Document:

EX-10.2

 Exhibit 10.2 

FORM OF SUPPORT AGREEMENT 

This SUPPORT AGREEMENT (this “Agreement”), dated as of September 16, 2020, is entered into by and among Pivotal
Investment Corporation II, a Delaware corporation (“Parent”), XL Hybrids, Inc., a Delaware corporation (the “Company”), and each undersigned stockholder (any such stockholder, the “Stockholder”
and, together with Parent, each a “Party” and collectively, the “Parties”) of the Company. Capitalized terms used herein and not otherwise defined shall have the meaning ascribed to them in the Agreement and
Plan of Reorganization, dated as of September 16, 2020 (as amended, supplemented or otherwise modified from time to time, the “Merger Agreement”), by and Parent, PIC II Merger Sub Corp., a Delaware corporation (“Merger
Sub”), and the Company. 
 RECITALS 

WHEREAS, as of the date of this Agreement, the Stockholder is the record holder, beneficial (as such term is defined in Rule 13d-3 under the Exchange Act, which meaning shall apply for all purposes of this Agreement whenever the term “beneficial” or “beneficially” is used) owner, and has full voting power over the
number of shares of Company Stock (the “Shares”) set forth on the Stockholder’s signature page hereto; 
 WHEREAS, the
Company, Parent and Merger Sub have entered into the Merger Agreement in the form attached hereto as Annex A, which provides for the merger of Merger Sub with and into the Company (the “Merger”), with the Company
surviving the Merger, pursuant to the provisions of the DGCL; 
 WHEREAS, the Stockholder acknowledges that, as a condition and material
inducement to Parent and Merger Sub’s willingness to enter into the Merger Agreement, Parent has required that concurrently with the execution and delivery of the Merger Agreement, certain Company Stockholders specified in the Merger Agreement
enter into this Agreement, agreeing to, among other things, (1) vote all of the Stockholder’s Subject Shares (as defined below) in favor of the adoption of the Merger Agreement (which may be done pursuant to the execution and delivery of a
written consent in the form attached hereto as Annex B-1) (each, a “Written Merger Consent”), (2) vote all of the Stockholder’s Subject Shares in favor of the termination of the
Third Amended and Restated Stockholders’ Voting Agreement dated as of September 29, 2017, by and among the Company and the Stockholders (as defined therein), as amended by that certain Amendment to Third Amended and Restated
Stockholders’ Voting Agreement, dated as of February 6, 2020 (the “Voting Agreement”), the Third Amended and Restated Investor Rights Agreement dated as of September 29, 2017, by and among the Company and the
Investors (as defined therein) (the “Rights Agreement”) and the Third Amended and Restated Right of First Refusal and Co-Sale Agreement, dated as of September 29, 2017 by and among the
Company, the Investors (as defined therein) and the Common Holders (as defined therein) (the “Co-Sale Agreement” and together with the Voting Agreement and Rights Agreement, the
“Financing Documents”) (which may be done pursuant to the execution and delivery of a written consent in the form attached hereto as Annex B-2) (each, a “Written Termination
Consent” and, together with the Written Merger Consent, the “Written Consents”) and (3) to the extent the Stockholder is a holder of Series D Preferred Stock, deliver a signature to the Request for Conversion, and, in
order to induce Parent and Merger Sub to enter into the Merger Agreement and consummate the Merger and the other transactions contemplated by the Merger Agreement, the Stockholder is willing to enter into this Agreement; 

WHEREAS, Parent desires that the Stockholder agree, and the Stockholder is willing to agree, subject to the limitations herein, (1) not
to Transfer (as defined below) any of its Shares, (2) to execute and deliver the Written Consents and otherwise vote its Subject Shares (or cause its Subject Shares to be voted) in a manner so as to facilitate consummation of the Merger and the
other transactions contemplated by the Merger Agreement, and (3) to undertake certain additional obligations pursuant to this Agreement; 

WHEREAS, to the extent the Stockholder is a holder of Series D Preferred Stock, Parent desires that the Stockholder agree, and the Stockholder
is willing to agree, to deliver a signature to the Request for Conversion; 
 WHEREAS, to the extent the Stockholder is a holder of any
Company Convertible Note, Parent desires that the Stockholder agree, and the Stockholder is willing to agree, that the unpaid principal and any unpaid and accrued interest on such Company Convertible Note shall be treated as set forth in Schedule
1.10(c) to the Merger Agreement; 

 WHEREAS, concurrently with the execution and delivery of this Agreement, the Stockholder is
executing and delivering the Lock-Up Agreement in the form attached hereto as Annex D; and 

WHEREAS, Parent and the Stockholder desire to make certain representations, warranties, covenants and agreements in connection with this
Agreement; 
 NOW, THEREFORE, in consideration of the foregoing premises and the representations, warranties, covenants and agreements set
forth in this Agreement, the Parties agree as follows: 
 ARTICLE 1 

VOTING AND TRANSFER OF SHARES 

Section 1.01 Voting. 

(a) The Stockholder irrevocably and unconditionally agrees, during the period beginning on the date of this Agreement and ending on the
Expiration Date (the “Applicable Period”), at each meeting of the Company Stockholders (a “Meeting”) and at each adjournment or postponement thereof, and in connection with each action or approval by consent in
writing of the Company Stockholders (a “Consent Solicitation”), which written consent shall be delivered promptly, and in any event within twenty four (24) hours, after the Company requests such delivery, to cause to be present
in person or represented by proxy and to vote or cause to be voted (or express consent or dissent in writing, as applicable) that number of Shares set forth on the Stockholder’s signature page hereto and any additional Shares that are hereafter
held of record or beneficially owned by the Stockholder (collectively, the “Subject Shares”) that are entitled to vote (or express consent or dissent in writing, as applicable), in each case as follows: 

(i) in favor of any proposal for Company Stockholders to adopt the Merger Agreement (including by executing and delivering, and not revoking
or attempting or purporting to revoke, the Written Consents) and approving any other matters necessary for consummation of the transactions contemplated by the Merger Agreement, including the Merger; 

(ii) in favor of any proposal to adjourn a Meeting at which there is a proposal for Company Stockholders to adopt the Merger Agreement to a
later date if there are not sufficient votes to adopt the Merger Agreement or if there are not sufficient Shares present in person or represented by proxy at such Meeting to constitute a quorum; 

(iii) against any proposal, offer or submission with respect to a competing transaction described in Section 4.3 (No Solicitation)
of the Merger Agreement (a “Competing Transaction”) or the adoption of any agreement to enter into a Competing Transaction; 

(iv) against any proposal for any amendment or modification of the Company’s Charter Documents that would change the voting rights of any
Shares or the number of votes required to approval any proposal, including the vote required to adopt the Merger Agreement; and 
 (v)
against any action, transaction, agreement or proposal that would, or would reasonably be expected to (A) result in a breach of any representation, warranty, covenant or any other obligation or agreement of the Company under the Merger
Agreement or any agreement ancillary thereto or the Stockholder under this Agreement or any of the conditions to the consummation of the Merger under the Merger Agreement not being fulfilled on a timely basis, (B) prevent, delay or impair
consummation of the Merger or dilute, in any material respect, the benefit of the Merger to Parent, or (C) facilitate any proposal, offer or submission with respect to a Competing Transaction or any agreement to enter into a Competing
Transaction. 
 (b) To the extent the Stockholder is a holder of Series D Preferred Stock, the Stockholder irrevocably and unconditionally
agrees to deliver to the Company its signature to the Request for Conversion set forth on Annex E hereto and to release such signature prior to the Closing when and as requested by the Company. 

  
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 (c) To the extent the Stockholder is a holder of any Company Convertible Note, the
Stockholder irrevocably and unconditionally agrees (i) that the unpaid principal and any unpaid and accrued interest on such Company Convertible Note shall be treated as set forth in Schedule 1.10(c) to the Merger and (ii) to deliver to
the Company its signature to the documentation necessary to effect such treatment and to release such signature prior to the Closing when and as requested by the Company. 

