Exhibit 10.12


 


September 16, 2021


 


Brett Adcock


[Address omitted]


 


Re:           Employment Terms


 


Dear Brett:


 


On behalf of Archer Aviation Inc. (the “Company”
or “New Archer”), being the public company resulting from the business combination of Atlas Crest Investment Corp.,
Artemis Acquisition Sub Inc., and Archer Aviation Inc. (“Archer”) pursuant to the Amended and Restated Business Combination
Agreement by and among the parties thereto, dated July 29, 2021 (the “Business Combination Agreement”), I am pleased
to offer you employment at the Company on the terms set forth in this offer letter agreement (the “Agreement”). As
discussed, the terms of this Agreement govern with respect to your employment, which is anticipated to start on the Closing Date (as defined
in the Business Combination Agreement (such actual date of your commencement of employment referred to herein as the “Start Date”).


 


1.             Employment
by the Company.


 


(a)               Position.
You will serve as the Company’s Co-Chief Executive Officer (“Co-CEO”), reporting to the Company’s Board
of Directors (the “Board”). During the term of your employment with the Company, you will devote your best efforts
and substantially all of your business time and attention to the business of the Company, except for approved vacation periods and reasonable
periods of illness or other incapacities permitted by the Company’s general employment policies. It is anticipated that such business
of the Company will include your providing services to entities that are affiliated with the Company, without further or additional compensation
or benefits other than as set forth in this Agreement.


 


(b)              
Duties and Location. You will perform those duties and responsibilities as are customary for the position of Co-CEO and as
may be directed by the Board. You will work out of the Company’s offices in Palo Alto, California, or if the offices have not yet
reopened, you will initially work remotely until the Company’s offices re-open. Notwithstanding the foregoing, the Company reserves
the right to reasonably require you to perform your duties at places other than your primary office location from time to time, and to
require reasonable business travel. Subject to the Good Reason and other provisions contained herein, the Company may modify your job
title, work location and duties as it deems necessary and appropriate in light of the Company’s needs and interests from time to
time.


 


2.             Base
Salary and Employee Benefits.


 


(a)               Salary.
You will be paid a base salary at the rate of $600,000 per year, less applicable payroll deductions and withholdings. Your base salary
will be paid on the Company’s ordinary payroll cycle. As an exempt salaried employee, you will be required to work the Company’s
normal business hours, and such additional time as appropriate for your work assignments and position, and you will not be entitled to
overtime compensation.


 


(b)               Annual
Bonus. You will be eligible for an annual discretionary performance bonus with a target amount of fifty percent (50%) of your
base salary, less payroll deductions and withholdings. The amount of this bonus will be determined in the sole discretion of the
Company based upon achievement of target objectives as established by the Board or a committee of the Board (the
 “Compensation Committee”) in its sole discretion. The Company will pay you this bonus, if any, no later than
March 15th of the following calendar year. The bonus is not earned until paid, is subject to your continuous employment with the
Company through the payment date, and no pro-rated amount will be paid if your employment terminates for any reason prior to the
bonus payment date.


 






     

     


    

 


Brett Adcock


September 16, 2021


Page 2


 


(c)              
Employee Benefits. As a regular full-time employee, you will be eligible to participate in the Company’s standard employee
benefits offered to executive level employees, as in effect from time to time and subject to the terms and conditions of the benefit plans
and applicable Company policies. A full description of these benefits is available upon request. The Company may change your compensation
and benefits from time to time in its discretion.


 


3.             Expenses.
The Company will reimburse you for reasonable travel, entertainment or other expenses incurred by you in furtherance of or in connection
with the performance of your duties hereunder, in accordance with the Company’s expense reimbursement policies and practices as
in effect from time to time.


 


4.             Equity
Awards. Immediately prior to the closing of the transactions contemplated by the Business Combination Agreement (the “Closing”),
you will be granted such number of restricted stock units (the “Founder Grants”) in accordance with the Restricted
Stock Unit Award Grant Notice (the “RSU Agreement”) under the Archer Amended and Restated 2019 Stock Plan (as
may be amended following the date hereof to permit the grant of the Founder Grants), that, taken together with your existing equity ownership,
would result in you owning 18% of the Total Outstanding Capitalization (as defined in the Business Combination Agreement) on Closing.
The Founder Grants will vest in accordance with the terms set forth in Exhibit E to the Business Combination Agreement as memorialized
in the RSU Agreement. For greater certainty, if the Closing does not occur, the Founder Grants shall be automatically forfeited and you
shall have no further rights or entitlements thereto.


