Document:

Exhibit 10.3

 

eNow,
Inc.

 

CONVERTIBLE
PROMISSORY NOTE 

 

PURCHASE
AGREEMENT

 

July 13, 2021

 

THE SECURITIES MAY BE SOLD ONLY TO “ACCREDITED
INVESTORS”, WHICH FOR NATURAL PERSONS, ARE INVESTORS WHO MEET CERTAIN MINIMUM ANNUAL INCOME OR NET WORTH THRESHOLDS.

 

THE SECURITIES ARE BEING OFFERED IN RELIANCE ON
AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ARE NOT REQUIRED TO COMPLY WITH SPECIFIC DISCLOSURE REQUIREMENTS
THAT APPLY TO REGISTRATION UNDER THE SECURITIES ACT.

 

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT
PASSED UPON THE MERITS OF OR GIVEN ITS APPROVAL TO THE SECURITIES, THE TERMS OF THE OFFERING, OR THE ACCURACY OR COMPLETENESS OF ANY OFFERING
MATERIALS.

 

THE SECURITIES ARE SUBJECT TO LEGAL RESTRICTIONS
ON TRANSFER AND RESALE AND INVESTORS SHOULD NOT ASSUME THEY WILL BE ABLE TO RESELL THEIR SECURITIES.

 

INVESTING IN SECURITIES INVOLVES RISK, AND INVESTORS
SHOULD BE ABLE TO BEAR THE LOSS OF THEIR INVESTMENT.

 

     

     

    

 

eNow, Inc.

 

CONVERTIBLE PROMISSORY
NOTE PURCHASE AGREEMENT

 

This
Convertible Promissory Note Purchase Agreement (the “Agreement”) is made as of July 13, 2021 (the
“Effective Date”) by and among eNow, Inc., a Delaware corporation
(the “Company”), XL Hybrids, Inc., a Delaware corporation (the “Lead Investor”) and
such other persons and entities named on the Schedule of Purchasers attached hereto (including the Lead Investor, each individually, a
“Purchaser” and collectively, the “Purchasers”).

 

Recital

 

To provide the Company with
additional resources to conduct its business, the Purchasers are willing to loan to Company in one or more disbursements up to an aggregate
amount of $6,000,000, subject to the conditions specified herein.

 

Agreement

 

Now,
Therefore, in consideration of the foregoing, and the representations, warranties, covenants and conditions set forth below,
the Company and each Purchaser, intending to be legally bound, hereby agree as follows:

 

		1.	Amount and Terms of the Loan

 

1.1 The
Loan. Subject to the terms of this Agreement, each Purchaser agrees to lend to the Company at the Closing (as hereinafter defined)
the amount set forth opposite such Purchaser’s name on the Schedule of Purchasers attached to this Agreement (each, a “Loan
Amount”) against the issuance and delivery by the Company of a convertible promissory note for such amount, in substantially
the form attached hereto as Exhibit A
(each, a “Note” and collectively, the “Notes”).

 

		2.	Closing and Delivery

 

2.1 Closing.
The initial closing of the sale and purchase of the Notes (the “Initial Closing”) shall be held on the Effective
Date, or at such other time as the Company and Purchasers may mutually agree (such date is hereinafter referred to as the “Initial
Closing Date”). The term “Closing” shall apply to the Initial Closing and any Additional Closing
(as hereinafter defined).

 

2.2 Subsequent
Sales of Notes. At any time on or before December 31, 2021, the Company may sell Notes representing up to the balance of the authorized
principal amount to additional purchasers (who may include purchasers, who shall be subject to the prior written consent of the Lead Purchaser,
which shall not be unreasonably withheld, conditioned or delayed, from prior closings, the “Additional Purchasers”)
not sold at the Initial Closing and previous Additional Closings, if any (each an “Additional Closing”). Each
sale at an Additional Closing shall be made on the terms and conditions set forth in this Agreement and (i) the representations and warranties
of the Company set forth in Section 3 hereof shall speak as of the Closing and the Company shall have no obligation to update any disclosure
related thereto, and (ii) the representations and warranties of the Additional Purchasers in Section 4 hereof shall speak as of such
Additional Closing. This Agreement, including without limitation, the Schedule of Purchasers, may only be amended by the Company with
the consent of the Lead Purchaser to include any Additional Purchasers upon the execution by such Additional Purchasers of a counterpart
signature page hereto. Any Notes sold pursuant to this Section 2.2 shall be deemed to be “Notes,” for all
purposes under this Agreement and any Additional Purchasers thereof shall be deemed to be “Purchasers” for all
purposes under this Agreement.

 

2.3 Delivery.
At the Initial Closing and each Additional Closing, as applicable, (i) each Purchaser shall deliver to the Company a check or wire
transfer funds in the amount of such Purchaser’s Loan Amount; and (ii) the Company shall issue and deliver to each Purchaser
a Note in favor of such Purchaser payable in the principal amount of such Purchaser’s Loan Amount.

 

		3.	Representations, Warranties the Company

 

The Company hereby represents
and warrants to each Purchaser as of the Closing as follows:

 

3.1 Organization,
Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware. The Company has the requisite corporate power to own and operate its properties and assets and to carry on its
business as now conducted and as proposed to be conducted. The Company is duly qualified and is authorized to do business and is in good
standing as a foreign corporation in all jurisdictions in which the nature of its activities and of its properties (both owned and leased)
makes such qualification necessary, except for those jurisdictions in which failure to do so would not have a material adverse effect
on the Company or its business.

 

Convertible Note Purchase Agreement

eNow, Inc.

 

    1.

     

    

 

3.2 Corporate
Power. The Company has all requisite corporate power to execute and deliver this Agreement, to issue each Note (collectively, the
“Loan Documents”) and all other closing deliverable contemplated hereby, and to carry out and perform its obligations
under the terms of the Loan Documents.

 

3.3 Authorization.
All corporate action on the part of the Company, its directors and its stockholders necessary for the authorization of the Loan Documents
and the execution, delivery and performance of all obligations of the Company under the Loan Documents, including the issuance and delivery
of the Notes and the reservation of the equity securities issuable upon conversion of the Notes (collectively, the “Conversion
Securities”) has been taken or will be taken prior to the issuance of such Conversion Securities. The Loan Documents, when
executed and delivered by the Company, shall constitute valid and binding obligations of the Company enforceable in accordance with their
terms, subject to laws of general application relating to bankruptcy, insolvency, the relief of debtors and, with respect to rights to
indemnity, subject to federal and state securities laws. The Conversion Securities, when issued in compliance with the provisions of the
Loan Documents will be validly issued, fully paid and nonassessable and free of any liens or encumbrances and issued in compliance with
all applicable federal and securities laws.

 

3.4 Governmental
Consents. All consents, approvals, orders, or authorizations of, or registrations, qualifications, designations, declarations, or
filings with, any governmental authority, required on the part of the Company in connection with the valid execution and delivery of this
Agreement, the offer, sale or issuance of the Notes and the Conversion Securities issuable upon conversion of the Notes or the consummation
of any other transaction contemplated hereby shall have been obtained and will be effective at such time as required by such governmental
authority.

 

3.5 Compliance
with Laws. The Company is not in violation of any applicable statute, rule, regulation, order or restriction of any domestic or foreign
government or any instrumentality or agency thereof in respect of the conduct of its business or the ownership of its properties.

 

3.6 Compliance
with Other Instruments. The Company is not in violation or default of any term of its certificate of incorporation or bylaws, or of
any provision of any mortgage, indenture or contract to which it is a party and by which it is bound or of any judgment, decree, order
or writ, other than such violations that would not individually or in the aggregate have a material adverse effect on the Company. The
execution, delivery and performance of the Loan Documents, and the consummation of the transactions contemplated by the Loan Documents
will not result in any such violation or be in conflict with, or constitute, with or without the passage of time and giving of notice,
either a default under any such provision, instrument, judgment, decree, order or writ or an event that results in the creation of any
lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, impairment, forfeiture, or nonrenewal of any
material permit, license, authorization or approval applicable to the Company, its business or operations or any of its assets or properties
that have not been properly waived or complied with. The sale of the Notes and the subsequent issuance of the Conversion Securities are
not and will not be subject to any preemptive rights or rights of first refusal that have not been properly waived or complied with.

 

3.7 Offering.
Assuming the accuracy of the representations and warranties of the Purchasers contained in Section 4 hereof, the offer, issue, and
sale of the Notes and the Conversion Securities (collectively, the “Securities”) are and will be exempt from
the registration and prospectus delivery requirements of the Securities Act of 1933, as amended (the “Act”),
and have been registered or qualified (or are exempt from registration and qualification) under the registration, permit, or qualification
requirements of all applicable state securities laws.

 

3.8 Use
of Proceeds. The first $3,000,000 of proceeds shall only be used for working capital purposes; provided, any proceeds in excess of
$3,000,000 (“Excess Proceeds”) shall be used to pay obligations pursuant to the Pre-Existing Convertible Notes (as
defined in Section 5.1) and Pre-Existing Credit Facilities (as defined in Section 5.2), unless otherwise consented to by the Lead Investor.

 

		4.	Representations and Warranties of the Purchasers

 

4.1 Purchase
for Own Account. Each Purchaser represents that it is acquiring the Securities solely for its own account and beneficial interest
for investment and not for sale or with a view to distribution of the Securities or any part thereof, has no present intention of selling
(in connection with a distribution or otherwise), granting any participation in, or otherwise distributing the same, and does not presently
have reason to anticipate a change in such intention.

 

Convertible Note Purchase Agreement

eNow, Inc.

 

    2.

     

    

 

4.2 Information
and Sophistication. Without lessening or obviating the representations and warranties of the Company set forth in Section 3, each
Purchaser hereby: (i) acknowledges that it has received all the information it has requested from the Company and it considers necessary
or appropriate for deciding whether to acquire the Securities, (ii) represents that it has had an opportunity to ask questions and receive
answers from the Company regarding the terms and conditions of the offering of the Securities and to obtain any additional information
necessary to verify the accuracy of the information given the Purchaser and (iii) further represents that it has such knowledge and experience
in financial and business matters that it is capable of evaluating the merits and risk of this investment.

 

4.3 Ability
to Bear Economic Risk. Each Purchaser acknowledges that investment in the Securities involves a high degree of risk, and represents
that it is able, without materially impairing its financial condition, to hold the Securities for an indefinite period of time and to
suffer a complete loss of its investment.

 

4.4 Further
Limitations on Disposition. Without in any way limiting the representations set forth above, each Purchaser further agrees not to
make any disposition of all or any portion of the Securities unless and until:

 

(a) There
is then in effect a Registration Statement under the Act covering such proposed disposition and such disposition is made in accordance
with such Registration Statement; or

 

(b) The
Purchaser shall have notified the Company of the proposed disposition and shall have furnished the Company with a detailed statement of
the circumstances surrounding the proposed disposition, and if reasonably requested by the Company, such Purchaser shall have furnished
the Company with an opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require registration under
the Act or any applicable state securities laws, provided that no such opinion shall be required for dispositions in compliance with Rule
144, except in unusual circumstances.

 

(c) Notwithstanding
the provisions of paragraphs (a) and (b) above, no such registration statement or opinion of counsel shall be necessary for a transfer
by such Purchaser to a partner (or retired partner) or member (or retired member) of such Purchaser in accordance with partnership or
limited liability company interests, or transfers by gift, will or intestate succession to any spouse or lineal descendants or ancestors,
if all transferees agree in writing to be subject to the terms hereof to the same extent as if they were Purchasers hereunder.

 

4.5 Accredited
Investor Status. Each Purchaser is an “accredited investor” as such term is defined in Rule 501 under the Act.

 

		5.	Special Conditions to Closing

 

Each Purchaser’s obligation
to close hereunder shall be conditioned upon the satisfaction by the Company of the following conditions precedent to the reasonable satisfaction
of the Lead Investor:

 

5.1 Pre-Existing
Convertible Notes. Each convertible note issued by the Company and existing on or prior to the Initial Closing Date (the “Pre-Existing
Convertible Notes”) shall (a) be amended such that (1) any payments made by the Company thereunder are subordinate to payments
made to the holders of the Notes, (2) such Pre-Existing Convertible Notes must convert into a class of capital stock of the Company subordinate
to the rights of the holders of the Conversion Securities, or (b) be paid in full and terminated. The Company may use Excess Proceeds,
to the extent sufficient Excess Proceeds exist, to satisfy the condition contemplated by this Section 5.1 contemporaneously by repaying
the existing Pre-Existing Convertible Notes, in full, with the Initial Closing.

 

5.2 Pre-Existing
Credit Facilities. The Company shall have received consents, in a form reasonably acceptable to the Lead Purchaser, from applicable
third parties in connection with each loan or credit facility made or offered to the Company on or prior to the Initial Closing Date (the
“Pre-Existing Credit Facilities”) to the extent required to avoid an event of default under such Pre-Existing Credit
Facilities, in a form reasonably acceptable to the Lead Purchaser. In lieu of such consent with respect to any specific Pre-Existing Credit
Facility, the Company may use Excess Proceeds, to the extent sufficient Excess Proceeds exist, to satisfy any remaining obligations that
exist under such Credit Facility contemporaneously with or as soon as possible following the Initial Closing.

 

Convertible Note Purchase Agreement

eNow, Inc.

 

    3.

     

    

 

		6.	Further Agreements

 

6.1 Protective
Provisions. So long as the Notes remain outstanding, the Company shall not, without the vote or written consent from holders of the
Requisite Holders,(as defined in Section 7.6), take any of the actions described requiring the approval of the Series A Preferred Director
pursuant to the Company’s Certificate of Incorporation and the items described in the Protective Provisions of Attachment A to the
Note, as well as (i) adversely and disproportionately alter or change the rights, preferences or privileges of the Notes, (ii) amend
or waive any provision of the Company’s Certificate of Incorporation or By-laws in a manner that would adversely and disproportionately
alter or change the rights, preferences or privileges of the Notes, the shares issued upon the conversion of the Notes or the rights of
the shares issued upon the conversion of the Notes described in Attachment A to the Note, or (iii) and the rights and privileges of the
Lead Purchaser under the Side Letter (as defined in the Note).

 

6.2 “Market
Stand-Off” Agreement. Each Purchaser agrees that such Purchaser shall not sell, transfer, make any short sale of, grant any
option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale, any Common Stock
(or other securities) of the Company held by such Purchaser (other than those included in the registration) during the 180-day period
following the effective date of the Company’s first firm commitment underwritten public offering of its Common Stock registered
under the Securities Act (or such longer period as the underwriters or the Company shall request in order to facilitate compliance with
FINRA Rule 2711 or NYSE Member Rule 472 or any successor or similar rule or regulation), provided that all officers and directors of the
Company are bound by and have entered into similar agreements. Each Purchaser agrees to execute and deliver such other agreements as may
be reasonably requested by the Company or the underwriters that are consistent with the Purchaser’s obligations under Section 5.2
or that are necessary to give further effect to this Section 5.2. In addition, if requested by the Company or the representative of the
underwriters of Common Stock (or other securities) of the Company, each Purchaser shall provide, within 10 days of such request, such
information as may be required by the Company or such representative in connection with the completion of any public offering of the Company’s
securities pursuant to a registration statement filed under the Act. The obligations described in this Section 5.2 shall not apply to
a registration relating solely to employee benefit plans on Form S-1 or Form S-8 or similar forms that may be promulgated in the future,
or a registration relating solely to a transaction on Form S-4 or similar forms that may be promulgated in the future.

