Document:

Exhibit 10.1

 

PRE-PAID ADVANCE AGREEMENT

 

THIS PRE-PAID ADVANCE
AGREEMENT (this “Agreement”) dated as of July 20, 2022 is made by and between YA II PN, LTD., a Cayman
Islands exempt limited partnership (the “Investor”), and CANOO INC., a company incorporated under the laws
of the State of Delaware (the “Company”).

 

WHEREAS, the parties
desire that, upon the terms and subject to the conditions contained herein, the Investor shall have the right to purchase from the Company,
from time to time as provided herein, and the Company shall issue and sell to the Investor, up to $300 million of the Company’s
shares of common stock, par value $0.0001 per share (the “Common Shares”); and

 

WHEREAS, the Common
Shares are listed for trading on the Nasdaq Stock Market under the symbol “GOEV;” and

 

WHEREAS, the offer
and sale of the Common Shares issuable hereunder will be registered on the Company’s registration statement on Form S-3 (file No.
333-264842) under Section 5 under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “Securities
Act”).

 

NOW, THEREFORE, the
parties hereto agree as follows:

 

Article I. Certain Definitions

 

Section 1.01       
“Advance” shall mean any purchase by the Investor of Advance Shares from the Company pursuant to this Agreement.

 

Section 1.02       
“Advance Shares” shall mean the Common Shares that the Investor shall purchase from the Company, and the Company
shall issue and sell to the Investor, hereunder.

 

Section 1.03        “Agreement” shall have the meaning set forth in the preamble of this Agreement.

 

Section 1.04        “Applicable Laws” shall mean all applicable laws, statutes, rules, regulations, orders, executive orders, directives,
policies, guidelines and codes having the force of law, whether local, national, or international, as amended from time to time, including
without limitation (i) all applicable laws that relate to money laundering, terrorist financing, financial record keeping and reporting,
(ii) all applicable laws that relate to anti-bribery, anti-corruption, books and records and internal controls, including the United
States Foreign Corrupt Practices Act of 1977, and (iii) any Sanctions laws.

 

Section 1.05        “Base Prospectus” shall mean the Company’s prospectus dated May 19, 2022 forming a part of the Registration
Statement.

 

Section 1.06        “Basket” shall have the meaning set forth in Section 6.04.

 

Section 1.07       
“Closing” shall have the meaning set forth in Section 3.02.

 

     

     

    

 

Section 1.08       “Commitment Amount” shall mean $300,000,000 of Common Shares, provided that, the Company shall not affect
any sales under this Agreement and the Investor shall not have the obligation to purchase Common Shares under this Agreement to the extent
(but only to the extent) that after giving effect to such purchase and sale the aggregate number of Common Shares issued under this Agreement
(or any other transaction that is integrated with this Agreement) would exceed 19.9% of the outstanding Common Shares as of the date
of this Agreement (the “Exchange Cap”) provided further that, the Exchange Cap will not apply (a) if the Company’s
stockholders have approved issuances in excess of the Exchange Cap in accordance with the rules of the Principal Market or (b) as to
any Advance, if the Purchase Price of Shares in respect of such Advance equals or exceeds $3.82 per share.

 

Section 1.09        “Commitment Period” shall mean the period commencing on the date hereof and expiring upon the date of termination
of this Agreement in accordance with Section 10.01.

 

Section 1.10        “Common Shares” shall have the meaning set forth in the recitals of this Agreement.

 

Section 1.11       
“Company” shall have the meaning set forth in the preamble of this Agreement.

 

Section 1.12        “Company
Indemnitees” shall have the meaning set forth in Section 6.02.

 

Section 1.13       
“Compulsory Advance(s)” shall have the meanings set forth in Section 3.01(h).

 

Section 1.14        “Environmental
Laws” shall have the meaning set forth in Section 5.13.

 

Section 1.15        “Equity
Conditions” shall, at the time the Company provides written notice to the Investor of a Compulsory Advance, mean that each
of the following shall be satisfied:

 

		(a)	The Common Shares shall be listed for
                                            trading on the Principal Market and not subject to any trading suspension;

 

		(b)	The Common Shares to be issued by the
                                            Company to the Investor shall (i) have been registered with the SEC, (ii) be issued without
                                            restricted legends, (iii) not be subject to any restrictions on sale by the Investor; (iv)
                                            be registered under Section 12(b) of the Exchange Act and (v) shall have been approved for
                                            listing on the Principal Market, subject to official notice of issuance;

 

		(c)	The Registration Statement registering
                                            the Common Shares shall be effective and not subject to any suspension and such Registration
                                            Statement shall not contain any untrue statement of a material fact or omit to state a material
                                            fact required to be stated therein, or necessary to make the statements therein (in the case
                                            of prospectuses, in the light of the circumstances in which they were made) not misleading.
                                            The submission by the Company of a written notice of Compulsory Advance shall constitute
                                            a representation and warranty by the Company to the Investor, for which the Investor shall
                                            be entitled to rely, that the forging sentence is true and correct in all material respects;

 

		(d)	The Company has a sufficient number
                                            of authorized but unissued Common Shares to issue to the Investor pursuant to the Compulsory
                                            Advance;

 

     

     

    

 

		(e)	The Compulsory Advance shall not result
                                            in a violation of the Advance Limitations set forth in Section 3.01(b);

 

		(f)	The VWAP of the Common Shares at the
                                            time of issuance shall not be less than $1.00 per share;

 

		(g)	No Event of Default shall have occurred;

 

		(h)	No Material Outside Event shall exist;

 

		(i)	The Company shall have filed all reports
                                            and other documents required of it as a reporting company under the Exchange Act;

 

		(j)	There shall exist no impediments, delays
                                            or prohibitions to the Company issuing the Company shares required to be issued by the Company
                                            to the Investor pursuant to a Compulsory Advance;

 

		(k)	All Common Shares related to all prior
                                            Advances or Compulsory Advances shall have been received by the Investor; and

 

		(l)	The Purchase Price shall be equal to
                                            or higher than the Floor Price.

 

Section 1.16       
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder.

 

Section 1.17       
“Exchange Cap” shall have the meaning set forth in the definition of Commitment Amount.

 

Section 1.18       
“Floor Price” means $1.00 per share.

 

Section 1.19       
“Hazardous Materials” shall have the meaning set forth in Section 5.13.

 

Section 1.20       
“Indemnified Liabilities” shall have the meaning set forth in Section 6.01.

 

Section 1.21       
“Investor” shall have the meaning set forth in the preamble of this Agreement.

 

Section 1.22       
“Investor Indemnitees” shall have the meaning set forth in Section 6.01.

 

Section 1.23       
“Initial Registration Statement” shall have the meaning set forth in Section 7.01(a).

 

Section 1.24       
“Market Price” shall mean the VWAP on the applicable date of determination.

 

Section 1.25       
“Material Adverse Effect” shall mean any event, occurrence or condition that has had or would reasonably be
expected to have (i) a material adverse effect on the legality, validity or enforceability of this Agreement or the transactions contemplated
herein, (ii) a material adverse effect on the results of operations, assets, business or condition (financial or otherwise) of the Company
and its Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material
respect on a timely basis its obligations under this Agreement.

 

     

     

    

 

Section 1.26       
“Material Outside Event” shall have the meaning set forth in Section 7.07.

 

Section 1.27      
  “Maturity Date” shall have the meaning set forth in Section 2.03(b).

 

Section 1.28       
“Maximum Advance Amount” in respect of each Request means $50,000,000 (or such greater amount that the parties
may mutually agree), provided that the amount of such Request shall not (i) cause the aggregate of all Pre-Paid Advances to exceed
$300 million, and (ii) when aggregated with all Pre-Paid Advances that are outstanding at the time of such Request, exceed $50,000,000.

 

Section 1.29       
“Nasdaq Official Closing Price” means the closing price of a Common Share
as reported on the “Historical NOCP” section of the web site Nasdaq.com for the ticker symbol “GOEV.”

 

Section 1.30       
“OFAC” shall have the meaning set forth in Section 5.28.

 

Section 1.31       
“Ownership Limitation” shall have the meaning set forth in Section 3.01(b)(i).

 

Section 1.32       
“Person” shall mean an individual, a corporation, a partnership, a limited liability company, a trust or other
entity or organization, including a government or political subdivision or an agency or instrumentality thereof.

 

Section 1.33       
“Plan of Distribution” shall mean the section of a Registration Statement disclosing the plan of distribution
of the Shares.

 

Section 1.34       
“Pre-Advance Date” shall have the meaning set
forth in Section 2.01.

 

Section 1.35       
“Pre-Paid Advance” shall have the meaning set
forth in Section 2.01.

 

Section 1.36        “Principal Market” shall mean the Nasdaq Global Select Market; provided however, that in the event the Company’s
Common Shares are ever listed or traded on the New York Stock Exchange, the NYSE American, the Nasdaq Global Market, or the Nasdaq Capital
Market, then the “Principal Market” shall mean such other market or exchange on which the Company’s Common Shares are
then listed or traded.

 

Section 1.37       
“Prospectus” means any prospectus (including, without limitation, all amendments and supplements thereto) used
in connection with a Registration Statement.

 

Section 1.38        “Prospectus
Supplement” shall mean any prospectus supplement to a Prospectus filed with the SEC pursuant to Rule 424(b) under the
Securities Act, including, without limitation, any Prospectus Supplement to be filed in accordance with Section 7.01 hereof.

 

Section 1.39        “Purchase
Notice” shall have the meaning set forth in Section 3.01(a).

 

Section 1.40        “Purchase Notice Date” shall mean each date the Investor delivers to the Company a Purchase Notice.

 

     

     

    

 

Section 1.41      
“Purchase Price” shall mean the lower of (a) with respect to each Pre-Paid Advance, a price per share equal
to 120% of the Market Price as of the Trading Day immediately prior to each Pre-Advance Date (the “Fixed Price”),
or (b) 95% of the Market Price (the “Variable Price”) as of (y) the Trading Day immediately preceding each Purchase
Notice Date or (z) the Trading Day on which the Company has delivered written notice of a Compulsory Advance in accordance with Section
3.01(h), as applicable, but in either case not lower than the Floor Price.

 

Section 1.42       
“Redemption Premium” means 3% of the principal amount being redeemed.

 

Section 1.43       
“Registration Statement” shall mean the Initial Registration Statement or another registration statement on
a form promulgated by the SEC for which the Company then qualifies for the registration of the offer and sale of the Shares to be offered
and sold by the Company to the Investor and the resale of such Shares by the Investor, as the same may be amended and supplemented from
time to time and including any information deemed to be a part thereof pursuant to Rule 430B under the Securities Act and any successor
registration statement filed by the Company with the SEC under the Securities Act on a form promulgated by the SEC for which the Company
then qualifies and which form shall be available for the registration of the transactions contemplated hereunder.

 

Section 1.44       
“Request” shall have the meaning set forth in Section 2.01.

 

Section 1.45       
“Sanctions” shall have the meaning set forth in Section 5.28.

 

Section 1.46       
“Sanctioned Countries” shall have the meaning set forth in Section 5.28.

 

Section 1.47       
“SEC” shall mean the U.S. Securities and Exchange Commission.

 

Section 1.48       
“SEC Documents” shall have the meaning set forth in Section 5.05.

 

Section 1.49       
“Securities Act” shall have the meaning set forth in the recitals of this Agreement.

 

Section 1.50       
“SEPA” shall have the meaning set forth in Section 2.03(e)(viii).

 

Section 1.51       
“Shares” shall mean the Common Shares to be issued from time to time hereunder pursuant to an Advance.

 

Section 1.52       
“Subsidiaries” shall have the meaning set forth in Section 5.01.

 

Section 1.53       
“Trading Day” shall mean any day during which the Principal Market shall be open for business.

 

Section 1.54       
“Transaction Documents” shall have the meaning set forth in Section 5.02.

