Document:

ex101312312020

-1- INCENTIVE AWARD AGREEMENT  This Incentive Award Agreement (this “Agreement”) is made as of  %%OPTION_DATE,’MONTH DD, YYYY’%-%, between ARGO GROUP INTERNATIONAL  HOLDINGS, LTD. (the “Company”), and %%FIRST_NAME%-% %%MIDDLE_NAME%-%  %%LAST_NAME%-% (the “Participant”).  R E C I T A L S  A. The Company's 2019 Omnibus Incentive Plan (as amended from time to time, the “Plan”) provides for the granting of Restricted Stock Awards and Other Cash-Based Awards  (“Cash Awards” and, collectively with Restricted Stock Awards, “LTI Awards”) by the Company.  B. Pursuant to the Plan, the administration of the Plan has been delegated to the Human Resources Committee of the Board of Directors of the Company (the “Committee”).  C. Pursuant to the Plan, the Committee has determined that it is in the best interest of the Company and its stockholders to grant this LTI Award to Participant with the target value  specified below as an inducement to remain in the employ of the Company or accept employment  with the Company and as an incentive for increased effort during such service and the Committee  has approved the execution of this Agreement.   D. Capitalized terms not defined herein shall have the meanings specified in the Plan. A G R E E M E N T  NOW, THEREFORE, the parties hereto agree as follows:  A. Restricted Stock Award 1. The Company hereby grants Participant a Restricted Stock Award having a target value of %%TOTAL_SHARES_GRANTED,'999,999,999'%-% shares of Common Stock (the  “Shares”), subject to the achievement of the performance goals and thresholds set forth in Exhibit  A hereto, if any. The target amount may be adjusted upwards or downwards based on the criteria  set forth in Exhibit A to determine the final earned amount of the Restricted Stock Award (the  “Earned Shares”). In the event the Restricted Stock Award is not subject to any performance  criteria (other than Participant’s continued service), the Earned Shares will be the target number  of Shares set forth above.   2. Participant shall not be deemed vested in the Earned Shares (if any) and shall not have any of the rights or privileges of a stockholder of the Company in respect of the Earned Shares  until such Shares become vested as hereinafter provided (“Vested Shares”). The Earned Shares  shall become Vested Shares according to the following schedule, provided that on each indicated  vesting date Participant remains an employee of the Company or a Subsidiary:   Exhibit 10.13 

 

  -2-    Vest Date Shares Vesting          In the event that Participant ceases for any reason (other than as indicated in Section C.1. and  Section C.2. below) to be an employee of the Company or any Subsidiary prior to an indicated  vesting date, then the portion of any Earned Shares which has not theretofore become vested shall  automatically be forfeited and returned to the Company. Subject to Section A.4. below, as  promptly as practicable after the Earned Shares become Vested Shares, the Company shall issue  certificates representing such Shares (or register such Shares via book entry).      3. Notwithstanding anything in this Agreement to the contrary, the Company shall  have the right to repurchase Earned Shares from Participant by providing written notice to  Participant not less than ten (10) days prior to the date on which such Shares would otherwise  become Vested Shares.  The purchase price shall be paid in cash in an amount equal to the Fair  Market Value of the Earned Shares to be repurchased on the date that such Shares would otherwise  become Vested Shares.    4. No Vested Shares shall be issued or delivered unless and until there shall have been  full compliance with all applicable requirements of the United States Securities Act of 1933, all  applicable listing requirements of any national securities exchange on which shares of the same  class are then listed and any other requirements of law or of any regulatory bodies having  jurisdiction over such issuance and delivery.     B.  Cash Award    1. The Company hereby grants a Cash Award to Participant having a target value of  %%GRANT_USER_DEFINED_FIELD_1%-%, subject to the achievement of the performance  goals and thresholds set forth in Exhibit A hereto, if any. The target value may be adjusted upwards  or downwards based on the criteria set forth in Exhibit A to determine the final earned amount of  the Cash Award (the “Earned Cash Value”). In the event the Cash Award is not subject to any  performance criteria (other than Participant’s continued service), the Earned Cash Value will be  the target value set forth above.      2. Participant shall not be deemed vested in the Earned Cash Value until it has vested  as hereinafter provided (the “Vested Cash Award”). The Earned Cash Value shall become a Vested  Cash Award according to the following schedule, provided that on each indicated Vesting Date  Participant remains an employee of the Company or a Subsidiary:                 Vest Date Cash Vesting           