(d) Any vote required to be cast or consent or dissent in writing required to be expressed pursuant to this
Section 1.01 shall be cast or expressed in accordance with the applicable procedures relating thereto so as to ensure that it is duly counted for purposes of determining that a quorum is present (if applicable) and for
purposes of recording the results of that vote or Consent Solicitation. For the avoidance of doubt, nothing contained herein requires the Stockholder (or entitles any proxy of the Stockholder) to convert, exercise or exchange any options, warrants
or convertible securities in order to obtain any underlying Shares. 
 (e) The Stockholder agrees not to enter into any commitment,
agreement, understanding or similar arrangement with any Person to vote or give voting instructions or express consent or dissent in writing in any manner inconsistent with the terms of this Section 1.01. 

Section 1.02 Proxy and Power of Attorney. The Stockholder, with respect to the Subject Shares, irrevocably grants a proxy
appointing the Company and any designee of the Company, and each of them individually and with full power of substitution, as the Stockholder’s true and lawful
attorney-in-fact and proxy, for and in the Stockholder’s name, place and stead, to be counted as represented by proxy and vote, at any time during the Applicable
Period, each Subject Share as the Stockholder’s proxy, at every Meeting (including at any adjournment or postponement thereof) and to execute and deliver on behalf of the Stockholder any written expression of consent or dissent relating to the
Subject Shares and the Company Convertible Notes or the rights of a holder thereof in connection with the matters set forth in Section 1.01 hereof in order to cause the Stockholder to perform the covenants set forth in this Agreement. The proxy
described in this Section 1.02, if it becomes effective, is limited solely to the voting of Subject Shares or taking actions with respect to the Company Convertible Notes (or, in each case, expressing consent or dissent in
writing with respect to such Subject Shares or Company Convertible Notes) solely in order to cause the Stockholder to perform the covenants set forth in this Agreement. The Stockholder hereby affirms that the irrevocable proxy set forth in this
Section 1.02, if it becomes effective, is given in connection with the execution of the Merger Agreement and such irrevocable proxy is given to secure the performance of the obligations of the Stockholder under this
Agreement. The proxy described in this Section 1.02, if it becomes effective, is coupled with an interest, including for the purposes of Section 212 of the DGCL, revokes all prior proxies granted by the Stockholder
with respect to the Subject Shares and the Company Convertible Notes and is irrevocable, provided that this proxy shall automatically terminate at the Expiration Date. The power of attorney granted by the Stockholder, if it becomes effective,
is a durable power of attorney and shall survive the bankruptcy, dissolution, death or incapacity of the Stockholder and shall be binding upon the heirs, estate, executors, personal representatives, successors, and assigns of the Stockholder and any
other holder of record of the Stockholder’s Subject Shares as to which this proxy has been granted (including any transferee of any such Subject Shares). For Subject Shares or Company Convertible Notes as to which the Stockholder is the
beneficial owner but not the holder of record, the Stockholder shall cause any holder of record of such Subject Shares or Company Convertible Notes to grant to the Company a proxy to the same effect as that described in this
Section 1.02. 
 Section 1.03 No Transfers. During the Applicable Period, the Stockholder shall not,
directly or indirectly, in one or more transactions, whether by merger, consolidation, division, operation of law, or otherwise (including by succession or otherwise by operation of applicable Legal Requirements): (a) sell, convey, assign, transfer,
exchange, pledge, hypothecate or otherwise encumber or dispose of any Subject Shares (or any right, title or interest therein) or any rights to acquire any securities or equity interests of the Company; (b) deposit any Subject Shares or any
rights to acquire any securities or equity interests of the Company into a voting trust or enter into a voting agreement or any other arrangement with respect to any Subject Shares or any rights to acquire any securities or equity interests of the
Company or, except as otherwise provided in Section 1.02, grant or purport to grant any proxy or power of attorney with respect thereto; (c) enter into any contract, option, call or other arrangement or undertaking,
whether or not in writing, with respect to the direct or indirect sale, conveyance, assignment, transfer, exchange, pledge, hypothecation or other encumbrance or disposition, or limitation on the voting rights, of any Subject Shares (or any right,
title or interest therein) or any rights to acquire any securities or equity interests of the Company; (d) otherwise grant, permit or suffer the creation of any Liens on any Subject Shares (other than

  
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applicable restrictions on transfer under U.S. state or federal securities or “blue sky” applicable Legal Requirements) or (e) commit or agree to take any of the foregoing actions,
provide any consent or approval of any matter that would result in any of the foregoing actions, or discuss, negotiate or make an offer or enter into a commitment, agreement, understanding or similar arrangement to take any of the foregoing actions
(any action described in the immediately preceding sentence, a “Transfer”); provided, however, that the foregoing shall not prohibit Transfers (i) between the Stockholder and any Affiliate of the Stockholder,
(ii) if the Stockholder is an individual, to a trust for the benefit of the Stockholder or to any member of a Stockholder’s immediate family or a trust for the benefit of such immediate family member or (iii) if the Stockholder is an
individual, by will, other testamentary document or under the laws of intestacy upon the death of Stockholder, in each case, so long as, prior to and as a condition to the effectiveness of any such Transfer, such Affiliate or transferee executes and
delivers to Parent a joinder to this Agreement in the form attached hereto as Annex C. Any Transfer or action in violation of this Section 1.03 shall be void ab initio. If any involuntary Transfer of any of
Subject Shares occurs, the transferee (and all transferees and subsequent transferees of such transferee) shall take and hold such Subject Shares subject to all of the restrictions, liabilities and rights under this Agreement, which shall continue
in full force and effect during the Applicable Period. 
 Section 1.04 Stop Transfer. The Stockholder shall not request that the
Company register any transfer of any certificate or book-entry Share or other uncertificated interest representing any Subject Shares made in violation of the restrictions set forth in Section 1.02 during the Applicable
Period and hereby authorizes and instructs the Company to instruct its transfer agent to enter a stop transfer order with respect to all of the Subject Shares, subject to the provisions hereof; provided, that any such stop transfer order will
immediately be withdrawn and terminated by the Company following the termination of this Agreement. 
 Section 1.05 Waiver of
Appraisal Rights. The Stockholder hereby agrees not to assert, exercise or perfect, directly or indirectly, and irrevocably and unconditionally waives, any appraisal rights (including under Section 262 of the DGCL) with respect to the
Merger and any rights to dissent with respect to the Merger (collectively, “Appraisal Rights”). 
 Section 1.06
Release of Claims. 
 (a) Subject to and upon the consummation of the Merger and the receipt of the Per Share Merger Consideration,
the Stockholder, and, if the Stockholder is a legal entity, together with the Stockholder’s officers, directors, stockholders, subsidiaries and Affiliates, and each of their respective heirs, representatives, successors and assigns (such
persons, the “Releasors”), hereby fully and unconditionally (subject to the receipt of the amounts specified in this paragraph) releases, acquits and forever discharges, to the fullest extent permitted by law, each of the Parent,
Merger Sub, the Company, each of their subsidiaries and affiliates and their respective past, present or future officers, directors, employees, counsel and agents, and all Company Stockholders prior to Closing (such persons, the
“Releasees”), from and against any and all liabilities, actions, causes of action, claims, demands, damages, judgments, debts, dues and suits of every kind, nature and description whatsoever, whether known or unknown, asserted or
unasserted, suspected or unsuspected, absolute or contingent, unmatured or inchoate, both at law and in equity, which the Stockholder or any of the Releasors ever had, now has or may hereafter have against any of the Releasees, on or by reason of
any matter, cause or thing whatsoever that arose prior to the Closing; provided, however, that nothing herein shall be deemed to release (a) any right of the Stockholder to receive the Per Share Merger Consideration pursuant to the Merger
Agreement in accordance with the terms thereof, (b) any liabilities of a Releasee in connection with any future transactions between the Parties that are not related to the Merger Agreement or the transactions contemplated thereby, (c) any
employment compensation or benefits matter affecting any Releasor in his or her capacity as a director, manager, officer or employee of the Company, its Affiliates or its Subsidiaries and (d) any right of Releasor as an indemnitee, and pursuant
to the Merger Agreement. 
 (b) The Stockholder represents that as to each and every claim released hereunder, the Stockholder has received
the advice of legal counsel with regard to the releases contained herein, and having been so advised, specifically waives the benefit of the provisions of Section 1542 of the Civil Code of California which provides as follows: 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE
TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY. 