 

6.3 Further
Assurances. Each Purchaser agrees and covenants that at any time and from time to time it will promptly execute and deliver to the
Company such further instruments and documents and take such further action as the Company may reasonably require in order to carry out
the full intent and purpose of this Agreement and to comply with state or federal securities laws or other regulatory approvals.

 

6.4 Standstill.
From the signing date hereof until December 31, 2021 (other than the Call Right (as defined in the Note), the Company agrees that it shall
not solicit, encourage others to solicit, encourage or accept any offers for any investment in the Company, including the purchase or
acquisition of any shares in the Company or any of its subsidiaries or affiliates (other than exercises of options), of all or any substantial
part of the assets of the Company or any of its subsidiaries or affiliates, or proposals for any merger or consolidation involving the
Company or any of its subsidiaries or affiliates, and it shall not negotiate with or enter into any agreement or understanding with any
other person with respect thereto.

 

		7.	Miscellaneous

 

7.1 Binding
Agreement. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors
and assigns of the parties. Nothing in this Agreement, expressed or implied, is intended to confer upon any third party any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

7.2 Governing
Law. This Agreement shall be governed by and construed under the laws of the State of Delaware as applied to agreements among Delaware
residents, made and to be performed entirely within the State of Delaware, without giving effect to conflicts of laws principles.

 

Convertible Note Purchase Agreement

eNow, Inc.

 

    4.

     

    

 

7.3 Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

 

7.4 Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing
or interpreting this Agreement.

 

7.5 Notices.
All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery
to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the
recipient, if not, then on the next business day, (c) five days after having been sent by registered or certified mail, return receipt
requested, postage prepaid, or (d) one day after deposit with a nationally recognized overnight courier, specifying next day delivery,
with written verification of receipt. All communications shall be sent to the Company at the address on the signature page below, and
to Purchaser at the addresses set forth on the Schedule of Purchasers attached hereto or at such other addresses as the Company or Purchaser
may designate by 10 days advance written notice to the other parties hereto.

 

7.6 Modification;
Waiver. No modification or waiver of any provision of this Agreement or consent to departure therefrom shall be effective only upon
the written consent of the Company and the holders of the Notes representing a majority of the aggregate principal amount of all Notes
then outstanding, which shall include the Lead Purchaser (the “Requisite Holders”). Any provision of the Notes
may be amended or waived by the written consent of the Company and the Requisite Holders.

 

7.7 Expenses.
The Company and each Purchaser shall each bear its respective expenses and legal fees incurred with respect to this Agreement and the
transactions contemplated herein.

 

7.8 Delays
or Omissions. It is agreed that no delay or omission to exercise any right, power or remedy accruing to each Purchaser, upon any breach
or default of the Company under the Loan Documents shall impair any such right, power or remedy, nor shall it be construed to be a waiver
of any such breach or default, or any acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall
any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. It is
further agreed that any waiver, permit, consent or approval of any kind or character by Purchaser of any breach or default under this
Agreement, or any waiver by any Purchaser of any provisions or conditions of this Agreement must be in writing and shall be effective
only to the extent specifically set forth in writing and that all remedies, either under this Agreement, or by law or otherwise afforded
to the Purchaser, shall be cumulative and not alternative.

 

7.9 Entire
Agreement. This Agreement and the Exhibits hereto constitute the full and entire understanding and agreement between the parties with
regard to the subjects hereof and no party shall be liable or bound to any other party in any manner by any representations, warranties,
covenants and agreements except as specifically set forth herein.

 

[signature page follows]

 
Convertible Note Purchase Agreement

eNow, Inc.

 

    5.

     

    

 

In
Witness Whereof, the parties have executed this Convertible Promissory Note Purchase
Agreement as of the date first written above.

 

	Company:	 
	 	 
	eNow, Inc.	 
	 	 
	By: 	 /s/ Jeffrey C. Flath	 
	Name: 	Jeffrey C. Flath	 
	Title: 	President	 

 

	Address:	 
	 	 
	133 Hallene Road	 
	Warwick, RI 02886	 

 

	Convertible Note Purchase Agreement	 
	eNow, Inc.	Signature Page	 

 

     

     

    

 

In
Witness Whereof, the parties have executed this Convertible Promissory Note Purchase
Agreement as of the date first written above.

 

	PURCHASER:	 
	 	 
	XL Hybrids, Inc.	 
	 	 	 
	By: 	/s/
    Dimitri Kazarinoff	 
	Name: 	 Dimitri Kazarinoff	 
	Title:  	CEO	 
	 	 	 
	Address:	 
	 	 
	145 Newton Street, Brighton, MA 02135	 
	 	 
	 	 

 

	Convertible Note Purchase Agreement	 
	eNow, Inc.	Signature Page	 

 

     

     

    

 

In
Witness Whereof, the parties have executed this Convertible Promissory Note Purchase
Agreement as of the date first written above.

 

	PURCHASER:	 
	 	 
	/s/ Ernest Abrahmson 	 
	Ernest Abrahmson	 
	 	 
	Address:	 
	 	 
	16 Sutton Place Apt 14a	 
	New York, NY 10022	 
	 	 

 

	Convertible Note Purchase Agreement	 
	eNow, Inc.	Signature Page	 

 

     

     

    

 

In
Witness Whereof, the parties have executed this Convertible Promissory Note Purchase
Agreement as of the date first written above.

 

	PURCHASER:	 
	 	 
	/s/ John Gibb 	 
	John Gibb	 
	 	 
	Address:	 
	 	 
	6597 Garrett Road	 
	Buford, Ga. 30518	 
	 	 

 

	Convertible Note Purchase Agreement	 
	eNow, Inc.	Signature Page	 

 

     

     

    

 

In
Witness Whereof, the parties have executed this Convertible Promissory Note Purchase
Agreement as of the date first written above.

 

	PURCHASER:	 
	 	 
	MORELOCK HOLDINGS	 
	 	 
	/s/ Ethan R. Garber	 
	By:	Ethan R. Garber	 
	Name: 	Ethan R. Garber	 
	Title:  	Manager	 
	 	 	 
	Address:	 
	 	 
	319 East Scott Ave, #2	 
	Knoxville, TN 37917	 
	 	 

 

	Convertible Note Purchase Agreement	 
	eNow, Inc.	Signature Page	 

 

     

     

    

 

In
Witness Whereof, the parties have executed this Convertible Promissory Note Purchase
Agreement as of the date first written above.

 

	PURCHASER:	 
	 	 
	 	 
	Jim Davis	 
	 	 
	Address:	 
	 	 
		 
		 
	 	 

 

	Convertible Note Purchase Agreement	 
	eNow, Inc.	Signature Page	 

 

     

     

    

 

In
Witness Whereof, the parties have executed this Convertible Promissory Note Purchase
Agreement as of the date first written above.

 

	PURCHASER:	 
	 	 
	/s/ Arthur J. Epstein 	 
	Arthur J.
    Epstein	 
	 	 
	Address:	 
	 	 
	 	 
	 	 

 

	Convertible Note Purchase Agreement	 
	eNow, Inc.	Signature Page	 

 

     

     

    

 

SCHEDULE OF PURCHASERS

 

As of

 

July ___, 2021

 

	Name and Address of Purchaser	 	Loan Amount	 	 	Date of 

Investment	 
	XL Hybrids, Inc.	 	$	3,000,000	 	 	 	      	 
	Ernest Abrahamson	 	$	300,000	 	 	 		 
	John Gibb	 	$	10,000	 	 	 	    	 
	Morelock Holdings, LLC	 	$	100,000	 	 	 		 
	Jim Davis	 	$	500,000	 	 	 		 
	Arthur Epstein	 	$	500,000	 	 	 		 
	TOTAL	 	$	4,410,000.00	 	 	 		 

 

	Convertible Note Purchase Agreement	 
	eNow, Inc.	Schedule of Purchasers	 

 

     

     

    

 

Exhibit
A

 

Form
of Convertible Promissory Note

 

 

 

 

 

 

 

 

	Convertible Note Purchase Agreement	 
	eNow, Inc.	Exhibit A	 

 

     

     

    

 

Series B

Note 1

 

THIS NOTE
AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED
EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION
THEREFROM. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE
OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

eNow, Inc.

 

SENIOR CONVERTIBLE PROMISSORY
NOTE

 

	Note Principal Amount:	$3,000,000	 
	Date of Note:	July _15, 2021	 

 

FOR VALUE RECEIVED, eNow,
Inc., a Delaware corporation (the “Company”) promises to pay to XL Hybrids, Inc. (“Investor”), or
its registered assigns, in lawful money of the United States of America the principal sum of $3,000,000, or such lesser amount as shall
equal the outstanding principal amount hereof, together with interest from the date of this Convertible Promissory Note (this “Note”)
on the unpaid principal balance at a rate equal to 8% per annum, computed on the basis of the actual number of days elapsed and a year
of 365 days. All unpaid principal, together with any then unpaid and accrued interest and other amounts payable hereunder, shall be due
and payable on the earlier of (i) December 31, 2022 (the “Maturity Date”), or (ii) when, upon the occurrence
and during the continuance of an Event of Default, such amounts are declared due and payable by Investor or made automatically due and
payable, in each case, in accordance with the terms hereof. This Note is one of the “Notes” issued pursuant to the Note Purchase
Agreement.

 

The following is a statement
of the rights of Investor and the conditions to which this Note is subject, and to which Investor, by the acceptance of this Note, agrees:

 

1.
Definitions. As used in this Note, the following capitalized terms have the following meanings:

 

“Applicable
Maturity Date” has the meaning set forth in Section 4(a)(ii).

 

“Call Right”
means the Call Right and the Right of First Refusal as described in that Letter Agreement by and between the Company and the Lead Investor
dated as of the Initial Closing Date (the “Side Letter”).

 

“Call Right Termination”
means the termination date of the Call Right, which shall be December 31, 2021, unless modified in accordance with the Side Letter.

 

“Capital Stock”
shall mean the capital stock of the Company.

 

     

     

    

 

“Change of Control”
shall mean (i) any “person” or “group” (within the meaning of Section 13(d) and 14(d) of the Securities Exchange
Act of 1934, as amended), becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934,
as amended), directly or indirectly, of more than 50% of the outstanding voting securities of the Company having the right to vote for
the election of members of the Board of Directors, (ii) any reorganization, merger or consolidation of the Company, other than a
transaction or series of related transactions in which the holders of the voting securities of the Company outstanding immediately prior
to such transaction or series of related transactions retain, immediately after such transaction or series of related transactions, at
least a majority of the total voting power represented by the outstanding voting securities of the Company or such other surviving or
resulting entity or (iii) a sale, lease or other disposition of all or substantially all of the assets of the Company.

 

“Existing Warrant”
means each of the warrants issued by the Company and existing as of the Initial Closing Date, which collectively may be exercised for
up to 5,146,458 shares of Common Stock of the Company, $0.00001 par value per share (“Common Stock”).

 

“Event of Default”
has the meaning given in Section 2 hereof.

 

“Fully Diluted Capitalization”
shall mean the total number of shares of outstanding Common Stock (assuming conversion of all securities convertible into Common Stock
and exercise of all outstanding options and warrants).

 

“Initial Closing Date”
shall have the meaning set forth in the Note Purchase Agreement.

 

“Investor”
shall mean the Person specified in the introductory paragraph of this Note or any Person who shall at the time be the registered holder
of this Note.

 

“Investors” shall mean the investors
who have purchased Notes.

 

“Lead Investor”
means XL Hybrids, Inc. a Delaware corporation.

 

“Majority in Interest
of Investors” shall mean Persons holding more than 50% of the aggregate outstanding principal amount of the Notes; provided,
a Majority in Interest of Investors shall include the Lead Investor.

 

“Note Purchase Agreement”
shall mean the Note Purchase Agreement (as amended, modified or supplemented), by and among the Company and the Investors (as defined
in the Note Purchase Agreement) party thereto.

 

“Notes” shall
mean the convertible promissory notes issued by the Company that are substantially identical to this Note in all material respects, provided
that the Notes may differ in the following respects: (i) the Date of Note, (ii) the Note Principal Amount, and (iii) the Investor.

 

“Obligations”
shall mean and include all loans, advances, debts, liabilities and obligations, howsoever arising, owed by the Company to Investor of
every kind and description, now existing or hereafter arising under or pursuant to the terms of this Note and the other Transaction Documents,
including, all interest, fees, charges, expenses, attorneys’ fees and costs and accountants’ fees and costs chargeable to
and payable by the Company hereunder and thereunder, in each case, whether direct or indirect, absolute or contingent, due or to become
due, and whether or not arising after the commencement of a proceeding under Title 11 of the United States Code (11 U. S. C. Section 101
et seq.), as amended from time to time (including post-petition interest) and whether or not allowed or allowable as a claim in
any such proceeding.

 

“Outstanding Balance”
is the Principal Balance and all accrued interest under this Note as of the applicable date of determination.

 

    -2-

     

    

 

“Person”
shall mean and include an individual, a partnership, a corporation (including a business trust), a joint stock company, a limited liability
company, an unincorporated association, a joint venture or other entity or a governmental authority.

 

“Principal Balance”
is the outstanding principal amount of an applicable Note.

 

“Securities Act”
shall mean the Securities Act of 1933, as amended.

 

The “Series B Price”
is equal to the quotient obtained by dividing (A) $17,000,000 by (B) the Series B Conversion Capitalization.

 

“Series B Conversion
Capitalization” means the Fully Diluted Capitalization of the Company as of the Applicable Maturity Date, after giving effect
to the exercise or expiration of any option, Existing Warrant, or Subordinate Convertible Note occurring on or prior to such Applicable
Maturity Date, and further including the shares reserved or authorized for issuance under the Company’s equity incentive plan or
any equity incentive plan, but excluding all other indebtedness which is converted into Series B Preferred Stock (including this Note
and the other Notes issued under the Note Purchase Agreement).

 

“Series B Preferred
Stock” means Capital Stock issued by the Company on the terms and conditions as set forth in the Memorandum of Terms attached
hereto as Attachment A.

 

“Subordinate Convertible
Note” means each Convertible Note issued by the Company prior to the Initial Closing Date.

 

The “Total Number of
Conversion Shares” is equal to the quotient obtained by dividing (A) the Outstanding Balance by (B) the Series B Price, rounded
down to the nearest whole share.

 

“Transaction Documents”
shall mean this Note, each of the other Notes and the Note Purchase Agreement.

 

2.
Payments

 

(a)
Interest. Accrued interest on this Note shall be payable at maturity.

