# EDGAR Filing Document

**Accession Number:** 0001828811
**File Stem:** 0001628280-23-002323
**Filing Date:** 2023-2
**Character Count:** 1298621
**Document Hash:** 9085586acfb0f164f194747d61d606ef
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-23-002323.hdr.sgml**: 20230206

**ACCESSION NUMBER**: 0001628280-23-002323

**CONFORMED SUBMISSION TYPE**: 20-F

**PUBLIC DOCUMENT COUNT**: 141

**CONFORMED PERIOD OF REPORT**: 20221031

**FILED AS OF DATE**: 20230206

**DATE AS OF CHANGE**: 20230206

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Li-Cycle Holdings Corp.
- **CENTRAL INDEX KEY:** 0001828811
- **STANDARD INDUSTRIAL CLASSIFICATION:** HAZARDOUS WASTE MANAGEMENT [4955]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** A6
- **FISCAL YEAR END:** 1031

**FILING VALUES:**
- **FORM TYPE:** 20-F
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40733
- **FILM NUMBER:** 23588345

**BUSINESS ADDRESS:**
- **STREET 1:** C/O LI-CYCLE CORP.
- **STREET 2:** 10-2351 ROYAL WINDSOR DRIVE
- **CITY:** MISSISSAUGA
- **STATE:** A6
- **ZIP:** L5J 4S7
- **BUSINESS PHONE:** 4165833509

**MAIL ADDRESS:**
- **STREET 1:** C/O LI-CYCLE CORP.
- **STREET 2:** 10-2351 ROYAL WINDSOR DRIVE
- **CITY:** MISSISSAUGA
- **STATE:** A6
- **ZIP:** L5J 4S7

?xml version="1.0" ? licy-20221031

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549**

**FORM 20-F**

(Mark One)

☐&nbsp;&nbsp;&nbsp;&nbsp;**REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934**

**OR**

**☒ &nbsp;&nbsp;&nbsp;&nbsp;ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the fiscal year ended October 31, 2022

**OR**

**☐ &nbsp;&nbsp;&nbsp;&nbsp;TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934**

**OR**

**☐ &nbsp;&nbsp;&nbsp;&nbsp;SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

Date of event requiring this shell company report: Not applicable.

Commission File Number: 001-40733

**Li-Cycle Holdings Corp.**

(Exact name of Registrant as specified in its charter)

---

| | |
|:---|:---|
| Not applicable | Province of Ontario, Canada |
| (Translation of Registrant's name into English) | (Jurisdiction of incorporation or organization) |
| 207 Queen's Quay West, Suite 590, Toronto, ON, M5J 1A7, Canada<br>(Address of principal executive offices) | 207 Queen's Quay West, Suite 590, Toronto, ON, M5J 1A7, Canada<br>(Address of principal executive offices) |
| Carl DeLuca<br>207 Queen's Quay West, Suite 590, Toronto, ON, M5J 1A7, Canada<br>(877) 542-9253<br>carl.deluca@li-cycle.com<br>(Name, Telephone, Email and/or Facsimile number and Address of Company Contact Person) | Carl DeLuca<br>207 Queen's Quay West, Suite 590, Toronto, ON, M5J 1A7, Canada<br>(877) 542-9253<br>carl.deluca@li-cycle.com<br>(Name, Telephone, Email and/or Facsimile number and Address of Company Contact Person) |

---

Securities registered or to be registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common shares, without par value | LICY | New York Stock Exchange |

---

Securities registered or to be registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report: 175,956,545 common shares issued and outstanding as of October 31, 2022.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes ☐ No ☒

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

------

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, or an emerging growth company. See definition of "accelerated filer," "large accelerated filer," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ <br> Emerging growth company ☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ☐

† The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ☐ International Financial Reporting Standards as issued by the International Accounting Standards Board ☒ Other ☐

If "Other" has been checked in response to the previous question indicate by check mark which financial statement item the registrant has elected to follow. Item 17 ☐ Item 18 ☐

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

------

**LI-CYCLE HOLDINGS CORP.**

**TABLE OF CONTENTS**

**<u>Page</u>**

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[FORWARD-LOOKING STATEMENTS](#i56a2c41544854d5789658bcd013ebb6c_10)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ii](#i56a2c41544854d5789658bcd013ebb6c_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[IMPORTANT INFORMATION ABOUT IFRS AND NON-IFRS FINANCIAL MEASURES](#i56a2c41544854d5789658bcd013ebb6c_13)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[i](#i56a2c41544854d5789658bcd013ebb6c_13)ii |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[FREQUENTLY USED TERMS](#i56a2c41544854d5789658bcd013ebb6c_16)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[PART I](#i56a2c41544854d5789658bcd013ebb6c_22)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1](#i56a2c41544854d5789658bcd013ebb6c_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 1. Identity of Directors, Senior Management and Advisers](#i56a2c41544854d5789658bcd013ebb6c_25)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1](#i56a2c41544854d5789658bcd013ebb6c_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 2. Offer Statistics and Expected Timetable](#i56a2c41544854d5789658bcd013ebb6c_28)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1](#i56a2c41544854d5789658bcd013ebb6c_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 3. Key Information](#i56a2c41544854d5789658bcd013ebb6c_31)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1](#i56a2c41544854d5789658bcd013ebb6c_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 4. Information on the Company](#i56a2c41544854d5789658bcd013ebb6c_190)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 4A. Unresolved Staff Comments](#i56a2c41544854d5789658bcd013ebb6c_295)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS](#i56a2c41544854d5789658bcd013ebb6c_298)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 6. Directors, Senior Management and Employees](#i56a2c41544854d5789658bcd013ebb6c_301)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3](#i56a2c41544854d5789658bcd013ebb6c_301)2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 7. Major Shareholders and Related Party Transactions](#i56a2c41544854d5789658bcd013ebb6c_460)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 8. Financial Information](#i56a2c41544854d5789658bcd013ebb6c_496)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 9. The Offer and Listing](#i56a2c41544854d5789658bcd013ebb6c_505)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 10. Additional Information](#i56a2c41544854d5789658bcd013ebb6c_526)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 11. Quantitative and Qualitative Disclosures about Market Risks](#i56a2c41544854d5789658bcd013ebb6c_613)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 12. Description of Securities Other than Equity Securities](#i56a2c41544854d5789658bcd013ebb6c_616)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[PART II](#i56a2c41544854d5789658bcd013ebb6c_619)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 13. Defaults, Dividend Arrearages and Delinquencies](#i56a2c41544854d5789658bcd013ebb6c_622)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds](#i56a2c41544854d5789658bcd013ebb6c_625)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;66 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 15. Control and Procedures](#i56a2c41544854d5789658bcd013ebb6c_628)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;66 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 16A. Audit Committee Financial Expert](#i56a2c41544854d5789658bcd013ebb6c_643)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 16B. Code of Ethics](#i56a2c41544854d5789658bcd013ebb6c_646)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 16C. Principal Accountant Fees and Services](#i56a2c41544854d5789658bcd013ebb6c_649)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;69 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 16D. Exemptions from the Listing Standards for Audit Committees](#i56a2c41544854d5789658bcd013ebb6c_667)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers.](#i56a2c41544854d5789658bcd013ebb6c_670)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 16F. Change in Registrant's Certifying Accountant](#i56a2c41544854d5789658bcd013ebb6c_673)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 16G. Corporate Governance](#i56a2c41544854d5789658bcd013ebb6c_676)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 16H. Mine Safety Disclosure](#i56a2c41544854d5789658bcd013ebb6c_679)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[PART III](#i56a2c41544854d5789658bcd013ebb6c_682)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 17. Financial Statements](#i56a2c41544854d5789658bcd013ebb6c_685)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 18. Financial Statements](#i56a2c41544854d5789658bcd013ebb6c_688)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 19. Exhibits](#i56a2c41544854d5789658bcd013ebb6c_691)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70 |

---

- i -

------

**FORWARD-LOOKING STATEMENTS**

Certain statements contained in this annual report on Form 20-F (this "annual report") may be considered "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended, Section 21 of the U.S. Securities Exchange Act of 1934, as amended, and applicable Canadian securities laws. Forward-looking statements may generally be identified by the use of words such as "believe", "may", "will", "continue", "anticipate", "intend", "expect", "should", "would", "could", "plan", "potential", "future", "target" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. Forward-looking statements in this annual report include but are not limited to statements about: Li-Cycle's ability to capitalize on global growth opportunities; anticipated growth in global demand for and production of lithium-ion batteries and the growth of related industries; our expectation of having total lithium-ion battery processing capacity at our Spokes of more than 80,000 tonnes per year in calendar 2023; the timing of expected commencement of commissioning of the Rochester Hub, its expected annual input capacity and production output capacity, its total capital cost and the expected size of its workforce; the expected timing and capital investment requirements for the Company's Spokes in development and the expected main line processing capacity and ancillary processing capacity of Li-Cycle's Germany Spoke, Norway Spoke and New Ontario Spoke; the expected timing of installation of the two main lines of the Germany Spoke; the expected timing of installation and start of operations of the Norway Spoke; the expected timing of commencement of initial site work on the New Ontario Spoke; and the expectation that we will construct and operate two types of Hubs, namely, a ternary Hub and a lithium-ion phosphate Hub. These statements are based on various assumptions, whether or not identified in this annual report made by Li-Cycle management, including but not limited to assumptions regarding the timing, scope and cost of Li-Cycle's projects; the processing capacity and production of Li-Cycle's facilities; Li-Cycle's ability to source feedstock and manage supply chain risk; Li-Cycle's ability to increase recycling capacity and efficiency; Li-Cycle's ability to obtain financing on acceptable terms; Li-Cycle's ability to retain and hire key personnel and maintain relationships with customers, suppliers and other business partners; general economic conditions; currency exchange and interest rates; compensation costs; and inflation. There can be no assurance that such assumptions will prove to be correct and, as a result, actual results or events may differ materially from expectations expressed in or implied by the forward-looking statements.

Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Li-Cycle, and which may cause actual results to differ materially from the forward-looking information. The risk factors and cautionary language discussed in this annual report provide examples of risks, uncertainties and events that may cause actual results to differ materially from the expectations described by us in such forward-looking statements, including among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes adversely affecting the industry in which we operate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to achieve our business strategies, develop our capital projects or to manage our growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to increase recycling capacity and efficiency and maintain operations at our facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintaining our supplier and customer relationships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to raise funds for our capital requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic and political conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effects of the COVID-19 pandemic on the global economy, on the markets in which we compete and on our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain the listing of our securities on the NYSE;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to retain our key employees; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the outcome of any legal proceedings or arbitrations that may be instituted against us or in which we may be involved.

These and other risks and uncertainties related to Li-Cycle's business and the assumptions on which the forward-looking information is based are described in greater detail in the sections entitled "Item 3D. Risk Factors" and "Item 5. Operating and Financial Review and Prospects—Key Factors Affecting Li-Cycle's Performance" and elsewhere in this annual report.

Li-Cycle assumes no obligation to update or revise any forward-looking statements, except as required by applicable laws. These forward-looking statements should not be relied upon as representing Li-Cycle's assessments as of any date subsequent to the date of this annual report.

- ii -

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**IMPORTANT INFORMATION ABOUT IFRS AND NON-IFRS FINANCIAL MEASURES**

Our financial statements are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and referred to in this annual report as "IFRS." The Company makes references to certain non-IFRS measures, including Adjusted EBITDA. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing a further understanding of the Company's results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for the analysis of the Company's financial information reported under IFRS.

- iii -

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**FREQUENTLY USED TERMS**

As used in this annual report, unless the context otherwise requires or indicates otherwise, references to "we," "us," "our," "Li-Cycle" or the "Company" refer to Li-Cycle Holdings Corp., an Ontario corporation, and its consolidated subsidiaries.

In this document:

"Alabama Spoke" means Li-Cycle's Spoke near Tuscaloosa, Alabama, which commenced operations on October 13, 2022.

"Amalgamation" means the amalgamation of Peridot Ontario and NewCo in accordance with the terms of the Arrangement.

"ancillary processing capacity" means, in relation to Li-Cycle's Spokes, the capacity to process LIB through dry shredding, powder processing and baling.

"Arizona Spoke" means Li-Cycle's operational Spoke in Gilbert, Arizona, which commenced operations on May 17, 2022.

"Arrangement" means the plan of arrangement (including the Business Combination) in substantially the form attached as Annex C to the proxy statement/prospectus forming a part of the registration statement on Form F-4, filed by the Company with the SEC on July 6, 2021.

"black mass" means a powder-like substance which contains a number of valuable metals, including nickel, cobalt and lithium.

"Black Mass & Equivalents" or "BM&E" means black mass and products analogous to black mass that have a similar metal content.

"Business Combination" means the transactions contemplated by the Business Combination Agreement.

"Business Combination Agreement" means the Business Combination Agreement, dated as of February 15, 2021, as amended, by and among Peridot, Li-Cycle Corp. and NewCo.

"Closing Date" means the closing date of the Business Combination.

"common shares" means the common shares of the Company, without par value.

"Continuance" means the continuance of Peridot from the Cayman Islands under the Companies Act to the Province of Ontario, Canada as a corporation existing under the OBCA.

"EV" means electric vehicles.

"Germany Spoke" means Li-Cycle's planned Spoke in Magdeburg, Germany that is currently under development.

"Glencore" means Glencore Ltd.

"Glencore Convertible Note" means the unsecured convertible note in the principal amount of $200 million due May 31, 2027 issued to Glencore pursuant to the Glencore Note Purchase Agreement on May 31, 2022, as such note may be amended from time to time.

"Glencore Note Purchase Agreement" means the note purchase agreement, dated as of May 5, 2022, between the Company and Glencore Ltd.

"Glencore Warrants" means warrants to be issued by Li-Cycle to the holder of the Glencore Convertible Note in connection with an optional redemption of the Glencore Convertible Note that entitle the holder to acquire, until the maturity date of the Glencore Convertible Note, a number of common shares equal to the principal amount of the Glencore Convertible Note being redeemed divided by the then applicable conversion price.

"Hub" means a centralized facility for large-scale production of specialty materials that achieves economies of scale in recycling. Our first commercial Hub will be located in Rochester, New York and is currently in the project execution phase.

"Investor Agreement" means the Investor and Registration Rights Agreement, dated as of August 10, 2021, by and among the Company, the Peridot Class B Holders and the Li-Cycle Holders.

"KSP Convertible Note" means the unsecured convertible note in the principal amount of $100 million due September 29, 2026 originally issued to Spring Creek Capital, LLC (an affiliate of Koch Strategic Platforms, LLC, being a company within the Koch Investments Group) pursuant to the KSP Note Purchase Agreement on September 29, 2021 and subsequently assigned on May 1, 2022, to one of its affiliates, Wood River Capital, LLC, as such note may be amended from time to time.

"KSP Convertible Notes" means the KSP Convertible Note together with any PIK Notes issued in satisfaction of interest due and payable thereon.

"KSP Note Purchase Agreement" means the Note Purchase Agreement, dated as of September 29, 2021, between the Company and Spring Creek Capital, LLC, and assigned on May 1, 2022, to Wood River Capital, LLC.

- iv -

------

"LGC" means LG Chem, Ltd.

"LGES" means LG Energy Solution, Ltd.

"LIB" means lithium-ion batteries, including lithium-ion battery manufacturing scrap and end-of-life lithium-ion batteries.

"Li-Cycle Holders" means the prior shareholders of Li-Cycle Corp. that entered into the Li-Cycle Transaction Support Agreements in connection with the Business Combination.

"Li-Cycle Shares" means the issued and outstanding common shares of Li-Cycle Corp. prior to the Business Combination.

"Li-Cycle Transaction Support Agreements" means the Transaction Support Agreements, each dated as of February 15, 2021, among Peridot and the Li-Cycle Holders, entered into in connection with the Business Combination Agreement.

"Long-Term Incentive Plan" means the Company's 2021 Incentive Award Plan.

"main line processing capacity" means, in relation to Li-Cycle's Spokes, the capacity to process materials using Li-Cycle's patented submerged shredding process or "wet shredding" designed specifically for battery materials that contain electrolyte and have risk of thermal runaway

"NewCo" means Li-Cycle Holdings Corp. prior to the Amalgamation.

"New Ontario Spoke" means the expanded Spoke and warehouse facility that is planned to replace the existing Ontario Spoke.

"New York Spoke" means Li-Cycle's operational Spoke in Rochester, New York.

"Norway Spoke" means Li-Cycle's planned Spoke in Moss, Norway that is currently under development.

"NYSE" means the New York Stock Exchange.

"OBCA" means the Ontario Business Corporations Act.

"OEM" means an original equipment manufacturer.

"Ohio Spoke" means Li-Cycle's planned, co-located Spoke with Ultium near Warren, Ohio.

"Ontario Spoke" means Li-Cycle's operational Spoke in Kingston, Ontario.

"Peridot" means, before the Continuance, Peridot Acquisition Corp., a Cayman Islands exempt company and, after the Continuance, Peridot Ontario.

"Peridot Class B Holders" means the holders of Peridot Class B Shares immediately prior to the Business Combination.

"Peridot Class B Shares" means the Class B common shares of Peridot.

"Peridot Ontario" means Peridot as continued under the OBCA following the Continuance.

"PIK Notes" means the additional unsecured convertible notes that may be issued by Li-Cycle from time to time in satisfaction of the interest due and payable on the KSP Convertible Notes.

"PIPE Financing" means the issuance and sale to the PIPE Investors, following the Amalgamation and prior to the closing date of the Business Combination, of an aggregate of 31,549,000 common shares for a purchase price of $10.00 per share, for aggregate gross proceeds of $315,490,000.

"PIPE Investors" means those certain investors, including an affiliate of Peridot's Sponsor, who entered into Subscription Agreements to purchase common shares in the PIPE Financing.

"private placement warrants" means 8,000,000 warrants to purchase common shares that were issued to the Sponsor in exchange for outstanding warrants of Peridot in connection with the Business Combination, which were exercised or surrendered for common shares or redeemed on January 26, 2022 pursuant to the notice of redemption dated December 27, 2021.

"Product Recovery Percentage" means (a) the quantity of a given constituent in the feed lithium-ion battery materials (e.g., lithium, nickel, cobalt, other constituents) that is returned from the process and is available for sale after the process has taken place, divided by (b) the input quantity of the given constituent, measured as a percentage.

"public warrants" means 15,000,000 warrants to purchase common shares that were issued in exchange for outstanding warrants of Peridot that were issued in Peridot's initial public offering, which were exercised or surrendered for common shares or redeemed on January 26, 2022 pursuant to the notice of redemption dated December 27, 2021.

"Recycling Efficiency Rate" means (a) the mass of recycled materials exiting the recycling process and returned to the economy, divided by (b) the mass of materials entering the recycling process, measured as a percentage.

- v -

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"Rochester Hub" means Li-Cycle's first commercial-scale Hub that is currently under construction in Rochester, New York.

"SEC" means the U.S. Securities and Exchange Commission.

"Securities Act" means the Securities Act of 1933, as amended.

"Spoke" means a decentralized facility that mechanically processes batteries close to sources of supply and handles the preliminary processing of end-of-life batteries and battery manufacturing scrap.

"Sponsor" means Peridot Acquisition Sponsor, LLC, a Delaware limited liability company.

"Subscription Agreements" means the subscription agreements entered into with the PIPE Investors, in connection with the PIPE Financing.

"Traxys" means Traxys North America LLC.

"Ultium" means Ultium Cells LLC.

"Warrant Redemption" means the redemption of all our outstanding warrants on January 26, 2022 as described in the notice of redemption dated December 27, 2021.

"warrants" means the public warrants and the private placement warrants.

References to "dollar," "USD," "US$" and "$" are to U.S. dollars and references to "CA$" and "Cdn. $" are to Canadian dollars.

This annual report includes certain trademarks, service marks and trade names that we own or otherwise have the right to use, such as "Li-Cycle" and "Spoke & Hub Technologies" which are protected under applicable intellectual property laws and are our property. This annual report also contains additional trademarks, tradenames, and service marks belonging to other parties, which are the property of their respective owners. Solely for convenience, our trademarks, service marks and trade names referred to in this annual report may appear without the® or™ symbol, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights to these trademarks, service marks and trade names. We do not intend our use or display of other parties' trademarks, tradenames, or service marks to imply, and such use or display should not be construed to imply, a relationship with, or endorsement or sponsorship of us by, these other parties.

- vi -

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**PART I**

**ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS**

Not Applicable.

**ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE**

Not Applicable.

**ITEM 3. KEY INFORMATION**

**A. [Reserved]**

**B. Capitalization and Indebtedness**

Not applicable.

**C. Reasons for the Offer and Use of Proceeds**

Not applicable.

**D. Risk Factors** 

*An investment in our securities carries a significant degree of risk. You should carefully consider the following risks, all risk factors set forth in this annual report, including our consolidated financial statements and related notes in connection with your ownership of our securities. If any of these risks actually occur, our business and financial results could be materially adversely affected. This could cause the trading price of our securities to decline, perhaps significantly, and you therefore may lose all or part of your investment. These risks are not exhaustive and do not comprise all of the risks associated with an investment in the Company. Additional risks and uncertainties not currently known to us or which we currently deem immaterial may also have a material adverse effect on our business, financial condition and results of operations.*

*References in this section to "we," "us" or "Li-Cycle" refer to Li-Cycle Corp. and its subsidiaries prior to the consummation of the Business Combination and the Company and its subsidiaries subsequent to the Business Combination, unless the context otherwise requires or indicates otherwise.*

**Summary of Risk Factors**

The following summarizes some, but not all, of the risks provided below. Please carefully consider all of the information discussed in these "Item 3D. Risk Factors" for a more thorough description of these and other risks:

**Risks Relating to Li-Cycle's Business**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Li-Cycle's success will depend on its ability to economically and efficiently source, recover and recycle lithium-ion battery materials, as well as third-party black mass, and to meet the market demand for an environmentally sound, closed-loop solution for lithium-ion battery manufacturing scrap and end-of-life lithium-ion batteries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Li-Cycle may not be able to successfully implement its global growth strategy, on a timely basis or at all, and may be unable to manage future global growth effectively. Expanding internationally involves risks that could delay our expansion plans and/or prohibit us from entering markets in certain jurisdictions, which could have a material adverse effect on results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The development of Li-Cycle's Rochester Hub, Spoke network .and other future projects is subject to risks and Li-Cycle cannot guarantee that these projects will be completed in a timely manner, that costs will not be significantly higher than estimated, or that the completed projects will meet expectations with respect to productivity or the specifications of their respective end products, among others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Li-Cycle may engage in strategic transactions that could disrupt its business, cause dilution to its shareholders, reduce its financial resources, result in the incurrence of debt or other liabilities, or prove not to be successful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Failure to materially increase recycling capacity and efficiency could have a material adverse effect on Li-Cycle's business, results of operations and financial condition. Li-Cycle is and will be dependent on its recycling facilities. If one or more of its current or future facilities become inoperative, capacity

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constrained or if operations are disrupted, Li-Cycle's business, results of operations and financial condition could be materially adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Li-Cycle may in the future need to raise additional funds to meet its capital requirements and such funds may not be available to Li-Cycle on commercially reasonable terms or at all, which could materially adversely affect Li-Cycle's business, results of operations and financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Li-Cycle has a history of losses and expects to incur significant expenses for the foreseeable future, and there is no guarantee it will achieve or sustain profitability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Problems with the handling of lithium-ion battery cells that result in less usage of lithium-ion batteries or affect Li-Cycle's operations could materially adversely affect Li-Cycle's business, results of operations and financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Li-Cycle's business is subject to operational and project development risks that could disrupt our business, some of which may not be insured or fully covered by insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Li-Cycle's revenue depends on maintaining and increasing feedstock supply commitments as well as securing new sources of supply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Li-Cycle relies on a limited number of customers and the projected revenues for the Rochester Hub are derived significantly from a single customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A decline in the adoption rate of EVs, or a decline in the support by governments for "green" energy technologies, could materially harm Li-Cycle's financial results and ability to grow its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Decreases in demand and fluctuations in benchmark prices for the metals contained in Li-Cycle's products could significantly impact Li-Cycle's costs, revenues and results of operations. In addition to commodity prices, Li-Cycle's costs and revenues are primarily driven by the volume and composition of lithium-ion battery feedstock materials processed at its facilities (including manufacturing scrap, spent batteries and third-party purchased black mass) and changes in the volume or composition of feedstock processed could significantly impact Li-Cycle's revenues and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The development of an alternative chemical make-up of lithium-ion batteries or battery alternatives could materially adversely affect Li-Cycle's revenues and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Li-Cycle's heavy reliance on the experience and expertise of its management may cause material adverse impacts on it if a management member departs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Li-Cycle relies on third-party consultants for its regulatory compliance and Li-Cycle could be materially adversely impacted if the consultants do not correctly inform Li-Cycle of the legal changes. Further, Li-Cycle is subject to the risk of litigation or regulatory proceedings, which could materially adversely impact its financial results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Li-Cycle may not be able to complete its recycling processes as quickly as customers may require, which could cause it to lose supply contracts and could harm its reputation. Li-Cycle operates in an emerging, competitive industry and if it is unable to compete successfully its revenue and profitability will be materially adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Increases in income tax rates, changes in income tax laws or disagreements with tax authorities could materially adversely affect Li-Cycle's business, results of operations and financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Li-Cycle's operating and financial results may vary significantly from period to period due to fluctuations in its operating costs and other factors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fluctuations in foreign currency exchange rates could result in increases in Li-Cycle's operating costs when translated to U.S. dollars for reporting purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Unfavorable economic conditions, including the consequences of the global COVID-19 pandemic, disruptions in the global supply chain and inflation, could have a material adverse effect on Li-Cycle's business, results of operations and financial condition.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Natural disasters, unusually adverse weather, epidemic or pandemic outbreaks, cyber incidents, boycotts and geo-political events could materially adversely affect Li-Cycle's business, results of operations and financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Failure to protect or enforce Li-Cycle's intellectual property could materially adversely affect its business, and Li-Cycle may be subject to intellectual property rights claims by third parties, which could be costly to defend, could require us to pay significant damages and could limit the Company's ability to use certain technologies.

**Risks Relating to Ownership of Our Securities**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our by-laws provide, subject to limited exceptions, that the Superior Court of Justice of the Province of Ontario and the appellate courts therefrom are the sole and exclusive forum for certain shareholder litigation matters, which could limit shareholders' ability to obtain a favorable judicial forum for disputes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our common shares have only recently become publicly traded, and the market price of our common shares may be volatile. The trading price of our common shares could be subject to wide fluctuations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The NYSE may delist our common shares, which could limit investors' ability to engage in transactions in our common shares and subject us to additional trading restrictions. Because Li-Cycle has historically operated as a private company, we have limited experience complying with public company obligations and fulfilling these obligations is expensive and time consuming and may divert management's attention from the day-to-day operation of our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As a "foreign private issuer" under the rules and regulations of the SEC, we are permitted to, and will, file less or different information with the SEC than a company incorporated in the United States or otherwise subject to these rules, and will follow certain home country corporate governance practices in lieu of certain NYSE requirements applicable to U.S. issuers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Failure to develop and maintain effective internal control over financial reporting could have a material adverse effect on our business, results of operations and trading price of our common shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may issue additional shares or other equity securities without shareholder approval, which would dilute the ownership interests of existing shareholders and may depress the market price of our common shares. The issuance of our common shares in connection with the conversion of our outstanding convertible notes would cause substantial dilution, and could materially affect the trading price of our common shares. The Company becoming a "passive foreign investment company" could also have material adverse U.S. federal income tax consequences for U.S. Holders. We do not currently intend to pay dividends, which could affect your ability to achieve a return on your investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's ability to meet expectations and projections in any research or reports published by securities or industry analysts, or a lack of coverage by securities or industry analysts, could result in a depressed market price and limited liquidity for its shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company may be required to take write-downs or write-offs, restructuring and impairment or other charges that could have a significant negative effect on its financial condition, results of operations and share price, which could cause you to lose some or all of your investment.

**Risks Relating to Li-Cycle's Business**

***Li-Cycle's success will depend on its ability to economically and efficiently source, recover and recycle lithium-ion battery materials, as well as third-party black mass, and to meet the market demand for an environmentally sound, closed-loop solution for lithium-ion battery manufacturing scrap and end-of-life lithium-ion batteries.***

Li-Cycle's future business depends in large part on its ability to economically and efficiently source, recycle and recover lithium-ion battery materials (including end-of-life batteries and battery manufacturing scrap), as well as third-party black mass, and to meet the market demand for an environmentally sound, closed-loop solution for lithium-ion battery manufacturing scrap and end-of-life lithium-ion batteries. Although it currently recycles and recovers lithium-ion battery materials at Spoke facilities in Ontario, New York State, Arizona, and Alabama, Li-Cycle will need to scale its recycling capacity in order to successfully implement its global growth strategy and plans to do so in the future by, among other things, successfully building and developing additional Spoke & Hub facilities, including its first commercial Hub facility in Rochester, New York and the Company's first European Spokes, in Norway and Germany.

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Although Li-Cycle has experience in recycling lithium-ion battery materials in its existing Spoke facilities, Li-Cycle has not yet developed or operated a Hub facility on a commercial scale to produce and sell battery grade materials. Li-Cycle does not know whether it will be able to develop efficient, automated, low-cost recycling capabilities and processes, or whether it will be able to secure reliable sources of supply, in each case that will enable it to meet the production standards, costs and volumes required to successfully recycle LIB and meet its business objectives and customer needs. Even if Li-Cycle is successful in high-volume recycling in its current and future facilities, it does not know whether it will be able to do so in a manner that avoids significant delays and cost overruns, including as a result of factors beyond its control, such as problems with suppliers, or in time to meet the commercialization schedules of future recycling needs or to satisfy the requirements of its customers. Li-Cycle's ability to effectively reduce its cost structure over time is limited by the fixed nature of many of its planned expenses in the near-term, and its ability to reduce long-term expenses is constrained by its need to continue investment in its global growth strategy. Any failure to develop and scale such manufacturing processes and capabilities within Li-Cycle's projected costs and timelines could have a material adverse effect on its business, results of operations and financial condition.

***Li-Cycle may not be able to successfully implement its global growth strategy, on a timely basis or at all.***

Li-Cycle's future global growth, results of operations and financial condition depend upon its ability to successfully implement its growth strategy, which, in turn, is dependent upon a number of factors, some of which are beyond Li-Cycle's control, including its ability to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Economically recycle and recover LIB and meet customers' business needs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Effectively introduce methods for higher recovery rates and solutions to recycling of LIB;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Complete the construction of its future facilities, including the Rochester Hub and the Spoke network, at a reasonable cost on a timely basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Invest and keep pace in technology, research and development efforts, and the expansion and defense of its intellectual property portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Secure and maintain required strategic supply arrangements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Secure and maintain leases for future Spoke & Hub facilities at competitive rates and in favorable locations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Apply for and obtain the permits necessary to operate Spoke & Hub facilities on a timely basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Effectively compete in the markets in which it operates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Attract and retain management or other employees who possess specialized knowledge and technical skills.

There can be no assurance that Li-Cycle can successfully achieve any or all of the above initiatives in the manner or time period that it expects. Further, achieving these objectives will require investments that may result in both short-term and long-term costs without generating any current revenue and therefore may be dilutive to earnings. Li-Cycle cannot provide any assurance that it will realize, in full or in part, the anticipated benefits it expects to generate from its growth strategy. Failure to realize those benefits could have a material adverse effect on Li-Cycle's business, results of operations and financial condition.

***Li-Cycle may be unable to manage future global growth effectively.***

Even if it can successfully implement its global growth strategy, any failure to manage its growth effectively could materially and adversely affect Li-Cycle's business, results of operations and financial condition. Li-Cycle intends to expand its operations globally, which will require it to hire and train new employees in different countries; accurately forecast supply and demand, production and revenue; source and maintain supplies of LIB and third-party black mass; control expenses and investments in anticipation of expanded operations; establish new or expand current design, production, and sales and service facilities; and implement and enhance administrative infrastructure, systems and processes. Future growth may also be tied to acquisitions, and Li-Cycle cannot guarantee that it will be able to effectively acquire other businesses or integrate businesses that it acquires. Failure to efficiently manage any of the above could have a material adverse effect on Li-Cycle's business, results of operations and financial condition.

***The development of Li-Cycle's Rochester Hub, Spoke network and other future projects is subject to risks, including with respect to engineering, permitting, procurement, construction, commissioning and ramp-up, and Li-Cycle cannot guarantee that these projects will be completed in a timely manner, that their costs will not be***

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***significantly higher than estimated, or that the completed projects will meet expectations with respect to their productivity or the specifications of their respective end products, among others.***

Li-Cycle's Rochester Hub, Spoke network and other future projects are subject to development risks, including with respect to engineering, permitting, procurement, construction, commissioning and ramp-up. Because of the uncertainties inherent in estimating construction and labor costs, including as a result of unfavorable market conditions, and the potential for the scope of a project to change, it is relatively difficult to evaluate accurately the total funds that will be required to complete the Rochester Hub, Spoke network or other future projects. Further, Li-Cycle's estimates of the amount of time it will take to complete the Rochester Hub, Spoke network or other future projects are based on assumptions about the timing of engineering studies, permitting, procurement, construction, commissioning and ramp-up, all of which can vary significantly from the time an estimate is made to the time of completion. Li-Cycle cannot guarantee that the costs of the Rochester Hub, Spoke network or other future projects will not be higher than estimated, or that it will have sufficient capital to cover any increased costs, or that it will be able to complete the Rochester Hub, Spoke network or other future projects within expected timeframes. Any such cost increases or delays could negatively affect Li-Cycle's results of operations and ability to continue to grow, particularly if the Rochester Hub, Spoke network or any other future project cannot be completed. Further, there can be no assurance that the Rochester Hub or the Spoke network will perform at the expected production rates or unit costs, or that their respective end products will meet the intended specifications.

