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Document

Exhibit 4.2

NEITHER THIS DEBENTURE NOR THE SECURITIES INTO WHICH THIS DEBENTURE IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE.  THESE SECURITIES HAVE BEEN SOLD IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.
Xos, Inc.
Convertible Debenture
Principal Amount: $[   ]
Debenture Issuance Date: [   ], 2022
Debenture Number: XOS-[   ]
FOR VALUE RECEIVED, Xos, Inc., a Delaware corporation (the “Company”), hereby promises to pay to YA II PN, Ltd., or its registered assigns (the “Holder”), the amount set out above as the principal amount (as reduced pursuant to the terms hereof pursuant to redemption, conversion or otherwise, the “Principal”) when due, whether upon the Maturity Date (as defined below), acceleration, redemption or otherwise (in each case in accordance with the terms hereof) and to pay interest (“Interest”) on any outstanding Principal at the applicable Interest Rate from the date set out above as the Debenture Issuance Date (the “Issuance Date”) until the same becomes due and payable, whether upon the Maturity Date or acceleration, conversion, redemption or otherwise (in each case in accordance with the terms hereof). This Convertible Debenture (including all debentures issued in exchange, transfer or replacement hereof, this “Debenture”) was originally issued pursuant to the Securities Purchase Agreement dated August 9, 2022, as amended (the “Securities Purchase Agreement”), between the Company and the Buyers listed on the Schedule of Buyers attached thereto. Certain capitalized terms used herein are defined in Section (15).
(1)GENERAL TERMS
(a)Maturity Date. On the Maturity Date, the Company shall pay to the Holder an amount in cash representing all outstanding Principal, accrued and unpaid Interest, and any other amounts outstanding pursuant to the terms of this Debenture. The “Maturity Date” shall be November 11, 2023; provided, however, that the Company at its election may extend the Maturity Date by three months by providing written notice to the Holder at least three months, but no more than four months, prior to the original maturity date; provided that at the time of such written notice the outstanding Principal balance on this Debenture and all Other Debentures equal or exceed $8 million. Other than as specifically permitted by this Debenture, the Company may not prepay or redeem any portion of the outstanding Principal and accrued and unpaid Interest. 
(b)Interest Rate and Payment of Interest. Interest shall accrue on the outstanding Principal balance hereof at an annual rate equal to 6% (“Interest Rate”), which Interest Rate shall increase to an annual rate of: (i) 10.0% upon the occurrence and during the continuance of any Event of Default; and (ii) 7.5% for so long as any Registration Event remains 

