose, including, without limitation, the determination of the Applicable Rate and whether the Specified Period Conditions are satisfied with respect to any transaction), the Cash Netting Threshold shall be increased to $125,000,000; provided, further, that cash or Cash Equivalents representing the proceeds of Indebtedness (i) incurred for the sole purpose to finance the consideration (and the payment of fees and expenses in connection therewith) for a not yet consummated Permitted Acquisition that are segregated or held in escrow pending the consummation of such Permitted Acquisition within five (5) Business Days of such incurrence (as determined in good faith by the Borrower) or (y) incurred for the sole purpose of refinancing Indebtedness permitted hereunder (and the payment of fees and expenses in connection therewith) that are segregated or held in escrow pending such refinancing within five (5) Business Days of such incurrence (as determined in good faith by the Borrower), in each case, shall not be disqualified from being considered Unrestricted Cash solely due to Liens or restrictions arising from such escrow arrangement or restricted usage.

(f)Section 2.02(h)(i)(G) of the Credit Agreement is hereby amended in its entirety as follows:

 

(G)upon giving effect to any such increase on a Pro Forma Basis (and assuming for such calculation that such increase is fully drawn), the Loan Parties would be in compliance with the financial covenants set forth in Section 7.11 and, during the Specified Period, the Specified Period Conditions, in each case, as of the most recent Measurement Period;

(g)Section 2.02(h)(ii)(G) of the Credit Agreement is hereby amended in its entirety as follows:

 

(G)subject to Section 1.02(f), upon giving effect to the incurrence of any such Incremental Term Facility on a Pro Forma Basis, the Loan Parties would be in compliance with the financial covenants set forth in Section 7.11 and, during the Specified Period, the Specified Period Conditions, in each case, as of the most recent Measurement Period;

4

 

 

(h)Section 7.06(e) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

(e)the Borrower may make other Restricted Payments in an aggregate amount not to exceed $250,000,000 during the term of this Agreement; provided, that, no Default shall have occurred and be continuing at the time of such Restricted Payment or would result therefrom; provided, further, that, after the Borrower has made $250,000,000 of Restricted Payments in reliance on this clause (e), the Borrower may make additional Restricted Payments in reliance on this clause (e) in an aggregate amount during the term of this Agreement not to exceed seventy-five percent (75%) of Consolidated EBITDA for the four (4) fiscal quarter period most recently ended for which financial statements have been delivered pursuant to Section 6.01(a) or (b), so long as (x) no Default shall have occurred and be continuing at the time of such Restricted Payment or would result therefrom and (y) the Consolidated Total Net Leverage Ratio is less than 2.25 to 1.0, calculated as of the most recent Measurement Period after giving effect to such Restricted Payment on a Pro Forma Basis; provided that, during the Specified Period, in addition to the conditions set forth above, Restricted Payments made pursuant to this clause (e) shall only be permitted if, upon giving effect to such Restricted Payment on a Pro Forma Basis, the Loan Parties shall be in compliance with the Specified Conditions;

(i)Section 7.11 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

7.11Financial Covenants.

 

(a)Consolidated Interest Coverage Ratio. Permit the Consolidated Interest Coverage Ratio as of the end of any Measurement Period ending as of the end of any fiscal quarter of the Borrower set forth below to be less than the ratio set forth below opposite such period.

 

		
	
Measurement Period Ending
	
Minimum Consolidated Interest Coverage Ratio

	
September 30, 2021 through and including December 31, 2022
	
3.00 to 1.00

	
March 31, 2023 through and including December 31, 2023 
	
2.50 to 1.00

	
March 31, 2024 and each fiscal quarter thereafter
	
3.00 to 1.00

 

 

(b)Consolidated Total Net Leverage Ratio. Permit the Consolidated Total Net Leverage Ratio as of the end of any Measurement Period ending as of the end of any fiscal quarter of the Borrower set forth below to be greater than the ratio set forth below opposite such period:

 

 

5

 

 

 

		
	