  
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 The Stockholder also specifically waives any right or benefits that it has or may have under any similar
provision of the statutory or non-statutory law of any other jurisdiction. The Stockholder acknowledges that the Releasors may hereafter discover facts different from or in addition to the facts the Releasors
now know or believe to be true with respect to the subject matter of this Agreement; however, the Releasors intend that the general releases herein given shall be and remain in full force and effect, notwithstanding the discovery or existence of any
such different or additional facts. 
 Section 1.07 Public Announcements; Filings; Disclosures. 

(a) The Stockholder (and the Stockholder’s controlled Affiliates) shall not issue any press release or make any other public announcement
or public statement (a “Public Communication”) with respect to this Agreement, the Merger Agreement, or the transactions contemplated hereby or thereby, without the prior written consent of Parent (which consent may be withheld in
Parent’s sole discretion), except as required by applicable Legal Requirements, in which case the Stockholder shall use its reasonable best efforts to provide Parent and Parent’s legal counsel with a reasonable opportunity to review and
comment on such Public Communication in advance of its issuance and shall give reasonable and good faith consideration to any such comments. 

(b) The Stockholder hereby consents to and authorizes the Company and Parent to publish and disclose in any Public Communication or in any
disclosure required by the SEC and in the Proxy Statement/Prospectus prepared by Parent and filed with the SEC relating to the Special Meeting the Stockholder’s identity and ownership of Subject Shares and the Stockholder’s obligations
under this Agreement (the “Stockholder Information”), consents to the filing of this Agreement to the extent required by applicable Legal Requirements to be filed with the SEC or any regulatory authority relating to the Merger,
and agrees to cooperate with Parent in connection with such filings, including providing Stockholder Information reasonably requested by Parent. 

Section 1.08 Non-Solicitation. The Stockholder acknowledges that the Stockholder has read
Section 4.3 of the Merger Agreement. In addition, the Stockholder agrees that the restrictions imposed on the Company pursuant to Section 4.03 of the Merger Agreement shall be binding upon the Stockholder mutatis mutandis and
further agrees not to take (and agrees to cause its Affiliates and its and their Representatives not to take), directly or indirectly, any action that would violate Section 4.3 of the Merger Agreement if such action were taken by the Company.

 Section 1.09 No Agreement as Director or Officer. The Stockholder is entering into this Agreement solely in the
Stockholder’s capacity as record or beneficial owner of Subject Shares and nothing herein is intended to or shall limit or affect any actions taken by the Stockholder or any employee, officer, director (or person performing similar functions),
partner or other Affiliate (including, for this purpose, any appointee or representative of the Stockholder to the board of directors of the Company) of the Stockholder, solely in his or her capacity as a director or officer of the Company (or a
Subsidiary of the Company) or other fiduciary capacity for the Company Stockholders. 
 Section 1.10 Acquisition of Additional
Shares. The Stockholder shall promptly notify (and in any event within two Business Days) Parent of the number of any additional Shares with respect to which the Stockholder becomes the holder of record or acquires beneficial ownership, if any,
after the execution of this Agreement and before the Expiration Date, which Shares shall, for the avoidance of doubt, automatically become Subject Shares in accordance with Section 1.01. 

Section 1.11 No Litigation. The Stockholder hereby agrees not to commence, maintain or participate in, or facilitate, assist or
encourage, and agrees to take all actions necessary to opt out of any class in any class action with respect to, any claim, derivative or otherwise, suit, proceeding or cause of action, in law or in equity, in any court or before any Governmental
Entity (a) challenging the validity of, or seeking to enjoin or delay the operation of, any provision of this Agreement or the Merger Agreement or the transactions contemplated hereby or thereby (including any claim seeking to enjoin or delay
the consummation of the Merger), (b) alleging a breach of any fiduciary duty of any Person or alleging that any Person aided or abetted any breach of any fiduciary duty of any Person in connection with this Agreement or the Merger Agreement or the
transactions contemplated thereby or 

  
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thereby, (c) seeking Appraisal Rights in connection with the Merger or (d) otherwise relating to the Merger Agreement, this Agreement or the Merger or other transactions contemplated
hereby or thereby. Notwithstanding the foregoing, nothing herein shall be deemed to prohibit the Stockholder from enforcing the Stockholder’s rights under this Agreement or the Stockholder’s right to receive the Per Share Merger
Consideration. 
 Section 1.12 Further Assurances. The Stockholder shall execute and deliver, or cause to be executed and
delivered, such further certificates, instruments and other documents and to take such further actions as Parent may reasonably request for the purpose of effectively carrying out the transactions contemplated by this Agreement and the Merger
Agreement. 
 ARTICLE 2 

REPRESENTATIONS AND WARRANTIES OF THE STOCKHOLDER 

The Stockholder hereby represents and warrants to Parent as follows: 

Section 2.01 Organization; Authorization. In the event the Stockholder is an individual, the Stockholder has full power, right and
legal capacity to execute and deliver this Agreement, to grant the proxy described in Section 1.02, and to perform his or her obligations hereunder. In the event the Stockholder is a legal entity, (a) the Stockholder
is a legal entity duly organized, validly existing and in good standing under the applicable Legal Requirements of the Stockholder’s jurisdiction of its organization, (b) the Stockholder has all requisite corporate or similar power and
authority and has taken all corporate or similar action necessary in order to execute and deliver this Agreement, to grant the proxy and power of attorney described in Section 1.02, to perform the Stockholder’s
obligations under this Agreement and consummate the transactions contemplated by this Agreement, and (c) no approval by any holder of the Stockholder’s equity interests is necessary to approve this Agreement. This Agreement has been duly
authorized, executed and delivered by the Stockholder and, in the event the Stockholder is an individual and is married and any of the Stockholder’s Subject Shares constitute community property or spousal approval is otherwise required in order
for this Agreement to be a valid and binding obligation of the Stockholder, this Agreement has been duly authorized, executed and delivered by or on behalf of the Stockholder’s spouse, and this Agreement constitutes a valid and binding
agreement of the Stockholder enforceable against the Stockholder in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights
generally and by general principles of equity. 
 Section 2.02 Governmental Filings; No Violations; Certain Contracts. The
execution, delivery and performance by the Stockholder of this Agreement and the consummation by the Stockholder of the transactions contemplated hereby do not and will not (i) conflict with or violate any United States or non-United States statute, law, ordinance, regulation, rule, code, executive order, injunction, judgment, decree or other order applicable to the Stockholder, (ii) require any consent, approval or authorization
of, declaration, filing or registration with, or notice to, any person or entity, (iii) result in the creation of any encumbrance on any Shares (other than under this Agreement) or (iv) conflict with or result in a breach of or constitute
a default under any provision of the Stockholder’s governing documents or any agreement (including any voting agreement) to which the Stockholder is a party. 

Section 2.03 Litigation. As of the date of this Agreement, except as would not, individually or in the aggregate, reasonably be
expected to prevent, delay or impair the ability of the Stockholder perform its obligations under this Agreement or to consummate the transactions contemplated by this Agreement (a) there is no action, suit, demand, complaint, litigation,
review, audit, hearing, arbitration, proceeding, investigation or similar dispute by or before any Governmental Entity or otherwise pending or, to the knowledge of the Stockholder, threatened against the Stockholder or any of its Affiliates and
(b) neither the Stockholder nor any of its Affiliates is a party to or subject to the provisions of any judgment, order, writ, injunction, decree or award of any Governmental Entity. 