in effect. Interest shall be calculated on the basis of a 365-day year and the actual number of days elapsed, to the extent permitted by applicable law.
(2)PAYMENTS. 
(a)Triggering Date.  If, at any time after the Issuance Date set forth above, and from time to time thereafter, (i) the daily VWAP of the Common Stock is less than the Floor Price for five consecutive Trading Days, or (ii) the Company has issued pursuant to this Debenture in excess of 95% of the Common Shares available under the Exchange Cap (the last such day of each such occurrence, a “Triggering Date”), then the Company shall make monthly prepayments of $3,000,000 in the aggregate among this Debenture and all Other Debentures (provided that, if the Triggering Date is on or after the publication of the Company’s quarterly report for the quarter ended September 30, 2022 and the Cash Runway Ratio as of the applicable Triggering Date is less than 1.00, such amount shall instead be $4,000,000) of Principal (or the outstanding Principal if less than such amount) (the “Triggered Principal Amount”) beginning on the 10th calendar day after the Triggering Date and continuing on the same day of each successive calendar month. The prepayment price for each monthly prepayment shall be an amount equal to the sum of (i) an amount of Principal equal to the Triggered Principal Amount, plus (ii) the Redemption Premium (as defined below) in respect of such Triggered Principal Amount, plus (iii) accrued and unpaid interest hereunder as of each payment date. Notwithstanding the foregoing, each Triggered Principal Amount shall be reduced by any Principal and/or accrued and unpaid interest converted by the Holder in the 30 days prior to such monthly prepayment date. The obligation of the Company to make monthly prepayments hereunder shall cease and the Triggered Principal Amount, if otherwise increased pursuant to the proviso of the first sentence of this clause (a), shall reduce to $3,000,000 (with respect to any payment that has not yet come due) if any time after the Triggering Date (A) either (i) the Company provides the Holder a reset notice (each, a “Floor Reset Notice”) setting forth a reduced Floor Price which shall be equal to no more than 85% of the Closing Price as of the Trading Day immediately prior to the Floor Reset Notice, provided that such Floor Price shall not be less than $0.50, or (ii) the daily VWAP is greater than the Floor Price a period of 3 consecutive Trading Days, (B) in the event that the Triggering Date was caused by the issuance pursuant to this Debenture in excess of 95% of the Common Shares available under the Exchange Cap as set forth above, the date the Company has obtained stockholder approval to increase the number of Common Shares under the Exchange Cap and/ or the Exchange Cap no longer applies, unless a subsequent Triggering Date occurs, and (C) the payment in full of all obligations under this Note. In addition, the Triggered Principal Amount, if otherwise increased pursuant to the proviso of the first sentence of this clause (a), shall reduce to $3,000,000 (with respect to any payment that has not yet come due) if any time after the Triggering Date the Cash Runway Ratio is equal to or greater than 1.00. Following the cessation of the payment obligation in respect of a given Triggering Date, the determination of a subsequent Triggering Date shall not include any Trading Days included in the time period ending with the prior Triggering Date. If this Debenture or any Other Debentures are held by more than one holder, then the Triggered Principal Amount, Redemption Premium and accrued and unpaid interest shall be allocated to each holder based on each holder’s pro-rata portion of the total outstanding Principal amount outstanding on all such debentures.  
(b)Early Redemption. The Company at its option shall have the right, but not the obligation, to redeem (“Optional Redemption”) early a portion or all amounts outstanding under this Debenture in cash at the Redemption Amount (as defined below) as described in this Section; provided that (i) at the time of the Redemption Notice (as defined below), the daily VWAP of the Common Stock is less than the Fixed Conversion Price during a period of three consecutive Trading Days immediately prior to such Redemption Notice and (ii) the Company provides the Holder with at least 10 Business Days’ prior written notice (each, a “Redemption Notice”) of its desire to exercise an Optional Redemption. Each Redemption Notice shall be 
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irrevocable and shall specify the outstanding balance of the Convertible Debentures to be redeemed and the applicable Redemption Premium. The “Redemption Amount” shall be an amount equal to the outstanding Principal balance being redeemed by the Company, plus the applicable Redemption Premium, plus all accrued and unpaid interest hereunder as of such redemption date. After receipt of the Redemption Notice, the Holder shall have 10 Business Days to elect to convert all or any portion of Convertible Debentures. On the 11th Business Day after the Redemption Notice, the Company shall deliver to the Holder the Redemption Amount with respect to the Principal amount redeemed after giving effect to conversions effected during the applicable notice period.
(c)Payment Dates. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day.  
(3)EVENTS OF DEFAULT. 
(a)An “Event of Default”, wherever used herein, means any one of the following events (whatever the reason and whether it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body):
(i)the Company’s failure to pay to the Holder (A) any amount of Principal after such payment is due, or (B) any amount of Interest, or other amounts when and as due under this Debenture or any other Transaction Document, within 7 calendar days after receipt by the Company of written notice from Holder;
(ii)The Company shall commence, or there shall be commenced against the Company under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the Company commences any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to the Company any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of 61 days; or the Company is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or the Company suffers any appointment of any custodian, private or court appointed receiver or the like for it or all or substantially all of its property which continues undischarged or unstayed for a period of 91 days; or the Company makes a general assignment of all or substantially all of its assets for the benefit of creditors; or the Company shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or the Company shall by any act or failure to act expressly indicate its consent to, approval of or acquiescence in any of the foregoing; or any corporate or other action is taken by the Company for the purpose of effecting any of the foregoing;
(iii)The Company or any Significant Subsidiary of the Company shall default in any of its obligations under any other debenture or any mortgage, credit agreement or other facility, indenture agreement, factoring agreement or other instrument under which there may be issued, or by which there may be secured or evidenced any indebtedness for borrowed money or money due under any long term leasing or factoring arrangement of the Company or any Significant Subsidiary of the Company in an amount exceeding $5,000,000, whether such indebtedness now exists or shall hereafter be created where such default results in such indebtedness becoming or being declared due and payable before its stated maturity and such acceleration shall not have been rescinded or annulled or such default shall not have been cured or waived, or such indebtedness is not paid or discharged, as the case may be, within 20 calendar 
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days after written notice to the Company by Holders of at least 25% in aggregate principal amount of Notes issued pursuant to the Purchase Agreement then outstanding;
(iv)The Common Stock shall cease to be quoted or listed for trading, as applicable, on any Primary Market for a period of 10 consecutive Trading Days;
(v)[Reserved]; 
(vi)the Company’s (A) failure to instruct its Transfer Agent and use its reasonable efforts to cause its Transfer Agent to deliver the required number of shares of Common Stock to the Holder within 2 Business Days after the applicable Share Delivery Date or (B) notice, written or oral, to any holder of the Debentures, including by way of public announcement, at any time, of its intention not to comply with a request for conversion of any Debentures into shares of Common Stock that is tendered in accordance with the provisions of the Debentures, other than pursuant to Section (5)(c);
(vii)The Company shall fail for any reason to deliver the payment in cash pursuant to a Buy-In (as defined herein) within five Business Days after such payment is due; 
(viii)The Company shall fail to observe or perform any other material covenant, agreement or warranty contained in, or otherwise commit any material breach or default of any provision of this Debenture (except as may be covered by Section (3)(a)(i) through (3)(a)(ix) hereof) or any Transaction Document (as defined in Section(15)) which is not cured or remedied within 30 calendar days of receipt by the Company of written notice by the Holder.
(ix)any Event of Default (as defined in the Other Debentures) occurs with respect to any Other Debentures.
(b)During the time that any portion of this Debenture is outstanding, if any Event of Default has occurred and is continuing, the full unpaid Principal amount of this Debenture, together with accrued and unpaid interest and other amounts owing in respect thereof, to the date of acceleration shall become at the Holder’s election, immediately due and payable in cash. The Holder need not provide and the Company hereby waives any presentment, demand, protest or other notice of any kind, (other than required notice of conversion) and the Holder may immediately enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such declaration may be rescinded and annulled by Holder at any time prior to payment hereunder. No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.  
(4)CONVERSION OF DEBENTURE.    This Debenture shall be convertible into shares of the Company’s Common Stock, on the terms and conditions set forth in this Section (4).
(a)Conversion Right.  Subject to the limitations of Section (4)(c), at any time or times on or after the Issuance Date, the Holder shall be entitled to convert any portion of the outstanding and unpaid Conversion Amount (as defined below) into fully paid and nonassessable shares of Common Stock in accordance with Section (4)(b), at the Conversion Rate (as defined below).  The number of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to this Section (4)(a) shall be determined by dividing (x) such Conversion Amount by (y) the Conversion Price (the “Conversion Rate”). If more than one Debenture shall be surrendered for conversion at one time by the same Holder, the conversion obligation with respect to such Debentures shall be computed on the basis of the aggregate principal amount of the Debentures (or specified portions thereof to the extent permitted thereby) so surrendered. The 
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Company shall not issue any fraction of a share of Common Stock upon any conversion. All calculations under this Section (4) shall be rounded to the nearest $0.0001. If the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up to the nearest whole share (if such fractional share is greater than one-half) and down to the nearest whole share (if such fractional share is equal to or less than one-half).  The Company shall pay any and all transfer, stamp and similar taxes that may be payable with respect to the issuance and delivery of Common Stock upon conversion of any Conversion Amount, unless such taxes are due because the Holder requests such Common Stock to be issued in a name other than the Holder’s name, in which case the Holder shall pay such taxes.  
(i)“Conversion Amount” means the portion of the Principal and accrued Interest to be converted, redeemed or otherwise with respect to which this determination is being made.
(ii)“Conversion Price” means, as of any Conversion Date (as defined below) or other date of determination the lower of (i) $2.4733 (the “Fixed Conversion Price”), or (ii) 97% of the lowest daily VWAP of the Common Stock during the 3 consecutive Trading Days immediately preceding the Conversion Date or other date of determination (the “Variable Conversion Price”), but not lower than the Floor Price.  The Conversion Price shall be adjusted from time to time pursuant to the other terms and conditions of this Debenture.
(b)Mechanics of Conversion.
(i)Optional Conversion.  To convert any Conversion Amount into shares of Common Stock on any date (a “Conversion Date”), the Holder shall (A) transmit by email (or otherwise deliver), for receipt on or prior to 11:59 p.m., New York Time, on such date, a copy of an executed notice of conversion in the form attached hereto as Exhibit I (the “Conversion Notice”) to the Company and (B) if required by Section (4)(b)(iii), surrender this Debenture to a nationally recognized overnight delivery service for delivery to the Company (or an indemnification undertaking reasonably satisfactory to the Company with respect to this Debenture in the case of its loss, theft or destruction).  On or before the 3rd Trading Day following the date of receipt of a Conversion Notice (the “Share Delivery Date”), the Company shall (X) if legends are not required to be placed on certificates or book entry of Common Stock and provided that the Transfer Agent is participating in the Depository Trust Company’s (“DTC”) Fast Automated Securities Transfer Program, instruct the Transfer Agent to credit such aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder’s or its designee’s balance account with DTC through its Deposit Withdrawal Agent Commission system or (Y) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, or if restrictive legends are required to be placed on certificates or book-entry positions of Common Stock, issue and deliver to the address as specified in the Conversion Notice, a certificate or book-entry position, registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder shall be entitled. If this Debenture is physically surrendered for conversion and the outstanding Principal of this Debenture is greater than the Principal portion of the Conversion Amount being converted, then the Company shall as soon as practicable and in no event later than three Business Days after receipt of this Debenture and at its own expense, issue and deliver to the holder a new Debenture representing the outstanding Principal not converted.  The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion of this Debenture shall be treated for all purposes as the record holder or holders of such shares of Common Stock upon the transmission of a Conversion Notice.
(ii)Company’s Failure to Timely Convert.  If within 4 Trading Days after the Company’s receipt of an email copy of a Conversion Notice the Company shall fail to 
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instruct the Transfer Agent to issue and deliver to the Holder or credit the Holder’s balance account with DTC for the number of shares of Common Stock to which the Holder is entitled upon such holder’s conversion of any Conversion Amount (a “Conversion Failure”), and if on or after such Trading Day the Holder purchases (in an open market transaction or otherwise) Common Stock to deliver in satisfaction of a sale by the Holder of Common Stock issuable upon such conversion that the Holder anticipated receiving from the Company (a “Buy-In”), then the Company shall, within five Business Days after the Holder’s request and in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions and other out of pocket expenses, if any) for the shares of Common Stock so purchased (the “Buy-In Price”), at which point the Company’s obligation to deliver such certificate (and to issue such Common Stock) shall terminate, or (ii) promptly honor its obligation to deliver to the Holder such shares of Common Stock and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock, times (B) the Closing Price on the Conversion Date.