 


5.             Compliance
with Confidentiality Information Agreement and Company Policies. As a condition of employment, you agree to sign and comply with
the Company’s Employee Confidential Information and Inventions Assignment Agreement (the “Confidentiality Agreement”),
attached hereto as Exhibit A. In addition, you are required to abide by the Company’s policies and procedures (including
but not limited to the Company’s employee Handbook), as adopted or modified from time to time within the Company’s discretion,
and acknowledge in writing that you have read and will comply with such policies and procedures (and provide additional such acknowledgements
as such policies and procedures may be modified from time to time); provided, however, that in the event the terms of this Agreement
differ from or are in conflict with the Company’s general employment policies or practices, this Agreement shall control.


 


6.             Protection
of Third Party Information. By signing this Agreement, you are representing that you have full authority to accept this position
and perform the duties of the position without conflict with any other obligations and that you are not involved in any situation that
might create, or appear to create, a conflict of interest with respect to your loyalty to or duties for the Company. You specifically
warrant that you are not subject to an employment agreement or restrictive covenant preventing full performance of your duties to the
Company. In addition, you agree not to bring to the Company or use in the performance of your responsibilities at the Company any materials
or documents of a former employer that are not generally available to the public, unless you have obtained express written authorization
from the former employer for their possession and use. You also agree to honor all obligations to former employers during your employment
with the Company.


 


7.             At-Will
Employment Relationship. Your employment relationship with the Company is at will. Accordingly, you may terminate your employment
with the Company at any time and for any reason whatsoever simply by notifying the Company; and the Company may terminate your employment
at any time, with or without Cause (as defined herein) or advance notice.


 






     

     


    

 


Brett Adcock


September 16, 2021


Page 3


 



8.             Severance in the Event of Qualifying Termination Absent a Change of Control. If, at any time, the Company terminates your
employment without Cause (other than as a result of your death or disability) or you resign for Good Reason (either such termination
referred to as a “Qualifying Termination”), provided such termination or resignation constitutes a Separation from
Service (as defined under Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder, a “Separation
from Service”), then in addition the Accrued Obligations (defined below), and subject to Sections 10 (“Clawback and Recovery”),
12 (“Conditions to Receipt of Severance Benefits and Accelerated Vesting”) and 13 (“Return of Company Property”)
below and your continued compliance with the terms of this Agreement (including without limitation the Confidentiality Agreement), the
Company will provide you with the following severance benefits (the “Severance Benefits”):


 


(a)            Cash
Severance. The Company will pay you, as cash severance, an amount equal to twenty-four (24) months of your base salary in effect
as of your Separation from Service date (ignoring any reductions that may give rise to Good Reason), less standard payroll deductions
and tax withholdings (the “Severance”). The Severance will be paid in installments in the form of continuation of
your base salary payments, paid on the Company’s ordinary payroll dates, commencing on the Company’s first regular payroll
date that is more than sixty (60) days following your Separation from Service date, and shall be for any accrued base salary for the
sixty (60)-day period plus the period from the sixtieth (60th) day until the regular payroll date, if applicable, and all
salary continuation payments thereafter, if any, shall be made on the Company’s regular payroll dates


 


(b)            Bonus Severance. The Company will pay you an additional cash severance payment in an amount equal to two times (2x) the amount
of your target annual bonus pursuant to Section 2(b) of this Agreement for the calendar year in which your employment is terminated, less
applicable deductions and withholdings (the “Bonus Severance”). The Bonus Severance will be paid in a lump sum within
sixty (60) days following the Separation from Service date.


 


(c)            COBRA Severance. The Company will pay to you a fully taxable cash payment equal to the amount of your COBRA premiums you would
have to pay to continue your health care coverage in effect at the at the time of your Separation from Service for a maximum of twenty-four
(24) months following the Separation from Service date (such amount, the “Special Cash Payment”). You may, but are
not obligated to, use such Special Cash Payment towards the cost of your own health insurance coverage.


 


(d)            Accelerated
Vesting. The Company shall accelerate vesting (the “Accelerated Vesting”) of the number of then-unvested shares
subject to any time-based equity awards previously granted to you by the Company (excluding for the avoidance of doubt the Founder Grants)
that would have vested had your employment continued for an additional twenty-four (24) months after the Separation from Service date,
such that those number of shares shall be deemed immediately vested and exercisable as of your Separation from Service date.