Section 2.04 Ownership of Company Stock; Voting Power. The Stockholder’s signature page hereto correctly sets forth the
number of the Stockholder’s Subject Shares as of the date of this Agreement and, other than such Subject Shares, as of the date of this Agreement, there are no Company securities (or any securities convertible, exercisable or exchangeable for,
or rights to purchase or acquire, any Company securities) held of record or beneficially owned by the Stockholder or in respect of which the Stockholder has full voting power. The Stockholder has not made any Transfer of Subject Shares and the
Stockholder is the record holder and beneficial 

  
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owner of all of its Subject Shares and has, and shall have throughout the Applicable Period, good and valid title to the Subject Shares, full voting power and power of disposition with respect to
all such Subject Shares free and clear of any liens, security interests, claims, pledges, proxies, options, right of first refusals, voting restrictions, limitations on dispositions, voting trusts or agreements, options or any other encumbrances or
restrictions on title, transfer or exercise of any rights of a stockholder in respect of such Subject Shares (collectively, “Encumbrances”), except for any such Encumbrance that (a) may be imposed pursuant to (i) this
Agreement, the Merger Agreement and the transactions contemplated hereby and thereby, (ii) any applicable restrictions on transfer under U.S. state or federal securities or “blue sky” applicable Legal Requirements or (iii) the
Company’s Charter Documents or the terms of any customary custody or similar agreement applicable to Subject Shares held in brokerage accounts or (b) would not, individually or in the aggregate, reasonably be expected to prevent, delay or
impair the ability of the Stockholder perform its obligations under this Agreement or to consummate the transactions contemplated by this Agreement. No Person has any contractual or other right or obligation to purchase or otherwise acquire any of
the Stockholder’s Subject Shares other than pursuant to the Merger Agreement or as set forth in the Company’s Charter Documents. 

Section 2.05 Reliance. The Stockholder understands and acknowledges that Parent and Merger Sub are relying upon the
Stockholder’s execution, delivery and performance of this Agreement and upon the representations and warranties and covenants of the Stockholder contained in this Agreement. 

Section 2.06 Finder’s Fees. No agent, broker, investment banker, finder or other intermediary is or shall be entitled to any
fee or commission or reimbursement of expenses from Parent, Merger Sub or the Company or any of their respective Affiliates in respect of this Agreement based upon any arrangement or agreement made by or on behalf of the Stockholder. 

Section 2.07 Proxy Statement. None of the information supplied or to be supplied by the Stockholder for inclusion or incorporation
by reference in the Proxy Statement/Prospectus and any amendment or supplement thereto will, at the date of mailing to the Parent Stockholders and at the time of the Special Meeting contain any untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 

Section 2.08 Other Agreements. The Stockholder has not taken or permitted any action that would or would reasonably be expected to
(a) constitute or result in a breach hereof, (b) make any representation or warranty of the Stockholder set forth herein untrue or inaccurate or (c) otherwise restrict, limit or interfere with the performance of this Agreement, the
Merger Agreement or the transactions contemplated by this Agreement or the Merger Agreement. 
 Section 2.09 Stockholder Has
Adequate Information. The Stockholder acknowledges that the Stockholder is a sophisticated investor with respect to the Stockholder’s Subject Shares and has adequate information concerning the business and financial condition of the Company
and Parent to make an informed decision regarding the transactions contemplated by this Agreement and has, independently and without reliance upon Parent, the Company or any Affiliate of Parent and the Company, and based on such information as the
Stockholder has deemed appropriate, made the Stockholder’s own analysis and decision to enter into this Agreement. The Stockholder acknowledges that the Stockholder has received and reviewed this Agreement and the Merger Agreement and has had
the opportunity to seek independent legal advice prior to executing this Agreement. 
 Section 2.10 No Other Representations or
Warranties. Except for the representations and warranties made by the Stockholder in this Article 2, neither the Stockholder nor any other Person makes any express or implied representation or warranty to Parent in
connection with this Agreement or the transactions contemplated by this Agreement, and the Stockholder expressly disclaims any such other representations or warranties. 

  
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 ARTICLE 3 

REPRESENTATIONS AND WARRANTIES OF PARENT 

Parent represents and warrants to the Stockholder as follows: 

Section 3.01 Organization. Parent is a legal entity duly organized, validly existing and in good standing under the laws of the
State of Delaware. 
 Section 3.02 Corporate Authority. Parent has all requisite corporate power and authority and has taken all
corporate or similar action necessary in order to execute and deliver this Agreement, to perform its obligations under this Agreement and to consummate the transactions contemplated by this Agreement. This Agreement has been duly executed and
delivered by Parent and constitutes a valid and binding agreement of Parent enforceable against Parent in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the
enforcement of creditors’ rights generally and by general principles of equity. 
 Section 3.03 No Other Representations or
Warranties. Except for the representations and warranties made by Parent in this Article 3, neither Parent nor any other Person makes any express or implied representation or warranty to the Stockholder in connection
with this Agreement or the transactions contemplated by this Agreement, and the Stockholder expressly disclaims reliance upon, and the Stockholder acknowledges and agrees that Parent expressly disclaims, any such other representations or warranties.

 ARTICLE 4 

GENERAL PROVISIONS 

Section 4.01 Termination. This Agreement, including the voting agreements contemplated by this Agreement and any proxy granted
hereunder if such proxy becomes effective, shall automatically be terminated at the earliest to occur of: (a) the Effective Time; (b) the termination of the Merger Agreement pursuant to Article VII thereof; or (c) the effective date
of a written agreement duly executed and delivered by Parent and the Stockholder terminating this Agreement; (the date and time at which the earlier of clause (a), (b), and (c) occurs being, the “Expiration Date”);
provided, however, that in the case of any termination pursuant to clause (a), Section 1.05 (Waiver of Appraisal Rights), Section 1.06 (Release of Claims),
Section 1.07 (Public Announcements; Filings; Disclosure), Section 1.11 (No Litigation) and Section 1.12 (Further Assurances) and this Article 4
shall survive such termination. Nothing set forth in this Section 4.01 or elsewhere in this Agreement shall relieve any Party of any liability or damages to any other Party for any breach of this Agreement by such Party
prior to such termination or fraud in connection with, arising out of or otherwise related to the representations and warranties set forth in this Agreement or any instrument or other document delivered pursuant to this Agreement. 

Section 4.02 Notices. All notices and other communications between the Parties shall be in writing and shall be deemed to have
been duly given (i) when delivered in person, (ii) when delivered after posting in the United States mail having been sent registered or certified mail return receipt requested, postage prepaid, (iii) when delivered by FedEx or other
nationally recognized overnight delivery service or (iv) when e-mailed during normal business hours (and otherwise as of the immediately following Business Day), addressed as follows: 

If to Parent: 
 Pivotal
Investment Corporation II 
 c/o Graubard Miller

The Chrysler Building
 405
Lexington Avenue, 11th Floor
 New York, New York 10174

Attention: Jonathan J. Ledecky
 E-mail: jledecky@hockeyny.com

  
 8 

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

Graubard Miller 
 The Chrysler
Building
 405 Lexington Avenue, 11th Floor

New York, New York 10174

Attention: David Alan Miller / Jeffrey M. Gallant

E-mail: dmiller@graubard.com / jgallant@graubard.com 

and:
 Morrison &
Foerster LLP 
 250 West 55th Street 

New York, New York 10019 

Attention: Mitchell S. Presser / Omar E. Pringle 

E-mail: mpresser@mofo.com / opringle@mofo.com 

and:
 Mintz, Levin, Cohn, Ferris,
Glovsky and Popeo, P.C. 
 One Financial Center 

Boston, Massachusetts 02111 

Attention: Sahir Surmeli / Thomas Burton III 

E-mail: SSurmeli@mintz.com / TBurton@mintz.com 

If to the Stockholder, to the Stockholder’s address set forth on a signature page hereto. 