(iii)Book-Entry. Notwithstanding anything to the contrary set forth herein, upon conversion of any portion of this Debenture in accordance with the terms hereof, the Holder shall not be required to physically surrender this Debenture to the Company unless (A) the full Conversion Amount represented by this Debenture is being converted or (B) the Holder has provided the Company with prior written notice (which notice may be included in a Conversion Notice) requesting reissuance of this Debenture upon physical surrender of this Debenture.  The Holder and the Company shall maintain records showing the Principal and Interest converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of this Debenture upon conversion.
(c)Limitations on Conversions.
(i)Beneficial Ownership.  The Holder shall not have the right to convert any portion of this Debenture or receive shares of Common Stock hereunder to the extent that after giving effect to such conversion or receipt of such Shares, the Holder, together with any affiliate thereof, would beneficially own (as determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder) in excess of 9.99% of the number of shares of Common Stock outstanding immediately after giving effect to such conversion or receipt of shares as payment of interest.  Since the Holder will not be obligated to report to the Company the number of shares of Common Stock it may hold at the time of a conversion hereunder, unless the conversion at issue would result in the issuance of shares of Common Stock in excess of 9.99% of the then outstanding shares of Common Stock without regard to any other shares which may be beneficially owned by the Holder or an affiliate thereof, the Holder shall have the authority and obligation to determine whether the restriction contained in this Section will limit any particular conversion hereunder and to the extent that the Holder determines that the limitation contained in this Section applies, the determination of which portion of the Principal amount of this Debenture is convertible shall be the responsibility and obligation of the Holder.  If the Holder has delivered a Conversion Notice for a Principal amount of this Debenture that, without regard to any other shares that the Holder or its affiliates may beneficially own, would result in the issuance in excess of the permitted amount hereunder, the Company shall notify the Holder of this fact and shall honor the conversion for the maximum Principal amount permitted to be converted on such Conversion Date in accordance with Section (4)(a) and, any Principal amount tendered for conversion in excess of the permitted amount hereunder shall remain outstanding under this Debenture. The provisions of this Section may be waived by a Holder (but only as to itself and not to any other Holder) upon not less than 65 days prior notice to the Company. Other Holders shall be unaffected by any such waiver.
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(ii)Principal Market Limitation. Notwithstanding anything in this Debenture to the contrary, the Company shall not issue any shares of Common Stock upon conversion of this Debenture, or otherwise, if the issuance of such Common Stock, together with any Common Stock issued in connection with any other related transactions that may be considered part of the same series of transactions, would exceed 33,199,327, which is the aggregate number of shares of Common Stock that the Company may issue in a transaction in compliance with the Company’s obligations under the rules or regulations of Nasdaq Stock Market LLC (the “Nasdaq”) (and such aggregate number of shares of Common Stock shall be referred to as the “Exchange Cap”) except that such limitation shall not apply if the Company’s stockholders have approved issuances in excess of the Exchange Cap in accordance with the rules of the Nasdaq.
(iii)Other Conversion Limitations and Agreements. The Holder agrees that (A) it shall not convert any portion of this Debenture prior to September 9, 2022 (the “Conversion Start Date”), (B) it shall not convert more than an aggregate amount of Principal equal to $4,000,000 of this Debenture and any Other Debenture held by the Holder utilizing the Variable Conversion Price (y) during the period beginning at 12:01 a.m. on the Conversion Start Date and ending at 11:59 p.m. on the date that is 30 days following the Conversion Start Date, and (z) during each successive 30 day period immediately following the conclusion of the prior period (each such period described in (y) and (z) above shall be referred to herein as a “30-Day Period”), and (C) it shall use commercially reasonable efforts, taking into account relevant market conditions, to convert at least $2,000,000 of Principal amount in the aggregate of this Debenture and any Other Debenture held by the Holder in each 30-Day Period; provided that the Equity Conditions are satisfied as of each day of such 30-Day Period. The foregoing limitations in this subsection shall not apply (A) at any time upon the occurrence and during the continuance of an Event of Default, and (B) with respect to any conversions utilizing the Fixed Conversion Price, and may be waived with written consent of the Company. For as long as any Holder holds any Debentures (or shares of Common Stock issuable upon conversion under a Debenture), each Holder will be prohibited from directly or indirectly engaging in any Short Sales involving the Company’s Common Stock.
(d)Other Provisions.
(i)[Reserved].
(ii)All calculations under this Section (4) shall be rounded to the nearest $0.0001 or whole share.
(iii)The Company covenants that it will at all times reserve and keep available out of its authorized and unissued shares of Common Stock solely for the purpose of issuance upon conversion of this Debenture and payment of interest on this Debenture, each as herein provided, free from preemptive rights or any other actual contingent purchase rights of persons other than the Holder, not less than such number of shares of the Common Stock as shall be issuable (taking into account the adjustments and restrictions set forth herein) upon the conversion of the outstanding Principal amount of this Debenture and payment of interest hereunder. Within seven Business Days following the receipt by the Company of a Holder’s notice that such minimum number of Underlying Shares is not so reserved, the Company shall promptly reserve a sufficient number of shares of Common Stock to comply with such requirement. The Company covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly and validly authorized, issued and fully paid, nonassessable and, if the Underlying Shares Registration Statement has been declared effective under the Securities Act, registered for public sale in accordance with such Underlying Shares Registration Statement.
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(iv)Nothing herein shall limit a Holder’s right to pursue actual damages or declare an Event of Default pursuant to Section (3) herein for the Company’s failure to deliver certificates representing shares of Common Stock upon conversion within the period specified herein and such Holder shall have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief, in each case without the need to post a bond or provide other security. The exercise of any such rights shall not prohibit the Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable law. 
(5)Adjustments to Conversion Price
(a)Adjustment of Conversion Price upon Subdivision or Combination of Common Stock.  If the Company, at any time while this Debenture is outstanding, shall (a) pay a stock dividend or otherwise make a distribution or distributions on all or substantially all shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (excluding any interest payments or equivalents thereto that are paid in shares of Common Stock and, for the avoidance of doubt, excluding conversions of warrants and other securities into shares of Common Stock), (b) subdivide outstanding shares of its Common Stock into a larger number of shares, (c) combine (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (d) issue by reclassification of shares of the Common Stock any shares of capital stock of the Company, then each of the Fixed Conversion Price and the Floor Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding before such event and of which the denominator shall be the number of shares of Common Stock outstanding after such event. Any adjustment made pursuant to this Section shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.
(b)Other Corporate Events.  In addition to and not in substitution for any other rights hereunder, prior to the consummation of any Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for shares of Common Stock (a “Corporate Event”), the Company shall make appropriate provision to ensure that the Holder will thereafter have the right to receive upon a conversion of this Debenture, at the Holder’s option, (i) in addition to the shares of Common Stock receivable upon such conversion, such securities or other assets to which the Holder would have been entitled with respect to such shares of Common Stock had such shares of Common Stock been held by the Holder upon the consummation of such Corporate Event (without taking into account any limitations or restrictions on the convertibility of this Debenture) or (ii) in lieu of the shares of Common Stock otherwise receivable upon such conversion, such securities or other assets received by the holders of shares of Common Stock in connection with the consummation of such Corporate Event in such amounts as the Holder would have been entitled to receive had this Debenture initially been issued with conversion rights for the form of such consideration (as opposed to shares of Common Stock) at a conversion rate for such consideration commensurate with the Conversion Rate.  Provision made pursuant to the preceding sentence shall be in a form and substance satisfactory to the Required Holders.  The provisions of this Section shall apply similarly and equally to successive Corporate Events and shall be applied without regard to any limitations on the conversion or redemption of this Debenture.
(c)Whenever the Conversion Price is adjusted pursuant to Section (5) hereof, the Company shall promptly provide the Holder with a written notice setting forth the Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment.
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(d)In case of any (1) merger or consolidation of the Company with or into another Person, or (2) sale by the Company or any Subsidiary of the Company of more than one-half of the assets of the Company on a consolidated basis in one or a series of related transactions, a Holder shall have the right to (A) exercise any rights under Section (3)(b), (B) convert the aggregate amount of this Debenture then outstanding into the shares of stock and other securities, cash and property receivable upon or deemed to be held by holders of Common Stock following such merger, consolidation or sale, and such Holder shall be entitled upon such event or series of related events to receive such amount of securities, cash and property as the shares of Common Stock into which such aggregate Principal amount of this Debenture could have been converted immediately prior to such merger, consolidation or sales would have been entitled, or (C) in the case of a merger or consolidation, require the surviving entity to issue to the Holder a convertible Debenture with a Principal amount equal to the aggregate Principal amount of this Debenture then held by such Holder, plus all accrued and unpaid interest and other amounts owing thereon, which such newly issued convertible debenture shall have terms identical (including with respect to conversion) to the terms of this Debenture, and shall be entitled to all of the rights and privileges of the Holder of this Debenture set forth herein and the agreements pursuant to which this Debentures were issued. In the case of clause (C), the conversion price applicable for the newly issued convertible debentures shall be based upon the amount of securities, cash and property that each share of Common Stock would receive in such transaction and the Conversion Price in effect immediately prior to the effectiveness or closing date for such transaction. The terms of any such merger, sale or consolidation shall include such terms so as to continue to give the Holder the right to receive the securities, cash and property set forth in this Section upon any conversion or redemption following such event. This provision shall similarly apply to successive such events.
(6)REISSUANCE OF THIS DEBENTURE.
(a)Transfer.  If this Debenture is to be transferred, the Holder shall surrender this Debenture to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Debenture (in accordance with Section (6)(d)), registered in the name of the registered transferee or assignee, representing the outstanding Principal being transferred by the Holder (along with any accrued and unpaid interest thereof) and, if less than the entire outstanding Principal is being transferred, a new Debenture (in accordance with Section (6)(d)) to the Holder representing the outstanding Principal not being transferred.  The Holder and any assignee, by acceptance of this Debenture, acknowledge and agree that, by reason of the provisions of Section (4)(b)(iii) following conversion or redemption of any portion of this Debenture, the outstanding Principal represented by this Debenture may be less than the Principal stated on the face of this Debenture.
(b)Lost, Stolen or Mutilated Debenture.  Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Debenture, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Debenture, the Company shall execute and deliver to the Holder a new Debenture (in accordance with Section (6)(d)) representing the outstanding Principal.
(c)Debenture Exchangeable for Different Denominations.  This Debenture is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Debenture or Debentures (in accordance with Section (6)(d)) representing in the aggregate the outstanding Principal of this Debenture, and each such new Debenture will represent such portion of such outstanding Principal as is designated by the Holder at the time of such surrender.
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(d)Issuance of New Debentures.  Whenever the Company is required to issue a new Debenture pursuant to the terms of this Debenture, such new Debenture (i) shall be of like tenor with this Debenture, (ii) shall represent, as indicated on the face of such new Debenture, the Principal remaining outstanding (or in the case of a new Debenture being issued pursuant to Section 5(6)(a) or Section 5(6)(c), the Principal designated by the Holder which, when added to the Principal represented by the other new Debentures issued in connection with such issuance, does not exceed the Principal remaining outstanding under this Debenture immediately prior to such issuance of new Debentures), (iii) shall have an issuance date, as indicated on the face of such new Debenture, which is the same as the Issuance Date of this Debenture, (iv) shall have the same rights and conditions as this Debenture, and (v) shall represent accrued and unpaid Interest from the Issuance Date.
(7)NOTICES.    Any notices, consents, waivers or other communications required or permitted to be given under the terms hereof must be in writing by letter and email and will be deemed to have been delivered: upon the later of (A) either (i) receipt, when delivered personally or (ii) one Business Day after deposit with an overnight courier service with next day delivery specified, in each case, properly addressed to the party to receive the same and (B) receipt, when sent by electronic mail. The addresses and email addresses for such communications shall be:
						