***Failure to materially increase recycling capacity and efficiency could have a material adverse effect on Li-Cycle's business, results of operations and financial condition.***

Although Li-Cycle's existing facilities in Ontario, New York State, Arizona, and Alabama currently have total main line processing capacity and ancillary processing capacity of over 50,000 tonnes of LIB per year, the future success of Li-Cycle's business depends in part on its ability to significantly increase recycling capacity and efficiency at its facilities. Li-Cycle may be unable to expand its business, satisfy demand from its current and new customers, maintain its competitive position and achieve profitability if it is unable to build and operate future facilities. The construction of future facilities will require significant cash investments and management resources and may not meet Li-Cycle's expectations with respect to increasing capacity, efficiency and satisfying additional demand. For example, if there are delays in any future planned Hub, such as its current development and construction of the Rochester Hub, construction of the Spoke network and/or the future construction of other Spoke & Hub facilities, or if its facilities do not meet expected performance standards or are not able to produce materials that meet the quality standards Li-Cycle expects, Li-Cycle may not meet its target for adding capacity, which would limit its ability to increase sales and result in lower than expected sales and higher than expected costs and expenses. Failure to drastically increase recycling and processing capacity or otherwise satisfy customers' demands may result in a loss of market share to competitors, damage Li-Cycle's relationships with its key customers, a loss of business opportunities or otherwise materially adversely affect its business, results of operations and financial condition.

***Li-Cycle may engage in strategic transactions, including acquisitions, that could disrupt its business, cause dilution to its shareholders, reduce its financial resources, result in the incurrence of debt, or prove not to be successful.***

From time to time, Li-Cycle may enter into transactions to acquire other businesses or technologies, to enter into joint ventures or to develop additional commercial relationships and its ability to do so successfully cannot be ensured. On January 26, 2022, Li-Cycle entered into a joint venture agreement with ECO STOR AS ("ECO STOR") and Morrow Batteries AS ("Morrow") to form Li-Cycle Norway AS through which it is constructing the Norway Spoke. In January 2022, we announced that we would be developing a co-located Spoke with a strategic industry partner in Warren, Ohio, to enhance our ability to serve their recycling needs. In addition to these ventures, Li-Cycle is currently considering certain other joint ventures, strategic partnerships and acquisitions to support its growth strategy, including but not limited to the development of new Spoke & Hub facilities, but it does not currently have any binding commitments for such transactions other than as described herein. Li-Cycle will be dependent on its strategic partners with respect to the Norway Spoke and any other joint ventures. Conflicts or disagreements between Li-Cycle and its strategic partners, or failure of Li-Cycle's strategic partners to commit sufficient resources to a joint venture may, among other things, delay or prevent the successful development or operation of the Norway Spoke or other joint ventures, which could have a material adverse effect on Li-Cycle's business, financial condition, results of operations and prospects. Li-Cycle's acquisitions or other strategic transactions could include the payment of the purchase price in whole or in part using Li-Cycle's common shares, which would have a dilutive impact on existing shareholders. Li-Cycle may also decide to incur debt in connection with an acquisition or any other strategic transaction. Even if Li-Cycle identifies suitable opportunities for acquisitions, joint ventures or other strategic transactions, Li-Cycle may not be able to make such transactions on favorable terms or at all. Any strategic transactions Li-Cycle makes may not strengthen its competitive position, and these transactions may be viewed negatively by customers, suppliers or investors. Li-Cycle could incur losses resulting from undiscovered liabilities of an acquired business that we failed to or were unable to discover or were unable to quantify in the course of performing due diligence and that are not covered by any indemnification Li-Cycle may obtain from the seller. In addition, Li-Cycle may not be able to successfully integrate the acquired

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personnel, technologies and operations into its existing business in an effective, timely and non-disruptive manner. Strategic transactions may also divert management attention from day-to-day responsibilities, increase Li-Cycle's expenses and reduce Li-Cycle's cash available for operations and other uses. In addition, Li-Cycle may not be able to fully recover the costs of such acquisitions, joint ventures or other strategic transitions or be successful in leveraging any of them into increased business, revenue or profitability. Li-Cycle also cannot predict the number, timing or size of any future transactions or the effect that any such transactions might have on its results of operations. Accordingly, although there can be no assurance that Li-Cycle will undertake or successfully complete any acquisitions, joint ventures or other strategic transactions, any transactions that Li-Cycle does complete may be subject to the foregoing or other risks and may have a material adverse effect on Li-Cycle's business, financial condition, results of operations and prospects.

***Expanding internationally involves risks that could delay our expansion plans and/or prohibit us from entering markets in certain jurisdictions, which could have a material adverse effect on our results of operations.***

International operations, such as those we intend to establish, are subject to certain risks inherent in doing business abroad, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• political, civil and economic instability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks of war and other hostilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• corruption risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• trade, customs and tax risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• currency exchange rates and currency controls;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limitations on the repatriation of funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• insufficient infrastructure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• economic sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrictions on exports, imports and foreign investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increases in working capital requirements related to long supply chains;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in labor laws and regimes and disagreements with the labor force;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulty in protecting intellectual property rights and complying with data privacy and protection laws and regulations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• different and less established legal systems.

Expanding our business in international markets, including the construction and operation of the Norway Spoke and Germany Spoke, is an important element of our strategy and, as a result, our exposure to the risks described above may be greater in the future. The likelihood of such occurrences and their potential effect on our business and results of operations will vary from country to country and are unpredictable, but could have a material adverse effect on our ability to execute our strategy and accordingly on our business, results of operations and financial condition.

***Li-Cycle is and will be dependent on its recycling facilities. If one or more of its current or future facilities become inoperative, capacity constrained or if operations are disrupted, Li-Cycle's business, results of operations and financial condition could be materially adversely affected.***

Li-Cycle's revenue is and will be dependent on the continued operations of its Kingston, Ontario; Rochester, New York; Gilbert, Arizona and Tuscaloosa, Alabama Spoke facilities as well as its future facilities, including its planned Rochester Hub, European Spokes and any other facilities it develops in the future. To the extent that Li-Cycle experiences any operational risk events including, among other things, fire and explosions, severe weather and natural disasters (such as floods, windstorms, wildfires and earthquakes), failures in water supply, major power failures, equipment failures (including any failure of its process equipment, information technology, air conditioning, and cooling and compressor systems), a cyber-attack or other incident, failures to comply with applicable regulations and standards, labor force and work stoppages, including those resulting from local or global pandemics or otherwise, or if its current or future facilities become capacity constrained, Li-Cycle may be required to make capital expenditures even though it may not have sufficient available resources at such

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time. Additionally, there is no guarantee that the proceeds available from any of Li-Cycle's insurance policies will be sufficient to cover such capital expenditures. Li-Cycle's insurance coverage and available resources may prove to be inadequate for events that may cause significant disruption to its operations. Any disruption in Li-Cycle's recycling processes could result in delivery delays, scheduling problems, increased costs or production interruption, which, in turn, may result in its customers deciding to send their end-of-life lithium-ion batteries and battery manufacturing scrap to Li-Cycle's competitors. Li-Cycle is and will be dependent on its current and future facilities, which will in the future require a high degree of capital expenditures. If one or more of Li-Cycle's current or future facilities become inoperative, capacity constrained or if operations are disrupted, its business, results of operations and financial condition could be materially adversely affected.

***Li-Cycle may in the future need to raise additional funds to meet its capital requirements and such funds may not be available to Li-Cycle on commercially reasonable terms or at all, which could materially adversely affect Li-Cycle's business, results of operations and financial condition.***

The closed loop resource recovery, logistics management, secure destruction and add-on services of Li-Cycle's lithium-ion battery recycling operations are capital-intensive. Although Li-Cycle believes that it will have sufficient funds to meet its capital requirements for the next 12 months, it may in the future need to raise additional funds, including through the issuance of equity, equity linked or debt securities or through obtaining credit from government or financial institutions, and the availability of additional funds to Li-Cycle will depend on a variety of factors, some of which are outside of its control. Additional funds may not be available to Li-Cycle on commercially reasonable terms or at all, which could materially adversely affect its business, results of operations and financial condition. If additional funds are raised by issuing equity or equity-linked securities, shareholders of Li-Cycle may incur dilution.

***Li-Cycle has a history of losses and expects to incur significant expenses for the foreseeable future, and there is no guarantee it will achieve or sustain profitability.***

Li-Cycle was until 2020 a development stage company with no commercial revenues, and incurred net losses of approximately $53.7 million for the year ended October 31, 2022, $226.6 million for the year ended October 31, 2021 and $9.4 million for the year ended October 31, 2020. The loss for the year ended October 31, 2021, included a one-time listing fee of $152.7 million in relation to the Business Combination between Li-Cycle and Peridot Acquisition Corp. which was finalized on August 10, 2021 and represents the difference between the estimated fair value of the consideration transferred and the estimated fair value of assets acquired and liabilities assumed in the transaction. In addition, the loss for the twelve months ended October 31, 2021, included a $33.8 million fair value loss to remeasure Company warrants to their publicly traded fair market value. For the year ended October 31, 2022, Li-Cycle's revenue was $13.4 million, and it recorded a net loss of $53.7 million, which included a $36.2 million fair value gain on the redemption of all outstanding warrants. As of January 31, 2022, the warrants were no longer publicly traded. Li-Cycle's primary sources of liquidity are currently the funds raised from the Business Combination, including the PIPE Financing, the KSP Convertible Notes, the LG Subscription, and the Glencore Convertible Note, as well as funds generated by operating activities. Li-Cycle expects both its capital and operating expenditures will increase significantly in connection with Li-Cycle's ongoing activities. Li-Cycle believes that its performance and future success is dependent on multiple factors that present significant opportunities for Li-Cycle to increase revenues, but also pose risks and challenges. Li-Cycle believes it will continue to incur losses for the foreseeable future and there is no guarantee it will achieve or sustain profitability in the future.

***Problems with the handling of lithium-ion battery cells that result in less usage of lithium-ion batteries or affect Li-Cycle's operations could materially adversely affect Li-Cycle's business, results of operations and financial condition.***

On rare occasions, lithium-ion battery cells can rapidly release the energy they contain by venting smoke and flames in a manner that can ignite nearby materials as well as other lithium-ion battery cells. Negative public perceptions regarding the safety or suitability of lithium-ion battery cells for automotive applications, the social and environmental impacts of cobalt mining or any future incident involving lithium-ion battery cells, such as a vehicle or other fire, even if such incident does not involve Li-Cycle directly, could have a negative impact on the market for lithium-ion batteries, reducing the number of batteries in the market and Li-Cycle's revenue.

In addition, recycling of lithium-ion batteries requires Li-Cycle to store a significant number of lithium-ion battery cells at its facilities. We are subject to risks associated to mishandling of lithium-ion battery cells, which could cause disruption to the operation of Li-Cycle's current or future facilities. While Li-Cycle has implemented safety procedures related to the handling of the cells, a safety issue or fire related to the cells could disrupt Li-Cycle's operations. Any impact on revenue resulting from reduced demand for lithium-ion batteries or on Li-Cycle's operations from perceived or actual safety or security issues at its own facilities could materially adversely affect Li-Cycle's business, results of operations and financial condition.

***Li-Cycle's business is subject to operational and project development risks that could disrupt our business, some of which may not be insured or fully covered by insurance.***

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Our operations (including future operations such as our Rochester Hub and additions to our Spoke network) are subject to risks inherent in the lithium-ion battery recycling industry and risks associated with the construction and development of new facilities, including potential liability which could result from, among other circumstances, personal injury, environmental claims or property damage, some of which may not be insured or fully covered at any time by insurance. The availability of, and the ability to collect on, insurance coverage is subject to various factors some of which are beyond our control and is not guaranteed to cover any or all of our losses in every circumstance. Li-Cycle's insurance coverage at any time may also be inadequate to fully cover hazard risk exposures related to any such operational risks.

Li-Cycle has no control over changing conditions and pricing in the insurance marketplace and the cost or availability of various types of insurance may change dramatically in the future. Moreover, Li-Cycle may not be able to maintain adequate insurance in the future at rates we consider reasonable and commercially justifiable, and insurance may not continue to be available on terms as favorable as our current arrangements. The occurrence of a significant uninsured loss, or a loss in excess of the insurance coverage limits maintained by Li-Cycle, could materially adversely affect Li-Cycle's business, results of operations and financial condition.

***Li-Cycle's revenue depends on maintaining and increasing feedstock supply commitments as well as securing new sources of supply.***

Li-Cycle is reliant on obtaining lithium-ion batteries and battery manufacturing scrap for recycling at its Spokes through contracts with third-party suppliers. Li-Cycle also expects to procure black mass from third parties for processing at its future Hubs, to supplement its internal production. As a result, in order to maintain and expand its business, Li-Cycle must continue to maintain and expand its pipeline from existing suppliers, and develop and gain new sources of supply. However, it is difficult to predict whether and when Li-Cycle will secure such commitments due to competition for suppliers and the lengthy process of negotiating supplier agreements, which may be affected by factors that Li-Cycle does not control, such as market and economic conditions, financing arrangements, commodity prices, environmental issues and government approvals. Suppliers may change or delay supply under their contracts for any number of reasons, including force majeure or government approval factors that are unrelated to Li-Cycle. There can be no assurance that Li-Cycle will attract new suppliers or expand its supply pipeline from existing suppliers, and the inability to secure adequate supply could have a negative impact on Li-Cycle's business, results of operation and financial condition.

***Li-Cycle relies on a limited number of customers and the projected revenues for the Rochester Hub are derived significantly from a single customer.***

Li-Cycle relies on a limited number of customers from whom we generate most of our revenue. Li-Cycle has entered into two off-take agreements with Traxys covering (i) 100% of its production of black mass, from Li-Cycle's North American Spokes, other than such black mass as Li-Cycle has determined (in its sole discretion) is required for internal purposes at Li-Cycle's Hubs, and (ii) 100% of its production of certain end products from Li-Cycle's Rochester Hub, being lithium carbonate, nickel sulphate, cobalt sulphate, manganese carbonate and graphite concentrate. Li-Cycle has also entered into additional off-take agreements with Glencore, covering substantially all of our other Spoke and Hub products. If our off-take partners are unwilling or unable to fulfill their contractual obligations to us, if either party fails to perform under the relevant contract, or if these off-take partners otherwise terminate such agreements prior to their expiration, our business, results of operations and financial condition could be materially and adversely affected and we may not be able to find a other off-take partners on similar or more favorable terms, which could have a material adverse effect on our business, results of operations and financial condition.

Our commercial agreements with Glencore also provide for the procurement of feedstock for our Spoke facilities, and procurement of black mass for our future Hub facilities, to supplement the volumes we are currently either independently sourcing or producing. Although these agreements are not exclusive for either party, they also do not commit either party to a specific performance threshold, and therefore a substantial reduction in Glencore's supply of either product or an unwillingness or inability to fulfill its contractual obligations to us could have a material adverse effect on our business, results of operations and financial condition.

***A decline in the adoption rate of EVs, or a decline in the support by governments for "green" energy technologies, could adversely affect the demand for Li-Cycle's recycling services and products, and materially harm Li-Cycle's financial results and ability to grow its business.***

The demand for Li-Cycle's recycling services and products is driven in part by projected increases in the demand for EVs (including automobiles, e-bikes, scooters, buses and trucks). A decline in the adoption rate of EVs or a decline in the support by governments for "green" energy technologies could reduce the demand for Li-Cycle's recycling services and products, which could materially harm Li-Cycle's financial results and ability to grow its business. A decline in volume under existing contracts or an inability to source new supplier relationships could also have a material adverse effect on Li-Cycle's results of operations.

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***Decreases in demand and fluctuations in benchmark prices for the metals contained in Li-Cycle's products could significantly impact Li-Cycle's costs, revenues and results of operations.***

The prices that Li-Cycle pays for battery feedstock for its Spokes, and the revenue that Li-Cycle currently recognizes from the sale of Black Mass & Equivalents and shredded metal produced at Li-Cycle's Spokes, are generally tied to commodity prices for the metals contained in those battery feedstocks or products, notably nickel, cobalt and copper. After the Rochester Hub becomes operational, and Li-Cycle starts processing black mass internally, Li-Cycle expects to recognize revenue from the sale of battery grade products, including nickel sulphate, cobalt sulphate and lithium carbonate. The amount of revenue that Li-Cycle will recognize from the sale of these products will also be impacted by the commodity prices for the metals contained in these end products, notably lithium, nickel and cobalt. As a result, fluctuations in the prices of these commodities will affect Li-Cycle's costs and revenues and declines in the prices of these commodities could have a material adverse impact on Li-Cycle's revenues and result in fluctuations in its margins. Any significant decline in Li-Cycle's revenues and margins will have a material impact on its results of operations.

***In addition to commodity prices, Li-Cycle's revenues are primarily driven by the volume and composition of LIB processed at its facilities and changes in the volume or composition of LIB processed could significantly impact Li-Cycle's revenues and results of operations.***

Li-Cycle's revenues depend on processing high volumes of LIB at its facilities, and its revenues are directly impacted by the chemistry of the LIB processed, particularly as market chemistries shift. Certain feedstock chemistries such as those containing higher amounts of nickel and cobalt command higher prices than others. A decline in overall volume of feedstock processed, or a decline in volume of LIB chemistries with higher-priced content relative to other LIB chemistries, could result in a significant decline in Li-Cycle's revenues, which in turn would have a material impact on its results of operations.

***The development of an alternative chemical make-up of lithium-ion batteries or battery alternatives could materially adversely affect Li-Cycle's revenues and results of operations.***

The development and adoption of alternative battery technologies could materially adversely affect Li-Cycle's prospects and future revenues. Current and next generation high energy density lithium-ion batteries for use in products such as EVs use nickel and cobalt as significant inputs. Cobalt and nickel tend to be in lower supply and therefore command higher prices than certain other raw materials. Alternative chemical makeups for lithium-ion batteries or battery alternatives are being developed and some of these alternatives could be less reliant on cobalt and nickel or use other lower-priced raw materials such as lithium-iron phosphate chemistries, which contain neither cobalt nor nickel. A shift in production to batteries using lower-priced raw materials could affect the value of the end products produced by Li-Cycle, lowering its revenues and negatively impacting its results of operations.

***Li-Cycle's heavy reliance on the experience and expertise of its management may cause material adverse impacts on it if a management member departs.***

Li-Cycle depends on key personnel for the success of its business. Li-Cycle's business may be severely disrupted if it loses the services of its key executives and employees or fails to add new senior and middle managers to its management.

Li-Cycle's future success is heavily dependent upon the continued service of its key executives. Li-Cycle also relies on a number of key technology staff for its continued operation. Li-Cycle's future success is also dependent upon its ability to attract and retain qualified senior and middle managers to its management team. If one or more of its current or future key executives or employees are unable or unwilling to continue in their present positions, Li-Cycle may not be able to easily replace them, and its business may be severely disrupted. In addition, if any of these key executives or employees joins a competitor or forms a competing company, Li-Cycle could lose customers and suppliers and incur additional expenses to recruit and train personnel.

***Li-Cycle's relies on third-party consultants for its regulatory compliance and Li-Cycle could be materially adversely impacted if the consultants do not correctly inform Li-Cycle of the legal changes.***

Li-Cycle depends on third-party consultants to work with it across all of its projects to ensure correct permitting, regulatory compliance and keep Li-Cycle apprised of legal changes. Li-Cycle may face non-compliance challenges if the third-party consultants do not inform Li-Cycle of the proper compliance measures or if Li-Cycle fails to maintain its engagement with third-party consultants. If Li-Cycle is not in compliance with the current regulations, it could face litigation, sanctions and fees, which could materially adversely impact its business, results of operations and financial condition.

***Li-Cycle is subject to the risk of litigation or regulatory proceedings, which could materially adversely impact its financial results.***

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All industries, including the lithium-ion battery recycling industry, are subject to legal claims, with or without merit. From time to time, we are subject to various litigation and regulatory proceedings arising in the normal course of business. Due to the inherent uncertainty of the litigation process, we may not be able to predict with any reasonable degree of certainty the outcome of any litigation or the potential for future litigation. Regardless of the outcome, any legal or regulatory proceeding could have a material adverse impact on Li-Cycle's business, prospects, financial conditions and results of operations due to defense costs, the diversion of management resources, potential reputational harm and other factors. On April 19, 2022, a putative securities class action lawsuit was filed in the U.S. District Court for the Eastern District of New York against the Company, its CEO, and its former CFO, on behalf of a proposed class of purchasers of the Company's publicly traded securities. The complaint, which is captioned as Barnish v. Li-Cycle Holdings Corp., et al., 1:22-cv-02222 (E.D.N.Y.), seeks compensatory damages and an award of costs. See also Note 18 in our financial statements for the year ended October 31, 2022.

***Li-Cycle may not be able to complete its recycling processes as quickly as customers may require, which could cause it to lose supply contracts and could harm its reputation.***

Li-Cycle may not be able to complete its recycling processes to meet the supply it receives from its customers. Operating delays and interruptions can occur for many reasons, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• equipment failures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• personnel shortage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• labor disputes; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transportation disruptions.

The recycling process for LIB, as well as black mass, is complex. If Li-Cycle fails to complete its recycling processes in a timely fashion, its reputation may be harmed. Any failure by Li-Cycle to complete its recycling processes in a timely fashion may also jeopardize existing orders and cause Li-Cycle to lose potential supply contracts and be forced to pay penalties.

***Li-Cycle operates in an emerging, competitive industry and if it is unable to compete successfully its revenue and profitability will be materially adversely affected.***

The lithium-ion recycling market is competitive. As the industry evolves and the demand increases, Li-Cycle anticipates that competition will increase. Li-Cycle currently faces competition primarily from companies that focus on one type of lithium-ion material recycling, some of which have more expertise in the recycling of that material than Li-Cycle. Li-Cycle also competes against companies that have a substantial competitive advantage because of longer operating histories and larger budgets, as well as greater financial and other resources. National or global competitors could enter the market with more substantial financial and workforce resources, stronger existing customer relationships, and greater name recognition, or could choose to target medium to small companies in Li-Cycle's traditional markets. Competitors could focus their substantial resources on developing a more efficient recovery solution than Li-Cycle's solutions. Competition also places downward pressure on Li-Cycle's contract prices and gross margins, which presents it with significant challenges in its ability to maintain strong growth rates and acceptable gross margins. If Li-Cycle is unable to meet these competitive challenges, it could lose market share to its competitors and experience a material adverse impact to its business, financial condition and results of operations.

***Increases in income tax rates, changes in income tax laws or disagreements with tax authorities could materially adversely affect Li-Cycle's business, results of operations and financial condition.***

Li-Cycle is subject to income taxes in the United States, Canada and in certain foreign jurisdictions in which it operates. Increases in income tax rates or other changes in income tax laws that apply to its business could reduce Li-Cycle's after-tax income from such jurisdiction and could materially adversely affect its business, financial condition and results of operations. Li-Cycle's operations outside the United States generate a significant portion of its revenue. In addition, the United States has recently made or is actively considering changes to existing tax laws. Additional changes in the U.S. tax regime, including changes in how existing tax laws are interpreted or enforced, could materially adversely affect Li-Cycle's business, results of operations and financial condition.

Li-Cycle is also subject to regular reviews, examinations and audits by the IRS and other taxing authorities with respect to income and non-income-based taxes both within and outside the United States. Economic and political pressures to increase tax revenues in jurisdictions in which it operates, or the adoption of new or reformed tax legislation or regulation, may make resolving tax disputes more difficult and the final resolution of tax audits and any related litigation could differ from its historical provisions and accruals, resulting in a material adverse impact

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on its business, financial condition and results of operations. In addition, in connection with the Organization for Economic Co-operation and Development Base Erosion and Profit Shifting project, companies are required to disclose more information to tax authorities on operations around the world, which may lead to greater audit scrutiny of profits earned in various countries.

***Li-Cycle's operating and financial results may vary significantly from period to period due to fluctuations in its operating costs and other factors.***

Li-Cycle expects its period-to-period operating and financial results to vary based on a multitude of factors, some of which are outside of Li-Cycle's control. Li-Cycle expects its period-to-period financial results to vary based on operating costs, which it anticipates will fluctuate with the pace at which it increases its operating capacity. As a result of these factors and others, Li-Cycle believes that quarter-to-quarter comparisons of its operating or financial results, especially in the short term, are not necessarily meaningful and that these comparisons cannot be relied upon as indicators of future performance. Moreover, Li-Cycle's financial results may not meet expectations of equity research analysts, ratings agencies or investors, who may be focused only on quarterly financial results. If any of this occurs, the trading price of our common shares could fall substantially, either suddenly or over time.

***Fluctuations in foreign currency exchange rates could result in increases in Li-Cycle's operating costs when translated to U.S. dollars for reporting purposes.***

Li-Cycle reports its financial results in U.S. dollars. Its sales are mainly made in U.S. dollars and its cash is mainly denominated in U.S. dollars, but its operating costs and capital expenditure are also realized in currencies other than the U.S. dollar, including Canadian dollars, Euros, Swiss Francs and certain other currencies. If the value of any of the other currencies in which Li-Cycle's operating costs and capital expenditure are realized appreciates relative to the U.S. dollar, Li-Cycle's operating costs and capital expenditure will increase when translated to U.S. dollars for reporting purposes. Fluctuations in foreign currency exchange rates, particularly the U.S.-Canadian dollar exchange rate, could create discrepancies between Li-Cycle's operating costs and capital expenditure in a given currency that could have a material adverse effect on its business, results of operations and financial condition.

While Li-Cycle monitors its exposure to foreign-exchange rate fluctuations and may enter into hedging contracts from time to time, such contracts hedge foreign-currency denominated transactions and any change in the fair value of the contracts could be offset by changes in the underlying value of the transactions being hedged. Li-Cycle does not currently have foreign-exchange hedging contracts in place. As a result, there can be no assurance that Li-Cycle's approach to managing its exposure to foreign-exchange rate fluctuations will be effective in the future or that Li-Cycle will be able to enter into foreign-exchange hedging contracts as deemed necessary on satisfactory terms.

***Unfavorable economic conditions, including the consequences of the global COVID-19 pandemic, disruptions in the global supply chain and inflation, could have a material adverse effect on Li-Cycle's business, results of operations and financial condition.***

Li-Cycle has been impacted by the COVID-19 pandemic, and Li-Cycle cannot predict the future impacts the COVID-19 pandemic, including the emergence of new strains such as the Omicron or Delta variant, may have on its business, results of operations and financial condition. Beginning in March 2020, numerous government regulations and public advisories, as well as shifting social behaviors, temporarily and from time to time limited or closed non-essential transportation, government functions, business activities and person-to-person interactions, and the duration of such trends is difficult to predict. The continued impact of COVID-19 on manufacturing production may lead to less demand for lithium-ion batteries, impacting the resulting contribution of batteries and battery-related scrap material to the recycling market over the short-to-medium term.

The ongoing COVID-19 pandemic and geo-political events have resulted in significant supply chain disruptions globally and continue to affect Li-Cycle's business in the form of operational slow-downs and interruptions, including those caused by employee absences and mandatory quarantines resulting from actual or suspected exposure to COVID-19. The Company has, at times, experienced slow-downs and interruptions in its battery supply chain. Li-Cycle shut down its corporate headquarters in March 2020 and enforced a work-from home mandate. Li-Cycle re-opened its corporate office facilities in November 2021. A second temporary closure of Li-Cycle's corporate headquarters occurred in January 2022 related to the Omicron variant and the corporate office facilities subsequently re-opened in February 2022. Li-Cycle cannot currently predict the duration of the impact of the COVID-19 pandemic on its operations. Continuing effects of the COVID-19 pandemic, including the emergence of new strains of the virus may cause governments to impose new restrictive measures, result in employee absences from work or result in negative economic effects, which in each case could have a material adverse impact on Li-Cycle's operations, development and construction activities and financial condition.

Li-Cycle's operations, costs and timelines may also be affected by global economic markets and levels of consumer comfort and spend, including recessions, slow economic growth, economic and pricing instability, inflation levels, increase of interest rates and credit market volatility, all of which could impact demand in the

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worldwide transportation industries or otherwise have a material adverse effect on Li-Cycle's business, results of operations and financial condition. For example, Russia's invasion of Ukraine has and may continue to further exacerbate disruptions in the global supply chain. Shortages, price increases and/or delays in shipments of supplies, equipment and raw materials have occurred and may continue to occur in the future which may result in increased operational or construction costs or operational or construction slowdowns. Because the impact of current conditions on an ongoing basis is yet largely unknown, is rapidly evolving and has been varied across geographic regions, this ongoing assessment will be particularly critical to allow Li-Cycle to accurately project supply and demand and infrastructure requirements globally and allocate resources accordingly. If current global market and political conditions continue or worsen, Li-Cycle's business, results of operations and financial condition could be materially adversely affected.

***Natural disasters, unusually adverse weather, epidemic or pandemic outbreaks, cyber incidents, boycotts and geo-political events could materially adversely affect Li-Cycle's business, results of operations and financial condition.***

The occurrence of one or more natural disasters, such as fires, hurricanes and earthquakes, unusually adverse weather, epidemic or pandemic outbreaks, such as the ongoing COVID-19 pandemic, cyber incidents such as ransomware attacks, boycotts and geo-political events, such as civil unrest and acts of terrorism (including cyber terrorism or other cyber incidents), or similar disruptions could materially adversely affect Li-Cycle's business, power supply, results of operations and financial condition. These events could result in physical damage to property, an increase in energy prices, temporary or permanent closure of one or more of Li-Cycle's current or planned facilities, temporary lack of an adequate workforce in a market, temporary or long-term disruption in the supply of raw materials, construction delays at the Rochester Hub, new Spoke facilities or other facilities being developed, temporary disruption in transport from overseas, or disruption to Li-Cycle's information systems. Li-Cycle may incur expenses or delays relating to such events outside of its control, which could have a material adverse impact on its business, results of operations and financial condition.

***Failure to protect or enforce Li-Cycle's intellectual property could materially adversely affect its business.***

Li-Cycle's success depends in large part on its proprietary technology. Li-Cycle relies on various intellectual property rights, including patents, copyrights, trademarks, and trade secrets, as well as confidentiality provisions and contractual arrangements, and other forms of statutory and common law protection to protect its proprietary rights. If Li-Cycle does not protect and enforce its intellectual property rights adequately and successfully, its competitive position may suffer, which could materially adversely affect the Company's business, prospects, financial condition and results of operations.

Li-Cycle's pending patent or trademark applications may not be approved, or competitors or others may challenge the validity, enforceability, or scope of its issued patents, the scope of its copyrights, the registrability of its trademarks or the trade secret status of its proprietary information. There can be no assurance that additional patents will be filed or issued or that any of Li-Cycle's currently issued patents will provide significant protection for Li-Cycle's commercially relevant intellectual property or for those portions of its proprietary technology that are the most key to its competitive positions in the marketplace. In addition, Li-Cycle's patents, copyrights, trademarks, trade secrets, and other intellectual property rights may not provide us a significant competitive advantage. There is no assurance that the forms of intellectual property protection that Li-Cycle seeks, including business decisions about whether, when and where to file patents and when and how to maintain and protect copyrights, trade secrets, license and other contractual rights, will be adequate to protect Li-Cycle's business.

Not all countries offer the same types, standards for registrability or level of protection for the Company's intellectual property as Canada and the United States, and Li-Cycle may not pursue the same intellectual property filings or obtain the intellectual property registrations of the same scope in all of its commercially-relevant markets. As Li-Cycle expands its international activities, its exposure to unauthorized copying and use of its technology and proprietary information will likely increase. Effective intellectual property protection may not be available to Li-Cycle in every country in which it operates. In addition, many countries limit the enforceability of patents against certain third parties, including government agencies or government contractors, or make patents subject to compulsory licenses to third parties under certain circumstances. In these countries, patents may provide limited or no benefit.

Intellectual property laws, procedures, and restrictions provide only limited protection and any of the Company's intellectual property rights may be challenged, invalidated, circumvented, infringed, or misappropriated. The Company enters into confidentiality and invention assignment or intellectual property ownership agreements with its employees and contractors and enters into confidentiality agreements with other third parties. The Company cannot ensure that these agreements, or all the terms thereof, will be enforceable or compliant with applicable law, or otherwise effective in controlling access to, use of, reverse engineering, and distribution of Li-Cycle's proprietary information or in effectively securing exclusive ownership of intellectual property developed by its current or former employees and contractors. Despite these agreements and the Company's reasonable precautions, its intellectual property is vulnerable to misappropriation, unauthorized access and copying through employee or third-party error

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or actions, including malicious state or state-sponsored actors, theft, hacking, cybersecurity incidents, and other security breaches and incidents, and such incidents may be difficult to detect and may remain undiscovered or unknown for a significant period of time. Further, these agreements with the Company's employees, contractors, and other parties do not prevent other parties from independently developing technologies, products and services that are substantially equivalent or superior to the Company's technologies and services. It is possible for third parties to infringe upon or misappropriate the Company's intellectual property and to use information that Li-Cycle regards as proprietary to create services that compete with those of the Company.

Li-Cycle may need to spend significant resources securing and monitoring its intellectual property rights, and it may or may not be able to detect infringement by third parties. Li-Cycle's competitive position may be materially adversely impacted if it cannot detect infringement or enforce its intellectual property rights quickly or successfully. In some circumstances, Li-Cycle may choose not to pursue enforcement of its valid intellectual property rights for a variety of legal and business considerations, including (i) because an infringer has a dominant intellectual property position, (ii) because of uncertainty relating to the scope of the Company's intellectual property or the outcome of an enforcement action, (iii) because of the financial and reputational costs associated with enforcement or (iv) for other business reasons. In addition, competitors might avoid infringement by designing around the Company's intellectual property rights or by developing non-infringing competing technologies. Litigation brought to protect and enforce the Company's intellectual property rights could be costly, time-consuming, and distracting to management and Li-Cycle's development teams and could result in the impairment or loss of portions of its intellectual property, for example, the Company's efforts to enforce its intellectual property rights may be met with defenses, counterclaims attacking the scope, validity, and enforceability of the Company's intellectual property rights, or with counterclaims and countersuits asserting infringement by the Company of third-party intellectual property rights. Li-Cycle's failure to secure, protect, and enforce its intellectual property rights could materially adversely affect its brand and its business, any of which could have a material adverse effect on the Company's business, prospects, financial condition and results of operations.