 

     

     

    

 

Section 1.55       
“Variable Rate Transaction” shall mean a transaction in which the Company (i) issues or sells any equity or
debt securities that are convertible into, exchangeable or exercisable for, or include the right to receive additional Common Shares
either (A) at a conversion price, exercise price, exchange rate or other price that is based upon and/or varies with the trading prices
of or quotations for the Common Shares at any time after the initial issuance of such equity or debt securities, or (B) with a conversion,
exercise or exchange price that is subject to being reset at some future date after the initial issuance of such equity or debt security
or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market
for the Common Shares (including, without limitation, any “full ratchet” or “weighted average” anti-dilution
provisions, but not including any standard anti-dilution protection for any reorganization, recapitalization, non-cash dividend, stock
split or other similar transaction) or (ii) issues or sells any equity or debt securities either (A) at a price that is subject to being
reset at some future date after the initial issuance of such debt or equity security or upon the occurrence of specified or contingent
events directly or indirectly related to the business of the Company or the market for the Common Shares (other than standard anti-dilution
protection for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction), or (B) that are subject
to or contain any put, call, redemption, buy-back, price-reset or other similar provision or mechanism (including, without limitation,
a “Black-Scholes” put or call right, other than in connection with a “fundamental transaction”) that provides
for the issuance of additional equity securities of the Company or the payment of cash by the Company. For the avoidance of doubt, the
Company shall be permitted to enter into an “at the market offering” or other continuous offering or similar offering of
Common Shares with a registered broker-dealer, whereby the Company may sell Common Shares at a future determined price; however, the
Company shall not be permitted to execute any transactions under such agreement unless (i) the Market Price is below the Floor Price,
or (ii) there is no balance outstanding under all prior Pre-Paid Advances.

 

Section 1.56       
“VWAP” means, for any Trading Day, the daily volume weighted average price of the Common Shares for such Trading
Day on the Principal Market during regular trading hours as reported by Bloomberg L.P.

 

Article II. Pre-Paid
Advances

 

Section 2.01     
 Request for Pre-Paid Advance. The parties hereby agree that the Company may, at any time and from time to time during the
Commitment Period, provided that the conditions precedent to a Pre-Paid Advance
set forth in Section 2.02 are then satisfied, request a Pre-Paid Advance in an amount not to exceed the Maximum Advance Amount
from the Investor by providing a written notice of such request to the Investor (the “Request”). The closing of each
Pre-Paid Advance shall take place on or before the fifth business day following the date of such Request, or such earlier date as may
be agreed by the Investor (the date of the closing of each Pre-Paid Advance shall be referred to as the “Pre-Advance Date”)).
On each Pre-Advance Date, subject to the satisfaction of the conditions precedent
to a Pre-Paid Advance set forth in Section 2.02 as of such Pre-Advance Date, the Investor shall pay
to the Company an amount equal to 99% of the amount of the Pre-Paid Advance set forth in such Request in immediately available funds
to an account designated by the Company in writing and transmit notification to the Company that such funds transfer has been requested.

 

     

     

    

 

Section 2.02       
Conditions Precedent to Each Pre-Paid Advance. The right of the Company to request a Pre-Paid Advance, and the obligations
of the Investor to advance to the Company the amount of such Pre-Paid Advance
on each Pre-Advance Date shall be subject to the timely performance by the Company of its obligations hereunder, and the satisfaction,
unless waived by the Investor, as of the date of each Request and as of the Pre-Advance Date for each Pre-Paid Advance, of each of the
following conditions

 

		(a)	Accuracy of Company’s Representation
                                            and Warranties. The representations and warranties of the Company set forth in Article
                                            V shall be true and correct in all material respects.

 

		(b)	Performance by the Company. The
                                            Company shall have performed, satisfied and complied in all material respects with all covenants,
                                            agreements and conditions required by this Agreement to be performed, satisfied or complied
                                            with by the Company. No Event of Default shall have occurred.

 

		(c)	No Defaults. The Company shall
                                            not be in material default, or alleged to be in material default, of any contractual obligations
                                            by any party.

 

		(d)	No Variable Rate Transaction.
                                            The Company shall not be party to any Variable Rate Transaction, except with respect to the
                                            Investor.

 

		(e)	No Material Adverse Effect. No
                                            Material Adverse Effect shall have occurred.

 

		(f)	No Material Outside Event. No
                                            Material Outside Event shall have occurred and be continuing.

 

		(g)	Registration of the Common Shares
                                            with the SEC. There is an effective Registration Statement pursuant to which the Investor
                                            is permitted to utilize the prospectus thereunder to sell Common Shares issuable pursuant
                                            to Purchase Notices and the market value of the Common Shares available thereunder (based
                                            on the average of the daily VWAP during the five Trading Days prior to the date of the Request)
                                            shall be equal to the amount of the Pre-Paid Advance.

 

		(h)	Authority. The delivery of the
                                            Request for such Pre-Paid Advance, and the performance by the Company hereunder, including,
                                            without limitation, the payment obligations, is legally permitted by all laws and regulations
                                            to which the Company is subject, is authorized by the Company’s Board of Directors
                                            and is not in conflict with, or prohibited by, the organizational documents of the Company,
                                            or any contract, agreement, or arrangement with any third party.

 

		(i)	No Suspension of Trading in or Delisting
                                            of Common Shares. The Common Shares are quoted for trading on the Primary Market. The
                                            Company shall have the capacity to issue such number of Common Shares with a market value
                                            (based on the average of the daily VWAP during the five Trading Days prior to the date of
                                            the Request) of no less than 1.5 times the principal amount of the Pre-Paid Advance without
                                            breaching the Exchange Cap. The Company shall not have received any written notice that is
                                            then still pending threatening the continued quotation of the Common Shares on the Primary
                                            Market.

 

		(j)	Prior Pre-Paid Advances. The
                                            balance outstanding under all prior Pre-Paid Advances shall be less than or equal to $10,000,000
                                            (or such greater amount that the parties may mutually agree).

 

		(k)	Minimum Price. The market price
                                            of the Common Shares on the Principal Market is greater than $1.50 per share (or such lesser
                                            amount that the parties may agree in their respective discretion) as measured by the average
                                            of the daily VWAP for each of the three consecutive Trading Days immediately prior to the
                                            date of determination.

 

     

     

    

 

		(l)	No Injunction. No statute, rule,
                                            regulation, executive order, decree, ruling or injunction shall have been enacted, entered,
                                            promulgated or endorsed by any court or governmental authority of competent jurisdiction
                                            that prohibits or directly, materially and adversely affects any of the transactions contemplated
                                            by this Agreement.

 

		(m)	Bring Down Certificate. The Investor
                                            shall have received on and as of the Pre-Paid Advance Date a certificate of an executive
                                            officer of the Company confirming that all of the representations and warranties of the Company
                                            in this Agreement are true and correct on and as of the Pre-Paid Advance Date, and that the
                                            Company has complied with all agreements and covenants and satisfied all other conditions
                                            on its part to be performed or satisfied hereunder at or prior to the Pre-Advance Closing
                                            Date.

 

		(n)	Closing Statement. The Investor
                                            shall have received a letter, duly executed by an officer of the Company, setting forth wire
                                            transfer instructions of the Company for the payment of the amount of the Pre-Paid Advance
                                            and the amount to be paid by the Investor, which shall be 99% of the amount of the Pre-Paid
                                            Advance.

 

Section 2.03       
Company’s Pre-Paid Advance Obligations.

 

		(a)	Interest. Interest shall accrue
                                            on the outstanding balance of any Pre-Paid Advance at a rate equal to an annual rate of 5%,
                                            provided that such rate shall increase to an annual rate of 15% for so long as any Event
                                            of Default remains uncured. Interest shall be calculated on the basis of a 365-day year and
                                            the actual number of days elapsed, to the extent permitted by applicable law.

 

		(b)	Maturity. The Company shall pay
                                            to the Investor an amount in cash representing any amount of a Pre-Paid Advance that remains
                                            outstanding, plus accrued and unpaid interest thereon, on the 15-month anniversary of the
                                            Pre-Advance Date of each Pre-Paid Advance (the “Maturity Date”).

 

		(c)	Triggering Date. If, any time
                                            after the Pre-Advance Date in respect of any Pre-Paid Advance, and from time to time thereafter,
                                            (i) the VWAP is less than the Floor Price for at least five (5) Trading Days during a period
                                            of 7 consecutive Trading Days, or (ii) the Company has issued substantially all of the Common
                                            Shares available under the Exchange Cap (the last such day of each such occurrence, a “Triggering
                                            Date”), then the Company shall make monthly repayments of amounts outstanding under
                                            such Pre-Paid Advance beginning on the 10th calendar day after the Triggering
                                            Date and continuing on the same day of each successive calendar month until the entire amount
                                            of such Pre-Paid Advance balance shall have been paid or until the payment obligation ceases
                                            in accordance with this section. Each monthly payment shall be in an amount equal to the
                                            sum of (i) the outstanding principal amount of such Pre-Paid Advance divided by the lower
                                            of (y) the number of months remaining until the Maturity Date of such Pre-Paid Advance, or
                                            (z) 5, and (ii) the Redemption Premium in respect of such amount, and (iii) accrued and unpaid
                                            interest in respect of such amount as of each payment date. The obligation of the Company
                                            to make monthly payments hereunder shall cease (with respect to any payment that has not
                                            yet come due) if any time after the Triggering Date (i) the Exchange Cap no longer applies,
                                            and (ii) the VWAP is greater than the Floor Price for a period of five (5) consecutive Trading
                                            Days, unless a subsequent Triggering Date occurs.

 

     

     

    

 

		(d)	Early Repayment. The Company
                                            at its option shall have the right, but not the obligation, to repay (“Optional
                                            Repayment”) early a portion or all amounts outstanding under a Pre-Paid Advance
                                            as described in this Section; provided that (i) at the time of notice, the VWAP of
                                            the Common Stock is less than the Fixed Price during a period of three (3) consecutive Trading
                                            Days immediately prior to such notice and (ii) the Company provides the Investor with at
                                            least 10 Trading Days’ prior written (each, a “Repayment Notice”)
                                            of its desire to exercise an Optional Repayment. Each Repayment Notice shall be irrevocable
                                            and shall specify the outstanding balance of the Pre-Paid Advance to be repaid. The “Repayment
                                            Amount” shall be equal to the outstanding principal balance being repaid by the
                                            Company, plus the Redemption Premium, plus all accrued and unpaid interest in respect of
                                            such principal amount. On the 11th Trading Day after the Repayment Notice, the
                                            Company shall deliver to the Investor the Repayment Amount in cash with respect to the principal
                                            amount being repaid after giving effect to any Advances effected during the applicable notice
                                            period.

 

		(e)	Events of Default. An “Event
                                            of Default”, wherever used herein, means any one of the following events (whatever
                                            the reason and whether it shall be voluntary or involuntary or effected by operation of law
                                            or pursuant to any judgment, decree or order of any court, or any order, rule or regulation
                                            of any administrative or governmental body) shall have occurred and be continuing:

 

		(i)	the Company’s failure to pay to
                                            the Investor any amount of Pre-Paid Advances or other amounts when and as due and payable
                                            hereunder and such failure is not cured within 5 days following the Investor’s written
                                            notice to such effect;

 

		(ii)	the Company or any subsidiary of the
                                            Company shall commence, or there shall be commenced against the Company or any subsidiary
                                            of the Company under any applicable bankruptcy or insolvency laws as now or hereafter in
                                            effect or any successor thereto, or the Company or any subsidiary of the Company commences,
                                            or there shall be commenced against the Company or any subsidiary of the Company, any other
                                            proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors,
                                            dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or
                                            hereafter in effect relating to the Company or any subsidiary of the Company, in each case
                                            which remains un-dismissed for a period of 61 days; or the Company or any subsidiary of the
                                            Company is adjudicated insolvent or bankrupt pursuant to a final, non-appealable order; or
                                            any order of relief or other order approving any such case or proceeding is entered; or the
                                            Company or any subsidiary of the Company suffers any appointment of any custodian, private
                                            or court appointed receiver or the like for it or any substantial part of its property which
                                            continues un-discharged or un-stayed for a period of 61 days; or the Company or any subsidiary
                                            of the Company makes a general assignment for the benefit of creditors; or the Company or
                                            any subsidiary of the Company shall admit in writing that it is unable to pay its debts generally
                                            as they become due; or the Company or any subsidiary of the Company shall call a meeting
                                            of its creditors with a view to arranging a composition, adjustment or restructuring of its
                                            debts; or any corporate or other action is taken by the Company or any subsidiary of the
                                            Company for the purpose of effecting any of the foregoing;

 

     

     

    

 