 

(b)
Voluntary Prepayment. Subject to the prior approval of a Majority in Interest of Investors, the Company may prepay this
Note at any time, in whole or in part, without any premium or penalty, provided that (i) any prepayment of this Note may only be
made in connection with the prepayment of all Notes on a pro rata basis, based on the respective aggregate outstanding principal amounts
of each such Note and (ii) any such prepayment will be applied first to the payment of expenses due under this Note, second to interest
accrued on this Note and third, if the amount of prepayment exceeds the amount of all such expenses and accrued interest, to the payment
of principal of this Note.

 

3.
Events of Default. The occurrence of any of the following shall constitute an “Event of Default”
under this Note and the other Transaction Documents:

 

(a)
Failure to Pay. The Company shall fail to pay (i) when due any principal payment on the due date hereunder or (ii) any
interest payment or other payment required under the terms of this Note or any other Transaction Document on the date due and such payment
shall not have been made within five (5) Business Days of the Company’s receipt of written notice to the Company of such failure
to pay; or

 

    -3-

     

    

 

(b)
Voluntary Bankruptcy or Insolvency Proceedings. The Company shall (i) apply for or consent to the appointment of a
receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property, (ii) admit in writing its inability
to pay its debts generally as they mature, (iii) make a general assignment for the benefit of its or any of its creditors, (iv) be
dissolved or liquidated, (v) commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with
respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such
relief or to the appointment of or taking possession of its property by any official in an involuntary case or other proceeding commenced
against it, or (vi) take any action for the purpose of effecting any of the foregoing; or

 

(c)
Involuntary Bankruptcy or Insolvency Proceedings. Proceedings for the appointment of a receiver, trustee, liquidator or
custodian of the Company, or of all or a substantial part of the property thereof, or an involuntary case or other proceedings seeking
liquidation, reorganization or other relief with respect to the Company or the debts thereof under any bankruptcy, insolvency or other
similar law now or hereafter in effect shall be commenced and an order for relief entered or such proceeding shall not be dismissed or
discharged within 45 days of commencement.

 

4.
Rights of Investor upon Default. Upon the occurrence of any Event of Default described in Section 2(a)
and at any time thereafter during the continuance of such Event of Default, Investor may, with the written consent of a Majority in Interest
of Investors, by written notice to the Company, declare all outstanding Obligations payable by the Company hereunder to be immediately
due and payable without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived, anything
contained herein or in the other Transaction Documents to the contrary notwithstanding. Upon the occurrence of any Event of Default described
in Sections 3(b) and 3(c), immediately and without notice, all outstanding Obligations payable by the Company hereunder
shall automatically become immediately due and payable, without presentment, demand, protest or any other notice of any kind, all of which
are hereby expressly waived, anything contained herein or in the other Transaction Documents to the contrary notwithstanding. In addition
to the foregoing remedies, upon the occurrence and during the continuance of any Event of Default, Investor may, with the written consent
of a Majority in Interest of Investors, exercise any other right power or remedy granted to it by the Transaction Documents or otherwise
permitted to it by law, either by suit in equity or by action at law, or both.

 

5.
Conversion

 

(a)
Conversion on Applicable Maturity Date. In the event that (a) the Lead Investor has not exercised the Call Right on or prior
to the Call Right Termination, or (b) the Lead Investor has exercised the Call Right on or prior to the Call Right Termination, but the
Lead Investor and the Company have not, in good faith, executed a purchase agreement or consummated the transactions within the time period
contemplated by the Side Letter (as the case may be, such date shall be the “Applicable Maturity Date”), then effective
as of the Applicable Maturity Date but immediately after the exercise or termination of any options or Existing Warrants and conversion
of any Subordinate Convertible Notes occurring on or prior to such Applicable Maturity Date, the Note shall automatically convert into
the Total Number of Conversion Shares. The conversion contemplated hereby shall be subject to the payment or conversion of any remaining
obligations pursuant to the Subordinate Convertible Notes into Capital Stock which has a subordinate distribution and liquidation preference
to the Series B Preferred Stock.

 

    -4-

     

    

 

(i)
Conversion Procedure. The issuance of Series B Preferred Stock upon conversion of the Outstanding Balance pursuant to Section
5(a) shall be on the terms and conditions as set forth in the Memorandum of Terms attached hereto as Attachment A. Upon the
B Conversion, the Investor hereby agrees to execute and deliver to the Company all Transaction Documents related to such conversion; provided,
however, that such transaction documents are the same documents to be entered into with all other investors in connection with such
conversion; and provided further that the Transaction Documents will not in any way limit the contractual rights of the Investor
by virtue of the number of shares of Series B Preferred Stock to be held by the Investor upon conversion. Investor acknowledges that the
Transaction Documents will contain customary representations and warranties and transfer restrictions (including a 180-day lock-up agreement
in connection with an initial public offering).

 

(ii)
Surrender and Cancellation of Note. In connection with any automatic conversion described in this Section 5(a), The
Investor agrees to deliver the original of this Note (or a notice to the effect that the original Note has been lost, stolen or destroyed
and an agreement acceptable to the Company whereby the Investor agrees to indemnify the Company from any loss incurred by it in connection
with this Note) at the time of automatic conversion for cancellation; provided, however, that upon satisfaction of the conditions
set forth in this Section 5(a), this Note shall be deemed converted and of no further force and effect, whether or not it is delivered
for cancellation as set forth in this sentence.

 

(b)
Change of Control

 

(i)
Change of Control. If a Change of Control (including as a result of the exercise of the Call Right) occurs prior to any
of the automatic conversion events set forth in Section 5(a), the Company shall pay the Investor simultaneously with the closing
of such Change of Control, in complete satisfaction of this Note, an amount in cash equal to such Investor’s Percentage of the Change
of Control Consideration, where such “Investor’s Percentage” shall equal (A) the Principal Balance of this Note
divided by (B)(1) $17,000,000 plus (2) the aggregate Principal Balance of all Notes, and the “Change of Control Consideration”
shall mean the total consideration payable to the Company or the shareholders of the Company, as the case may be, in connection with the
Change of Control, prior to payment of all existing debt, transaction expenses, taxes and broker fees related to such Change of Control.
Such payment shall be made in-kind with the consideration received by the Company or its shareholders and at such time or times received
in connection with the Change of Control. To the extent practicable, the Company shall provide the Holder hereof at least five (5) days
prior written notice of the proposed consummation of the Change of Control, specifying the date on which it is anticipated that the Change
of Control will be consummated, the conversion price, the principal terms of the Change of Control and the aggregate proceeds to which
the Investor will be entitled as a result to the Change of Control (the “Sale Notice”).

 

(c)
Fractional Shares; Interest; Effect of Conversion. No fractional shares shall be issued upon conversion of this Note. In
lieu of the Company issuing any fractional shares to the Investor upon the conversion of this Note, the Company shall pay to Investor
an amount equal to the product obtained by multiplying the Series B Price by the fraction of a share not issued pursuant to the previous
sentence. Upon conversion of this Note in full and the payment of the amounts specified in this paragraph, Company shall be forever released
from all its obligations and liabilities under this Note and this Note shall be deemed of no further force or effect, whether or not the
original of this Note has been delivered to the Company for cancellation.

 

(d)
Notices of Record Date. In the event of:

 

(i)
Any taking by the Company of a record of the holders of any class of securities of Company for the purpose of determining the holders
thereof who are entitled to receive any dividend or other distribution or any right to subscribe for, purchase or otherwise acquire any
shares of stock of any class or any other securities or property, or to receive any other right; or

 

    -5-

     

    

 

(ii)
Any capital reorganization of the Company, any reclassification or recapitalization of the capital stock of Company or any transfer
of all or substantially all of the assets of Company to any other Person or any consolidation or merger involving Company; or

 

(iii)
Any voluntary or involuntary dissolution, liquidation or winding-up of the Company,

 

the Company will mail to holder
of this Note at least ten (10) days prior to the earliest date specified therein, a notice specifying (A) the date on which
any such record is to be taken for the purpose of such dividend, distribution or right and the amount and character of such dividend,
distribution or right; and (B) the date on which any such reorganization, reclassification, transfer, consolidation, merger, dissolution,
liquidation or winding-up is expected to become effective and the record date for determining stockholders entitled to vote thereon.

 

6.
Miscellaneous

 

(a)
Successors and Assigns; Transfer of this Note or Securities Issuable on Conversion Hereof.

 

(i)
Subject to the restrictions on transfer described in this Section 6(a), the rights and obligations of the Company and Investor
shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees of the parties.

 

(ii)
With respect to any offer, sale or other disposition of this Note or securities into which such Note may be converted, Investor
will give written notice to the Company prior thereto, describing briefly the manner thereof, together with a written opinion of Investor’s
counsel, or other evidence if reasonably satisfactory to the Company, to the effect that such offer, sale or other distribution may be
effected without registration or qualification (under any federal or state law then in effect). Upon receiving such written notice and
reasonably satisfactory opinion, if so requested, or other evidence, the Company, as promptly as practicable, shall notify Investor that
Investor may sell or otherwise dispose of this Note or such securities, all in accordance with the terms of the notice delivered to the
Company. If a determination has been made pursuant to this Section 6(a) that the opinion of counsel for Investor, or other evidence,
is not reasonably satisfactory to the Company, the Company shall so notify Investor promptly after such determination has been made. Each
Note thus transferred and each certificate representing the securities thus transferred shall bear a legend as to the applicable restrictions
on transferability in order to ensure compliance with the Securities Act, unless in the opinion of counsel for the Company such legend
is not required in order to ensure compliance with the Securities Act. The Company may issue stop transfer instructions to its transfer
agent in connection with such restrictions. Subject to the foregoing, transfers of this Note shall be registered upon registration books
maintained for such purpose by or on behalf of the Company as provided in the Note Purchase Agreement. Prior to presentation of this Note
for registration of transfer, the Company shall treat the registered holder hereof as the owner and holder of this Note for the purpose
of receiving all payments of principal and interest hereon and for all other purposes whatsoever, whether or not this Note shall be overdue
and the Company shall not be affected by notice to the contrary.

 

(iii)
Neither this Note nor any of the rights, interests or obligations hereunder may be assigned, by operation of law or otherwise,
in whole or in part, by the Company without the prior written consent of a Majority in Interest of Investors.

 

(b)
Waiver and Amendment. Any provision of this Note may be amended, waived or modified upon the written consent of the Company
and a Majority in Interest of Investors; provided, however, that no such amendment, waiver or consent shall reduce the principal
amount of this Note or the rate of interest of this Note, in either case without Investor’s written consent.

 

    -6-

     

    

 

(c)
Notices. All notices, requests, demands, consents, instructions or other communications required or permitted hereunder
shall be in writing and faxed, mailed or delivered to each party at the respective addresses of the parties as set forth in the Note Purchase
Agreement, or at such other address or facsimile number as the Company shall have furnished to Investor in writing. All such notices and
communications will be deemed effectively given the earlier of (i) when received, (ii) if sent by electronic mail, upon confirmation
of delivery when directed to the relevant email address, (iii) when delivered personally, (iv) one business day after being
delivered by facsimile (with receipt of appropriate confirmation), (v) one business day after being deposited with an overnight courier
service of recognized standing or (vi) four days after being deposited in the U.S. mail, first class with postage prepaid.

 

(d)
Pari Passu Notes. Investor acknowledges and agrees that the payment of all or any portion of the outstanding principal amount
of this Note and all interest hereon shall be pari passu in right of payment and in all other respects to the other Notes. In the event
Investor receives payments in excess of its pro rata share of the Company’s payments to the Investors of all of the Notes, then
Investor shall hold in trust all such excess payments for the benefit of the holders of the other Notes and shall pay such amounts held
in trust to such other holders upon demand by such holders.

 

(e)
Payment. Unless converted into the Company’s equity securities pursuant to the terms hereof, payment shall be made
in lawful tender of the United States.

 

(f)  
Usury. In the event any interest is paid on this Note that is deemed to be in excess of the then legal maximum rate, then
that portion of the interest payment representing an amount in excess of the then legal maximum rate shall be deemed a payment of principal
and applied against the principal of this Note.

 

(g)
Waivers. The Company hereby waives notice of default, presentment or demand for payment, protest or notice of nonpayment
or dishonor and all other notices or demands relative to this instrument.

 

(h)
Governing Law. This Note and all actions arising out of or in connection with this Note shall be governed by and construed
in accordance with the laws of the State of Delaware, without regard to the conflicts of law provisions of the State of Delaware, or of
any other state.

 

Protective Provisions. Section
6.1 of the Note Purchase Agreement shall be incorporated herein, mutatis mutandis.

 

(Signature Page Follows)

 

    -7-

     

    

 

Series B

Note 1

 

The Company has caused this Note to be issued as
of the date first written above.

 

	 	eNow, Inc.
	 	 	 
	 	By: 	/s/ Jeffrey C. Flath
	 	 	 
	 	 	Jeffrey C. Flath, President

 

Signature Page to eNow, Inc. Convertible Note

 

     

     

    

 

Series B

Note 1

 

	Agreed and Accepted:	 
	 	 	 
	XL Hybrids, Inc.	 
	 	 	 
	By:	/s/ Dimitri Kazarinoff	 
	Name:  	Dimitri Kazarinoff 	 
	Title:  	CEO	 
	 	 	 
	Address:	    	 
	 	145 Newton Street, Brighton, MA 02135 	 
	 	 	 
	 	 	 

 

Signature Page to eNow, Inc. Convertible Note

 

     

     

    

 

Series B

Note 1

 

Attachment A

 

MEMORANDUM OF TERMS
OF SERIES B PREFERRED STOCK

 

Set out below is
a summary of the principal terms of the Proposed Transaction:

 

	Type of Security:	Series B Preferred Stock (the “Series B Preferred Stock”), initially convertible on a 1:1 basis into shares of the Company’s Common Stock (“Common Stock”).  The Series Seed Preferred Stock and Series A Preferred Stock shall be referred to herein as the “Existing Preferred Stock”, and, together with the Series B Preferred Stock, the “Preferred Stock”.
	 	 
	Terms:	Except as it relates to liquidation preference, or as otherwise set forth herein, the Series B Preferred Stock will have all rights, preferences and privileges equivalent to those of the Series A Preferred Stock, including any class-specific approval or other rights.
	 	 
	ADDITIONAL TERMS OF PREFERRED STOCK
	 
	Liquidation Preference:	In the event of any liquidation or winding up of the Company, the holders of the Series B Preferred Stock shall be entitled to receive in preference to the holders of the Existing Preferred Stock and the Common Stock a per share amount equal to the Original Purchase Price plus any declared but unpaid dividends (the “Liquidation Preference”).  After the payment of the Liquidation Preference to the holders of the Preferred Stock, the remaining assets shall be distributed ratably to the holders of Series A Preferred Stock and Common Stock.
	 	 
	 	A merger, acquisition, sale of voting control or sale of substantially all of the assets of the Company in which the shareholders of the Company do not own a majority of the outstanding shares of the surviving corporation as more specifically defined in the Company’s current Restated Certificate of Incorporation as amended to date (the “Current Charter”) (such transaction, a “Deemed Liquidation Event”) shall be deemed to be a liquidation.  The holders of Preferred Stock shall be entitled to receive the greater of the amount such holders would receive as holders of Preferred Stock or had they converted to Common Stock in connection with any such Deemed Liquidation Event. 