 

  -3-  The Vested Cash Award shall be paid by the Company in cash (in the same currency as  Participant’s payroll) as promptly as practicable following the applicable vesting date and in no  event later than March 15th of the year following the year in which such vesting occurs. In the  event that Participant ceases for any reason (other than as indicated in Section C.1. and Section  C.2. below) to be an employee of the Company or any Subsidiary prior to an indicated vesting  date, then the portion of the Earned Cash Value which has not theretofore become vested shall  automatically be forfeited and returned to the Company.    C. Additional LTI Award Terms and Conditions     1. Change in Control. Notwithstanding the vesting schedule set forth in Section A.2.  and Section B.2. above, the following treatment shall apply in the event of a Change in Control.  a. Determination of Earned Shares and Earned Cash Value following Change in  Control. If a Change in Control occurs prior to half-way through the performance period, the  performance goals set forth in Exhibit A, if any, shall be deemed to have been satisfied at the target  level. If the Change in Control occurs on or after half-way through the performance period, the  Earned Shares and Earned Cash Value shall be based on the projected level of performance through  the end of the performance period, as determined by the Committee prior to the date of the Change  in Control taking into account performance through the date of such determination; provided, that  if the Committee determines that the projected level of performance is not determinable (or, in the  event, the applicable LTI Award is not subject to performance goal(s)), the Earned Shares and  Earned Cash Value shall be their respective target values.   b. Settlement of LTI Award if Not Assumed. In the event of a Change in Control  pursuant to which the LTI Award is not effectively assumed or continued by the surviving or  acquiring corporation in such Change in Control (as determined by the Committee, with  appropriate adjustments to the number and kind of shares relating to the Restricted Stock Award  and otherwise preserves the value of the LTI Award and other material terms and conditions related  thereto), the Earned Shares and Earned Cash Value determined in accordance with Section C.1. a.  shall vest as of the date of the Change in Control and shall be settled in cash (based on the Change  in Control transaction price) within 70 days following the Change in Control.  c. Settlement of LTI Award if Assumed. In the event of a Change in Control pursuant  to which the LTI Award is effectively assumed or continued by the surviving or acquiring  corporation in such Change in Control (as determined by the Committee, with appropriate  adjustments to the number and kind of shares relating to the Restricted Stock Award and otherwise  preserves the value of the LTI Award and other material terms and conditions related thereto), the  Earned Shares and Earned Cash Value determined in accordance with Section C.1. a. hereof shall  remain outstanding and continue to vest as of each applicable vesting date, subject to Participant’s  continued employment with the Company or an Affiliate as of such vesting date; provided, that if  the Company terminates Participant’s employment without Cause or, if applicable, Participant  resigns for Good Reason (as defined in Participant’s employment agreement or in a severance plan  in which Participant is eligible to participate) within 24 months following such Change in Control,  the Earned Shares and Earned Cash Value determined in accordance with Section C.1. a. hereof  shall vest and shall be settled within 70 days following Participant’s termination of employment.  If, following a Change in Control, Participant experiences a termination of employment other than  

 