		(iii)	the Company is a party to any agreement
                                            memorializing (1) the consummation of any transaction or event (whether by means of a share
                                            exchange or tender offer applicable to the ordinary shares, a liquidation, consolidation,
                                            recapitalization, reclassification, combination or merger of the Company or a sale, lease
                                            or other transfer of all or substantially all of the consolidated assets of the Company)
                                            or a series of related transactions or events pursuant to which all of the outstanding ordinary
                                            shares of the Company are exchanged for, converted into or constitute solely the right to
                                            receive, cash, securities or other property, (2) a consolidation or merger in which the Company
                                            is not the surviving corporation, or (3) a sale, assignment, transfer, conveyance or other
                                            disposal of all or substantially all of the properties or assets of the Company to another
                                            person or entity not affiliated with or under the control of the Company (each of (1), (2)
                                            and (3) a “Change in Control”) unless in connection with such Change in
                                            Control, the outstanding balance of all Pre-Paid Advances hereunder, and any other amounts
                                            owed will be paid in full or the Investor consents to such Change in Control;

 

		(iv)	the Company's (A) failure to deliver
                                            the required number of Common Shares to the Investor (I) before the applicable Share Delivery
                                            Date, or (II) in the instance of a delay due to extenuating circumstances not attributable
                                            to the Company, no later than the end of the Business Day immediately following the Share
                                            Delivery Date, or (B) notice, written or oral, to the Investor, including by way of public
                                            announcement, at any time, of its intention not to comply with a Purchase Notice;

 

		(v)	The Company shall fail for any reason
                                            to deliver the payment in cash pursuant to a Buy-In (as defined herein) within five (5) Business
                                            Days after such payment is due;

 

		(vi)	the Company or any subsidiary of the
                                            Company shall default in any of its obligations under any debenture or any mortgage, credit
                                            agreement or other facility, indenture agreement, factoring agreement or other instrument
                                            under which there may be issued, or whether or not secured or evidenced any indebtedness
                                            for borrowed money or money due under any long term leasing or factoring arrangement of the
                                            Company or any subsidiary of the Company in an amount exceeding $5,000,000, whether such
                                            indebtedness now exists or shall hereafter be created and such default is not cured within
                                            five (5) Business Days;

 

		(vii)	the Common Shares shall cease to be
                                            quoted or listed for trading, fail to have a bid price or VWAP, or fail to maintain a trading
                                            market on any Primary Market or otherwise have been suspended or delisted by the SEC, the
                                            Nasdaq, or FINRA;

 

     

     

    

 

		(viii)	an Event of Default or material breach
                                            by the Company under this Agreement or the Standby Equity Purchase Agreement (the “SEPA”)
                                            dated as of May 10, 2022 between the Company and the Investor; or

 

		(ix)	the Company shall fail to observe or
                                            perform any material covenant, agreement or warranty contained herein.

 

During the time
that any portion of one or more Pre-Paid Advances are outstanding, if any Event of Default has occurred, the full amount outstanding
under the Pre-Paid Advances and the Redemption Premium, together with interest and other amounts owing in respect thereof, to the date
of acceleration shall become at the Investor's election given by notice pursuant to Article XI, immediately due and payable in cash.
Furthermore, in addition to any other remedies, the Investor shall have the right (but not the obligation) to submit Purchase Notices
(and Advances hereunder) (subject to the limitations set out in Section 3.01(b) at any time after (x) an Event of Default or (y) the
Maturity Date at the Purchase Price. The Investor need not provide, and the Company hereby waives, any presentment, demand, protest or
other notice of any kind (other than required notice of purchase) and the Investor may immediately enforce any and all of its rights
and remedies hereunder and all other remedies available to it under applicable law. Such declaration may be rescinded and annulled by
Investor at any time prior to payment hereunder. No such rescission or annulment shall affect any subsequent Event of Default or impair
any right consequent thereon.

 

Article III. Investor’s
Advances

 

Section 3.01       
Advances; Mechanics. Upon the terms and subject to the conditions of this Agreement, during the Commitment Period, the
Investor, at its sole discretion, shall have the right, but not the obligation (except to the extent required by Section 3.01(a)(iv)
hereof), to purchase from the Company, and the Company shall issue and sell to the Investor, Common Shares by the delivery to the Company
of Purchase Notices as provided herein.

 

		(a)	Purchase Notice. At any time
                                            during the Commitment Period, provided that there is an outstanding balance under a Pre-Paid
                                            Advance, the Investor may, by providing written notice to the Company in the form set forth
                                            herein as Exhibit A attached hereto (a “Purchase Notice”) require the
                                            Company to issue and sell Shares to the Investor, in accordance with the following provisions:

 

		(i)	The Investor shall, in each Purchase
                                            Notice, select the amount of the Advance, in its sole discretion, and the timing of delivery;
                                            provided that the amount of the Advance shall not exceed the outstanding balance owed
                                            under all Pre-Paid Advances on the date of delivery of the Purchase Notice or result in the
                                            Investor exceeding the Advance Limitations set forth in Section 3.01(b) hereof.

 

		(ii)	Each Purchase Notice shall be delivered
                                            in accordance with the instructions set forth at the bottom of Exhibit A.

 

     

     

    

 

		(iii)	Each Purchase Notice shall set forth
                                            the amount of the Advance requested, the number of Shares to be purchased by the Investor,
                                            the Market Price, the Purchase Price (along with a report by Bloomberg, L.P. indicating the
                                            relevant VWAP used in calculating the Purchase Price), the aggregate amount of accrued and
                                            unpaid interest of the Pre-Paid Advance as of the Purchase Notice Date that shall be offset
                                            by the issuance of Shares, the aggregate amount of the Pre-Paid Advance as of the Purchase
                                            Notice Date that shall be offset by the issuance of Shares, and the total amount of the Pre-Paid
                                            Advance that shall be outstanding following the Closing of the Advance.

 

		(iv)	So long as the Equity Conditions have
                                            been satisfied, the Investor shall issue Purchase Notices for an aggregate amount of at least
                                            $1.0 million per calendar week.

 

		(b)	Advance Limitations.

 

		(i)	Ownership Limitation; Commitment
                                            Amount. At the request of the Company, the Investor will inform the Company of the amount
                                            of shares the Investor currently beneficially owns. In no event shall the number of Common
                                            Shares issuable to the Investor pursuant to an Advance cause the aggregate number of Common
                                            Shares beneficially owned by the Investor and its affiliates (as calculated pursuant to Section
                                            13(d) of the Exchange Act and Rule 13d-3 promulgated thereunder) by the Investor and its
                                            affiliates (on an aggregated basis) to exceed 9.99% of the then outstanding voting power
                                            or number of Common Shares (the “Ownership Limitation”). Upon the written
                                            request of the Investor, the Company shall promptly (but no later than the next business
                                            day on which the transfer agent for the Common Shares is open for business) confirm orally
                                            or in writing to the Investor the number of Common Shares then outstanding.

 

		(ii)	Exchange Limitation. In no event
                                            shall an Advance cause the number of Shares to exceed the Exchange Cap, to the extent applicable.

 

		(iii)	Volume Limitation. The aggregate
                                            amount of Advances requested in Purchase Notices issued on any given Trading Day shall not
                                            exceed a maximum of 20% of the aggregate trading volume (during regular trading hours) during
                                            the preceding five Trading Days, provided however, this limitation shall not apply with respect
                                            to any Purchase Notices where the Purchase Price is based on the Fixed Price.

 

		(c)	Company’s Obligations to Deliver
                                            Common Shares to Investor. On or before the third (3rd) Business Day following
                                            the date of receipt of a Purchase Notice (the “Share Delivery Date”),
                                            the Company shall (X) if legends are not required to be placed on certificates of Common
                                            Stock and provided that the Transfer Agent is participating in The Depository Trust Company's
                                            (“DTC”) Fast Automated Securities Transfer Program, credit such aggregate
                                            number of shares of Common Stock to which the Investor shall be entitled to the Investor's
                                            or its designee's balance account with DTC through its Deposit/Withdrawal at Custodian (DWAC)
                                            system or (Y) if the Transfer Agent is not participating in the DTC Fast Automated Securities
                                            Transfer Program, issue and deliver to the address as specified in the Purchase Notice, a
                                            certificate, registered in the name of the Investor or its designee, for the number of shares
                                            of Common Stock to which the Investor shall be entitled which certificates shall not bear
                                            any restrictive legends unless required pursuant to rules and regulations of the Commission.
                                            The Person or Persons entitled to receive the shares of Common Stock issuable hereunder shall
                                            be treated for all purposes as the record Investor or holders of such shares of Common Stock
                                            upon the transmission of a Purchase Notice.

 

     

     

    

 

		(d)	Company's Failure to Timely Delivery
                                            Shares. If within three (3) Trading Days after the Company's receipt of a copy of a Purchase
                                            Notice the Company shall fail to issue and deliver a certificate to the Investor or credit
                                            the Investor's balance account with DTC for the number of shares of Common Stock to which
                                            the Investor is entitled pursuant to such Purchase Notice (a “Delivery Failure”),
                                            and if on or after such date the Investor purchases (in an open market transaction or otherwise)
                                            Common Stock to deliver in satisfaction of any sale made by the Investor in reliance on the
                                            Purchase Notice and the timely delivery of Shares thereunder (such purchase, a “Buy-In”,
                                            provided that the number of shares purchased shall not exceed the number of shares specified
                                            in the applicable Purchase Notice), then the Company shall, within three (3) Business Days
                                            after the Investor's request and in the Investor's discretion, either (i) pay cash to the
                                            Investor in an amount equal to the Investor's total purchase price (including brokerage commissions
                                            and other reasonable and documented out of pocket expenses, if any) for the shares of Common
                                            Stock so purchased (the “Buy-In Price”), at which point the Company's
                                            obligation to deliver such certificate (and to issue such Common Stock) shall terminate,
                                            or (ii) promptly honor its obligation to deliver to the Investor a certificate or certificates
                                            representing such Common Stock and pay cash to the Investor in an amount equal to the excess
                                            (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock,
                                            times (B) the Nasdaq Official Closing Price on the Purchase Notice Date.

 

		(e)	Book-Entry. The Investor and
                                            the Company shall maintain records showing the outstanding balance of the Pre-Paid Advances
                                            (as well as the number of shares issued pursuant to Purchase Notices).

 

		(f)	Notwithstanding any other provision
                                            in this Agreement, the Company and the Investor acknowledge and agree that upon the Investor’s
                                            delivery of a valid Purchase Notice the parties shall be deemed to have entered into an unconditional
                                            contract binding on both parties for the purchase and sale of Shares pursuant to such Purchase
                                            Notice in accordance with the terms of this Agreement and (i) subject to Applicable Laws
                                            and (ii) subject to Section 4.09 (Trading Activities), the Investor may sell such Shares.

 

		(g)	The Investor shall use commercially
                                            reasonable efforts to sell any Common Shares received (or otherwise held) from the Company
                                            hereunder.

 

		(h)	Compulsory Advances. Each of
                                            the following provisions is subject to the satisfaction of the Equity Conditions:

 

		(i)	If the Market Price as of the Trading
                                            Day the Company delivers any Compulsory Advance is greater than or equal to the Fixed Price
                                            of any outstanding Pre-Paid Advance, the Company shall have the right to cause the Investor
                                            to submit Purchase Notices to the Company (each, a “Compulsory Advance”)
                                            with respect to such outstanding Pre-Paid Advance of a maximum of 20% of the aggregate trading
                                            volume (during regular trading hours) during the preceding five Trading Days, but no greater
                                            than $15 million; or

 

     

     

    

 

		(ii)	If the Market Price as of the Trading
                                            Day the Company delivers any Compulsory Advance is less than the Fixed Price of any outstanding
                                            Pre-Paid Advance, the Company shall have the right to cause the Investor to submit Compulsory
                                            Advances to the Company with respect to such outstanding Pre-Paid Advance of a maximum of
                                            20% of the aggregate trading volume (during regular trading hours) during the preceding five
                                            Trading Days, but no greater than $7.5 million.

 

With respect to Section
3.01(h), the amount of any Compulsory Advance shall be reduced by the amount of any Advances or prior Compulsory Advances during the
applicable five Trading Day period, and each Compulsory Advance shall be at least 5 Trading Days after the previous Compulsory Advance.
The Company shall have the right to affect a Compulsory Advance by delivering written notice to the Investor on any Trading Day between
the hours of 4:01 p.m. (i.e., immediately after regular trading hours on Nasdaq) and 11:59 p.m., in which case a Purchase Notice
corresponding to the Compulsory Advance shall be deemed delivered to the Company on the following Trading Day.