	If to the Company, to:	Xos, Inc.
		3550 Tyburn Street
		Los Angeles, CA 90065
		Telephone: [*] 
Attention: Kingsley Afemikhe; Christen Romero; Michael Jung
E-Mail: [*]; [*]; [*]
		
		
	with a copy (which shall not constitute notice) to:
	Cooley LLP
3 Embarcadero Center, 20th Floor
San Francisco, CA 94111
Telephone: [*]
Attention: David Peinsipp and Rachel Proffitt
Email: [*] and [*]

		
	If to the Holder:	YA II PN, Ltd
		c/o Yorkville Advisors Global, LLC
1012 Springfield Avenue

		Mountainside, NJ 07092
		Attention: Mark Angelo
		Telephone: [*]
		Email: [*]

or at such other address and/or email and/or to the attention of such other person as the recipient party has specified by written notice given to each other party three Business Days prior to the effectiveness of such change.  Written confirmation of receipt (i) given by the recipient of such notice, consent, waiver or other communication, (ii) electronically generated by the sender’s email service provider containing the time, date, recipient email address or (iii) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, 
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receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.
(8)Except as expressly provided herein, no provision of this Debenture shall alter or impair the obligations of the Company, which are absolute and unconditional, to pay the Principal of, interest and other charges (if any) on, this Debenture at the time, place, and rate, and in the coin or currency, herein prescribed.  This Debenture is a direct obligation of the Company. As long as this Debenture is outstanding, the Company shall not and shall cause its subsidiaries not to, without the consent of the Holder, (i) amend its certificate of incorporation, bylaws or other charter documents so as to adversely affect any rights of the Holder; (ii) repay, repurchase or offer to repay, repurchase or otherwise acquire shares of its Common Stock, except (A) pursuant to and in accordance with stock option plans or other benefit plans or agreements for directors, officers or employees of the Company and its Subsidiaries, (B) the repurchase of equity interests in the ordinary course of business in connection with the exercise of stock options, warrants or other convertible or exchangeable securities if such equity interests represent a portion of the exercise, conversion or exchange price, (C) the repurchase of equity interests in connection with the withholding of a portion of the equity interests granted or awarded to a current or former officer, director, employee or consultant to pay for the taxes payable by such person upon such grant or award (or upon vesting thereof), (D) the repurchase of its equity interests in an amount not to exceed $1,000,000 in any fiscal year, and (E) the Company may (x) purchase or pay cash in lieu of fractional shares of its equity interests arising out of stock dividends, splits, or business combinations or in connection with issuance of equity interests of the Company pursuant to mergers, consolidations or other acquisitions, and (y) pay cash in lieu of fractional shares upon the exercise of warrants, options or other securities convertible into or exercisable for equity interests of the Company; or (iii) enter into any agreement with respect to any of the foregoing. 
(9)This Debenture shall not entitle the Holder to any of the rights of a stockholder of the Company, including without limitation, the right to vote, to receive dividends and other distributions, or to receive any notice of, or to attend, meetings of stockholders or any other proceedings of the Company, unless and to the extent converted into shares of Common Stock in accordance with the terms hereof.
(10)This Debenture shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to conflicts of laws thereof.  Each of the parties consents to the jurisdiction of the Supreme Court of the State of New York located in the City of New York, Borough of Manhattan, and the U.S. District Court for the Southern District of New York in connection with any dispute arising under this Debenture and hereby waives, to the maximum extent permitted by law, any objection, including any objection based on forum non conveniens to the bringing of any such proceeding in such jurisdictions.  THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION DOCUMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES’ ACCEPTANCE OF THIS AGREEMENT.
(11)If the Company fails to strictly comply with the terms of this Debenture, then the Company shall reimburse the Holder promptly for all reasonable and documented fees, costs and expenses, including, without limitation, reasonable and documented attorneys’ fees and expenses incurred by the Holder in any action in connection with this Debenture, including, without limitation, those incurred: (i) during any workout, attempted workout, and/or in connection with the rendering of legal advice as to the Holder’s rights, remedies and obligations, (ii) collecting 
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any sums which become due to the Holder, (iii) defending or prosecuting any proceeding or any counterclaim to any proceeding or appeal; or (iv) the protection, preservation or enforcement of any rights or remedies of the Holder.
(12)Any waiver by the Holder of a breach of any provision of this Debenture shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Debenture. The failure of the Holder to insist upon strict adherence to any term of this Debenture on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Debenture. Any waiver must be in writing.
(13)If any provision of this Debenture is invalid, illegal or unenforceable, the balance of this Debenture shall remain in effect, and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder shall violate applicable laws governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum permitted rate of interest. The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the Company from paying all or any portion of the Principal of or interest on this Debenture as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this indenture, and the Company (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impeded the execution of any power herein granted to the Holder, but will suffer and permit the execution of every such as though no such law has been enacted.
(14)On or prior to the Debenture Issuance Date or the date a Debenture is transferred, each Holder shall provide the Company with a duly completed and executed Internal Revenue Service Form W-9 or appropriate W-8, as applicable. The Company shall be entitled to deduct or withhold from any payments under this Debenture any taxes it is required to deduct or withhold as required by applicable law. Each Holder agrees, and each beneficial owner of an interest in a Debenture, by its acquisition of such interest, is deemed to agree, that if the Company or other applicable withholding agent pays withholding taxes or backup withholding on behalf of such Holder or beneficial owner, then the Company or such withholding agent, as applicable, may, at its option, withhold from or set off such payments against payments of cash to the Holder of the Debenture.
(15)CERTAIN DEFINITIONS.  For purposes of this Debenture, the following terms shall have the following meanings:
(a)“Burn Rate” means, as of any date of determination, the average monthly net decrease in cash used in operating activities for the most recently reported quarter, as reported by the most recently published Annual Report on Form 10-K or Quarterly Report on Form 10-Q by the Company.
(b)“Bloomberg” means Bloomberg Financial Markets.
(c)“Business Day” means any day except Saturday, Sunday and any day which shall be a federal legal holiday in the United States or a day on which banking institutions are authorized or required by law or other government action to close.
(d)“Cash Runway” means, as of any date of determination, the quotient determined by dividing the sum of cash and cash equivalents (including, but not limited to, (i) 
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cash and cash equivalents, (ii) restricted cash, (iii) accounts receivable and (iv) marketable debt securities, available for sale — short term), as reported by the most recently published Annual Report on Form 10-K or Quarterly Report on Form 10-Q, by the Company, by the Burn Rate. 
(e)“Cash Runway Ratio” means, as of any date of determination, the quotient determined by dividing the Cash Runway, by the number of full 30-Day Periods remaining until the Maturity Date. 
(f)“Closing Price” means the price per share in the last reported trade of the Common Stock on a Primary Market or on the exchange which the Common Stock is then listed as quoted by Bloomberg.
(g)“Commission” means the Securities and Exchange Commission.
(h)“Common Stock” means the common stock, par value $0.0001, of the Company and stock of any other class into which such shares may hereafter be changed or reclassified.
(i)“Equity Conditions” means that each of the following conditions is satisfied: (i) on each day during the period beginning two weeks prior to the applicable date of determination and ending on and including the applicable date of determination (the “Equity Conditions Measuring Period”), either (x) the Underlying Shares Registration Statement filed pursuant to the Registration Rights Agreement shall be effective and available for the resale of all applicable shares of Common Stock to be issued in connection with the event requiring determination or (y) all applicable shares of Common Stock to be issued in connection with the event requiring determination shall be eligible for resale without restriction and without the need for registration under any applicable federal or state securities laws; (ii) on each day during the Equity Conditions Measuring Period, the Common Stock is designated for quotation on the Principal Market and shall not have been suspended from trading on such exchange or market nor shall delisting or suspension by such exchange or market been threatened or pending either (A) in writing by such exchange or market or (B) by falling below the then effective minimum listing maintenance requirements of such exchange or market; (iii) during the Equity Conditions Measuring Period, the Company shall have delivered Conversion Shares upon conversion of the Debentures to the Holder on a timely basis as set forth in Section (4)(b) hereof; (iv) any applicable shares of Common Stock to be issued in connection with the event requiring determination may be issued in full without violating Section (4)(c) hereof and the rules or regulations of the Primary Market; (v) during the Equity Conditions Measuring Period, there shall not have occurred either (A) an Event of Default or (B) an event that with the passage of time or giving of notice would constitute an Event of Default; and (vii) the Company shall have no knowledge of any fact that would cause (x) the Registration Statements required pursuant to the Registration Rights Agreement not to be effective and available for the resale of all applicable shares of Common Stock to be issued in connection with the event requiring determination or (y) any applicable shares of Common Stock to be issued in connection with the event requiring determination not to be eligible for sale without restriction and without the need for registration under any applicable federal or state securities laws. 
(j)“Exchange Act” means the Securities Exchange Act of 1934, as amended.
(k)“Floor Price” means $1.313 per share, or any reset Floor Price as determined in accordance with Section 2 or this definition, but no less than $0.50 per share. By means of a Floor Reset Notice, the Company may elect to increase the Floor Price to a previously effective Floor Price if the daily VWAP for each of the 10 most recent consecutive Trading Days was at least 25% above such previously effective Floor Price.
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(l)“Fundamental Transaction” means any of the following: (1) the Company effects any merger or consolidation of the Company with or into another Person and the Company is the non-surviving company (other than a merger or consolidation with a wholly owned Subsidiary of the Company for the purpose of redomiciling the Company), (2) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (3) any tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (4) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property. 
(m)“Other Debentures” means any other outstanding debentures issued pursuant to the Securities Purchase Agreement and any other debentures, notes, or other instruments issued in exchange, replacement, or modification of the foregoing. 
(n)“Person” means a corporation, an association, a partnership, organization, a business, an individual, a government or political subdivision thereof or a governmental agency.
(o)“Primary Market” means any of New York Stock Exchange, the NYSE MKT, the Nasdaq Global Market, the Nasdaq Global Select Market, or the OTC QB, and any successor to any of the foregoing markets or exchanges. 
(p)“Redemption Premium” means 5% of the Principal amount being prepaid pursuant to Section 2(a) or redeemed pursuant to Section 2(b), as applicable. 
(q)“Registration Event” shall mean an Event under Section 2(e) of the Registration Rights Agreement (as defined in the Securities Purchase Agreement).
(r) “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.
(s)“Short Sales” means all “short sales” as defined in Rule 200 promulgated under Regulation SHO under the Securities Exchange Act of 1934, as amended.
(t)“Significant Subsidiary” of any Person means any Subsidiary of that Person that constitutes a “significant subsidiary” (as defined in Rule 1-02(w) of Regulation S-X under the Exchange Act) of that Person.
(u)“Subsidiary” means, with respect to any Person, any corporation, association, partnership or other business entity of which more than 50% of the total voting power of shares of capital stock or other interests (including partnership interests) entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers, general partners or trustees thereof is at the time owned or controlled, directly or indirectly, by (i) such Person; (ii) such Person and one or more Subsidiaries of such Person; or (iii) one or more Subsidiaries of such Person. 
(v)“Trading Day” means a day on which the shares of Common Stock are quoted or traded on a Primary Market on which the shares of Common Stock are then quoted or listed; provided, that in the event that the shares of Common Stock are not listed or quoted, then Trading Day shall mean a Business Day.
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(w)“Transaction Document(s)” shall mean this Debenture, along with the Securities Purchase Agreement, and any other documents or agreements entered into in connection with the foregoing.  
(x)“Underlying Shares” means the shares of Common Stock issuable upon conversion of this Debenture or as payment of interest in accordance with the terms hereof.
(y)“Underlying Shares Registration Statement” means a registration statement meeting the requirements set forth in the Registration Rights Agreement, covering among other things the resale of the Underlying Shares and naming the Holder as a “selling stockholder” thereunder.  
(z)“VWAP” means, for any security as of any date, the daily dollar volume-weighted average price for such security on the Primary Market as reported by Bloomberg through its “Historical Prices – Px Table with Average Daily Volume” functions.
[Signature Page Follows]

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IN WITNESS WHEREOF, the Company has caused this Convertible Debenture to be duly executed by a duly authorized officer as of the date set forth above.
COMPANY:

XOS, INC.

