Document:

Exhibit 10.5

 

SPONSOR SHARES FORFEITURE AGREEMENT

 

This Sponsor Shares Forfeiture
Agreement (this “Agreement”) is entered into as of October 14, 2022, by and among HH&L Investment Co., a Cayman
Islands exempted company limited by shares (the “Sponsor”), HH&L Acquisition Co., a Cayman Islands exempted company
limited by shares (“SPAC”), and DiaCarta, Ltd., a Cayman Islands exempted company limited by shares (the “Company”),
in connection with the Business Combination Agreement, dated as of the date hereof, among SPAC, Diamond Merger Sub Inc., a Delaware corporation
and a direct wholly owned subsidiary of SPAC, and the Company (the “Business Combination Agreement”). SPAC, the Company
and the Sponsor are referred to herein individually as a “Party” and collectively as the “Parties”.
Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Business Combination Agreement.

 

RECITALS

 

WHEREAS, the Business Combination
Agreement contemplates that the Parties will enter into this Agreement;

 

WHEREAS, it is contemplated
that pursuant to the terms and conditions of this Agreement, the Sponsor shall agree to forfeit a certain number of SPAC Class B Shares
(the “Sponsor Shares”) owned by the Sponsor, as set forth on Schedule I attached hereto.

 

NOW, THEREFORE, in consideration
of the premises and the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Parties hereby agree as follows:

 

1.                  
Sponsor Reduction Shares.

 

(a)               
It is acknowledged that to facilitate financing of the Transactions (including by way of a financing contemplated by Section
6.18 of the Business Combination Agreement, a backstop financing or anti-redemption agreements), the Sponsor, with the prior written consent
of the Company, as applicable, may elect (but shall not be obligated) to transfer, contribute or otherwise forfeit Sponsor Shares in connection
with such financing (such transferred, contributed or forfeited Sponsor Shares, the “Financing Contribution Shares”).

 

(b)               
If at the Closing, the SPAC Closing Cash is less than $40,000,000, the Sponsor hereby agrees, upon and subject to the Closing,
to forfeit to SPAC all right, title and interest in and to an aggregate number of the Sponsor Shares equal to 1,539,300 SPAC Class B Ordinary
Shares (the “Forfeited Shares”), provided that if the Sponsor transfers, contributes or forfeits Financing Contribution
Shares and the aggregate number of Forfeited Shares (without reduction) and Financing Contribution Shares exceed 2,052,400 SPAC Class
B Ordinary Shares, then the number of Forfeited Shares shall be reduced to an amount equal to (i) 2,052,400 SPAC Class B Ordinary Shares
minus (ii) the Financing Contribution Shares actually transferred, contributed or forfeited by the Sponsor. For the avoidance of doubt,
if SPAC Closing Cash is equal to or more than $40,000,000, there shall be no Forfeited Shares. References to numbers of shares herein
shall be adjusted appropriately to reflect any share splits, stock dividends, consolidations, recapitalizations, exchanges of shares and
the like.

 

    1

     

    

 

For the
purposes of this Agreement, “SPAC Closing Cash” means the sum of (i) the amount of cash available in the Trust
Account as of immediately prior to the Effective Time (after the payment of the amount required to satisfy the SPAC Shareholder
Redemptions, and prior to the payment of the Unpaid Transaction Expenses), (ii) the proceeds of any equity investments (including
any private investments in public equity) received by SPAC substantially concurrently with the Closing, (iii) the amount of any
backstop financing received by SPAC as of immediately prior to the Closing, and (iv) as of immediately prior to the Closing, the
amount of cash and cash equivalents held by SPAC without restriction outside of the Trust Account.

 

(c)               
Upon such forfeiture, the Sponsor shall surrender the Forfeited Shares to SPAC for cancellation in exchange for no consideration,
and SPAC shall immediately retire and cancel all of the Forfeited Shares and shall direct SPAC’s transfer agent to take any and
all such actions incident thereto. Notwithstanding anything to the contrary herein, all other Sponsor Shares and SPAC Warrants shall not
be subject to any of the restrictions set forth in this Section 1.

 

2.                  
Representations and Warranties of the Sponsor.

 

The Sponsor hereby represents
and warrants and acknowledges and agrees as follows:

 

(a)               
The Sponsor has been duly formed or incorporated and is validly existing in good standing under the laws of its jurisdiction
of incorporation or formation, with power and authority to enter into, deliver and perform its obligations under this Agreement.