  -4-  as set forth in this Section C.2. below, the unvested portion of the LTI Award shall be immediately  forfeited by Participant and cancelled by the Company.  2. Death and Disability; Termination for Cause. Notwithstanding the vesting  provisions set forth in Section A.2. and Section B.2 above, in the event that Participant’s  termination of employment is due to death or Disability then (x) the target Restricted Stock Award  and Cash Award shall become immediately vested if such termination occurs before the first  scheduled vesting date and (y) any unpaid Earned Shares and Earned Cash Value shall become  immediately vested if such termination occurs after the first scheduled vesting date. In addition,  for purposes of Section A.2. and Section B.2, the employment of Participant shall be deemed to  continue during any leave of absence which has been authorized by the Company, unless the  Committee makes a different or contrary determination. In the event Participant’s employment is  terminated for Cause, the outstanding LTI award shall be immediately forfeited by Participant and  cancelled by the Company.  3. Taxes.  If the Company shall be required to withhold, collect or account to any tax  or other authority for any federal, state, local or foreign income tax, employment tax, social or  national insurance, payroll tax, contributions, payment on account obligations or other tax-related  amounts (“Taxes”) in connection with the vesting of the LTI Award, it shall be a condition to such  vesting that Participant pays or makes provision satisfactory to the Company for payment of all  such Taxes. Participant authorizes the Company or its agents, at their discretion, to satisfy the  obligations with regard to all Taxes by withholding from any wages or other cash compensation  paid to Participant by the Company.  The Company shall have the right, without Participant's prior  approval or direction, to satisfy such withholding tax by withholding all or any part of the Earned  Cash Value or the Shares that would otherwise become Vested Shares, with any Shares so withheld  to be valued at the fair market value of the Common Share on the date of such withholding.  Any  Shares withheld to satisfy this obligation will not exceed the maximum statutory withholding  requirement.  Participant, with the consent of the Company, may satisfy such withholding tax (i)  in cash or certified or cashier's check payable to the order of the Company, or (ii) by having the  Company withhold Shares that would otherwise become Vested Shares, with any Shares so  withheld to be valued at the fair market value of the Share on the date of such withholding, or any  combination thereof.  Notwithstanding any other provision of this Agreement and regardless of any action the Company  takes with respect to any or all Taxes, Participant acknowledges that the ultimate liability for all  Taxes is and remains his or her responsibility and may exceed the amount actually withheld by the  Company. Participant further acknowledges that the Company (i) makes no representations or  undertakings regarding the treatment of any Taxes in connection with any aspect of this  Agreement, including the grant or vesting of the LTI Award; and (ii) does not commit to, and is  under no obligation to, structure the terms of the grant or any aspect of this Agreement to reduce  or eliminate Participant’s liability for Taxes or achieve any particular tax result. Further, if  Participant is subject to taxation in more than one jurisdiction between the date of this Agreement  and the date of any relevant taxable or tax withholding event, as applicable, Participant  acknowledges that the Company (or former employer, as applicable) may be required to withhold  or account for Taxes in more than one jurisdiction.  

 

  -5-  4. LTI Award Non-transferable. The LTI Award and the rights and privileges  pertaining thereto, shall not be transferred, assigned, pledged or hypothecated in any way, whether  by operation of the law or otherwise, except by will or the laws of descent and distribution;  provided, that the foregoing restriction on transfer shall cease to apply as and to the extent that the  Shares become Vested Shares. Upon any attempt so to transfer, assign, pledge, hypothecate or  otherwise dispose of the LTI Award contrary to the provisions hereof, this Agreement and all rights  and privileges contained herein shall immediately become null and void and of no further force or  effect. Neither Participant nor any other person legally entitled to the benefits hereof shall be  entitled to any of the rights or privileges of a stockholder of the Company in respect of any Shares  unless and until a certificate or certificates representing such Shares shall have been actually issued  and delivered.  5. Certain Equitable Adjustments. If the outstanding shares of Common Stock of  the Company are increased, decreased, changed into, or exchanged for a different number or kind  of shares or securities of the Company through reorganization, recapitalization, reclassification,  stock dividend, spin off, stock split or reverse stock split, or other similar transaction, an  appropriate and proportionate adjustment (to be conclusively determined by the Committee) shall  be made in the number and kind of shares subject to the Restricted Stock Award and, if appropriate,  the performance goals under this Agreement.  6. Dissolution and Liquidation. Upon the dissolution or liquidation of the Company,  or upon a reorganization, merger or consolidation of the Company with one or more corporations  as a result of which the Company is not the surviving corporation, or upon the sale of substantially  all the assets or more than 80% of the then outstanding stock of the Company to another  corporation, this Agreement shall terminate (except to the extent the LTI Award has vested,  including, without limitation giving effect to the Change in Control acceleration provisions of  Section C.1. hereof) unless express written provision be made in connection with such transaction  for (i) the assumption of this Agreement or the substitution therefore of a new LTI Award, with  such adjustments to be conclusively determined by the Committee; (ii) the continuance of the Plan  by such successor corporation in which event this Agreement shall remain in full effect under the  terms so provided; or (iii) the payment in cash in complete satisfaction of the LTI Award evidenced  by this Agreement. All determinations under this Section C.6. shall be made by the Committee,  whose determination as to what adjustments shall be made, and the extent thereof shall be final,  binding and conclusive.  7. Confidential Information.  a. The Company shall disclose to Participant, or place Participant in a position to have  access to or develop, trade secrets or confidential information of the Company or its Affiliates (as  defined below); and/or shall entrust Participant with business opportunities of the Company or its  Affiliates; and/or shall place Participant in a position to develop business good will on behalf of  the Company or its Affiliates.  b. Participant acknowledges that during his employment with the Company he  occupies a position of trust and confidence and agrees that he shall treat as confidential and shall  not, without prior written authorization from the Company, directly or indirectly, disclose or make  known to any person or use for his own benefit or gain, the methods, process or manner of  