Section 4.03 Expenses. Except as otherwise provided herein or in the Merger Agreement, all costs and expenses incurred in
connection with this Agreement and the transactions contemplated hereby shall be paid by the Party incurring such costs and expenses, whether or not the Merger is consummated. 

Section 4.04 Counterparts; Electronic Delivery. This Agreement and each other document executed in connection with the
transactions contemplated hereby, and the consummation thereof, may be executed in one or more counterparts, all of which shall be considered one and the same document and shall become effective when one or more counterparts have been signed by each
of the Parties and delivered to the other Party, it being understood that all parties need not sign the same counterpart. Delivery by electronic transmission to counsel for the other Party of a counterpart executed by a Party shall be deemed to meet
the requirements of the previous sentence. 
 Section 4.05 Entire Agreement; Third Party Beneficiaries. This Agreement and the
documents and instruments and other agreements between the Parties as contemplated by or referred to herein, including the annexes hereto (a) constitute the entire agreement between the Parties with respect to the subject matter hereof and
supersede all prior agreements and understandings, both written and oral, between the Parties and any of their respective Affiliates with respect to the transactions contemplated hereby; and (b) are not intended to confer upon any other person
any rights or remedies hereunder (except as specifically provided in this Agreement. No representations, warranties, covenants, understandings, agreements, oral or otherwise, relating to the transactions contemplated by this Agreement exist between
the parties except as expressly set forth or referenced in this Agreement and the Merger Agreement. 
 Section 4.06
Severability. In the event that any provision of this Agreement, or the application thereof, becomes or is declared by a court of competent jurisdiction to be illegal, void or unenforceable, the remainder of this Agreement will continue in
full force and effect and the application of such provision to other persons or circumstances will be interpreted so as reasonably to effect the intent of the parties hereto. The Parties further agree to modify this Agreement to replace such void or
unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the economic, business and other purposes of such void or unenforceable provision. 

  
 9 

 Section 4.07 Other Remedies; Specific Performance. Except as otherwise provided
herein, any and all remedies herein expressly conferred upon a Party will be deemed cumulative with and not exclusive of any other remedy conferred hereby, or by law or equity upon such Party, and the exercise by a Party of any one remedy will not
preclude the exercise of any other remedy. The Parties hereto agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached.
It is accordingly agreed that the Parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof in any court of the United States or any state having
jurisdiction, this being in addition to any other remedy to which they are entitled at law or in equity. Each Party agrees that it will not oppose the granting of specific performance and other equitable relief on the basis that the other Party has
an adequate remedy at law or that an award of specific performance is not an appropriate remedy for any reason at law or equity. The Parties acknowledge and agree that any Party seeking an injunction to prevent breaches of this Agreement and to
enforce specifically the terms and provisions of this Agreement in accordance with this Section shall not be required to provide any bond or other security in connection with any such injunction. 

Section 4.08 Governing Law. This Agreement shall be governed by and construed in accordance with the internal law of the State of
Delaware regardless of the law that might otherwise govern under applicable principles of conflicts of law thereof. 
 Section 4.09
Consent to Jurisdiction; WAIVER OF TRIAL BY JURY. Each of the Parties hereto irrevocably consents to the exclusive jurisdiction and venue of the Delaware Chancery Court (or, if the Delaware Chancery Court shall be unavailable, any other court
in the State of Delaware or, in the case of claims to which the federal courts have exclusive subject matter jurisdiction, any federal courts of the United States of America sitting in the State of Delaware) in connection with any matter based upon
or arising out of this Agreement or the transactions contemplated hereby, agrees that process may be served upon them in any manner authorized by the laws of the State of Delaware for such persons and waives and covenants not to assert or plead any
objection which they might otherwise have to such jurisdiction, venue and manner of service of process. Each Party hereto hereby agrees not to commence any legal proceedings relating to or arising out of this Agreement or the transactions
contemplated hereby in any jurisdiction or courts other than as provided herein. Each of the Parties hereto (i) certifies that no representative, agent or attorney of any other Party has represented, expressly or otherwise, that such other
Party would not, in the event of litigation, seek to enforce that foregoing waiver and (ii) acknowledges that it and the other Party hereto have been induced to enter into this Agreement and the transactions contemplated hereby, as applicable,
by, among other things, the mutual waivers and certifications in this Section. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION BASED UPON, ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY. 
 Section 4.10 Assignment. No Party may assign either this Agreement or any of its
rights, interests, or obligations hereunder without the prior written approval of the other Party. Subject to the first sentence of this Section, this Agreement shall be binding upon and shall inure to the benefit of the Parties hereto and
their respective successors and permitted assigns. 
 Section 4.11 Amendment. This Agreement may be amended by the parties
hereto at any time only by execution of an instrument in writing signed on behalf of each of the Parties. 
 [Signature Page Follows]

  

  
 10 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the
date first written above. 
  

			
	PIVOTAL INVESTMENT CORPORATION II
		
	By:	 	  

		 	Name:
		 	Title:
	
	XL HYBRIDS, INC.
		
	By:	 	  

		 	Name:
		 	Title:

 [Signature Page to Support Agreement] 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the
date first written above. 
 STOCKHOLDER 
  

					
	  
 Signature of Stockholder
	 	                	  	  
 Name of Person Signing for the
Stockholder (If signing in a representative capacity for a corporation, trust, partnership or other entity)

			
	  
 Printed Name of Stockholder
	 		  	  
 Title of Person Signing for the
Stockholder (If signing in a representative capacity for a corporation, trust, partnership or other entity)

			
	  
 [Signature of Stockholder’s
Spouse]
	 		  	  
 [Printed Name of Stockholder’s
Spouse]

 Address of Stockholder: 
  

							
	 Series
	  	 Shares Owned

Beneficially
	  	 Shares Held of Record
	  	 Shares Over Which the
Stockholder has

Full Voting Power

	Common	  	[•]	  	[•]	  	[•]
	Series A	  	[•]	  	[•]	  	[•]
	Series B	  	[•]	  	[•]	  	[•]
	Series C	  	[•]	  	[•]	  	[•]
	Series D	  	[•]	  	[•]	  	[•]

 Note: Please indicate class, series and subseries of Shares, as applicable. 

[Signature Page to Support Agreement] 
  

 Annex A 

ANNEX A 
 MERGER
AGREEMENT 
 [attached] 

  
 A-1 

 Annex B 

ANNEX B-1 

ACTION 
 BY WRITTEN
CONSENT 
 OF THE STOCKHOLDERS 

OF 
 XL HYBRIDS, INC.

 APPROVING THE MERGER 

[attached] 

  
 B-1 

 Annex B 

ANNEX B-2 

ACTION 
 BY WRITTEN
CONSENT 
 OF THE STOCKHOLDERS 

OF 
 XL HYBRIDS, INC.

 APPROVING THE TERMINATION OF 

THE FINANCING DOCUMENTS 

[attached] 

  
 B-2 

 Annex C 

ANNEX C 
 FORM OF
JOINDER 
 This Joinder Agreement (this “Joinder Agreement”) is made as of the date written below by the undersigned
(the “Joining Party”) in accordance with the Support Agreement dated as of [•] [•], 2020 (as amended, supplemented or otherwise modified from time to time, the “Support Agreement”) by and between
Parent and the Company Stockholder that is party thereto. Capitalized terms used herein and not otherwise defined shall have the meaning ascribed to them in the Support Agreement. 

The Joining Party hereby acknowledges, agrees and confirms that, by its execution of this Joinder Agreement, the Joining Party shall be deemed
to be a party to, and a “Stockholder” under, the Support Agreement as of the date hereof and shall have all of the rights and obligations of a Stockholder as if it had executed the Support Agreement. The Joining Party hereby ratifies, as
of the date hereof, and agrees to be bound by, all of the terms, provisions and conditions contained in the Support Agreement. 
 IN WITNESS
WHEREOF, the undersigned has duly executed this Joinder Agreement as of the date written below. 
  