 

Section 3.02       
Closings. The closing of each Advance and each sale and purchase of Advance Shares (each, a “Closing”)
shall take place as soon as practicable on or after each Purchase Notice Date in accordance with the procedures set forth below:

 

(a)  
Promptly after receipt of a Purchase Notice with respect to each Advance (and, in any event, not later than one Trading Day after
such receipt), the Company will, or will cause its transfer agent to, electronically transfer such number of Shares to be purchased by
the Investor (as set forth in the Purchase Notice) by crediting the Investor’s account or its designee’s account at The Depository
Trust Company through its Deposit/Withdrawal at Custodian System or by such other means of delivery as may be mutually agreed upon by
the parties hereto, and transmit notification to the Investor that such share transfer has been requested. Promptly upon receipt of such
notification, the Investor shall pay to the Company the aggregate purchase price of the Shares (as set forth in the Purchase Notice by
offsetting the amount of the aggregate purchase price of the Shares to be paid by Investor against an equal amount outstanding under
a Pre-Paid Advance (first towards accrued and unpaid interest, and then towards outstanding principal as shown in such Purchase Notice).
No fractional shares shall be issued, and any fractional amounts shall be rounded to the next higher whole number of shares. To facilitate
the transfer of the Common Shares by the Investor, the Common Shares will not bear any restrictive legends so long as there is an effective
Registration Statement covering such Common Shares (it being understood and agreed by the Investor that notwithstanding the lack of restrictive
legends, the Investor may only sell such Common Shares in compliance with the requirements of the Securities Act (including any applicable
prospectus delivery requirements) or pursuant to an available exemption).

 

(b)  
In connection with each Closing, each of the Company and the Investor shall deliver to the other all documents, instruments and
writings expressly required to be delivered by either of them pursuant to this Agreement or the SEPA in order to implement and effect
the transactions contemplated herein.

 

     

     

    

 

Section 3.03        
Hardship.

 

		(a)	In the event the Investor sells Common
                                            Shares of the Company after delivery of a Purchase Notice and the Company fails to perform
                                            its obligations as mandated in Section 3.01(c), (d) and (e), the Company agrees that in addition
                                            to and in no way limiting the rights and obligations set forth in Article VI hereto and in
                                            addition to any other remedy to which the Investor is entitled at law or in equity, including,
                                            without limitation, specific performance, it will hold the Investor harmless against any
                                            loss, claim, damage, or expense (including reasonable legal fees and expenses), as incurred,
                                            arising out of or in connection with such default by the Company and acknowledges that irreparable
                                            damage may occur in the event of any such default. It is accordingly agreed that the Investor
                                            shall be entitled to an injunction or injunctions to prevent such breaches of this Agreement
                                            and to specifically enforce (subject to the Securities Act and other rules of the Principal
                                            Market), without the posting of a bond or other security, the terms and provisions of this
                                            Agreement.

 

		(b)	In the event the Company receives a
                                            Purchase Notice and the Investor fails to perform its obligations as mandated in Section
                                            3.01(c), (d) and (e), the Investor agrees that in addition to and in no way limiting the
                                            rights and obligations set forth in Article VI hereto and in addition to any other remedy
                                            to which the Company is entitled at law or in equity, including, without limitation, specific
                                            performance, it will hold the Company harmless against any loss, claim, damage, or expense
                                            (including reasonable legal fees and expenses), as incurred, arising out of or in connection
                                            with such default by the Investor and acknowledges that irreparable damage may occur in the
                                            event of any such default. It is accordingly agreed that the Company shall be entitled to
                                            an injunction or injunctions to prevent such breaches of this Agreement and to specifically
                                            enforce (subject to the Securities Act and other rules of the Principal Market), without
                                            the posting of a bond or other security, the terms and provisions of this Agreement.

 

Section 3.04       
Completion of Sales Pursuant to the Registration Statement. The Company will be under no further obligation to maintain
the effectiveness of the Registration Statement after the earlier to occur of (a) the date on which the Investor has purchased the full
Commitment Amount and has completed the subsequent resale of the full Commitment Amount pursuant to the Registration Statement (Investor
agrees to notify the Company when all subsequent resales are completed), (b) the 180th day following the date on which the Investor has
purchased the full Commitment Amount, or (c) the 180th day following the termination of this Agreement in accordance with its terms.

 

     

     

    

 

Article IV. Representations
and Warranties of Investor

 

The Investor hereby makes
the following representations, warranties and covenants to the Company:

 

Section 4.01       
Organization and Authorization. The Investor is duly organized, validly existing and in good standing under the laws of
the Cayman Islands and has the requisite corporate power and authority to enter into and perform its obligations under this Agreement,
including all transactions contemplated, and to purchase or acquire Shares in accordance with the terms hereof. The decision to invest
and the execution and delivery of this Agreement by the Investor, the performance by the Investor of its obligations hereunder and the
consummation by the Investor of the transactions contemplated hereby have been duly authorized and require no other proceedings on the
part of the Investor. The undersigned has the right, power and authority to execute and deliver this Agreement and all other instruments
on behalf of the Investor or its shareholders. This Agreement has been duly executed and delivered by the Investor and, assuming the
execution and delivery hereof and acceptance thereof by the Company, will constitute the legal, valid and binding obligations of the
Investor, enforceable against the Investor in accordance with its terms.

 

Section 4.02       
Evaluation of Risks. The Investor has such knowledge and experience in financial, tax and business matters as to be capable
of evaluating the merits and risks of, and bearing the economic risks entailed by, an investment in the Common Shares of the Company
and of protecting its interests in connection with the transactions contemplated hereby. The Investor acknowledges and agrees that its
investment in the Company involves a high degree of risk, and that the Investor may lose all or a part of its investment.

 

Section 4.03       
No Legal, Investment or Tax Advice from the Company. The Investor acknowledges that it had the opportunity to review this
Agreement and the transactions contemplated by this Agreement with its own legal counsel and investment and tax advisors. The Investor
is relying solely on such counsel and advisors and not on any statements or representations of the Company or any of the Company’s
representatives or agents for legal, tax, investment or other advice with respect to the Investor’s acquisition of Common Shares
hereunder, the transactions contemplated by this Agreement or the laws of any jurisdiction, and the Investor acknowledges that the Investor
may lose all or a part of its investment.

 

Section 4.04       
Investment Purpose. The Investor is acquiring the Common Shares for its own account, for investment purposes and not with
a view towards, or for resale in connection with, the public sale or distribution thereof, in violation of the Securities Act or any
applicable state securities laws; provided, however, that by making the representations herein, the Investor does not agree, or
make any representation or warranty, to hold any of the Shares for any minimum or other specific term and reserves the right to dispose
of the Shares at any time in accordance with, or pursuant to, a registration statement filed pursuant to this Agreement or an applicable
exemption under the Securities Act. The Investor does not presently have any agreement or understanding, directly or indirectly, with
any Person to sell or distribute any of the Shares. The Investor is acquiring the Shares hereunder in the ordinary course of its business.

 

Section 4.05       
Accredited Investor. The Investor is an “accredited investor” as that term is defined in Rule 501(a)(3)
of Regulation D.

 

Section 4.06       
Information. The Investor and its advisors (and its counsel), if any, have been furnished with all materials relating to
the business, finances and operations of the Company and information the Investor deemed material to making an informed investment decision.
The Investor and its advisors (and its counsel), if any, have been afforded the opportunity to ask questions of the Company and its management
and have received answers to such questions. Neither such inquiries nor any other due diligence investigations conducted by such Investor
or its advisors (and its counsel), if any, or its representatives shall modify, amend or affect the Investor’s right to rely on
the Company’s representations and warranties contained in this Agreement. The Investor acknowledges and agrees that the Company
has not made to the Investor, and the Investor acknowledges and agrees it has not relied upon, any representations and warranties of
the Company, its employees or any third party other than the representations and warranties of the Company contained in this Agreement.
The Investor understands that its investment involves a high degree of risk. The Investor has sought such accounting, legal and tax advice,
as it has considered necessary to make an informed investment decision with respect to the transactions contemplated hereby.

 

     

     

    

 

Section 4.07       
Not an Affiliate. The Investor is not an officer, director or a person that directly, or indirectly through one or more
intermediaries, controls or is controlled by, or is under common control with the Company or any “affiliate” of the
Company (as that term is defined in Rule 405 promulgated under the Securities Act).

 

Section 4.08       
No Prior Short Sales. At no time prior to the date of this Agreement
has the Investor, its sole member, any of their respective officers, or any entity managed or controlled by the Investor or its sole
member, engaged in or effected, in any manner whatsoever, directly or indirectly, for its own principal account, any (i) “short
sale” (as such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of the Common Shares or (ii) hedging transaction,
which establishes a net short position with respect to the Common Shares that remains in effect as of the date of this Agreement.

 

Section
4.09        Trading
Activities. The Investor’s trading activities with respect to the Common Shares shall
be in compliance with all applicable federal and state securities laws, rules and regulations and the rules and regulations of the Principal
Market. Neither the Investor nor its affiliates has any open short position in the Common Shares, nor
has the Investor entered into any hedging transaction that establishes a net short position with respect to the Common Shares,
and the Investor agrees that it shall not, and that it will cause its affiliates not to, engage in any short sales or hedging
transactions with respect to the Common Shares; provided that the Company acknowledges and agrees that upon delivery of a Purchase
Notice the Investor has the right to sell (a) the Shares to be issued to the Investor pursuant to the Purchase Notice prior
to receiving such Shares, or (b) other Common Shares sold by the Company to Investor pursuant to this Agreement and which the Company
has continuously held as a long position.

 

Article V. Representations
and Warranties of the Company

 

Except as set forth in the
SEC Documents, or in the Disclosure Schedules, which Disclosure Schedules shall be deemed a part hereof and shall qualify any representation
or warranty otherwise made herein to the extent of the disclosure contained in the corresponding section of the Disclosure Schedules
or in another Section of the Disclosure Schedules, to the extent that it is reasonably apparent on the face of such disclosure that such
disclosure is applicable to such Section, the Company represents and warrants to the Investor that, as of the date hereof, each Purchase
Notice Date (other than representations and warranties which address matters only as of a
certain date, which shall be true and correct as written as of such certain date), that:

 

Section 5.01       
Organization and Qualification. Each of the Company and its Subsidiaries (as defined below) is an entity duly organized
and validly existing under the laws of their respective jurisdiction of organization, and has the requisite power and authority to own
its properties and to carry on its business as now being conducted. Each of the Company and its Subsidiaries is duly qualified to do
business and is in good standing (to the extent applicable) in every jurisdiction in which the nature of the business conducted by it
makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not have a
Material Adverse Effect. “Subsidiaries” means any Person (as defined below) in which the Company, directly or indirectly,
(x) owns a majority of the outstanding capital stock or holds a majority equity or similar interest of such Person or (y) controls or
operates all or substantially all of the business, operations or administration of such Person, and each of the foregoing, is individually
referred to herein as a “Subsidiary.”

 

     

     

    

 

Section 5.02       
Authorization, Enforcement, Compliance with Other Instruments. The Company has the requisite corporate power and authority
to enter into and perform its obligations under this Agreement, and the other Transaction Documents and to issue the Shares in accordance
with the terms hereof and thereof. The execution and delivery by the Company of this Agreement and the other Transaction Documents, and
the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the
Common Shares) have been or (with respect to consummation) will be duly authorized by the Company’s board of directors and no further
consent or authorization will be required by the Company, its board of directors or its shareholders. This Agreement, and the other Transaction
Documents to which it is a party have been (or, when executed and delivered, will be) duly executed and delivered by the Company and,
assuming the execution and delivery thereof and acceptance by the Investor, constitute (or, when duly executed and delivered, will be)
the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms, except
as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation or other laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies and
except as rights to indemnification and to contribution may be limited by federal or state securities law. “Transaction Documents”
means, collectively, this Agreement, and each of the other agreements and instruments entered into or delivered by any of the parties
hereto in connection with the transactions contemplated hereby and thereby, as may be amended from time to time.