 

     

     

    

 

	Conversion:	The holders of the Preferred Stock shall have the right to convert the Preferred Stock, at any time, into shares of Common Stock. The initial conversion rate of the Series B Preferred Stock shall be 1:1, and the conversion rate of the Existing Preferred Stock shall be in accordance with the Current Charter.
	 	 
	Mandatory Conversion:	All Series B Preferred Stock shall be automatically converted into Common Stock upon (i) the closing of an underwritten public offering of shares of Common Stock of the Company at a public offering price per share (prior to under-writing commissions and expenses) that values the Company at not less than 3x the Original Purchase Price in an offering of not less than $50 million, before deduction of underwriting discounts and registration expenses or (ii) approval of a Series B Majority (as defined below).
	 	 
	Anti-dilution Provisions:	The conversion price of the Preferred Stock will be subject to a broad-based weighted average adjustment to reduce dilution in the event that the Company issues additional equity securities (other than customary exclusions as set forth in the Current Charter) at a purchase price less than the applicable conversion price.  The conversion price will also be subject to proportional adjustment for stock splits, stock dividends, recapitalizations and the like.
	 	 
	Voting Rights:	The Preferred Stock will vote together with the Common Stock and not as a separate class except as specifically provided herein or as otherwise required by law.  Each share of Preferred Stock shall have a number of votes equal to the number of shares of Common Stock then issuable upon conversion of such share of Preferred Stock.  
	 	 
	Board Observer:	XL Hybrids, Inc. (“XL”) or its affiliates shall have the right to designate one board observer, who shall, subject to customary limitations, be entitled to attend all meetings of the Board of Directors (the “Board”) and any committee thereof. Otherwise, the Board shall remain as currently contemplated.
	 	 
	 	
    The Company will reimburse all
    XL for the costs and expenses associated with attending meetings of the Board and other matters undertaken by them on behalf of the Company.

    

 

    -2-

     

    

 

	Protective Provisions:	
    

    So long as the Series B Preferred
    Stock remains outstanding, the Company shall not, without the vote or written consent from holders of at least a majority of the Series
    B Preferred Stock, including XL (the “Series B Majority”), take any of the actions described requiring the approval
    of the Series A Preferred Director pursuant to the Current Charter, as well as (i) adversely and disproportionately alter or change
    the rights, preferences or privileges of the Series B Preferred Stock, (ii) amend or waive any provision of the Company’s Certificate
    of Incorporation or By-laws in a manner that would adversely and disproportionately alter or change the rights, preferences or privileges
    of the Series B Preferred Stock, or (iii) increase or decrease the authorized number of shares of Series B Preferred Stock. It is understood
    that the creation of a senior to or pari passu series or class of stock shall not, by itself, trigger clauses (i) or (ii); nor shall the
    proportional differences in the amounts of respective issue prices, liquidation preferences, and conversion prices arising out of differences
    in the original issue price vis-à-vis other series or class of stock.

     

    The Company’s charter
    will provide that, except as provided by law and indicated above, each series of Preferred Stock will vote together with all other series
    of Preferred Stock on all matters, and not as a separate series or class.

     

	Drag-Along:	In connection with any Deemed Liquidation Event, all of the Company’s stockholders shall vote for any such Deemed Liquidation Event approved by (i) the Board; (ii) the approval of the holders of a majority of the Common Stock; and (iii) the holders of a majority of the Preferred Stock, which shall include XL for so long as it holds Preferred Stock, voting together as a separate class.  The Company’s equity incentive plan will contain provisions binding all optionees to this provision. 
	 	 
	Investor Rights:	The Series B Preferred Stock shall be considered “Registrable Securities” and the holders of Series B Preferred Stock shall be entitled to all rights afforded the Company’s existing investors pursuant to the Company’s existing financing agreements, including preemptive rights, information rights, rights of first refusal, registration rights, transfer rights, approval rights and any other rights of the Existing Preferred Stock (other than rights specifically addressed in this Summary of Terms) on no less favorable terms.

 

 

-3-cik1851174-ex41_11.htm

 

Exhibit 4.1

WARRANT AGREEMENT

between

WORLD QUANTUM GROWTH ACQUISITION CORP.

and

CONTINENTAL STOCK TRANSFER & TRUST COMPANY

THIS WARRANT AGREEMENT (this “Agreement”), dated August 13, 2021, is by and between World Quantum Growth Acquisition Corp., a Cayman Islands exempted company (the “Company”), and Continental Stock Transfer & Trust Company, a New York corporation, as warrant agent (in such capacity, the “Warrant Agent”).

WHEREAS, it is proposed that the Company enter into that certain Private Placement Warrants Purchase Agreement, with World Quantum Growth Acquisition LLC, a Cayman Islands limited liability company (the “Sponsor”), pursuant to which the Sponsor will purchase an aggregate of 8,500,000 warrants (or up to 9,400,000 warrants if the underwriter in the Offering (defined below) exercises its Over-allotment Option (as defined below) in full) simultaneously with the closing of the Offering (and the closing of the Over-allotment Option, if applicable), bearing the legend set forth in Exhibit B hereto (the “Private Placement Warrants”) at a purchase price of $1.00 per Private Placement Warrant. Each Private Placement Warrant entitles the holder thereof to purchase one Ordinary Share (as defined below) at a price of $11.50 per share, subject to adjustment as described herein; and

WHEREAS, in order to finance the Company’s transaction costs in connection with an intended initial merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination, involving the Company and one or more businesses (a “Business Combination”), the Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and directors may, but are not obligated to, loan the Company funds as the Company may require, of which up to $1,500,000 of such loans may be convertible into up to an additional 1,500,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant; and

WHEREAS, the Company is engaged in an initial public offering (the “Offering”) of units of the Company’s equity securities, each such unit comprised of one Ordinary Share and one-half of one Public Warrant (as defined below) (the “Units”) and, in connection therewith, has determined to issue and deliver up to 11,500,000 redeemable warrants (including up to 1,500,000 redeemable warrants subject to the Over-allotment Option) to public investors in the Offering (the “Public Warrants” and, together with the Private Placement Warrants, the “Warrants”). Each whole Warrant entitles the holder thereof to purchase one Class A ordinary share of the Company, par value $0.0001 per share (“Ordinary Shares”), for $11.50 per share, subject to adjustment as described herein. Only whole Warrants are exercisable. A holder of the Public Warrants will not be able to exercise any fraction of a Warrant; and

 

 

WHEREAS, the Company has filed with the Securities and Exchange Commission (the “Commission”) a registration statement on Form S-1, File No. 333-255890 (the “Registration Statement”) and a prospectus (the “Prospectus”), for the registration, under the Securities Act of 1933, as amended (the “Securities Act”), of the Units, the Public Warrants and the Ordinary Shares included in the Units; and

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

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

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

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

1. Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company for the Warrants, and the Warrant Agent hereby accepts such appointment and agrees to perform the same in accordance with the terms and conditions set forth in this Agreement.

2. Warrants.

2.1. Form of Warrant. Each Warrant shall initially be issued in registered form only.

2.2. Effect of Countersignature. If a physical certificate is issued, unless and until countersigned by the Warrant Agent pursuant to this Agreement, a certificated Warrant shall be invalid and of no effect and may not be exercised by the holder thereof.

2.3. Registration.

2.3.1. Warrant Register. The Warrant Agent shall maintain books (the “Warrant Register”), for the registration of original issuance and the registration of transfer of the Warrants. Upon the initial issuance of the Warrants in book-entry form, the Warrant Agent shall issue and register the Warrants in the names of the respective holders thereof in such denominations and otherwise in accordance with instructions delivered to the Warrant Agent by the Company. Ownership of beneficial interests in the Public Warrants shall be shown on, and the transfer of such ownership shall be effected through, records maintained by institutions that have accounts with The Depository Trust Company (the “Depositary”) (such institution, with respect to a Warrant in its account, a “Participant”).

 

2

 

If the Depositary subsequently ceases to make its book-entry settlement system available for the Public Warrants, the Company may instruct the Warrant Agent regarding making other arrangements for book-entry settlement. In the event that the Public Warrants are not eligible for, or it is no longer necessary to have the Public Warrants available in, book-entry form, the Warrant Agent shall provide written instructions to the Depositary to deliver to the Warrant Agent for cancellation each book-entry Public Warrant, and the Company shall instruct the Warrant Agent to deliver to the Depositary definitive certificates in physical form evidencing such Warrants (“Definitive Warrant Certificates”) which shall be in the form annexed hereto as Exhibit A.

Physical certificates, if issued, shall be signed by, or bear the facsimile signature of, the Chairman of the Board, Chief Executive Officer, President, Chief Financial Officer, Chief Operating Officer, General Counsel, Secretary or other principal officer of the Company. In the event the person whose facsimile signature has been placed upon any Warrant shall have ceased to serve in the capacity in which such person signed the Warrant before such Warrant is issued, it may be issued with the same effect as if he or she had not ceased to be such at the date of issuance.

2.3.2. Registered Holder. Prior to due presentment for registration of transfer of any Warrant, the Company and the Warrant Agent may deem and treat the person in whose name such Warrant is registered in the Warrant Register (the “Registered Holder”) as the absolute owner of such Warrant and of each Warrant represented thereby, for the purpose of any exercise thereof, and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary.

2.4. Detachability of Warrants. The Ordinary Shares and Public Warrants comprising the Units shall begin separate trading on the 52nd day following the date of the Prospectus or, if such 52nd day is not on a day on which banks in New York City are generally open for normal business (a “Business Day”), then on the immediately succeeding Business Day following such date, or earlier (the “Detachment Date”) with the consent of Credit Suisse Securities (USA) LLC, but in no event shall the Ordinary Shares and the Public Warrants comprising the Units be separately traded until (A) the Company has filed a Current Report on Form 8-K with the Commission containing an audited balance sheet reflecting the receipt by the Company of the gross proceeds of the Offering, including the proceeds then received by the Company from the exercise by the underwriter of its right to purchase additional Units in the Offering (the “Over-allotment Option”), if the Over-allotment Option is exercised prior to the filing of the Current Report on Form 8-K, and (B) the Company issues a press release announcing when such separate trading shall begin.

2.5. Fractional Warrants. The Company shall not issue fractional Warrants other than as part of the Units, each of which is comprised of one Ordinary Share and one-half of one whole Public Warrant. If, upon the detachment of Public Warrants from the Units or otherwise, a holder of Warrants would be entitled to receive a fractional Warrant, the Company shall round down to the nearest whole number the number of Warrants to be issued to such holder.

2.6. Private Placement Warrants. The Private Placement Warrants shall be identical to the Public Warrants, except that so long as they are held by the Sponsor or any of its 

 

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Permitted Transferees (as defined below) such Private Placement Warrants: (i) may be exercised for cash or on a “cashless basis,” pursuant to subsection 3.3.1(c) hereof, (ii) including the Ordinary Shares issuable upon exercise of the Private Placement Warrants, may not be transferred, assigned or sold until thirty (30) days after the completion by the Company of an initial Business Combination, (iii) shall not be redeemable by the Company pursuant to Section 6.1 hereof and (iv) shall only be redeemable by the Company pursuant to Section 6.2 if the Reference Value (as defined below) is less than $18.00 per share (subject to adjustment in compliance with Section 4 hereof); provided, however, that in the case of (ii), the Private Placement Warrants and any Ordinary Shares issued upon exercise of the Private Placement Warrants may be transferred by the holders thereof:

(a) to the Company’s officers or directors, any affiliates or family members of any of the Company’s officers or directors, any members or partners of the Sponsor or their affiliates, any affiliates of the Sponsor, or any employees of such affiliates;

(b) in the case of an individual, by gift to a member of one of the individual’s immediate family or to a trust, the beneficiary of which is a member of the individual’s immediate family, an affiliate of such person or to a charitable organization;

(c) in the case of an individual, by virtue of laws of descent and distribution upon death of the individual;

(d) in the case of an individual, pursuant to a qualified domestic relations order;

(e) by private sales or transfers made in connection with the consummation of the Company’s Business Combination at prices no greater than the price at which the Private Placement Warrants or Ordinary Shares, as applicable, were originally purchased;

(f) by virtue of the Sponsor’s organizational documents upon liquidation or dissolution of the Sponsor;

(g) to the Company for no value for cancellation in connection with the consummation of our initial Business Combination;

(h) in the event of the Company’s liquidation prior to the completion of its initial Business Combination; or

(i) in the event of the Company’s completion of a liquidation, merger, share exchange or other similar transaction which results in all of the public shareholders having the right to exchange their Ordinary Shares for cash, securities or other property subsequent to the completion of the Company’s initial Business Combination; 

provided, however, that, in the case of clauses (a) through (f), these permitted transferees (the “Permitted Transferees”) must enter into a written agreement with the Company agreeing to be bound by the transfer restrictions in this Agreement.

 

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3. Terms and Exercise of Warrants.

3.1. Warrant Price. Each whole Warrant shall entitle the Registered Holder thereof, subject to the provisions of such Warrant and of this Agreement, to purchase from the Company the number of Ordinary Shares stated therein, at the price of $11.50 per share, subject to the adjustments provided in Section 4 hereof and in the last sentence of this Section 3.1. The term “Warrant Price” as used in this Agreement shall mean the price per share (including in cash or by payment of Warrants pursuant to a “cashless exercise,” to the extent permitted hereunder) described in the prior sentence at which Ordinary Shares may be purchased at the time a Warrant is exercised. The Company in its sole discretion may lower the Warrant Price at any time prior to the Expiration Date (as defined below) for a period of not less than fifteen Business Days (unless otherwise required by the Commission, any national securities exchange on which the Warrants are listed or applicable law); provided that the Company shall provide at least five days’ prior written notice of such reduction to Registered Holders of the Warrants; and provided further, that any such reduction shall be identical among all of the Warrants.