Measurement Period Ending
	
Maximum Consolidated Total Net Leverage Ratio

	
September 30, 2021 through and including June 30, 2022
	
3.00 to 1.00

	
September 30, 2022
	
3.50 to 1.00

	
December 31, 2022 through and including March 31, 2023
	
3.75 to 1.00

	
June 30, 2023 
	
3.50 to 1.00

	
September 30, 2023 and December 31, 2023
	
3.25 to 1.00

	
March 31, 2024 and each fiscal quarter thereafter
	
3.00 to 1.00

 

provided, that, upon the occurrence of a Qualified Acquisition, for each of the four (4) fiscal quarters of the Borrower immediately following such Qualified Acquisition (including the fiscal quarter in which such Qualified Acquisition was consummated), the maximum Consolidated Total Net Leverage Ratio permitted pursuant to this Section 7.11(b) shall be increased to 3.50 to 1.00 (a “Leverage Increase Period”); provided, further, that, (i) no Leverage Increase Period may occur until the Borrower has delivered Compliance Certificates for two (2) consecutive fiscal quarters ending after the fiscal quarter ending September 31, 2023 evidencing that the Consolidated Total Net Leverage Ratio was not greater than 3.00 to 1.00 as of the end of each such fiscal quarter, (ii) following the expiration of any Leverage Increase Period, the maximum Consolidated Total Net Leverage Ratio cannot be subsequently increased again as a result of a subsequent Qualified Acquisition (and a subsequent Leverage Increase Period cannot commence) until the Borrower has delivered Compliance Certificates for two (2) consecutive fiscal quarters evidencing that the Consolidated Total Net Leverage Ratio was not greater than 3.00 to 1.00 as of the end of each such fiscal quarter, (iii) there shall be no more than three (3) Leverage Increase Periods exercised during the term of this Agreement, and (iv) each Leverage Increase Period shall only apply with respect to the calculation of this financial maintenance covenant and not for any other purpose.

 

3.Conditions Precedent.  This Amendment shall be effective on the first date each of the following conditions precedent has been satisfied:

 

(a)receipt by the Administrative Agent of counterparts of this Amendment duly executed by the Borrower, the Guarantors, the Required Lenders and the Administrative Agent; and

 

(b)the Borrower shall have paid all reasonable and documented out-of-pocket expenses of the Administrative Agent (including reasonable and documented fees and expenses of counsel to the Administrative Agent in respect of this Amendment) required to be paid on the date hereof to the extent invoiced in writing to the Borrower at least two (2) Business Days prior to the date hereof.

 

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4.Amendment is a “Loan Document”.  This Amendment is a Loan Document and all references to a “Loan Document” in the Credit Agreement and the other Loan Documents (including, without limitation, all such references in the representations and warranties in the Credit Agreement and the other Loan Documents) shall be deemed to include this Amendment.

 

5.Representations and Warranties; No Default.  Each Loan Party represents and warrants to the Administrative Agent and each Lender that, on and as of the date hereof, immediately after giving effect to this Amendment, (a) the representations and warranties of each Loan Party set forth in the Loan Documents to which it is a party are true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality) on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality) as of such earlier date, and (b) no Default exists. 

 

6.Reaffirmation of Obligations.  Each Loan Party (a) acknowledges and consents to all of the terms and conditions of this Amendment, (b) affirms all of its obligations under the Loan Documents (in the case of the Credit Agreement, as amended hereby), and (c) agrees that, except as expressly set forth herein, this Amendment and all documents, agreements and instruments executed in connection with this Amendment do not operate to reduce or discharge such Loan Party’s obligations under the Loan Documents.

 

7.Reaffirmation of Security Interests.  Each Loan Party (a) affirms that each of the Liens granted in or pursuant to the Loan Documents are valid and subsisting, and (b) agrees that this Amendment and all documents, agreements and instruments executed in connection with this Amendment do not in any manner impair or otherwise adversely affect any of the Liens granted in or pursuant to the Loan Documents.

 

8.No Other Changes.  Except as modified hereby, all of the terms and provisions of the Loan Documents shall remain in full force and effect.