 

Section 5.03       
Authorization of the Shares. The Shares to be issued under this Agreement have been, or with respect to Shares to be purchased
by the Investor pursuant to an Purchase Notice, will be, when issued and delivered pursuant to the terms approved by the board of directors
of the Company or a duly authorized committee thereof, or a duly authorized executive committee, against payment therefor as provided
herein, duly and validly authorized and issued and fully paid and nonassessable, free and clear of any pledge, lien, encumbrance, security
interest or other claim, including any statutory or contractual preemptive rights, resale rights, rights of first refusal or other similar
rights. The Shares, when issued, will conform to the description thereof set forth in or incorporated into the Prospectus.

 

     

     

    

 

 

Section 5.04        No
Conflict. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Common Shares) will
not (i) result in a violation of the articles of incorporation or other organizational documents of the Company or its Subsidiaries
(with respect to consummation, as the same may be amended prior to the date on which any of the transactions contemplated hereby are
consummated), (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or
instrument to which the Company or its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order,
judgment or decree (including federal and state securities laws and regulations) applicable to the Company or its Subsidiaries or by
which any property or asset of the Company or its Subsidiaries is bound or affected except, in the case of clause (ii) or (iii)
above, to the extent such violations that would not reasonably be expected to have a Material Adverse Effect.

 

Section 5.05       
SEC Documents; Financial Statements. The Company has timely filed (giving effect to permissible extensions in accordance
with Rule 12b-25 under the Exchange Act) all reports, schedules, forms, statements and other documents required to be filed by it with
the SEC pursuant to the Exchange Act for the two years preceding the date hereof (or such shorter period as the Company was required by
law or regulation to file such material) (all of the foregoing filed within two years preceding the date hereof or amended after the date
hereof, or filed after the date hereof, and all exhibits included therein and financial statements and schedules thereto and documents
incorporated by reference therein, and all registration statements filed by the Company under the Securities Act (including any Registration
Statements filed hereunder), being hereinafter referred to as the “SEC Documents”). The Company has made available
to the Investor through the SEC’s website at http://www.sec.gov, true and complete copies of the SEC Documents. As of their respective
dates (or, with respect to any filing that has been amended or superseded, the date of such amendment or superseding filing), the SEC
Documents complied in all material respects with the requirements of the Exchange Act or the Securities Act, as applicable, and the rules
and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and did not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading.

 

Section 5.06        Financial
Statements. The consolidated financial statements of the Company included or incorporated by reference in SEC Documents,
together with the related notes and schedules, present fairly, in all material respects, the consolidated financial position of the
Company and the Subsidiaries as of the dates indicated and the consolidated results of operations, cash flows and changes in
stockholders’ equity of the Company for the periods specified and have been prepared in compliance with the requirements of
the Securities Act and Exchange Act and in conformity with generally accepted accounting principles in the United States
(“GAAP”) applied on a consistent basis (except for (i) such adjustments to accounting standards and practices as are
noted therein, (ii) in the case of unaudited interim financial statements, to the extent such financial statements may not include
footnotes required by GAAP or may be condensed or summary statements and (iii) such adjustments which will not be material, either
individually or in the aggregate) during the periods involved; the other financial and statistical data with respect to the Company
and the Subsidiaries (as defined below) contained or incorporated by reference in the SEC Documents are accurately and fairly
presented and prepared on a basis consistent with the financial statements and books and records of the Company; there are no
financial statements (historical or pro forma) that are required to be included or incorporated by reference in the SEC Documents
that are not included or incorporated by reference as required; the Company and the Subsidiaries (as defined below) do not have any
material liabilities or obligations, direct or contingent (including any off-balance sheet obligations), not described in the SEC
Documents (excluding the exhibits thereto); and all disclosures contained or incorporated by reference in the SEC Documents
regarding “non-GAAP financial measures” (as such term is defined by the rules and regulations of the Commission) comply
in all material respects with Regulation G of the Exchange Act and Item 10 of Regulation S-K under the Securities Act, to the extent
applicable. The interactive data in eXtensible Business Reporting Language included or incorporated by reference in the SEC
Documents fairly presents the information called for in all material respects and has been prepared in accordance with the
SEC’s rules and guidelines applicable thereto.

 

     

     

    

 

Section 5.07       
Registration Statement and Prospectus. The Company and the transactions contemplated by this Agreement meet the requirements
for and comply with the conditions for the use of Form S-3 under the Securities Act. Each Registration Statement and the offer and sale
of Shares as contemplated hereby, if and when filed, will meet the requirements of Rule 415 under the Securities Act and shall comply
in all material respects with said Rule. Any statutes, regulations, contracts or other documents that are required to be described in
a Registration Statement or a Prospectus, or to be filed as exhibits to a Registration Statement have been so described or filed. Copies
of each Registration Statement, any Prospectus, and any such amendments or supplements thereto and all documents incorporated by reference
therein that were filed with the Commission on or prior to the date of this Agreement have been delivered, or are available through EDGAR,
to the Investor and its counsel. The Company has not distributed and, prior to the later to occur of each Settlement Date and completion
of the distribution of the Shares, will not distribute any offering material in connection with the offering or sale of the Shares other
than a Registration Statement and the Prospectus.

 

Section 5.08       
No Material Misstatement or Omission. Each Registration Statement, when it became or becomes effective, and any Prospectus,
on the date of such Prospectus or amendment or supplement, conformed and will conform in all material respects with the requirements of
the Securities Act. At each Purchase Notice Date, the Registration Statement, and the Prospectus, as of such date, will conform in all
material respects with the requirements of the Securities Act. Each Registration Statement, when it became or becomes effective, did not,
and will not, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading. Each Prospectus did not, or will not, include an untrue statement of a material fact or
omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading. The documents incorporated by reference in a Prospectus or any Prospectus Supplement did not, and any further documents filed
and incorporated by reference therein will not, when filed with the Commission, contain an untrue statement of a material fact or omit
to state a material fact required to be stated in such document or necessary to make the statements in such document, in light of the
circumstances under which they were made, not misleading. The foregoing shall not apply to statements in, or omissions from, any such
document made in reliance upon, and in conformity with, information furnished to the Company by the Investor specifically for use in the
preparation thereof.

 

Section 5.09        Conformity
with Securities Act and Exchange Act. Each Registration Statement, each Prospectus or any amendment or supplement thereto, and
the documents incorporated by reference in each Registration Statement, Prospectus or any amendment or supplement thereto, when such
documents were or are filed with the SEC under the Securities Act or the Exchange Act or became or become effective under the
Securities Act, as the case may be, conformed or will conform in all material respects with the requirements of the Securities Act
and the Exchange Act, as applicable. 

 

     

     

    

 

Section 5.10       
Equity Capitalization. As of the date hereof, the authorized capital of the Company consists of 510,000,000 shares of capital
stock, of which 500,000,000 shares are designated common stock, par value $0.0001 per share, and 10,000,000 shares are undesignated preferred
stock. As of the date hereof, the Company had 269,422,450 shares of common stock outstanding and no shares of preferred stock outstanding.

 

The Common Shares are registered
pursuant to Section 12(b) of the Exchange Act and is currently listed on the Principal Market under the trading symbol “GOEV.”
The Company has taken no action designed to, or reasonably likely to have the effect of, terminating the registration of the Common Shares
under the Exchange Act, delisting the Common Shares from the Principal Market, nor has the Company received any notification that the
Commission or the Principal Market is contemplating terminating such registration or listing. To the Company’s knowledge, it is
in compliance with all applicable listing requirements of the Principal Market.

 

Section 5.11       
Intellectual Property Rights. The Company and its Subsidiaries own or possess adequate rights or licenses to use all material
trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses,
approvals, governmental authorizations, trade secrets and rights, if any, necessary to conduct their respective businesses as now conducted,
except as would not cause a Material Adverse Effect. The Company and its Subsidiaries have not received written notice of any infringement
by the Company or its Subsidiaries of trademark, trade name rights, patents, patent rights, copyrights, inventions, licenses, service
names, service marks, service mark registrations, or trade secrets, except as would not cause a Material Adverse Effect. To the knowledge
of the Company, there is no material claim, action or proceeding being made or brought against, or to the Company’s knowledge, being
threatened against the Company or its Subsidiaries regarding trademark, trade name, patents, patent rights, invention, copyright, license,
service names, service marks, service mark registrations, trade secret or other infringement; and, except as would not cause a Material
Adverse Effect, the Company is not aware of any facts or circumstances which might give rise to any of the foregoing.

 

Section 5.12       
Employee Relations. Neither the Company nor any of its Subsidiaries is involved in any labor dispute nor, to the knowledge
of the Company or any of its Subsidiaries, is any such dispute threatened, in each case which is reasonably likely to cause a Material
Adverse Effect.

 

Section 5.13       Environmental
Laws. The Company and its Subsidiaries (i) have not received written notice alleging any failure to comply in all material
respects with all Environmental Laws (as defined below), (ii) have received all permits, licenses or other approvals required of
them under applicable Environmental Laws to conduct their respective businesses and (iii) have not received written notice alleging
any failure to comply with all terms and conditions of any such permit, license or approval where, in each of the foregoing clauses
(i), (ii) and (iii), the failure to so comply would be reasonably expected to have, individually or in the aggregate, a Material
Adverse Effect. The term “Environmental Laws” means all applicable federal, state and local laws relating to
pollution or protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater,
land surface or subsurface strata), including, without limitation, laws relating to emissions, discharges, releases or threatened
releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous
Materials”) into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand
letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations issued, entered,
promulgated or approved thereunder.

 

     

     

    

 

Section 5.14       
Title. Except as would not cause a Material Adverse Effect, the Company (or its Subsidiaries) have indefeasible fee simple
or leasehold title to its properties and material assets owned by it, free and clear of any pledge, lien, security interest, encumbrance,
claim or equitable interest other than such as are not material to the business of the Company. Any real property and facilities held
under lease by the Company and its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as
are not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company and its
Subsidiaries.

 

Section 5.15       
Insurance. The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against
such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which
the Company and its Subsidiaries are engaged. The Company has no reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business
at a cost that would not have a Material Adverse Effect.

 

Section 5.16       
Regulatory Permits. Except as would not cause a Material Adverse Effect, the Company and its Subsidiaries possess all material
certificates, authorizations and permits issued by the appropriate federal, state or foreign regulatory authorities necessary to own their
respective businesses, and neither the Company nor any such Subsidiary has received any written notice of proceedings relating to the
revocation or modification of any such certificate, authorization or permits.

 

Section 5.17       
Internal Accounting Controls. The Company maintains a system of internal accounting controls sufficient to provide reasonable
assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and
to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization
and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is
taken with respect to any differences, and management is not aware of any material weaknesses that are not disclosed in the SEC Documents
as and when required.

 

Section 5.18        Absence
of Litigation. Except as disclosed in the SEC Documents, there is no action, suit, proceeding, inquiry or investigation before
or by any court, public board, government agency, self-regulatory organization or body pending against or affecting the Company, the
Common Shares or any of the Company’s Subsidiaries, wherein an unfavorable decision, ruling or finding would have a Material
Adverse Effect.

 

     

     

    

 

Section 5.19       
Tax Status. Except as would not have a Material Adverse Effect, each of the Company and its Subsidiaries (i) has timely
made or filed all foreign, federal and state income and all other tax returns, reports and declarations required by any jurisdiction to
which it is subject, (ii) has timely paid all taxes and other governmental assessments and charges that are material in amount, shown
or determined to be due on such returns, reports and declarations, except those being contested in good faith and (iii) has set aside
on its books provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports
or declarations apply. Except as would not have a Material Adverse Effect, the Company has not received written notification any unpaid
taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company and its Subsidiaries
know of no basis for any such claim where failure to pay would cause a Material Adverse Effect.

 

Section 5.20       
Certain Transactions. Except as disclosed in the SEC Documents or as not required to be disclosed pursuant to Applicable
Laws, none of the officers or directors of the Company is presently a party to any transaction with the Company (other than for services
as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services
to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer or director,
or to the knowledge of the Company, any corporation, partnership, trust or other entity in which any officer or director has a substantial
interest or is an officer, director, trustee or partner.

 

Section 5.21       
Rights of First Refusal. The Company is not obligated to offer the Common Shares offered hereunder on a right of first refusal
basis to any third parties including, but not limited to, current or former shareholders of the Company, underwriters, brokers, agents
or other third parties.

 

Section 5.22       
Dilution. The Company is aware and acknowledges that issuance of Common Shares hereunder could cause dilution to existing
shareholders and could significantly increase the outstanding number of Common Shares.