***Li-Cycle may be subject to intellectual property rights claims by third parties, which could be costly to defend, could require payment of significant damages and could limit the Company's ability to use certain technologies.***

Li-Cycle is subject to the risk of third parties asserting claims of infringement of intellectual property rights or violation of other statutory, license or contractual rights in technology or data. Any such claim by a third party, even if without merit, could cause Li-Cycle to incur substantial costs defending against such claim and could distract the Company's management and its development teams from its business.

Although third parties may offer a license to their technology or data, the terms of any offered license may not be acceptable or commercially reasonable and the failure to obtain a license or the costs associated with any license could cause the Company's business, prospects, financial condition, and results of operations to be materially adversely affected. In addition, some licenses may be non-exclusive, and therefore the Company's competitors may have access to the same technology or data licensed to the Company. Alternatively, Li-Cycle may be required to develop non-infringing technology or data which could require significant effort and expense and ultimately may not be successful. Furthermore, a successful claimant could secure a judgment or the Company may agree to a settlement that prevents it from selling certain products or performing certain services in a given country or countries or that requires the Company to pay royalties, substantial damages, including treble damages if it is found to have willfully infringed the claimant's patents, copyrights, trade secrets or other statutory rights, or other fees. Any of these events could have a material adverse effect on the Company's business, prospects, financial condition and results of operations.

***Li-Cycle has identified material weaknesses in its internal control over financial reporting. If its remediation of such material weaknesses is not effective, or if it fails to develop and maintain a proper and effective internal control over financial reporting, its ability to produce timely and accurate financial statements or comply with applicable laws and regulations could be impaired.***

Prior to August 10, 2021, Li-Cycle Holdings Corp. was a private company and we addressed our internal control over financial reporting with internal accounting and financial reporting personnel and other resources.

In the course of preparing for the Business Combination with Peridot Acquisition Corp., Li-Cycle identified material weaknesses in its internal control over financial reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of Li-Cycle's annual or interim consolidated financial statements may not be prevented or detected on a timely basis.

As of October 31, 2022, Li-Cycle's management assessed the effectiveness of the Company's internal control over financial reporting and concluded that the Company did not maintain effective internal control over financial reporting as of that date. Management has also evaluated the effectiveness of our disclosure controls and procedures as of October 31, 2022 and concluded that, as of that date, the Company's disclosure controls and

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procedures were not effective, due to the material weaknesses in the Company's internal control over financial reporting.

While we have taken steps to address these material weaknesses and expect to continue to implement a remediation plan to address the underlying causes, any gaps or deficiencies in our internal control over financing reporting may result in us being unable to provide required financial information in a timely and reliable manner and/or incorrectly reporting financial information. In addition, there can be no assurance that these measures will remediate the material weaknesses in our internal control over financial reporting or that additional material weaknesses in our internal control over financial reporting will not be identified in the future. For more information, see Item 15. Control and Procedures".

**Risks Relating to Ownership of Our Securities**

***Our by-laws provide, subject to limited exceptions, that the Superior Court of Justice of the Province of Ontario and the appellate courts therefrom are the sole and exclusive forum for certain shareholder litigation matters, which could limit shareholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers, employees or shareholders.***

Our by-laws require, to the fullest extent permitted by law and subject to certain exemptions for actions brought to enforce a duty or liability under certain U.S. securities laws, that (i) derivative actions brought in our name, (ii) actions against directors, officers and employees for breach of fiduciary duty, (iii) any action or proceeding asserting a claim arising pursuant to the OBCA or our governing documents, and (iv) any action or proceeding asserting a claim otherwise related to our "affairs" (as defined in the OBCA) may be brought only in the Superior Court of Justice of the Province of Ontario, Canada and the appellate courts therefrom and, if brought outside of such forum, the shareholder bringing the suit will be deemed to have consented to the personal jurisdiction of the provincial and federal courts located within the Province of Ontario in connection with any action brought in such court to enforce the forum provisions and to service of process on such shareholder's counsel. Any person or entity purchasing or otherwise acquiring any interest in our common shares shall be deemed to have notice of and consented to the forum provisions in its articles. Unless we consent in writing to the selection of an alternative forum, the federal district courts of the United States of America will have exclusive jurisdiction for the resolution of any complaint asserting a cause of action arising under the U.S. Securities Act. The exclusive forum provision in our by-laws will not apply to actions arising under the Securities Act or the Exchange Act.

This choice of forum provision may limit a shareholder's ability to bring a claim in a judicial forum that it finds favorable for disputes with us or any of our directors, officers, other employees or shareholders, which may discourage lawsuits with respect to such claims. Alternatively, if a court were to find the choice of forum provision contained in our articles to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could harm our business, results of operations and financial condition.

***Our common shares have only recently become publicly traded, and the market price of our common shares may be volatile. The trading price of our common shares could be subject to wide fluctuations due to a variety of factors, including:***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our actual or anticipated operating performance and the operating performance of our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure of securities analysts to initiate or maintain coverage of us, changes in financial estimates by any securities analysts who follow our company, or our failure to meet the estimates or the expectations of investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any major change in our board of directors, management, or key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• market conditions in our industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the COVID-19 pandemic and its impact on the markets and economies in which we operate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic conditions such as recessions, inflation, interest rates, fuel prices, international currency fluctuations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• rumors and market speculation involving us or other companies in our industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• announcements by us or our competitors of significant innovations, new products, services or capabilities, acquisitions, strategic investments, partnerships, joint venture or capital commitments;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the legal and regulatory landscape and changes in the application of existing laws or adoption of new laws that impact our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• legal and regulatory claims, litigation, or pre-litigation disputes and other proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other events or factors, including those resulting from war, incidents of terrorism, or responses to these events; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales or expected sales of our common shares by us, our officers, directors, significant shareholders, and employees.

In addition, stock markets have experienced significant price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. The stock market in general and the NYSE have experienced price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of the particular companies affected. These fluctuations may be even more pronounced in the trading market for our common shares as a result of the supply and demand forces for newly public companies. In the past, stockholders have instituted securities class action litigation following periods of stock volatility.

***The NYSE may delist our common shares, which could limit investors' ability to engage in transactions in our common shares and subject us to additional trading restrictions.***

Our common shares are listed on the New York Stock Exchange. In order to list our common shares, upon the consummation of the Business Combination, we were required to meet the NYSE initial listing requirements. Although we were able to meet those initial listing requirements, we may be unable to maintain the listing of our common shares in the future.

If the NYSE were to delist our common shares, we could face significant material adverse consequences, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a limited availability of market quotations for our securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a limited amount of news and analyst coverage for the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a decreased ability to obtain capital or pursue acquisitions by issuing additional equity or convertible securities.

***Because Li-Cycle has historically operated as a private company, we have limited experience complying with public company obligations and fulfilling these obligations is expensive and time consuming and may divert management's attention from the day-to-day operation of our business.***

As a privately held company, Li-Cycle was not required to comply with many corporate governance and financial reporting practices and policies required of publicly-traded companies. As a publicly traded company, we incur significant legal, accounting and other expenses that Li-Cycle was not required to incur in the recent past. Since we stopped qualifying as an "emerging growth company" as defined under the Jumpstart Our Business Startups Act of 2012 ("JOBS Act") on October 31, 2022, these expenses are expected to increase further. In addition, new and changing laws, regulations and standards relating to corporate governance and public disclosure for public companies, including the Dodd-Frank Act, the Sarbanes-Oxley Act, regulations related thereto and the rules and regulations of the SEC and NYSE, have increased the costs and the time that must be devoted to compliance matters. We expect these laws and regulations to increase our legal and financial compliance costs and to render some activities more time-consuming and costly. We expect that we will continue to need to hire more employees or engage outside consultants to comply with these requirements, which will increase our costs and expenses. As a public company, it could be more difficult or costly for us to obtain certain types of insurance, including director and officer liability insurance, and we may be forced to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. As a public company, it could be more difficult and expensive for us to attract and retain qualified persons to serve on our board of directors, board committees or as executive officers. Furthermore, if we are unable to satisfy our obligations as a public company, we could be subject to delisting of our common shares, fines, sanctions and other regulatory action and potentially civil litigation.

***As a "foreign private issuer" under the rules and regulations of the SEC, we are permitted to, and will, file less or different information with the SEC than a company incorporated in the United States or otherwise subject to these rules, and will follow certain home country corporate governance practices in lieu of certain NYSE requirements applicable to U.S. issuers.***

The Company is considered a "foreign private issuer" under the Exchange Act and is therefore exempt from certain rules under the Exchange Act. For example, we are not required to file current reports on Form 8-K or

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quarterly reports on Form 10-Q, we are exempt from the U.S. proxy rules which impose certain disclosure and procedural requirements for U.S. proxy solicitations and we will not be required to file financial statements prepared in accordance with or reconciled to U.S. GAAP so long as our financial statements are prepared in accordance with IFRS as issued by the International Accounting Standards Board. We are not required to comply with Regulation FD, which imposes restrictions on the selective disclosure of material information to shareholders, and our officers, directors and principal shareholders are exempt from the reporting and shortswing profit recovery provisions of Section 16 of the Exchange Act. In addition, we are not required to file periodic reports and financial statements with the SEC as frequently or within the same time frames as U.S. companies with securities registered under the Exchange Act. Accordingly, holders of the Company's securities may receive less or different information about the Company than they may receive with respect to public companies incorporated in the United States.

In addition, as a "foreign private issuer" whose common shares are listed on NYSE, we are permitted to follow certain home country corporate governance practices in lieu of certain NYSE requirements.

We could lose our status as a "foreign private issuer" under current SEC rules and regulations if more than 50% of our outstanding voting securities become directly or indirectly held of record by U.S. holders and one of the following is true: (i) the majority of our directors or executive officers are U.S. citizens or residents; (ii) more than 50% of our assets are located in the United States; or (iii) our business is administered principally in the United States. If we lose our status as a foreign private issuer in the future, we will no longer be exempt from the rules described above and, among other things, will be required to file periodic reports and annual and quarterly financial statements as if we were a company incorporated in the United States (including preparation of financial statements in accordance with U.S. GAAP). If this were to happen, we would likely incur substantial costs in fulfilling these additional regulatory requirements and members of our management would likely have to divert time and resources from other responsibilities to ensuring these additional regulatory requirements are fulfilled.

***Failure to develop and maintain effective internal control over financial reporting could have a material adverse effect on our business, results of operations and the trading price of our common shares.***

Since the consummation of the Business Combination and the transactions related thereto, the Company has been required to comply with Section 404 of the Sarbanes-Oxley Act, on the timeline described below. Section 404 of the Sarbanes-Oxley Act requires, among other things, that the Company evaluate annually the effectiveness of its internal control over financial reporting. The standards required for a public company under Section 404 of the Sarbanes-Oxley Act are significantly more stringent than those required of Li-Cycle prior to the Business Combination. Section 404(a) of the Sarbanes-Oxley Act requires management to assess and report annually (beginning with the second annual report following the Business Combination, being this annual report), on the effectiveness of internal control over financial reporting and to identify any material weaknesses in internal control over financial reporting. Additionally, Section 404(b) of the Sarbanes-Oxley Act requires the independent registered public accounting firm to issue an annual report that addresses the effectiveness of internal control over financial reporting.

Li-Cycle has identified material weaknesses in its internal control over financial reporting, see "*Risk Factors — Risks Relating to Li-Cycle's Business — Li-Cycle has identified material weaknesses in its internal control over financial reporting. If its remediation of such material weaknesses is not effective, or if it fails to develop and maintain a proper and effective internal control over financial reporting, its ability to produce timely and accurate financial statements or comply with applicable laws and regulations could be impaired"* For the report of KPMG LLP, our registered public accounting firm, see "Item 15.C. Attestation Report of Registered Public Accounting Firm".

If we continue to identify deficiencies in our internal control over financial reporting or if we are unable to comply with the requirements applicable to us as a public company in a timely manner, we may be unable to accurately report our financial results, or report them within the timeframes required by the SEC. If this occurs, we also could become subject to sanctions or investigations by the SEC or other regulatory authorities.

Management may not be able to effectively and timely implement controls and procedures that adequately respond to the increased regulatory compliance and reporting requirements that are applicable to the Company, including under Section 404 of the Sarbanes-Oxley Act. In addition, if we are unable to assert that our internal control over financial reporting is effective, or if our independent registered public accounting firm is unable to express an opinion as to the effectiveness of our internal control over financial reporting, or expresses an adverse opinion, investors may lose confidence in the accuracy and completeness of our financial reports, we may face restricted access to the capital markets and our share price may be materially adversely affected.

We expect to continue to incur costs related to our internal control over financial reporting in the upcoming years to further improve our internal control environment.

***We may issue additional common shares or other equity securities without shareholder approval, which would dilute the ownership interests of existing shareholders in the Company and may depress the market price of our common shares.***

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We may issue additional shares or other equity securities in the future in connection with, among other things, capital raises, future acquisitions, repayment of outstanding indebtedness or grants under the Company's 2021 Incentive Award Plan (the "Long-Term Incentive Plan"), without shareholder approval in a number of circumstances. Pursuant to the terms of the KSP Convertible Notes and the Glencore Convertible Note, we may issue common shares upon conversion or redemption of the KSP Convertible Notes or Glencore Convertible Note, as applicable, upon exercise of the warrants issued to Glencore in connection with a redemption of the Glencore Convertible Note or pursuant to any other term of the KSP Convertible Notes or Glencore Convertible Note, as applicable, including as a result of any of the PIK provisions of the KSP Convertible Notes or Glencore Convertible Note, as applicable.

The issuance of additional shares or other equity securities could have one or more of the following effects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our existing shareholders' proportionate ownership will decrease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the amount of cash available per share, including for payment of dividends in the future, may decrease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the relative voting strength of each previously outstanding share may be diminished; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the market price of our common shares may decline.

***The issuance of our common shares in connection with the conversion of the KSP Convertible Notes and the Glencore Convertible Note would cause substantial dilution, and could materially affect the trading price of our common shares.***

As of the date of this annual report, there is an aggregate principal amount of $105.9 million outstanding under the KSP Convertible Notes and $200 million outstanding under the Glencore Convertible Note. To the extent we or the holder of the KSP Convertible Notes or Glencore Convertible Note, as applicable, converts the KSP Convertible Notes or Glencore Convertible Note, as applicable, into our common shares, substantial amounts of our common shares will be issued. Such issuances could result in substantial decreases to our stock price and dilution to our existing shareholders.

***We do not currently intend to pay dividends on our common shares and, consequently, your ability to achieve a return on your investment will depend on appreciation in the price of our common shares.***

We currently intend to retain our future earnings, if any, to finance the further development and expansion of our business and do not intend to pay cash dividends in the foreseeable future. Any future determination to pay dividends will be at the discretion of our board of directors and will depend on our financial condition, results of operations, capital requirements and future agreements and financing instruments, business prospects and such other factors as our board of directors deems relevant. As a result, a shareholder's ability to achieve a return on their investment in our common shares will depend on appreciation in the price of our common shares.

***The Company's ability to meet expectations and projections in any research or reports published by securities or industry analysts, or a lack of coverage by securities or industry analysts, could result in a depressed market price and limited liquidity for its shares.***

The trading market for the Company's common shares will be influenced by the research and reports that industry or securities analysts may publish about it, its business, its market, or its competitors. If no securities or industry analysts commence coverage of the Company, its share price would likely be less than that which would be obtained if it had such coverage and the liquidity, or trading volume of its common shares may be limited, making it more difficult for a shareholder to sell shares at an acceptable price or amount. If any analysts do cover the Company, their projections may vary widely and may not accurately predict the results it actually achieves. The Company's share price may decline if its actual results do not match the projections of research analysts covering it. Similarly, if one or more of the analysts who write reports on the Company downgrades its shares or publishes inaccurate or unfavorable research about its business, its share price could decline. If one or more of these analysts ceases coverage of the Company or fails to publish reports on it regularly, its share price or trading volume could decline.

***The Company may be required to take write-downs or write-offs, restructuring and impairment or other charges that could have a significant negative effect on its financial condition, results of operations and share price, which could cause you to lose some or all of your investment.***

The Company may be forced to later write down or write off assets, restructure its operations, or incur impairment or other charges that could result in losses. Unexpected risks may arise and previously known risks may materialize. Even though these charges may be non-cash items and not have an immediate impact on the Company's liquidity, the fact that it may report charges of this nature could contribute to negative market perceptions about the

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Company or its securities. In addition, charges of this nature may cause the Company to be unable to obtain future financing on favorable terms or at all.

***The Company could be or may become a passive foreign investment company, which could result in materially adverse U.S. federal income tax consequences.***

It is possible that the Company could be classified as a "passive foreign investment company" or "PFIC" for U.S. federal income tax purposes, which would have materially adverse U.S. tax consequences for U.S. persons holding the Company's common shares. Although the Company was not a PFIC for the last taxable year, and does not expect to be classified as a PFIC for the current taxable year or for the foreseeable future, whether the Company is a PFIC is a factual determination made annually, and the Company's status will depend among other things upon changes in the composition and relative value of its gross receipts and assets. Because the market value of the Company's assets (including for this purpose goodwill) may be measured in large part by the market price of the common shares, which is likely to fluctuate, no assurance can be given that the Company will not be a PFIC in the current year or in any future taxable year.

**ITEM 4. INFORMATION ON THE COMPANY** 

**A. History and development of the Company**

***General***

Li-Cycle started business as Li-Cycle Corp., which was incorporated under the laws of the Province of Ontario on November 18, 2016. Li-Cycle Holdings Corp. was incorporated on February 12, 2021 under the laws of the Province of Ontario, Canada as a corporation solely for the purpose of effectuating the Business Combination, which was consummated on August 10, 2021. It is governed by Articles of Amalgamation dated August 10, 2021.

Our principal executive office is located at 207 Queen's Quay West, Suite 590, Toronto, Ontario, Canada and our phone number is (877) 542-9253. Our agent for service of process in the United States is Puglisi & Associates located at 850 Library Avenue, Suite 204, Newark, DE 19711.

The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC which is accessible at http://www.sec.gov.

Our principal website address is http://www.li-cycle.com. The information contained on our website does not form a part of, and is not incorporated by reference into, this annual report.

***Development of the Company***

Li-Cycle was founded in 2016 by our CEO, Ajay Kochhar, and Executive Chair, Tim Johnston, with the mission of solving the global disposal problem for end-of-life lithium-ion batteries, including lithium-ion battery manufacturing scrap and end-of-life lithium-ion batteries (collectively, "LIB") while simultaneously creating a secondary source of critical battery grade materials. Li-Cycle's core business model is to build, own and operate recycling plants tailored to regional needs. Li-Cycle's Spoke & Hub Technologies™ provide an environmentally-friendly resource recovery solution that addresses the growing LIB recycling challenges supporting the global transition toward electrification.

Li-Cycle opened its first pilot facility in Canada in 2017, which had a recycling capacity of 50 tonnes of LIB feed per year. In 2018, it launched its first Spoke & Hub demonstration facility in Kingston, Ontario. Li-Cycle commissioned its first commercial Spoke facility in 2019 in Kingston, Ontario, with a recycling capacity of 2,500 tonnes per year, and upgraded this facility to 5,000 tonnes per year in 2020. In late 2020, Li-Cycle opened a second commercial Spoke facility, in Rochester, New York, with a recycling capacity of 5,000 tonnes per year.

In the first quarter of 2021, Li-Cycle announced the development and construction of the Arizona Spoke; it commenced operations in May 2022, with a processing capacity of 10,000 tonnes per year.

In the fourth quarter of 2021, Li-Cycle announced the development of the Alabama Spoke; it commenced operations in October 2022, with processing capacity of 10,000 tonnes per year.

In 2022, the Company added a total of 21,000 tonnes per year of ancillary processing capacity at its New York Spoke and Arizona Spoke, bringing its aggregate installed processing capacity to 51,000 tonnes per year.

The Company is developing the Rochester Hub, which will be its first commercial Hub facility. It is expected to initiate commissioning in stages in late calendar 2023.

The Company has also announced the development of its first two European Spokes, to be located in Germany and Norway.

For more information about our development projects, see "D. Property, Plants and Equipment". For a discussion of our principal capital expenditures, see "Item 5. Operating and Financial Review and Prospects—Operational Updates."

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***Business Combination***

On August 10, 2021, Li-Cycle Corp., Li-Cycle Holdings Corp. (a wholly-owned subsidiary of Li-Cycle prior to the Business Combination) and Peridot Acquisition Corp. ("Peridot") completed the Business Combination pursuant to a plan of arrangement under the *Business Corporations Act* (Ontario) (the "Arrangement"). Pursuant to the Business Combination, Li-Cycle Corp. became a wholly-owned subsidiary of Li-Cycle Holdings Corp.

Upon the closing of the Business Combination and a concurrent $315.5 million private placement of common shares (the "PIPE Financing"), the combined company received $581.9 million of gross transaction proceeds, before deduction of $29.6 million of Peridot's transaction costs and $27.0 million of Li-Cycle's transaction costs.

On the closing of the Business Combination, the Company's common shares were listed on the NYSE under the symbol "LICY".

**B. BUSINESS OVERVIEW** 

*Shareholders should read this section in conjunction with the more detailed information about the Company contained in this annual report, including our audited financial statements and the other information appearing in the section entitled "Item 5. Operating and Financial Review and Prospects."* 

**Our Company**

Li-Cycle is an industry leader in lithium-ion battery resource recovery and the leading lithium-ion battery recycler in North America. When we refer to ourselves as the leading lithium-ion battery recycler in North America, we are referring to our status based on installed permitted capacity for lithium-ion battery recycling measured in tonnes per year. Our proprietary "Spoke & Hub" recycling and resource recovery process is designed (a) at our Spokes, to process battery manufacturing scrap and end-of-life batteries to produce "black mass" and other intermediate products, and (b) at our Hubs, to process black mass to produce battery grade materials, including nickel sulphate, cobalt sulphate and lithium carbonate. Our Spoke & Hub process enables up to an overall 95% Recycling Efficiency Rate, as compared to what we believe to be a 50% traditional industry average.

We pioneered what we believe to be an innovative and scalable metallurgical processing method with our Spoke & Hub Technologies™. We expect to make a valuable contribution to the EV industry and the world's transition to a circular economy by offering an environmentally-friendly recycling solution to energy-intensive pyrometallurgical processing methods. We believe our production costs are on average lower than the mining and processing costs otherwise incurred by suppliers to produce these materials because we are able to produce multiple materials from a single process and because our process yields minimal waste and no displaced earth or tailings, as compared to traditional mining processes. By re-inserting critical materials back into the lithium-ion battery supply chain, we are able to effectively close the loop between the beginning and end-of-life manufacturing phases in both an environmentally and what we believe to be an economically sustainable manner.

Lithium-ion batteries are increasingly powering products and solutions in a range of industries, including consumer electronics and EVs. Our sources of recycling feed are derived primarily from three key sources: 1) battery manufacturing scrap; 2) end-of-life lithium-ion batteries; and 3) damaged, defective, or recalled lithium-ion batteries.

An overview of the industries in which lithium-ion batteries are utilized is set forth below:

![licy-20221031_g1.jpg](licy-20221031_g1.jpg)

*Source: Expert Interviews, Secondary Research, and BIS Research Analysis* 

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**Our Strategy and Growing Network**

Our goal is to be a leading global recycler of lithium-ion batteries and battery manufacturing scrap and producer of key battery grade materials. Li-Cycle is positioned to grow in lockstep with the electrification supply chain, with plans to expand in line with the manufacturing of lithium-ion batteries and leverage its global network to capture and process manufacturing scrap or yield loss and end-of-life lithium-ion batteries. We intend to construct a global network of Spokes located at regionally optimized locations near sources of battery manufacturing scrap and end-of life batteries to reduce safety risk and costs associated with battery transport to our Spokes. We are strategically locating our Spokes close to our existing customers, and at the nexus of where we expect there will be continued growth of batteries and battery manufacturing scrap available for recycling.

We are also executing on our plan to construct centralized, large-scale Hubs to maximize economies of scale and efficiencies, with our first commercial Hub being under construction in Rochester, New York.

An overview of our current and planned Spoke and Hub operations, relative to centers of demand for recycling of lithium-ion battery manufacturing scrap, is set forth in the chart below.

![licy-20221031_g2.jpg](licy-20221031_g2.jpg)

*Source: Benchmark Minerals Intelligence (BMI) and Li-Cycle estimates as of September 2022*

We are evaluating additional global opportunities to scale our operations with a range of potential partners and expansion opportunities that may include acquisitions, joint ventures or other commercial arrangements in North America, Europe, and Asia Pacific. We seek to partner with multiple customers in each geography in connection with supply and off-take arrangements. Near to mid-term, our growth strategy is to focus on network expansion in North America and Europe with commercial connectivity to Asia, aligning with leading global customer demand needs.

**Our Industry** 

Li-Cycle is at the intersection of three broad and accelerating trends that we believe are key drivers for successful movement toward a zero-carbon economy: the EV revolution; sustainability with emphasis on a circular economy; and localized investments in battery production to establish and grow sustainable domestic supplies of strategic battery materials.

As battery manufacturers and automotive OEMs in the lithium-ion battery supply chain increasingly establish localized manufacturing operations in North America and Europe (see in chart below on left), we expect increased quantities of EV battery manufacturing scrap and end-of-life batteries to become available for recycling in those regions (see chart below on right).

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![licy-20221031_g3.jpg](licy-20221031_g3.jpg)

**Our Integrated Spoke & Hub Technologies™**

Li-Cycle's operating model enables a circular loop in the EV battery value chain, as shown in the chart below:

![licy-20221031_g4.jpg](licy-20221031_g4.jpg)

Under our two-part Spoke & Hub process, end-of-life batteries and battery-related scrap are first shipped to Spoke locations, where the materials are mechanically processed into several intermediate products, including black mass. Black mass from several Spoke locations will be received at a Hub location and processed through a hydrometallurgical (or "wet chemistry") process to produce battery grade materials, such as nickel sulphate, cobalt sulphate and lithium carbonate, which can be sold back into the battery supply chain and used in the manufacturing of new lithium-ion batteries.

Utilizing our Hub & Spoke Technologies™, we are able to establish up to an overall 95% Recycling Efficiency Rate. Our two-stage battery recycling model enables our customers to benefit from a safe and environmentally-friendly solution for recycling all types of lithium-ion batteries and lithium-ion battery materials.

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***Spokes*** 

At our Spokes, batteries for recycling are broken down through a mechanical size reduction process known as shredding and separated into black mass, shredded metals and mixed plastics. Black mass is a powder-like substance, which contains a number of valuable metals, including nickel, cobalt and lithium. Black mass is an intermediate product which is significantly easier and safer to transport than lithium-ion batteries and we intend to further process black mass produced at our Spokes at our future Hub facilities, including the Rochester Hub.

We continue to innovate our Spoke processing technology, which has evolved over three generations of design. Since the build and installation of the Company's first Spoke (the "Generation 1" Ontario Spoke in 2020), the Company has significantly evolved its Spoke design. The Ontario Spoke was a stick build format with a single shredder design. The Company's next Spoke facility (the "Generation 2" New York Spoke) was a modular build with increased recovery rates. The latest Spoke design (the "Generation 3" Arizona Spoke and Alabama Spokes) are based on a modular build, multi-stage shredding with capabilities to shred full-pack EV batteries, with increases to recovery rates.

Further, with each subsequent Spoke rollout, we have also incorporated capacity and processing upgrades to flex with our customers' growing volumes and mix of battery material form factors. Total processing capacity of our Spokes is comprised of "main line processing capacity" and "ancillary processing capacity". Main line processing capacity refers to the capacity to process materials using our patented submerged shredding process, or "wet shredding", designed specifically for battery materials that contain electrolyte and have risk of thermal runaway. Ancillary processing capacity refers to the capacity to process LIB through: 1) Dry Shredding, which processes materials that do not contain electrolyte and therefore are at less risk of thermal runaway, such as electrode foils; 2) Powder Processing, which processes electrode powders to minimize dusting in downstream processes; and 3) Baling, which processes electrode foils into formed cubes for optimizing logistics and downstream processing.

***Hubs*** 

At our Hub facilities, black mass from the Spokes will be separated through the hydrometallurgical circuit to produce individual raw materials with the purity levels required of raw materials to be used in battery production. The end products produced from black mass will include nickel sulphate, cobalt sulphate and lithium carbonate.

Our hydrometallurgical process is more efficient and more environmentally friendly than traditional pyrometallurgical processes, which involve volatizing or burning materials at high temperatures. Pyrometallurgical processes also have lower recovery rates, are carbon-intensive and can generate harmful emissions. Accordingly, the hydrometallurgical process is expected to become the preferred approach to lithium-ion battery recycling among manufacturers who are focused on product stewardship and environmental sustainability.

We expect to construct and operate two types of Hubs. A ternary Hub, such as the Hub we are currently constructing in Rochester, New York, will process all types of black mass. A lithium-ion phosphate ("LFP") Hub will have the capacity to process all types of black mass but will have dedicated capacity to process LFP black mass derived from LFP lithium-ion batteries, LFP lithium-ion battery materials, and LFP black mass to produce LFP cathode pertinent end-products (e.g., lithium carbonate). LFP lithium-ion batteries have historically been viewed by the market as more difficult to recycle than other lithium-ion batteries; we intend to address this deficiency by providing the industry the ability transform LFP-containing lithium-ion batteries into a valuable resource through our LFP Hubs.

**Operationalizing the Spoke & Hub Network**

We have a market-leading position in North America through our four operational Spokes, located in Kingston, Ontario (the "Ontario Spoke"), Rochester, New York (the "New York Spoke"), Gilbert, Arizona (the "Arizona Spoke") and Tuscaloosa, Alabama (the "Alabama Spoke") which together have a processing capacity of more than 50,000 tonnes of LIB per year. Our Ontario Spoke is a Generation 1 Spoke that was constructed in 2020. We are now working on plans to develop a new Generation 3 Spoke and warehouse facility in Kingston, Ontario to replace this existing site, with initial site work expected to commence during 2023. At our Generation 2 New York Spoke, we recently completed improvements which included upgrading the main line and the addition of ancillary processing capacity. Our Arizona Spoke and our Alabama Spoke are Generation 3 Spokes, incorporating multi-stage shredding with full-pack shredding capabilities. These plants have optionality for the addition of dual main lines and ancillary processing capacity.

We are also developing our first two European Spokes, located in Magdeburg, Germany (the "Germany Spoke") and Moss, Norway (the "Norway Spoke"). We are aligning our expansion plans in Europe with the highest-growing demand centers, with the Germany Spoke expected to start operations in 2023 and the Norway Spoke being re-timed from 2023 to 2024. The Germany Spoke is expected to have a total processing capacity of 30,000 tonnes of LIB per year, including two main lines and ancillary processing capacity. The Company will initially use the

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Norway Spoke as a consolidation and warehouse facility, with the installation of a 10,000 tonne main line and start of operations at this facility now planned for 2024.

In summary, with existing Spoke capacity and planned development in calendar 2023, we expect to have total LIB processing capacity of more than 80,000 tonnes, including main line processing capacity and ancillary processing capacity.

Li-Cycle's first commercial Hub is currently under construction in Rochester, New York. Li-Cycle expects the Rochester Hub will have nameplate input capacity to process 35,000 tonnes of black mass annually (equivalent to approximately 90,000 tonnes or 18 GWh of LIB feed annually). The facility is expected to have an output capacity of battery grade materials of approximately 42,000 to 48,000 tonnes per annum of nickel sulphate, 7,500 to 8,500 tonnes per annum of lithium carbonate and 6,500 to 7,500 tonnes per annum of cobalt sulphate.

See "D. Property, Plants and Equipment" for more information about our Spoke network and the Rochester Hub.

**Increasing and Diversifying In-Take and Off-Take Commercial Contracts** 

We continue to grow and diversity our portfolio of multi-year commercial contracts with leading global customers in the EV and lithium-ion battery ecosystem, including consumer electronics, manufacturing scrap, energy storage, and automotive OEMs/transportation companies.

*In-Take Sources for Recycling Feed to Spokes*

Li-Cycle procures all types of lithium-ion battery materials in the supply chain, including battery manufacturing scrap, battery recalls, and end-of-life batteries and contracts with numerous suppliers of end-of-life lithium-ion batteries and battery manufacturing scrap. Specifically, in fiscal 2022 we saw an increase in recycling needs for energy storage and EV battery packs, as in the below charts of our battery supply in-take sources:

![licy-20221031_g5.jpg](licy-20221031_g5.jpg)

*1.Measured by weight of battery materials* 

***Off-Take Commercial Contracts for Black Mass and Battery Grade Materials***

*Traxys Black Mass Off-Take Agreement from North American Spokes*

Li-Cycle has entered into a strategic marketing relationship with Traxys, a company that provides financial and logistics solutions to the metals, mining and energy industries. As part of this relationship, Li-Cycle has entered into a Black Mass Marketing, Logistics and Working Capital Agreement with Traxys, covering 100% of its production of black mass from its North American Spokes, until such time as this material is integrated by Li-Cycle into the supply chain for Li-Cycle's Hubs. Traxys earns marketing fees under the agreement, based on the final sales price of the black mass sold by Traxys to its third-party customers, as well as interest on provisional payments made from Traxys to Li-Cycle. Prices are based on index pricing for the nickel and cobalt contained in the black mass.