 


(e)            Founder
Grants. The Founder Grants will remain outstanding for 15 months from the date of such termination and will remain eligible for vesting
upon the achievement of the milestones set forth in such RSU Agreement.


 


9.             Severance
in the Event of Qualifying Termination in Connection with a Change of Control. In the event of a Qualifying Termination that
occurs within three (3) months prior to or within eighteen (18) months following the closing of a Change of Control (as defined
below), provided such Qualifying Termination constitutes a Separation from Service, then in addition the Accrued Obligations, and
subject to Sections 10 (“Clawback and Recovery”), 12 (“Conditions to Receipt of Severance Benefits and Accelerated
Vesting”) and 13 (“Return of Company Property”) below and your continued compliance with the terms of this
Agreement (including without limitation the Confidentiality Agreement), the Company shall provide you with the Severance Benefits
set forth in Section 8 above, provided, however, that (a) the Severance will be paid in a lump sum within sixty (60) days
following the Separation from Service Date rather than in installments, and (b) the Accelerated Vesting shall apply to any
then-unvested shares of any equity awards previously granted to you by the Company such that one hundred percent (100%) of the
time-based portion of any such equity awards (excluding, for the avoidance of doubt, the Founder Grants) shall be deemed satisfied
as of your Separation from Service date.


 






     

     


    

 


Brett Adcock


September 16, 2021


Page 4



 


10.          Clawback
and Recovery. Any and all Severance Benefits and Accelerated Vesting provided under this Agreement will be subject to recoupment
in accordance with any clawback policy that the Company is required to adopt pursuant to the listing standards of any national securities
exchange or association on which the Company’s securities are listed or as is otherwise required by the Dodd-Frank Wall Street
Reform and Consumer Protection Act or other applicable law.


 


11.          Resignation
Without Good Reason; Termination for Cause; Death or Disability. If, at any time, you resign your employment without Good Reason,
or the Company terminates your employment for Cause, or if either party terminates your employment as a result of your death or disability,
you will receive (i) all accrued but unpaid base salary through the date of your employment termination, (ii) any unpaid or unreimbursed
expenses, and (iii) any benefits provided under the Company’s employee benefit plans upon a termination of employment (excluding
any employee benefit plan providing for severance or similar benefits), in accordance with the terms contained (collectively, the “Accrued
Obligations”). Under these circumstances, you will not be entitled to any other form of compensation from the Company, including
any Severance Benefits or Accelerated Vesting.


 


12.          Conditions
to Receipt of Severance Benefits and Accelerated Vesting. Prior to and as a condition to your receipt of the Severance Benefits or
Accelerated Vesting, you shall execute and deliver to the Company an effective release of claims in favor of and in substantially the
form attached hereto as Exhibit B (the “Release”), subject to any changes to comply with changes in
the law, and allow the Release to become effective according to its terms (by not invoking any legal right to revoke it) within any applicable
time period set forth therein (such latest permitted effective date, the “Release Deadline”).


 


13.          Return
of Company Property. Upon the termination of your employment for any reason, as a precondition to your receipt of the Severance
Benefits or Accelerated Vesting (if applicable), within fifteen (15) days after your Separation from Service Date (or earlier if
requested by the Company), you must return to the Company all Company documents (and all copies thereof) and other Company property
in your possession, custody or control, including, but not limited to, Company files, notes, financial and operational information,
password and account information, customer lists and contact information, prospect information, product and services information,
research and development information, drawings, records, plans, forecasts, pipeline reports, sales reports or other reports, payroll
information, spreadsheets, studies, analyses, compilations of data, proposals, agreements, sales and marketing information,
personnel information, specifications, code, software, databases, computer-recorded information, tangible property and equipment
(including, but not limited to, computers, facsimile machines, mobile telephones, tablets, handheld devices, and servers), credit
cards, entry cards, identification badges and keys, and any materials of any kind which contain or embody any proprietary or
confidential information of the Company, and all reproductions thereof in whole or in part and in any medium. You further agree that
you will make a diligent search to locate any such documents, property and information and return them to the Company within the
timeframe provided above. You also must provide the Company all passwords, log-ins, administrative access, and any other information
or access for and relating to any Company computer or other device that you have used to access or use the Company’s network,
as well as any Company database or Company accounts with third parties which you established, administered, or to which you had
access, and must terminate your access to such network and accounts and otherwise comply with any Company requests regarding all
such access and accounts. In addition, if you have used any personal computer, server, or email system to receive, store, review,
prepare or transmit any confidential or proprietary data, materials or information of the Company, then within five (5) days after
your Separation from Service date (or earlier if requested by the Company) you must provide the Company with a computer-useable copy
of such information and permanently delete and expunge such confidential or proprietary information from those systems without
retaining any reproductions (in whole or in part); and you agree to provide the Company access to your system, as requested, to
verify that the necessary copying and deletion is done. If requested, you shall deliver to the Company a signed statement certifying
compliance with this Section prior to the receipt of the Severance Benefits or Accelerated Vesting.