 

Section 5.23      
Acknowledgment Regarding Investor’s Purchase of Shares. The Company acknowledges and agrees that the Investor is acting
solely in the capacity of an arm’s length investor with respect to this Agreement and the transactions contemplated hereunder. The
Company further acknowledges that the Investor is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity)
with respect to this Agreement and the transactions contemplated hereunder and any advice given by the Investor or any of its representatives
or agents in connection with this Agreement and the transactions contemplated hereunder is merely incidental to the Investor’s purchase
of the Shares hereunder. The Company is aware and acknowledges that it shall not be able to request Advances under this Agreement if the
Registration Statement is not effective or if any issuances of Common Shares pursuant to any Advances would violate any rules of the Principal
Market. The Company acknowledged and agrees that it is capable of evaluating and understanding, and understands and accepts, the terms,
risks and conditions of the transactions contemplated by this Agreement.

 

     

     

    

 

Section 5.24       Finder’s
Fees. Neither the Company nor any of the Subsidiaries has incurred any liability for any finder’s fees, brokerage commissions
or similar payments in connection with the transactions herein contemplated. 

 

Section 5.25       
Relationship of the Parties. Neither the Company, nor any of its subsidiaries, affiliates, nor any person acting on its
or their behalf is a client or customer of the Investor or any of its affiliates and neither the Investor nor any of its affiliates has
provided, or will provide, any services to the Company or any of its affiliates, its subsidiaries, or any person acting on its or their
behalf. The Investor’s relationship to Company is solely as investor as provided for in the Transaction Documents. 

 

Section 5.26       
Forward-Looking Statements. No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section
21E of the Exchange Act) contained in the Registration Statement or a Prospectus will be made or reaffirmed without a reasonable basis
or will be disclosed other than in good faith.

 

Section 5.27       
Compliance with Laws. The Company and each of its Subsidiaries are in compliance with Applicable Laws; the Company has not
received a notice of non-compliance, nor knows of, nor has reasonable grounds to know of, any facts that any director, officer, or employee
of the Company or any Subsidiary nor, to the Company’s knowledge, any agent, affiliate or other person acting on behalf of the Company
or any Subsidiary, has not complied with Applicable Laws, or could give rise to a notice of non-compliance with Applicable Laws, and is
not aware of any pending change or contemplated change to any applicable law or regulation or governmental position; in each case that
would have a Material Adverse Effect on the business of the Company or the business or legal environment under which the Company operates.

 

Section 5.28        Sanctions
Matters. Neither the Company nor any of its Subsidiaries (collectively, the “Entity”), nor any director,
officer of the Company nor, to the knowledge of the Company, any employee, agent, affiliate or representative of the Company or any
director or officer of any Subsidiary, is a Person that is, or is owned or controlled by a Person that is (i) the subject of
any sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign Asset Control
(“OFAC”), the United Nations Security Council, the European Union, Her Majesty’s Treasury, or other
relevant sanctions authorities, including, without limitation, designation on OFAC’s Specially Designated Nationals and
Blocked Persons List or OFAC’s Foreign Sanctions Evaders List or other relevant sanctions authority (collectively,
 “Sanctions”), nor (ii) located, organized or resident in a country or territory that is the subject of
Sanctions that broadly prohibit dealings with that country or territory (including, without limitation, the Crimea region of the
Ukraine, Cuba, Iran, North Korea, Sudan and Syria (the “Sanctioned Countries”)). The Entity will not, directly
or, to its knowledge, indirectly, use the proceeds from the sale of Shares, or lend, contribute or otherwise make available such
proceeds to any subsidiary, joint venture partner or other Person (a) to fund or facilitate any activities or business of or
with any Person or in any country or territory that, at the time of such funding or facilitation, is the subject of Sanctions or is
a Sanctioned Country, or (b) in any other manner that will result in a violation of Sanctions or Applicable Laws by any Person
(including any Person participating in the transactions contemplated by this agreement, whether as underwriter, advisor, investor or
otherwise). For the past five years, the Entity has not engaged in, and is now not engaged in, any dealings or transactions with any
Person, or in any country or territory, that at the time of the dealing or transaction is or was the subject of Sanctions or was a
Sanctioned Country.

 

     

     

    

 

Article VI. Indemnification

 

The Investor and the Company
represent to the other the following with respect to itself:

 

Section 6.01      
Indemnification by the Company. In consideration of the Investor’s execution and delivery of this Agreement, and in
addition to all of the Company’s other obligations under this Agreement, the Company shall defend, protect, indemnify and hold harmless
the Investor and its investment manager, Yorkville Advisors Global, LP, and each of their respective officers, directors, managers, members,
partners, employees and agents (including, without limitation, those retained in connection with the transactions contemplated by this
Agreement) and each person who controls the Investor within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act (collectively, the “Investor Indemnitees”) from and against any and all actions, causes of action, suits, claims,
losses, costs, penalties, fees, liabilities and damages, and reasonable and documented expenses in connection therewith (irrespective
of whether any such Investor Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable
attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by the Investor Indemnitees or any
of them as a result of, or arising out of, or relating to (a) any untrue statement or alleged untrue statement of a material fact contained
in the Registration Statement for the registration of the Shares as originally filed or in any amendment thereof, or in any related prospectus,
or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the statements therein not misleading; provided, however,
that the Company will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is
based upon any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and in
conformity with written information furnished to the Company by or on behalf of the Investor specifically for inclusion therein; (b) any
material misrepresentation or breach of any material representation or material warranty made by the Company in this Agreement or any
other certificate, instrument or document contemplated hereby or thereby; or (c) any material breach of any material covenant, material
agreement or material obligation of the Company contained in this Agreement or any other certificate, instrument or document contemplated
hereby or thereby. To the extent that the foregoing undertaking by the Company may be unenforceable under Applicable Law, the Company
shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities, which is permissible under
Applicable Law.

 

Section 6.02        Indemnification
by the Investor. In consideration of the Company’s execution and delivery of this Agreement, and in addition to all of the
Investor’s other obligations under this Agreement, the Investor shall defend, protect, indemnify and hold harmless the Company
and all of its officers, directors, shareholders, employees and agents (including, without limitation, those retained in connection
with the transactions contemplated by this Agreement) and each person who controls the Investor within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act (collectively, the “Company Indemnitees”) from and against
any and all Indemnified Liabilities incurred by the Company Indemnitees or any of them as a result of, or arising out of, or
relating to (a) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement for the
registration of the Shares as originally filed or in any amendment thereof, or in any related prospectus, or in any amendment
thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading; provided, however, that the
Investor will only be liable for written information relating to the Investor furnished to the Company by or on behalf of the
Investor specifically for inclusion in the documents referred to in the foregoing indemnity, and will not be liable in any such case
to the extent that any such loss, claim, damage or liability arises out of or is based upon any such untrue statement or alleged
untrue statement or omission or alleged omission made therein in reliance upon and in conformity with written information furnished
to the Investor by or on behalf of the Company specifically for inclusion therein; (b) any misrepresentation or breach of any
representation or warranty made by the Investor in this Agreement or any instrument or document contemplated hereby or thereby
executed by the Investor; or (c) any breach of any covenant, agreement or obligation of the Investor contained in this Agreement or
any other certificate, instrument or document contemplated hereby or thereby executed by the Investor. To the extent that the
foregoing undertaking by the Investor may be unenforceable under Applicable Laws, the Investor shall make the maximum contribution
to the payment and satisfaction of each of the Indemnified Liabilities, which is permissible under Applicable Laws.

 

     

     

    

 

Section 6.03       Notice
of Claim. Promptly after receipt by an Investor Indemnitee or Company Indemnitee of notice of the commencement of any action or
proceeding (including any governmental action or proceeding) involving an Indemnified Liability, such Investor Indemnitee or Company
Indemnitee, as applicable, shall, if a claim for an Indemnified Liability in respect thereof is to be made against any indemnifying
party under this Article VI, deliver to the indemnifying party a written notice of the commencement thereof; but the failure to so
notify the indemnifying party will not relieve it of liability under this Article VI except to the extent the indemnifying party is
prejudiced by such failure. The indemnifying party shall have the right to participate in, and, to the extent the indemnifying party
so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel
mutually reasonably satisfactory to the indemnifying party and the Investor Indemnitee or Company Indemnitee, as the case may be;
provided, however, that an Investor Indemnitee or Company Indemnitee shall have the right to retain its own counsel with the actual
and reasonable third party fees and expenses of not more than one counsel for such Investor Indemnitee or Company Indemnitee to be
paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation by
such counsel of the Investor Indemnitee or Company Indemnitee and the indemnifying party would be inappropriate due to actual or
potential differing interests between such Investor Indemnitee or Company Indemnitee and any other party represented by such counsel
in such proceeding. The Investor Indemnitee or Company Indemnitee shall cooperate fully with the indemnifying party in connection
with any negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying party
all information reasonably available to the Investor Indemnitee or Company Indemnitee which relates to such action or claim. The
indemnifying party shall keep the Investor Indemnitee or Company Indemnitee reasonably apprised as to the status of the defense or
any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action, claim or
proceeding effected without its prior written consent, provided, however, that the indemnifying party shall not unreasonably
withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent of the Investor Indemnitee
or Company Indemnitee, consent to entry of any judgment or enter into any settlement or other compromise which does not include as
an unconditional term thereof the giving by the claimant or plaintiff to such Investor Indemnitee or Company Indemnitee of a release
from all liability in respect to such claim or litigation. Following indemnification as provided for hereunder, the indemnifying
party shall be subrogated to all rights of the Investor Indemnitee or Company Indemnitee with respect to all third parties, firms or
corporations relating to the matter for which indemnification has been made. The indemnification required by this Article VI shall
be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received
and payment therefor is due.

 

     

     

    

 

Section
6.04        Remedies.
The remedies provided for in this Article VI are not exclusive and shall not limit
any right or remedy which may be available to any indemnified person at law or equity. The
obligations of the parties to indemnify or
make contribution under this Article VI shall survive expiration or termination of this Agreement for a period of three years.
Notwithstanding anything to the contrary under this Agreement or Applicable Laws, no party shall be entitled to any indemnification pursuant
to this Article VI (other than claims for any damages resulting from fraud) until the
aggregate amount of all such damages that would otherwise be indemnifiable to such party equals or exceeds $25,000 (the “Basket”),
at which time such party shall be entitled to indemnification for the full amount of all damages (including all damages incurred prior
to exceeding the Basket).

 

Section 6.05       
Limitation of liability. Notwithstanding the foregoing, no party shall be entitled to recover from the other party for punitive,
indirect, incidental or consequential damages.

 

Article VII.

Additional Covenants

 

The Company covenants with the
Investor, and the Investor covenants with the Company, as follows, which covenants of one party are for the benefit of the other party,
during the Commitment Period (and with respect to the Company, for the period following the termination of this Agreement specified in
Article X pursuant to and in accordance with Article X:

 

Section 7.01        
Registration Statement.

 

		(a)	The Registration Statement. The Company has filed, in
accordance with the provisions of the Securities Act and the rules and regulations thereunder, with the SEC a shelf registration statement
on Form S-3 (File Number 333-264842) (the “Initial Registration Statement”) including a base prospectus, with respect
to the issuance and sale of securities by the Company, including Common Shares, which contains, among other things a Plan of Distribution
section disclosing the methods by which the Company may sell the Common Shares. The Initial Registration Statement was declared effective
on May 18, 2022 and remains in effect on the date hereof. Except where the context otherwise requires, the Initial Registration Statement,
as amended when it became effective, including all documents filed as part thereof or incorporated by reference therein, and including
any information contained in a Prospectus subsequently filed with the SEC pursuant to Rule 424(b) under the Securities Act or deemed
to be a part of the Initial Registration Statement pursuant to Rule 430B of the Securities Act, is herein called the “Registration
Statement.”