 

9.Counterparts; Delivery.  This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Amendment, or any certificate delivered hereunder, by fax transmission or e-mail transmission (e.g., “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Amendment or certificate. Without limiting the foregoing, to the extent a manually executed counterpart is not specifically required to be delivered under the terms of any Loan Document, upon the request of any party, such fax transmission or e-mail transmission shall be promptly followed by such manually executed counterpart.

 

10.Governing Law.  This Amendment shall be deemed to be a contract made under, and for all purposes shall be construed in accordance with, the laws of the State of New York.

 

[SIGNATURE PAGES FOLLOW]

 

7

 

 

 

Each of the parties hereto has caused a counterpart of this Amendment to be duly executed and delivered as of the date first above written.

 

		
	
BORROWER:
	
CORSAIR GAMING, INC.

By: /s/ Michael G. Potter

Name: Michael G. Potter

Title: Chief Financial Officer

 

		
	
GUARANTORS:
	
CORSAIR MEMORY, INC.

 

 

By: /s/ Michael G. Potter

Name: Michael G. Potter

Title: Chief Financial Officer

 

ORIGIN PC, LLC

 

 

By: /s/ Andrew J. Paul

Name: Andrew J. Paul

Title: President

 

SCUF GAMING INTERNATIONAL LLC

 

 

By: /s/ Michael G. Potter

Name: Michael G. Potter

Title: Chief Financial Officer

 

 

[SIGNATURE PAGES CONTINUE]

Corsair Gaming, Inc.

THIRD AMENDMENT

 

 

 

		
	
 
	
BANK OF AMERICA, N.A.,

as Administrative Agent

By: /s/ Jason Eshler

Name: Jason Eshler

Title: Vice President

Corsair Gaming, Inc.

Third AMENDMENT

 

 

 

		
	
 
	
BANK OF AMERICA, N.A.,

as a Lender, L/C Issuer and Swingline Lender

By: /s/ Jason Eshler

Name: Jason Eshler

Title: Vice President

 

Corsair Gaming, Inc.

THIRD AMENDMENTExhibit 10.1

 

NON-REDEMPTION
AGREEMENT

 

	SPAC	10X
        Capital Venture Acquisition Corp. III, a Cayman Island exempted company (“SPAC”).

     

	Sponsor	10X
                                Capital SPAC Sponsor III LLC

                                                                                 

	Investor	[   ]

                                                                                 

	Investor
    Agreements	Investor
                                            commits to own, prior to the date of the special meeting with respect to the SPAC’s
                                            shareholder vote in connection with the amendment of SPAC’s Amended and Restated Memorandum
                                            and Articles of Association to extend the date by which the SPAC must consummate an initial
                                            business combination by six months plus three additional one month periods at the option
                                            of the SPAC (the “Extension”), the lesser of (i) 400,000 SPAC Class A Shares
                                            and (ii) together with Investor’s affiliates, 9.99% of the total outstanding shares
                                            of the SPAC (the “Investor Shares”).

     

    Investor
    waives any right that it may have to elect to have SPAC redeem any Investor Shares and agrees not to redeem or otherwise exercise
    any right to redeem, the Investor Shares and to reverse and revoke any prior redemption elections made with respect to the Investor
    Shares in connection with the Extension.

     

    Investor
    agrees that neither it, nor any person or entity acting on its behalf or pursuant to any understanding with it, will, from the execution
    of this Agreement until the business day following a successful shareholder vote with respect to the Extension, (a) engage in any
    hedging transactions or Short Sales (as defined below) with respect to securities of SPAC, (b) offer for sale, sell (including Short
    Sales), transfer (including by operation of law), place a lien on, pledge, convert, assign or otherwise dispose of (including by
    gift, merger, tendering into any tender offer or exchange offer or otherwise) or encumber (collectively, a “Transfer”),
    or enter into any contract, option, derivative, hedging or other agreement, arrangement, undertaking or understanding (including
    any profit-sharing arrangement) with respect to, or consent to, a direct or indirect Transfer of, any or all of the Investor Shares,
    or (c) take any action that would have the effect of preventing or materially delaying the performance of its obligations hereunder.
    For purposes of this agreement (this “Agreement”), “Short Sales” shall include, without limitation, (i) all
    “short sales” as defined in Rule 200 promulgated under Regulation SHO under the Exchange Act, (ii) all types of direct
    and indirect stock pledges (other than pledges in the ordinary course of business as part of prime brokerage or other similar financing
    arrangements), forward sale contracts, options, puts, calls, swaps and similar arrangements (including on a total return basis),
    and (iii) sales and other transactions through non-U.S. broker dealers or foreign regulated brokers.