 






     

     


    

 


Brett Adcock


September 16, 2021


Page 5



 


14.          Outside Activities. Throughout your employment with the Company, you may engage in civic and not-for-profit activities so long
as such activities do not interfere with the performance of your duties hereunder or present a conflict of interest with the Company.
During your employment by the Company, except on behalf of the Company, you will not directly or indirectly serve as an officer, director,
stockholder, employee, partner, proprietor, investor, joint venturer, associate, representative or consultant of any other person, corporation,
firm, partnership or other entity whatsoever known by you to compete with the Company (or is planning or preparing to compete with the
Company), anywhere in the world, in any line of business engaged in (or planned to be engaged in) by the Company; provided, however, that
you may purchase or otherwise acquire up to (but not more than) one percent (1%) of any class of securities of any enterprise (but without
participating in the activities of such enterprise) if such securities are listed on any national or regional securities exchange. The
Company is aware that you are engaged in those outside activities listed in Exhibit C and consents to your continued participation
in such activities, so long as such activities do not interfere with the performance of your duties hereunder or present a conflict of
interest with the Company.


 


15.           Definitions.
For purposes of this Agreement, the following terms shall have the following meanings:


 


(a)            “Cause”
for termination will exist if your employment is terminated for any of the following reasons: (i) any material breach by you of any material
written agreement between you and the Company and your failure to cure such condition (if curable) within thirty (30) days after receiving
written notice thereof; (ii) any failure by you to comply with the Company’s material written policies or rules as they may be
in effect from time to time; (iii) your willful failure to follow reasonable and lawful instructions from the Board and your failure
to cure such condition (if curable) within thirty (30) days after receiving written notice thereof; (iv) your conviction of (including
a plea of guilty or nolo contendere) to, any crime that results in, or is reasonably expected to result in, material harm to the business
or reputation of the Company; (v) your commission of or participation in an act of fraud; (vi) your misconduct that results in material
damage to the Company’s business, property or reputation; or (vii) your unauthorized use or disclosure of any proprietary information
or trade secrets of the Company or any other party to whom you owe an obligation of nondisclosure as a result of his relationship with
the Company. For purposes of clarity, a termination without “Cause” does not include any termination that occurs as
a result of your death or disability.


 


(b)            “Good Reason” will exist if any of the following actions are taken by the Company without your prior written
consent: (i) a material reduction in your base salary (unless pursuant to a salary reduction program applicable generally to your similarly
situated employees not to exceed ten percent (10%)); (ii) a material reduction in your title or duties (including responsibilities and/or
authorities); or (iii) relocation of your principal place of employment by more than thirty-five (35) miles, provided, however, that any
change from remote work to working from the Company’s Palo Alto offices will not be deemed a relocation that could give rise to
Good Reason under this provision. In order to resign for Good Reason, you must provide written notice to the Company’s Board within
thirty (30) days after the first occurrence of the event giving rise to Good Reason setting forth the basis for your resignation, allow
the Company at least thirty (30) days from receipt of such written notice to cure such event, and if such event is not reasonably cured
within such period, you must resign from all positions you then hold with the Company not later than thirty (30) days after the expiration
of the cure period.


 


(c)              
“Change of Control” shall mean a Change of Control Transaction as defined in the Business Combination Agreement.