 

     

     

    

 

		(b)	Initial Disclosure. Promptly after the date hereof (and
prior to, or simultaneously with the Company delivering a Request to the Investor hereunder), the Company shall file with the SEC a report
on Form 8-K or such other appropriate form as determined by counsel to the Company, relating to the transactions contemplated by this
Agreement and a preliminary Prospectus Supplement pursuant to Rule 424(b) of the Securities Act disclosing all information relating to
the transaction contemplated hereby required to be disclosed therein and an updated Plan of Distribution, including, without limitation,
the name of the Investor, the number of Shares being offered hereunder, the terms of the offering, the purchase price of the Shares,
and other material terms of the offering, and any other information or disclosure necessary to register the transactions contemplated
herein (collectively, the “Initial Disclosure”) and shall provide the Investor with 24 hours to review the Initial
Disclosure prior to its filing. Promptly, and in any event no later than two days after each Purchase Notice Date, the Company shall
file with the SEC a Prospectus Supplement pursuant to Rule 424(b) of the Securities Act disclosing all information relating to the particular
Advance to be disclosed therein, including, without limitation, the number of Shares offered and the purchase price of the Shares, and
other material terms of the particular offering, and any other information or disclosure necessary to register the Shares issued pursuant
to such Advance.

 

		(c)	Maintaining a Registration Statement. The Company shall
use commercially reasonable efforts to maintain the effectiveness of any Registration Statement with respect to the Shares at all times
there are outstanding Pre-Paid Advances. Notwithstanding anything to the contrary contained in this Agreement, the Company shall ensure
that, when filed, each Registration Statement (including, without limitation, all amendments and supplements thereto) and the prospectus
(including, without limitation, all amendments and supplements thereto) used in connection with such Registration Statement shall not
contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make
the statements therein (in the case of prospectuses, in the light of the circumstances in which they were made) not misleading.

 

		(d)	Filing Procedures. Not less than one business day prior
to the filing of a Registration Statement and not less than one business day prior to the filing of any related amendments and supplements
to any Registration Statement (except for any amendments or supplements caused by the filing of any annual reports on Form 10-K, quarterly
reports on Form 10-Q, current reports on Form 8-K, and any similar or successor reports), the Company shall furnish to the Investor copies
of all such documents proposed to be filed, which documents (other than those filed pursuant to Rule 424 promulgated under the Securities
Act) will be subject to the reasonable and prompt review of the Investor (in each of which cases, if such document contains material
non-public information as consented to by the Investor pursuant to Section 7.18, the information provided to Investor will be kept strictly
confidential until filed and treated as subject to Section 7.07). The Investor shall furnish comments on a Registration Statement and
any related amendment and supplement to a Registration Statement to the Company within 24 hours of the receipt thereof. If
the Investor fails to provide comments to the Company within such 24-hour period, then the Registration Statement, related amendment
or related supplement, as applicable, shall be deemed accepted by the Investor in the form originally delivered by the Company to the
Investor.

 

     

     

    

 

		(e)	Delivery of Final Documents. The Company shall furnish
to the Investor without charge, (i) at least one copy of each Registration Statement as declared effective by the SEC and any amendment(s)
thereto, including financial statements and schedules, all documents incorporated therein by reference, all exhibits and each preliminary
prospectus, (ii) at the request of the Investor, at least one copy of the final prospectus included in such Registration Statement and
all amendments and supplements thereto (or such other number of copies as the Investor may reasonably request) and (iii) such other documents
as the Investor may reasonably request from time to time in order to facilitate the disposition of the Common Shares owned by the Investor
pursuant to a Registration Statement. Filing of the forgoing with the SEC via its EDGAR system shall satisfy the requirements of this
Section.

 

		(f)	Amendments and Other Filings. The Company shall (i) prepare
and file with the SEC such amendments (including post-effective amendments) and supplements to a Registration Statement and the
related prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to Rule 424 promulgated
under the Securities Act, as may be necessary to keep such Registration Statement effective at all times during the Commitment Period.

 

		(g)	Blue-Sky. The Company shall use its commercially reasonable
efforts to, if required by Applicable Laws, (i) register and qualify the Common Shares covered by a Registration Statement under such
other securities or “blue sky” laws of such jurisdictions in the United States as the Investor reasonably requests, (ii) prepare
and file in those jurisdictions, such amendments (including post-effective amendments) and supplements to such registrations and qualifications
as may be necessary to maintain the effectiveness thereof during the Commitment Period, (iii) take such other actions as may be necessary
to maintain such registrations and qualifications in effect at all times during the Commitment Period, and (iv) take all other actions
reasonably necessary or advisable to qualify the Common Shares for sale in such jurisdictions; provided, however, that the Company shall
not be required in connection therewith or as a condition thereto to (w) make any change to its Articles of Incorporation or Bylaws or
any other organizational documents of the Company or any of its Subsidiaries, (x) qualify to do business in any jurisdiction where it
would not otherwise be required to qualify but for this 0, (y) subject itself to general taxation in any such jurisdiction, or (z) file
a general consent to service of process in any such jurisdiction. The Company shall promptly notify the Investor of the receipt by the
Company of any notification with respect to the suspension of the registration or qualification of any of the Common Shares for sale
under the securities or “blue sky” laws of any jurisdiction in the United States or its receipt of actual notice of the initiation
or threat of any proceeding for such purpose.

 

Section 7.02       
Listing of Common Shares. As of each Purchase Notice Date, the Shares to be sold by the Company from time to time hereunder
will have been registered under Section 12(b) of the Exchange Act and approved for listing on the Principal Market, subject to official
notice of issuance.

 

     

     

    

 

Section 7.03        Opinion
of Counsel. Prior to the date of the delivery by the Company of the first Request, the Investor shall have received an opinion letter
from counsel to the Company in form and substance reasonably satisfactory to the Investor.

 

Section 7.04      
Exchange Act Registration. The Company will use commercially reasonable efforts to file in a timely manner all reports and
other documents required of it as a reporting company under the Exchange Act and will not take any action or file any document (whether
or not permitted by Exchange Act or the rules thereunder) to terminate or suspend its reporting and filing obligations under the Exchange
Act.

 

Section 7.05       
Transfer Agent Instructions. For any time while there is a Registration Statement in effect for this transaction, the Company
shall (if required by the transfer agent for the Common Shares) cause legal counsel for the Company to deliver to the transfer agent for
the Common Shares (with a copy to the Investor) instructions to issue Common Shares to the Investor free of restrictive legends upon each
Advance if the delivery of such instructions are consistent with Applicable Law.

 

Section 7.06       Corporate
Existence. The Company will use commercially reasonable efforts to preserve and continue the corporate existence of the Company during
the Commitment Period.

 

Section 7.07        Notice
of Certain Events Affecting Registration; Suspension of Right to Make an Advance. The Company will promptly notify the Investor,
and confirm in writing, upon its becoming aware of the occurrence of any of the following events in respect of a Registration
Statement or related Prospectus (in each of which cases the information provided to Investor will be kept strictly confidential):
(i) except for requests made in connection with SEC investigations disclosed in the SEC Documents, receipt of any request for
additional information by the SEC or any other Federal or state governmental authority during the period of effectiveness of the
Registration Statement or any request for amendments or supplements to the Registration Statement or related Prospectus; (ii) the
issuance by the SEC or any other Federal governmental authority of any stop order suspending the effectiveness of the Registration
Statement or the initiation of any proceedings for that purpose; (iii) receipt of any notification with respect to the suspension of
the qualification or exemption from qualification of any of the Common Shares for sale in any jurisdiction or the initiation or
written threat of any proceeding for such purpose; (iv) the happening of any event that makes any statement made in the Registration
Statement or related Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any
material respect or that requires the making of any changes in the Registration Statement, related Prospectus or documents so that,
in the case of the Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein not misleading, and that in the case of the related
Prospectus, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading,
or of the necessity to amend the Registration Statement or supplement a related Prospectus to comply with the Securities Act or any
other law; (v) the Company’s reasonable determination that a post-effective amendment to the Registration Statement would be
appropriate and the Company will promptly make available to the Investor any such supplement or amendment to the related Prospectus;
(vi) the Common Shares shall cease to be authorized for listing on the Principal Market; or (vii) the Company fails to file in a
timely manner all reports and other documents required of it as a reporting company under the Exchange Act. The Investor shall not
deliver to the Company any Purchase Notice, and the Company shall not sell any Shares pursuant to any pending Purchase Notice,
during the continuation of any of the foregoing events (each of the events described in the immediately preceding clauses (i)
through (vii), inclusive, a “Material Outside Event”).

 

     

     

    

 

Section 7.08       
Market Activities. The Company will not, directly or indirectly, take any action designed to cause or result in, or that
constitutes or might reasonably be expected to constitute, the stabilization or manipulation of the price of any security of the Company
under Regulation M of the Exchange Act.

 

Section 7.09       
Expenses. The Company, whether or not the transactions contemplated hereunder are consummated or this Agreement is terminated,
will pay all expenses incident to the performance of its obligations hereunder, including but not limited to (i) the preparation, printing
and filing of the Registration Statement and each amendment and supplement thereto, of each prospectus and of each amendment and supplement
thereto; (ii) the preparation, issuance and delivery of any Shares issued pursuant to this Agreement, (iii) all fees and disbursements
of the Company’s counsel, accountants and other advisors (but not, for the avoidance doubt, the fees and disbursements of Investor’s
counsel, accountants and other advisors), (iv) the qualification of the Shares under securities laws in accordance with the provisions
of this Agreement, including filing fees in connection therewith, (v) the printing and delivery of copies of any prospectus and any amendments
or supplements thereto, (vi) the fees and expenses incurred in connection with the listing or qualification of the Shares for trading
on the Principal Market, or (vii) filing fees of the SEC and the Principal Market.

 

Section 7.10       
Current Report. The Company shall, not later than 9:00 a.m., New York City time, on the first business day after the date
of this Agreement, file with the SEC a Current Report on Form 8-K disclosing the execution of this Agreement by the Company
and the Investor (including any exhibits thereto, the “Current Report”). The Company shall provide the Investor and
its legal counsel a reasonable opportunity to comment on a draft of the Current Report prior to filing the Current Report with the SEC
and shall give due consideration to all such comments. From and after the filing of the Current Report with the SEC, the Company shall
have publicly disclosed all material, nonpublic information delivered to the Investor (or the Investor’s representatives or agents)
by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees, agents or representatives (if any)
in connection with the transactions contemplated by the Transaction Documents.  The Company understands and confirms that the Investor
will rely on the foregoing representations in effecting resales of Shares under the Registration Statement.

 

Section 7.11       
Use of Proceeds. The proceeds from the sale of the Shares by the Company to Investor shall be used by the Company in the
manner as will be set forth in the Prospectus included in any Registration Statement (and any post-effective amendment thereto) and any
Prospectus Supplement thereto filed pursuant to this Agreement, and in accordance with the terms and conditions of this Agreement.

 

Section 7.12       
Compliance with Laws. The Company shall comply in all material respects with all Applicable Laws.

 

     

     

    

 

Section 7.13       Selling
Restrictions. (i) Except as expressly set forth below, the Investor covenants that from and after the date hereof through and including
the Trading Day next following the expiration or termination of this Agreement as provided in Section 10.01 (the “Restricted
Period”), none of the Investor any of its officers, or any entity managed or controlled by the Investor (collectively, the
 “Restricted Persons” and each of the foregoing is referred to herein as a “Restricted Person”)
shall, directly or indirectly, (i) engage in any “short sale” (as such term is defined in Rule 200 of Regulation SHO
of the Exchange Act) of the Common Shares or (ii) engage in any hedging transaction, which establishes a net short position with
respect to the Common Shares, with respect to each of clauses (i) and (ii) hereof, either for its own principal account or for the
principal account of any other Restricted Person. Notwithstanding the foregoing, it is expressly understood and agreed that nothing contained
herein shall (without implication that the contrary would otherwise be true) prohibit any Restricted Person during the Restricted Period
from: (1) selling “long” (as defined under Rule 200 promulgated under Regulation SHO) the Shares; or (2) selling
a number of Common Shares equal to the number of Shares that such Restricted Person is unconditionally obligated to purchase under a
pending Purchase Notice but has not yet received from the Company or the Transfer Agent pursuant to this Agreement (which such sales
may be coded as “short exempt” by broker-dealers executing sell orders on behalf of the Investor).

 

Section 7.14       
Assignment. Neither this Agreement nor any rights or obligations of the parties hereto may be assigned to any other Person.

 

Section 7.15       
No Variable Rate Transactions. Except with respect to the Investor (including the Standby Equity Purchase Agreement with
YA II PN, Ltd., dated May 10, 2022), the Company shall not effect or enter into an agreement to effect any Variable Rate Transaction for
so long as any Pre-Paid Advance is outstanding, unless any outstanding Pre-Paid Advance will be fully repaid in connection with such transaction.