*Traxys Refined Products Off-Take Agreement from Rochester Hub*

Li-Cycle has also entered into a Refined Products Marketing, Logistics and Working Capital Agreement with Traxys, covering 100% of its production of certain end products from the Rochester Hub, consisting of nickel sulphate, cobalt sulphate, lithium carbonate, manganese carbonate and graphite concentrate. The Hub products agreement extends for a term expiring seven years after the achievement of certain commercial production milestones at the Rochester Hub, and is therefore expected to extend to 2030. Traxys earns marketing fees under the agreement, based on the final sales price of the end products sold by Traxys to its third-party customers, as well as interest on provisional payments made from Traxys to Li-Cycle. Prices are based on index pricing for the relevant end products, adjusted for the product form (e.g., for nickel sulphate product, prices are adjusted relative to index pricing for nickel metal, to reflect a premium for the battery grade nickel sulphate form). Commercial terms between

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Traxys and its third-party customers are arranged in advance, transparent to Li-Cycle and based on the commodity prices for the metals contained in the Li-Cycle products.

When the Rochester Hub commences commercial production, Li-Cycle expects that sales of battery grade materials through Traxys will represent the significant majority of its revenues.

*Glencore Strategic Global Commercial Arrangements* 

On June 1, 2022, the Company announced the entry into commercial agreements (collectively, the "Glencore Commercial Agreements") with Glencore, including the Master Commercial Agreement, the Amended & Restated Global Feed Sourcing Agreement, the Black Mass Sourcing Agreement, the Sulfuric Acid Supply Agreement, the Black Mass Off-Take Agreement, the End Products Off-Take Agreement and the By-Products Off-Take Agreement (which was amended as of October 24, 2022).

Subject to existing commitments of the Company and other exceptions (including materials required for the Company's operations), under the terms of the Glencore Commercial Agreements, Glencore will source and supply lithium-ion battery manufacturing scrap and other lithium-ion battery materials to the Company for use at the Company's Spokes; Glencore will source and supply black mass to the Company for use at the Company's Hubs; Glencore will supply sulfuric acid for use at the Company's Hubs; and Glencore will purchase, for its internal consumption or on-sale to third party end customers, black mass, battery-grade end products and certain by-products produced at the Company's Spokes and Hubs. Pursuant to the Glencore Commercial Agreements, Glencore will earn (i) sourcing fees on all feed flowing into the Company's Spokes; (ii) sourcing fees on all third party black mass flowing into the Company's Hubs; (iii) marketing fees on all black mass flowing out of the Company's Spokes and not flowing into the Company's Hubs; and (iv) end products marketing fees on all end products flowing out of the Company's Hubs or any third party processing sites that the Company may utilize.

The term of the Amended and Restated Global Feed Sourcing Agreement commenced on May 4, 2022 and the term of the other Glencore Commercial Agreements commenced on August 1, 2022. The term of each Commercial Agreement will, unless earlier terminated in accordance with the termination provisions of the Master Commercial Agreement, continue until the later to occur of (i) ten years from the date on which the Company's next Hub (after the completion of the North America Hub under construction in Rochester, New York) achieves a specified level of commercial production, and (ii) the date by which such Hub has processed a minimum quantity of black mass. The term of the Glencore Commercial Agreements will automatically renew on an evergreen basis for subsequent terms of five years after the expiry of the initial term, subject to the Company's right to terminate all (but not less than all) of the Glencore Commercial Agreements upon 365 days' prior notice to Glencore and payment of a termination fee based upon five times the aggregate value of the sourcing and marketing fees and certain other amounts invoiced in the preceding twelve months.

**Our Competitive Strengths** 

***Customer-Centric Solutions Provider***

We provide sustainable and customer-centric solutions for each of our customers' battery recycling needs. We provide the support necessary along each step of the process to ensure that our customers' battery recycling experience is handled in a manner that is safe, professional, and economically viable. In particular:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we work closely with a reliable network of logistics partners to support customers in transporting their batteries to our facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we offer our customers a home for the secure destruction of materials containing IP-sensitive design information, such as research and development batteries and battery materials. We have adopted procedures to protect the privacy and confidentiality of our customers' trade secrets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in addition to providing advice on packaging and support with procurement, we provide spare battery storage, manage comprehensive battery replacement campaigns and customize programs and services to individual customers' needs.

***Proprietary and Innovative Technology***

We have established proprietary technology that we believe sets us apart from competitors because our technology has the ability to respond to changes in battery chemistries and adapt to change in inputs to the battery recycling process. Our process produces the fundamental building blocks of lithium-ion batteries—cathode precursor input chemicals, cathode input chemicals and raw materials that can be reused in batteries or the broader economy. By contrast, competitive emerging technologies such as cathode-to-cathode recycling produce end-products that have a higher risk of obsolescence due to continuous cathode technology advancement.

Our highly experienced technical team is continuously engaged in research and development ("R&D") efforts to expand the scope of our processing capacities and drive other process improvements. For example, our Generation 3 Spokes have been engineered to process entire vehicles battery packs, without dismantling, while our ancillary processing lines have been developed to optimize the processing of various forms of battery materials. See

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"Item 4 D. Property, Plants and Equipment - Spoke Network". R&D work continues in support of our Spoke facilities, specifically focused on optimizing their operating parameters. With respect to our Hub facilities, we also continue to develop and evaluate new concepts with an eye to the future, including processing LFP and solid-state batteries.

***Leading Environmental Footprint***

While competitors face challenges adapting to increasingly stringent environmental regulations, Li-Cycle's scalable, sustainable, safe and patented Spoke & Hub Technologies™ are proactively designed for "best in class" environmental performance. Our Spoke & Hub process enables up to an overall 95% Recycling Efficiency Rate, as compared to what we believe to be a 50% traditional industry average. Our hydrometallurgical process produces minimal solid waste streams, zero wastewater discharge, and relatively low air emissions. By contrast, other hydrometallurgical technologies often have significant water emissions and solid waste streams, while smelting or thermal processing typically involves the burning of lithium-ion batteries that produces toxic emissions in the off-gas. The emissions caused by competitor methods present regulatory compliance challenges and complicate facility permitting. We believe that Li-Cycle's hydrometallurgical process leaves a comparatively smaller environmental footprint and provides a competitive advantage in terms of conforming to the requirements for municipal, state, and federal permitting processes associated with the development of our Spokes and our Rochester Hub, as well as meeting our customers' mandates for quality and sustainability.

In 2022, Li-Cycle was named to Fortune magazine's Change the World list for 2022, which recognizes companies that have made an important social or environmental impact. For three years in a row (2020, 2021 and 2022), Li-Cycle was named as a Global Cleantech 100 Company by the Cleantech Group. It was also named a Future 50 list company by Corporate Knights in 2022, in recognition for its rapid growth as a clean technology company in Canada.

***Significant Investments in Li-Cycle by Leading Global Battery Supply Chain Players, accompanied by Strategic Commercial Relationships***

Several leading global battery supply chain players have made investments in Li-Cycle, accompanied by strategic commercial relationships. We believe that the investment by and strategic partnerships we have established with these leading global players represents a strong validation of our business model. These arrangements have resulted in a combined total investment of $350 million in Li-Cycle, as described below:

*Glencore* 

On June 1, 2022, the Company announced that it had entered into the Glencore Commercial Agreements. The Glencore Commercial Agreements have a global scope and complement Li-Cycle's existing commercial arrangements with Traxys covering the Company's North American Spokes and Rochester Hub. See "—Off-Take Commercial Contracts for Black Mass and Battery Grade Materials —Glencore Strategic Global Commercial Arrangements", above. Glencore has invested $200 million in Li-Cycle, pursuant to an unsecured convertible note, issued on May 31, 2022, in a transaction exempt from registration under the Securities Act of 1933, as amended (the "Glencore Convertible Note"). See "Item 5. Operating and Financial Review and Prospects—Liquidity and Capital Resources— Sources of Liquidity — Debt Obligations" and "Item 10.C. Material Contracts" for more information about the Glencore Convertible Note and related agreements (including registration rights agreement and standstill agreement).

*LG Chem ("LGC") and LG Energy Solution ("LGES")* 

On April 20, 2022 the Company entered into a scrap offer agreement with LGES pursuant to which the Company will have the opportunity to recycle nickel-bearing lithium-ion battery manufacturing scrap and other lithium-ion battery material from LGES's North American manufacturing sites. In addition, on April 20, 2022, the Company entered into nickel sulphate off-take agreements with each of LGES and LGC pursuant to which the Company will allocate for sale, through its end-product off-take partner, Traxys, a combined initial allocation of 20,000 tonnes of nickel contained in nickel sulphate produced at the Rochester Hub to LGC and LGES over 10 years. These agreements will enable a closed-loop ecosystem for LGC and LGES for key materials in the lithium battery supply chain.

On May 11, 2022, LG and LGES invested a total of approximately $50.0 million in a subscription for common shares of the Company. See "Item 10C. Material Contracts—LG Subscription Agreements" and "Item 10C. Material Contracts—LG Standstill Agreements" for more information about the equity investment and related standstill agreement.

*Koch Strategic Platforms ("KSP")* 

KSP, a subsidiary of Koch Investments Group, through its affiliate, Wood River Capital, LLC, has invested $100 million in Li-Cycle pursuant to an unsecured convertible note to support the Company's growth opportunities

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in North America, Europe and Asia Pacific. We believe this strategic investment by KSP will provide Li-Cycle with access to key industry expertise and commercial opportunities across the broader Koch Industries ecosystem. See "Item 5. Operating and Financial Review and Prospects—Liquidity and Capital Resources—Debt Obligations," "Item 10C. Material Contracts—KSP Convertible Notes," "Item 10C. Material Contracts" for more information about the KSP Convertible Notes and related standstill agreement.

***Well Positioned for Governmental Financing Opportunities***

Li-Cycle continues to see favorable tailwinds from a number of new public policy programs in the North America and Europe aimed at providing financial support to facilitate domestic expansion of the battery supply infrastructure, essentially deeming this to be a critical strategic industry.

In the United States, the recent enactment of the Inflation Reduction Act, or the IRA, is expected to provide meaningful benefits to the EV battery recycling industry beginning in 2023. The IRA comes off the heels of the Bipartisan Infrastructure Law and the Presidential Determination investments to support critical materials for battery production, with total potential grants and loans under these programs of more than $325 billion, as illustrated below:

![licy-20221031_g6.jpg](licy-20221031_g6.jpg)

As a first mover with environmentally sustainable technology, Li-Cycle's patented technologies are proven in the North American market as a leading way to recycle lithium-ion batteries, providing Li-Cycle with two key advantages: 1) the opportunity to directly explore these government funding opportunities to potentially benefit our Spoke & Hub network growth; and 2) the capability to assist automakers in achieving the Clean Vehicle Tax Credit conditions by meeting their production requirements for domestic content via recycled material.

**Intellectual Property** 

As of October 31, 2022, Li-Cycle had a total of 54 pending utility patent applications and issued utility patents, grouped into six patent families based on common priority details, which cover aspects of Li-Cycle's innovative technologies and include issued patents or pending patent applications in Australia, Canada, China, Europe, Hong Kong, Japan, South Korea, United States, Belgium, Germany, France, United Kingdom, Netherlands, Sweden, Spain, Italy, Switzerland, Estonia, Finland, Croatia, Hungary, Norway, Poland and the World Intellectual Property Office. These applications and patents have filing dates between 2018 and 2022, and therefore will expire between 2038 and 2042.

All patents and patent applications are 100% owned by Li-Cycle.

**Our Vision, Mission and Commitment to Environmental, Social and Governance Leadership** 

Our vision is to be the world's most sustainable, vertically-integrated and globally pre-eminent lithium-ion battery recycling and resource recovery company. Our mission is: (i) to provide sustainable and safe customer-centric solutions and technology to solve the global end-of-life lithium-ion battery challenge, and (ii) to meet the rapidly growing demand for critical lithium-ion battery materials

By supporting the lithium-ion battery materials supply chain with an innovative recycling solution, we believe we are contributing to the global "green energy" transition and the movement toward a zero-carbon economy. We believe that environmental, social and governance ("ESG") leadership is important to the success of our business model and intend to develop corporate policies and business practices to support these values.

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**Our Focus on Quality and Sustainability**

We have instituted an Integrated Management System (developed on the basis of International Standards Organization ("ISO") standards) to guide our actions on health and safety, environmental and quality ("HSEQ") practices.

Our Ontario Spoke and New York Spoke facilities are registered to ISO 9001 quality standards, ISO 14001 environmental standards and ISO 45001 occupational health & safety standards. Our New York Spoke is registered to the Responsible Recycling ("R2") electronics recycling standard (Version 3) ("R2v3"). Our Ontario Spoke is registered to R2:2013, and it has completed the registration upgrade audit, and is awaiting award of registration, for R2v3. We are currently implementing key elements of the Integrated Management System at our Arizona Spoke and Alabama Spoke and reviewing tactical plans for registration of these facilities under ISO and R2v3 standards. Our corporate headquarters located in Toronto, Ontario has not been registered to these standards, given that no direct recycling operations are conducted at this location.

We prioritize the safety of our employees, suppliers, contractors and visitors. We aim for a "zero-harm" workplace and ensure compliance with all applicable occupational health and safety laws, regulations and standards in the jurisdictions in which we operate. We provide training to our employees on quality, health and safety and environmental and R2 requirements. We also ensure that our facilities (including lines, machinery and tools used) are equipped with safety instructions, allot the time to practice emergency procedures and expect our managers and employees to maintain clean and well-organized facilities. Our operating facilities are permitted and/or approved per applicable (and relevant) environmental, safety and building code requirements. Our HSEQ Department is responsible for the continuous improvement and optimization of permitting coverage for all our operations in a proactive manner.

We are tracking the environmental performance (including Scope 1 and 2 emissions) at all our operating sites and sub-systems, as we prepare for the publication of our initial ESG Report.

**Regulatory Landscape**

There continues to be increased activity in lithium-ion battery regulation globally in recent years, with a continued focus to create domestic supply chains.

In North America, various industry groups are focused on working with governments to identify opportunities to support the domestic supply of critical materials through regulation and financial support mechanisms. Government mandates also continue to drive increased infrastructure spending and funding availability for the battery supply chain. In the United States, on August 16, 2022, President Biden signed into law the Inflation Reduction Act, which provides over $300 billion to fund energy and climate projects aimed at reducing carbon emissions by 40% in 2030. Overall, the law includes numerous investments in climate protection, including investments in clean energy production and tax credits aimed at reducing carbon emissions. The expectation is that the financing mechanisms included in this legislation will further accelerate clean energy manufacturing and investment in the United States.

In the European Union, the recently concluded "trilogue" discussions between the European Commission, Parliament, and Council resulted in the provisional deal on the Battery Regulation, which is one of the most comprehensive legislative frameworks covering battery recycling. The legislation, which could enter into force later in 2023, would set forth bold recycling targets, including minimum material recovery rates of 90% for both cobalt and nickel by December 31, 2027 (also including a 'high level of ambition' mandate for at least a 95% material recovery rate for both cobalt and nickel by December 31, 2031); a minimum recovery rate of 50% for lithium by December 31, 2027 (also including a 'high level of ambition' mandate for at least an 80% material recovery rate for lithium by December 31, 2031); and a Recycling Efficiency Rate of least 65% by December 31, 2025 (also including a 'high level of ambition' mandate for a Recycling Efficiency Rate of at least 70% by December 31, 2030).

Additionally, the European Union is also in discussions to pass the so-called Critical Raw Materials Act ("CRMA"), which aims to boost secure and sustainable access to critical raw materials necessary for the European Union's ambitions for twin green and digital transitions. We believe that the CRMA will help support the battery recycling industry through increased public finance and new policies to facilitate investments in projects across the entire battery supply chain.

We believe Li-Cycle is well-positioned to comply with heightened battery regulations across the globe. Li-Cycle holds all licenses currently required in connection with its technologies and operations. Li-Cycle has engaged a third-party consultant to provide support with permitting and regulatory compliance across all Li-Cycle products, and to update Li-Cycle regularly regarding legal and regulatory developments applicable to its business.

**Legal Proceedings**

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From time to time, we are subject to various litigation and regulatory proceedings arising in the normal course of business. Where it is determined, in consultation with counsel based on litigation and settlement risks, that a loss is both probable and estimable, we establish an accrual. We expect that we may not be able to predict with certainty the outcome of any litigation or the potential for future litigation. We expect to continuously monitor any proceedings as they develop and adjust any accrual or disclosure as needed. Regardless of the outcome, litigation could have an adverse impact on us due to defense costs, diversion of management resources, potential reputational harm and other factors, and it could have a material effect on our results of operations for a given reporting period.

On April 19, 2022, a putative securities class action lawsuit was filed in the U.S. District Court for the Eastern District of New York against the Company, its CEO, and its former CFO, on behalf of a proposed class of purchasers of the Company's publicly traded securities during the period from February 16, 2021 through March 23, 2022. The complaint, which is captioned as Barnish v. Li-Cycle Holdings Corp., et al., 1:22-cv-02222 (E.D.N.Y.), alleges that the defendants issued false and misleading statements concerning Li-Cycle's business, which were revealed when Blue Orca Capital published a short seller report on March 24, 2022. The complaint seeks compensatory damages and an award of costs. The original complaint asserted claims under Sections 10(b) and 20(a) of the U.S. Securities Exchange Act of 1934 (the "Exchange Act"). On July 22, 2022, the court appointed The Lanigan Group, Inc. as lead plaintiff. On October 11, 2022, the lead plaintiff filed an amended complaint asserting claims pursuant to Section 14(a) of the Exchange Act and Sections 11 and 15 of the U.S. Securities Act of 1933 on behalf of a proposed class comprising: (a) all persons who were eligible to vote at Peridot Acquisition Corp.'s extraordinary general meeting held during August 2021, and (b) all persons who acquired Li-Cycle publicly traded securities pursuant to Li-Cycle's March 2021 Registration Statement. Unlike the original complaint, the amended complaint does not assert any claims under either Section 10(b) or Section 20(a) of the Exchange Act. The claims in the amended complaint are asserted against both the Company and certain individual defendants, including Li-Cycle's two Co-Founders, Li-Cycle's former CFO, two current directors of Li-Cycle (who were also directors and/or officers of Peridot Acquisition Corp. at the time of the Business Combination), and certain other directors or officers of Peridot Acquisition Corp. at the time of the Business Combination. On December 19, 2022, the Company and each of the individual defendants moved to dismiss the amended complaint in its entirety. The motion to dismiss is not yet fully briefed. The Company believes that the allegations in the amended complaint are without merit and intends to vigorously defend against this matter. No amounts have been recorded for any potential liability arising from this matter. See also Note 18 in our financial statements for the year ended October 31, 2022.

**C. Organizational Structure**

The following diagram depicts the organizational structure of the Company as of the date of this annual report.

![licy-20221031_g7.jpg](licy-20221031_g7.jpg)

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**D. Property, Plants and Equipment** 

***Spoke Network***

Li-Cycle currently has four operational Spokes in North America, located in Ontario, New York, Arizona and Alabama. The Company is also developing its first two European Spokes, in Germany and Norway. The Company is also continuing to add capacity to its Spoke network, with new developments and expansions of existing sites.

The Company continues to innovate its Spoke technology with each Spoke roll out, incorporating upgrades and improvements from the development of the preceding Spokes. Since the build and installation of the Company's first Spoke (the "Generation 1" Ontario Spoke in 2020), the Company has significantly evolved its Spoke design. The Ontario Spoke was a stick build format with a single shredder design. The Company's next Spoke facility (the "Generation 2" New York Spoke) was a modular build with increased recovery rates and added ancillary processing capacity. Both the Arizona Spoke and the Alabama Spoke are "Generation 3" Spokes and incorporate a modular build format, multi-stage shredding with capabilities to shred full-pack EV batteries, further increases to recovery rates, and optionality for multiple main lines and flex capacity with ancillary processing.

The table below outlines current available Spoke capacity and additional calendar 2023 expected Spoke capacity, by Spoke location:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | Ancillary Processing | Ancillary Processing | Ancillary Processing | |
| Annual tonnes of material processed | **Main Line¹** | **Dry Shredding²** | **Powder Processing³** | **Baling**<sup>4</sup> | **Total Processing Capacity** |
| Ontario Spoke | 5000 |  |  |  | 5000 |
| New York Spoke | 5000 | 5000 | 3000 | 5000 | 18000 |
| Arizona Spoke | 10000 | 5000 | 3000 |  | 18000 |
| Alabama Spoke | 10000 |  |  |  | 10000 |
| *Current available capacity* | *30000* | *10000* | *6000* | *5000* | *51000* |
| Germany Spoke | 20000 | 5000 |  | 5000 | 30000 |
| ***2023 expected capacity*** | ***50000*** | ***15000*** | ***6000*** | ***10000*** | ***81000*** |

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Notes

¹ Processes materials using Li-Cycle's patented submerged shredding process or "wet shredding" designed specifically for battery materials that contain electrolyte and have risk of thermal runaway.

² Processes materials that don't contain electrolyte and therefore are less risk of thermal runaway, such as electrode foils.

³ Processes electrode powders to minimize dusting in downstream processes.

<sup>4</sup> Processes electrode foils into formed cubes for optimizing logistics and downstream processing.

*Germany Spoke*

In 2022, Li-Cycle announced the development of a European Spoke to be based in Magdeburg, Germany, approximately 160 kilometers from Berlin. The Germany Spoke was planned to have an initial recycling capacity of at least 10,000 tonnes (2 GWh equivalent) per year, with the first main line expected to be operational in 2023. To meet customer demand and increase cost efficiencies, Li-Cycle now plans to install a second main line with capacity of 10,000 tonnes (2 GWh equivalent) per year in Germany by the end of calendar 2023. In addition, the Germany Spoke is expected to have capacity of 10,000 tonnes per year for ancillary processing.

*Norway Spoke*

In 2022, Li-Cycle entered into a joint venture agreement with ECO STOR AS ("ECO STOR") and Morrow Batteries AS ("Morrow") to form Li-Cycle Norway AS for the purpose of constructing the Norway Spoke. Li-Cycle is the majority owner of Li-Cycle Norway AS, with ECO STOR and Morrow being minority owners and Nordic-headquartered strategic partners. The Norway Spoke will be a Generation 3 Spoke, expected to have a main line recycling capacity of 10,000 tonnes (2 GWh equivalent). The Company has leased a site in Moss, Norway,

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approximately 60 kilometers from Oslo, for this operation, and the building is currently under construction. To prioritize the expansion plans for the Germany Spoke, the Company will initially use the Norway Spoke as a consolidation and warehouse facility, with the installation of a Generation 3 Spoke line and start of operations at this facility now planned for 2024.

*Ohio Spoke*

In 2022, Li-Cycle announced the development of the Ohio Spoke on site at the Ultium Cells LLC ("Ultium") battery cell manufacturing mega-factory in Warren, Ohio. Ultium announced that it would construct a new building for the Ohio Spoke, where Li-Cycle could install and operate its proprietary Spoke technology and equipment. Initial plans for the Ohio Spoke included recycling capacity of 15,000 tonnes (3 GWh equivalent) per year, with operations to commence in 2023. Based on Li-Cycle's overall Spoke development plan, which prioritizes the fastest growing electrification demand centers and prudently directing capital, the Ohio Spoke has been deferred. Li-Cycle does not expect the Ohio Spoke to be operational in 2023.

*Other Spoke Updates* 

Li-Cycle completed and operationalized its new Spokes in Arizona and Alabama in 2022. The costs to construct, commission and commence operations for the Arizona and Alabama Spokes were in total approximately $4.0 million higher than original estimates, due primarily to extended commissioning periods for these facilities, which were the first Generation 3 Spokes. The improvements developed through the commissioning process for these Spokes are expected to benefit the Company's future Generation 3 Spoke projects.

Li-Cycle completed improvements to its New York Spoke by the end of calendar 2022 including upgrading of the shredder and the addition of baling to supplement ancillary processing capacity. The New York Spoke now has variable capacity of up to 18,000 tonnes per year for processing a range of LIB feedstock types.

Li-Cycle is currently working on plans to develop an expanded Generation 3 Spoke and warehouse facility that will replace its existing Spoke in Kingston, Ontario (the "New Ontario Spoke"). Li-Cycle expects initial site work to commence during 2023. The new Ontario Spoke is currently expected to have a main line recycling capacity of 10,000 tonnes (2 GWh equivalent) of LIB per year.

***Rochester Hub***

Li-Cycle's first commercial Hub will be located in Rochester, New York, and is currently under construction (the "Rochester Hub"). Li-Cycle's Spoke facilities will be the primary suppliers of Black Mass & Equivalents feedstock for the Rochester Hub. The location for the Rochester Hub was specifically selected due to the nature of the infrastructure available at the site, including utilities and road/rail networks.

Li-Cycle completed a definitive feasibility study for the Rochester Hub in December 2021. Based on the definitive feasibility study, Li-Cycle expects the Rochester Hub will have the nameplate input capacity to process 35,000 tonnes of BM&E annually (equivalent to approximately 90,000 tonnes or 18 GWh of LIB feed annually). The Rochester Hub is expected to have output capacity of battery grade materials of approximately 42,000 to 48,000 tonnes per annum of nickel sulphate, 7,500 to 8,500 tonnes per annum of lithium carbonate and 6,500 to 7,500 tonnes per annum of cobalt sulphate.

Li-Cycle has engaged Hatch Ltd. as its engineering and procurement contractor for the Rochester Hub. Hatch Ltd. is also providing select construction management services such as onsite field engineering support and overall project scheduling for the project. Li-Cycle has engaged Mastec Inc. as its general contractor for the Rochester Hub. Procurement activities are well-advanced and have commenced on all equipment and select construction materials for the Rochester Hub. Site works and construction commenced on the Rochester Hub site in

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January 2022. The Rochester Hub has made significant progress to date on key engineering, procurement and construction milestones and is expected to initiate commissioning in stages in late calendar 2023.

Li-Cycle has been granted a special use permit for hydrometallurgical facility operations, overall site plan approval, and a special use permit with an area variance for hazardous material storage tanks at the Rochester Hub by the Town of Greece, New York, all subject to certain conditions. Li-Cycle will continue to apply for construction-related building permits from the Town of Greece as plans for specific structures become finalized. Li-Cycle completed the New York State Environmental Quality Review Act process for the Rochester Hub in November 2021. The New York State Department of Environmental Conservation ("NYSDEC") issued a state facility air permit for the expected emissions from the Rochester Hub in March 2022. A general permit for stormwater discharges from construction activity, and a related stormwater pollution prevention plan that meets criteria set forth by the NYSDEC, is also in place for the Rochester Hub. The remaining anticipated regulatory approvals required to complete and operate the Rochester Hub consist of the granting by the NYSDEC of a general permit for stormwater discharges associated with industrial activity, a chemical bulk storage registration and a petroleum bulk storage registration.

Li-Cycle expects that the Rochester Hub will result in a workforce of approximately 270 employees at its operations.

***Leases***

We lease the following properties as of October 31, 2022:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Gross** **Floor Area**<br>**(square foot)** | | **Lease period** | **Lease period** |
| **Country** | **Location** | **Gross** **Floor Area**<br>**(square foot)** | **Use** | **Start** | **End** |
| Canada | Kingston, Ontario | &nbsp;&nbsp;10193 | Plant | &nbsp;&nbsp;4/1/2020 | &nbsp;&nbsp;3/31/2025 |
| Canada | Kingston, Ontario | &nbsp;&nbsp;8580 | Storage | &nbsp;&nbsp;12/1/2021 | &nbsp;&nbsp;11/30/2023 |
| Canada | Kingston, Ontario | &nbsp;&nbsp;11244 | Storage | &nbsp;&nbsp;11/1/2019 | &nbsp;&nbsp;11/30/2022 |
| Canada | Kingston, Ontario | &nbsp;&nbsp;19300 | Storage | &nbsp;&nbsp;5/1/2020 | &nbsp;&nbsp;11/30/2022 |
| Canada | Kingston, Ontario | &nbsp;&nbsp;7360 | Storage | &nbsp;&nbsp;12/1/2020 | &nbsp;&nbsp;11/30/2022 |
| Canada | Millhaven, Ontario | &nbsp;&nbsp;46639 | Construction of new spokes | &nbsp;&nbsp;7/1/2021 | &nbsp;&nbsp;6/30/2024 |
| Canada | Toronto, Ontario | &nbsp;&nbsp;31762 | Office | &nbsp;&nbsp;6/1/2021 | &nbsp;&nbsp;5/31/2031 |
| United States of America | Cottondale, Alabama | &nbsp;&nbsp;120000 | Storage | &nbsp;&nbsp;11/1/2021 | &nbsp;&nbsp;12/31/2023 |
| United States of America | North Port, Alabama | &nbsp;&nbsp;108469 | Plant | &nbsp;&nbsp;7/1/2022 | &nbsp;&nbsp;6/30/2042 |
| United States of America | Gilbert, Arizona | &nbsp;&nbsp;138949 | Plant | &nbsp;&nbsp;10/1/2021 | &nbsp;&nbsp;2/29/2032 |
| United States of America | Mesa, Arizona | &nbsp;&nbsp;69016 | Storage | &nbsp;&nbsp;9/1/2021 | &nbsp;&nbsp;12/31/2026 |
| United States of America | Greece, New York | &nbsp;&nbsp;63901 | Plant | &nbsp;&nbsp;7/1/2019 | &nbsp;&nbsp;6/30/2029 |
| United States of America | Webster, New York | &nbsp;&nbsp;37231 | Storage | &nbsp;&nbsp;4/1/2020 | &nbsp;&nbsp;3/31/2025 |
| United States of America | Rochester, New York | &nbsp;&nbsp;2309000 | Land | &nbsp;&nbsp;4/1/2022 | &nbsp;&nbsp;3/31/2042 |
| United States of America | Rochester, New York | &nbsp;&nbsp;45590 | Storage | &nbsp;&nbsp;5/1/2022 | &nbsp;&nbsp;4/30/2024 |
| United States of America | Rochester, New York | &nbsp;&nbsp;9130 | Construction Office | &nbsp;&nbsp;2/1/2022 | &nbsp;&nbsp;7/31/2023 |
| Germany | Magdenburg, Germany | &nbsp;&nbsp;546828 | Plant | &nbsp;&nbsp;7/1/2022 | &nbsp;&nbsp;6/30/2032 |
| Norway | Moss, Norway | &nbsp;&nbsp;165936 | Plant | &nbsp;&nbsp;6/1/2023 | &nbsp;&nbsp;5/31/2035 |
| Switzerland | Baar, Switzerland | &nbsp;&nbsp;10226 | Office | &nbsp;&nbsp;6/1/2022 | &nbsp;&nbsp;6/30/2027 |
| Singapore | Battery Road, Singapore | &nbsp;&nbsp;1615 | Office | &nbsp;&nbsp;10/1/2022 | &nbsp;&nbsp;9/30/2025 |

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On January 12, 2023, the Company entered into a sublease agreement (the "Hub Warehouse Agreement") with Pike Conductor DEV 1, LLC (the "Landlord") outlining the parties' respective rights and obligations with respect to the construction, financing and leasing of a warehouse and administrative building (the "Building") for the Rochester Hub on leased property of the Landlord (the "Property"). As outlined in the Hub Warehouse Agreement, the Company will directly advance up to a maximum of $58.6 million to the Landlord for the design, engineering and construction of the Building, and as at October 31, 2022, the Company had advanced $27.0 million of the $58.6

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million maximum. Upon the successful closing of the Landlord's financing transaction, the Landlord will reimburse the Company for a portion of its advances, such that the Company will have made a net investment of $14.5 million for leasehold improvements. Once construction of the Building is complete, the Landlord will lease the Building and Property (together, the "Premises") to the Company. The term of the Premises lease will be the earlier of the issuance of a certificate of occupancy for the Building or September 1, 2023 and (subject to renewal) may extend for up to 48 years. In the event that the Landlord does not complete its financing transaction by July 1, 2023, the Hub Warehouse Agreement will be amended and restated as a ground lease agreement for the Property.

***Owned Property***

We had no owned properties as of October 31, 2022.

**ITEM 4A. UNRESOLVED STAFF COMMENTS**

Not applicable.

**ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS**

The information called for by this Item is set forth in Exhibit 99.2 of this annual report and is incorporated by reference into this annual report.

**ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES**

**A. &nbsp;&nbsp;&nbsp;&nbsp;Directors and Senior Management**

The following table sets forth our current directors and executive officers:

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| | | |
|:---|:---|:---|
| **Directors and Executive Officers** | **Age** | **Position/Title** |
| Ajay Kochhar | 31 | Director and President and CEO |
| Tim Johnston | 37 | Director and Executive Chair |
| Mark Wellings | 59 | Director |
| Rick Findlay | 65 | Director |
| Anthony Tse | 52 | Director |
| Alan Levande | 66 | Director |
| Scott Prochazka | 56 | Director |
| Kunal Sinha | 42 | Director |
| Jacqueline Dedo ……………………………… | 61 | Director |
| Debbie Simpson | 56 | Chief Financial Officer |
| Chris Biederman | 37 | Chief Technology Officer |
| Carl DeLuca | 55 | General Counsel and Corporate Secretary |
| Christine Barwell | 57 | Chief Human Resources Officer |
| Richard Storrie | 56 | Regional President, Americas |
| Dawei Li | 40 | Regional President, APAC |

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The business address for each of the Company's directors and executive officers is 207 Queen's Quay West, Suite 590, Toronto, ON, M5J 1A7, Canada.

Biographical information concerning our directors and executive officers listed above is set forth below.