 

  -6-  accomplishing the business undertaken by the Company or its Affiliates, or any non-public  information, plans, formulas, products, trade secrets, marketing or merchandising strategies, or  confidential material or information and instructions, technical or otherwise, issued or published  for the sole use of the Company, or information which is disclosed to Participant or in any acquired  by him during his employment with the Company, or any information concerning the present or  future business, processes, or methods of operation of the Company or its Affiliates, or concerning  improvement, inventions or know how relating to the same or any part thereof, it being the intent  of the Company, with which intent Participant hereby agrees, to restrict him from disseminating  or using for his own benefit any information belonging directly or indirectly to the Company which  is unpublished and not readily available to the general public (collectively, “Confidential  Information”).  c. The confidentiality obligations set forth in (a) and (b) of this Section 7 shall apply  during Participant’s employment by the Company and indefinitely thereafter. Nothing in this  Agreement prevents Participant from  providing, without prior notice to the Company, information  to governmental authorities regarding possible legal violations or otherwise testifying or  participating in any investigation or proceeding by any governmental authorities regarding  possible legal violations, and for purpose of clarity Participant is not prohibited from providing  information voluntarily to the United States Securities and Exchange Commission pursuant to  Section 21F of the Exchange Act.  d. All information, ideas, concepts, improvements, discoveries, and inventions,  whether patentable or not, that are conceived, made, developed or acquired by Participant,  individually or in conjunction with others, during Participant’s employment with the Company  (whether during business hours or otherwise and whether on the premises of the Company or an  Affiliate or otherwise) that relate to the business, products or services of the Company or any  Affiliate shall be disclosed to the Board and are and shall be the sole and exclusive property of the  Company or such Affiliate. Moreover, all documents, drawings, memoranda, notes, records, files,  correspondence, manuals, models, specifications, computer programs, e-mail, voice mail,  electronic data bases, maps and all other writings and materials of any type embodying any such  information, ideas, concepts, improvements, discoveries and inventions are and shall be the sole  and exclusive property of the Company. Upon termination of Participant’s employment for any  reason, Participant promptly shall deliver the same, and all copies thereof, to the Company.  e. If, during Participant’s employment by the Company, Participant creates any work  of authorship fixed in any tangible medium of expression that is the subject matter of copyright  (such as video tapes, written presentations, or acquisitions, computer programs, e-mail, voice mail,  electronic data bases, drawings, maps, architectural renditions, models, manuals, brochures or the  like) relating to the Company’s business, products or services, whether such work is created solely  by Participant or jointly with others (whether during business hours or otherwise and whether on  the Company’s premises or otherwise), the Company shall be deemed the author of such work if  the work is prepared by Participant in the scope of Participant’s employment.  8. Non-Solicitation.    a. For the purposes of this Section, the following words have the following meanings:  

 