By:                    
Name:     
Title:    

[Signature Page to Convertible Debentures]

EXHIBIT I
CONVERSION NOTICE
(To be executed by the Holder in order to Convert the Debenture)
To: Xos, Inc.
Via Email: 
The undersigned hereby irrevocably elects to convert a portion of the outstanding and unpaid Conversion Amount of Debenture No. XOS-1 into Shares of Common Stock of Xos, Inc., according to the conditions stated therein, as of the Conversion Date written below.
						
	Conversion Date:	
	Principal Amount to be Converted:	
	Accrued Interest to be Converted:	
	Total Conversion Amount to be converted:	
	Fixed Conversion Price:	
	Variable Conversion Price:	
	Applicable Conversion Price:	
	Number of shares of Common Stock to be issued:	
		
	Please issue the shares of Common Stock in the following name and deliver them to the following account:
	Issue to:	
	Broker DTC Participant Code:	
	Account Number:	
		
	Authorized Signature:	
	Name:	
	Title:Document

Exhibit 10.1

NOTE PURCHASE AGREEMENT
This Note Purchase Agreement, dated as of August 9, 2022, (this “Agreement”) is entered into by and among Xos, Inc., a Delaware corporation (the “Company”), and the persons and entities listed on Schedule I hereto, as amended from time to time with the issuance of each Note (as defined below) (each an “Investor” and, collectively, the “Investors”).
RECITALS
WHEREAS, the Company has authorized the sale and issuance of one or more convertible promissory notes as part of a series of convertible notes issued pursuant to this Agreement in substantially the form attached hereto as Exhibit A (each, a “Note” and, collectively, the “Notes”) with an aggregate principal amount of up to $40,000,000 (the “Authorized Amount”). 
WHEREAS, on the terms and subject to the conditions set forth herein, each Investor is willing to purchase from the Company, and the Company is willing to sell and issue to such Investor, a Note in the principal amount set forth opposite such Investor’s name on Schedule I hereto.
AGREEMENT
NOW THEREFORE, in consideration of the foregoing, and the representations, warranties, and conditions set forth below, the parties hereto, intending to be legally bound, hereby agree as follows:
1.The Notes.
(a)Issuance of Notes. The sale, purchase and issuance of the Notes shall take place at one or more closings via the electronic exchange of documents on the date hereof, or at such other time and place as the Company and the Investor purchasing the applicable Note at such time and place mutually agree upon, orally or in writing (each a “Closing”). In the event there is more than one closing, the term “Closing” shall apply to each such closing unless otherwise specified. At each Closing, subject to the terms and conditions of this Agreement, the Company hereby agrees to issue and sell to each Investor, and each Investor severally agrees to purchase a Note in the principal amount set forth opposite the respective Investor’s name on Schedule I hereto (each such principal amount, a “Purchase Price”), convertible into shares (together with any interest on the Notes paid in the form of shares of Common Stock, provided that such shares issued as payment for interest shall not exceed the Authorized Share Cap (as defined in the Notes), the “Conversion Shares”) of the Company’s common stock, par value $0.0001 per share (“Common Stock”). The obligations of each Investor to purchase a Note is several and not joint. 
(b)Closing. 
(i)Initial Closing. The initial Closing of the sale, purchase and issuance of a Note with an aggregate principal amount of $20,000,000 under this Agreement shall take place on the date hereof, or at such other time and place as the Company and Investor purchasing the Note at such time and place mutually agree upon, orally or in writing. 
(ii)Optional Closing. Upon the mutual written agreement of the Company and Aljomaih Automotive Company (“Aljomaih”) on or before November 30, 2022, the Company shall sell and issue one or more Notes, and the applicable participating Investor shall purchase one or more Notes, at a subsequent closing (the “Optional Closing”) with an aggregate principal amount of up to an additional $20,000,000. Any such sale and issuance of Notes in the Optional Closing shall be on the terms and conditions to be discussed in good faith between the Company and Aljomaih.
(iii)Delivery. At each Closing, subject to the terms and conditions of this Agreement, the Company will deliver to each Investor participating in such Closing, an executed Note in the name of the Investor in the principal amount purchased at such 

Closing by such Investor, against payment of the Purchase Price therefor by wire transfer pursuant to the instructions provided in writing by the Company.
2.Representations and Warranties of the Company. The Company severally represents and warrants to each Investor, as set forth below in this Section 2:
(a)Each of the Company and any of its Significant Subsidiaries (as defined in Rule 1-02(w) of Regulation S-X under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), (i) has been duly organized and is validly existing as a corporation or other business entity, as applicable, in good standing under the laws of the jurisdiction in which it is organized with full corporate or other power and authority to own or lease, as the case may be, and to operate its properties and conduct its business as described in the reports, schedules, forms, statements and other documents (the “SEC Documents”) required to be filed by it with the Securities and Exchange Commission (the “SEC”) and (ii) is duly qualified to do business as a foreign corporation or other business entity, as applicable, and is in good standing under the laws of each jurisdiction which requires such qualification, except in each case, where the failure to be so qualified or in good standing in any such jurisdiction would not, individually or in the aggregate, have a material adverse effect on the condition (financial or otherwise), prospects, earnings, business or properties of the Company and its subsidiaries, taken as a whole, whether or not arising from transactions in the ordinary course of business (a “Material Adverse Effect”).
(b)The SEC Documents, at the time they were filed with the SEC, conformed in all material respects to the requirements of the Exchange Act, and none of such documents contained any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
(c)The Company’s authorized equity capitalization is as set forth in the SEC Documents. The capital stock of the Company conforms to the descriptions thereof contained in the SEC Documents. The outstanding shares of Common Stock have been duly and validly authorized and issued and are fully paid and non-assessable. 
(d)This Agreement and each Note (together, the “Note Documents”), when executed and delivered, will have been duly authorized by the Company and will be valid and binding agreements of the Company, enforceable against the Company in accordance with their terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles. The Conversion Shares, when issued and paid for in accordance with the terms of the Note Documents, will have been duly authorized and will be duly and validly issued, fully paid and nonassessable, other than restrictions on transfer provided for in the Note Documents or imposed by applicable securities laws, and shall not be subject to preemptive rights, rights of first refusal or other similar rights. The Company has reserved from its duly authorized capital stock the maximum number of Conversion Shares issuable pursuant to this Agreement and the Notes.
(e)No consent, approval, authorization, filing with or order of any court or governmental agency or body is required in connection with the transactions contemplated herein, except such as may be required under the Securities Act of 1933, as amended (the “Securities Act”) or the blue sky laws of any jurisdiction in connection with the purchase of a Note by the applicable Investor in the manner contemplated herein.
(f)Neither the issue and sale of the Notes nor the consummation of any other of the transactions herein contemplated nor the fulfillment of the terms hereof will conflict with, result in a breach or violation of, or imposition of any lien, charge or encumbrance upon any property or assets of the Company pursuant to, (i) the organization documents of the Company, (ii) the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other agreement, obligation, condition, covenant or instrument to which the Company is a party or bound or to which its or their property is subject, or (iii) any statute, law, rule, regulation, judgment, order or decree applicable to the Company of any court, regulatory body, 
2