**Ajay Kochhar** 

Ajay Kochhar has served as our President and CEO, Co-Founder, and a director since the consummation of the Business Combination on August 10, 2021. Before founding Li-Cycle, Mr. Kochhar gained extensive technology and project development experience through progressive roles with Hatch's industrial cleantech and advisory practices. While working in that space, he garnered in-depth engineering and project management experience through clean technology development in the lithium, cobalt, nickel, copper, gold, lead, zinc, molybdenum, and rare earth metals industries. His technical expertise spans the entire project lifecycle, from conceptual and pre-feasibility

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study to construction and commissioning. Mr. Kochhar is a graduate of the University of Toronto and holds a Bachelor of Applied Science (BASc) in Chemical Engineering.

**Tim Johnston** 

Tim Johnston has served as our Co-Founder and Executive Chair since the consummation of the Business Combination on August 10, 2021. With more than 15 years of experience, Mr. Johnston has overseen the development and operation of batteries, metals, industrial minerals and large infrastructure assets. In addition to co-founding Li-Cycle, Mr. Johnston served as a director and the chief executive officer of Desert Lion Energy Inc. ("Desert Lion"), a lithium exploration and development company whose securities were listed on the TSX Venture Exchange (the "TSX-V"), from February 2018 to July 2019, when Desert Lion was sold to a third party. In mid-2019, the TSX-V initiated a review of the Desert Lion senior management team, including Mr. Johnston, to assess their suitability to act as directors or officers of a listed issuer as a result of certain incorrect statements and omissions made by Desert Lion in its press releases for a financing transaction and its listing application with the TSX-V for approval of the issuance of shares in connection with such transaction. On May 11, 2020, the TSX-V made a procedural determination that requires Mr. Johnston to make a written application to and obtain the prior written acceptance from the Compliance & Disclosure Department of the TSX-V for any proposed involvement by Mr. Johnston as a director or officer of (or to perform similar functions for) any TSX-V-listed issuer. The TSX-V has subsequently publicly stated that it has not reached any conclusions regarding the suitability of Mr. Johnston to be a director or officer of a TSX-V listed company in the future. Prior to Desert Lion, Mr. Johnston worked as a Senior Consultant for Hatch, specializing in project management and transactional analysis for their global lithium business. While there, Mr. Johnston managed the development of projects across the lithium-ion battery value chain for companies such as SQM, Rockwood Lithium (Albemarle), Bacanora Minerals, AMG-NV, Rio Tinto, Galaxy Resources, and other key developers. Mr. Johnston is also the Co-Founder and Director of Li-Metal Corp. (LIM:CN), a Director of Lacero Solutions Inc., an Investment Committee Member of Blue Horizon Capital and an Advisory Board Member of 5E Advanced Materials in Australia. A graduate of the University of Queensland's Mechanical Engineering Program, Mr. Johnston is a chartered professional engineer and CFA charter holder.

**Mark Wellings** 

Mark Wellings has served as a director of the Company since the consummation of the Business Combination on August 10, 2021. Mr. Wellings is a finance professional with over 30 years international experience in both the mining industry and mining finance sector. Mr. Wellings initially worked in the mining industry both in Canada and Australia in exploration, development and production capacities. He then joined the investment dealer GMP Securities L.P. where he co-founded the firm's corporate finance mining practice. During over 18 years at GMP Securities L.P., Mr. Wellings was responsible for, and advised on, some of the Canadian mining industry's largest transactions, both in equity financing and mergers and acquisitions. Since then, he has been appointed to several public and private boards and is also the Co-Chairman of Lithium Royalties Corp., the Chairman of Adventus Mining Corp., the Chairman of Superior Gold Inc. and a director of Li-Metal Corp. Mr. Wellings is a Professional Engineer and holds a Master of Business Administration degree and a Bachelor of Applied Science degree in Geological Engineering.

**Rick Findlay** 

Rick Findlay has served as a director of the Company since the consummation of the Business Combination on August 10, 2021. Mr. Findlay has been consulting in the environment and recycling sectors for over 25 years across Canada and internationally. This has included strategy, organization design, processing design, technology development, and financial management. From 2012 to 2014 he was Director of Oversight and Operations for the Province of Ontario's waste diversion programs, including batteries. Mr. Findlay is currently chief executive officer of LINC it, a firm that focuses on scaling up clean technology ventures. He has previously started a few other firms, two being in environmental management and medical technology. He also co-founded and built an international consulting firm, PSTG Consulting, advising small to global companies across a variety of sectors, and local to national governments. Mr. Findlay is a Certified Management Consultant, with a Bachelor in Industrial Engineering and a Master of Business Administration.

**Anthony Tse** 

Anthony Tse has served as a director of the Company since the consummation of the Business Combination on August 10, 2021. Mr. Tse has over 28 years of private and public corporate experience in numerous high-growth industries spanning the TMT sector, natural resources and specialty chemicals, and most recently the energy transition sectors covering the EV and LIB value chain. His roles have been predominantly in senior management, with a focus on strategy and development, M&A and corporate finance internationally – he has managed businesses and operations across four continents spanning the Greater China and Asia region, Australia, North and South America.

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He is the former Managing Director and Chief Executive Officer of Galaxy Resources, where he served on the board for 11 years - the company merged with Orocobre in 2021 to create Allkem and become one of the Top 5 lithium producers globally. He is now currently a Board Director of Li-Metal (CSE: LIM), a developer of lithium metal and lithium metal anode technologies for next generation lithium solid-state batteries, and also a Senior Advisor to Sicona Battery Technologies, a leading developer of silicon-composite materials for next generation lithium battery anode technologies.

Aside from his industry roles, Mr. Tse is also an Operating Partner with the Global Private Equity Group of Franklin Templeton (NYSE: BEN), a global asset management organization, and a Senior Advisor to EMR Capital (a global natural resources investment group) portfolio of companies, with whom he is focused on upstream through to mid- and downstream investments in the energy transition sector.

**Alan Levande** 

Alan Levande has served as a director of the Company since the consummation of the Business Combination on August 10, 2021. Mr. Levande was Peridot's Chairman and Chief Executive Officer since August 2020. Mr. Levande also served as Vice Chairman of Peridot Acquisition Corp. II. Mr. Levande is a career energy executive with broad experience across the power, utilities, renewables, midstream and upstream value chains. Most recently, Mr. Levande was Co-Chief Executive Officer of Covey Park Energy LLC, a natural gas company that was acquired for $2.2 billion in 2019 by a public company, from June 2013 to July 2019. Previously, Mr. Levande was a Co-Founder and Senior Managing Director at Tenaska Capital Management LLC, a $4 billion private equity manager focused on investments in the power and energy sectors, from 2003 to 2012. Mr. Levande began his career in energy investment banking, where he spent 20 years with Goldman Sachs and Salomon Brothers covering power, utilities, renewables and natural resources. In all of Mr. Levande's prior roles, Mr. Levande was actively involved in sourcing and executing large-scale, complex mergers and acquisitions. Mr. Levande received his B.S. and M.B.A. from The Wharton School of The University of Pennsylvania.

Mr. Levande was appointed to the Company's Board of Directors pursuant to the Investor Agreement. See "Item 10C. Material Contracts—Investor Agreement" for additional information.

**Scott Prochazka** 

Scott Prochazka has served as a director of the Company since the consummation of the Business Combination on August 10, 2021. Mr. Prochazka most recently served as the President and Chief Executive Officer and a director of CenterPoint Energy, an NYSE-listed, Fortune 500 energy delivery company with electric transmission and distribution, power generation and natural gas distribution operations ("CenterPoint") from January 1, 2014 to February 20, 2020. Prior to that role, Mr. Prochazka held several positions at CenterPoint since 2011, including Executive Vice President, Chief Operating Officer and Senior Vice President and Division President, Electric Operations. Mr. Prochazka was a director of Peridot Acquisition Corp. II. Mr. Prochazka received his B.S. in Chemical Engineering from the University of Texas in Austin.

Mr. Prochazka was appointed to the Company's Board of Directors pursuant to the Investor Agreement. See "Item 10C. Material Contracts—Investor Agreement" for additional information.

**Kunal Sinha** 

Kunal Sinha has served as director of the Company since June 1, 2022. Mr. Sinha has been with Glencore since 2012 and currently serves as Glencore's Head of Recycling. Prior to his current role, Mr. Sinha was the CEO of Glencore's North American Sulfuric Acid business. Prior to joining Glencore, he worked for six years in Management Consulting at ZS Associates. Mr. Sinha holds an MBA from the London Business School, an M.S. in Systems and Entrepreneurial Engineering from the University of Illinois at Urbana-Champaign, and a B.Tech. in Mechanical Engineering from the Indian Institute of Technology (IIT), Kharagpur.

&nbsp;&nbsp;&nbsp;&nbsp;Mr. Sinha was appointed to the Company's Board of Directors pursuant to the Glencore Note Purchase Agreement. See "Item 10C. Material Contracts—Glencore Note Purchase Agreement" for additional information.

**Jacqueline Dedo**

Jacqueline Dedo has more than 40 years of experience across a variety of functions and verticals in the automotive industry, with a focus on strategy development and creating customer value. She is co-founder of Aware Mobility, LLC. She previously served as Chief Strategy and Supply Chain Officer for Dana Holding Corp. (NYSE: DAN). Ms. Dedo has also held various leadership positions at Piston Group, The Timken Company (NYSE: TKR), Motorola (NYSE:MSI), and Robert Bosch Corporation. Ms. Dedo also has two decades of board membership experience. She currently sits on the Board of Directors of Cadillac Products Automotive Company, a private, internationally-recognized leader in the plastics converting industry, and the Workhorse Group Inc. (Nasdaq: WKHS), an OEM for commercial electric delivery vehicles and delivery drones. Ms. Dedo earned her Bachelor of Science degree in electrical engineering from Kettering University in Flint, Michigan, has been involved in

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numerous charitable organizations, and has been honored on multiple occasions by Automotive News as one of the "Top 100 Leading Women in the Automotive Industry."

**Debbie Simpson** 

Debbie Simpson has served as our Chief Financial Officer since February 1, 2022. With more than 30 years of finance and public company experience, Ms. Simpson is an accomplished senior executive with experience in financial and strategic leadership, capital funding, and mergers and acquisitions. Prior to joining Li-Cycle, Ms. Simpson served as Chief Financial Officer of Maple Leaf Foods Inc., a carbon neutral, sustainable, protein company with revenues of approximately $4 billion and over 13,000 employees. Before that, she was Vice President and Treasurer of Vincor International Inc., a leading global producer and distributor of wines, with operations across several countries. Before moving to Canada in 2000, Ms. Simpson lived and worked in Scotland. She began her career with Ernst & Young and obtained her professional accounting designation from the Institute of Chartered Accountants of Scotland. Ms. Simpson holds a Bachelor of Arts (Honours) degree in Accountancy and a Master of Science in Accountancy and Finance from the University of Stirling, Scotland. She is a passionate advocate for advancing women, with a focus on women's health and education, and volunteers her time as the Board Chair of Women's College Hospital Foundation and the Board Chair of Havergal College.

**Chris Biederman** 

Chris Biederman has served as our Chief Technical Officer of the Company since the consummation of the Business Combination on August 10, 2021. Mr. Biederman joined Li-Cycle in 2020 as the Chief Process Engineer before being promoted to Chief Technical Officer. Mr. Biederman is a professional engineer with 15 years of process engineering experience. Mr. Biederman brings extensive expertise to his current role, having acted as Lead Process Engineer for numerous large and small EPCM projects in the mining industry. He has experience working on greenfield and brownfield projects and overseeing bench-scale and pilot-scale testing. Mr. Biederman is also a skilled project manager with a robust history leading multi- disciplinary engineering teams and delivering successful projects. Previous to his role with Li-Cycle, he spent time at Hatch as a Senior Engineer and Technology Commercialization Portfolio Manager; he is also the Founder and Managing Director of Biederman Engineering. Mr. Biederman is a graduate of the University of Waterloo's Chemical Engineering program and is a registered engineer with the Professional Engineers of Ontario.

**Carl DeLuca** 

Carl DeLuca has served as General Counsel and Corporate Secretary of the Company since the consummation of the Business Combination on August 10, 2021. Mr. DeLuca joined Li-Cycle in 2021. Mr. DeLuca brings over 25 years of legal and public company experience to the Company, with a track record of successfully executing business-critical transactions and leading organizational change. Prior to joining Li-Cycle, Mr. DeLuca served as General Counsel and Corporate Secretary for Detour Gold Corporation, a TSX-listed gold producer. Previously, Mr. DeLuca held various roles at Vale S.A.'s global base metal business, including Head of Legal for North American & U.K. Operations. His experience at Vale included advising on international M&A and joint ventures, capital projects, and commercial transactions. Mr. DeLuca started his career in private practice, in Toronto and New York. Mr. DeLuca holds his LL.B. from the University of Windsor, an H.B.A. from the Ivey School of Business at Western University, and a B.A. from Huron University College.

**Christine Barwell**

Christine Barwell was appointed Chief Human Resources Officer of the Company on January 1, 2023. She brings over 25 years of experience across a variety of industries as a global people operations leader and has been a change agent for complex corporate challenges balancing the people strategy in partnership with business opportunities. Prior to joining Li-Cycle, Ms. Barwell was the Vice President, Human Resources for Alamos Gold. Ms. Barwell holds her MBA in digital transformation from McMaster University. She also holds a CHRL designation.

**Richard Storrie** 

Richard Storrie has served as Regional President, Americas of the Company since January 24, 2022. In this role, Richard is responsible for overseeing Li-Cycle's operations, commercial activities, and execution of its growth strategy in the Americas region. With more than 26 years of operational, technical, and strategic development experience in the metals and mining industry, Richard possesses a deep understanding of the battery metals supply chain. Prior to joining Li-Cycle, Richard served as President and Chief Operating Officer of the Diavik Diamond Mine, owned by Rio Tinto, one of the world's largest metals and mining corporations. Throughout his nearly 26-year tenure with Rio Tinto, Richard has worked in its top tier open-pit and underground operations in several regions, including Rio Tinto's multi-billion-dollar Oyu Tolgoi copper mine in Mongolia. Richard served as an officer in the British Royal Marine Commandos and acquired an Honours degree in Mining Engineering from Newcastle University in the United Kingdom.

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**Dawei Li** 

Dawei Li has served as Regional President, APAC of the Company since November 1, 2021. Mr. Li brings more than 15 years of experience in strategy development and leading growth in new markets for international companies. Before joining Li-Cycle, Mr. Li served as the Global Business Director for battery-grade lithium carbonate at the Albemarle Corporation, where he developed growth strategy and executed on business development plans and commercial negotiations. Previously, he held roles at Eastman Chemical Company, managing global product lines, leading growth initiatives, and launching efforts to generate demand for existing products while commercializing novel ones. Mr. Li began his career in Shanghai, China working for PricewaterhouseCoopers. Mr. Li holds a BBA in Marketing from Shanghai University of Finance and Economics, and an MBA from the Darden School of Business at the University of Virginia.

**B. &nbsp;&nbsp;&nbsp;&nbsp;Compensation**

**Compensation of Executives** 

***Introduction***

The following section describes the significant elements of the Company's executive compensation program, with particular emphasis on the process for determining compensation payable to the Company's CEO, CFO and the Company's other three most highly compensated executive officers (collectively, the "Named Executive Officers" or "NEOs"). The NEOs are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;Ajay Kochhar, CEO;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;Tim Johnston, Executive Chair;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;Debbie Simpson, CFO;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;Richard Storrie, Regional President, Americas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;Carl DeLuca, General Counsel & Corporate Secretary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;Bruce MacInnis, former CFO.

***Overview and Compensation Committee***

***Compensation Objectives***

The Company's executive compensation program is designed to achieve the following objectives:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;provide market-competitive compensation opportunities in order to attract and retain talented, high-performing and experienced executive officers, whose knowledge, skills and performance are critical to our success;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;motivate these executive officers to achieve our business and financial objectives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;align the interests of our executive officers with those of our shareholders by tying a meaningful portion of compensation directly to the long-term value and growth of our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;reward our executive officers for their performance and contribution to our short-term and long-term objectives and success;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;continue to foster an entrepreneurial and results-driven culture; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;provide the appropriate balance of short and long-term incentives to encourage appropriate levels of risk-taking and prudent decision-making by the executive team.

***Compensation Governance***

Our Board of Directors has adopted a written charter for the Compensation Committee that establishes the Compensation Committee's purpose and its responsibilities with respect to executive compensation. The charter provides that the Compensation Committee will, among other things, oversee the compensation strategy and policies for the Company's executive officers and directors; establish, review and report on compensation of the Company's executive officers; administer equity-based and certain other compensation plans; and review executive compensation disclosure for inclusion in the Company's public disclosure documents, in accordance with applicable rules and regulations.

Our Compensation Committee currently consists of Rick Findlay (Chair), Jacqueline Dedo, Scott Prochazka and Mark Wellings, each of whom is considered by the Board of Directors to be independent.

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***Compensation Components***

In furtherance of the above-stated compensation objectives, the Company's executive compensation plan includes a mix of base salary, short-term incentives and long-term equity incentives.

<u>Base Salary</u> 

We seek to maintain base salary amounts consistent with industry norms. Base salaries for NEOs are established based on the scope of their responsibilities, competencies and prior relevant experience, taking into account compensation paid in the market for similar positions, the market demand for such NEOs and the NEO's total compensation package. Base salaries are reviewed annually and increased for merit reasons, based on the executive's success in meeting or exceeding individual objectives. Additionally, base salaries may be adjusted as warranted throughout the year to reflect promotions or other changes in the scope of breadth of an executive's role or responsibilities, as well as to maintain market competitiveness.

<u>Short-Term Incentives</u> 

The Company's compensation program for NEOs and other executive officers includes eligibility for annual cash bonuses. Annual bonuses are designed to motivate our executive officers to meet our business and financial objectives generally and our annual financial performance targets in particular.

For the year ended October 31, 2022, the NEOs were eligible to earn an annual bonus based on a target percentage of base salary. For the CEO and Executive Chair, the target annual bonus was 120% of base salary; for the CFO, the target annual bonus was 100% of base salary; and for the other NEOs the target annual bonus was 70% of base salary. For the CEO, the Executive Chair and the CFO, the annual bonus awards were based entirely on the achievement of corporate-level objectives. For the other NEOs, 80% of the annual bonus was based on the achievement of corporate-level objectives and 20% of the annual bonus was based upon the achievement, by the NEO, of individual goals and objectives. The Company's key corporate-level objectives for the year ended October 31, 2022 were prioritizing safety and sustainability, progressing the execution of the Rochester Hub Project on time and on budget, and expanding production of black mass. In aggregate, the Company's performance on these objectives was assessed at 75% of target.

<u>Long-Term Incentives</u> 

In connection with the Business Combination, the Company adopted the Long-Term Incentive Plan to provide different types of equity-awards to be granted to eligible directors, officers, employees and consultants of the Company and its subsidiaries, including options and RSUs. Equity-based awards are a variable element of compensation that allows the Company to reward its NEOs for their sustained contributions to the Company. Equity awards reward performance and continued employment by an NEO, with associated benefits to the Company of attracting and retaining employees. The Company believes that options and RSUs and other equity-based compensation will provide NEOs with a strong link to long-term corporate performance and the creation of shareholder value.

The Compensation Committee is responsible for administering the Long-Term Incentive Plan. For more information on the material terms and conditions of the Long-Term Incentive Plan, see "Long-Term Incentive Plan", below.

For the year ended October 31, 2022, the NEOs were eligible to earn annual long-term incentive awards based on a target percentage of base salary. The CEO and Executive Chair received long-term incentive awards equal to 175% of their base salary, the CFO received a long-term incentive award based on 125% of base salary and the other NEOs received long-term incentive awards based on 60% of base salary. These awards consisted of 50% RSUs and 50% options, vesting ratably over three years.

***Summary Compensation Table***

The following table shows the compensation earned by, paid to, or awarded to the NEOs in respect of the years ended October 31, 2022 and 2021, respectively.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position(1)** | **Year** | **Salary (2)<br>($)** | **Share<br>Awards (3)<br>($)** | **Option<br>Awards (4)<br>($)** | **Non-Equity<br>Incentive Plan<br>Compensation (5)<br>($)** | **Pension<br>Value<br>($)** | **All Other<br>Compensation (6)<br>($)** | **Total<br>Compensation<br>($)** |
| **Ajay Kochhar**<br>*CEO* | 2022 | 487397 | 437500 | 437500 | 438658 |  | 53805 | 1854860 |
|  | 2021 | 286850 | 1181500 | 1181500 | 200055 |  | 12092 | 2861997 |
| **Tim Johnston**<br>*Executive Chair* | 2022 | 487397 | 437500 | 437500 | 438658 |  | 37815 | 1838870 |
|  | 2021 | 286850 | 1181500 | 1181500 | 200055 |  | 713 | 2850618 |
| **Debbie Simpson (7)**<br>*CFO* | 2022 | 442466 | 3276541 | 276541 | 357070 | —  | 43341  | 4395959 |
| **Bruce MacInnis (8)**<br>*Former CFO* | 2022 | 81900 |  |  |  |  | 4410 | 86310 |
|  | 2021 | 220916 |  | 2077000 |  |  | 445286 | 2743202 |
| **Richard Storrie (9)**<br>*Regional President, Americas* | 2022 | 365685 | 859706 | 859706 | 196080 |  | 68053 | 2349230 |
| **Carl DeLuca (10)**<br>*General Counsel & Corporate Secretary* | 2022 | 412192 | 135000 | 135000 | 234867 |  | 23626 | 940685 |

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Notes:

(1)In the above table, all compensation is disclosed in U.S. dollars. A portion of the Salary and/or All Other Compensation for each NEO was paid in Canadian dollars. Those Canadian dollar amounts have been converted to U.S. dollars using the Bank of Canada's average exchange rate for (a) the twelve-month period ended October 31, 2022 of CA$1.00=US$0.7773, and (b) the twelve-month period ended October 31, 2021 of CA$1.00=US$0.7955.

(2)Represents the actual base salary earned in the year ended October 31, 2022. As at October 31, 2022, the annual base salary of each of our NEOs was as follows: $500,000 for Mr. Kochhar, $500,000 for Mr. Johnston, $500,000 for Ms. Simpson, $475,000 for Mr. Storrie and $450,000 for Mr. DeLuca.

(3)Represents the grant date fair value of RSUs granted under our Long-Term Incentive Plan.

(4)The grant date fair value of options awarded was calculated using the Black-Scholes Merton option pricing model, a common and widely-accepted valuation methodology. For the key assumptions used to determine the stock option value for grants during the year ended October 31, 2022 using the Black-Scholes Merton option pricing model, see Note 13 in our financial statements for the year ended October 31, 2022.

(5)See "Short-Term Incentives", above.

(6)Represents the value of employer's contribution to employee's defined contribution retirement savings plan. standard employee benefits coverage (such as health insurance and life insurance), and other taxable benefits (including electric vehicle allowance, on-site parking and executive medical coverage). The Company generally contributes 6% of each NEO's base salary into a defined contribution registered retirement savings plan, subject to statutory maximums. Mr. Storrie's other compensation includes relocation benefits.

(7)Ms. Simpson joined the Company on December 13, 2021, during the financial year ended October 31, 2022, and was appointed CFO effective February 1, 2022. She received an on-hire equity award of $3,000,000 payable in RSUs. She also received a FY 2022 LTIP award, pro rated to reflect her service during the fiscal year, consisting of $276,541 in RSUs and $276,541 in options.

(8)Mr. MacInnis was CFO until his retirement on January 31, 2022. As described below under "Employment Arrangements, Termination and Change in Control Benefits—Bruce MacInnis", the Company and Mr. MacInnis entered into a Retirement Agreement dated July 7, 2021. The Company and Mr. MacInnis subsequently mutually agreed that Mr. MacInnis' retirement date would be January 31, 2022, and the Company agreed to accelerate and settle certain payments to Mr. MacInnis under the terms of the Retirement Agreement in an aggregate amount of $444,647. These payments were made to Mr. MacInnis in August 2021.

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(9)Mr. Storrie joined the Company on January 24, 2022. He received an on-hire cash award of $50,000. He also received an on-hire equity award, consisting of $750,000 in RSUs and $750,000 options. He also received a FY 2022 LTIP award, pro rated to reflect his service during the fiscal year, consisting of $109,706 in RSUs and $109,706 in options.

(10)Mr. DeLuca was joined the Company on March 1, 2021 and became an NEO during the financial year ended October 31, 2022.

<u>Long-Term Incentive Plan</u> 

The purpose of the Long-Term Incentive Plan is to promote the success and enhance the value of the Company and its subsidiaries by linking the individual interests of the members of the board of directors, employees, and consultants to those of our shareholders and other stakeholders and by providing such individuals with an incentive for outstanding performance to generate superior returns to our shareholders. The Long-Term Incentive Plan also provides flexibility to the Company in its ability to motivate, attract, and retain the services of members of the board of directors, employees, and consultants upon whose judgment, interest, and special effort the successful conduct of the Company's operation will be largely dependent. Set forth below is a summary of the material terms of the Long-Term Incentive Plan.

<u>Eligibility and Administration</u> 

The Company's employees, consultants and directors, and employees, consultants and directors of its subsidiaries are eligible to receive awards under the Long-Term Incentive Plan. The Long-Term Incentive Plan is administered by the Board with respect to awards to non-employee directors and by the Compensation Committee with respect to other participants, each of which may delegate its duties and responsibilities to committees of the Board of Directors and/or officers (referred to collectively as the "plan administrator" below), subject to certain limitations that may be imposed under Section 16 of the Exchange Act, and/or stock exchange rules, as applicable. The plan administrator has the authority to interpret and adopt rules for the administration of the Long-Term Incentive Plan, subject to its express terms and conditions. The plan administrator can also set the terms and conditions of all awards under the Long-Term Incentive Plan, including any vesting and vesting acceleration conditions.

<u>Limitation on Awards and Shares Available</u> 

The Long-Term Incentive Plan provided that the maximum number of common shares initially available for issuance under the Long-Term Incentive Plan was 14,799,519. The number of common shares available for issuance under the Long-Term Incentive Plan will be automatically increased on the first day of each calendar year beginning on January 1, 2022 and ending on and including January 1, 2031, in an amount equal to the lesser of (i) 5% of the outstanding Shares on the last day of the immediately preceding fiscal year and (ii) such number of common shares determined by the Board. Accordingly, the current maximum number of common shares available under the Long-Term Incentive Plan is 31,756,328. Any common shares distributed pursuant to an award may consist, in whole or in part, of authorized and unissued common shares, treasury shares or shares purchased on the open market. Notwithstanding the foregoing, the aggregate number of common shares which may be issued or transferred pursuant to awards under the Long-Term Incentive Plan in the form of incentive stock options ("ISOs") is 14,799,519.

<u>Awards</u> 

The Long-Term Incentive Plan provides for the grant of share options, including ISOs and non-qualified share options ("NSOs"), Share Appreciation Rights ("SARs"), restricted shares, restricted share units ("RSUs"), dividend equivalents, share payments, other incentive awards, and cash awards. All awards under the Long-Term Incentive Plan will be set forth in award agreements, which will detail all terms and conditions of the awards, including any applicable vesting and payment terms and post-termination exercise limitations. Awards, other than cash awards, generally will be settled in Shares but the plan administrator may provide for cash settlement of any award (other than share options). A brief description of each award type follows.

<u>Share Options</u> 

Share options will provide for the purchase of Shares in the future at an exercise price set on the grant date. The exercise price per Share subject to each option will be set by the plan administrator, but will, except with respect to certain substitute options granted in connection with a corporate transaction, not be less than 100% of the Fair Market Value (as defined in the Long-Term Incentive Plan) of a Share on the date the option is granted. The term of a share option may not be longer than ten years (or five years in the case of ISOs granted to certain significant shareholders).

<u>Restricted Shares and RSUs</u> 

Restricted shares are an award of non-transferable Shares that remain forfeitable unless and until specified conditions are met, and which may be subject to a purchase price. RSUs are contractual promises to deliver Shares in the future, which may also remain forfeitable unless and until specified conditions are met.

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<u>Dividend Equivalents</u> 

Dividend equivalents represent the right to receive the equivalent value of dividends paid on Shares and may be granted alone or in tandem with awards other than share options or SARs. Dividend equivalents are credited as of dividend payment dates during the period between the date an award is granted and the date such award vests, is exercised, is distributed or expires, as determined by the plan administrator.

<u>Vesting</u> 

Vesting conditions determined by the plan administrator may apply to each award and may include continued service, performance and/or other conditions.

<u>Certain Transactions</u> 

The plan administrator has broad discretion to take action under the Long-Term Incentive Plan, as well as make adjustments to the terms and conditions of existing and future awards, to prevent the dilution or enlargement of intended benefits and facilitate necessary or desirable changes in the event of certain transactions and events affecting the Shares, such as share dividends, share splits, mergers, amalgamations, arrangements, acquisitions, consolidations and other corporate transactions. In addition, in the event of certain non-reciprocal transactions with shareholders known as "equity restructurings," the plan administrator will make equitable adjustments to the Long-Term Incentive Plan and outstanding awards.

In the event of a Change in Control (as defined in the Long-Term Incentive Plan), unless the plan administrator elects to (i) terminate an award in exchange for cash, rights or property, or (ii) cause an award to become fully exercisable and no longer subject to any forfeiture restrictions prior to the consummation of a Change in Control, such award will continue in effect or be assumed or an equivalent award substituted by the successor corporation or a parent or subsidiary of the successor corporation. In the event an award continues in effect or is assumed or an equivalent award substituted, and a holder incurs a termination of service without "cause" (as such term is defined in the sole discretion of the plan administrator, or as set forth in the award agreement relating to such award) upon or within 12 months following a Change in Control, then such holder will be fully vested in such continued, assumed or substituted award.

<u>Non-U.S. Participants, Claw-Back Provisions and Transferability</u> 

The Long-Term Incentive Plan provides that the plan administrator may modify award terms, establish subplans and/or adjust other terms and conditions of awards, subject to the share limits described above, in order to facilitate grants of awards subject to the laws and/or stock exchange rules of countries outside of the United States. All awards will be subject to the provisions of any clawback policy implemented by the Company to the extent set forth in such clawback policy and/or in the applicable award agreement. With limited exceptions for estate planning, domestic relations orders, certain beneficiary designations and the laws of descent and distribution, awards under the Long-Term Incentive Plan are generally non-transferable, and are exercisable only by the participant.

<u>Plan Amendment and Termination</u> 

The Long-Term Incentive Plan provides that the Board may amend or terminate the Long-Term Incentive Plan at any time, provided that no amendment, suspension or termination of the Long-Term Incentive Plan will, without the consent of the holder, materially and adversely affect any rights or obligations under any award, unless the award itself otherwise expressly so provides, and provided further that the board of directors may not take any of the following actions without approval of shareholders given within 12 months before or after such action: (i) increase the limit on the maximum number of Shares which may be issued under the Long-Term Incentive Plan, (ii) reduce the price per Share of any outstanding option or SAR granted under the Long-Term Incentive Plan, or (iii) cancel any option or SAR in exchange for cash or another award when the option or SAR price per share exceeds the fair market value of the underlying Shares.

The Long-Term Incentive Plan provides that in no event may any award be granted under the Long-Term Incentive Plan after the tenth anniversary of the earlier of (i) the date on which the Long-Term Incentive Plan is adopted by the board or (ii) the date the Long-Term Incentive Plan is approved by shareholders.

**Compensation of Directors** 

The Charter of the Compensation Committee provides that the Compensation Committee will periodically evaluate and make recommendations to the Board with respect to appropriate forms and amounts of compensation for directors of the Company. In doing so, the Compensation Committee will consider: (i) the time commitment associated with being a director of the Company, including, as applicable, committee (and committee chair) work and Board chair (or lead director) work; (ii) the responsibilities and risks associated with being such a director, (iii) compensation paid to directors of companies and their subsidiaries similar to the Company, and (iv) any other factors the Compensation Committee deems relevant.

Following the Company's annual meeting of shareholders, and effective May 1, 2022, the Board approved the following amounts for non-employee director compensation.

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| | | |
|:---|:---|:---|
| **Compensation Element** | **RSU<br>Award<br>Value**  | **Cash<br>Value**  |
| Standard Retainer | Standard Retainer | Standard Retainer |
| Director | &nbsp;&nbsp;$140000 | &nbsp;&nbsp;$55000 |
| Additional Retainers |  |  |
| Lead Director | &nbsp;&nbsp;— | &nbsp;&nbsp;$5000 |
| Audit Committee Chair | &nbsp;&nbsp;— | &nbsp;&nbsp;$20000 |
| Compensation Committee Chair | &nbsp;&nbsp;— | &nbsp;&nbsp;$15000 |
| Other Committee Chair | &nbsp;&nbsp;— | &nbsp;&nbsp;$10000 |

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These amounts reflect market adjustments from the prior year, as recommended by the Compensation Committee and approved by the Board. In particular, the annual RSU award value was increased from $100,000 to $140,000 and the cash value of the standard annual retainer was increased from $50,000 to $55,000. While the Lead Director's annual retainer remained unchanged at $25,000, the Audit Committee Chair's retainer was increased from $15,000 to $20,000, and the Compensation Committee Chair's retainer was increased from $10,000 to $15,000. The Company also eliminated the "on-boarding" equity award for new non-employee directors.