3.2. Duration of Warrants. A Warrant may be exercised only during the period (the “Exercise Period”) (A) commencing on the later of: (i) the date that is thirty (30) days after the first date on which the Company completes its initial Business Combination, and (ii) the date that is twelve (12) months from the date of the closing of the Offering, and (B) terminating at the earliest to occur of (x) 5:00 p.m., New York City time on the date that is five (5) years after the date on which the Company completes its initial Business Combination, (y) the liquidation of the Company in accordance with the Company’s amended and restated memorandum and articles of association, as amended from time to time, if the Company fails to complete a Business Combination, and (z) other than with respect to the Private Placement Warrants then held by the Sponsor or its Permitted Transferees with respect to a redemption pursuant to Section 6.1 hereof or, if the Reference Value equals or exceeds $18.00 per share (subject to adjustment in compliance with Section 4 hereof), Section 6.2 hereof, 5:00 p.m., New York City time on the Redemption Date (as defined below) as provided in Section 6.3 hereof (the “Expiration Date”); provided, however, that the exercise of any Warrant shall be subject to the satisfaction of any applicable conditions, as set forth in subsection 3.3.2 below, with respect to an effective registration statement or a valid exemption therefrom being available. Except with respect to the right to receive the Redemption Price (as defined below) (other than with respect to a Private Placement Warrant then held by the Sponsor or its Permitted Transferees in connection with a redemption pursuant to Section 6.1 hereof or, if the Reference Value equals or exceeds $18.00 per share (subject to adjustment in compliance with Section 4 hereof), Section 6.2 hereof) in the event of a redemption (as set forth in Section 6 hereof), each Warrant (other than a Private Placement Warrant then held by the Sponsor or its Permitted Transferees in the event of a redemption pursuant to Section 6.1 hereof or, if the Reference Value equals or exceeds $18.00 per share (subject to adjustment in compliance with Section 4 hereof), Section 6.2 hereof) not exercised on or before the Expiration Date shall become void, and all rights thereunder and all rights in respect thereof under this Agreement shall cease at 5:00 p.m. New York City time on the Expiration Date. The Company in its sole discretion may extend the duration of the Warrants by delaying the Expiration Date; provided that the Company shall provide at least twenty (20) days prior written notice of any such extension to Registered Holders of the Warrants and, provided further that any such extension shall be identical in duration among all the Warrants.

 

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3.3. Exercise of Warrants.

3.3.1. Payment. Subject to the provisions of the Warrant and this Agreement, a Warrant may be exercised by the Registered Holder thereof by delivering to the Warrant Agent at its corporate trust department (i) the Definitive Warrant Certificate evidencing the Warrants to be exercised, or, in the case of a Warrant represented by a book-entry, the Warrants to be exercised (the “Book-Entry Warrants”) on the records of the Depositary to an account of the Warrant Agent at the Depositary designated for such purposes in writing by the Warrant Agent to the Depositary from time to time, (ii) an election to purchase (“Election to Purchase”) any Ordinary Shares pursuant to the exercise of a Warrant, properly completed and executed by the Registered Holder on the reverse of the Definitive Warrant Certificate or, in the case of a Book-Entry Warrant, properly delivered by the Participant in accordance with the Depositary’s procedures, and (iii) the payment in full of the Warrant Price for each Ordinary Share as to which the Warrant is exercised and any and all applicable taxes due in connection with the exercise of the Warrant, the exchange of the Warrant for the Ordinary Shares and the issuance of such Ordinary Shares, as follows:

(a) in lawful money of the United States, in good certified check or good bank draft payable to the order of the Warrant Agent;

(b) [Reserved];

(c) with respect to any Private Placement Warrant, so long as such Warrant is held by the Sponsor or a Permitted Transferee, by surrendering the Warrants for that number of Ordinary Shares equal to (i) if in connection with a redemption of Private Placement Warrants pursuant to Section 6.2 hereof, as provided in Section 6.2 hereof with respect to a Make-Whole Exercise and (ii) in all other scenarios the quotient obtained by dividing (x) the product of the number of Ordinary Shares underlying the Warrants, multiplied by the excess of the “Sponsor Exercise Fair Market Value” (as defined in this subsection 3.3.1(c)) less the Warrant Price by (y) the Sponsor Exercise Fair Market Value. Solely for purposes of this subsection 3.3.1(c), the “Sponsor Exercise Fair Market Value” shall mean the average last reported sale price of the Ordinary Shares for the ten (10) trading days ending on the third (3rd) trading day prior to the date on which notice of exercise of the Private Placement Warrant is sent to the Warrant Agent;

(d) as provided in Section 6.2 hereof with respect to a Make-Whole Exercise; or

(e) as provided in Section 7.4 hereof.

3.3.2. Issuance of Ordinary Shares on Exercise. As soon as practicable after the exercise of any Warrant and the clearance of the funds in payment of the Warrant Price (if payment is pursuant to subsection 3.3.1(a)), the Company shall issue to the Registered Holder of such Warrant a book-entry position or certificate, as applicable, for the number of Ordinary Shares to which he, she or it is entitled, registered in such name or names as may be directed by him, her or it on the register of members of the Company, and if such Warrant shall not have been exercised in full, a new book-entry position or countersigned Warrant, as applicable, for the 

 

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number of shares as to which such Warrant shall not have been exercised. Notwithstanding the foregoing, the Company shall not be obligated to deliver any Ordinary Shares pursuant to the exercise of a Warrant and shall have no obligation to settle such Warrant exercise unless a registration statement under the Securities Act with respect to the Ordinary Shares underlying the Public Warrants is then effective and a prospectus relating thereto is current, subject to the Company’s satisfying its obligations under Section 7.4 or a valid exemption from registration is available. No Warrant shall be exercisable and the Company shall not be obligated to issue Ordinary Shares upon exercise of a Warrant unless the Ordinary Shares issuable upon such Warrant exercise have been registered, qualified or deemed to be exempt from registration or qualification under the securities laws of the state of residence of the Registered Holder of the Warrants. Subject to Section 4.6 of this Agreement, a Registered Holder of Warrants may exercise its Warrants only for a whole number of Ordinary Shares. The Company may require holders of Public Warrants to settle the Warrant on a “cashless basis” pursuant to Section 7.4. If, by reason of any exercise of Warrants on a “cashless basis”, the holder of any Warrant would be entitled, upon the exercise of such Warrant, to receive a fractional interest in an Ordinary Share, the Company shall round down to the nearest whole number, the number of Ordinary Shares to be issued to such holder.

3.3.3. Valid Issuance. All Ordinary Shares issued upon the proper exercise of a Warrant in conformity with this Agreement shall be validly issued, fully paid and non-assessable.

3.3.4. Date of Issuance. Each person in whose name any book-entry position or certificate, as applicable, for Ordinary Shares is issued and who is registered in the register of members of the Company shall for all purposes be deemed to have become the holder of record of such Ordinary Shares on the date on which the Warrant, or book-entry position representing such Warrant, was surrendered and payment of the Warrant Price was made, irrespective of the date of delivery of such certificate in the case of a certificated Warrant, except that, if the date of such surrender and payment is a date when the register of members of the Company or book-entry system of the Warrant Agent are closed, such person shall be deemed to have become the holder of such shares at the close of business on the next succeeding date on which the share transfer books or book-entry system are open.

3.3.5. Maximum Percentage. A holder of a Warrant may notify the Company in writing in the event it elects to be subject to the provisions contained in this subsection 3.3.5; however, no holder of a Warrant shall be subject to this subsection 3.3.5 unless he, she or it makes such election. If the election is made by a holder, the Warrant Agent shall not effect the exercise of the holder’s Warrant, and such holder shall not have the right to exercise such Warrant, to the extent that after giving effect to such exercise, such person (together with such person’s affiliates), to the Warrant Agent’s actual knowledge, would beneficially own in excess of 9.8% (or such other amount as the holder may specify) (the “Maximum Percentage”) of the Ordinary Shares outstanding immediately after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of Ordinary Shares beneficially owned by such person and its affiliates shall include the number of Ordinary Shares issuable upon exercise of the Warrant with respect to which the determination of such sentence is being made, but shall exclude Ordinary Shares that would be issuable upon (x) exercise of the remaining, unexercised portion of the Warrant beneficially owned by such person and its affiliates and (y) exercise or 

 

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conversion of the unexercised or unconverted portion of any other securities of the Company beneficially owned by such person and its affiliates (including, without limitation, any convertible notes or convertible preferred shares or warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein. Except as set forth in the preceding sentence, for purposes of this paragraph, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). For purposes of the Warrant, in determining the number of outstanding Ordinary Shares, the holder may rely on the number of outstanding Ordinary Shares as reflected in (1) the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other public filing with the Commission as the case may be, (2) a more recent public announcement by the Company or (3) any other notice by the Company or Continental Stock Transfer & Trust Company, as transfer agent (in such capacity, the “Transfer Agent”), setting forth the number of Ordinary Shares outstanding. For any reason at any time, upon the written request of the holder of the Warrant, the Company shall, within two (2) Business Days, confirm orally and in writing to such holder the number of Ordinary Shares then outstanding. In any case, the number of issued and outstanding Ordinary Shares shall be determined after giving effect to the conversion or exercise of equity securities of the Company by the holder and its affiliates since the date as of which such number of issued and outstanding Ordinary Shares was reported. By written notice to the Company, the holder of a Warrant may from time to time increase or decrease the Maximum Percentage applicable to such holder to any other percentage specified in such notice; provided, however, that any such increase shall not be effective until the sixty-first (61st) day after such notice is delivered to the Company.

4. Adjustments.

4.1. Share Capitalizations.

4.1.1. Sub-Divisions. If after the date hereof, and subject to the provisions of Section 4.6 below, the number of issued and outstanding Ordinary Shares is increased by a capitalization or share dividend of Ordinary Shares, or by a sub-division of Ordinary Shares or other similar event, then, on the effective date of such share capitalization, sub-division or similar event, the number of Ordinary Shares issuable on exercise of each Warrant shall be increased in proportion to such increase in the issued and outstanding Ordinary Shares. A rights offering made to all or substantially all holders of Ordinary Shares entitling holders to purchase Ordinary Shares at a price less than the “Historical Fair Market Value” (as defined below) shall be deemed a capitalization of a number of Ordinary Shares equal to the product of (i) the number of Ordinary Shares actually sold in such rights offering (or issuable under any other equity securities sold in such rights offering that are convertible into or exercisable for the Ordinary Shares) multiplied by (ii) one (1) minus the quotient of (x) the price per Ordinary Share paid in such rights offering divided by (y) the Historical Fair Market Value. For purposes of this subsection 4.1.1, (i) if the rights offering is for securities convertible into or exercisable for Ordinary Shares, in determining the price payable for Ordinary Shares, there shall be taken into account any consideration received for such rights, as well as any additional amount payable upon exercise or conversion and (ii) “Historical Fair Market Value” means the volume weighted average price of the Ordinary Shares during the ten (10) trading day period ending on the trading day prior to the first date on which the Ordinary Shares trade on the applicable 

 

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exchange or in the applicable market, regular way, without the right to receive such rights. No Ordinary Shares shall be issued at less than their par value.

4.1.2. Extraordinary Dividends. If the Company, at any time while the Warrants are outstanding and unexpired, pays to all or substantially all of the holders of the Ordinary Shares a dividend or makes a distribution in cash, securities or other assets on account of such Ordinary Shares (or other shares into which the Warrants are convertible), other than (a) as described in subsection 4.1.1 above, (b) Ordinary Cash Dividends (as defined below), (c) to satisfy the redemption rights of the holders of the Ordinary Shares in connection with a proposed initial Business Combination, (d) to satisfy the redemption rights of the holders of the Ordinary Shares in connection with a shareholder vote to amend the Company’s amended and restated memorandum and articles of association (i) that would modify the substance or timing of the Company’s obligation to provide holders of Ordinary Shares the right to have their shares redeemed in connection with the Company’s initial Business Combination or to redeem 100% of the Company’s public shares if it does not complete its initial Business Combination within the time period required by the Company’s Amended and Restated Memorandum and Articles of Association, as amended from time to time, or (ii) with respect to any other provision relating to the rights of holders of Ordinary Shares or (e) in connection with the redemption of public shares upon the failure of the Company to complete its initial Business Combination and any subsequent distribution of its assets upon its liquidation (any such non-excluded event being referred to herein as an “Extraordinary Dividend”), then the Warrant Price shall be decreased, effective immediately after the effective date of such Extraordinary Dividend, by the amount of cash and/or the fair market value (as determined by the Company’s board of directors (the “Board”), in good faith) of any securities or other assets paid on each Ordinary Share in respect of such Extraordinary Dividend. For purposes of this subsection 4.1.2, “Ordinary Cash Dividends” means any cash dividend or cash distribution which, when combined on a per share basis, with the per share amounts of all other cash dividends and cash distributions paid on the Ordinary Shares during the 365-day period ending on the date of declaration of such dividend or distribution to the extent it does not exceed $0.50 (which amount shall be adjusted to appropriately reflect any of the events referred to in other subsections of this Section 4 and excluding cash dividends or cash distributions that resulted in an adjustment to the Warrant Price or to the number of Ordinary Shares issuable on exercise of each Warrant).

4.2. Aggregation of Shares. If after the date hereof, and subject to the provisions of Section 4.6 hereof, the number of issued and outstanding Ordinary Shares is decreased by a consolidation, combination, reverse share split or reclassification of Ordinary Shares or other similar event, then, on the effective date of such consolidation, combination, reverse share split, reclassification or similar event, the number of Ordinary Shares issuable on exercise of each Warrant shall be decreased in proportion to such decrease in issued and outstanding Ordinary Shares.

4.3. Adjustments in Exercise Price. Whenever the number of Ordinary Shares purchasable upon the exercise of the Warrants is adjusted, as provided in subsection 4.1.1 or Section 4.2 above, the Warrant Price shall be adjusted (to the nearest cent) by multiplying such Warrant Price immediately prior to such adjustment by a fraction (x) the numerator of which shall be the number of Ordinary Shares purchasable upon the exercise of the Warrants 

 

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immediately prior to such adjustment, and (y) the denominator of which shall be the number of Ordinary Shares so purchasable immediately thereafter.

4.4. Raising of the Capital in Connection with the Initial Business Combination. If (x) the Company issues additional Ordinary Shares or equity-linked securities for capital raising purposes in connection with the closing of its initial Business Combination at an issue price or effective issue price of less than $9.20 per Ordinary Share (with such issue price or effective issue price to be determined in good faith by the Board and, in the case of any such issuance to the Sponsor or its affiliates, without taking into account any Class B ordinary shares, par value $0.0001 per share, of the Company held by the Sponsor or such affiliates, as applicable, prior to such issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of the Company’s initial Business Combination on the date of the completion of the Company’s initial Business Combination (net of redemptions), and (z) the volume-weighted average trading price of Ordinary Shares during the twenty (20) trading day period starting on the trading day prior to the day on which the Company consummates its initial Business Combination (such price, the “Market Value”) is below $9.20 per share, the Warrant Price shall be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, the $18.00 per share redemption trigger price described in Section 6.1 and Section 6.2 shall be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price and the $10.00 per share redemption trigger price described in Section 6.2 shall be adjusted (to the nearest cent) to be equal to the higher of the Market Value and the Newly Issued Price.