administrative agency, governmental body, arbitrator or other authority having jurisdiction over the Company or any of its properties.
(g)The consolidated historical financial statements and schedules of the Company and its consolidated subsidiaries included in SEC Documents present fairly, in all material respects, the financial condition, results of operations and cash flows of the Company as of the dates and for the periods indicated, comply as to form with the applicable accounting requirements of the Securities Act and have been prepared in conformity with generally accepted accounting principles applied on a consistent basis throughout the periods involved (except as otherwise noted therein).
(h)No action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its Significant Subsidiaries or its or their property is pending or, to the knowledge of the Company, threatened that (i) could reasonably be expected to have a material adverse effect on the performance of this Agreement or the consummation of any of the transactions contemplated hereby or (ii) could reasonably be expected to have a Material Adverse Effect.
(i)Each of the Company and each of its Significant Subsidiaries owns or leases all such properties as are necessary to the conduct of its operations as presently conducted.
(j)The Company is not in violation or default of (i) any provision of its charter, bylaws or other organizational document, (ii) the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other agreement, obligation, condition, covenant or instrument to which it is a party or bound or to which its property is subject, or (iii) any statute, law, rule, regulation, judgment, order or decree of any court, regulatory body, administrative agency, governmental body, arbitrator or other authority having jurisdiction over the Company or any of its properties, as applicable, except, in the case of the foregoing clauses (ii) and (iii), for such defaults as would not, individually or in the aggregate, have a Material Adverse Effect.
(k)WithumSmith+Brown, PC, who have certified certain financial statements of the Company and its consolidated subsidiaries and delivered their report with respect to the audited consolidated financial statements and schedules included in the SEC Documents, are independent public accountants with respect to the Company within the meaning of the Securities Act and the applicable published rules and regulations thereunder.
(l)The Company and its Significant Subsidiaries have filed all tax returns that are required to be filed or have requested extensions thereof (except in any case in which the failure so to file would not reasonably be expected to have a Material Adverse Effect) and has paid all taxes required to be paid by it and any other assessment, fine or penalty levied against it, to the extent that any of the foregoing is due and payable, except for any such assessment, fine or penalty that is currently being contested in good faith or as would not have a Material Adverse Effect.
(m)The Company and its Significant Subsidiaries possess all licenses, certificates, permits and other authorizations issued by all applicable authorities necessary to conduct their respective businesses, and neither the Company nor any such subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would reasonably be expected to have a Material Adverse Effect.
(n)The Company and its Significant Subsidiaries are (i) in compliance with applicable foreign, federal, state and local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”), except where such non-compliance with Environmental Laws would not, individually or in the aggregate, could be reasonably be expected to have a Material Adverse Effect.
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(o)Neither the Company nor any of its Significant Subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee, affiliate or other person acting on behalf of the Company or any of its Significant Subsidiaries is aware of or has taken any action, directly or indirectly, that could result in a violation or a sanction for violation by such persons of the Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”), or similar law of any other relevant jurisdiction, or the rules or regulations thereunder; and the Company and its Significant Subsidiaries have instituted and maintain policies and procedures to ensure compliance therewith. No part of the proceeds of the offering will be used, directly or indirectly, in violation of the FCPA or similar law of any other relevant jurisdiction, or the rules or regulations thereunder. 
(p)The operations of the Company and its Significant Subsidiaries are and have been conducted at all times in compliance with applicable financial recordkeeping and reporting requirements and the anti-money laundering statutes and the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Anti-Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its Significant Subsidiaries with respect to the Anti-Money Laundering Laws is pending or, to the best knowledge of the Company, threatened.
(q)No “Bad Actor” disqualifying event described in Rule 506(d)(1)(i) to (viii) of the Securities Act, (a “Disqualification Event”) is applicable to the Company, except for a Disqualification Event to which Rule 506(d)(2)(ii-iv) or (d)(3) of the Securities Act, is applicable.
3.Representations and Warranties of the Investors. Each Investor, individually and not jointly with any other Investor, represents and warrants to the Company as set forth in this Section 3:
(a)Each Investor has full legal capacity, power and authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement and each Note purchased by the applicable Investor, when executed and delivered, will have been duly authorized by the applicable Investor and will be valid and binding agreements of the applicable Investor, enforceable against such Investor in accordance with their terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles. 
(b)Neither the issue and sale of the Notes, the issuance of the Conversion Shares nor the consummation of any other of the transactions herein contemplated nor the fulfillment of the terms hereof will conflict with, result in a breach or violation of, or imposition of any lien, charge or encumbrance upon any property or assets of the applicable Investor pursuant to, (i) the organizational documents of the applicable Investor, (ii) the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other agreement, obligation, condition, covenant or instrument to which the applicable Investor is a party or bound or to which its property is subject, or (iii) any statute, law, rule, regulation, judgment, order or decree applicable to the applicable Investor of any court, regulatory body, administrative agency, governmental body, arbitrator or other authority having jurisdiction over the applicable Investor or any of its properties.
(c)Each Investor has not been formed solely for the purpose of making this investment and is purchasing the Note, and subsequent issuance of the Conversion Shares, for its own account for investment, not as a nominee or agent, and not with a view to, or for resale in connection with, any immediate distribution thereof. Each Investor has been advised that the Notes and the Conversion Shares have not been registered under the Securities Act, or any state securities laws and, therefore, cannot be resold unless they are registered under the Securities Act and applicable state securities laws or unless an exemption from such registration requirements is available. Except as set forth in that certain Registration Rights Agreement by and between the Company and certain Investors listed therein, each Investor is aware that the Company is under no obligation to effect any such registration with respect to the Note or the Conversion Shares to 
4

file for or comply with any exemption from registration. Each Investor has such knowledge and experience in financial and business matters that the applicable Investor is capable of evaluating the merits and risks of such investment, is able to incur a complete loss of such investment and is able to bear the economic risk of such investment for an indefinite period of time. Each Investor is an accredited investor as such term is defined in Rule 501 of Regulation D under the Securities Act. 
(d)Each Investor has had an opportunity to receive all information related to the Company requested by it and to ask questions of and receive answers from the Company regarding the Company, its business and the terms and conditions of the offering of the Notes and Conversion Shares. Each Investor acknowledges receipt of copies of the SEC Documents (or access thereto via EDGAR). Neither such inquiries nor any other due diligence investigation conducted by the applicable Investor shall modify, limit or otherwise affect such Investor’s right to rely on the Company’s representations and warranties contained in this Agreement.
(e)Each Investor acknowledges that it is not relying upon any person, firm or corporation in making its investment or decision to invest in the Company. Each Investor agrees that neither such Investor nor the respective controlling persons, officers, directors, partners, agents, or employees of such Investor shall be liable to any other Investor for any action heretofore or hereafter taken or omitted to be taken by any of them in connection with the purchase of the Notes or the issuance of the Conversion Shares.
(f)Each Investor understands that the Notes and the Conversion Shares are characterized as “restricted securities” under the Securities Act in as much as they are being acquired from the Company in a transaction not involving a public offering and that under the Securities Act and applicable regulations thereunder such securities may be resold without registration under the Securities Act only in certain limited circumstances. Each Investor represents that such Investor is familiar with the provisions of Rule 144 promulgated under the Securities Act (“Rule 144”), as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act. Each Investor understands that no public market now exists for any of the Notes and that it is uncertain whether a public market will ever exist for the Notes. 
(g)The residency of each Investor (or, in the case of a partnership or corporation, such entity’s principal place of business) is correctly set forth on Schedule I hereto.
(h)No Investor has engaged any brokers, finders or agents, and neither the Company nor any other Investor has, nor will, incur, directly or indirectly, as a result of any action taken by any other Investor, any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with the Note Documents or any of the transactions contemplated thereby. 
(i)Each Investor has reviewed with its own tax advisors the U.S. federal, state, local and foreign tax consequences of this investment and the transactions contemplated by the Note Documents. With respect to such matters, each Investor has relied, and will have relied, at each applicable Closing, solely on such advisors and not on the statements or representations of the Company or any of its agents, written or oral. Each Investor understands that it (and not the Company) shall be responsible for its own tax liability that may arise as a result of this investment or the transactions contemplated by the Note Documents.
(j)Regulation S Exemption.
(i)Each Investor who is not a U.S. person (as defined in Rule 902(k) of Regulation S) (“Non-U.S. Investor”) acknowledges that the Company will rely on such Non-U.S. Investor’s representations, warranties and certifications set forth below for purposes of determining such Non-U.S. Investor’s suitability as an investor in the Notes, and subsequent holder of the Conversion Shares, and for purposes of confirming the availability of the Regulation S exemption from the registration requirements of the Securities Act.
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(ii)Non-U.S. Investor understands that the Notes, and the subsequent issuance of the Conversion Shares, at the time of issuance may not be registered under the Securities Act or any other applicable securities laws, and that the Notes, and the subsequent issuance of the Conversion Shares, are being issued pursuant to the exemption from the registration requirements under the Securities Act provided by Regulation S under the Securities Act. Non-U.S. Investor also understands that the Notes, and the subsequent issuance of the Conversion Shares, may not be offered, sold or otherwise transferred except in compliance with the registration requirements of the Securities Act and any other applicable securities laws or pursuant to an exemption therefrom, and in each case in compliance with the conditions set forth in this Section 3(j).
(iii)At the time of the decision to purchase the Notes, Non-U.S. Investor was, and Non-U.S. Investor currently is, outside of the United States (as defined in Rule 902(l) of Regulation S), and Non-U.S. Investor is not a U.S. person (as defined in Rule 902(k) of Regulation S). In particular, Non-U.S. Investor affirms that such Non-U.S. Investor is not organized or incorporated under the laws of the United States and such Non-U.S. Investor was not formed by U.S. persons principally for the purpose of investing in securities not registered under the Securities Act. Such Non-U.S. Each Investor has satisfied itself as to the full observance of the laws of such Non-U.S. Investor’s jurisdiction in connection with any invitation to subscribe for the Notes, and the subsequent issuance of the Conversion Shares, or any use of the Notes, and the subsequent issuance of the Conversion Shares, including (A) the legal requirements within such Non-U.S. Investor’s jurisdiction for the purchase of the Securities, (B) any foreign exchange restrictions applicable to such purchase, (C) any governmental or other consents that may need to be obtained, and (D) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer of the Securities. Non-U.S. Investor’s subscription, payment for and continued beneficial ownership of the Notes and/or the subsequent issuance of the Conversion Shares will not violate any applicable securities or other laws of such Non-U.S. Investor’s jurisdiction.
(iv)Non-U.S. Investor confirms that the Notes, and the subsequent issuance of the Conversion Shares, will be acquired for investment by such Non-U.S. Investor and not for the account or benefit of a U.S. person, and not with a view to the resale or “distribution” (within the meaning of the Act) of any part of the Notes, and the subsequent issuance of the Conversion Shares, in the United States or to a U. S. person.
(k)Each Investor has not taken any of the actions set forth in, and is not subject to, the disqualification provisions of Rule 506(d)(1) of the Securities Act.
(l)Without in any way limiting the representations set forth above:
(i)Each Investor acknowledges and agrees that it will not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of) any of the Notes purchased, and the subsequent issuance of the Conversion Shares, hereunder except in compliance with the Securities Act, applicable blue sky laws, and the rules and regulations promulgated thereunder.
(ii)Each Investor acknowledges and agrees that it will not offer, sell or otherwise transfer the Notes, and the subsequent issuance of the Conversion Shares, prior to the date which is one year after the original issue date of the respective Notes, other than (A) to the Company, (B) pursuant to a registration statement that has been declared effective under the Securities Act, (C) in the case of a Non-U.S. Investor, pursuant to offers and sales that occur outside the United States in a transaction meeting the requirements of Rule 904 of Regulation S under the Securities Act, or (D) pursuant to another available exemption from the registration requirements of the Securities Act, 
6