  -7-                                         i.  ”Affiliate” means, with respect to any individual or a corporation,  partnership, trust, incorporated or unincorporated association, joint venture, limited liability  company, joint stock company, government (or an agency or political subdivision thereof) or other  entity of any kind (each a “person”), any other person that directly or indirectly controls or is  controlled by or under common control with such person. For the purposes of this definition,  “control” when used with respect to any person, means the possession, direct or indirect, of the  power to direct or cause the direction of the management and policies of such person, whether  through the ownership of voting securities, by contract or otherwise; and the terms of “affiliated”,  “controlling” and “controlled” have meanings correlated to the foregoing.                                       ii.  ”Company Services” means any services (including but not limited to  technical and product support, technical advice, underwriting and customer services) supplied by  the Company or its Affiliates in the specialty property and/or casualty insurance business.                                      iii.  ”Confidential Information” has the meaning ascribed thereto in  Section 7.                                      iv.  ”Customer” means any person or firm or company or other organization  whatsoever to whom or which the Company supplied Company Services during the Restricted  Period and with whom or which, during the Restricted Period: (x) Participant had material personal  dealings pursuant to his employment, or (y) any employee who was under the direct or indirect  supervision of Participant had material personal dealings pursuant to his or her employment.                                        v.  ”Prospective Customer” means any person or firm or company or other  organization whatsoever with whom or which the Company or its Affiliates shall have had  negotiations or material discussions regarding the possible distribution, sale or supply of Company  Services during the Restricted Period and with whom or which during such period: (x) Participant  shall have had material personal dealings pursuant to his employment, or (y) any employee who  was under the direct or indirect supervision of Participant shall have had material personal dealings  pursuant to his or her employment, or (z) Participant was directly responsible in a client  management capacity on behalf of the Company.                                      vi.  ”Restricted Employee” means any person who on the date of  Participant’s termination of employment by the Company was at the level of director, manager,  underwriter or salesperson with whom Participant had material contact or dealings in the course  of his employment during the Restricted Period;                                    vii.  ”Restricted Period” means the period of twelve months ending on the  last day of Participant’s employment with the Company or, in the event that no duties were  assigned to Participant, the twelve months immediately preceding the last day on which Participant  carried out any duties for the Company.                                  viii.  ”Restricted Services” means Company Services or any services of the  same or of a similar kind with which Participant was materially involved during the Restricted  Period.  b. Participant recognizes that, while performing his duties for the Company, he will  have access to and come into contact with trade secrets and Confidential Information belonging  

 

  -8-  to the Company and its Affiliates and will obtain personal knowledge of and influence over its or  their customers and/or employees. Participant therefore agrees that the restrictions set out in this  Section 8 are reasonable and necessary to protect the legitimate business interests of the Company  and its Affiliates both during and after the termination of his employment.  c. Participant hereby undertakes with the Company that he shall not during his  employment with the Company and for the period of twelve months after he ceases to be  employed by the Company for any reason, whether the termination is by the Company, by  Participant, due to Disability, without the prior written consent of the Company, whether by  himself, through his employers or employees or agents or otherwise, howsoever and whether on  his own behalf or on behalf of any other person, firm, company or other organization directly or  indirectly:                                    i.     in competition with the Company, solicit business from or endeavor to  entice away or canvass any Customer or Prospective Customer if such solicitation  or canvassing is in respect of Restricted Services;                                  ii.      solicit or induce or endeavor to solicit or induce any Restricted Employee  to cease working for or providing services to the Company, or hire any Restricted  Employee.  d. This Section 8 shall be for the benefit of the Company and each of its Affiliates and  the Company reserves the right to assign the benefit of such provisions to any of its Affiliates, in  addition such provisions also apply as though there were substituted for references to “the  Company” references to each of its Affiliates in relation to which Participant has in the course of  his duties for the Company or by reason of rendering services to or holding office in such Affiliate:  (x) acquired knowledge of its trade secrets or Confidential Information; or (y) had material  personal dealings with its Customers or Prospective Customers; or (z) supervised directly or  indirectly employees having material personal dealings with its Customers or Prospective  Customers but so that references in this Section 8 to “the Company” shall for this purpose be  deemed to be replaced by references to the relevant Affiliate. The obligations undertaken by  Participant pursuant to this Section 8 shall, with respect to each Affiliate of the Company,  constitute a separate and distinct covenant and the invalidity or unenforceability of any such  covenant shall not affect the validity or enforceability of the covenants in favor of any other  Affiliate or the Company.   e. The periods for which the restrictions in Section 8.c. apply shall be reduced by any  period that Participant was not assigned any duties immediately before the cessation of  Participant’s employment with the Company.  f. While the restrictions in this Section 8 (on which Participant has had the  opportunity to take independent advice, as Participant hereby acknowledges) are considered by  the parties to be reasonable in all the circumstances, it is agreed that if any such restrictions, by  themselves, or taken together, shall be adjudged to go beyond what is reasonable in all the  circumstances for the protection of the legitimate interests of the Company or its Affiliates but  would be adjudged reasonable if part or parts of the wording thereof were deleted, the relevant  

 

