Item 1.01. Entry into a Material Definitive Agreement

On April 2, 2021, QuantumScape Battery, Inc. (the "Company"), a wholly-owned subsidiary of QuantumScape Corporation ("Parent"), entered into a Lease Agreement (the "Lease") with Exeter 1710 Automation, LLC, a Delaware limited liability company (the "Landlord"), for premises consisting of approximately 196,647 rentable square feet of space located at 1710 Automation Way, San Jose, CA 95131 (the "Property"). The obligations of the Company under the Lease are guaranteed by Parent pursuant to a Guaranty executed by Parent on April 2, 2021.

The initial term of the Lease commences on December 1, 2021 and expires September 30, 2032, unless earlier terminated in accordance with the Lease. The Company has options to extend the term of the Lease for two additional five-year periods.

The Company will pay monthly base rent over the term of the Lease of between approximately $400,000 and $530,000 and the Company will receive approximately ten (10) months of abated monthly base rent during the first two (2) years of the Lease term. In addition, the Lease requires the Company to reimburse the Landlord for certain operating expenses related to the Property, including real estate taxes and insurance costs.

The foregoing description of the terms of the Lease does not purport to be complete and is qualified in its entirety by reference to the full text of the Lease, which will be filed with the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2021 or via an amendment to this Current Report on Form 8-K.

The representations, warranties and covenants contained in the Lease were made only for purposes of such agreement and as of specific dates, were solely for the benefit of the parties to the Lease, and may be subject to limitations agreed upon by the contracting parties. Accordingly, the Lease is incorporated herein by reference only to provide investors with information regarding the terms of the Lease, and not to provide investors with any other factual information regarding the Company or its business, and should be read in conjunction with the disclosures in the Company's periodic reports and other filings with the Securities and Exchange Commission.

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