***Director Compensation Table***

The following table shows the compensation earned by each of our non-employee Directors during the year ended October 31, 2022. Neither Mr. Kochhar, the CEO of the Company, nor Mr. Johnston, the Executive Chair of the Company, is included in the table as neither receives any additional compensation for his service as a director.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Director** | **Fees Earned<br>or Paid in<br>Cash<br>($)**  | **Stock<br>Awards**<sup>(1)</sup>**<br>($)**  | **Option<br>Awards**  | **Non-Equity<br>Incentive Plan<br>Compensation**  | **Pension<br>Value**  | **All Other<br>Compensation<br>($)**  | **Total <br>($)**  |
| Jacqueline Dedo | 12554 | 102021 |  |  |  |  | 114575 |
| Rick Findlay | 65000 | 140000 |  |  |  |  | 205000 |
| Alan Levande | 52500 | 140000 |  |  |  |  | 192500 |
| Scott Prochazka | 70000 | 140000 |  |  |  |  | 210000 |
| Kunal Sinha | 22867 | 128492 |  |  |  |  | 151359 |
| Anthony Tse | 54701 | 140000 |  |  |  | &nbsp;&nbsp;14100<sup>(2)</sup> | 208801 |
| Mark Wellings | 87500 | 140000 |  |  |  |  | 227500 |

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Notes:

(1)&nbsp;&nbsp;&nbsp;&nbsp;Following the Company's annual meeting on April 28, 2022, each non-employee director elected at the annual meeting received an RSU award having a value of $140,000 for service during the year. Each non-employee director appointed thereafter received a similar award, pro rated for the period from the date of their appointment to the next annual meeting. The number of RSUs was determined based on the closing price of the Company's common shares on the NYSE on the date of grant. Each of the annual RSU awards vests on April 28, 2023, subject to the participant's continued service on the Board. The awards granted on April 28, 2022 were based on a closing price of $6.75 per common share, the awards granted to Mr. Sinha on June 7, 2022 were based on a closing price of $7.11 per common share, and the awards granted to Ms. Dedo on September 13, 2022 were based on a closing price of $7.11 per common share.

(2)&nbsp;&nbsp;&nbsp;&nbsp;This amount represents aggregate fees paid to Anthony Tse in the year ended October 31, 2022 under the terms of a consulting agreement dated July 19, 2019 between Li-Cycle Corp. and Mr. Tse, pursuant to which Mr. Tse provided consulting services to Li-Cycle Corp. in relation to the proposed expansion of its operations in Asia. The agreement has since been terminated. See "Item 7B. Related Party Transactions".

Each member of our Board of Directors is entitled to reimbursement for reasonable travel and other expenses incurred when attending Board or Committee meetings or otherwise in connection with their director position.

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 ***Employment Arrangements, Termination and Change in Control Benefits***

The following summarizes the employment arrangements, termination and change in control benefits for certain of our executive officers in the year ended October 31, 2022 unless as otherwise indicated.

*Ajay Kochhar, Tim Johnston, Debbie Simpson, Richard Storrie and Carl DeLuca*

Li-Cycle has adopted a standard form of executive employment agreement for use with its executive officers. This form of agreement was entered into with Richard Storrie on October 28, 2021, Debbie Simpson on December 6, 2021, and with each of Ajay Kochhar, Tim Johnston and Carl DeLuca on March 1, 2022 (collectively, the "Employment Agreements"). The Employment Agreements provide for certain payments to the NEO in connection with the termination of the NEO's employment in various circumstances, as described below.

In the case of Li-Cycle's termination of the NEO's employment without cause, or in the case of the NEO's termination of his or her employment for good reason (as defined in the Employment Agreements), in either case within twelve months following a change in control (as defined in the Employment Agreements), the NEO is entitled to accrued and unpaid base salary, accrued vacation pay, and reimbursement for business expenses properly incurred; a lump-sum payment in lieu of notice in the amount of eighteen months' base salary (or twenty-four months' base salary for the CEO and Executive Chair) plus the amount of the NEO's annual bonus target in respect of the fiscal year in which the termination occurs, pro-rated to eighteen months (or twenty-four months for the CEO and Executive Chair); matching contributions to the NEO's registered retirement savings plan up to and including the last day of the statutory notice period required pursuant to applicable employment standards legislation; continued participation in Li-Cycle's executive benefit plans and perquisites until the end of the statutory notice period pursuant to applicable employment standards legislation, and after, for a period of eighteen months or until the NEO becomes entitled to participate in similar benefit plans with another employer, participation in primary coverages (health care, dental care, and employee assistance program); a lump-sum for the NEO's annual bonus award in respect of the fiscal year immediately preceding the termination, to the extent earned and unpaid at the date of the termination, calculated at the annual bonus target for such fiscal year, and annual bonus award in respect of the fiscal year of Li-Cycle in which the termination occurs, pro-rated from the start of such fiscal year to the date of the termination, calculated at the annual bonus target for such fiscal year; post-employment treatment of the NEO's long term incentive plan awards (including without limitation share options and RSUs) determined in accordance with the terms of the Long-Term Incentive Plan and/or any other applicable long term incentive plan(s), the relevant award agreement(s), and the 2021 Executive Severance Policy (as described below); and outplacement career counselling ending on the earliest to occur of twelve months following the termination and the date that the NEO obtains full-time employment.

In the case of Li-Cycle's termination of the NEO's employment without cause, or in the case of the NEO's termination of his or her employment for good reason (as defined in the Employment Agreements), in either case prior to a change in control or more than twelve months after a change in control (as defined in the Employment Agreements), the NEO is entitled to accrued and unpaid base salary, accrued vacation pay, and reimbursement for business expenses properly incurred; payment in equal monthly instalments representing twelve months' base salary (or eighteen months' base salary for the CEO and Executive Chair) plus the amount of the NEO's annual bonus target in respect of the fiscal year in which the termination occurs, pro-rated to twelve months (or eighteen months for the CEO and Executive Chair); matching contributions to the NEO's registered retirement savings plan up to and including last day of the statutory notice period required pursuant to applicable employment standards legislation; continued participation in Li-Cycle's executive benefit plans and perquisites until the end of the statutory notice period pursuant to applicable employment standards legislation, and after, for a period of twelve months or until the NEO becomes entitled to participate in similar benefit plans with another employer, participation in primary coverages (health care, dental care, and employee assistance program); post-employment treatment of the NEO's long term incentive plan awards (including without limitation share options and RSUs) determined in accordance with the terms of the Long-Term Incentive Plan and/or any other applicable long term incentive plan(s), the relevant award agreement(s), and the 2021 Executive Severance Policy (as described below); and outplacement career counselling ending on the earliest to occur of twelve months following the termination and the date that the NEO obtains full-time employment.

If the NEO is terminated for cause, death, mutually agreed retirement or by the executive without good reason, he or she will be entitled to payment of any unpaid base salary, vacation pay and reimbursement for business expenses properly incurred and accrued to the termination date; matching contributions to the NEO's registered retirement savings plan up to and including last day of the statutory notice period required pursuant to applicable employment standards legislation; and post-employment treatment of the NEO's long term incentive plan awards (including without limitation share options and RSUs) determined in accordance with the terms of the Long-Term Incentive Plan and/or any other applicable long term incentive plan(s), the relevant award agreement(s), and the 2021 Executive Severance Policy (as described below).

If the NEO is terminated for permanent disability, he or she will be entitled to a lump-sum payment of any unpaid base salary, vacation pay and reimbursement for business expenses properly incurred and accrued during the applicable elimination period for long-term disability benefits stipulated in Li-Cycle's long-term disability insurance

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plan, less any short-term disability benefit payments provided by Li-Cycle; matching contributions to the NEO's registered retirement savings plan up to and including the end of the applicable elimination period; continued participation in Li-Cycle's executive benefit plans and perquisites up to and including the end of the applicable elimination period; post-employment treatment of the NEO's long term incentive plan awards (including without limitation share options and RSUs) determined in accordance with the terms of the Long-Term Incentive Plan and/or any other applicable long term incentive plan(s), the relevant award agreement(s), and the 2021 Executive Severance Policy (as described below); and if any, minimum statutory entitlements under applicable employment standards legislation.

The 2021 Executive Severance Policy provides that all unvested options and RSUs will be accelerated and exercisable for the remainder of the term in the case of an executive officer's termination (i) without cause or resignation for good reason within 12 months following a change in control, (ii) in the case of death, and (iii) in the case of disability. An executive officer's unvested options and RSUs will continue to vest in the case of mutually agreed retirement. In all other cases of termination, unvested options and RSUs shall be forfeited.

*Bruce MacInnis*

On September 1, 2020, Li-Cycle entered into an employment agreement with Mr. MacInnis setting forth the terms and conditions of his employment as Li-Cycle's Chief Financial Officer, including base salary, annual performance bonus and benefits. On July 7, 2021, Li-Cycle and NewCo entered into a retirement agreement with Mr. MacInnis. On January 31, 2022, Mr. MacInnis retired.

Mr. MacInnis' retirement agreement (the "Retirement Agreement") sets forth certain terms and conditions relating to his retirement from employment with Li-Cycle, which superseded the terms and conditions of his employment agreement that pertained to that subject matter. In the case of Li-Cycle's termination of Mr. MacInnis' employment other than for cause, or in the case of Mr. MacInnis' termination of his employment for good reason (as defined in the employment agreement) following a change of control (as defined in the employment agreement), Mr. MacInnis would have been entitled to accrued but unpaid base salary, vacation pay, expense reimbursements and benefits, an additional fifty-two weeks' base salary and bonus (calculated on the basis of an average of each bonus received by Mr. MacInnis in the three fiscal years preceding the termination date), and, until the earlier of fifty-two weeks from the termination date or the date on which Mr. MacInnis commenced alternative employment or consulting work, continued coverage under Li-Cycle group benefit plans in place and as amended from time to time.

Pursuant to the Retirement Agreement, subject to certain conditions including those set out below, Mr. MacInnis was entitled to (i) salary continuance for a period of 12 months following the retirement date, (ii) a bonus for the fiscal year ended October 31, 2021 calculated and payable in the ordinary course in accordance with his employment agreement and the Company's bonus plan for such year, (iii) a bonus for the period from November 1, 2021 up to and including the retirement date based on his actual bonus achieved in the prior fiscal year, prorated for such period, and (iv) continued participation in the Company's group health and dental plans until the earlier of the date which is 12 months following the retirement date and the date on which he secures alternate coverage through any source other than existing spousal coverage. The terms of the Retirement Agreement would have been null and void in the event that Mr. MacInnis' employment were terminated by the Company for just clause (as defined in the employment agreement) or by way of Mr. MacInnis' voluntary resignation (as defined in the employment agreement) at any time prior to the retirement date.

Following the entering into of the retirement agreement, the Company and Mr. MacInnis mutually agreed that Mr. MacInnis' retirement date would be January 31, 2022, and the Company agreed to accelerate and settle certain retirement payments to Mr. MacInnis in an amount of $446,510.45 (Canadian dollar amounts converted to U.S. dollars using the Bank of Canada's exchange rate on October 29, 2021 of CA$1.00=US$0.8075), which amounts would be repayable to the Company if Mr. MacInnis' employment were terminated by the Company for just cause or by Mr. MacInnis by way of voluntary resignation at any time prior to the retirement date. These payments were made in August 2021. Mr. MacInnis retired as agreed on January 31, 2022.

**C. &nbsp;&nbsp;&nbsp;&nbsp;Board Practices**

***Board of Directors***

Our Articles of Amalgamation provide that the Board will consist of a minimum of one and a maximum of ten directors. The OBCA provides that the board of an offering corporation (as defined in the OBCA, which would include the Company) will consist of not fewer than three individuals. The Board currently consists of nine directors. The directors are elected by our shareholders at each annual general meeting of shareholders, and will hold office for a term expiring at the close of the next annual meeting or until their respective successors are elected or appointed. Between annual general meetings of our shareholders, the directors may appoint one or more additional

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directors, but the number of additional directors may not at any time exceed one-third of the number of current directors who were elected or appointed other than as additional directors.

***Directors' Service Contracts***

There are no arrangements or understandings between us and any of our subsidiaries, on the one hand, and any of our non-employee directors, on the other hand, providing for benefits upon termination of their employment or service as directors of our Company or any of our subsidiaries. Employee directors may be eligible for benefits upon termination of their employment pursuant to their employment agreements.

***Committees of the Board of Directors***

The Company has established an audit committee (the "Audit Committee"), a compensation committee (the "Compensation Committee"), a nominating and governance committee (the "Nominating and Governance Committee") and a health, safety, environment and sustainability committee (the "HSES Committee"). Each committee has a written charter that is posted on our website.

***Audit Committee***

The Audit Committee is comprised of Scott Prochazka (Chair), Rick Findlay and Mark Wellings. Our Board has determined that each of the Audit Committee members is an independent director, as required by applicable SEC, NYSE rules and National Instrument 52-110 — *Audit Committees*. Our Board has also determined that at least one member of the Audit Committee, namely Scott Prochazka, qualifies as the "Audit Committee financial expert," as such term is defined in Item 407 of Regulation S-K and that all members of the Audit Committee are "financially literate," as such term is defined in NI 52-110.

The Board has established a written charter setting forth the purpose, composition, authority and responsibility of the Audit Committee consistent with the rules of the NYSE, the SEC and the applicable Canadian securities laws. The Audit Committee is, among other things, directly responsible for monitoring the integrity of the Company's financial statements, financial reporting process and systems of internal controls and procedures; ensuring compliance by the Company with applicable legal and regulatory requirements, reviewing areas of potential significant financial risk to the Company; evaluating the independent auditor's independence and qualifications; and appointing, determining the compensation of and monitoring the performance of the independent auditors.

***Compensation Committee***

The Compensation Committee is comprised of Rick Findlay (Chair), Jacqueline Dedo, Scott Prochazka and Mark Wellings. The Board has determined that each of the members of the Compensation Committee is an independent director.

The board has established a written charter setting forth the purpose, composition, authority and responsibility of the compensation committee consistent with the rules of the NYSE, the SEC and the guidance of the Canadian Securities Administrators. The Compensation Committee, among other things, oversees the compensation strategy and policies of the Company's executive officers and directors; establishes, reviews and reports on compensation of the Company's executive officers; administers equity-based and certain other compensation plans; and reviews the "Compensation Discussion and Analysis" and related executive compensation disclosure for inclusion in the Company's public disclosure documents.

***Nominating and Governance Committee***

The Nominating and Governance Committee is comprised of Mark Wellings (Chair), Jacqueline Dedo and Scott Prochazka. The Board has determined that each of the members of the Nominating and Governance Committee is an independent director.

The board has established a written charter setting forth the purpose, composition, authority and responsibility of the Nominating and Governance Committee. The Nominating and Governance Committee is, among other things, responsible for identifying and evaluating individuals qualified to become Board members, consistent with criteria approved by the Board, and recommending such individuals to the Board for approval as nominee; leading the performance review of the Board and its committees; and overseeing the establishment of the Company's corporate governance practices and policies.

***Health, Safety, Environment and Sustainability Committee***

The HSES Committee is comprised of Anthony Tse (Chair), Jacqueline Dedo, Rick Findlay and Kunal Sinha. The board has established a written charter setting forth the purpose, composition, authority and responsibility of the HSES Committee. The function and purpose of the HSES Committee is to assist the board in fulfilling its responsibilities with respect to developing and implementing the health, safety, environmental and

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sustainability policies, procedures and programs of the Company and its subsidiaries, and monitoring compliance with such policies.

**D. Employees**

As of October 31, 2022, we had over 405 employees. The majority of our employees are employed on a full-time basis. We have approximately 120 employees at our corporate and engineering offices in Toronto, Ontario. Our other corporate and engineering offices are located in Birmingham, Alabama, Baar, Switzerland and Singapore. Our operational employees are primarily located at our operational Spokes in Ontario, New York, Arizona and Alabama.

As we continue to grow our Spoke & Hub network, we anticipate adding additional employees. We expect that our Rochester Hub will require approximately 270 employment positions once operational.

Our success is highly dependent on our human capital and leadership team. We have talent acquisition strategies in place to attract, retain and develop employees with the skills, experience and potential necessary to implement our growth strategy.

Our culture aims to promote an "owner's mindset" that empowers employees to deliver a high level of performance and to honor our corporate values, including ethics and integrity, courage and passion, and innovation and creativity. When recruiting and onboarding new employees, we communicate our vision and the core values that we expect all staff to uphold, which is underpinned by a business-wide Code of Conduct and Ethics supported by appropriate training programs. We regularly engage with staff on issues affecting the business through group-wide and location-specific "all-hands" and "town hall" sessions and other engagement platforms.

None of our employees are represented by a labor union and there have been no work stoppages to date. We generally consider relations with our employees to be good.

**E. Share Ownership**

The following table sets out the names and positions of the Company's directors and NEOs for the year ended October 31, 2022, and the following information for each such director and NEO as of January 31, 2023, being the number of common shares, options and RSUs of the Company owned or over which control or direction is exercised by each such director and NEO of the Company and, where known after reasonable enquiry, by their respective associates or affiliates.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Number<br>of Shares<br>Owned<br>(#)**  | **Percentage<br>of<br>Total Shares<br>Outstanding<br>(%)(1)**  | **Special<br>Voting<br>Rights**  | **RSUs**  | **Number of<br>Securities<br>Underlying<br>Options**  | **Option<br>Exercise<br>Price<br>($)**  | **Option<br>Expiration<br>Date**  |
| Ajay Kochhar, <br>*Director, President and CEO* (2) | 24930228 | 14.14% |  | 276011 | 159640 | $0.02 | April 11, 2023 |
|  |  |  |  |  | 139685 | $0.37 | July 19, 2024 |
|  |  |  |  |  | 176871 | $10.93 | August 10, 2031 |
|  |  |  |  |  | 92105 | $7.58 | January 31, 2032 |
|  |  |  |  |  | 253028 | $5.77 | January 27, 2033 |
| Tim Johnston, <br>*Director, Executive Chair* (3) | 11394674 | 6.46% |  | 276011 | 159640 | $0.02 | April 11, 2023 |
|  |  |  |  |  | 199550 | $0.37 | July 19, 2024 |
|  |  |  |  |  | 176871 | $10.93 | August 10, 2031 |
|  |  |  |  |  | 92105 | $7.58 | January 31, 2032 |
|  |  |  |  |  | 253028 | $5.77 | January 27, 2033 |
| Debbie Simpson, <br>*CFO* |  |  |  | 541302 | 58219 | $7.58 | January 31, 2032 |
|  |  |  |  |  | 188678 | $5.77 | January 27, 2033 |
| Bruce MacInnis, <br>*Former CFO* | <br>— | \* |  |  | 310928 | $10.93 | August 10, 2031 |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| <br>Richard Storrie, <br>*Regional President, Americas* |  |  | 142853 | 176857 | $7.58 | January 31, 2032 |
|  |  |  |  | 4542 | $7.11 | September 13, 2032 |
|  |  |  |  | 50639 | $5.77 | January 27, 2033 |
| Carl DeLuca, <br>*General Counsel & Corporate Secretary* | 9048 | \* | 97850 | 102470 | $10.93 | August 10, 2031 |
|  |  |  |  | 28421 | $7.58 | January 31, 2032 |
|  |  |  |  | 66256 | $5.77 | January 27, 2033 |
| Mark Wellings <br>*Director* | 244708 | \* | 29889 | 87003 | $0.37 | July 19, 2024 |
| Rick Findlay, <br>*Director* | 688575 | \* | 29889 |  |  |  |
| Anthony Tse, <br>*Director* | 244387 | \* | 29889 |  |  |  |
| Alan Levande, <br>*Director* | 950203 | \* | 29889 |  |  |  |
| Scott,Prochazka,<br>*Director* | 101543 | \* | 29889 |  |  |  |
| Kunal Sinha, <br>*Director* | 0 |  | 18072 |  |  |  |
| Jacqueline Dedo, <br>*Director* | 0 |  | 14349 |  |  |  |

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\*&nbsp;&nbsp;&nbsp;&nbsp;Less than 1 percent

Notes:

(1)&nbsp;&nbsp;&nbsp;&nbsp;The ownership percentage set out in this column is based on a total of 176,254,266 outstanding common shares as of January 31, 2023, in each case rounded down to the nearest hundredth.

(2)&nbsp;&nbsp;&nbsp;&nbsp;The number of shares owned include 67,616 common shares owned directly by Mr. Kochhar and 24,862,612 common shares owned by 2829908 Delaware LLC, a Delaware limited liability company, which is a wholly-owned subsidiary of Maplebriar Holdings Inc., a corporation organized under the laws of the Province of Ontario ("Maplebriar Holdings"), having a sole shareholder, The Kochhar Family Trust, an irrevocable trust established under the laws of the Province of Ontario, Canada (the "Trust"). Mr. Kochhar is one of three trustees of the Trust, along with Mr. Kochhar's brother and father, and the beneficiaries of the Trust are principally relatives of Mr. Kochhar. There is an oral agreement among Mr. Kochhar, the Trust, Maplebriar Holdings and 2829908 Delaware LLC that grants Mr. Kochhar the sole power to control the voting and disposition of the common shares of the Company held by 2829908 Delaware LLC. Mr. Kochhar is a Director and the President and CEO of the Company.

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(3)&nbsp;&nbsp;&nbsp;&nbsp;The number of shares owned include 347,507 common shares owned directly by Mr. Johnston and 11,047,167 common shares owned by Keperra Holdings Ltd., a Guernsey corporation ("Keperra"). Mr. Johnston is the sole shareholder of Keperra. Artemis Nominees Limited is a nominee company that holds legal title to 100 shares of Keperra as nominee of and trustee for Mr. Johnston. Mr. Johnston is a Director and the Executive Chair of the Company.

**ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS**

**A. Major Shareholders**

The following table sets forth information regarding beneficial ownership of the Company's common shares as of January 31, 2023 based on 176,254,266 common shares issued and outstanding as of January 31, 2023, with respect to beneficial ownership of our common shares by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each person known by us to be the beneficial owner of more than 5% of our issued and outstanding common shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our executive officers and directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all our executive officers and directors as a group.

In accordance with SEC rules, individuals and entities below are shown as having beneficial ownership over common shares they own or have the right to acquire within 60 days, as well as common shares for which they have the right to vote or dispose of such common shares. In accordance with SEC rules, for purposes of calculating percentages of beneficial ownership, common shares which a person has the right to acquire within 60 days are included both in that person's beneficial ownership as well as in the total number of common shares issued and outstanding used to calculate that person's percentage ownership but not for purposes of calculating the percentage for other persons.

Except as indicated by the footnotes below, we believe that the persons named below have sole voting and dispositive power with respect to all common shares that they beneficially own. The common shares owned by the persons named below have the same voting rights as the common shares owned by other holders. We believe that, as of January 31, 2023, approximately 69.29% of our common shares are owned by 23 record holders in the United States of America.

Unless otherwise indicated, the business address of each beneficial owner listed in the tables below is c/o Li-Cycle Holdings Corp., 207 Queen's Quay West, Suite 590, Toronto, ON, M5J 1A7, Canada.

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| | | |
|:---|:---|:---|
| **Name and Address of Beneficial Owner** | **Number of<br>Common<br>Shares<br>Beneficially<br>Owned**  | **Percentage of<br>Outstanding<br>Common<br>Shares (1)**  |
| *Directors and Executive Officers* |  |  |
| Ajay Kochhar (2) | 25319212 | 14.33% |
| Tim Johnston (3) | 11843523 | 6.70% |
| Mark Wellings (4) | 331711 | \* |
| Rick Findlay (5) | 688575 | \* |
| Anthony Tse (6) | 244387 | \* |
| Alan Levande (7) | 950203 | \* |
| Scott Prochazka (8) | 101543 | \* |
| Kunal Sinha | 0 | \* |
| Jacqueline Dedo | 0 | \* |
| Debbie Simpson (9) | 19406 | \* |
| Richard Storrie (10) | 58952 | \* |
| Carl DeLuca (11) | 52679 | \* |
| Chris Biederman (12) | 142440 | \* |
| Dawei Li (13) | 34347 | \* |
| Christine Barwell | &nbsp;&nbsp;&nbsp;&nbsp;\* | &nbsp;&nbsp;&nbsp;&nbsp;\* |
| All directors and executive officers as a group (15 individuals) | 39786978 | 22.43% |
| *Five Percent or Greater Shareholders* |  |  |
| Louis M. Bacon (14) | 8473266 | 4.80% |
| CEC Aventurine Holdings, LLC (15) | 8885499 | 5.04% |
| Glencore plc (16)………………………………… | 20100503 | 11.40% |

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\*&nbsp;&nbsp;&nbsp;&nbsp;Less than 1 percent

Notes:

(1)&nbsp;&nbsp;&nbsp;&nbsp;The ownership percentage set out in this column is based on a total of 176,254,266 outstanding common shares as of January 31, 2023, in each case rounded down to the nearest hundredth, and calculated in accordance with SEC rules.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Ajay Kochhar's 25,319,212 shares beneficially owned include (1) 67,616 common shares owned directly by Mr. Kochhar, (2) 24,862,612 common shares owned by 2829908 Delaware LLC, a Delaware limited liability company, which is a wholly-owned subsidiary of Maplebriar Holdings Inc., a corporation organized under the laws of the Province of Ontario ("Maplebriar Holdings"), having a sole shareholder, The Kochhar Family Trust, an irrevocable trust established under the laws of the Province of Ontario, Canada (the "Trust"), and (3) 388,984 common shares subject to vested stock options held by Mr. Kochhar which includes options to acquire (i) 159,640 common shares at a price of $0.02 per share until April 11, 2023, (ii) 139,685 common shares at a price of $0.37 per share until July 19, 2024, (iii) 58,957 common shares at a price of $10.93 per share until August 10, 2031 and (iv) 30,702 common shares at a price of $7.58 per share until January 31, 2032. There is an oral agreement among Mr. Kochhar, the Trust, Maplebriar Holding, and 2829908 Delaware LLC, that grants Mr. Kochhar the sole power to control the voting and disposition of the common shares of the Company held by 2829908 Delaware LLC. Mr. Kochhar is one of three trustees of the Trust, along with Mr. Kochhar's brother and father, and the beneficiaries of the Trust are principally relatives of Mr. Kochhar. Mr. Kochhar is a Director and the President and CEO of the Company.

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(3)&nbsp;&nbsp;&nbsp;&nbsp;Tim Johnston's 11,843,523 shares beneficially owned include (1) 347,507 common shares owned directly by Mr. Johnston, (2) 11,047,167 common shares owned by Keperra Holdings Ltd., a Guernsey corporation ("Keperra") and (3) 448,849 common shares subject to vested stock options, which includes options to acquire (i) 159,640 common shares at a price of $0.02 per share until April 11, 2023, (ii) 199,550 common shares at a price of $0.37 per share until July 19, 2024, (iii) 58,957 common shares at a price of $10.93 per share until August 10, 2031 and (iv) 30,702 common shares at a price of $7.58 per share until January 31, 2032. Mr. Johnston is the sole shareholder of Keperra. Artemis Nominees Limited is a nominee company that holds legal title to 100 shares of Keperra as nominee of and trustee for Mr. Johnston. Mr. Johnston is a Director and the Executive Chair of the Company.

(4)&nbsp;&nbsp;&nbsp;&nbsp;Mark Wellings' 331,711 shares beneficially owned include (1) 14,474 common shares owned directly by Mr. Wellings, (2) 230,234 common shares owned by ZCR Corp., a holding company wholly owned by Mr. Wellings, 18,000 of which were purchased through the PIPE Financing, and (3) vested options to acquire 87,003 common shares at a price of $0.37 per share until July 19, 2024. Mr. Wellings is a director of the Company.

(5)&nbsp;&nbsp;&nbsp;&nbsp;Rick Findlay owns 688,575 shares directly, including 13,000 shares acquired through the PIPE Financing. Mr. Findlay is a Director of the Company.

(6)&nbsp;&nbsp;&nbsp;&nbsp;Anthony Tse beneficially owns 244,387 common shares. Mr. Tse is a Director of the Company.

(7)&nbsp;&nbsp;&nbsp;&nbsp;Alan Levande beneficially owns 950,203 common shares. Mr. Levande was previously the Chief Executive Officer and Chairman of the board of directors of Peridot prior to the consummation of the Business Combination and is currently a Director of the Company.

(8)&nbsp;&nbsp;&nbsp;&nbsp;Scott Prochazka beneficially owns 101,543 common shares directly. Mr. Prochazka previously served as a Director of Peridot and is currently a Director of the Company.

(9) Debbie Simpson's shares beneficially owned include 19,406 common shares issuable on the exercise of a vested option at a price of $7.58 per share until January 31, 2032.

(10) Richard Storrie's shares beneficially owned include 58,952 common shares issuable on the exercise of a vested option at a price of $7.58 per share until January 31, 2032.

(11)&nbsp;&nbsp;&nbsp;&nbsp;Carl DeLuca's 52,679 shares beneficially owned include (1) 9,048 common shares owned directly by Mr. DeLuca and (2) 43,631 common shares subject to vested stock options which includes options to acquire (i) 34,157 common shares at a price of $10.93 per share until August 10, 2031 and (ii) 9,474 common shares at a price of $7.58 per share until January 31, 2032. Mr. DeLuca is the General Counsel & Corporate Secretary of the Company.

(12)&nbsp;&nbsp;&nbsp;&nbsp;Chris Biederman's 142,440 shares beneficially owned include (1) 112,090 shares owned directly by Mr. Biederman and (2) 30,350 common shares subject to vested stock options which includes options to acquire (i) 22,455 common shares at a price of $10.93 per share until August 10, 2031 and (ii) 7,895 common shares at a price of $7.58 per share until January 31, 2032. Mr. Biederman is the Chief Technical Officer of the Company.

(13)&nbsp;&nbsp;&nbsp;&nbsp;Dawei Li's 34,347 shares beneficially owned include (1) 11,219 common shares owned directly by Mr. Li and (2) 23,128 common shares subject to vested stock options which includes options to acquire (i) 6,237 common shares at a price of $10.93 per share until August 10, 2031, (ii) 10,575 common shares at a price of $13.20 per share until November 22, 2031 and (iii) 6,316 common shares at a price of $7.58 per share until January 31, 2032. Mr. Li is the Regional President, APAC of the Company.

(14)&nbsp;&nbsp;&nbsp;&nbsp;Louis M. Bacon beneficially owned 8,473,266 common shares consisting of (1) 667,868 common shares held by MMF LT, LLC, a Delaware limited liability company ("MMF") and (2) 7,805,398 common shares held by Moore Strategic Ventures, LLC, a Delaware limited liability company ("MSV"). According to an amendment no. 1 to a Schedule 13G filed with the SEC on February 14, 2022, Kendall Capital Markets, LLC, a Delaware limited liability company ("KCM") and MSV may be deemed to be the beneficial owner of the common shares held by MSV. Each of Moore Capital Management, LP, a Delaware limited partnership ("MCM"), Moore Global Investments, LLC, a Delaware limited liability company ("MGI"), Moore Capital Advisors, L.L.C., a Delaware limited liability company ("MCA"), MMF and Mr. Bacon may be deemed to be the beneficial owner of the common shares held by MMF. Mr. Bacon controls the general partner of MCM, is the chairman and director of MCA, and is the indirect majority owner of MMF. MCM, the investment manager of MMF, has voting and investment control over the shares held by MMF. MGI and MCA are the sole owners of MMF. KCM, the investment manager of MSV, has voting and investment control over the shares held by MSV. Louis M. Bacon controls KCM and may be deemed the beneficial owner of the shares held by MSV. The business address of MCM, MMF, MGI, MCA, MSV, KCM, and Mr. Bacon is Eleven Times Square, New York, New York 10036. Based solely on the Schedule

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13G filed with the SEC on August 20, 2021, MMF LT, LLC beneficially owned 5,075,000 common shares or 3.1% of the outstanding common shares as of August 10, 2021.

(15)&nbsp;&nbsp;&nbsp;&nbsp;CEC Aventurine Holdings, LLC holdings include common shares held by Peridot Acquisition Sponsor, LLC. CEC Aventurine Holdings, LLC is an affiliate of Peridot Acquisition Sponsor, LLC. The business address of CEC Aventurine Holdings, LLC is 2229 San Felipe Street, Suite 1450, Houston, TX 77019. CEC Aventurine Holdings is controlled by Carnelian Energy Capital III, L.P. ("Carnelian Fund III"), its sole member. Carnelian Fund III is controlled by its general partner, Carnelian Energy Capital GP III, L.P. ("Carnelian L.P.") and Carnelian L.P. is controlled by its general partner Carnelian Energy Capital Holdings, LLC ("Carnelian Holdings"). Tomas Ackerman and Daniel Goodman are the controlling members of Carnelian Holdings. Accordingly, Tomas Ackerman and Daniel Goodman have voting and investment control of the common shares held by CEC Aventurine Holdings, LLC. Based solely on the Schedule 13G filed with the SEC on February 20, 2022, CEC Aventurine Holdings, LLC beneficially owned 9,714,165 common shares or 5.75% of the outstanding common shares as of January 31, 2023.

(16)&nbsp;&nbsp;&nbsp;&nbsp;Represents the number of common shares issuable to Glencore Ltd. upon conversion of all of the Glencore Convertible Note directly owned by Glencore Ltd. assuming an outstanding principal of $200,000,000 and excluding accrued and unpaid interest which may be payable in PIK at Li-Cycle's option at the next semi-annual interest payment date. According to a Schedule 13D filed on September 23, 2022, Glencore Ltd. is a direct wholly-owned subsidiary of Glencore International AG and indirect wholly-owned subsidiary of Glencore plc. The address of the principal business and office of Glencore Ltd. is 330 Madison Ave., New York, NY 10017. The address of the principal business and office of Glencore International AG and Glencore plc is Baarermattstrasse 3, CH-6340, Baar, Switzerland.

Based solely on a Schedule 13G filed with the SEC on August 17, 2021, as of August 17, 2021, TechMet Limited beneficially owned 12,969,674 common shares or 7.95% of the outstanding common shares as of August 10, 2021. Based solely on an amendment no. 1 to a Schedule 13G filed with the SEC on May 5, 2022, TechMet Limited beneficially owned 0 common shares as of May 5, 2022. We are not aware of any arrangement that may, at a subsequent date, result in a change of control of the Company.