					
	Date: [•][•], 20[•]	  		 	
			
		  	By:	 	  

		  		 	Name:
		  		 	Title:
		
		  	Address for Notices:
		
		  	With copies to:

  
 C-1 

 Annex D 

ANNEX D 
 FORM OF LOCK-UP AGREEMENT 
 [attached] 

  
 D-1 

 Annex E 

ANNEX E 
 SIGNATURE PAGE
TO REQUEST FOR CONVERSION 
 [attached] 

  
 E-1Exhibit
10.1

 

NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS NOTE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE
SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER
(IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

 

UNSECURED
Convertible PROMISSORY NOTE and guaranty

 

	$8,000,000.00	Dated
    as of: September 15, 2020

 

Article
I

GENERAL

 

1.1.
General.

 

ProPhase
Labs, Inc. (the “Company”),
for value received, hereby promises to pay to the order of JXVII TRUST or such holder’s successors and assigns (the
“Holder”), the principal amount of Eight Million Dollars ($8,000,000.00) (the “Loan”), together
with interest thereon calculated from the Closing Date hereof in accordance with the provisions of this promissory note (as the
same may be amended, amended and restated, supplemented or otherwise modified from time to time, this “Note”).

 

1.2.
Defined Terms.

 

As
used in this Note:

 

(a)
“Affiliate” shall mean any Person that, directly or indirectly, through one or more intermediaries, is in control
of, is controlled by, or under common control with the Person specified. “Affiliate” of any Person also includes any
of his or her immediate family, including spouse, and their respective lineal descendants.

 

(b)
“Business Day” shall mean any day other than Saturday, Sunday or days on which commercial banks in New York,
New York are authorized or required by law to close.

 

(c)
“Closing Date” shall mean the date on which the Company first receives the proceeds of the Loan.

 

(d)
“Company” shall have the meaning ascribed to such term in Section 1.1.

 

    	 

     

    

 

(e)
“Conversion Price” means $3.00.

 

(f)
“Conversion Stock” means the Company’s Common Stock, par value $0.0005.

 

(g)
“Event of Default” shall have the meaning ascribed to such term in Section 3.1 hereof.

 

(h)
“GAAP” means generally accepted accounting principles in the United States of America as in effect
from time to time.

 

(i)
“Guarantor” means Pharmaloz Manufacturing, Inc.

 

(j)
“Holder” shall have the meaning ascribed to such term in Section 1.1 hereof.

 

(k)
“Interest Rate” shall mean ten percent (10%) per annum.

 

(l)
“Lien” means any lien, encumbrance, mortgage, pledge, charge or security interest of any kind upon any property
or assets of the Company, whether now owned or hereafter acquired.

 

(m)
“Maturity Date” shall mean the thirty-six (36) month anniversary of the Closing Date.

 

(n)
“Note Register” means the register or other ledger maintained by the Company that records the record owners
of the Notes.

 

(o)
“Obligations” means all obligations (monetary or otherwise, whether absolute or contingent, matured or unmatured)
of the Company arising under or in connection with this Note and the principal of and premium, if any, and interest (including
interest accruing during the pendency of any proceeding of the type described in Section 3.1(b), whether or not allowed
in such proceeding) on the Loan.

 

(p)
“Party” means each of the Company, the Guarantor and the Holder.

 

(q)
“Payment Date” shall mean (x) each March 31st, June 30th, September 30th and
December 31st beginning with December 31, 2020 during the term of the Loan and (y) the Maturity Date.

 

(r)
“Permitted Liens” means: (a) Liens for taxes, assessments or other governmental charges that are not yet due
and payable or are being contested in good faith by appropriate proceedings and as to which the Company has set aside adequate
reserves; (b) statutory Liens of landlords and Liens of carriers, warehousemen, mechanics, materialmen and other similar Liens,
in each case, incurred in the ordinary course of business for sums not yet due and payable; (c) Liens to secure (or to obtain
letters of credit that secure) the performance of tenders, statutory obligations, surety bonds, appeal bonds, bids, leases (other
than capitalized leases), performance bonds, purchase, construction or sales contracts and other similar obligations, in each
case not incurred or made in connection with the borrowing of money, the obtaining of advances or credit or the payment of the
deferred purchase price of property; (d) any attachment or judgment Lien (provided that such Lien does not result in an Event
of Default hereunder); and (e) leases or subleases granted to others, easements, rights-of-way, restrictions and other similar
charges or encumbrances, in each case incidental to, and not interfering with, the ordinary conduct of the business of the Company
(provided that such Liens do not, in the aggregate, materially detract from the value of such property).

 

    	-2-

     

    

 

(s)
“Person” means natural persons, corporations, limited liability companies, limited partnerships, general partnerships,
limited liability partnerships, joint ventures, trusts, land trusts, business trusts, or other organizations, irrespective of
whether they are legal entities, and governments and agencies and political subdivisions thereof.

 

Article
II

NOTE PROVISIONS

 

2.1.
Maturity Date

 

The
outstanding principal balance of the Loan, together will all accrued and unpaid interest thereon, shall be due and payable on
the Maturity Date.

 

2.2.
Interest

 

Except
as otherwise provided herein, on and after the Closing Date, interest on the outstanding principal balance of the Loan shall accrue
at the rate per annum equal to the Interest Rate from the date the Loan was made until payment in full of the Loan, whether at
maturity, upon acceleration, by prepayment or otherwise. Interest on the Loan shall be computed on the basis of the actual number
of days the principal is outstanding on the basis of a 365-day or 366-day year, as is applicable. Interest shall accrue on the
Loan on the day on which such Loan is made, and shall not accrue on the day on which, the Loan or any portion of the Loan, is
paid. Interest on the Loan shall be due and payable in arrears on each Payment Date and at such other times as may be specified
herein.

 

2.3.
Payments

 

(a)
All payments of interest and principal (other than payment by way of conversion) shall be in lawful money of the United States
of America to Holder, at the address specified in this Note, or at such other address as may be specified from time to time by
Holder in a written notice delivered to the Company. If any payment under this Note shall come due on a day other than a Business
Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included
in the computation of interest.

 

(b)
Amounts prepaid or repaid may not be reborrowed.

 

2.4.
Termination of Commitment; Prepayments.

 

(a)
At any time prior to the Closing Date, the Company may elect to terminate this Note and the related commitments and Obligations
without premium or penalty.

 

(b)
At any time after the Closing Date and prior to the Maturity Date, the Company may prepay the Loan in whole or in part without
premium or penalty upon seven (7) Business Days’ prior notice to the Holder; provided however that after the Closing Date
and prior to the date that is the thirteen (13) month anniversary of the Closing Date, the Loan may only be repaid with the consent
of the Holder.

 

    	-3-

     

    

 

2.5.
Conversion; Issuance of Conversion Stock.

 

(a)
On and after the date that is the thirteen (13) month anniversary of the Closing Date and prior to the Maturity Date, the Holder
shall have the right, at the Holder’s sole option, at any time and from time to time, to convert up to Two Million Four
Hundred Thousand Dollars ($2,400,000.00) of this Note into shares of Conversion Stock at a price equal to the Conversion Price.
No fractional shares will be issued upon conversion of this Note. If upon conversion of
this Note, a fraction of a share would otherwise result, then in lieu of such fractional share the Company will pay the cash value
of that fractional share, calculated on the basis of the Conversion Price. The date of any conversion pursuant to this
Section 2.5(a) shall be referred to herein as a “Conversion Date”.