     

    Investor
    agrees that it will and will cause its controlled affiliates to vote (or cause to be voted) or execute and deliver a written consent
    (or cause a written consent to be executed and delivered) all of SPAC Class A Shares and SPAC Class B Shares owned, as of the applicable
    record date, by any of them at any meeting of the shareholders of the SPAC in favor of the Extension and cause all such shares to
    be counted as present thereat for purposes of establishing a quorum.

     

 

    1

     

    

 

	Transferred
    Sponsor Shares	85,750
                                            fully paid, non-assessable SPAC Class B Shares plus 14,292 additional fully paid, non-assessable
                                            SPAC Class B Shares per month for the three one-month periods beyond six months to the extent
                                            the SPAC elects to extend for those periods; provided that if there are less than 400,000
                                            Investor Shares subject to this Agreement, the amount of SPAC Class B Shares will be reduced
                                            proportionally.

     

	Other
    Investors	The
                                    SPAC may enter into additional non-redemption agreements either prior to or following the execution
                                    of this Agreement with other parties, provided that if under terms of any such other agreement the
                                    investor thereunder receives a greater ratio of Transferred Sponsor Shares to Investor Shares than
                                    provided for in this Agreement, the amount of Transferred Sponsor Shares received by Investor shall
                                    be adjusted to match such greater ratio.

     

	SPAC
    and Sponsor Agreements	Subject
                                    to the compliance of the Investor with the agreements and representations herein and conditioned
                                    on the consummation of the Extension, the Sponsor agrees to issue to the Investor the Transferred
                                    Sponsor Shares on or promptly after the consummation of the SPAC’s business combination. The
                                    SPAC will not make any amendments to the terms of the Transferred Sponsor Shares stated in the IPO
                                    prospectus dated January 11, 2022. The Transferred Sponsor Shares will not be subject to any earn-out,
                                    cut-back, reduction, mandatory repurchase, redemption, forfeiture or transfer restriction not described
                                    here or in the IPO prospectus, without the Investor’s prior written consent.

     

	Investor
    Representations and Warranties:	Investor
                                    represents and warrants to SPAC and Sponsor the representations and warranties on Exhibit A hereto.

	 	 
	Termination
    Event	This
                                    Agreement and all of its provisions shall terminate and be of no further force or effect upon the
                                    earliest to occur of (a) the mutual written consent of the parties hereto; (b) the consummation of
                                    the Extension and the delivery of the Transferred Sponsor Shares to the Investor and (c) December
                                    1, 2023.

     

	Disclosure	SPAC
                                    shall promptly following the execution of this Agreement adequately disclose the material terms and
                                    conditions of the transaction contemplated by this Agreement. SPAC shall not name Investor in such
                                    disclosure unless required by applicable law or regulation.

     

 

    2

     

    

 

	
    Governing Law and Jurisdiction

     
	New York
	Trust Account Waiver	Investor acknowledges that SPAC has established a trust account (the “Trust Account”) containing the proceeds of its initial public offering (“IPO”) and certain proceeds of the private placement (including interest accrued from time to time thereon) for the benefit of its public shareholders and certain other parties (including the underwriters of the IPO). For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Investor hereby agrees (on its own behalf and on behalf of its related parties) that it does not now and shall not at any time hereafter have any right, title, interest or claim of any kind in or to any assets held in the Trust Account, and it shall not make any claim against the Trust Account, regardless of whether such claim arises as a result of, in connection with or relating in any way to this Agreement or any other matter, and regardless of whether such claim arises based on contract, tort, equity or any other theory of legal liability (any and all such claims are collectively referred to hereafter as the “Released Claims”); provided, that the Released Claims shall not include any rights or claims of the Investor or any of its related parties as a shareholder of SPAC to the extent related to or arising from any shares of the SPAC. 
	 	 