 

(b)               
This Agreement has been duly authorized, validly executed and delivered by the Sponsor. This Agreement is enforceable against
the Sponsor in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, and (ii) principles of equity, whether
considered at law or equity.

 

3.                  
Binding Effect.

 

This Agreement shall be binding
upon and inure to the benefit of the Parties hereto and their respective permitted successors and assigns.

 

4.                  
Termination.

 

This Agreement shall automatically
terminate upon the earlier of (i) the termination of the Business Combination Agreement pursuant to the terms thereto or (ii) the Closing.

 

5.                  
Entire Agreement.

 

This Agreement and the Business
Combination Agreement (upon effectiveness thereof) constitute the entire agreement of the Parties hereto with respect to the matters contemplated
hereby and supersede any other agreements, whether written or oral, that may have been made or entered into by or among any of the Parties
hereto to the extent they relate in any way to the subject matters hereof or the transactions contemplated hereby.

 

    2

     

    

 

6.                  
Governing Law.

 

The Law of the State of
Delaware shall govern (a) all claims or matters related to or arising from this Agreement (including any tort or non-contractual
claims) and (b) any questions concerning the construction, interpretation, validity and enforceability hereof, and the performance
of the obligations imposed by this Agreement, in each case without giving effect to any choice-of-law or conflict-of-law rules or
provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the Law of any
jurisdiction other than the State of Delaware. EACH PARTY TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHTS TO TRIAL BY JURY IN
ANY ACTION BROUGHT TO RESOLVE ANY DISPUTE BETWEEN OR AMONG ANY OF THE PARTIES (WHETHER ARISING IN CONTRACT, TORT OR OTHERWISE)
ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY OR THE RELATIONSHIPS
ESTABLISHED AMONG THE PARTIES UNDER THIS AGREEMENT. THE PARTIES HERETO FURTHER WARRANT AND REPRESENT THAT EACH HAS REVIEWED THIS
WAIVER WITH ITS LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH
LEGAL COUNSEL. Each of the Parties submits to the exclusive jurisdiction of first, the Chancery Court of the State of Delaware or if
such court declines jurisdiction, then to the Federal District Court for the District of Delaware, in any Action arising out of or
relating to this Agreement, agrees that all claims in respect of the Action shall be heard and determined in any such court and
agrees not to bring any Action arising out of or relating to this Agreement in any other courts. Nothing in this Section 6,
however, shall affect the right of any Party to serve legal process in any other manner permitted by Law or at equity. Each Party
agrees that a final judgment in any Action so brought shall be conclusive and may be enforced by suit on the judgment or in any
other manner provided by Law or at equity.

 

7.                  
Specific Performance.

 

The Parties agree that irreparable
damage for which monetary damages, even if available, would not be an adequate remedy, would occur in the event that the Parties hereto
do not perform the provisions of this Agreement in accordance with its specified terms or otherwise breach or threaten to breach such
provisions. The Parties acknowledge and agree that the non-breaching Parties hereto shall be entitled, in addition to any other remedy
to which they are entitled at law or in equity, to an injunction, specific performance and other equitable relief to prevent breaches
or threatened breaches of this Agreement and to enforce specifically the terms and provisions hereof. Without limiting the foregoing,
each of the Parties agrees that it will not oppose the granting of an injunction, specific performance and other equitable relief on the
basis that (i) there is adequate remedy at law, or (ii) an award of specific performance is not an appropriate remedy for any reason at
law or in equity. Any Party seeking an order or injunction to prevent breaches or threatened breaches and to enforce specifically the
terms and provisions of this Agreement shall not be required to provide any bond or other security in connection with any such order or
injunction.

 

8.                  
Modification.

 

This Agreement may not be
amended or supplemented at any time unless by a writing executed by the Parties hereto. No waiver of any provision or condition hereof
shall be valid unless the same shall be in writing and signed by the Party against which such waiver is to be enforced. No waiver by any
Party of any default, breach of representation or warranty or breach of covenant hereunder, whether intentional or not, shall be deemed
to extend to any other, prior or subsequent default or breach or affect in any way any rights arising by virtue of any other, prior or
subsequent such occurrence.