 

(b)
Upon the conversion, or partial conversion, of this Note, the Company will deliver to the Holder, or Holder’s authorized
designee, no later than two (2) Business Days after the Conversion Date, a certificate or certificates (which certificate(s) shall
be free of restrictive legends and trading restrictions if the shares of Conversion Stock underlying the portion of the Note being
converted are eligible under a resale exemption pursuant to Rule 144(b)(1)(ii) and Rule 144(d)(1)(ii) of the Securities Act) representing
the number of shares of Conversion Stock being acquired upon the conversion of this Note. In lieu of delivering physical certificates
representing the shares of Conversion Stock issuable upon conversion of this Note, provided the Company’s transfer agent
is participating in DTC’s FAST program, the Company shall instead use commercially reasonable efforts to cause its transfer
agent to electronically transmit such shares issuable upon conversion to the Holder (or its designee), by crediting the account
of the Holder’s (or such designee’s) broker with DTC through its DWAC program (provided that the same time periods
herein as for stock certificates shall apply).

 

(c)
Upon conversion of this Note, or any portion thereof, all rights with respect to this Note, or the converted portion of this Note,
as applicable, shall terminate upon the issuance of the applicable shares of the Conversion Stock, whether or not this Note has
been surrendered. Notwithstanding the foregoing, Holder agrees to surrender this Note to the Company for cancellation as soon
as is possible following any conversion, or partial conversion, of this Note. Holder shall not be entitled to receive the shares
of Conversion Stock to be issued upon conversion, or partial conversion, of this Note until the original of this Note is surrendered
to the Company.

 

(d)
Issuance of Conversion Stock to the Holder, or any of its assignees, upon the conversion of this Note shall be made without charge
to the Holder for any issuance fee, transfer tax, postage/mailing charge or any other expense with respect to the issuance of
such Conversion Stock. The Company shall pay all transfer agent fees incurred from the issuance of the Conversion stock to the
Holder.

 

(e)
This Note does not by itself entitle Holder to any voting rights or other rights as a stockholder
of the Company. In the absence of conversion of this Note, no provisions of this Note, and no enumeration herein of the rights
or privileges of Holder, shall cause Holder to be a stockholder of the Company for any purpose.

 

    	-4-

     

    

 

(f)
On and after the Closing Date, the Company covenants that it will at all times reserve and keep available for Holder, out of its
authorized and unissued Common Stock solely for the purpose of issuance upon conversion of this Note, free from preemptive rights
or any other actual contingent purchase rights of persons other than the Holder, the number of shares of Conversion Stock as shall
be issuable upon the conversion of this Note (the “Required Reserve”). The Company covenants that on and after the
Closing Date all shares of Conversion Stock that shall be issuable will, upon issue, be duly authorized, validly issued, fully-paid,
non-assessable and freely-tradable (if eligible).

 

2.6.
Guarantee. After the Closing Date, in the event
that following the Maturity Date the Company fails to deliver any payments in accordance with the terms hereof, then, in such
case, Guarantor hereby guarantees to the Holder the payment of all sums required to be paid by the Company under this Note and
not paid by the Company, provided that no sums shall be guaranteed hereunder which shall already have been paid by the Company
under the term of this Note or that have been previously paid by the Guarantor. 

 

Article
III

EVENTS OF DEFAULT

 

3.1.
Events of Default.

 

The
occurrence of each of the following events or circumstances after the Closing Date shall constitute an “Event of Default”:

 

(a)
the Company or the Guarantor shall fail to pay principal amount of the Loan when due and such failure continues for a period of
at least ten (10) Business Days; or

 

(b)
the Company shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts
generally, or shall make a general assignment for the benefit of creditors, or any proceeding shall be instituted by or against
the Company seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization
or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, or other similar
official for it or for any substantial part of its property and in the case of any such proceeding instituted against the Company
such proceeding shall not be stayed or dismissed within ninety (90) days from the date of institution thereof.

 

3.2.
Action upon any Event of Default.

 

If
any Event of Default shall occur and while such Event of Default is continuing, the Holder, may at its option and upon notice
to the Company and the Guarantor declare the entire outstanding principal amount of the Loan, together with any accrued but unpaid
interest owing thereunder immediately due and payable the entire outstanding principal amount of this Note, together with accrued
but unpaid interest thereon,.

 

    	-5-

     

    

 

Article
IV

COVENANTS AND OTHER PROVISIONS

 

4.1.
Covenants.

 

(a)
Lien Covenant. After the Closing Date and continuing during the time principal amounts are outstanding under this
Note, Company shall not create, incur, assume or permit to exist, directly or indirectly, any (i) Lien securing Indebtedness for
borrowed money except Permitted Liens, (ii) Liens securing obligations other than Indebtedness for borrowed money and (ii) other
Liens which do not secure indebtedness for borrowed money as to which the aggregate amount of the obligations secured thereby
at any one-time outstanding does not exceed $250,000.

 

(b)
Divestment covenant. If after the Closing Date any assets of the Company are divested (other than the sale of assets
in the ordinary course of the Company’s business consistent with past practices), the proceeds of such sale shall be utilized
for general working capital purposes and may not be distributed/re-invested other than as short term cash and cash equivalents
without the prior approval of the Holder. The restrictions of this Section 4.1(b) are not applicable to the proceeds of
the sale of the Company’s headquarters and facilities in Doylestown, Pennsylvania, which sale transaction is pending.

 

4.2.
Waivers, Amendments, etc.

 

The
provisions of this Note may from time to time be amended, modified or waived if such amendment, modification or waiver is in writing
and executed by the Parties.

 

4.3.
Notices.

 

All
notices, requests or communications required or permitted to be given, sent or delivered to any of the parties to this Agreement
shall be in writing and shall be deemed to have been given, sent or delivered, subject to the further provisions of this 3, (a)
the same day, when presented personally to such party or emailed, (b) the next Business Day, when sent by nationally recognized
overnight delivery service or (c) the third Business Day following mailing, when sent by first class U.S. mail, to such party
at its address set forth below, in each case, it being understood that a receipt of any notice on any day other than a Business
Day or after 5:00 p.m. (in the recipient’s time zone) on any day shall be deemed to have been received, or as context may
require, given, on the next Business Day.

 

If
to the Company or the Guarantor, addressed to the Company:

 

ProPhase
Labs, Inc.

621 N. Shady Retreat Road,

Doylestown,
PA, 18901

Attention: Ted Karkus

Telephone: (215) 345-0919

Email: karkus@prophaselabs.com

 

    	-6-

     

    

 

If
to the Holder, addressed to it:

 

JXVII
Trust

442
Hunterwood Drive

Houston,
TX 77024

Attention: George R. Harrison

Telephone: (979) 479-3866

Email: grharrison@stpegs.com

 

or
to such other persons or entities or addresses as any one Party may request or notify the other Party from time to time.

 

4.4.
Severability.

 

Any
provision of this Note which is prohibited or unenforceable in any jurisdiction shall, as to such provision and such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Note
or affecting the validity or enforceability of such provision in any other jurisdiction.

 

4.5.
Headings.

 

The
headings of this Note are inserted for convenience only and shall not affect the meaning or interpretation of this Note or any
provisions hereof.

 

4.6.
Replacement of Note.

 

Upon
the Company’s receipt of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Note and, in
case of loss, theft or destruction, of an indemnity reasonably satisfactory to it, or, in the case of mutilation, upon surrender
and cancellation of this Note, and in all cases upon reimbursement to the Company of all reasonable expenses incidental thereto,
the Company will make and deliver a new Note of like tenor in lieu of this Note.

 

4.7.
Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.

 

THIS
NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE
SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK) AND WITHOUT GIVING EFFECT TO ANY CHOICE OR
CONFLICT OF LAW PROVISION OR RULE THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION OTHER THAN THE STATE
OF NEW YORK. All disputes and controversies between the parties hereto arising out of or in connection with or relating to this
Note or any matters described or contemplated herein shall be handled at a proceedingS IN COURTS IN THE BOROUGH OF MANHATTAN IN
THE CITY OF NEW YORK IN THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK. Each
of the parties expressly consents to the foregoing jurisdiction and agrees to waive to the full extent permitted by law any objection
that they may now or hereafter have to the venue of any such litigation, proceeding or action in any such court or that any such
litigation, proceeding or action was brought in an inconvenient forum. EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES
THE RIGHT TO A TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING IN CONNECTION WITH OR RELATING TO THIS AGREEMENT, THE SECURITY
AGREEMENT OR ANY OTHER DOCUMENT RELATING THERETO AND FOR ANY COUNTERCLAIM THEREIN.