	Entire Agreement	This Agreement and the agreements referenced herein constitute the entire binding agreement and understanding of the parties hereto in respect of the subject matter hereof and supersede all prior understandings, agreements or representations by or among the parties hereto to the extent that they relate in any way to the subject matter hereof.

 

 

    3

     

    

 

	[INVESTOR]	 	10X CAPITAL
    VENTURE ACQUISITION CORP. III
	 	 	 	 	 
	By:	 	 	By:	 
	 	Name:	 	 	Name:
	 	Title: 	 	 	Title:
	 	 	 	 	 
	10X CAPITAL SPAC SPONSOR III LLC	 	 	 
	 	 	 	 	 
	By: 	 	 	 	 
	 	Name:	 	 	 
	 	Title:	 	 	 

 

    4

     

    

 

EXHIBIT
A

 

(a) This
Agreement has been duly executed and delivered by the Investor and, assuming due authorization, execution and delivery by Sponsor and
SPAC, this Agreement constitutes a legally valid and binding obligation of the Investor, enforceable against the Investor in accordance
with the terms hereof (except as enforceability may be limited by bankruptcy laws, other similar laws affecting creditors’ rights
and general principles of equity affecting the availability of specific performance and other equitable remedies).

 

(b) The
execution and delivery of this Agreement by the Investor does not, and the performance by the Investor of its obligations hereunder will
not, (i) conflict with or result in a violation of the organizational documents of the Investor or (ii) require any consent or approval
that has not been given or other action that has not been taken by any person, in each case to the extent such consent, approval or other
action would prevent, enjoin or materially delay the performance by the Investor of its obligations under this Agreement.

 

(c) The
Investor (i) is a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act) or an institutional
“accredited investor” (within the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act), in each case, satisfying
the applicable requirements set forth on Annex A, (ii) is acquiring any Transferred Sponsor Shares that may be issued to the Investor
pursuant to this Agreement only for its own account and not for the account of others, or if the Investor is acquiring any Transferred
Sponsor Shares that may be issued to the Investor pursuant to this Agreement as a fiduciary or agent for one or more investor accounts,
each owner of such account is a qualified institutional buyer or institutional accredited investor (as the case may be) and the Investor
has full investment discretion with respect to each such account, and the full power and authority to make the acknowledgements, representations
and agreements herein on behalf of each owner of each such account, and (iii) is not acquiring any Transferred Sponsor Shares that may
be issued to the Investor pursuant to this Agreement with a view to, or for offer or sale in connection with, any distribution thereof
in violation of the Securities Act (and shall provide the requested information on Annex A). The Investor is not an entity formed
for the specific purpose of acquiring any Transferred Sponsor Shares that may be issued to the Investor pursuant to this Agreement, unless
such newly formed entity is an entity in which all of the investors are institutional accredited investors, and is an “institutional
account” as defined by FINRA Rule 4512(c). The Investor is a sophisticated institutional investor, experienced in investing in
private equity transactions and capable of evaluating investment risks independently, both in general and with regard to all transactions
and investment strategies involving a security or securities. Accordingly, the Investor understands that the acquisition of any Transferred
Sponsor Shares that may be issued to the Investor pursuant to this Agreement meets (i) the exemptions from filing under FINRA Rule 5123(b)(1)(A)
and (ii) the institutional customer exemption under FINRA Rule 2111(b).