 

Section 7.16       
Material Non-Public Information. The Company covenants and agrees that, other than as expressly required by Section 7.01(d)
hereof, or, with the Investor’s consent pursuant to Section 7.18, it shall refrain from disclosing, and shall cause its officers,
directors, employees and agents to refrain from disclosing, any material non-public information (as determined under the Securities Act,
the Exchange Act, or the rules and regulations of the SEC) to the Investor without also disseminating such information to the public within
a reasonable time period thereafter, unless prior to disclosure of such information the Company identifies such information as being material
non-public information and provides the Investor with the opportunity to accept or refuse to accept such material non-public information
for review.

 

     

     

    

 

Section 7.17        Reservation
of Common Shares; Shareholder Vote. The
Company covenants that it will at all times reserve and keep available out of its authorized and unissued shares of Common Stock
solely for the purpose of issuance under this Agreement, as herein provided, free from preemptive rights or any other actual
contingent purchase rights of persons other than the Investor, not less than such number of shares of the Common Stock as shall be
issuable under the Pre-Paid Advances. The Company covenants that all shares of Common Stock that shall be so issuable shall, upon
issue, be duly and validly authorized, issued and fully paid, nonassessable.
If at any time that there are outstanding Pre-Paid Advances and the Company has insufficient (i) authorized but unissued Common
Shares or (ii) Common Shares to issue pursuant to the Exchange Cap, in each case, in order to satisfy the outstanding Pre-Paid
Advances in full, then the Company shall, within 45 days of written notice from the Investor, call and hold a meeting of its
shareholders (or take action by written consent) for the purpose of, as applicable, (y) amending the Company’s charter to
increase the number of authorized but unissued Common Shares and/or (z) approving the issuance of Common Shares pursuant to Advances
in excess of the maximum number of shares that are permitted to be issued in accordance with the rules and regulations of the
Principal Market. Any shareholder proposals submitted in accordance with the forgoing shall seek authorization of any amount not
less than two times the then-existing outstanding Pre-Paid Advances calculated using the VWAP of the Common Shares at the time such
proposals are submitted to the shareholders for a vote.

 

Section 7.18       
Prohibited Indebtedness. The Company shall not, and will
not permit any of its subsidiaries to directly or indirectly, enter into or incur any indebtedness or obligations evidenced by notes,
bonds, debentures, letter of credit, or other similar instruments (collectively, “Indebtedness”) with any officer,
director, related party, or affiliate unless: (A) the repayment of such Indebtedness has been fully subordinated to the payment of any
current or future Pre-Paid Advances on terms and conditions acceptable to the Investor, (B) such Indebtedness does not mature or otherwise
require or permit redemption or repayment prior to or on the 91st day after the maturity date of current or future Pre-Paid Advances;
and (C) such Indebtedness is not secured by any assets of the Company or its subsidiaries.

 

Article VIII.

Non-Exclusive Agreement

 

Notwithstanding anything contained
herein, this Agreement and the rights awarded to the Investor hereunder are non-exclusive, and the Company may, at any time throughout
the term of this Agreement and thereafter, issue and allot, or undertake to issue and allot, any shares and/or securities and/or convertible
notes, bonds, debentures, options to acquire shares or other securities and/or other facilities which may be converted into or replaced
by Common Shares or other securities of the Company, and to extend, renew and/or recycle any bonds and/or debentures, and/or grant any
rights with respect to its existing and/or future share capital.

 

Article IX.

Choice of Law/Jurisdiction

 

This Agreement shall be governed
by and interpreted in accordance with the laws of the State of New York without regard to the principles of conflict of laws. The parties
further agree that any action between them shall be heard in New York County, New York, and expressly consent to the jurisdiction and
venue of the Supreme Court of New York, sitting in New York County, New York and the United States District Court of the Southern District
of New York, sitting in New York, New York, for the adjudication of any civil action asserted pursuant to this Agreement.

 

     

     

    

 

Article X. Termination

 

Section 10.01   
Termination.

 

		(a)	Unless earlier terminated as provided hereunder, the Commitment Period shall terminate automatically on
the earliest of (i) the first day of the month next following the 18-month anniversary of the date hereof or (ii) the date on which
the Investor shall have made payment of Advances pursuant to this Agreement for Common Shares equal to the Commitment Amount. This Agreement
shall remain in effect so long as any amounts are due and owing by the Company to the Investor on any Pre-Paid Advance.

 

		(b)	The Company may terminate this Agreement effective upon five Trading Days’ prior written notice
to the Investor; provided that (i) there are no outstanding Purchase Notices, (ii) there are no outstanding Pre-Paid Advances which
have not be fully repaid, and (iii) the Company has paid all amounts owed to the Investor pursuant to this Agreement. This Agreement may
be terminated at any time by the mutual written consent of the parties, effective as of the date of such mutual written consent unless
otherwise provided in such written consent.

 

		(c)	Nothing in this Section 10.01 shall be deemed to release the Company or the Investor from any liability
for any breach under this Agreement, or to impair the rights of the Company and the Investor to compel specific performance by the other
party of its obligations under this Agreement. The indemnification provisions contained in Article VI shall survive termination hereunder.

 

Article XI. Notices

 

Other than with respect to
Purchase Notices, which must be in writing and will be deemed delivered on the day set forth in Section 2.01, any notices, consents, waivers,
or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have
been delivered (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile or e-mail if sent on a Trading Day,
or, if not sent on a Trading Day, on the immediately following Trading Day; (iii) 5 days after being sent by U.S. certified mail, return
receipt requested, (iv) 1 day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to
the party to receive the same. The addresses and facsimile numbers for such communications (except for Purchase Notices which shall be
delivered in accordance with Exhibit A hereof) shall be:

 

	If to the Company, to:	
    Canoo Inc.

    19951 Mariner Avenue

    Torrance, California 90503

	 	Attention: [****]
	 	
    Email: [****] 

	
     

    With a copy to (which shall not

    constitute notice or delivery of

    process) to:
	
     

    Canoo Inc.

    19951 Mariner Avenue

    Torrance, California 90503

	 	
    Attention: [****]

    Email: [****]

 

     

     

    

 

	If to the Investor(s):	YA II PN, Ltd.
	 	1012 Springfield Avenue
	 	Mountainside, NJ 07092
	 	Attention:        	[****]
	 	                          	[****]
	 	Telephone:      	[****]
	 	
    Email:  [****]

	 	 
	
    With a Copy (which shall not

    constitute notice or delivery of

    process) to:
	
    [****]

    1012 Springfield Avenue

    Mountainside, NJ 07092

	 	Telephone:      	[****]
	 	Email:                	[****]

 

Either may change its information contained in
this Article XI by delivering notice to the other party as set forth herein.

 

Article XII. Miscellaneous

 

Section 12.01   
Reimbursement of Fees, Costs and Expenses. If an Event of Default has occurred, then the Company shall reimburse the Investor
promptly for all reasonable and documented out-of-pocket fees, costs and expenses, including, without limitation, reasonable and documented
attorneys’ fees and expenses incurred by the Investor in any action in connection with this Agreement, including, without limitation,
those incurred: (i) during any workout, attempted workout, and/or in connection with the rendering of legal advice as to the Investor’s
rights, remedies and obligations, (ii) collecting any sums which become due to the Investor in accordance with the terms of this Agreement,
(iii) defending or prosecuting any proceeding or any counterclaim to any proceeding or appeal; or (iv) the protection, preservation or
enforcement of any rights or remedies of the Investor.

 

Section 12.02   
Counterparts. This Agreement may be executed in identical counterparts, both which shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. Facsimile or other
electronically scanned and delivered signatures, including by e-mail attachment, shall be deemed originals for all purposes of this Agreement.

 

Section 12.03   
Entire Agreement; Amendments. This Agreement supersedes all other prior oral or written agreements between the Investor,
the Company, their respective affiliates and persons acting on their behalf with respect to the matters discussed herein, and this Agreement
contains the entire understanding of the parties with respect to the matters covered herein and, except as specifically set forth herein,
neither the Company nor the Investor makes any representation, warranty, covenant or undertaking with respect to such matters. No provision
of this Agreement may be waived or amended other than by an instrument in writing signed by the parties to this Agreement.

 

     

     

    

 

Section 12.04   
Reporting Entity for the Common Shares. The reporting entity relied upon for the determination of the trading price or trading
volume of the Common Shares on any given Trading Day for the purposes of this Agreement shall be Bloomberg, L.P. or any successor thereto.
The written mutual consent of the Investor and the Company shall be required to employ any other reporting entity.

 

Section 12.05   
Structuring and Due Diligence Fee. Each of the parties shall pay its own fees and expenses (including the fees of any
attorneys, accountants, appraisers or others engaged by such party) in connection with this Agreement and the transactions contemplated
hereby, except that the Company shall pay to YA Global II SPV, LLC, a subsidiary of the Investor, a structuring fee in the amount of $10,000
on the date hereof.

 

Section 12.06   
Brokerage. Each of the parties hereto represents that it has had no dealings in connection with this transaction with any
finder or broker who will demand payment of any fee or commission from the other party. The Company on the one hand, and the Investor,
on the other hand, agree to indemnify the other against and hold the other harmless from any and all liabilities to any person claiming
brokerage commissions or finder’s fees on account of services purported to have been rendered on behalf of the indemnifying party
in connection with this Agreement or the transactions contemplated hereby.

 

Section 12.07   
THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES’ ACCEPTANCE
OF THIS AGREEMENT.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

     

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Standby Equity Purchase Agreement to be executed by the undersigned, thereunto duly authorized, as
of the date first set forth above.

 

	 	COMPANY:
	 	CANOO Inc.
	 	 	 	 
	 	By:	/s/ Tony Aquila
	 	Name:	Tony Aquila
	 	Title:	Executive Chairman and CEO
	 	 	 	 
	 	INVESTOR:
	 	YA II PN, Ltd.
	 	 	 	 
	 	By:	Yorkville Advisors Global, LP
	 	Its:	Investment Manager
	 	 	 	 
	 	 	By:	 Yorkville Advisors Global II, LLC  
	 	 	Its:	 General Partner
	 	 	 	 
	 	 	By:	/s/ Matt Beckman
	 	 	Name:	Matt Beckman
	 	 	Title:	MemberExhibit 10.2

 

 

 

July 20, 2022

 

Ladies and Gentlemen:

 

Reference is made to the Standby
Equity Purchase Agreement entered into on May 10, 2022 (the “SEPA”) between Canoo Inc., a Delaware corporation
(the “Issuer”) and YA II PN, Ltd. (“Investor”). Capitalized terms used herein and not otherwise
defined herein shall have the meaning assigned to them in the SEPA or Pre-Paid Advance Agreement (the “Agreement”), as applicable.

 

On the date hereof, the Issuer
and the Investor entered into the Agreement pursuant to which the Issuer may, from time to time, request pre-paid advances to be funded
by the Investor. For so long as the Agreement remains in effect, the parties hereby agree that the Issuer shall not be able to request
any Advances or any Pre-Advance Loans under the SEPA without the written consent of the Investor; except that, notwithstanding the foregoing,
the Company shall be permitted to execute Advances under the SEPA if (i) the Market Price is below the Floor Price, or (ii) there is
no balance outstanding under any Pre-Paid Advances under the Agreement. Upon termination or expiration of the Agreement, the Issuer shall
once again be able to request Advances or a Pre-Advance Loan, without limitations set forth herein, subject to, and on the terms and
conditions of the SEPA.

 

[Signature page follows.]

 

     

     

    

 

IN
WITNESS WHEREOF, each of the Investor and Issuer has executed or caused this letter agreement to be executed by its duly authorized
representative as of the date set forth above.

 

	INVESTOR:	 
	 	 
	YA II PN, LTD.	 
	 	 
	  By:	Yorkville Advisors Global, LP	 
	  Its:	Investment Manager	 

 

	 	By:	Yorkville Advisors Global II, LLC	 
	 	Its:	General Partner	 
	 	 

	 	By:	/s/ Matt Beckman	 
	 	Name:	Member	 

 

 

	ISSUER:	 
	 	 
	CANOO INC.	 
	 	 
	By:	/s/ Tony Aquila	 
	Name:	Tony Aquila	 
	Title:	Executive Chairman and CEO

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