 

    	-7-

     

    

 

4.8.
Entire Understanding.

 

This
Note constitutes the entire understanding and agreement between the parties hereto concerning the subject matter hereof. All negotiations
and writings between the parties with respect to the subject matter hereof are merged into this Note, and there are no representations,
warranties, covenants, understandings, or agreements, oral or otherwise, in relation thereto between the parties other than those
incorporated herein or to be delivered hereunder.

 

4.9.
Usury Laws.

 

It
is the intention of the Company, the Guarantor and the Holder of this Note to conform strictly to all applicable usury laws now
or hereafter in force, and if at any time and for any reason the interest rate payable on the Loan shall exceed the maximum legal
amount permitted to be charged under applicable usury laws such interest rate shall be reduced automatically to the maximum rate
of interest permitted to be charged under applicable law and that portion of each sum paid attributable to that portion of such
interest rate that exceeds the maximum rate of interest permitted by applicable law shall be deemed a voluntary prepayment of
principal (provided, however, that Prepayment Penalty shall be due with respect to any such amounts so prepaid).

 

4.10.
Successors; Restrictions on Transfer; Transfer Mechanics.

 

(a)
This Note shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted
assigns; provided, however, that neither the Company nor Holder may assign, sell, pledge or otherwise transfer its
rights or obligations under this Note without the prior written consent of the other party, which consent may be withheld in the
other party’s sole discretion and any transfer shall be subject to the restrictions on transfer described below.

 

(b)
This Note has not been registered under the Securities Act, or the securities laws of any state or other jurisdiction. Neither
this Note nor any interest or participation herein may be reoffered, sold, assigned, transferred, pledged, encumbered or otherwise
disposed of (a “Transfer”) in the absence of such registration or unless (i) such transaction is exempt from,
or not subject to, registration under the Securities Act or the securities laws of any state or other jurisdiction and (ii) is
made in compliance with applicable federal and state statutory resale restrictions, if any. The Holder by its acceptance of this
Note agrees that it shall not offer, sell, assign, transfer, pledge, encumber or otherwise dispose of this Note or any portion
thereof or interest therein and then (other than with respect to a Transfer pursuant to a registration statement that is effective
at the time of such Transfer) only (A) to the Company, (B) to an Affiliate of the Holder, (C) to a Person it reasonably believes
to be an “accredited investor” within the meaning of Rule 501(a) under the Securities Act, or (D) pursuant to a transaction
in compliance with Rule 144 or Rule 144A under the Securities Act, and in the case of (B), (C) and (D) above in which the transferor
furnishes the Company with such certifications, legal opinions or other information as the Company may reasonably request to confirm
that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements
of the Securities Act as applicable.

 

    	-8-

     

    

 

(c)
The Holder represents that it is an “accredited investor” within the meaning of Rule 501 of the Securities Act. The
Holder has been advised that this Note has not been registered under the Securities Act, or any state securities laws and, therefore,
cannot be resold unless it is registered under the Securities Act and applicable state securities laws or unless an exemption
from such registration requirements is available. The Holder is aware that the Company is under no obligation to effect any such
registration or to file for or comply with any exemption from registration. The Holder has not been formed solely for the purpose
of making this investment and is acquiring the Note for its own account for investment, and not with a view to, or for resale
in connection with, the distribution thereof.

 

(d)
The Company shall cooperate with the Holder and take all actions reasonably necessary to effectuate any Transfer of this Note
by the Holder that is permitted under Section 4.10 (b) above.

 

(e)
The transfer of this Note is registrable on the Note Register upon surrender of this Note for registration of transfer at the
address of the Company identified in Section 4.3 of this Note (the “Designated Office”), duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the Company duly executed by, the Holder hereof or
such Holder’s attorney duly authorized in writing, and thereupon one or more new Notes, of authorized denominations and
for the same aggregate principal amount, will be issued to the designated transferee or transferees. Such Notes are issuable only
in registered form without coupons in denominations of $50,000. No service charge shall be made for any such registration of transfer,
but the Company may require payment of a sum sufficient to recover any tax or other governmental charge payable in connection
therewith. Prior to due presentation of this Note for registration of transfer, the Company and any agent of the Company may treat
the Person in whose name this Note is registered as the owner thereof for all purposes, whether or not this Note be overdue, and
neither the Company nor any such agent shall be affected by notice to the contrary.

 

(f)
Upon presentation of this Note for registration of transfer at the Designated Office accompanied by (i) certification by the transferor
that such transfer is in compliance with the terms hereof and (ii) by a written instrument of transfer in a form approved by the
Company executed by the Holder, in person or by the Holder’s attorney thereunto duly authorized in writing, and including
the name, address and telephone and fax numbers of the transferee and name of the contact person of the transferee, such Note
shall be transferred on the Note Register, and a new Note of like tenor and bearing the same legends shall be issued in the name
of the transferee and sent to the transferee at the address and c/o the contact person so indicated. Transfers and exchanges of
Notes shall be subject to such additional restrictions as are set forth in the legends on the Notes and to such additional reasonable
regulations as may be prescribed by the Company as specified in this Section 4.10. Successive registrations of transfers as aforesaid
may be made from time to time as desired, and each such registration shall be noted on the Note register.

 

    	-9-

     

    

 

4.11.
Waiver.

 

Except
as otherwise provided for in this Note, and to the fullest extent permitted by applicable law, Company waives presentment, notice,
demand and protest, and notice of non-payment, presentment, dishonor, acceleration of maturity and diligence in connection with
the enforcement of this Note or the taking of any actions to collect sums owing hereunder. No failure or delay on the part of
the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single
or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power
or privilege at any other time. All rights and remedies existing hereunder are cumulative.

 

4.12.
Counterparts.

 

This
Note may be executed by the parties hereto in several counterparts, each of which shall be an original and all of which shall
constitute together but one and the same agreement. This Note shall become effective when counterparts hereof executed on behalf
of all of the signatories hereto, shall have been received by the Holder. Delivery of an executed counterpart of a signature page
to this Note by email (e.g. “pdf” or “tiff”) or telecopy shall be effective as delivery of a manually
executed counterpart of this Note.

 

4.13.
No Recourse Against Others. No director, officer, employee or stockholder, as such,
of neither the Company not the Guarantor shall have any liability for any obligations of the Company or the Guarantor under this
Note or for any claim based on, in respect or by reason of, such obligations or their creation. The Holder by accepting this Note
waives and releases all such liability. This waiver and release are part of the consideration for the issue of this Note.

 

4.14.
Attorney’s Fees and Costs.

 

Each
Party is obligated to pay its own costs and expenses in connection with this Note (including fees and expenses of counsel and
costs incurred by the Holder in connection with enforcement).

 

[Signature
Page Follows]

 

    	-10-

     

    

 

IN
WITNESS WHEREOF, each of the undersigned Parties have duly executed and delivered this Note as of the date first written above.

 

	 	COMPANY:
	 	 	 
	 	PROPHASE LABS, INC.
	 	 	 
	 	By:	/s/ Ted
    Karkus
	 	Name:	Ted
    Karkus
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	Guarantor:
	 	 	 
	 	PHARMALOZ MANUFACTURING, INC.
	 	 	 
	 	By:	/s/
    Ted Karkus
	 	Name:	Ted
    Karkus
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	HOLDER:
	 	 	 
	 	JXVII TRUST
	 	 	 
	 	By:	/s/
    George R. Harrison
	 	Name:	George
    R. Harrison
	 	Title:	Trustee

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