 






     

     


    

 


Brett Adcock


September 16, 2021


Page 6



 


16.          Compliance with Section 409A. It is intended that the payments and benefits set forth in this Agreement satisfy, to the greatest
extent possible, the exemptions from the application of Section 409A of the Internal Revenue Code of 1986, as amended, (the “Code”)
(Section 409A, together with any state law of similar effect and the treasury regulations and guidance promulgated thereunder, collectively,
 “Section 409A”), including under Treasury Regulations 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9). For purposes
of Section 409A (including, without limitation, for purposes of Treasury Regulations 1.409A-2(b)(2)(iii)), your right to receive any installment
payments under this Agreement (whether severance payments, reimbursements or otherwise) shall be treated as a right to receive a series
of separate payments and, accordingly, each installment payment hereunder shall at all times be considered a separate and distinct payment.
Whenever a payment under this Agreement specifies a payment period with reference to a number of days, the actual date of payment within
the specified period shall be within the sole discretion of the Company. Notwithstanding any provision to the contrary in this Agreement,
if the Company (or, if applicable, the successor entity thereto) determines that the Severance or Accelerated Vesting constitute “deferred
compensation” under Section 409A and you are, on the date of your Separation from Service, a “specified employee” of
the Company or any successor entity thereto, as such term is defined in Section 409A(a)(2)(B)(i) of the Code (a “Specified Employee”),
then, solely to the extent necessary to avoid the incurrence of adverse personal tax consequences under Section 409A, the timing of the
Severance Benefits and Accelerated Vesting shall be delayed until the earliest of: (i) the date that is six (6) months and one (1) day
after your Separation from Service date, (ii) the date of your death, or (iii) such earlier date as permitted under Section 409A without
the imposition of adverse taxation. Upon the first business day following the expiration of such applicable Code Section 409A(a)(2)(B)(i)
period, all payments or benefits deferred pursuant to this Section shall be paid in a lump sum or provided in full by the Company (or
the successor entity thereto, as applicable), and any remaining payments due shall be paid as otherwise provided herein. No interest shall
be due on any amounts so deferred. If the Severance Benefits and Accelerated Vesting benefits are not covered by one or more exemptions
from the application of Section 409A and the Release could become effective in the calendar year following the calendar year in which
you have a Separation from Service, the Release will not be deemed effective any earlier than the Release Deadline. The payments and benefits
provided hereunder are intended to qualify for an exemption from application of Section 409A or comply with its requirements to the extent
necessary to avoid adverse personal tax consequences under Section 409A, and any ambiguities herein shall be interpreted accordingly.
Notwithstanding anything to the contrary herein, to the extent required to comply with Section 409A, a termination of employment shall
not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of amounts or benefits upon or
following a termination of employment unless such termination is also a “separation from service” within the meaning of Section
409A. Notwithstanding any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement that constitutes
 “nonqualified deferred compensation” for purposes of Section 409A be subject to offset by any other amount unless otherwise
permitted by Section 409A. With respect to reimbursements or in-kind benefits provided to you hereunder (or otherwise) that are not exempt
from Section 409A, the following rules shall apply: (i) the amount of expenses eligible for reimbursement, or in-kind benefits provided,
during any one of your taxable years shall not affect the expenses eligible for reimbursement, or in-kind benefit to be provided in any
other taxable year, (ii) in the case of any reimbursements of eligible expenses, reimbursement shall be made on or before the last day
of your taxable year following the taxable year in which the expense was incurred, (iii) the right to reimbursement or in-kind benefits
shall not be subject to liquidation or exchange for another benefit. To the extent that any provision hereof is modified in order to comply
with Section 409A, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original
intent and economic benefit to you and the Company of the applicable provision without violating the provisions of Section 409A. In no
event whatsoever shall the Company be liable for any additional tax, interest or penalty that may be imposed on you by Section 409A or
damages for failing to comply with Section 409A.


 






     

     


    

 


Brett Adcock


September 16, 2021


Page 7



 


17.          Section
280G; Parachute Payments.


 


(a)              If
any payment or benefit you will or may receive from the Company or otherwise (a “280G Payment”) would (i) constitute a
 “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the
excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then any such 280G Payment provided pursuant
to this Agreement (a “Payment”) shall be equal to the Reduced Amount. The “Reduced Amount”
shall be either (x) the largest portion of the Payment that would result in no portion of the Payment (after reduction) being
subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount (i.e., the
amount determined by clause (x) or by clause (y)), after taking into account all applicable federal, state and local employment
taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in your receipt, on an
after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the Payment may be subject to the
Excise Tax. If a reduction in a Payment is required pursuant to the preceding sentence and the Reduced Amount is determined pursuant
to clause (x) of the preceding sentence, the reduction shall occur in the manner (the “Reduction Method”) that
results in the greatest economic benefit for you. If more than one method of reduction will result in the same economic benefit, the
items so reduced will be reduced pro rata (the “Pro Rata Reduction Method”).


