Company: REE
Filing Date: 2025-03-19
Form Type: 424B5
Source: 0001213900-25-024847
Chunk: 19

Company: REE Automotive Ltd.
Filing Date: 2025-03-19
Form: 424B5
Chunk 19
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 Rights

On the liquidation, dissolution, distribution of assets or winding
up of REE, holders of Class B Ordinary Shares will not be entitled to receive any distribution of REE assets of whatever kind.

Transfers

Holders of Class B Ordinary Shares are restricted from transferring
such shares other than to a Permitted Class B Owner.

Mandatory Suspension

Each Class B Ordinary Share will be automatically suspended on July
22, 2031. In addition, the Class B Ordinary Shares will be suspended and have no further voting rights with respect to any Founder:

| i. | who holds less than 33% of the Class A Ordinary Shares held by such Founder immediately following the Effective Time (including those 
 underlying vested and unvested options);                                                                                              |

| ii. | whose employment as an executive officer is terminated other than for cause or who resigns as an officer of REE and also ceases to 
 serve as a director;                                                                                                               |

| iii. | who dies or is permanently disabled, except that if the other Founder holds Class B Ordinary Shares at such time, then the Class B 
 Ordinary Shares held by the Founder who dies or is permanently disabled will automatically be transferred to the other Founder; or |

| iv. | whose employment as an executive officer is terminated for cause. |

A termination for cause requires a unanimous decision of the board
of directors of REE other than the affected Founder.

A termination for “Cause” shall occur 30 days after written
notice by REE to a Founder (based upon the unanimous decision of the board of directors, other than such Founder) of a termination for
Cause if such Founder shall have failed to cure or remedy such matter, if curable, within such thirty (30) day period. In the event that
the basis for Cause is not curable, then such 30 day cure period shall not be required, and such termination shall be effective 10 days
after the date REE delivers notice of such termination for Cause. “Cause” shall mean REE’s termination of a Founder’s
employment with REE or any of its subsidiaries as a result of: (i) fraud, embezzlement, (ii) any willful act of material dishonesty by
such Founder in connection with or relating to such Founder’s employment with REE or any of its subsidiaries; (iii) theft or misappropriation
of property, information or other assets by such Founder in connection with such Founder’s employment with REE or any of its