4.5. Replacement of Securities upon Reorganization, etc. In case of any reclassification or reorganization of the issued and outstanding Ordinary Shares (other than a change under Section 4.1 or Section 4.2 hereof or that solely affects the par value of such Ordinary Shares), or in the case of any merger or consolidation of the Company with or into another corporation (other than a consolidation or merger in which the Company is the continuing corporation and that does not result in any reclassification or reorganization of the issued and outstanding Ordinary Shares), or in the case of any sale or conveyance to another corporation or entity of the assets or other property of the Company as an entirety or substantially as an entirety in connection with which the Company is dissolved, the holders of the Warrants shall thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in the Warrants and in lieu of the Ordinary Shares of the Company immediately theretofore purchasable and receivable upon the exercise of the rights represented thereby, the kind and amount of shares or stock or other securities or property (including cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon a dissolution following any such sale or transfer, that the holder of the Warrants would have received if such holder had exercised his, her or its Warrant(s) immediately prior to such event (the “Alternative Issuance”); provided, however, that (i) if the holders of the Ordinary Shares were entitled to exercise a right of election as to the kind or amount of securities, cash or other assets receivable upon such consolidation or merger, then the kind and amount of securities, cash or other assets constituting the Alternative Issuance for which each Warrant shall become exercisable shall be deemed to be the weighted average of the kind and amount received per share by the holders of the Ordinary Shares in such consolidation or merger that affirmatively make such election, and (ii) if a tender, exchange or redemption offer shall have 

 

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been made to and accepted by the holders of the Ordinary Shares (other than a tender, exchange or redemption offer made by the Company in connection with redemption rights held by shareholders of the Company as provided for in the Company’s amended and restated memorandum and articles of association or as a result of the repurchase of Ordinary Shares by the Company if a proposed initial Business Combination is presented to the shareholders of the Company for approval) under circumstances in which, upon completion of such tender or exchange offer, the maker thereof, together with members of any group (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) of which such maker is a part, and together with any affiliate or associate of such maker (within the meaning of Rule 12b-2 under the Exchange Act) and any members of any such group of which any such affiliate or associate is a part, own beneficially (within the meaning of Rule 13d-3 under the Exchange Act) more than 50% of the issued and outstanding Ordinary Shares, the holder of a Warrant shall be entitled to receive as the Alternative Issuance, the highest amount of cash, securities or other property to which such holder would actually have been entitled as a shareholder if such Warrant holder had exercised the Warrant prior to the expiration of such tender or exchange offer, accepted such offer and all of the Ordinary Shares held by such holder had been purchased pursuant to such tender or exchange offer, subject to adjustments (from and after the consummation of such tender or exchange offer) as nearly equivalent as possible to the adjustments provided for in this Section 4; provided further that if less than 70% of the consideration receivable by the holders of the Ordinary Shares in the applicable event is payable in the form of shares in the successor entity that is listed for trading on a national securities exchange or is quoted in an established over-the-counter market, or is to be so listed for trading or quoted immediately following such event, and if the Registered Holder properly exercises the Warrant within thirty (30) days following the public disclosure of the consummation of such applicable event by the Company pursuant to a Current Report on Form 8-K filed with the Commission, the Warrant Price shall be reduced by an amount (in dollars) equal to the difference of (i) the Warrant Price in effect prior to such reduction minus (ii) (A) the Per Share Consideration (as defined below) (but in no event less than zero) minus (B) the Black-Scholes Warrant Value (as defined below). The “Black-Scholes Warrant Value” means the value of a Warrant immediately prior to the consummation of the applicable event based on the Black-Scholes Warrant Model for a Capped American Call on Bloomberg Financial Markets (assuming zero dividends) (“Bloomberg”). For purposes of calculating such amount, (i) Section 6 of this Agreement shall be taken into account, (ii) the price of each Ordinary Share shall be the volume weighted average price of the Ordinary Shares during the ten (10) trading day period ending on the trading day prior to the effective date of the applicable event, (iii) the assumed volatility shall be the 90 day volatility obtained from the HVT function on Bloomberg determined as of the trading day immediately prior to the day of the announcement of the applicable event and (iv) the assumed risk-free interest rate shall correspond to the U.S. Treasury rate for a period equal to the remaining term of the Warrant. “Per Share Consideration” means (i) if the consideration paid to holders of the Ordinary Shares consists exclusively of cash, the amount of such cash per Ordinary Share, and (ii) in all other cases, the volume weighted average price of the Ordinary Shares during the ten (10) trading day period ending on the trading day prior to the effective date of the applicable event. If any reclassification or reorganization also results in a change in Ordinary Shares covered by subsection 4.1.1, then such adjustment shall be made pursuant to subsection 4.1.1 or Sections 4.2, 4.3 and this Section 4.4. The provisions of this Section 4.4 shall similarly apply to successive reclassifications, reorganizations, mergers or consolidations, sales or other transfers. 

 

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In no event shall the Warrant Price be reduced to less than the par value per share issuable upon exercise of such Warrant.

4.6. Notices of Changes in Warrant. Upon every adjustment of the Warrant Price or the number of shares issuable upon exercise of a Warrant, the Company shall give written notice thereof to the Warrant Agent, which notice shall state the Warrant Price resulting from such adjustment and the increase or decrease, if any, in the number of shares purchasable at such price upon the exercise of a Warrant, setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based. Upon the occurrence of any event specified in Sections 4.1, 4.2, 4.3, 4.4 or 4.5, the Company shall give written notice of the occurrence of such event to each holder of a Warrant, at the last address set forth for such holder in the Warrant Register, of the record date or the effective date of the event. Failure to give such notice, or any defect therein, shall not affect the legality or validity of such event.

4.7. No Fractional Shares. Notwithstanding any provision contained in this Agreement to the contrary, the Company shall not issue fractional shares upon the exercise of Warrants. If, by reason of any adjustment made pursuant to this Section 4, the holder of any Warrant would be entitled, upon the exercise of such Warrant, to receive a fractional interest in a share, the Company shall, upon such exercise, round down to the nearest whole number the number of Ordinary Shares to be issued to such holder.

4.8. Form of Warrant. The form of Warrant need not be changed because of any adjustment pursuant to this Section 4, and Warrants issued after such adjustment may state the same Warrant Price and the same number of shares as is stated in the Warrants initially issued pursuant to this Agreement; provided, however, that the Company may at any time in its sole discretion make any change in the form of Warrant that the Company may deem appropriate and that does not affect the substance thereof, and any Warrant thereafter issued or countersigned, whether in exchange or substitution for an outstanding Warrant or otherwise, may be in the form as so changed.

5. Transfer and Exchange of Warrants.

5.1. Registration of Transfer. The Warrant Agent shall register the transfer, from time to time, of any outstanding Warrant upon the Warrant Register, upon surrender of such Warrant for transfer, properly endorsed with signatures properly guaranteed and accompanied by appropriate instructions for transfer. Upon any such transfer, a new Warrant representing an equal aggregate number of Warrants shall be issued and the old Warrant shall be cancelled by the Warrant Agent. In the case of certificated Warrants, the Warrants so cancelled shall be delivered by the Warrant Agent to the Company from time to time upon request.

5.2. Procedure for Surrender of Warrants. Warrants may be surrendered to the Warrant Agent, together with a written request for exchange or transfer, and thereupon the Warrant Agent shall issue in exchange therefor one or more new Warrants as requested by the Registered Holder of the Warrants so surrendered, representing an equal aggregate number of Warrants; provided, however, that except as otherwise provided herein or with respect to any Book-Entry Warrant, each Book-Entry Warrant may be transferred only in whole and only to the Depositary, to another nominee of the Depositary, to a successor depository, or to a nominee of a 

 

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successor depository; provided further, however that in the event that a Warrant surrendered for transfer bears a restrictive legend (as in the case of the Private Placement Warrants), the Warrant Agent shall not cancel such Warrant and issue new Warrants in exchange thereof until the Warrant Agent has received an opinion of counsel for the Company stating that such transfer may be made and indicating whether the new Warrants must also bear a restrictive legend.

5.3. Fractional Warrants. The Warrant Agent shall not be required to effect any registration of transfer or exchange which shall result in the issuance of a warrant certificate or book-entry position for a fraction of a warrant, except as part of the Units.

5.4. Service Charges. No service charge shall be made for any exchange or registration of transfer of Warrants.

5.5. Warrant Execution and Countersignature. The Warrant Agent is hereby authorized to countersign and to deliver, in accordance with the terms of this Agreement, the Warrants required to be issued pursuant to the provisions of this Section 5, and the Company, whenever required by the Warrant Agent, shall supply the Warrant Agent with Warrants duly executed on behalf of the Company for such purpose.

5.6. Transfer of Warrants. Prior to the Detachment Date, the Public Warrants may be transferred or exchanged only together with the Unit in which such Warrant is included, and only for the purpose of effecting, or in conjunction with, a transfer or exchange of such Unit. Furthermore, each transfer of a Unit on the register relating to such Units shall operate also to transfer the Warrants included in such Unit. Notwithstanding the foregoing, the provisions of this Section 5.6 shall have no effect on any transfer of Warrants on and after the Detachment Date.

6. Redemption.

6.1. Redemption of Warrants for Cash. Subject to Section 6.5 hereof, not less than all of the outstanding Warrants may be redeemed, at the option of the Company, at any time during the Exercise Period, at the office of the Warrant Agent, upon notice to the Registered Holders of the Warrants, as described in Section 6.3 below, at a Redemption Price of $0.01 per Warrant, provided that (a) the Reference Value equals or exceeds $18.00 per share (subject to adjustment in compliance with Section 4 hereof) and (b) there is an effective registration statement covering the issuance of the Ordinary Shares issuable upon exercise of the Warrants, and a current prospectus relating thereto, available throughout the 30-day Redemption Period (as defined in Section 6.3 below).

6.2. Redemption of Warrants for Ordinary Shares. Subject to Section 6.5 hereof, not less than all of the outstanding Warrants may be redeemed, at the option of the Company, at any time during the Exercise Period, at the office of the Warrant Agent, upon notice to the Registered Holders of the Warrants, as described in Section 6.3 below, at a Redemption Price of $0.10 per Warrant, provided that (i) the Reference Value equals or exceeds $10.00 per share (subject to adjustment in compliance with Section 4 hereof) and (ii) if the Reference Value is less than $18.00 per share (subject to adjustment in compliance with Section 4 hereof), the Private Placement Warrants are also concurrently called for redemption on the same terms as the outstanding Public Warrants. During the 30-day Redemption Period in connection with a 

 

13

 

redemption pursuant to this Section 6.2, Registered Holders of the Warrants may elect to exercise their Warrants on a “cashless basis” pursuant to subsection 3.3.1 and receive a number of Ordinary Shares determined by reference to the table below, based on the Redemption Date (calculated for purposes of the table as the period to expiration of the Warrants) and the “Redemption Fair Market Value” (as such term is defined in this Section 6.2) (a “Make-Whole Exercise”). Solely for purposes of this Section 6.2, the “Redemption Fair Market Value” shall mean the volume weighted average price of the Ordinary Shares for the ten (10) trading days immediately following the date on which notice of redemption pursuant to this Section 6.2 is sent to the Registered Holders. In connection with any redemption pursuant to this Section 6.2, the Company shall provide the Registered Holders with the Redemption Fair Market Value no later than one (1) Business Day after the ten (10) trading day period described above ends.

 

	
 
	
Redemption Fair Market Value of Ordinary Shares (period to expiration of warrants)

	
Redemption Date
	
< 10.00
	
11.00
	
12.00
	
13.00
	
14.00
	
15.00
	
16.00
	
17.00
	
> 18.00

	
60 months
	
0.261
	
0.281
	
0.297
	
0.311
	
0.324
	
0.337
	
0.348
	
0.358
	
0.361

	
57 months
	
0.257
	
0.277
	
0.294
	
0.310
	
0.324
	
0.337
	
0.348
	
0.358
	
0.361

	
54 months
	
0.252
	
0.272
	
0.291
	
0.307
	
0.322
	
0.335
	
0.347
	
0.357
	
0.361

	
51 months
	
0.246
	
0.268
	
0.287
	
0.304
	
0.320
	
0.333
	
0.346
	
0.357
	
0.361

	
48 months
	
0.241
	
0.263
	
0.283
	
0.301
	
0.317
	
0.332
	
0.344
	
0.356
	
0.361

	
45 months
	
0.235
	
0.258
	
0.279
	
0.298
	
0.315
	
0.330
	
0.343
	
0.356
	
0.361

	
42 months
	
0.228
	
0.252
	
0.274
	
0.294
	
0.312
	
0.328
	
0.342
	
0.355
	
0.361

	
39 months
	
0.221
	
0.246
	
0.269
	
0.290
	
0.309
	
0.325
	
0.340
	
0.354
	
0.361

	
36 months
	
0.213
	
0.239
	
0.263
	
0.285
	
0.305
	
0.323
	
0.339
	
0.353
	
0.361

	
33 months
	
0.205
	
0.232
	
0.257
	
0.280
	
0.301
	
0.320
	
0.337
	
0.352
	
0.361

	
30 months
	
0.196
	
0.224
	
0.250
	
0.274
	
0.297
	
0.316
	
0.335
	
0.351
	
0.361

	
27 months
	
0.185
	
0.214
	
0.242
	
0.268
	
0.291
	
0.313
	
0.332
	
0.350
	
0.361

	
24 months
	
0.173
	
0.204
	
0.233
	
0.260
	
0.285
	
0.308
	
0.329
	
0.348
	
0.361

	
21 months
	
0.161
	
0.193
	
0.223
	
0.252
	
0.279
	
0.304
	
0.326
	
0.347
	
0.361

	
18 months
	
0.146
	
0.179
	
0.211
	
0.242
	
0.271
	
0.298
	
0.322
	
0.345
	
0.361

	
15 months
	
0.130
	
0.164
	
0.197
	
0.230
	
0.262
	
0.291
	
0.317
	
0.342
	
0.361

	
12 months
	
0.111
	
0.146
	
0.181
	
0.216
	
0.250
	
0.282
	
0.312
	
0.339
	
0.361

	
9 months
	
0.090
	
0.125
	
0.162
	
0.199
	
0.237
	
0.272
	
0.305
	
0.336
	
0.361

	
6 months
	
0.065
	
0.099
	
0.137
	
0.178
	
0.219
	
0.259
	
0.296
	
0.331
	
0.361

	
3 months
	
0.034
	
0.065
	
0.104
	
0.150
	
0.197
	
0.243
	
0.286
	
0.326
	
0.361

	
0 months
	
—
	
—
	
0.042
	
0.115
	
0.179
	
0.233
	
0.281
	
0.323
	
0.361

 

The exact Redemption Fair Market Value and Redemption Date may not be set forth in the table above, in which case, if the Redemption Fair Market Value is between two values in the table or the Redemption Date is between two redemption dates in the table, the number of Ordinary Shares to be issued for each Warrant exercised in a Make-Whole Exercise shall be determined by a straight-line interpolation between the number of shares set forth for the higher and lower Redemption Fair Market Values and the earlier and later redemption dates, as applicable, based on a 365- or 366-day year, as applicable.