subject to the Company’s right prior to any such offer, sale or transfer pursuant to clause (C) or (D) to require (1) advance written notification to the Company of the proposed disposition with a detailed statement of the circumstances surrounding the proposed disposition and (2) the delivery of an opinion of counsel, certificates, and/or other information reasonably satisfactory to the Company (including, without limitation, the execution by the transferee of Notes or the Conversion Shares of a letter with representations, warranties and certifications substantially similar to those provided in this Section 3). Notwithstanding the foregoing, no such registration statement or opinion of counsel shall be required: (a) for any transfer of any Notes in compliance with SEC Rule 144 or Rule 144A, or (b) for any transfer of any Notes or Conversion Shares by an Investor that is a partnership or a corporation without payment of consideration to (1) a partner of such partnership or stockholder of such corporation or (2) a controlled Affiliate, successor or partner of such partnership or corporation; provided, that in each of the foregoing cases the transferee agrees in writing to be subject to the terms of this Section 3 to the same extent as if the transferee were an original Investor hereunder.
(iii)Each Investor acknowledges and agrees that it will not engage in hedging transactions involving any of the Notes or the Conversion Shares unless such transactions are in compliance with the Securities Act.
(iv)Each Investor is aware that the Notes, and the subsequent issuance of the Conversion Shares, may not be sold pursuant to Rule 144 adopted under the Securities Act unless certain conditions are met and until the undersigned has held the Securities for the applicable holding period under Rule 144.
(v)Each Investor further agrees that any offer, sale or other disposition of the Notes or Conversion Shares shall be subject to the restrictions on transfer set forth in the Note.
(m)It is understood that the certificates evidencing the Notes or Conversion Shares will bear the legends set forth below, as applicable:
(i)[NEITHER] THIS SECURITY [NOR THE COMMON STOCK INTO WHICH THIS SECURITY IS CONVERTIBLE] [HAVE][HAS] BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE SOLD, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH REGULATION S, PURSUANT TO A REGISTRATION UNDER THE ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS. IN ADDITION, NO HEDGING TRANSACTION MAY BE CONDUCTED WITH RESPECT TO THESE SECURITIES UNLESS SUCH TRANSACTION IS IN COMPLIANCE WITH THE ACT. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.
(ii)Any legend required by the securities laws of any state to the extent such laws are applicable to the shares represented by the certificate so legended;
(iii)A legend required under Treasury Regulation Section 1.1275-3.
(n)Each Investor acknowledges that it had the opportunity to review this Agreement and the transactions contemplated by this Agreement with its own legal counsel and investment and tax advisors. Each Investor is relying solely on such counsel and advisors and not on any statements or representations of the Company or any of the Company’s representatives or agents 
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for legal, tax, investment or other advice with respect to the Investor acquisition of securities hereunder, the transactions contemplated by this Agreement or the laws of any jurisdiction.
4.Conditions to Closing of the Investor. Each Investor’s obligation to purchase the Note at a Closing is subject to the satisfaction, at or prior to such Closing, of the following conditions:
(a)The representations and warranties made by the Company in Section 2 hereof shall have been true and correct when made, and shall be true and correct in all respects, or with respect to those representations and warranties that do not contain any materiality qualifier in all material respects, on the date of the applicable Closing. 
(b)Except for any notices required or permitted to be filed after such Closing with certain federal and state securities commissions, the Company shall have obtained all governmental approvals required in connection with the lawful sale and issuance of the Notes.
(c)At such Closing, the sale and issuance by the Company, and the purchase by the Investor, of the Notes shall be legally permitted by all laws and regulations to which the Investor or the Company are subject.
(d)The Company shall have duly executed and delivered to the Investor: this Agreement and each Note issued hereunder at such Closing; 
5.Conditions to Obligations of the Company. The Company’s obligation to issue and sell the Notes to the Investors at a Closing is subject to the satisfaction, on or prior to such Closing, of the following conditions:
(a)The representations and warranties made by the Investors in Section 3 hereof shall be true and correct on the Closing Date, with the same force and effect as if they had been made on and as of said date.
(b)At such Closing, the sale and issuance by the Company, and the purchase by the Investors, of the Notes shall be legally permitted by all laws and regulations to which the Investors or the Company are subject.
(c)The Investors shall have each delivered to the Company the Purchase Price in respect of the Note being purchased by the Investor referenced in Schedule I.
(d)The Investors shall have each delivered to the Company the applicable tax forms described in Section 5(m)(ii) of the Note.
6.Additional Agreements.
(a)Notwithstanding any such right currently in existence, Aljomaih shall have the right to designate one individual (the “Designated Director”) for nomination to the Company’s Board of Directors (the “Board”), subject to the approval of the Company and the Board (such determination to be made in the reasonable discretion of the Company and the Board acting in good faith and consistent with the Company’s nominating and governance practices in effect from time to time). The Designated Director shall provide any information reasonably requested by the Company or the Board. The Designated Director shall execute a written consent agreeing to resign (i) no later than the Director Right Termination Date (defined in Section 6(c)) and (ii) upon the request of the Board in connection with a Change of Control. “Change of Control” shall mean (a) a sale, directly or indirectly, to a third party, in a transaction or series of transaction, of all or substantially all of the consolidated assets of the Company, whether effected by merger, consolidation or other business combination transaction, (b) a merger, sale of the equity securities of the Company, consolidation or other business combination transaction of the Company with or into another corporation, limited liability company or other entity pursuant to which stockholders of the Company prior to such sale, merger, consolidation or other capital reorganization or 
8

business combination transaction own less than 50% of the voting interests or beneficial interests in the Company or surviving or resulting entity, or (c) the consummation of any transaction, including any merger or consolidation, the result of which is that any “person” or group becomes the owner of directly or indirectly, of more than 50% of the voting interests or beneficial interests in the Company.
(b)If the proposed Designated Director is not approved by the Company or the Board, Aljomaih shall have the right to submit another proposed Designated Director for approval on the same basis as set forth in Section 6(a). Aljomaih shall have the right to continue such submissions until it receives the reasonable approval of the Company and the Board.
(c)Subject to Section 6(a), the Designated Director will be designated for nomination as a Class I director and a member of the Board as soon as reasonably practicable and shall continue as a director of the Board until the Director Right Termination Date (defined below), subject to applicable law, SEC regulations, Nasdaq listing standards and Company policy with respect to the Board. The “Director Right Termination Date” shall mean the earlier of the date that (i) Aljomaih first no longer owns at least 5% of the then outstanding shares of Common Stock, with equitable adjustments in the event of any share split, stock dividend or consolidation, or any recapitalization, amalgamation, arrangement, reorganization, exchange or similar reclassification (the “Minimum Ownership Threshold”), or (ii) is 30 days immediately prior to the next election of Class I directors (which is expected to be in the year 2025). If a Designated Director ceases to serve as a member of the Board at any time prior to the Director Termination Date, then Aljomaih shall be permitted to nominate another individual as a Designated Director pursuant to the provisions set forth in Section 6(a) herein, provided that any such right to designate a replacement Designated Director shall terminate on (i) the Director Right Termination Date or (ii) the date of resignation of a Designated Director due to a Change of Control pursuant to Section 6(a).
(d)During the Restricted Period (defined below) Aljomaih will have a right of first offer (“Right of First Offer”) with respect to any product future distribution of products or services offered by Xos in the Middle East Region (a “Restricted Transaction”). The “Middle East Region” shall consist of the following countries: Cooperation Council for the Arab States of the Gulf (Saudi Arabia, Bahrain, Kuwait, United Arab Emirates, Qatar and Oman), Jordan, Iraq, Syria, Lebanon, Egypt and Yemen. The Right of First Offer will have an exercise period of 20 business days following Aljomaih’s receipt of an offer notice (satisfying Section 8(h) herein) made by the Company. “Restricted Period” shall mean the period that commences on the date of this Agreement and terminates upon the earlier of (i) the first date Aljomaih no longer satisfies the Minimum Ownership Threshold, or (ii) the three-year anniversary from the date hereof.
(e)Registration Rights.
(i)Reference is made to that Amended and Restated Registration Rights Agreement, dated as of August 26, 2021, by and among the Company and the parties thereto (the “Registration Rights Agreement”). For purposes of this Section 6(e), capitalized terms not defined herein have the meaning ascribed to them in the Amended and Restated Registration Rights Agreement, dated as of August 26, 2021, by and among the Company and the parties thereto.
(ii)As soon as practicable after September 1, 2022 but no later than September 16, 2022, the Company shall submit to or file with the SEC a Registration Statement for a Shelf Registration on Form S-3 (the “Form S-3 Shelf”) or a Registration Statement for a Shelf Registration on Form S-1 (the “Form S-1 Shelf”), if the Company is not then eligible to use a Form S-3 Shelf, for a Shelf Registration covering the resale of all the Registrable Securities (determined as of two business days prior to such submission or filing) on a delayed or continuous basis and shall use its commercially reasonable efforts to have such Shelf declared effective as soon as practicable after the filing thereof, but no later than the earlier of (a) the 60th calendar day following the filing date thereof if the SEC notifies the Company that it will “review” the Registration 
9