  -9-  restriction or restrictions shall apply with such deletion(s) as may be necessary to make it or them  valid and effective.  9. Plan Controls. The LTI Award granted hereby is subject to, and the  Company and Participant agree to be bound by, all of the terms and conditions of the Company's  2019 Omnibus Incentive Plan, as the same shall be amended from time to time in accordance with  the terms thereof, but no such amendment shall adversely affect in any material respect  Participant's rights under this grant without the prior written consent of Participant. The terms of  the Plan are incorporated into and form part of this Agreement.    10. Miscellaneous.   a. No Representations or Warranties. Neither the Company nor the Committee or any  of their representatives or agents has made any representations or warranties to Participant with  respect to the income tax or other consequences of the transactions contemplated by this  Agreement, and Participant is in no manner relying on the Company, the Committee or any of  their representatives or agents for an assessment of such tax or other consequences.  b. No Employment Guarantee. Nothing in this Agreement nor in the Plan nor in the  making of the Award shall confer on Participant any right to or guarantee of continued  employment with the Company or any of its subsidiaries or in any way limit the right of the  Company or any of its subsidiaries to terminate the employment of Participant at any time.  c. Relationship with Employment. Participant’s rights and obligations under the terms  of employment with the Company shall not be affected by this Agreement. The value of any  benefit Participant realizes through the LTI Award shall not be taken into account in determining  any pension or similar entitlements. Participant shall have no right to compensation or damages  on account of any loss in respect of the LTI Award where this loss arises (or is claimed to arise),  in whole or in part, from: (i) termination of office or employment with; or (ii) notice to terminate  office or employment given by or to the Company. This exclusion of liability shall apply however  termination of employment, or the giving of notice, is caused, and however compensation or  damages are claimed.  d. Clawback of Proceeds.  The LTI Award is subject to the clawback provisions in  Section 15.21 of the Plan.    e. Successors.   This Agreement shall be binding upon and inure to the benefit of any  successor or successors of the Company and any person or persons who shall, upon the death of  the Holder, acquire any rights hereunder in accordance with this Agreement or the Plan.  f. Data Protection. Participant consents to the collection, holding, processing and  transfer of personal data by the Company and any of its Subsidiaries for all purposes connected  with this Agreement, including (i) the holding and maintenance of details of the grant; (ii) the  transfer of personal data to the trustee of an employee benefit trust, the Company's registrars or  brokers, any administrator of the Company’s share incentive arrangements or any other relevant  professional advisers or service providers to the Company or any of its Subsidiaries that is or was  Participant’s employer; (iii) the transfer of personal data to a prospective buyer of the Company  or of any of its Subsidiaries or business unit that employs Participant, and the prospective buyer's  

 

  -10-  professional advisers, provided that those persons irrevocably agree to use the personal data only  in connection with the proposed transaction and in accordance with the data protection principles  set out in the Data Protection Act 1998 (or any successor thereto); and (iv) the transfer of personal  data under Section 10.f.ii or Section 10.f.iii to a person who is resident in a country or territory  outside the European Economic Area that may not provide equivalent statutory protections for  personal data.  g. Necessary Acts. Participant and the Company hereby agree to perform any further  acts and to execute and deliver any documents which may be reasonably necessary to carry out  the provisions of this Agreement.   h. Binding Effect; Applicable Law. This Agreement shall bind and inure to the benefit  of the Company and its successors and assigns, and Participant and any heir, legatee, or legal  representative of Participant. This Agreement shall be interpreted under and governed by and  constructed in accordance with the laws of the State of Texas.  i. Administration. The authority to manage and control the operation and  administration of the Award Agreement shall be vested in the Committee, and the Committee  shall have all powers with respect to the Award Agreement as it has with respect to the Plan. Any  interpretation of the Agreement by the Committee and any decision made by it with respect to the  Award Agreement are final and binding.     

 

  -11-  Exhibit A        The performance goals referenced in this Agreement are [located within the employee's Year  End Review in Workday. To view these, select the Performance worklet in Workday, and  Select 'Reviews'. Argo intends for LTI-eligible employees and their manager to mark mutually- agreed goal(s) as 'LTI Performance triggers' in support of the company's incentive compensation  program.as outlined below]; [as provided under separate cover via the LTI memo and summarized  below:]Exhibit 10.2

 

THIS PROMISSORY NOTE (THIS “NOTE”) HAS NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THIS NOTE HAS BEEN ACQUIRED
FOR INVESTMENT ONLY AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF REGISTRATION OF THE RESALE THEREOF UNDER THE
SECURITIES ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY IN FORM, SCOPE AND SUBSTANCE TO THE COMPANY THAT SUCH REGISTRATION
IS NOT REQUIRED.