 


(b)              
Notwithstanding any provision of subsection (a) above to the contrary, if the Reduction Method or the Pro Rata Reduction Method
would result in any portion of the Payment being subject to taxes pursuant to Section 409A that would not otherwise be subject to taxes
pursuant to Section 409A, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, shall be modified so as
to avoid the imposition of taxes pursuant to Section 409A as follows: (A) as a first priority, the modification shall preserve to the
greatest extent possible, the greatest economic benefit for you as determined on an after-tax basis; (B) as a second priority, Payments
that are contingent on future events (e.g., being terminated without Cause), shall be reduced (or eliminated) before Payments that are
not contingent on future events; and (C) as a third priority, Payments that are “deferred compensation” within the meaning
of Section 409A shall be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of Section 409A.


 


(c)              
Unless you and the Company agree on an alternative accounting firm or law firm, the accounting firm engaged by the Company
for general tax compliance purposes as of the day prior to the effective date of the of in Control transaction shall perform the foregoing
calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group
effecting the change in control transaction, the Company shall appoint a nationally recognized accounting or law firm to make the determinations
required by this Section 17 (“Section 280G; Parachute Payments”). The Company shall bear all expenses with respect to the
determinations by such accounting or law firm required to be made hereunder. The Company shall use commercially reasonable efforts to
cause the accounting or law firm engaged to make the determinations hereunder to provide its calculations, together with detailed supporting
documentation, to you and the Company within fifteen (15) calendar days after the date on which your right to a 280G Payment becomes reasonably
likely to occur (if requested at that time by you or the Company) or such other time as requested by you or the Company.


 


(d)              
If you receive a Payment for which the Reduced Amount was determined pursuant to clause (x) of Section 17(a) and the Internal
Revenue Service determines thereafter that some portion of the Payment is subject to the Excise Tax, you agree to promptly return to the
Company a sufficient amount of the Payment (after reduction pursuant to clause (x) of Section 17(a)) so that no portion of the remaining
Payment is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount was determined pursuant to clause (y) of Section
17(a), you shall have no obligation to return any portion of the Payment pursuant to the preceding sentence.


 






     

     


    

 


Brett Adcock


September 16, 2021


Page 8



 


18.          Dispute
Resolution. To ensure the rapid and economical resolution of disputes that may arise in connection with your employment with the
Company, you and the Company agree that any and all disputes, claims, or causes of action, in law or equity, including but not limited
to statutory claims, arising from or relating to the enforcement, breach, performance, or interpretation of this Agreement, your employment
with the Company, or the termination of your employment, shall be resolved pursuant to the Federal Arbitration Act, 9 U.S.C. § 1-16,
to the fullest extent permitted by law, by final, binding and confidential arbitration conducted by JAMS, Inc. or its successor (“JAMS”),
under JAMS’ then applicable rules and procedures for employment disputes before a single arbitrator (available upon request and
also currently available at http://www.jamsadr.com/rules-employment-arbitration/). You acknowledge that by agreeing to this
arbitration procedure, both you and the Company waive the right to resolve any such dispute through a trial by jury or judge or administrative
proceeding. In addition, all claims, disputes, or causes of action under this section, whether by you or the Company, must be brought
in an individual capacity, and shall not be brought as a plaintiff (or claimant) or class member in any purported class or representative
proceeding, nor joined or consolidated with the claims of any other person or entity. The arbitrator may not consolidate the claims of
more than one person or entity, and may not preside over any form of representative or class proceeding. To the extent that the preceding
sentences regarding class claims or proceedings are found to violate applicable law or are otherwise found unenforceable, any claim(s)
alleged or brought on behalf of a class shall proceed in a court of law rather than by arbitration. This paragraph shall not apply to
any action or claim that cannot be subject to mandatory arbitration as a matter of law, including, without limitation, claims brought
pursuant to the California Private Attorneys General Act of 2004, as amended, the California Fair Employment and Housing Act, as amended,
and the California Labor Code, as amended, to the extent such claims are not permitted by applicable law to be submitted to mandatory
arbitration and such applicable law(s) are not preempted by the Federal Arbitration Act or otherwise invalid (collectively, the “Excluded
Claims”). In the event you intend to bring multiple claims, including one of the Excluded Claims listed above, the Excluded
Claims may be publicly filed with a court, while any other claims will remain subject to mandatory arbitration. You will have the right
to be represented by legal counsel at any arbitration proceeding. Questions of whether a claim is subject to arbitration under this agreement
shall be decided by the arbitrator. Likewise, procedural questions which grow out of the dispute and bear on the final disposition are
also matters for the arbitrator. The arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the
dispute and to award such relief as would otherwise be permitted by law; and (b) issue a written statement signed by the arbitrator regarding
the disposition of each claim and the relief, if any, awarded as to each claim, the reasons for the award, and the arbitrator’s
essential findings and conclusions on which the award is based. The arbitrator shall be authorized to award all relief that you or the
Company would be entitled to seek in a court of law. The Company shall pay all JAMS arbitration fees in excess of the administrative
fees that you would be required to pay if the dispute were decided in a court of law. Nothing in this letter agreement is intended to
prevent either you or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any
such arbitration. Any awards or orders in such arbitrations may be entered and enforced as judgments in the federal and state courts
of any competent jurisdiction.