Statement and (b) the fifth business day after the date the Company is notified (orally or in writing, whichever is earlier) by the SEC that the Registration Statement will not be “reviewed” or will not be subject to further review. Such Shelf shall provide for the resale of the Conversion Shares pursuant to any method or combination of methods legally available to, and requested in writing by Aljomaih. The Company will use its commercially reasonable efforts to provide a draft of such Registration Statement to Aljomaih for review at least two business days in advance of the date of filing of such Registration Statement with the SEC; provided that for the avoidance of doubt, in no event shall the Company be required to delay or postpone the filing of such Registration Statement as a result of or in connection with Aljomaih’s review. The Company shall maintain a Shelf in accordance with the terms hereof, and shall prepare and file with the Commission such amendments, including post-effective amendments, and supplements as may be necessary to keep a Shelf continuously effective, available for use to permit Aljomaih to sell the Conversion Shares included therein and in compliance with the provisions of the Securities Act until such time as there are no longer any Conversion Shares that are Registrable Securities. In the event the Company files a Form S-1 Shelf, the Company shall use its commercially reasonable efforts to convert the Form S-1 Shelf (and any Subsequent Shelf Registration Statement) to a Form S-3 Shelf as soon as practicable after the Company is eligible to use Form S-3. The Company’s obligation under this Section 6(e), shall, for the avoidance of doubt, be subject to Section 3.5 of the Registration Rights Agreement.
(iii)The Company acknowledges that the Conversion Shares are Registrable Securities under the Registration Rights Agreement, and that Aljomaih’s registration rights under the Registration Rights Agreement shall apply to the Conversion Shares for a period of 10 years from the date hereof so long as they continue to be Registrable Securities.
7.Confidentiality of Records. Each Investor agrees to use the same degree of care as such Investor uses to protect its own confidential information to keep confidential any information furnished to such Investor pursuant to any Note Document (so long as such information is not in the public domain), except that such Investor may disclose such proprietary or confidential information (i) to any Affiliate, partner, member, stockholder, subsidiary or parent of such Investor as long as such partner, subsidiary or parent is advised of and agrees or has agreed to be bound by the confidentiality provisions of this Section 7 or comparable restrictions; (ii) at such time as it enters the public domain through no fault of such Investor or its Affiliate; (iii) that is communicated to it free of any obligation of confidentiality; (iv) that is developed by Investor or its agents independently of and without reference to any confidential information communicated by the Company; (v) as required by applicable law; (vi) to its attorneys, accountants, consultants, and other professionals to the extent necessary to obtain their services in connection with monitoring its investment in the Company; or (vii) to any prospective purchaser of any Notes from such Investor, if such prospective purchaser agrees to be bound by the provisions of this Section 7. 
8.Miscellaneous.
(a)Any provision of this Agreement may be amended, waived or terminated only upon the written consent of the Company and Investors holding a majority of the outstanding principal amount of the Notes (the “Majority Investors”). Each Investor acknowledges that by the operation of this paragraph, the Majority Investors will have the right and power to diminish or eliminate all rights of any Investor under this Agreement; provided, however, that in no event shall any amendment, waiver or modification of this Agreement affect any Investor or subset of the Investors in a manner different from the other Investors, and no waiver or modification that applies to one or more (but not all) Investors differently than to all Investors shall become effective until approved by such differently affected Investor.
(b)NOTWITHSTANDING THE PLACE WHERE THIS AGREEMENT MAY BE EXECUTED BY ANY OF THE PARTIES HERETO, THE PARTIES EXPRESSLY AGREE THAT (1) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED UNDER 
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THE LAWS OF THE STATE OF NEW YORK AND (2) THE VENUE FOR ANY ACTION TAKEN WITH RESPECT TO THIS AGREEMENT SHALL BE ANY STATE OR FEDERAL COURT IN NEW YORK COUNTY IN THE STATE OF NEW YORK
(c)EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND, THEREFORE, EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY ACTION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.
(d)The representations and warranties made herein shall survive the execution and delivery of this Agreement.
(e)Subject to the restrictions on transfer described in Section 8(f) below and Section 5(m)(v) of the Note, the rights and obligations of the Company and each Investor shall be binding upon and benefit the registered successors, assigns, heirs, administrators and transferees of the parties.
(f)The Notes issuable under this Agreement shall be registered in the books of the Company. The Company will keep, at its principal executive office, books for the registration and registration of transfer of the Notes. Prior to presentation of a Note for registration of transfer, the Company shall treat the Person in whose name such Note is registered as the owner and holder of such Note for all purposes whatsoever, whether or not such Note shall be overdue, and the Company shall not be affected by notice to the contrary. Subject to any restrictions on or conditions to transfer set forth in any Note, the holder of any Note, at its option, may in person or by duly authorized attorney surrender the same for exchange at the Company’s chief executive office, and promptly thereafter and at the Company’s expense, except as provided below, receive in exchange therefor one or more new Note(s), each in the principal requested by such holder, dated the date to which interest shall have been paid on the Note so surrendered or, if no interest shall have yet been so paid, dated the date of the Note so surrendered and registered in the name of such Person or Persons as shall have been designated in writing by such holder or its attorney for the same principal amount as the then unpaid principal amount of the Note so surrendered. Upon receipt by the Company of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note and (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it; or (b) in the case of mutilation, upon surrender thereof, the Company, at its expense, will execute and deliver in lieu thereof a new Note executed in the same manner as the Note being replaced, in the same principal amount as the unpaid principal amount of such Note and dated the date to which interest shall have been paid on such Note or, if no interest shall have yet been so paid, dated the date of such Note.
(g)This Agreement together with the Notes constitute and contain the entire agreement among the Company and the Investors and supersede any and all prior agreements, negotiations, correspondence, understandings and communications among the parties, whether written or oral, respecting the subject matter hereof.
(h)All notices, requests, demands, consents, instructions or other communications required or permitted hereunder shall be in writing and mailed, electronically mailed or delivered to each party as follows: (i) if to an Investor, at the Investor’s address or electronic address set forth on Schedule I hereto, or at such other address or electronic address as the Investor shall have furnished the Company in writing or (ii) if to the Company, at 3550 Tyburn Street, Los Angeles, California 90065, Attention: General Counsel, Email: [*] with a copy to 3550 Tyburn Street, Los Angeles, California 90065, Attention: Chief Financial Officer, Email: [*], or at such other address or electronic address as the Company shall have furnished to the Investors in writing, with a copy (which shall not constitute notice) to Cooley LLP, Cooley LLP, 3 Embarcadero Center, 20th 
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Floor, San Francisco, California 94111, Attention: David Peinsipp and Rachel Proffitt, Email: [*] and [*]. All such notices and communications will be deemed effectively given the earlier of (i) when received, (ii) when delivered personally, (iii) when sent via electronic mail, upon confirmation of delivery when directed to the relevant electronic mail address, (iv) one business day after being deposited with an overnight courier service of recognized standing or (v) four business days after being deposited in the U.S. mail, first class with postage prepaid.
(i)If any provision of this Agreement shall be judicially determined to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.
(j)This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement may also be executed and delivered by facsimile signature, PDF or any electronic signature complying with the U.S. federal ESIGN Act of 2000 (e.g., www.docusign.com).
(k)Each party shall be responsible for their own expenses (including fees of outside counsel and all other third-party consultants) incurred in connection with the transactions contemplated hereby.
(l)All currency amounts set forth in this Agreement are in U.S. Dollars.
[remainder of page intentionally left blank]
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IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed as of the date first written above.
XOS, INC.

By:    /s/ Kingsley Afemikhe
Name:    Kingsley Afemikhe
Title:    Chief Financial Officer

[Signature Page to Note Purchase Agreement]

ALJOMAIH AUTOMOTIVE CO.

By:    /s/ Ibrahim M. Aljomaih        
Name:    Ibrahim M. Aljomaih
Title:    Vice Chairman & Managing Director    
[Signature Page to Note Purchase Agreement]

SCHEDULE I
Schedule of Investors
						
	Investor	Principal Amount/ Purchase Price
	

Aljomaih Automotive Co.

Aljomaih Automotive Company
P.O. Box 224
King Khalid Street 
31471 Dammam
Kingdom of Saudi Arabia

Attention: Ibrahim M. Aljomaih
Email: [*]

with a copy (which shall not constitute notice) to:

Duane Morris LLP
201 S. Biscayne Boulevard, Suite 3400
Miami, Florida 33131
Attention: Robert Zinn and Jennifer Migliori
Email: [*] and [*]
	$20,000,000.00
	Total	$20,000,000.00

EXHIBIT A
Form of Convertible Promissory Note
[attached]

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