 

PROMISSORY NOTE

 

	Principal Amount: Up to U.S.$300,000	Dated as of March 2, 2021

 

FOR VALUE RECEIVED
and subject to the terms and conditions set forth herein, Brand Velocity Acquisition Corp, a Cayman Islands exempted company and
blank check company (“Maker”), promises to pay to Brand Velocity Acquisition Sponsor, LLC, a Delaware limited
liability company, or its registered assigns or successors in interest (collectively, “Payee”), or order, the
principal sum of up to Three Hundred Thousand U.S. Dollars (U.S.$300,000) or such lesser amount as shall have been advanced by
Payee to Maker and shall remain unpaid under this Note on the Maturity Date (as defined below) in lawful money of the United States
of America, on the terms and conditions described below. All payments on this Note shall be made by check or wire transfer of immediately
available funds or as otherwise determined by Maker to such account as Payee may from time to time designate by written notice
in accordance with the provisions of this Note.

 

1.       Principal.
The entire unpaid principal balance of this Note shall be due and payable in full on the earlier of: (i) December 31, 2021;
and (ii) the date on which Maker consummates an initial public offering of its securities (the “IPO”)
(such earlier date of (i) and (ii), the “Maturity Date”), unless accelerated upon the occurrence of an Event
of Default (as defined below). The principal balance may be prepaid at any time by Maker, at its election and without penalty.
Under no circumstances shall any individual, including but not limited to any officer, director, employee or shareholder of Maker,
be obligated personally for any obligations or liabilities of Maker hereunder.

 

2.       Interest.
No interest shall accrue on the unpaid principal balance of this Note.

 

3.       Drawdown
Requests. Maker and Payee agree that Maker may request, from time to time, up to Three Hundred Thousand U.S. Dollars (U.S.$300,000)
in drawdowns under this Note to be used for costs and expenses related to Maker’s formation and proposed IPO. The principal
of this Note may be drawn down from time to time prior to the Maturity Date upon written request from Maker to Payee (each, a “Drawdown
Request”). Each Drawdown Request must state the amount to be drawn down, and must not be an amount less than One Thousand
U.S. Dollars (U.S.$1,000) unless agreed upon by Maker and Payee. Payee shall fund each Drawdown Request no later than one business
day after receipt of a Drawdown Request; provided, however, that the maximum amount of drawdowns outstanding under this Note at
any time may not exceed Three Hundred Thousand U.S. Dollars (U.S.$300,000). No fees, payments or other amounts shall be due to
Payee in connection with, or as a result of, any Drawdown Request by Maker.

 

4.       Application
of Payments. All payments shall be applied first to payment in full of any costs incurred in the collection of any sum due
under this Note, including (without limitation) reasonable attorney’s fees, then to the payment in full of any late charges
and finally to the reduction of the unpaid principal balance of this Note.

 

5.       Events
of Default. The following shall constitute an event of default (“Event of Default”):

 

(a)       Failure
to Make Required Payments. Failure by Maker to pay the principal amount due pursuant to this Note on the Maturity Date.

 

(b)       Voluntary
Bankruptcy, Etc. The commencement by Maker of a voluntary case under any applicable bankruptcy, insolvency, reorganization,
rehabilitation or other similar law, or the consent by it to the appointment of or taking possession by a receiver, liquidator,
assignee, trustee, custodian, sequestrator (or other similar official) of Maker or for any substantial part of its property, or
the making by it of any assignment for the benefit of creditors, or the failure of Maker generally to pay its debts as such debts
become due, or the taking of corporate action by Maker in furtherance of any of the foregoing.

    	 

    	

    

(c)      Involuntary
Bankruptcy, Etc. The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of Maker
in an involuntary case under any applicable bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator,
assignee, custodian, trustee, sequestrator (or similar official) of Maker or for any substantial part of its property, or ordering
the winding-up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period
of 60 consecutive days.

 

6.       Remedies.

 

(a)      Upon
the occurrence of an Event of Default specified in Section 5(a) hereof, Payee may, by written notice to Maker, declare this Note
to be due immediately and payable, whereupon the unpaid principal amount of this Note, and all other amounts payable thereunder,
shall become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby
expressly waived, anything contained herein or in the documents evidencing the same to the contrary notwithstanding.

