1. DEFINITION. The following definitions shall apply for purposes of this Note.
“Business Day” means a weekday on which banks are open for general banking business in Boston, Massachusetts.
“Capped Price” means the price obtained by dividing $260,000,000 by the number of outstanding shares of Common Stock immediately prior to a deSPAC Transaction or Qualified Financing (as applicable) (assuming conversion of all securities convertible into shares of Common Stock and exercise of all issued or outstanding options and warrants, but excluding the equity securities of the Company issuable upon the conversion of the Notes and any other convertible securities).
“Common Stock” means the common stock of the Company (or any successor of the Company or ultimate parent entity following a deSPAC Transaction).
“Company” means, in addition to the Company identified in the opening paragraph of this Note, any corporation or other entity that succeeds to the Company’s obligations under this Note, whether by permitted assignment, by merger, consolidation, reorganization or otherwise.
“Converted Securities” means in the case of a Qualified Financing, a newly-created series of preferred stock of the Company that has all of the rights and privileges of, and votes together as a single class with, the Qualified New Securities, except that the Converted Securities have a liquidation preference per share (and the initial conversion price for purposes of price-based anti-dilution protection as well as the basis for any dividend rights) equal to the Conversion Price.
“Default Date” means the time at which the Balance of this Note is due and payable upon an Event of Default; provided, however that if the Event of Default is cured and the Note has not become due and payable pursuant to Section 2 or Section 4, if, and to the extent, expressly permitted in this Note, then the Default Date shall not thereafter be deemed to have occurred with regard to such Event of Default.
“deSPAC Transaction” means a business combination or other transaction pursuant to which the Company or any of its subsidiaries or all or substantially all of its or their respective assets, directly or indirectly, is merged into, consolidates with, is acquired by or acquires, or otherwise combines with, a blank check company, special purpose acquisition company or equivalent entity incorporated, formed or organized for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses, including, without limitation, the proposed business combination between the Company and Compute Health Acquisition Corp., a Delaware corporation (“CPUH”), pursuant to that certain Business Combination Agreement, dated as of February 9, 2023, by and among CPUH, the Company and the other parties thereto.
“Direct Listing” means the effectiveness of a registration statement filed under the Securities Act that registers shares of existing capital stock of the Company for resale not pursuant to an underwritten offering.
“Discounted Capped Price” means the price obtained by dividing $217,291,008 by the number of outstanding shares of Common Stock immediately prior to a deSPAC Transaction (assuming conversion of all securities convertible into shares of Common Stock and exercise of all issued or outstanding options and warrants, including the equity securities of the Company issuable upon the conversion of the Notes and any other convertible securities).
“Discounted Price” means the price obtained by multiplying the cash price per share of the Qualified New Securities issued to investors by 0.85.
“Event of Default” has the meaning set forth in Section 4.