 


19.          Miscellaneous.
This offer is contingent upon a satisfactory reference check and satisfactory proof of your right to work in the United States. If the
Company informs you that you are required to complete a background check or drug test, this offer is contingent upon satisfactory clearance
of such background check and/or drug test. You agree to assist as needed and to complete any documentation at the Company’s request
to meet these conditions. This Agreement, together with your Confidentiality Agreement, forms the complete and exclusive statement of
your employment agreement with the Company. It supersedes any other agreements or promises made to you by anyone, whether oral or written.
Changes in your employment terms, other than those changes expressly reserved to the Company’s or the Board’s discretion
in this Agreement, require a written modification approved by the Company and signed by a duly authorized officer of the Company (other
than you). This Agreement will bind the heirs, personal representatives, successors and assigns of both you and the Company, and inure
to the benefit of both you and the Company, their heirs, successors and assigns. If any provision of this Agreement is determined to
be invalid or unenforceable, in whole or in part, this determination shall not affect any other provision of this Agreement and the provision
in question shall be modified so as to be rendered enforceable in a manner consistent with the intent of the parties insofar as possible
under applicable law. This Agreement shall be construed and enforced in accordance with the laws of the State of California without regard
to conflicts of law principles. Any ambiguity in this Agreement shall not be construed against either party as the drafter. Any waiver
of a breach of this Agreement, or rights hereunder, shall be in writing and shall not be deemed to be a waiver of any successive breach
or rights hereunder. This Agreement may be delivered and executed via facsimile, electronic mail (including pdf or any electronic signature
complying with the U.S. federal ESIGN Act of 2000, Uniform Electronic Transactions Act or other applicable law) or other transmission
method and shall be deemed to have been duly and validly delivered and executed and be valid and effective for all purposes.


 






     

     


    

 


Brett Adcock


September 16, 2021


Page 9



 


Please sign and date this Agreement and the enclosed
Confidentiality Agreement and return them to me on or before September 16, 2021 if you wish to accept employment at the Company under
the terms described above. The offer of employment herein will expire if I do not receive this signed letter by that date. I would be
happy to discuss any questions that you may have about these terms.


 


We are delighted to be making this offer and the
Company looks forward to your favorable reply and to a productive and enjoyable work relationship.


 


Sincerely,


 


	/s/ Adam Goldstein	 
	Adam Goldstein, Director	 




 


Reviewed, Understood, and Accepted:


 


	/s/ Brett Adcock	 	September 16, 2021
	Brett Adcock	 	Date




 


Exhibit A: Confidentiality Agreement


Exhibit B: Release


Exhibit C: Outside Activities


 






     

     


    

 


Exhibit
A


 


CONFIDENTIALITY AGREEMENT


 


Omitted.


 






    A-1 

     


    

 


Exhibit
B


 


RELEASE


 


In exchange for the severance
benefits to be provided to me by Archer Aviation Inc. (the “Company”) pursuant to my Employment Terms offer letter
between me and the Company, dated September 16, 2021 (the “Employment Agreement”), I hereby provide the following release.