 

(b)      Upon
the occurrence of an Event of Default specified in Sections 5(b) or 5(c) hereof, the unpaid principal balance of this Note, and
all other sums payable with regard to this Note, shall automatically and immediately become due and payable, in all cases without
any action on the part of Payee.

 

7.       Waivers.
Maker and all endorsers and guarantors of, and sureties for, this Note waive presentment for payment, demand, notice of dishonor,
protest, and notice of protest with regard to the Note, all errors, defects and imperfections in any proceedings instituted by
Payee under the terms of this Note, and all benefits that might accrue to Maker by virtue of any present or future laws exempting
any property, real or personal, or any part of the proceeds arising from any sale of any such property, from attachment, levy or
sale under execution, or providing for any stay of execution, exemption from civil process, or extension of time for payment; and
Maker agrees that any real estate that may be levied upon pursuant to a judgment obtained by virtue hereof, on any writ of execution
issued hereon, may be sold upon any such writ in whole or in part in any order desired by Payee.

 

8.       Unconditional
Liability. Maker hereby waives all notices in connection with the delivery, acceptance, performance, default, or enforcement
of the payment of this Note, and agrees that its liability shall be unconditional, without regard to the liability of any other
party, and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or
consented to by Payee, and consents to any and all extensions of time, renewals, waivers, or modifications that may be granted
by Payee with respect to the payment or other provisions of this Note, and agrees that additional makers, endorsers, guarantors,
or sureties may become parties hereto without notice to Maker or affecting Maker’s liability hereunder.

 

9.       Notices.
All notices, statements or other documents which are required or contemplated by this Note shall be: (i) in writing and delivered
personally or sent by first class registered or certified mail, overnight courier service or facsimile or electronic transmission
to the address designated in writing, (ii) by facsimile to the number most recently provided to such party or such other address
or fax number as may be designated in writing by such party or (iii) by electronic mail (including .pdf), to the electronic mail
address most recently provided to such party or such other electronic mail address as may be designated in writing by such party.
Any notice or other communication so transmitted shall be deemed to have been given on the day of delivery, if delivered personally,
on the business day following receipt of written confirmation, if sent by facsimile or electronic transmission, one business day
after delivery to an overnight courier service or five (5) days after mailing if sent by mail.

 

10.       Construction.
THIS NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

11.       Severability.
Any provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction.

 

12.       Trust
Waiver. Notwithstanding anything herein to the contrary, Payee hereby waives any and all right, title, interest or claim of
any kind (“Claim”) in or to any distribution of or from the trust account to be established in which proceeds
of the IPO (including the deferred underwriting discounts and commissions) and proceeds of the sale of the warrants issued in a
private placement to occur in connection with the consummation of the IPO are to be

 

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deposited, as described
in greater detail in the registration statement and prospectus to be filed with the Securities and Exchange Commission in connection
with the IPO, and hereby agrees not to seek recourse, reimbursement, payment or satisfaction for any Claim against the trust account
for any reason whatsoever.

 

13.       Amendment;
Waiver. Any amendment hereto or waiver of any provision hereof may be made with, and only with, the written consent of Maker
and Payee.

 

14.       Assignment.
No assignment or transfer of this Note or any rights or obligations hereunder may be made by any party hereto (by operation of
law or otherwise) without the prior written consent of the other party hereto and any attempted assignment without the required
consent shall be void.

 

(Signature page follows)

 

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IN WITNESS WHEREOF,
Maker, intending to be legally bound hereby, has caused this Note to be duly executed by the undersigned as of the day and year
first above written.

 

	 	Brand Velocity Acquisition Corp	 
	 	a Cayman Islands exempted company	 
	 	 	 	 
	 	By:	/s/ Stephen Lebowitz	 
	 	 	Name: Stephen Lebowitz	 
	 	 	Title: Authorized Signatory	 

 

Agreed and Acknowledged:

 

Brand
Velocity Acquisition Sponsor, LLC

a Delaware limited liability company

 

	By:	/s/ Stephen Lebowitz	 
	 	Name: Stephen Lebowitz	 
	 	Title: Authorized Signatory	 

 

Signature Page to Promissory Note

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