The share prices set forth in the column headings of the table above shall be adjusted as of any date on which the number of shares issuable upon exercise of a Warrant or the Exercise Price is adjusted pursuant to Section 4 hereof. If the number of shares issuable upon exercise of a 

 

14

 

Warrant is adjusted pursuant to Section 4 hereof, the adjusted share prices in the column headings shall equal the share prices immediately prior to such adjustment, multiplied by a fraction, the numerator of which is the number of shares deliverable upon exercise of a Warrant immediately prior to such adjustment and the denominator of which is the number of shares deliverable upon exercise of a Warrant as so adjusted. The number of shares in the table above shall be adjusted in the same manner and at the same time as the number of shares issuable upon exercise of a Warrant. If the Exercise Price of a warrant is adjusted, (a) in the case of an adjustment pursuant to Section 4.4 hereof, the adjusted share prices in the column headings shall equal the share prices immediately prior to such adjustment multiplied by a fraction, the numerator of which is the higher of the Market Value and the Newly Issued Price and the denominator of which is $10.00 and (b) in the case of an adjustment pursuant to Section 4.1.2 hereof, the adjusted share prices in the column headings shall equal the share prices immediately prior to such adjustment less the decrease in the Exercise Price pursuant to such Exercise Price adjustment. In no event shall the number of shares issued in connection with a Make-Whole Exercise exceed 0.361 Ordinary Shares per Warrant (subject to adjustment).

6.3. Date Fixed for, and Notice of, Redemption; Redemption Price; Reference Value. In the event that the Company elects to redeem the Warrants pursuant to Sections 6.1 or 6.2, the Company shall fix a date for the redemption (the “Redemption Date”). Notice of redemption shall be mailed by first class mail, postage prepaid, by the Company not less than thirty (30) days prior to the Redemption Date (the “30-day Redemption Period”) to the Registered Holders of the Warrants to be redeemed at their last addresses as they shall appear on the registration books. Any notice mailed in the manner herein provided shall be conclusively presumed to have been duly given whether or not the Registered Holder received such notice. As used in this Agreement, (a) “Redemption Price” shall mean the price per Warrant at which any Warrants are redeemed pursuant to Sections 6.1 or 6.2 and (b) “Reference Value” shall mean the last reported sales price of the Ordinary Shares for any twenty (20) trading days within the thirty (30) trading-day period ending on the third trading day prior to the date on which notice of the redemption is given.

6.4. Exercise After Notice of Redemption. The Warrants may be exercised, for cash (or, if in connection with a redemption pursuant to Section 6.2 of this Agreement, on a “cashless basis” in accordance with such Section 6.2) at any time after notice of redemption shall have been given by the Company pursuant to Section 6.3 hereof and prior to the Redemption Date. On and after the Redemption Date, the record holder of the Warrants shall have no further rights except to receive, upon surrender of the Warrants, the Redemption Price.

6.5. Exclusion of Private Placement Warrants. The Company agrees that (a) the redemption rights provided in Section 6.1 hereof shall not apply to the Private Placement Warrants if at the time of the redemption such Private Placement Warrants continue to be held by the Sponsor or its Permitted Transferees and (b) if the Reference Value equals or exceeds $18.00 per share (subject to adjustment in compliance with Section 4 hereof), the redemption rights provided in Section 6.2 hereof shall not apply to the Private Placement Warrants if at the time of the redemption such Private Placement Warrants continue to be held by the Sponsor or its Permitted Transferees. However, once such Private Placement Warrants are transferred (other than to Permitted Transferees in accordance with Section 2.6 hereof), the Company may redeem the Private Placement Warrants pursuant to Section 6.1 or 6.2 hereof, provided that the criteria 

 

15

 

for redemption are met, including the opportunity of the holder of such Private Placement Warrants to exercise the Private Placement Warrants prior to redemption pursuant to Section 6.4 hereof. Private Placement Warrants that are transferred to persons other than Permitted Transferees shall upon such transfer cease to be Private Placement Warrants and shall become Public Warrants under this Agreement, including for purposes of Section 9.8 hereof.

7. Other Provisions Relating to Rights of Holders of Warrants.

7.1. No Rights as Shareholder. A Warrant does not entitle the Registered Holder thereof to any of the rights of a shareholder of the Company, including, without limitation, the right to receive dividends, or other distributions, exercise any preemptive rights to vote or to consent or to receive notice as shareholders in respect of the meetings of shareholders or the election of directors of the Company or any other matter.

7.2. Lost, Stolen, Mutilated, or Destroyed Warrants. If any Warrant is lost, stolen, mutilated, or destroyed, the Company and the Warrant Agent may on such terms as to indemnity or otherwise as they may in their discretion impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination, tenor, and date as the Warrant so lost, stolen, mutilated, or destroyed. Any such new Warrant shall constitute a substitute contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated, or destroyed Warrant shall be at any time enforceable by anyone.

7.3. Reservation of Ordinary Shares. The Company shall at all times reserve and keep available a number of its authorized but unissued Ordinary Shares that shall be sufficient to permit the exercise in full of all outstanding Warrants issued pursuant to this Agreement.

7.4. Registration of Ordinary Shares; Cashless Exercise at Company’s Option.

7.4.1. Registration of the Ordinary Shares. The Company agrees that as soon as practicable, but in no event later than twenty (20) Business Days after the closing of its initial Business Combination, it shall use its commercially reasonable efforts to file with the Commission a registration statement for the registration, under the Securities Act, of the Ordinary Shares issuable upon exercise of the Warrants. If the Warrants are exercisable for a security other than the Ordinary Shares pursuant to this Agreement, the Warrants may be exercised for such security. At such time as the Warrants become exercisable for a security other than the Ordinary Shares, the Company (or any successor company) will use its commercially reasonable efforts to register under the Securities Act the security issuable upon the exercise of the warrants within twenty (20) business days of the closing of an initial Business Combination. The Company shall use its commercially reasonable efforts to cause the same to become effective within sixty (60) Business Days following the closing of its initial Business Combination and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration or redemption of the Warrants in accordance with the provisions of this Agreement. If any such registration statement has not been declared effective by the sixtieth (60th) Business Day following the closing of the Business Combination, holders of the Warrants shall have the right, during the period beginning on the sixty-first (61st) Business Day after the closing of the Business Combination and ending upon such registration statement being declared effective by the Commission, and during any other period when the 

 

16

 

Company shall fail to have maintained an effective registration statement covering the issuance of the Ordinary Shares issuable upon exercise of the Warrants, to exercise such Warrants on a “cashless basis,” by exchanging the Warrants (in accordance with Section 3(a)(9) of the Securities Act or another exemption) for that number of Ordinary Shares equal to the lesser of (A) the quotient obtained by dividing (x) the product of the number of Ordinary Shares underlying the Warrants, multiplied by the excess of the “Fair Market Value” (as defined below) less the Warrant Price by (y) the Fair Market Value and (B) 0.361 Ordinary Shares per Warrant. Solely for purposes of this subsection 7.4.1, “Fair Market Value” shall mean the volume-weighted average price of the Ordinary Shares during the ten (10) trading day period ending on the trading day prior to the date that notice of exercise is received by the Warrant Agent from the holder of such Warrants or its securities broker or intermediary. The date that notice of “cashless exercise” is received by the Warrant Agent shall be conclusively determined by the Warrant Agent. In connection with the “cashless exercise” of a Public Warrant, the Company shall, upon request, provide the Warrant Agent with an opinion of counsel for the Company (which shall be an outside law firm with securities law experience) stating that (i) the exercise of the Warrants on a “cashless basis” in accordance with this subsection 7.4.1 is not required to be registered under the Securities Act and (ii) the Ordinary Shares issued upon such exercise shall be freely tradable under United States federal securities laws by anyone who is not an affiliate (as such term is defined in Rule 144 under the Securities Act) of the Company and, accordingly, shall not be required to bear a restrictive legend. Except as provided in subsection 7.4.2, for the avoidance of doubt, unless and until all of the Warrants have been exercised or have expired, the Company shall continue to be obligated to comply with its registration obligations under the first three sentences of this subsection 7.4.1.

7.4.2. Cashless Exercise at Company’s Option. If the Ordinary Shares are at the time of any exercise of a Public Warrant not listed on a national securities exchange such that they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, (i) require holders of Public Warrants who exercise Public Warrants to exercise such Public Warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act as described in subsection 7.4.1 and (ii) in the event the Company so elects, the Company shall (x) not be required to file or maintain in effect a registration statement for the registration, under the Securities Act, of the Ordinary Shares issuable upon exercise of the Warrants, notwithstanding anything in this Agreement to the contrary, and (y) use its commercially reasonable efforts to register or qualify for sale the Ordinary Shares issuable upon exercise of the Public Warrant under applicable blue sky laws to the extent an exemption is not available.

8. Concerning the Warrant Agent and Other Matters.

8.1. Payment of Taxes. The Company shall from time to time promptly pay all taxes and charges that may be imposed upon the Company or the Warrant Agent in respect of the issuance or delivery of Ordinary Shares upon the exercise of the Warrants, but the Company shall not be obligated to pay any transfer taxes in respect of the Warrants or such shares.

8.2. Resignation, Consolidation, or Merger of Warrant Agent.

 

17

 

8.2.1. Appointment of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its duties and be discharged from all further duties and liabilities hereunder after giving sixty (60) days’ notice in writing to the Company. If the office of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise, the Company shall appoint in writing a successor Warrant Agent in place of the Warrant Agent. If the Company shall fail to make such appointment within a period of thirty (30) days after it has been notified in writing of such resignation or incapacity by the Warrant Agent or by the holder of a Warrant (who shall, with such notice, submit his, her or its Warrant for inspection by the Company), then the holder of any Warrant may apply to the Supreme Court of the State of New York for the County of New York for the appointment of a successor Warrant Agent at the Company’s cost. Any successor Warrant Agent, whether appointed by the Company or by such court, shall be a corporation or other entity organized and existing under the laws of the State of New York, in good standing and having its principal office in the United States of America, and authorized under such laws to exercise corporate trust powers and subject to supervision or examination by federal or state authority. After appointment, any successor Warrant Agent shall be vested with all the authority, powers, rights, immunities, duties, and obligations of its predecessor Warrant Agent with like effect as if originally named as Warrant Agent hereunder, without any further act or deed; but if for any reason it becomes necessary or appropriate, the predecessor Warrant Agent shall execute and deliver, at the expense of the Company, an instrument transferring to such successor Warrant Agent all the authority, powers, and rights of such predecessor Warrant Agent hereunder; and upon request of any successor Warrant Agent the Company shall make, execute, acknowledge, and deliver any and all instruments in writing for more fully and effectually vesting in and confirming to such successor Warrant Agent all such authority, powers, rights, immunities, duties, and obligations.

8.2.2. Notice of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company shall give notice thereof to the predecessor Warrant Agent and the Transfer Agent for the Ordinary Shares not later than the effective date of any such appointment.

8.2.3. Merger or Consolidation of Warrant Agent. Any entity into which the Warrant Agent may be merged or with which it may be consolidated or any entity resulting from any merger or consolidation to which the Warrant Agent shall be a party shall be the successor Warrant Agent under this Agreement without any further act.

8.3. Fees and Expenses of Warrant Agent.

8.3.1. Remuneration. The Company agrees to pay the Warrant Agent reasonable remuneration for its services as such Warrant Agent hereunder and shall, pursuant to its obligations under this Agreement, reimburse the Warrant Agent upon demand for all expenditures that the Warrant Agent may reasonably incur in the execution of its duties hereunder.

8.3.2. Further Assurances. The Company agrees to perform, execute, acknowledge, and deliver or cause to be performed, executed, acknowledged, and delivered all such further and other acts, instruments, and assurances as may reasonably be required by the Warrant Agent for the carrying out or performing of the provisions of this Agreement.

 

18

 

8.4. Liability of Warrant Agent.

8.4.1. Reliance on Company Statement. Whenever in the performance of its duties under this Agreement, the Warrant Agent shall deem it necessary or desirable that any fact or matter be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a statement signed by the Chief Executive Officer, the President, the Chief Financial Officer, Chief Operating Officer, the General Counsel, the Secretary or the Chairman of the Board of the Company and delivered to the Warrant Agent. The Warrant Agent may rely upon such statement for any action taken or suffered in good faith by it pursuant to the provisions of this Agreement.

8.4.2. Indemnity. The Warrant Agent shall be liable hereunder only for its own gross negligence, willful misconduct, fraud or bad faith. The Company agrees to indemnify the Warrant Agent and save it harmless against any and all liabilities, including judgments, out-of-pocket costs and reasonable outside counsel fees, for anything done or omitted by the Warrant Agent in the execution of this Agreement, except as a result of the Warrant Agent’s gross negligence, willful misconduct, fraud or bad faith.

8.4.3. Exclusions. The Warrant Agent shall have no responsibility with respect to the validity of this Agreement or with respect to the validity or execution of any Warrant (except its countersignature thereof). The Warrant Agent shall not be responsible for any breach by the Company of any covenant or condition contained in this Agreement or in any Warrant. The Warrant Agent shall not be responsible to make any adjustments required under the provisions of Section 4 hereof or responsible for the manner, method, or amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment; nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any Ordinary Shares to be issued pursuant to this Agreement or any Warrant or as to whether any Ordinary Shares shall, when issued, be valid and fully paid and non-assessable.

8.5. Acceptance of Agency. The Warrant Agent hereby accepts the agency established by this Agreement and agrees to perform the same upon the terms and conditions herein set forth and among other things, shall account promptly to the Company with respect to Warrants exercised and concurrently account for, and pay to the Company, all monies received by the Warrant Agent for the purchase of Ordinary Shares through the exercise of the Warrants.

8.6. Waiver. The Warrant Agent has no right of set-off or any other right, title, interest or claim of any kind (“Claim”) in, or to any distribution of, the Trust Account (as defined in that certain Investment Management Trust Agreement, dated as of the date hereof, by and between the Company and Continental Stock Transfer & Trust Company as trustee thereunder) and hereby agrees not to seek recourse, reimbursement, payment or satisfaction for any Claim against the Trust Account for any reason whatsoever. The Warrant Agent hereby waives any and all Claims against the Trust Account and any and all rights to seek access to the Trust Account.

 

19

 

9. Miscellaneous Provisions.

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

9.2. Notices. Any notice, statement or demand authorized by this Agreement to be given or made by the Warrant Agent or by the holder of any Warrant to or on the Company shall be sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail or private courier service within five (5) days after deposit of such notice, postage prepaid, addressed (until another address is filed in writing by the Company with the Warrant Agent), as follows:

World Quantum Growth Acquisition Corp.
PO Box 309, Ugland House
Grand Cayman KY1-1104
Cayman Islands
Attention: Chief Executive Officer

with a copy to:

Kirkland & Ellis International LLP
30 St Mary Axe
London EC3A 8AF
United Kingdom
Attention: Cedric Van den Borren

Any notice, statement or demand authorized by this Agreement to be given or made by the holder of any Warrant or by the Company to or on the Warrant Agent shall be sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail or private courier service within five (5) days after deposit of such notice, postage prepaid, addressed (until another address is filed in writing by the Warrant Agent with the Company), as follows:

Continental Stock Transfer & Trust Company 
One State Street, 30th Floor 
New York, NY 10004 
Attention: Compliance Department

9.3. Applicable Law and Exclusive Forum. The validity, interpretation, and performance of this Agreement and of the Warrants shall be governed in all respects by the laws of the State of New York. Subject to applicable law, the Company hereby agrees that any action, proceeding or claim against it arising out of or relating in any way to this Agreement shall be brought and enforced in the courts of the State of New York or the United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive forum for any such action, proceeding or claim. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Notwithstanding the foregoing, the provisions of this paragraph will not apply to suits brought to enforce any liability or duty created by the Exchange Act or any other 

 

20

 

claim for which the federal district courts of the United States of America are the sole and exclusive forum.