 


I hereby generally and completely
release the Company and its parents, subsidiaries, successors, predecessors, and affiliates, and each of their respective current and
former directors, officers, employees, stockholders, shareholders, agents, attorneys, insurers, and assigns, from any and all claims,
liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions
occurring at any time prior to and including the date I sign this release. This general release includes, but is not limited to: (a) all
claims arising out of or in any way related to my employment or the termination of that employment; (b) all claims related to my compensation
or benefits, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock
options, or any other ownership interests; (c) all claims for breach of contract, wrongful termination, and breach of the implied covenant
of good faith and fair dealing; (d) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation
of public policy; and (e) all federal, state, provincial and local statutory claims, including claims for discrimination, harassment,
retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans
with Disabilities Act of 1990 (as amended), the federal Age Discrimination in Employment Act (as amended) (“ADEA”),
the federal Employee Retirement Income Security Act of 1974 (as amended), and the California Fair Employment and Housing Act (as amended).
Notwithstanding the foregoing, I understand that the following claims are not included in my release: (a) any rights or claims for indemnification
I may have pursuant to any written indemnification agreement; the charter, bylaws, or operating agreements of the Company; or under applicable
law; (b) any rights which cannot be waived as a matter of law; or (c) any rights to vested benefits or compensation.


 


In addition, I understand
that nothing in this release limits my ability to file a charge or complaint with the Equal Employment Opportunity Commission, the Department
of Labor, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission
or any other federal, state or local governmental agency or commission (“Government Agencies”). I further understand
this release does not limit my ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding
that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company. While
this Agreement does not limit my right to receive an award for information provided to the Securities and Exchange Commission, I understand
and agree that, to maximum extent permitted by law, I am otherwise waiving any and all rights I may have to individual relief based on
any claims that I have released and any rights I have waived by signing this release.


 


I acknowledge that I am knowingly
and voluntarily waiving and releasing any rights I may have under the ADEA (“ADEA Waiver”), and that the consideration
for the waiver and release in the preceding paragraph hereof is in addition to anything of value to which I was already entitled. I further
acknowledge that I have been advised by this writing, as required by the ADEA, that: (a) my waiver and release do not apply to any rights
or claims that may arise after the date I sign this release; (b) I should consult with an attorney prior to signing this release (although
I may choose voluntarily not do so); (c) I have [21][45] days to consider this release
(although I may choose voluntarily to sign this release earlier); (d) I have seven days following the date I sign this release to revoke
it by providing written notice to the Board of Directors; and (e) this release will not be effective until the date upon which the revocation
period has expired, which will be the eighth day after I sign this release.


 






    B-2

     


    

 


I acknowledge that I have
read and understand Section 1542 of the California Civil Code which reads as follows: “A general release does not extend to claims
which the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that,
if known by him or her, would have materially affected his or her settlement with the debtor or released party.” I hereby expressly
waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to my release
of any claims hereunder.


 


I hereby represent that I
have been paid all compensation owed and for all hours worked; I have received all the leave and leave benefits and protections for which
I am eligible pursuant to the Family and Medical Leave Act, the California Family Rights Act, or otherwise; and I have not suffered any
on-the-job injury for which I have not already filed a workers’ compensation claim. I further acknowledge that, other than the severance
benefits that will be provided to me pursuant to the Employment Agreement upon the effectiveness of this release, among other required
conditions, I have not earned and will not receive from the Company any additional compensation, severance, or benefits, with the exception
of any vested right I may have under the express terms of a written ERISA-qualified benefit plan (e.g., 401(k) account). By way of example,
I acknowledge that I have not earned and am not owed any bonus, vacation, incentive compensation, severance, commissions or equity.


 


I further acknowledge my continuing
obligations under my Employee Confidential Information and Inventions Assignment Agreement.


 


I hereby agree not to disparage
the Company or any of its officers, directors, employees, shareholders, and agents, in any manner likely to be harmful to its or their
business, business reputations or personal reputations; provided that I may respond accurately and fully to any question, inquiry or request
for information when required by the legal process or in connection with a government investigation. In addition, nothing in this release
is intended to prohibit or restrain me in any manner from making disclosures that are protected under the whistleblower provisions of
federal law or regulation or under other applicable law or regulation.


 


I acknowledge that to become
effective, I must sign and return this Release to the Company so that it is received not later than [21][45]
days following the date it is provided to me.


	 	 
	 	Brett Adcock
	 	 
	 	 
	 	(Signature)
	 	 
	 	Date:	                      




 


	Archer Aviation Inc.	 
	 	 
	 	 
	Adam Goldstein, Director	 
	 	 
	Date:	          	 




 



    B-3

     


    




 


Exhibit
C


 


OUTSIDE ACTIVITIES


 


None.




 






    C-1