**B. Related Party Transactions**

 **Our Related Party Transaction Policy and Practices** 

*Related Party Transaction Policy* 

Our board of directors has adopted a written related party transactions policy that became effective as of the Closing. For purposes of the policy, related party transactions include transactions that would be required to be disclosed under Item 7 of Form 20-F. This includes transactions or loans between the Company and (a) enterprises that directly or indirectly through one or more intermediaries, control or are controlled by, or are under common control with, the Company, (b) unconsolidated enterprises in which the Company has significant influence, or which has significant influence over the Company, (c) individuals owning, directly or indirectly, an interest in the voting power of the Company that gives them significant influence over the Company, and close members of any such individual's family, (d) key management personnel, that is, those persons having authority and responsibility for planning, directing and controlling the activities of the Company, including directors and senior management of companies and close members of such individuals' families, and (e) enterprises in which a substantial interest in the voting power is owned, directly or indirectly, by any person described in (c) or (d) or over which such a person is able to exercise significant influence. Shareholders beneficially owning a 10% interest or greater in voting power are deemed to have significant influence.

*Executive Employment Agreements* 

We have entered into employment agreements with certain of our executive officers. See "Item 6.B. Compensation—Employment Arrangements, Termination and Change in Control Benefits."

*Director & Officer Indemnification Agreements* 

The Company has entered into separate indemnification agreements with its directors and executive officers, in addition to the indemnification provided for in the by-laws. These agreements, among other things, require the Company to indemnify its directors and executive officers for certain costs, charges and expenses, including attorneys' fees, judgments, fines and settlement amounts, reasonably incurred by a director or executive officer in any action or proceeding because of their association with the Company or any of its subsidiaries.

*Investor Agreement* 

At the closing date of the Business Combination, the Company, the Peridot Class B Holders and the Li-Cycle Holders entered into the Investor Agreement, pursuant to which, among other things, the Peridot Class B Holders and the Li-Cycle Holders were granted certain registration rights with respect to the common shares held by

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the Peridot Class B Holders and the Li-Cycle Holders. The Investor Agreement provides that the common shares held by the Li-Cycle Holders will be subject to certain restrictions on the transfer of common shares held by them. For additional information, see the section titled "Item 10C. Material Contracts— Investor Agreement."

*Glencore Commercial Agreements*

On May 31, 2022, the Company entered into the Glencore Commercial Agreements, including the Master Commercial Agreement, the Amended & Restated Global Feed Sourcing Agreement, the Black Mass Sourcing Agreement, the Sulfuric Acid Supply Agreement, the Black Mass Off-Take Agreement, the End Products Off-Take Agreement and the By-Products Off-Take Agreement. For a description of the Glencore Commercial Agreements, see "Item 4B. Business Overview—Our Broad and Diversified In-Take and Off-Take Commercial Contracts—Glencore Commercial Agreements."

*Related-Party Lease* 

From January 1, 2019 to December 31, 2021, the Company leased certain office space from Ashlin BPG Marketing, which is controlled by certain members of the immediate family of the Company's President and CEO. Under the terms of the lease, the Company was required to pay Cdn. $4,500 per month plus applicable taxes, subject to 60 days' notice of termination. Li-Cycle terminated the lease, effective December 31, 2021. During the twelve months ended October 31, 2022, the Company incurred $6,358 in relation to this lease, as compared to $39,866 for the twelve months ended October 31, 2021.

*Related-Party Expenses* 

The Company engaged Ashlin BPG Marketing, a related party as described above, to provide it with Li-Cycle branded promotional products for both customers and employees, from April 1, 2020 to June 30, 2022. During the twelve months ended October 31, 2022, the Company incurred expenses of $50,173 attributable to this vendor, as compared to $46,640 for the twelve months ended October 31, 2021. The Company terminated its relationship with this vendor, effective June 30, 2022.

The Company engaged Consulero Inc., which is controlled by certain members of the immediate family of the Company's President and CEO, to provide it with technology services in relation to the Company's inventory management system, from September 1, 2020 to July 31, 2022. During the twelve months ended October 31, 2022, the Company incurred expenses of $121,950 attributable to this vendor, as compared to $103,040 for the twelve months ended October 31, 2021. The Company terminated its relationship with this vendor, effective July 31, 2022.

The Company has engaged Fade In Production Pty. Ltd., which is controlled by certain members of the immediate family of the Executive Chair of Li-Cycle, to provide it with corporate video production services since 2017. During the twelve months ended October 31, 2022, the Company incurred expenses of $156,215 attributable to this vendor, as compared to $145,851 for the twelve months ended October 31, 2021.

*Director Consulting Agreement* 

Under the terms of an agreement dated July 19, 2019 between Li-Cycle Corp. and Anthony Tse, Mr. Tse provided consulting services to Li-Cycle Corp. in relation to the proposed expansion of its operations in Asia and was entitled to a fee of $4,700 per month for such services. For the twelve months ended October 31, 2022, Mr. Tse was paid aggregate fees under this agreement of $14,100 as compared to $56,400 for the twelve months ended October 31, 2021. The consulting agreement was terminated on January 19, 2022.

**C. Interests of Experts and Counsel**

Not Applicable.

**ITEM 8. FINANCIAL INFORMATION**

**A. Consolidated Statements and Other Financial Information**

For consolidated financial statements and other financial information, see Item 18 of this annual report.

For a discussion of legal proceedings involving the Company, see Note 18 to the audited consolidated financial statements included in this annual report and the section entitled "Item 4B. Business Overview—Legal Proceedings," which is incorporated by reference herein.

Our board of directors will evaluate whether or not to pay dividends and, if so, whether to pay dividends on a quarterly, semi-annual or annual basis, depending on our results, market conditions, contractual obligations, legal restrictions and other factors deemed relevant by the board of directors.

**B. Significant Changes**

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*&nbsp;&nbsp;&nbsp;&nbsp;*On December 21, 2022, the Company announced a change in its financial year end from October 31 to December 31. The change is being made to better align Li-Cycle's financial reporting calendar with peer group companies. As a result, by March 31, 2023, Li-Cycle will file a transition report on Form 20-F that will provide financial statements for the two-month period from November 1, 2022 through December 31, 2022. Li-Cycle's next financial year will cover the period from January 1, 2023 to December 31, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;On January 12, 2023, the Company entered into the Hub Warehouse Agreement, outlining the parties' respective rights and obligations with respect to the construction, financing and leasing of a warehouse and administrative building for the Rochester Hub. See "Item 4D. Property, Plants and Equipment – Leases".

**ITEM 9. THE OFFER AND LISTING**

**A. Offer and Listing Details**

Our common shares listed on NYSE under the symbol "LICY". Holders of our common shares should obtain current market quotations for their securities. There can be no assurance that our common shares will remain listed on NYSE. If we fail to comply with the NYSE listing requirements, our common shares could be delisted from NYSE. A delisting of our common shares will likely affect the liquidity of our common shares and could inhibit or restrict our ability to raise additional financing. See the section entitled "Item 3D. Risk Factors—Risks Relating to Ownership of Our Securities—NYSE may delist our common shares, which could limit investors' ability to engage in transactions in our common shares and subject us to additional trading restrictions."

**B. Plan of Distribution**

Not applicable.

**C. Markets**

A discussion of all stock exchanges and other regulated markets on which our securities are listed is provided under "—A. Offer and Listing Details" of this annual report and is incorporated herein by reference.

**D. Selling Shareholders**

Not applicable.

**E. Dilution**

Not applicable.

**F. Expenses of the Issue**

Not applicable.

**ITEM 10. ADDITIONAL INFORMATION**

**A. Share Capital**

Not applicable.

**B. Memorandum and Articles of Association**

The following includes a description of the Company's organizational documents, which are included in this annual report as Exhibits 1.1 and 1.2. Certain information called for by this item is set forth in Exhibit 2.2 to this annual report and is incorporated by reference into this annual report.

 **Annual Meetings**

Under the OBCA, the Company must hold its first annual meeting of shareholders within 18 months after the date on which it was incorporated, and after that must hold an annual meeting not later than 15 months after the last annual meeting at such time and place in or outside the Province of Ontario as may be determined by the directors of the Company or, in the absence of such a determination, at the place where the registered office of the Company is located.

**Board and Shareholder Ability to Call Shareholder Meetings**

The by-laws of the Company provide that meetings of the shareholders may be called by the board of directors at any time. In addition, under the OBCA, the holders of not less than 5% of the issued shares of a corporation that carry the right to vote at a meeting sought to be held may requisition that the directors call a meeting of shareholders for the purposes stated in the requisition. Upon receiving a requisition to call a meeting of

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shareholders, the directors must, within 21 days after receiving the requisition, call a meeting of shareholders to transact the business stated in the requisition unless a record date has been fixed for a meeting of shareholders and notice of the meeting has been given in accordance with the OBCA; the directors of the Company have called a meeting of shareholder and have given notice of the meeting in accordance with the OBCA; or the business of the meeting as stated in the requisition includes certain matters, including, but not limited to, a proposal the primary purpose of which is to enforce a personal claim or redress a personal grievance against the Company or its directors, officers or security holders. If the directors do not call such a meeting within 21 days after receiving the requisition, any shareholder who signed the requisition may call the meeting. The Company must reimburse the requisitioning shareholders for the expenses reasonably incurred by them in requisitioning, calling and holding the meeting unless the shareholders have not acted in good faith and in the interest of the shareholders of the corporation generally.

**Shareholder Meeting Quorum**

The by-laws of the Company provide a quorum of shareholders is present at a meeting of shareholders if the holders of not less than 33 1/3% of the shares entitled to vote at the meeting are present in person or represented by proxy, irrespective of the number of persons actually present at the meeting.

**Voting Rights**

Under the OBCA, at any meeting of shareholders at which a quorum is present, any action that must or may be taken or authorized by the shareholders, except as otherwise provided under the OBCA, the Company articles or by-laws, may be taken or authorized by an "ordinary resolution," which is a simple majority of the votes cast by shareholders voting shares that carry the right to vote at general meetings. The Company's by-laws provide that every motion put to a vote at a meeting of shareholders will be decided by a show of hands unless a ballot is directed by the chair or demanded by any shareholder entitled to vote who is present in person or by proxy. Votes by a show of hands or its functional equivalent result in each person having one vote regardless of the number of shares such person is entitled to vote. If voting is conducted by ballot, each person is entitled to one vote for each share such person is entitled to vote.

There are no limitations on the right of non-resident or foreign owners to hold or vote securities of the Company imposed by Ontario law or by the articles or other constituent document of the Company.

**Shareholder Action by Written Consent**

Under the OBCA, shareholder action without a meeting may be taken by a resolution signed by all the shareholders or their attorney authorized in writing entitled to vote on that resolution at a meeting of shareholders. A written resolution of shareholders is as valid as if it had been passed at a meeting of those shareholders. A written resolution of shareholders dealing with all matters required by the OBCA to be dealt with at a meeting of shareholders, and signed by all the shareholders or their attorney authorized in writing entitled to vote on that resolution at that meeting, satisfies all the requirements of the OBCA relating to that meeting of shareholders.

**Access to Books and Records and Dissemination of Information**

The Company must keep at its registered office, or at such other place in Ontario as designated by the directors of the Company, the documents, copies, registers, minutes and other records which the Company is required by the OBCA to keep at such places. The Company must prepare and maintain, among other specified documents, adequate accounting records. Under the OBCA, any director, shareholder or creditor of the Company may, free of charge, examine certain of the Company's records during the usual business hours of the Company.

**Election and Appointment of Directors**

The articles do not provide for the board of directors to be divided into classes.

The minimum number of directors the Company may have is one and the maximum number of directors is ten, as set out in the articles. The OBCA provides that any amendment to the articles to increase or decrease the minimum or maximum number of directors requires the approval of shareholders by a special resolution.

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**Removal of Directors**

Pursuant to the OBCA, the shareholders may remove any director before the expiration of his or her term of office by ordinary resolution at an annual or special meeting of shareholders, provided that, where the holders of any class or series of shares have an exclusive right to elect one or more directors, a director so elected may only be removed by an ordinary resolution at a meeting of the shareholders of that class or series. In that event, the shareholders may elect, by ordinary resolution, another individual as director to fill the resulting vacancy.

**Proceedings of Board of Directors**

At all meetings of the directors of the Company, every question will be decided by a majority of the votes cast and, in the case of an equality of votes, the chair of the meeting will not have a second or casting vote. A resolution of the directors or of any committee of the directors consented to in writing by all of the directors entitled to vote on it is as valid as if it had been passed at a meeting of the directors or of the committee of the directors duly called and held.

**Requirements for Advance Notification of Shareholder Nominations**

Pursuant to the by-laws of the Company and subject to the OBCA, the articles of the Company and applicable securities laws, shareholders of record entitled to vote will nominate persons for election to the board of directors of the Company only by providing proper notice to the corporate secretary. In the case of annual meetings, proper notice must be given, generally between 30 and 65 days prior to the date of the annual meeting. However, in the event that the annual meeting of shareholders is to be held on a date that is less than 50 days after the date (the "Notice Date") that is the earlier of (i) the date that a notice of meeting is filed for such meeting, and (ii) the date on which the first public announcement of the meeting was made, the notice must be given on the 10th day following the Notice Date. In the case of a special meeting called for the purpose of electing directors and which is not also an annual meeting of shareholders, the notice must be given not later than the close of business on the 15th day following the date that is the earlier of (i) the date that a notice of meeting is filed for such meeting, and (ii) the date on which the first public announcement of the special meeting was made. Such notice must include, among other information, certain information with respect to each shareholder nominating persons for elections to the board, a written consent of each nominee consenting to serve as a director, disclosure about any proxy, contract, arrangement, understanding or relationship pursuant to which the nominating shareholder has a right to vote shares and any other information the Company may reasonably require to determine the eligibility of the nominee to serve as a director.

**Approval of Amalgamations, Mergers and Other Corporate Transactions**

Under the OBCA, certain corporate actions, such as: (i) amalgamations (other than with certain affiliated corporations); (ii) continuances; (iii) sales, leases or exchanges of all, or substantially all, the property of a corporation other than in the ordinary course of business; (iv) reductions of stated capital for any purpose, including in connection with the payment of special distributions (subject, in certain cases, to the satisfaction of solvency tests); and (v) other actions such as liquidations, or arrangements, must be approved by a special resolution of shareholders.

In certain specified cases where share rights or special rights may be prejudiced or interfered with, a special resolution of shareholders to approve the corporate action in question affecting the share rights or special rights, is also required to be approved separately by the holders of a class or series of shares, including a class or series of shares not otherwise carrying voting rights. In specified extraordinary corporate actions, such as approval of plans of arrangements and amalgamations all shares have a vote, whether or not they generally vote and, in certain cases, have separate class votes.

**Limitations on Director Liability and Indemnification of Directors and Officers**

Under the OBCA, no provision in a contract, the articles, the by-laws or a resolution relieves a director or officer from the duty to act in accordance with the OBCA and its related regulations or relieves him or her from liability for a breach of the OBCA or its regulations.

A director is not liable under the OBCA for certain acts if the director exercised the care, diligence and skill that a reasonably prudent person would have exercised in comparable circumstances, including reliance, in good faith, on (i) financial statements of the corporation represented to the director by an officer of the corporation or in a written report of the auditor of the corporation to fairly reflect the financial position of the corporation in accordance with generally accepted accounting principles; (ii) an interim or other report of the corporation represented to the director by an officer of the corporation to fairly reflect the financial position of the corporation in accordance with generally accepted accounting principles; (iii) a report or advice of an officer or employee of the corporation, where it is reasonable in the circumstances to rely on the report of advice; or (iv) a report of a lawyer, accountant, engineer, appraiser or other person whose profession lends credibility to a statement made by that person.

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Under the OBCA, the Company may indemnify its current or former directors or officers or another individual who acts or acted at the Company's request as a director or officer, or an individual acting in a similar capacity, of another entity, against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by the individual in respect of any civil, criminal, administrative, investigative or other proceeding in which the individual is involved because of his or her association with the Company or another entity.

The OBCA also provides that the Company may advance monies to a director, officer or other individual for costs, charges and expenses reasonably incurred in connection with such a proceeding; provided that such individual must repay the monies if the individual does not fulfill the conditions described below. However, indemnification is prohibited under the OBCA unless the individual (i) acted honestly and in good faith with a view to the Company's best interests, or the best interests of the other entity for which the individual acted as director or officer or in a similar capacity at the Company's request; and (ii) in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, the individual had reasonable grounds for believing that his or her conduct was lawful.

Under the Company's by-laws, the Company will indemnify to the fullest extent permitted by the OBCA (i) any director or officer of the Company; (ii) any former director or officer of the Company; (iii) any individual who acts or acted at the Company's request as a director or officer, or in a similar capacity, of another entity, against all costs, charges and expenses reasonably incurred by the individual in respect of any civil, criminal, administrative, investigative or other proceeding in which the individual is involved because of that association with the Company or other entity.

**Derivative Suits and Oppression Remedy**

Under the OBCA, a complainant (being a current or former director, officer or security holder of a corporation, which includes a beneficial shareholder, and any other person that a court considers to be a proper person to make such an application) of the Company may apply to the Ontario Superior Court of Justice for leave to bring an action in the name and on behalf of the Company or any of its subsidiaries, or to intervene in an existing action to which the Company or any of its subsidiaries is a party, for the purpose of prosecuting, defending or discontinuing an action on behalf of the Company or any of its subsidiaries.

No such action may be brought and no intervention in any action may be made unless the complainant has given the requisite notice of the application for leave to the directors of the Company or its subsidiary of the complainant's intention to apply to the court and the court is satisfied that (i) the directors of the Company or its subsidiary will not bring, diligently prosecute or defend or discontinue the action; (ii) the complainant is acting in good faith; and (iii) it appears to be in the best interests of the Company or its subsidiary for the action to be brought, prosecuted, defended or discontinued.

Under the OBCA, the court in a derivative action may make any order it thinks fit. Under the OBCA, a complainant, and, in the case of a public corporation, the Ontario Securities Commission, may apply to the Ontario Superior Court of Justice for any interim or final order the court thinks fit, including, but not limited to, an order restraining the conduct complained of, where the court is satisfied that, in respect of the Company or any of its affiliates, any act or omission of the Company or any of its affiliates effects or threatens to effect a result, the business or affairs of the Company or any of its affiliates are, have been or are threatened to be carried on or conducted in a manner, or the powers of the directors of the Company or any of its affiliates are, have been or are threatened to be exercised in a manner, that is oppressive or unfairly prejudicial to or that unfairly disregards the interests of any security holder, creditor, director or officer of the Company.

**Exclusive Forum**

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**Amendment of the Articles, By-laws and Alteration of Share Capital**

Under the OBCA, the Company may amend the articles by special resolution. For purposes of the OBCA, a special resolution is a resolution submitted to a special meeting of shareholders duly called for the purpose of considering the resolution and passed at the meeting by at least two-thirds of the votes cast or consented to in writing by all shareholders entitled to vote at such a meeting. A special resolution is generally required to approve corporate matters that may materially affect the rights of shareholders or are of a transformative nature for the Company, including, but not limited to, changes to the Company's authorized capital structure, changes to the rights privileges, restrictions and conditions in respect of any of the Company's shares, a change in the Company's name, the winding up, dissolution or liquidation of the Company, and a plan of arrangement with shareholders.

Under the OBCA, the board may, by resolution, make, amend or repeal any by-laws that regulate the business or affairs of the Company. Where the directors make, amend or repeal any by-law, they must submit the by-law, amendment or repeal to the shareholders at the next meeting of shareholders, and the shareholders may confirm, reject or amend the by-law, amendment or repeal. Where a by-law is made, amended or repealed by the directors, the by-law, amendment or repeal is effective from the date of the resolution of the directors until it is confirmed, amended or rejected by shareholders (or, if the directors fail to submit the by-law, amendment or repeal to shareholders, until the date of the shareholders meeting at which it should have been submitted).

**C. Material Contracts**

***Business Combination Agreement***

On August 10, 2021, Li-Cycle, Li-Cycle Holdings Corp. (a wholly-owned subsidiary of Li-Cycle prior to the Business Combination) ("Old Li-Cycle Holdings") and Peridot Acquisition Corp. ("Peridot") completed the Business Combination pursuant to a plan of arrangement under the OBCA (the "Arrangement").

Pursuant to the terms of the Business Combination, on the closing date of the Business Combination (the "Closing Date"), (i) Peridot and Old Li-Cycle Holdings amalgamated, and in connection therewith, the Class A common shares and warrants to purchase Class A common shares of Peridot converted into an equivalent number of shares and warrants of the amalgamated entity, Li-Cycle Holdings, and the common share in Old Li-Cycle Holdings held by Li-Cycle was exchanged for a share of Li-Cycle Holdings; (ii) the share of Li-Cycle Holdings held by Li-Cycle was purchased for cancellation by Li-Cycle Holdings for cash equal to the subscription price for the common share in Old Li-Cycle Holdings for which such share was exchanged pursuant to the amalgamation; (iii) the preferred shares of Li-Cycle converted into common shares of Li-Cycle; and (iv) Li-Cycle Holdings acquired all of the issued and outstanding common shares of Li-Cycle from Li-Cycle's shareholders (including Li-Cycle common shares issued upon exercise, cancellation, exchange or settlement of all issued and outstanding equity awards (whether vested or unvested), including pursuant to the Business Combination, but excluding any equity awards that were cancelled and exchanged for equity awards of Li-Cycle Holdings and remained outstanding on the day following the Closing Date of the Business Combination) in exchange for common shares of Li-Cycle Holdings. Pursuant to the Business Combination, Li-Cycle became a wholly-owned subsidiary of Li-Cycle Holdings. Upon consummation of the Business Combination pursuant to the terms of the Business Combination Agreement, the Company's common shares and warrants to purchase common shares became listed on the NYSE under the symbols "LICY" and "LICY.WS", respectively.

Upon the closing of the Business Combination and a concurrent $315.5 million private placement of common shares (the "PIPE Financing"), the combined company received $581.9 million of gross transaction proceeds, before deduction of 29.6 million of Peridot's transaction costs and 27.0 million of Li-Cycle's transaction costs.

***Li-Cycle Transaction Support Agreements***

Concurrently with the execution of the Business Combination Agreement, the Li-Cycle Holders entered into the Li-Cycle Transaction Support Agreements with Peridot, pursuant to which each Li-Cycle Holder agreed to, among other things, (i) vote or cause to be voted (whether in person, by proxy, by action by written consent, as applicable, or as may be required under Li-Cycle's shareholders agreement or articles of incorporation) their Li-Cycle Shares in favor of the Business Combination Agreement, the Arrangement and certain related transactions; (ii) be bound by certain other covenants and agreements related to the Business Combination; and (iii) be bound by certain transfer restrictions with respect to such securities, in each case, on the terms and subject to the conditions set forth in the Li-Cycle Transaction Support Agreements.

***Investor Agreement***

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On August 10, 2021, the Company, the Peridot Class B Holders and the Li-Cycle Holders (collectively for the purposes of this subsection referred to as the "Holders") entered into the Investor Agreement. The Company has granted certain registration rights to the Holders. The Company has filed with the SEC a shelf registration statement covering the resale of the common shares held by the Holders, which has been declared effective by the SEC. In addition, pursuant to the terms of the Investor Agreement and subject to certain requirements and customary conditions, including with regard to the number of demand rights that may be exercised, the Holders may demand at any time or from time to time, that the Company file a registration statement on Form F-3 (or on Form F-1 if Form F-3 is not available) to register the securities of the Company held by such Holders, and each may specify that such demand registration take the form of an underwritten offering, in each case subject to limitations on the number of demands and underwritten offerings that can be requested by each Holder, as specified in the Investor Agreement. Holders will also have "piggy-back" registration rights, subject to certain requirements and customary conditions. The Investor Agreement also provides that the Company will pay certain expenses relating to such registrations and indemnify the Holders against (or make contributions in respect of) certain liabilities that may arise under the Securities Act.

The Investor Agreement further provided that the securities of the Company held by the Peridot Class B Holders and Li-Cycle Holders were subject to certain transfer restrictions which have now expired.

Under the Investor Agreement, the Sponsor will also have the right to designate for nomination a number of directors to the Company's board as follows: (i) during any time that the Sponsor and its affiliates collectively beneficially own at least 50% of the number of shares of the Company held by them on the date of Closing, two directors or (ii) during any time that the Sponsor and its affiliates do not collectively satisfy the test set forth in the preceding clause (i) but do collectively beneficially own at least 25% of the number of shares of the Company held by them on the date of Closing, one director.

***Subscription Agreements***

Contemporaneously with the execution of the Business Combination Agreement, Subscription Agreements were entered into by and among each PIPE Investor, Peridot, and NewCo, Peridot obtained commitments from the PIPE Investors to purchase common shares for a purchase price of $10.00 per share for aggregate gross proceeds of $315,490,000. Certain offering related expenses were payable by Peridot under the Subscription Agreements, including customary fees payable to the placement agents. The purpose of the sale of common shares to the PIPE Investors under the Subscription Agreements was to raise additional capital for use in connection with the Business Combination.

The common shares sold to the PIPE Investors were identical to the common shares that were held by our other shareholders at the time of the Closing, except that when initially issued by Peridot, such shares were restricted securities. The PIPE Financing occurred on the date of, and immediately prior to, the consummation of the Business Combination.

The closing of the PIPE Financing was subject to customary conditions, including, among other conditions, the Company's agreement to, as soon as practicable (but in any case no later than 30 calendar days after the consummation of the Business Combination), file with the SEC (at its sole cost and expense) a registration statement registering the resale of the shares received by the PIPE Investors in the PIPE Financing, and to use its commercially reasonable efforts to have such resale registration statement declared effective as soon as practicable after the filing thereof. The registration statement on Form F-3 filed by the Company on September 14, 2022 and declared effective by the SEC on September 23, 2022 is intended to satisfy this requirement.

***Sponsor Letter Agreement***

Concurrently with the execution of the Business Combination Agreement, the Sponsor and the other holders of the certain shares of Peridot (the "Founder Shares") entered into the Sponsor Letter Agreement with Peridot, Li-Cycle and NewCo, pursuant to which the such holders agreed to, among other things, (i) vote or cause to be voted (whether in person, by proxy or by action by written consents, as applicable) all of their Founder Shares in favor of the Business Combination; (ii) be bound by certain other covenants and agreements related to the Business Combination and (iii) waive the anti-dilution protection with respect to the Founder Shares (whether resulting from the PIPE Financing or otherwise), in each case, on the terms and subject to the conditions set forth in Sponsor Letter Agreement.

***KSP Note Purchase Agreement***

On September 29, 2021, the Company entered into a Note Purchase Agreement (the "KSP Note Purchase Agreement") with Spring Creek Capital, LLC ("Spring Creek Capital") (an affiliate of Koch Strategic Platforms, LLC, or "KSP") and issued to Spring Creek Capital under the KSP Note Purchase Agreement an unsecured convertible note, as amended from time to time, in the principal amount of $100 million (the "Initial KSP

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Convertible Note"), in a transaction exempt from registration pursuant to Section 4(a)(2) of the U.S. Securities Act of 1933, as amended (the "Securities Act"). The Company granted certain registration rights to the holder of the KSP Convertible Notes under the KSP Note Purchase Agreement. The Company has filed a registration statement covering the resale of the common shares issued or issuable upon conversion of the KSP Convertible Notes in accordance with those registration rights and has agreed to keep the registration statement (or another shelf registration statement covering the common shares issued or issuable upon conversion of the KSP Convertible Notes) effective until the earlier of (x) the third anniversary of the first issuance of the KSP Convertible Notes or (y) the date on which the holder of the KSP Convertible Notes ceases to hold any common shares issued or upon conversion of the KSP Convertible Notes. The registration statement on Form F-3 filed by the Company on September 14, 2022 and declared effective by the SEC on September 23, 2022 is intended to satisfy this requirement.

***KSP Convertible Notes***

On September 29, 2021, the Company issued to Spring Creek Capital the Initial KSP Convertible Note. On December 31, 2021, the Company issued to Spring Creek Capital an additional unsecured convertible note in the amount of $1,827,778 in satisfaction of the interest due and payable on the Initial KSP Convertible Note (a "PIK Note" and, together with any other additional unsecured convertible notes issued in satisfaction of interest due and payable, the "PIK Notes"). On May 1, 2022, Spring Creek Capital assigned the Initial KSP Convertible Note and the then-outstanding PIK Notes to an affiliate, Wood River Capital, LLC ("Wood River Capital") and each of Spring Creek Capital and Wood River Capital signed a joinder agreement under which Wood River Capital agreed to become a party to, to be bound by and to comply with the KSP Note Purchase Agreement and the KSP Standstill Agreement (as defined below); provided, however, that assignment did not relieve Spring Creek Capital of its obligations thereunder. On June 30, 2022, the Company issued a PIK Note to Wood River Capital in the amount of $4,095,740. The Initial KSP Convertible Note and any PIK Notes issued in satisfaction of interest due and payable thereon are referred to collectively as the "KSP Convertible Notes".

The KSP Convertible Notes mature five years from the date of first issuance (September 29, 2026) and accrue interest from the date of issuance at the London Interbank Offer Rate (LIBOR) plus five percent (5%) per annum. Interest on the KSP Convertible Notes is payable on a semi-annual basis, either in cash or by payment-in-kind ("PIK"), at the Company's option, beginning on December 31, 2021. Interest on PIK amounts accrues at LIBOR plus six percent (6%) per annum. Under the terms of the investment, LIBOR has a floor of 1% and a cap of 2%. On March 5, 2021, The Financial Conduit Authority announced the retirement of the LIBOR rate, ceasing the publication of the LIBOR rate relevant to the KSP Convertible Notes as of June 30, 2023. Once the LIBOR interest rate is no longer published, the interest rate will instead be based on the sum of the Secured Overnight Financing Rate ("SOFR") and the average spread between the SOFR and LIBOR during the three-month period ending on the date on which LIBOR ceases to be published.

The principal and accrued interest owing under the KSP Convertible Notes may be converted at any time by the holder into the Company's common shares, at a per share price equal to $13.43 (the "Conversion Price"). If the closing price per share of the Company's common shares on the New York Stock Exchange is above $17.46 for 20 consecutive trading days, the Company may elect to convert the principal and accrued interest owing under the KSP Convertible Notes, plus a make-whole amount equal to the undiscounted interest payments that would have otherwise been payable through maturity (the "Make-Whole Amount") into the Company's common shares at the Conversion Price.

The Company may redeem the KSP Convertible Notes at any time by payment in cash of an amount equal to 130% of the principal amount of the KSP Convertible Notes and all accrued interest owing under the KSP Convertible Notes, plus the Make-Whole Amount. Upon a change of control transaction, the Company will be required to redeem the KSP Convertible Notes by payment in cash of an amount equal to the outstanding principal amount of the KSP Convertible Notes and all accrued interest owing under the KSP Convertible Notes, plus the Make-Whole Amount.

The KSP Convertible Notes are subject to certain events of default, the occurrence of which would give the holder the right to require the Company to redeem the KSP Convertible Notes by payment in cash of an amount equal to the outstanding principal amount of the KSP Convertible Notes and all accrued interest owing thereunder the KSP Convertible Notes, plus the Make-Whole Amount. The KSP Note Purchase Agreement contains certain customary representations, warranties and covenants by and for the benefit of the parties.

On May 5, 2022, the Company and Wood River Capital entered into a consent and amendment agreement pursuant to which Wood River Capital consented to the issuance of the Glencore Convertible Note and the parties amended certain investor consent-related provisions of the KSP Convertible Notes.

***KSP Standstill Agreement***

On September 29, 2021, in connection with the KSP Convertible Notes investment, the Company, KSP and Spring Creek Capital entered into a Standstill Agreement (the "KSP Standstill Agreement"), which restricts KSP, Spring Creek Capital and their affiliates (including Wood River Capital) from taking certain actions until the later of

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the conversion of the KSP Convertible Notes in full or twelve months from the first issuance of the KSP Convertible Notes (the "KSP Standstill Period"). The actions that KSP, Spring Creek Capital and their affiliates (including Wood River Capital) are restricted from taking during the KSP Standstill Period include, among others, (A) the acquisition of additional voting securities of the Company if KSP and its subsidiaries and affiliates would beneficially own or exercise control or direction over voting securities of the Company having aggregate voting rights equal to or greater than 9.9% of the aggregate voting power of the Company after the acquisition (B) any tender or exchange offer, take-over bid, merger, business combination and certain other transactions involving the Company and its securities, (C) any solicitation of proxies or votes or other attempt to influence votes by any holder of the Company's securities and (D) formation of a "group" (as defined under the U.S. Securities Exchange Act of 1934) with respect to the Company's securities.

***LG Subscription Agreements*** 

On December 13, 2021, Li-Cycle entered into subscription agreements with each of LGES and LGC, each of which were subsequently amended and restated on March 11, 2022 and April 21, 2022 (the "LG Subscription Agreements" and each, an "LG Subscription Agreement"), pursuant to which each of LGES and LGC agreed, subject to the satisfaction of certain conditions, to subscribe for an equal number of the Company's common shares in transactions exempt from registration under the Securities Act (the "LG Subscription"). The LG Subscription was completed on May 11, 2022 and consisted of the issuance by the Company in accordance with the LG Subscription Agreements of (i) an initial tranche of 4,416,960 common shares, in the aggregate, at a price of $10.00 per share, for an aggregate initial tranche subscription price of approximately $44.2 million, and (ii) a second tranche of 883,392 common shares, in the aggregate, at a price of $6.60 per share (based on the volume-weighted average trading price of the Company's common shares for the 5 trading days ending immediately prior to April 29, 2022), for an aggregate second tranche subscription price of approximately $5.8 million, for a total subscription price of approximately $50.0 million.

The Company has granted certain registration rights to LGES and LGC under the LG Subscription Agreements. The Company has filed with the SEC a shelf registration statement covering the resale of the common shares issued pursuant to the LG Subscription Agreements, which has been declared effective by the SEC. The Company has agreed to keep such shelf registration statement (or another shelf registration statement covering the common shares issued pursuant to the LG Subscription Agreements) effective until the earlier of (x) May 11, 2025 or (y) the date on which LGES or LGC, as applicable, ceases to hold any of the common shares acquired pursuant to the LG Subscription Agreements.