 

9.                  
Headings; Counterparts.

 

The headings in this
Agreement are for convenience only and shall not be considered a part of or affect the construction or interpretation of any
provision of this Agreement. This Agreement may be executed in any number of original, electronic 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. This Agreement shall become effective upon delivery to each party of an executed counterpart or the earlier
delivery to each party of original, photocopied, or electronically transmitted signature pages that together (but need not
individually) bear the signatures of all other parties.

 

[The balance of this page is intentionally left
blank.]

 

    3

     

    

 

IN WITNESS WHEREOF, the undersigned
have executed this Agreement as of the date first set forth above.

 

	 	HH&L
    INVESTMENT CO.
	 	 
	 	 
	 	By:	/s/ Richard Qi Li
	 	Name: 	Richard Qi Li
	 	Title:	Director

 

[Signature Page to Sponsor Shares Forfeiture
Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the undersigned
have executed this Agreement as of the date first set forth above.

 

	 	HH&L
    ACQUISITION CO.
	 	 
	 	 
	 	By:	/s/ Richard Qi Li
	 	Name: 	Richard Qi Li
	 	Title:	Chief Executive Officer and Director

 

[Signature Page to Sponsor Shares Forfeiture
Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the undersigned
have executed this Agreement as of the date first set forth above.

 

	 	DIACARTA,
    LTD.
	 	 
	 	 
	 	By:	/s/ Aiguo Zhang 
	 	Name: 	 Aiguo Zhang
	 	Title:	 Chief Executive Officer

 

[Signature Page to Sponsor Shares Forfeiture
Agreement]

 

     

     

    

 

Schedule I - Sponsor Shares

 

    1Execution Copy

 

Exhibit 10.1

 

 

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

 

PROMISSORY NOTE

(this “Note”)

 

	Principal Amount: $550,000	
    Dated as of October 10, 2022

    Cayman Islands

 

Iris Acquisition
Corp, a Delaware corporation with offices at 3rd Floor Zephyr House

122 Mary Street, George Town PO Box 10085 Grand Cayman KY1-1001, Cayman Islands (the “Maker”), promises to pay to the
order of Iris Acquisition Holdings LLC, a Delaware limited liability company with offices at 3rd Floor Zephyr House 122 Mary Street, George
Town PO Box 10085 Grand Cayman KY1-1001, Cayman Islands or its registered assigns or successors in interest (together, the “Payee”),
the principal sum of Five Hundred Fifty Thousand Dollars ($550,000) (the “Principal Amount”) in lawful money of the
United States of America, on the terms and conditions described below. All payments on this Note shall be made by check or wire transfer
of immediately available funds, or as otherwise determined by Maker, to such account as Payee may from time to time designate by Notice
(as defined in Section 8) to Maker in accordance with the provisions of this Note.

 

1.                  
Principal. The principal balance of this Note shall be payable by Maker on March 1, 2023 (the “Maturity Date”).
The principal balance may be prepaid at any time. Under no circumstances shall any individual, including but not limited to any officer,
director, employee or shareholder of Maker, be obligated personally for any obligations or liabilities of Maker hereunder.

 

2.                  
Interest. No interest shall accrue on the unpaid principal balance of this Note except as required by applicable law.

 

3.                  
Application of Payments. All payments shall be applied, first, to payment in full of any costs incurred in the collection
of any sum due under this Note, including (without limitation) reasonable attorney’s fees, second, to the payment in full
of any late charges, and third, to the reduction of the unpaid principal balance of this Note.

 

4.                  
Events of Default. The following events shall constitute
an event of default (“Event of Default”):

 

4.1              
Failure to Make Required Payments. The failure by Maker to pay the principal amount due pursuant to this Note within five
business days of the Maturity Date.

 

4.2              
Voluntary Bankruptcy, Etc. The: (a) commencement by Maker of a voluntary case under any applicable bankruptcy, insolvency,
reorganization, rehabilitation or other similar law; (b) consent by Maker to the appointment of or taking possession by a receiver, liquidator,
assignee, trustee, custodian, sequestrator (or other similar official) of Maker for any substantial part of its property, (c) making by
Maker of any assignment for the benefit of creditors; (d) the failure of Maker generally to pay its debts as such debts become due; or
(e) taking of any corporate action by Maker in furtherance of any of the foregoing events described in Section 4.2(a) –
Section 4.2(d).