 

(d) The
Investor understands that any Transferred Sponsor Shares that may be issued to the Investor pursuant to this Agreement are being offered
in a transaction not involving any public offering within the meaning of the Securities Act and that the Transferred Sponsor Shares have
not been registered under the Securities Act. The Investor understands that the Transferred Sponsor Shares may not be offered, resold,
transferred, pledged or otherwise disposed of by the Investor absent an effective registration statement under the Securities Act, except
pursuant to an applicable exemption from the registration requirements of the Securities Act, and in accordance with any applicable securities
laws of the applicable states and other jurisdictions of the United States, and that any certificates or book entry records representing
the Transferred Sponsor Shares shall contain a restrictive legend to such effect. The Investor acknowledges and agrees that the Transferred
Sponsor Shares will be subject to these securities law transfer restrictions and, as a result of these transfer restrictions, the Investor
may not be able to readily resell the Transferred Sponsor Shares and may be required to bear the financial risk of an investment in the
Transferred Sponsor Shares for an indefinite period of time. The Investor understands that it has been advised to consult legal counsel
prior to making any offer, resale, pledge or transfer of any of the Transferred Sponsor Shares.

 

    5

     

    

 

(e) In
making its decision to invest in the Transferred Sponsor Shares, the Investor has relied solely upon independent investigation made by
the Investor and Sponsor’s and SPAC’s representations, warranties and covenants contained herein. The Investor has not relied
on any statements or other information provided by anyone other than SPAC concerning SPAC, the Transferred Sponsor Shares or the offer
of the Transferred Sponsor Shares. The Investor acknowledges and agrees that the Investor has received such information as the Investor
deems necessary in order to make an investment decision with respect to the Transferred Sponsor Shares and made its own assessment and
is satisfied concerning the relevant tax and other economic considerations relevant to the Investor’s investment in the Transferred
Sponsor Shares. The Investor represents and agrees that the Investor and the Investor’s professional advisor(s), if any, have had
the full opportunity to ask such questions, receive such answers and obtain such information as the Investor and its professional advisor(s),
if any, have deemed necessary to make an investment decision with respect to the Transferred Sponsor Shares. Without limiting the generality
of the foregoing, the Investor acknowledges that it has had an opportunity to review the reports publicly filed with the Securities and
Exchange Commission.

 

(f) Investor
became aware of the offering of the Transferred Sponsor Shares solely by means of direct contact between the Investor, Sponsor, SPAC
or their representatives or affiliates. The Investor did not become aware of the offering of the Transferred Sponsor Shares, nor were
the Transferred Sponsor Shares offered to the Investor, by any other means. The Investor acknowledges that Transferred Sponsor Shares
(i) were not offered by any form of general solicitation or general advertising and (ii) are not being offered in a manner involving
a public offering under the Securities Act or any state securities laws.

 

(g) Investor
acknowledges that it is aware that there are substantial risks incident to the ownership of the Transferred Sponsor Shares. The Investor
has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment
in the Transferred Sponsor Shares, and the Investor has had an opportunity to seek, and has sought, such accounting, legal, business
and tax advice as the Investor has considered necessary to make an informed investment decision. The Investor is not relying on any statements
or representations of Sponsor, SPAC or any of its agents for legal, tax or investment advice with respect to this Agreement or the transactions
contemplated by the Agreement. The Investor has fully considered the risks of an investment in the Transferred Sponsor Shares and determined
that the Transferred Sponsor Shares are a suitable investment for the Investor and that the Investor is able at this time and in the
foreseeable future to bear the economic risk of a total loss of the Investor’s investment in the Transferred Sponsor Shares. The
Investor acknowledges specifically that a possibility of total loss exists.

 

(h) The
Investor understands and agrees that no federal or state agency has passed upon or endorsed the merits of the offering of the Transferred
Sponsor Shares or made any findings or determination as to the fairness of this investment.

 

(i) No
broker or finder has acted on behalf of the Investor in such a way as to create any liability on Sponsor or SPAC in connection with this
Agreement.

 

(j) The
Investor is not entering into the transactions contemplated by this Agreement to create actual or apparent trading activity in any security
of the SPAC (or any security convertible into or exchangeable for a security of the SPAC) or to raise or depress or otherwise manipulate
the price of any security of the SPAC (or any security convertible into or exchangeable for a security of the SPAC) or otherwise in violation
of the Exchange Act. The Investor has not entered into or altered, and agrees that the Investor will not enter into or alter, any corresponding
or hedging transaction or position with respect to any security of the SPAC.

 

 

6

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