Any person or entity purchasing or otherwise acquiring any interest in the Warrants shall be deemed to have notice of and to have consented to the forum provisions in this Section 9.3. If any action, the subject matter of which is within the scope the forum provisions above, is filed in a court other than a court located within the State of New York or the United States District Court for the Southern District of New York (a “foreign action”) in the name of any warrant holder, such warrant holder shall be deemed to have consented to: (x) the personal jurisdiction of the state and federal courts located within the State of New York or the United States District Court for the Southern District of New York in connection with any action brought in any such court to enforce the forum provisions (an “enforcement action”), and (y) having service of process made upon such warrant holder in any such enforcement action by service upon such warrant holder’s counsel in the foreign action as agent for such warrant holder.

9.4. Persons Having Rights under this Agreement. Nothing in this Agreement shall be construed to confer upon, or give to, any person, corporation or other entity other than the parties hereto and the Registered Holders of the Warrants any right, remedy, or claim under or by reason of this Agreement or of any covenant, condition, stipulation, promise, or agreement hereof. All covenants, conditions, stipulations, promises, and agreements contained in this Agreement shall be for the sole and exclusive benefit of the parties hereto and their successors and assigns and of the Registered Holders of the Warrants.

9.5. Examination of the Warrant Agreement. A copy of this Agreement shall be available at all reasonable times at the office of the Warrant Agent in the United States of America, for inspection by the Registered Holder of any Warrant. The Warrant Agent may require any such holder to submit such holder’s Warrant for inspection by the Warrant Agent.

9.6. Counterparts. This Agreement may be executed in any number of original or facsimile counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

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

9.8. Amendments. This Agreement may be amended by the parties hereto without the consent of any Registered Holder for the purpose of (i) curing any ambiguity or to correct any mistake, including to conform the provisions hereof to the description of the terms of the Warrants and this Agreement set forth in the Prospectus, or defective provision contained herein, (ii) amending the definition of “Ordinary Cash Dividend” as contemplated by and in accordance with the second sentence of subsection 4.1.2 or (iii) adding or changing any provisions with respect to matters or questions arising under this Agreement as the parties may deem necessary or desirable and that the parties deem shall not adversely affect the rights of the Registered Holders under this Agreement. All other modifications or amendments, including any modification or amendment to increase the Warrant Price or shorten the Exercise Period and any amendment to the terms of only the Private Placement Warrants, shall require the vote or written consent of the Registered Holders of 50% of the then-outstanding Public Warrants and, solely 

 

21

 

with respect to any amendment to the terms of the Private Placement Warrants or any provision of this Agreement with respect to the Private Placement Warrants, 50% of the then-outstanding Private Placement Warrants. Notwithstanding the foregoing, the Company may lower the Warrant Price or extend the duration of the Exercise Period pursuant to Sections 3.1 and 3.2, respectively, without the consent of the Registered Holders.

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

Exhibit A Form of Warrant Certificate 

Exhibit B Legend — Private Placement Warrants 

 

 

22

 

 

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

 

		
	
WORLD QUANTUM GROWTH ACQUISITION CORP.

	
 
	
 

	
 
	
 

	
By:
	
/s/ Xavier Rolet

	
Name:
	
Xavier Rolet

	
Title:
	
CEO

	
 
	
 

	
 
	
 

	
CONTINENTAL STOCK TRANSFER & TRUST COMPANY, as Warrant Agent

	
 
	
 

	
 
	
 

	
By:
	
/s/ Erika Young

	
Name:
	
Erika Young

	
Title:
	
Vice President

	
 
	
 

 

 

 

[Signature Page to Warrant Agreement]

EXHIBIT A

 

[FACE]

Number

Warrants

THIS WARRANT SHALL BE VOID IF NOT EXERCISED PRIOR TO THE EXPIRATION OF THE EXERCISE PERIOD PROVIDED FOR IN THE WARRANT AGREEMENT DESCRIBED BELOW

WORLD QUANTUM GROWTH ACQUISITION CORP.

Incorporated Under the Laws of the Cayman Islands

CUSIP G5596W 127

Warrant Certificate

This Warrant Certificate certifies that [         ], or registered assigns, is the registered holder of [          ] warrant(s) (the “Warrants” and each, a “Warrant”) to purchase Class A ordinary shares, $0.0001 par value (“Ordinary Shares”), of World Quantum Growth Acquisition Corp., a Cayman Islands exempted company (the “Company”). Each Warrant entitles the holder, upon exercise during the period set forth in the Warrant Agreement referred to below, to receive from the Company that number of fully paid and non-assessable Ordinary Shares as set forth below, at the exercise price (the “Exercise Price”) as determined pursuant to the Warrant Agreement, payable in lawful money (or through “cashless exercise” as provided for in the Warrant Agreement) of the United States of America upon surrender of this Warrant Certificate and payment of the Exercise Price at the office or agency of the Warrant Agent referred to below, subject to the conditions set forth herein and in the Warrant Agreement. Defined terms used in this Warrant Certificate but not defined herein shall have the meanings given to them in the Warrant Agreement.

Each whole Warrant is initially exercisable for one fully paid and non-assessable Ordinary Share. Fractional shares shall not be issued upon exercise of any Warrant. If, upon the exercise of Warrants, a holder would be entitled to receive a fractional interest in an Ordinary Share, the Company shall, upon exercise, round down to the nearest whole number the number of Ordinary Shares to be issued to the Warrant holder. The number of Ordinary Shares issuable upon exercise of the Warrants is subject to adjustment upon the occurrence of certain events as set forth in the Warrant Agreement.

The initial Exercise Price per one Ordinary Share for any Warrant is equal to $11.50 per share. The Exercise Price is subject to adjustment upon the occurrence of certain events as set forth in the Warrant Agreement.

Subject to the conditions set forth in the Warrant Agreement, the Warrants may be exercised only during the Exercise Period and to the extent not exercised by the end of such 

 

 

Exercise Period, such Warrants shall become void. The Warrants may be redeemed, subject to certain conditions, as set forth in the Warrant Agreement.

Reference is hereby made to the further provisions of this Warrant Certificate set forth on the reverse hereof and such further provisions shall for all purposes have the same effect as though fully set forth at this place.

This Warrant Certificate shall not be valid unless countersigned by the Warrant Agent, as such term is used in the Warrant Agreement. This Warrant Certificate shall be governed by and construed in accordance with the internal laws of the State of New York.

 

		
	
WORLD QUANTUM GROWTH ACQUISITION CORP.

	
 
	
 

	
 
	
 

	
By:
	
 

	
Name:
	
 

	
Title:
	
 

	
 
	
 

	
 
	
 

	
CONTINENTAL STOCK TRANSFER & TRUST COMPANY, AS WARRANT AGENT

	
 
	
 

	
 
	
 

	
By:
	
 

	
Name:
	
 

	
Title:
	
 

	
 
	
 

 

 

 

 

 

 

 

[Form of Warrant Certificate] 

[REVERSE]

The Warrants evidenced by this Warrant Certificate are part of a duly authorized issue of Warrants entitling the holder on exercise to receive [     ] Ordinary Shares and are issued or to be issued pursuant to a Warrant Agreement dated as of August 13, 2021 (the “Warrant Agreement”), duly executed and delivered by the Company to Continental Stock Transfer & Trust Company, a New York corporation, as warrant agent (the “Warrant Agent”), which Warrant Agreement is hereby incorporated by reference in and made a part of this instrument and is hereby referred to for a description of the rights, limitation of rights, obligations, duties and immunities thereunder of the Warrant Agent, the Company and the holders (the words “holders” or “holder” meaning the Registered Holders or Registered Holder, respectively) of the Warrants. A copy of the Warrant Agreement may be obtained by the holder hereof upon written request to the Company. Defined terms used in this Warrant Certificate but not defined herein shall have the meanings given to them in the Warrant Agreement.

Warrants may be exercised at any time during the Exercise Period set forth in the Warrant Agreement. The holder of Warrants evidenced by this Warrant Certificate may exercise them by surrendering this Warrant Certificate, with the form of Election to Purchase set forth hereon properly completed and executed, together with payment of the Exercise Price as specified in the Warrant Agreement (or through “cashless exercise” as provided for in the Warrant Agreement) at the principal corporate trust office of the Warrant Agent. In the event that upon any exercise of Warrants evidenced hereby the number of Warrants exercised shall be less than the total number of Warrants evidenced hereby, there shall be issued to the holder hereof or his, her or its assignee, a new Warrant Certificate evidencing the number of Warrants not exercised.

Notwithstanding anything else in this Warrant Certificate or the Warrant Agreement, no Warrant may be exercised unless at the time of exercise (i) a registration statement covering the issuance of the Ordinary Shares to be issued upon exercise is effective under the Securities Act and (ii) a prospectus thereunder relating to the Ordinary Shares is current, except through “cashless exercise” as provided for in the Warrant Agreement.

The Warrant Agreement provides that upon the occurrence of certain events the number of Ordinary Shares issuable upon exercise of the Warrants set forth on the face hereof may, subject to certain conditions, be adjusted. If, upon exercise of a Warrant, the holder thereof would be entitled to receive a fractional interest in an Ordinary Share, the Company shall, upon exercise, round down to the nearest whole number of Ordinary Shares to be issued to the holder of the Warrant.

Warrant Certificates, when surrendered at the principal corporate trust office of the Warrant Agent by the Registered Holder thereof in person or by legal representative or attorney duly authorized in writing, may be exchanged, in the manner and subject to the limitations provided in the Warrant Agreement, but without payment of any service charge, for another Warrant Certificate or Warrant Certificates of like tenor evidencing in the aggregate a like number of Warrants.

 

 

Upon due presentation for registration of transfer of this Warrant Certificate at the office of the Warrant Agent a new Warrant Certificate or Warrant Certificates of like tenor and evidencing in the aggregate a like number of Warrants shall be issued to the transferee(s) in exchange for this Warrant Certificate, subject to the limitations provided in the Warrant Agreement, without charge except for any tax or other governmental charge imposed in connection therewith.

The Company and the Warrant Agent may deem and treat the Registered Holder(s) hereof as the absolute owner(s) of this Warrant Certificate (notwithstanding any notation of ownership or other writing hereon made by anyone), for the purpose of any exercise hereof, of any distribution to the holder(s) hereof, and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary. Neither the Warrants nor this Warrant Certificate entitles any holder hereof to any rights of a shareholder of the Company.

 

 

 

 

 

Election to Purchase

(To Be Executed Upon Exercise of Warrant)

The undersigned hereby irrevocably elects to exercise the right, represented by this Warrant Certificate, to receive [          ] Ordinary Shares and herewith tenders payment for such Ordinary Shares to the order of World Quantum Growth Acquisition Corp. (the “Company”) in the amount of $[          ] in accordance with the terms hereof. The undersigned requests that a certificate for such Ordinary Shares be registered in the name of [          ], whose address is [          ] and that such Ordinary Shares be delivered to [          ] whose address is [          ]. If said [         ] number of Ordinary Shares is less than all of the Ordinary Shares purchasable hereunder, the undersigned requests that a new Warrant Certificate representing the remaining balance of such Ordinary Shares be registered in the name of [          ], whose address is [         ] and that such Warrant Certificate be delivered to [        ], whose address is [          ].

In the event that the Warrant has been called for redemption by the Company pursuant to Section 6.2 of the Warrant Agreement and a holder thereof elects to exercise its Warrant pursuant to a Make-Whole Exercise, the number of Ordinary Shares that this Warrant is exercisable for shall be determined in accordance with subsection 3.3.1(c) or Section 6.2 of the Warrant Agreement, as applicable.

In the event that the Warrant is a Private Placement Warrant that is to be exercised on a “cashless” basis pursuant to subsection 3.3.1(c) of the Warrant Agreement, the number of Ordinary Shares that this Warrant is exercisable for shall be determined in accordance with subsection 3.3.1(c) of the Warrant Agreement.

In the event that the Warrant is to be exercised on a “cashless” basis pursuant to Section 7.4 of the Warrant Agreement, the number of Ordinary Shares that this Warrant is exercisable for shall be determined in accordance with Section 7.4 of the Warrant Agreement.

In the event that the Warrant may be exercised, to the extent allowed by the Warrant Agreement, through cashless exercise (i) the number of Ordinary Shares that this Warrant is exercisable for would be determined in accordance with the relevant section of the Warrant Agreement which allows for such cashless exercise and (ii) the holder hereof shall complete the following: The undersigned hereby irrevocably elects to exercise the right, represented by this Warrant Certificate, through the cashless exercise provisions of the Warrant Agreement, to receive Ordinary Shares. If said number of shares is less than all of the Ordinary Shares purchasable hereunder (after giving effect to the cashless exercise), the undersigned requests that a new Warrant Certificate representing the remaining balance of such Ordinary Shares be registered in the name of [        ], whose address is [          ] and that such Warrant Certificate be delivered to [          ], whose address is [          ].

[Signature Page Follows]

 

 

 

 

 

Date: [         ], 20______

	
	
 

(Signature)

	
 

(Address)

	
 

(Tax Identification Number)

 

	
	
Signature Guaranteed:

	
______________________________________

 

 

THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED).

 

 

 

 

 

EXHIBIT B

LEGEND

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE. IN ADDITION, SUBJECT TO ANY ADDITIONAL LIMITATIONS ON TRANSFER DESCRIBED IN THE LETTER AGREEMENT BY AND AMONG WORLD QUANTUM GROWTH ACQUISITION CORP. (THE “COMPANY”), WORLD QUANTUM GROWTH ACQUISITION LLC AND THE OTHER PARTIES THERETO, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD OR TRANSFERRED PRIOR TO THE DATE THAT IS THIRTY (30) DAYS AFTER THE DATE UPON WHICH THE COMPANY COMPLETES ITS INITIAL BUSINESS COMBINATION (AS DEFINED IN THE RECITALS OF THE WARRANT AGREEMENT DATED AUGUST 13, 2021, BETWEEN WORLD QUANTUM GROWTH ACQUISITION CORP. AND CONTINENTAL STOCK TRANSFER & TRUST COMPANY (THE “WARRANT AGREEMENT”) REFERRED TO HEREIN) EXCEPT TO A PERMITTED TRANSFEREE (AS DEFINED IN SECTION 2.6 OF THE WARRANT AGREEMENT) WHO AGREES IN WRITING WITH THE COMPANY TO BE SUBJECT TO SUCH TRANSFER PROVISIONS.

SECURITIES EVIDENCED HEREBY AND CLASS A ORDINARY SHARES OF THE COMPANY ISSUED UPON EXERCISE OF SUCH SECURITIES SHALL BE ENTITLED TO REGISTRATION RIGHTS UNDER A REGISTRATION AND SHAREHOLDER RIGHTS AGREEMENT TO BE EXECUTED BY THE COMPANY.

NO. [    ] WARRANT

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