 

     

     

    

 

4.3              
Involuntary Bankruptcy, Etc. The: (a)(i) entry of a decree or order for relief by a court having jurisdiction in the premises
in respect of Maker in an involuntary case under any applicable bankruptcy, insolvency or other similar law, (ii) appointment of a receiver,
liquidator, assignee, custodian, trustee, sequestrator (or similar official) of Maker or for any substantial part of its property, or
(iii) the ordering of the winding-up or liquidation of Maker’s affairs; and (b) continuance of any such decree, appointment, or
order unstayed and in effect for a period of 60 consecutive days.

 

5.                  Remedies.

 

5.1              
Upon the occurrence of an Event of Default specified in Section 4.1, Payee may, by Notice to Maker, declare this Note to
be due immediately and payable by Maker, whereupon the unpaid principal amount of this Note, and all other amounts payable hereunder,
shall become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly
waived, notwithstanding anything contained herein or in the documents evidencing the same to the contrary.

 

5.2              
Upon the occurrence of an Event of Default specified in Section 4.2 and Section 4.3, the unpaid principal balance
of this Note, and all other sums payable with regard to this Note, shall automatically and immediately become due and payable by Maker,
in all cases without any action on the part of Payee.

 

6.                  
Waivers. Maker and all endorsers and guarantors of, and sureties for, this Note waive: (a) presentment for payment, demand,
notice of dishonor, protest, and notice of protest with regard to the Note;

(b) all errors, defects and imperfections
in any proceedings instituted by Payee under the terms of this Note; and (c) all benefits that might accrue to Maker by virtue of any
present or future laws (i) exempting any property, real or personal, or any part of the proceeds arising from any sale of any such real
or personal property, from attachment, levy or sale under execution, or (ii) providing for any stay of execution, exemption from civil
process, or extension of time for payment. Maker agrees that any real estate that may be levied upon pursuant to a judgment obtained by
virtue hereof or any writ of execution issued hereon, may be sold upon any such writ in whole or in part in any order desired by Payee.

 

7.                  
Unconditional Liability. Maker hereby waives all notices in connection with the delivery, acceptance, performance, default,
or enforcement of the payment of this Note, and agrees that Maker’s liability shall be unconditional, without regard to the liability
of any other party, and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted
or consented to by Payee. Maker consents to any and all extensions of time, renewals, waivers, or modifications that may be granted by
Payee with respect to the payment or other provisions of this Note. Maker agrees that additional makers, endorsers, guarantors, or sureties
may become parties hereto without either any Notice to Maker or any bearing on Maker’s liability hereunder.

 

8.                  
Notices. All notices, requests, consents, claims, demands, waivers, and other communications hereunder (each, a “Notice”)
shall be in writing and addressed to the parties at the addresses set forth on the first page of this Agreement (or to such other address
that may be designated by the receiving party from time to time in accordance with this Section 8). A Notice shall be deemed to
have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally
recognized overnight courier (receipt requested); (c) on the date sent by facsimile or email (with confirmation of transmission) if sent
during normal business hours of the recipient, and on the next business day if sent after normal business hours of the recipient; or
(d) on the third day after the date mailed, by certified or registered mail (in each case, return receipt requested, postage pre-paid).

 

     

     

    

 

9.                  
Construction. THIS NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF NEW YORK, WITHOUT REGARD TO CONFLICT
OF LAW PROVISIONS THEREOF.

 

10.              
Severability. Any provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof,
and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction.

 

11.              
Amendment; Waiver. Any amendment hereto or waiver of any provision hereof may be made with, and only with, the written consent
of both Maker and Payee.

 

12.              
Assignment. No assignment or transfer of this Note or any rights or obligations hereunder may be made by any party hereto (by
operation of law or otherwise) without the prior written consent of the other party hereto. Any attempted assignment without the required
consent shall be void.

 

[Signature page follows]

 

     

     

    

 

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

 

	 	IRIS ACQUISITION CORP	 
	 	 	 	 
	 	By:	/s/ Sumit Mehta	 
	 	Name:	Sumit Mehta	 
	 	Title:	Chief Executive Officer

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