The common shares issued pursuant to the LG Subscription Agreements are subject to certain transfer restrictions.

***LG Standstill Agreement***

On December 13, 2021, the Company, LGES and LGC entered into a Standstill Agreement (the "Standstill Agreement"), which restricts LGES, LGC and each of their respective subsidiaries from taking certain actions until LGES and its subsidiaries or LGC and its subsidiaries, as applicable, cease to beneficially own or control voting securities of the Company having voting rights equal to or greater than 50% of the voting rights attached to the Acquired Shares to be acquired by each of LGES and LGC under the applicable Subscription Agreement (the "Standstill Period"). The obligations of LGES and LGC under the Standstill Agreement are separate such that the termination of the Standstill Period applicable to one party shall not necessarily result in the termination of the Standstill Period applicable to the other party. The actions that LGES, LGC and any of their respective subsidiaries are restricted from taking during the Standstill Period include, among others, (A) the acquisition of additional voting securities or of any debt, material assets or material businesses of the Company, (B) any tender or exchange offer, take-over bid, merger, business combination and certain other transactions involving the Company and its securities, (C) any solicitation of proxies or votes or other attempt to influence votes by any holder of the Company's securities and (D) formation of a "group" (as defined under the Securities Exchange Act of 1934) with respect to the Company's securities.

***Glencore Note Purchase Agreement***

&nbsp;&nbsp;&nbsp;&nbsp;On May 5, 2022, the Company entered into a Note Purchase Agreement (the "Glencore Note Purchase Agreement") with Glencore Ltd. pursuant to which the Company issued to Glencore an unsecured convertible note (the "Glencore Convertible Note") in the aggregate principal amount of $200,000,000, in a transaction exempt from registration under the Securities Act of 1933, as amended (the "Transaction").

The Glencore Note Purchase Agreement includes customary representations, warranties and covenants. In addition, Glencore has agreed to certain transfer restrictions with respect to the common shares of the Company issuable upon conversion of the Glencore Convertible Note.

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On the closing of the Transaction, the parties entered into the Glencore Commercial Agreements. In addition, Glencore entered into a standstill agreement and the Company granted certain registration rights to Glencore, as described further below.

Subject to certain exceptions and applicable law, following closing of the Transaction, Glencore is entitled to nominate one board member to the board of directors of the Company. Pursuant to the exercise of that right, Kunal Sinha, Glencore's Head of Recycling, has been appointed to the Company's Board of Directors

***Glencore Convertible Note***

On May 31, 2022, pursuant to the note purchase agreement entered into by the Company and Glencore on May 5, 2022, the Company issued to Glencore the Glencore Convertible Note in the aggregate principal amount of $200,000,000, in a transaction exempt from registration under the Securities Act. The Glencore Convertible Note matures five years from the date of issuance and interest on the Glencore Convertible Note is payable on a semi-annual basis, either in cash or by PIK, at the Company's option. The Glencore Convertible Note accrues interest from the date of issuance at the forward-looking term rate based on SOFR for a tenor comparable to the relevant interest payment period plus 0.42826% (the "Floating Rate") plus 5% per annum if interest is paid in cash and plus 6% per annum if interest is paid in PIK. The Floating Rate has a floor of 1% and a cap of 2%. The obligations of the Company to make any payment on account of the principal of and interest on the Glencore Convertible Note are subordinate and junior in right of payment and upon liquidation to the Company's obligations to the holders of all current and future senior indebtedness of the Company.

The principal and accrued interest owing under the Glencore Convertible Note may be converted at any time by the holder into the Company's common shares at a per share price equal to $9.95 (the "Conversion Price"), subject to adjustments. The Company may redeem the Glencore Convertible Note at any time by payment of an amount in cash equal to 100% of the outstanding principal amount of the Glencore Convertible Note and all accrued interest owing under the Glencore Convertible Note. In connection with any optional redemption and provided that the holder of the Glencore Convertible Note has not elected to convert the Glencore Convertible Note into common shares following receipt of an optional redemption notice, the Company must issue warrants (the "Glencore Warrants") to the holder of the Glencore Convertible Note on the optional redemption date that entitle the holder to acquire, until the maturity date of the Glencore Convertible Note, a number of common shares equal to the principal amount of the Glencore Convertible Note being redeemed divided by the then applicable Conversion Price. The initial exercise price of the Glencore Warrants will be equal to the Conversion Price as of the optional redemption date.

The Glencore Convertible Note is subject to certain events of default, the occurrence of which would give the holder the right to require the Company to redeem the Glencore Convertible Note by payment of an amount in cash equal to the outstanding principal amount of the Glencore Convertible Note and all accrued interest owing under the Glencore Convertible Note, plus a make-whole amount equal to the undiscounted interest payments that would have otherwise been payable through maturity (the "Make-Whole Amount"). In addition, the occurrence of certain bankruptcy-related events of default renders the outstanding principal amount of the Glencore Convertible Note, all accrued interest owing thereunder and the Make-Whole Amount immediately due and payable.

Upon a change of control transaction, the Company will be required to redeem the Glencore Convertible Note by payment of an amount in cash equal to the outstanding principal amount of the Glencore Convertible Note and all accrued interest owing under the Glencore Convertible Note, plus the Make-Whole Amount. Glencore has agreed to certain transfer restrictions with respect to the common shares issued or issuable upon conversion of the Glencore Convertible Note, including that Glencore will not transfer common shares other than to permitted transferees until May 5, 2024.

***Glencore Registration Rights Agreement***

&nbsp;&nbsp;&nbsp;&nbsp;Concurrently with the issuance of the Glencore Convertible Note, the Company entered into a registration rights agreement with Glencore (the "Glencore Registration Rights Agreement"). The Glencore Registration Rights Agreement provides that upon request of the holder of the Glencore Convertible Note, the Company will file with the SEC within 45 days after notice of such request, a resale registration statement covering the resale of the common shares issuable upon conversion of the Glencore Convertible Note and upon exercise of the Glencore Warrants and held by such holder. The Company is required to use commercially reasonable efforts to have such registration statement declared effective by the SEC as soon as practicable and no later than the earlier of (A) 45 days after the filing of such registration statement (or 75 days after the filing of such registration statement if the SEC notifies the Company that it will review the registration statement) or (B) 15 business days after the SEC notifies the Company in writing that it will not review the registration statement. The Company agreed to keep the registration statement (or another shelf registration statement covering the common shares issued or issuable upon

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conversion of the Glencore Convertible Note and upon exercise of the Glencore Warrants) effective until three years after the holder's receipt of the common shares issued upon conversion of the Glencore Convertible Note or upon exercise of the Glencore Warrants, as applicable.

In addition, subject to certain requirements and customary conditions, including with regard to the number of demand rights that may be exercised, the holder of the Glencore Convertible Note may demand at any time or from time to time, that the Company file a registration statement on Form F-3 (or on Form F-1 if Form F-3 is not available) to register the common shares issuable upon conversion of the Glencore Convertible Note and upon exercise of the Glencore Warrants and held by such holder. In addition, the holder of the Glencore Convertible Note may specify that such demand registration take the form of an underwritten offering, subject to limitations on the number of demands and underwritten offerings that can be requested by the holder, as specified in the Glencore Registration Rights Agreement. The holder of the Glencore Convertible Note will also have "piggy-back" registration rights, subject to certain requirements and customary conditions.

The Glencore Registration Rights Agreement also provides that the Company will pay certain expenses relating to such registrations and indemnify the holder of the Glencore Convertible Note against (or make contributions in respect of) certain liabilities that may arise under the Securities Act.

***Glencore Standstill Agreement***

On May 31, 2022, the Company, Glencore and Glencore plc (the "Glencore Parent") entered into an amended and restated standstill agreement (the "Glencore Standstill Agreement"), which restricts Glencore, the Glencore Parent and their affiliates from taking certain actions until the five years from the date of the Glencore Standstill Agreement (the "Glencore Standstill Period").

The actions that Glencore, the Glencore Parent and their affiliates are restricted from taking during the Glencore Standstill Period include, among others, (A) the acquisition of additional voting securities or of any debt, material assets or material businesses of the Company, provided that Glencore and the Glencore Parent may acquire voting securities of the Company so long as the aggregate beneficial ownership of such securities does not exceed 5.0% of the then-outstanding voting securities of the Company, (B) any tender or exchange offer, merger, business combination and certain other transactions involving the Company and its securities, (C) any solicitation of proxies or votes or other attempt to influence votes by any holder of the Company's securities and (D) formation of a "group" (as defined under the Securities Exchange Act of 1934) with respect to the Company's securities.

***Other Material Contracts***

Other material contracts of the Company are described elsewhere in this annual report or in the information incorporated by reference herein.

**D. Exchange Controls** 

There is no law, governmental decree or regulation in Canada that restricts the export or import of capital, or which would affect the remittance of dividends or other payments by the Company to non-resident holders of common shares, other than withholding tax.

**E. Taxation**

**MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS** 

The following discussion is a general summary based on present law of certain U.S. federal income tax considerations relevant to U.S. Holders (as defined below) of common shares. This discussion is not a complete description of all tax considerations that may be relevant to a U.S. Holder of common shares; it is not a substitute for tax advice. It applies only to U.S. Holders that will hold common shares as capital assets and use the U.S. dollar as their functional currency. In addition, it does not describe all of the U.S. federal income tax considerations that may be relevant to a U.S. Holder in light of a U.S. Holder's particular circumstances, including U.S. Holders subject to special rules, such as banks or other financial institutions, insurance companies, tax-exempt entities, dealers, traders in securities that elect to mark-to-market, regulated investment companies, real estate investment trusts, partnerships and other pass-through entities (including S-corporations), U.S. expatriates, persons liable for the alternative minimum tax, persons that directly, indirectly or constructively, own 5% or more of the total combined voting power of the Company's stock or of the total value of the Company's equity interests, investors that will hold common shares in connection with a permanent establishment or fixed base outside the United States, or investors that will hold securities as part of a hedge, straddle, conversion, constructive sale or other integrated financial transaction. This summary also does not address U.S. federal taxes other than the income tax (such as estate or gift taxes) or U.S.

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state and local, or non-U.S. tax laws or considerations. This summary also does not address U.S. federal taxes other than the income tax (such as estate or gift taxes) or U.S. state and local, or non-U.S. tax laws or considerations. This summary also does not address the U.S. federal income tax considerations relevant to the acquisition, holding, disposition or conversion of the KSP Convertible Notes into common shares or the payment of any amount of principal or interest on the KSP Convertible Notes.

As used in this section, "U.S. Holder" means a beneficial owner of common shares that is, for U.S. federal income tax purposes: (i) a citizen or individual resident of the United States, (ii) a corporation, or other entity taxable as a corporation, created or organized in or under the laws of the United States, any state thereof or the District of Columbia, (iii) a trust subject to the control of one or more U.S. persons and the primary supervision of a U.S. court; or (iv) an estate the income of which is subject to U.S. federal income taxation regardless of its source.

The U.S. federal income tax treatment of a partner in a partnership (or other entity or arrangement treated as a partnership for U.S. federal income tax purposes) that holds common shares generally will depend on the status of the partner and the activities of the partnership. Partnerships that hold common shares should consult their own tax advisors regarding the specific U.S. federal income tax consequences to their partners of the partnership's ownership and disposition of common shares.

**U.S. federal income tax consequences of U.S. Holders of common shares**

***Taxation of dividends and other distributions on our common shares***

Subject to the discussion below under "— *Passive Foreign Investment Company rules*," the gross amount of any distribution of cash or property (other than certain pro rata distributions of ordinary stock) with respect to common shares will be included in a U.S. Holder's gross income as ordinary income from foreign sources when actually or constructively received. Dividends will not be eligible for the dividends-received deduction generally available to U.S. corporations. Dividends received from a "qualified foreign corporation" by eligible non-corporate U.S. Holders that satisfy a minimum holding period and certain other requirements generally will be taxed at the preferential rate applicable to qualified dividend income. A non-U.S. corporation is treated as a qualified foreign corporation with respect to dividends it pays on shares that are readily tradable on an established securities market in the United States. U.S. Treasury guidance indicates that shares listed on NYSE will be considered readily tradable on an established securities market in the United States. There can be no assurance, however, that common shares will be considered readily tradable on an established securities market in future years. Non-corporate U.S. holders that do not meet a minimum holding period requirement during which they are not protected from the risk of loss or that elect to treat the dividend income as "investment income" pursuant to Section 163(d)(4) of the Code (dealing with the deduction for investment interest expense) will not be eligible for the reduced rates of taxation regardless of the Company's status as a qualified foreign corporation. In addition, the rate reduction will not apply to dividends if the recipient of a dividend is obligated to make related payments with respect to the positions in substantially similar or related property. This disallowance applies even if the minimum holding period has been met. The Company will not constitute a qualified foreign corporation for purposes of these rules if it is a passive foreign investment company for the taxable year in which it pays a dividend or for the preceding taxable year. See "— *Passive Foreign Investment Company Rules*."

Dividends paid in a currency other than U.S. dollars will be included in income in a U.S. dollar amount based on the exchange rate in effect on the date of receipt, whether or not the currency is converted into U.S. dollars at that time. A U.S. Holder's tax basis in the non-U.S. currency will equal the U.S. dollar amount included in income. Any gain or loss realized on a subsequent conversion or other disposition of the non-U.S. currency for a different U.S. dollar amount generally will be U.S. source ordinary income or loss. If dividends paid in a currency other than U.S. dollars are converted into U.S. dollars on the day they are received, the U.S. Holder generally will not be required to recognize foreign currency gain or loss in respect of the dividend income.

Subject to certain conditions and limitations, withholding taxes, if any, on dividends paid by the Company may be treated as foreign taxes eligible for credit against a U.S. Holder's U.S. federal income tax liability under the U.S. foreign tax credit rules. For purposes of calculating the U.S. foreign tax credit, dividends paid on the — common shares will generally be treated as income from sources outside the United States and will generally constitute passive category income. The rules governing the U.S. foreign tax credit are complex. U.S. Holders should consult their tax advisors regarding the availability of the U.S. foreign tax credit under their particular circumstances.

Dividends received by certain non-corporate U.S. Holders generally will be includible in "net investment income" for purposes of the Medicare contribution tax.

***Taxation of dispositions of common shares***

Subject to the discussion below under "— *Passive Foreign Investment Company rules*," a U.S. Holder generally will recognize capital gain or loss on the sale or other disposition of common shares in an amount equal to the difference between the U.S. dollar value of the amount realized and the U.S. Holder's adjusted tax basis in the disposed common shares. Any gain or loss generally will be treated as arising from U.S. sources and will be long-

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term capital gain or loss if the U.S. Holder's holding period exceeds one year. Deductions for capital loss are subject to significant limitations.

It is possible that Canada may impose an income tax upon sale of common shares. Because gains generally will be treated as U.S. source gain, as a result of the U.S. foreign tax credit limitation, any Canadian income tax imposed upon capital gains in respect of common shares may not be currently creditable unless a U.S. Holder has other foreign source income for the year in the appropriate U.S. foreign tax credit limitation basket. U.S. Holders should consult their tax advisors regarding the application of Canadian taxes to a disposition of common shares and their ability to credit a Canadian tax against their U.S. federal income tax liability.

Capital gains from the sale or other disposition of common shares received by certain non-corporate U.S. Holders generally will be includible in "net investment income" for purposes of the Medicare contribution tax.

***Passive Foreign Investment Company rules***

Based on the composition of the Company's current gross assets and income and the manner in which the Company expects to operate its business in future years, the Company believes that it should not be classified as a passive foreign investment company (a "PFIC") for U.S. federal income tax purposes for its current taxable year and does not expect to be so classified in the foreseeable future. In general, a non-U.S. corporation will be a PFIC for any taxable year in which, taking into account a pro rata portion of the income and assets of 25% or more owned subsidiaries, either (i) 75% or more of its gross income is passive income, or (ii) 50% or more of the average quarterly value of its assets are assets that produce, or are held for the production of, passive income or which do not produce income. For this purpose, passive income generally includes, among other things and subject to various exceptions, interest, dividends, rents, royalties and gains from the disposition of assets that produce passive income. Whether the Company is a PFIC is a factual determination made annually, and the Company's status could change depending among other things upon changes in the composition and relative value of its gross receipts and assets. Because the market value of the Company's assets (including for this purpose goodwill) may be measured in large part by the market price of the common shares, which is likely to fluctuate, no assurance can be given that the Company will not be a PFIC in the current year or in any future taxable year.

If the Company were a PFIC for any taxable year in which a U.S. Holder holds common shares, such U.S. Holder would be subject to additional taxes on any excess distributions and any gain realized from the sale or other taxable disposition of common shares (including certain pledges) regardless of whether the Company continues to be a PFIC. A U.S. Holder will have an excess distribution to the extent that distributions on common shares during a taxable year exceed 125% of the average amount received during the three preceding taxable years (or, if shorter, the US Holder's holding period). To compute the tax on excess distributions or any gain, (i) the excess distribution or gain is allocated ratably over the U.S. Holder's holding period, (ii) the amount allocated to the current taxable year and any year before the Company became a PFIC is taxed as ordinary income in the current year and (iii) the amount allocated to other taxable years is taxed at the highest applicable marginal rate in effect for each year and an interest charge is imposed to recover the deemed benefit from the deferred payment of the tax attributable to each year.

If, as is not expected to be the case, the Company were a PFIC for any taxable year in which a U.S. Holder holds common shares, a U.S. Holder may be able to avoid some of the adverse impacts of the PFIC rules described above by electing to mark common shares to market annually. The election is available only if the common shares are considered "marketable stock," which generally includes stock that is regularly traded in more than de minimis quantities on a qualifying exchange (which includes NYSE). If a U.S. Holder makes the mark-to-market election, any gain from marking common shares to market or from disposing of them would be ordinary income. Any loss from marking common shares to market would be recognized only to the extent of unreversed gains previously included in income. Loss from marking common shares to market would be ordinary, but loss on disposing of them would be capital loss except to the extent of mark-to-market gains previously included in income. No assurance can be given that the common shares will be traded in sufficient frequency and quantity to be considered "marketable stock." A valid mark-to-market election cannot be revoked without the consent of the IRS unless the common shares cease to be marketable stock.

As an alternative, if the Company were to be treated as a PFIC, a U.S. Holder may avoid the excess distribution rules described above in respect of common shares by electing to treat the Company (for the first taxable year in which the U.S. Holder owns any common shares) and any lower-tier PFIC (for the first taxable year in which the U.S. Holder is treated as owning an equity interest in such lower-tier PFIC) as a "qualified electing fund" (a "QEF"). If a U.S. Holder makes an effective QEF election with respect to the Company (and any lower-tier PFIC), the U.S. Holder will be required to include in gross income each year, whether or not the Company makes distributions, as capital gains, its pro rata share of the Company's (and such lower-tier PFIC's) net capital gains and, as ordinary income, its pro rata share of the Company's (and such lower-tier PFIC's) net earnings in excess of its net capital gains. U.S. Holders can make a QEF election only if the Company (and each lower-tier PFIC) provides certain information, including the amount of its ordinary earnings and net capital gains determined under U.S. tax principles. The Company has not determined whether it will provide U.S. Holders with this information if it determines that it is a PFIC.

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U.S. Holders of common shares should consult their own tax advisors concerning the Company's possible PFIC status and the consequences to them if the Company were classified as a PFIC for any taxable year.

**Information Reporting and Backup Withholding**

Dividends on common shares and proceeds from the sale or other disposition of common shares may be reported to the IRS unless the holder is a corporation or otherwise establishes a basis for exemption. Backup withholding tax may apply to amounts subject to reporting. Any amount withheld may be credited against the holder's U.S. federal income tax liability subject to certain rules and limitations. U.S. Holders should consult with their own tax advisers regarding the application of the U.S. information reporting and backup withholding rules.

Certain non-corporate U.S. Holders are required to report information with respect to common shares not held through an account with a domestic financial institution to the IRS. U.S. Holders that fail to report required information could become subject to substantial penalties. Prospective investors are encouraged to consult with their own tax advisors about these and any other reporting obligations arising from their investment in common shares.

**THE DISCUSSION ABOVE IS A GENERAL SUMMARY. IT DOES NOT COVER ALL TAX MATTERS THAT MAY BE OF IMPORTANCE TO A PARTICULAR U.S. HOLDER. EACH U.S. HOLDER OF COMMON SHARES IS URGED TO CONSULT ITS OWN TAX ADVISOR ABOUT THE TAX CONSEQUENCES TO IT OF OWNING AND DISPOSING OF COMMON SHARES IN LIGHT OF THE U.S. HOLDER'S OWN CIRCUMSTANCES.**

**CERTAIN CANADIAN FEDERAL INCOME TAX CONSIDERATIONS** 

The following summary describes the principal Canadian federal income tax considerations under the *Income Tax Act* (Canada) and the regulations thereunder (collectively, the "**Tax Act**"), as of the date hereof, that are generally applicable to an investor who acquires as beneficial owner common shares and who, at all relevant times, for the purposes of the Tax Act and any applicable tax treaty or convention: (i) deals at arm's length with the Company and is not affiliated with the Company; (ii) is not and is not deemed to be resident in Canada; (iii) holds the common shares as capital property; and (iv) does not use or hold, and is not deemed to use or hold, the common shares in connection with, or in the course of carrying on, a business in Canada (a "**Non-Canadian Holder**").

Special rules, which are not discussed in this summary, may apply to a Non-Canadian Holder that is an insurer carrying on business in Canada and elsewhere. Such Non-Canadian Holders should consult their own tax advisors.

This summary is based upon the current provisions of the Tax Act in force as of the date hereof and an understanding of the current administrative policies published in writing by the Canada Revenue Agency ("**CRA**") prior to the date hereof. This summary also takes into account all specific proposals to amend the Tax Act publicly announced by or on behalf of the Minister of Finance (Canada) prior to the date hereof (the "**Proposed Amendments**"), and assumes that all Proposed Amendments will be enacted in the form proposed. However, no assurances can be given that the Proposed Amendments will be enacted as proposed, or at all. Except for the Proposed Amendments, this summary does not take into account or anticipate any changes in law or administrative policies, whether by legislative, regulatory, administrative or judicial action or decision, nor does it take into account other federal or any provincial, territorial or foreign tax legislation or considerations, which may be different from those discussed in this summary.

**This summary is of a general nature only, is not exhaustive of all possible Canadian federal income tax considerations and is not intended to be, nor should it be construed to be, legal or tax advice to any particular Non-Canadian Holder. Accordingly, Non-Canadian Holders should consult their own tax advisors with respect to their particular circumstances.**

*Currency*

For the purposes of the Tax Act, all amounts expressed in a currency other than Canadian dollars relating to the acquisition, holding or disposition of a common share, including dividends, adjusted cost base and proceeds of disposition, must be determined in Canadian dollars using the relevant rate of exchange required under the Tax Act.

*Dividends*

Dividends paid or credited, or deemed to be paid or credited, on common shares to a Non-Canadian Holder generally will be subject to Canadian withholding tax. Under the Tax Act, the rate of withholding tax is 25% of the gross amount of such dividends, which rate may be subject to reduction under the provisions of an applicable income tax treaty or convention. A Non-Canadian Holder who is resident in the United States for the purposes of the Canada-United States Tax Convention, fully entitled to the benefits of such convention and the beneficial owner of the dividends, will generally be subject to Canadian withholding tax at a rate of 15% of the gross amount of such dividends.

*Disposition of common shares*

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A Non-Canadian Holder who disposes or is deemed to dispose of a common share in a taxation year will not be subject to tax in Canada, unless the common share is, or is deemed to be, ''taxable Canadian property'' to the Non-Canadian Holder at the time of disposition and the Non-Canadian Holder is not entitled to relief under an applicable income tax treaty or convention between Canada and the country in which the Non-Canadian Holder is resident.

Provided the common shares are listed on a "designated stock exchange", as defined in the Tax Act (which currently includes the NYSE), at the time of disposition, the common shares generally will not constitute taxable Canadian property of a Non-Canadian Holder at that time, unless at any time during the 60 month period immediately preceding the disposition the following two conditions are met concurrently: (i) one or any combination of (a) the Non-Canadian Holder, (b) persons with whom the Non-Canadian Holder did not deal at arm's length, and (c) partnerships in which the Non-Canadian Holder or a person described in (b) holds a membership interest directly or indirectly through one or more partnerships owned 25% or more of the issued shares of any class or series of shares of the Company; and (ii) more than 50% of the fair market value of the common shares was derived directly or indirectly from one or any combination of (a) real or immovable property situated in Canada, (b) "Canadian resource property" (as defined in the Tax Act), (c) "timber resource property" (as defined in the Tax Act), or (d) an option in respect of, an interest in, or for civil law rights in, property described in any of (a) through (c), whether or not such property exists.

Notwithstanding the foregoing, a common share may otherwise be deemed to be taxable Canadian property to a Non-Canadian Holder for purposes of the Tax Act in certain limited circumstances.

Non-Canadian Holders who dispose of common shares that are taxable Canadian property should consult their own tax advisors with respect to the requirement to file a Canadian income tax return in respect of the disposition in their particular circumstances.

**F. Dividends and Paying Agents**

Not applicable.

**G. Statement by Experts**

Not applicable.

**H. Documents on Display**

Documents concerning the Company referred to in this annual report may be inspected at the principal executive offices of the Company at 207 Queen's Quay West, Suite 590, Toronto, ON, M5J 1A7, Canada or as otherwise set out in this annual report.

The Company is subject to certain of the informational filing requirements of the Exchange Act. Since the Company is a "foreign private issuer", it is exempt from the rules and regulations under the Exchange Act prescribing the furnishing and content of proxy statements, and the officers, directors and principal shareholders of the Company are exempt from the reporting and "short-swing" profit recovery provisions contained in Section 16 of the Exchange Act with respect to their purchase and sale of common shares. In addition, the Company is not required to file reports and financial statements with the SEC as frequently or as promptly as U.S. public companies whose securities are registered under the Exchange Act. However, the Company is required to file with the SEC an Annual Report on Form 20-F containing financial statements audited by an independent accounting firm. The SEC also maintains a website at http://www.sec.gov that contains reports and other information that the Company files with or furnishes electronically to the SEC.

**I. Subsidiary Information**

Not applicable.

**ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS**

Information regarding quantitative and qualitative disclosure about market risk is included in the section entitled "Item 5. Operating and Financial Review and Prospects—Quantitative and Qualitative Disclosures About Market Risk."

**ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES**

Not applicable.

**PART II**

**ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES** 

None.

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**ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS** 

None, except as described elsewhere in this annual report or in the information incorporated by reference herein.

**ITEM 15. CONTROL AND PROCEDURES** 

**A. Disclosure Controls and Procedures** 

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act and Canadian Securities Administrators National Instrument 52-109, *Certification of Disclosure in Issuers' Annual and Interim Filings*) as of the end of the period covered by this annual report. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of October 31, 2022, our disclosure controls and procedures were not effective, due to the material weaknesses in the Company's internal control over financial reporting described below.

In addition, our management, with the participation of our Chief Executive Officer and Chief Financial Officer, have evaluated the effectiveness of our disclosure controls and procedures (as defined above) as of October 31, 2021 and on a quarterly basis thereafter. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of those dates, our disclosure controls and procedures were not effective, due to the material weaknesses in the Company's internal control over financial reporting which were disclosed as of those dates. On January 27, 2023, the Company filed with the SEC an amendment to its previously filed Annual Report on Form 20-F for the year ended October 31, 2021 to correct a prior statement that its disclosure controls and procedures were effective on such date.

**B. Management's Annual Report on Internal Control over Financial Reporting** 

Management is responsible for establishing, maintaining and assessing the effectiveness of adequate internal control over financial reporting ("ICFR") as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act and Canadian Securities Administrators National Instrument 52-109, *Certification of Disclosure in Issuers' Annual and Interim Filings*. The Company's ICFR is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS.

Prior to August 10, 2021, Li-Cycle was a private company and addressed internal control over financial reporting with internal accounting and financial reporting personnel and other resources. In the course of preparing for the Business Combination, Li-Cycle identified material weaknesses in its internal control over financial reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of Li-Cycle's annual or interim condensed consolidated interim financial statements may not be prevented or detected on a timely basis.

As of October 31, 2022, management assessed the effectiveness of the Company's ICFR based on the criteria established in Internal Control - Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (the "COSO 2013 Framework"). Based on this assessment, management identified the following material weaknesses as of October 31, 2022:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an ineffective control environment, resulting from an insufficient number of experienced personnel with the appropriate technical training to allow for a detailed review of transactions that would identify errors in a timely manner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an ineffective risk assessment process to identify all relevant risks of material misstatement and to evaluate the implications of relevant risks on its internal control over financial reporting, resulting from the insufficient number of experienced personnel described above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an ineffective information and communication process to ensure the relevance, timeliness and quality of information used in control activities, resulting from: (i) insufficient communication of internal control information, including objectives and responsibilities; and (ii) ineffective general IT controls and controls over information from a service organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an ineffective monitoring process, resulting from the evaluation and communication of internal control deficiencies not being performed in a timely manner; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ineffective control activities related to the design, implementation and operation of process level controls and financial statement close controls, as a consequence of the above, which had a pervasive impact on the Company's internal control over financial reporting.

As a result, management has concluded that the Company did not maintain effective internal control over financial reporting as of October 31, 2022, based on the COSO 2013 Framework described above. These material weaknesses create a reasonable possibility that a material misstatement to the consolidated financial statements will not be prevented or detected on a timely basis.

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KPMG LLP, our independent registered public accounting firm, has issued an attestation report on the Company's internal control over financial reporting for the year ended October 31, 2022, which report expresses an adverse opinion on the effectiveness of internal control over financial reporting.

**C. Attestation Report of Registered Public Accounting Firm** 

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and Board of Directors

Li-Cycle Holdings Corp.:

*Opinion on Internal Control Over Financial Reporting* 

We have audited Li-Cycle Holdings Corp.'s and subsidiaries' (the Company) internal control over financial reporting as of October 31, 2022, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (the "COSO 2013 Framework"). In our opinion, because of the effect of the material weaknesses, described below, on the achievement of the objectives of the control criteria, the Company has not maintained effective internal control over financial reporting as of October 31, 2022, based on criteria established in the COSO 2013 Framework.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) ("PCAOB"), the consolidated statement of financial position of the Company as of October 31, 2022, the related consolidated statements of comprehensive loss, changes in equity, and cash flows for the year then ended, and the related notes (collectively, the "consolidated financial statements"), and our report dated February 6, 2023 expressed an unqualified opinion on those consolidated financial statements.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis. Material weaknesses related to the following have been identified and included in management's assessment:

• an ineffective control environment, resulting from an insufficient number of experienced personnel with the appropriate technical training to allow for a detailed review of transactions that would identify errors in a timely manner;

• an ineffective risk assessment process to identify all relevant risks of material misstatement and to evaluate the implications of relevant risks on its internal control over financial reporting, resulting from the insufficient number of experienced personnel described above;

• an ineffective information and communication process to ensure the relevance, timeliness and quality of information used in control activities, resulting from: (i) insufficient communication of internal control information, including objectives and responsibilities; and (ii) ineffective general IT controls and controls over information from a service organization;

• an ineffective monitoring process, resulting from the evaluation and communication of internal control deficiencies not being performed in a timely manner; and

• ineffective control activities related to the design, implementation and operation of process level controls and financial statement close controls, as a consequence of the above, which had a pervasive impact on the Company's internal control over financial reporting.

The material weaknesses were considered in determining the nature, timing, and extent of audit tests applied in our audit of the consolidated financial statements, and this report does not affect our report on those consolidated financial statements.

*Basis for Opinion* 

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying "Management's Report on Internal Control Over Financial Reporting" . Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

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We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

*Definition and Limitations of Internal Control Over Financial Reporting* 

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that: (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ KPMG LLP

Vaughan, Canada

February 6, 2023

☒

**D. Changes in Internal Control Over Financial Reporting** 

***Plan for Remediation of Material Weaknesses***

We have taken steps to address these material weaknesses and expect to continue to implement the remediation plan, which we believe will address the underlying causes. We have engaged external advisors with subject matter expertise and additional resources to provide assistance with all elements of the internal control over financial reporting program, including: performance of a risk assessment; documentation of process flows; design and remediation of control deficiencies; and evaluation of the design and operational effectiveness of our internal controls. We also expect to engage additional external advisors to provide assistance in the areas of information technology and financial accounting. We continue to monitor the longer-term resource needs of our various financial functions, as we grow our capability, capacity, and competency. We have made some improvements to our various IT platforms, including our enterprise resource planning ("ERP") system, and work on further upgrades is ongoing with the intent to further improve and enhance system functionality. Although we have strengthened our controls in these areas, we will not be able to conclude that we have remediated the material weaknesses until all relevant controls are fully implemented and have operated effectively for a sufficient period of time. We will continue to provide updates as we progress through the remediation plan.

Except for the steps taken to address the material weaknesses in the Company's ICFR as described above, no changes in the Company's ICFR occurred during the three months and year ended October 31, 2022 that have materially affected, or are reasonably likely to materially affect, the Company's ICFR.

**ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT**

Our board of directors has determined that Scott Prochazka, the chair of the Audit Committee of our board of directors, is an "Audit Committee financial expert" as defined by Item 16A of Form 20-F. All members of the Audit Committee are independent directors as required by applicable NYSE listing rules, SEC rules, and NI 52-110.

**ITEM 16B. CODE OF ETHICS**

The board has adopted a Code of Conduct applicable to all of our directors, officers, employees and agents, including our President and CEO, Executive Chair, Chief Financial Officer, controller or principal accounting officer, or other persons performing similar functions, which is a "code of ethics" as defined in Item 16B of Form 20-F promulgated by the SEC and which is a "code" under NI 58-101. The Code of Conduct sets out the Company's

------

fundamental values and standards of behavior that are expected from our directors, officers and employees with respect to all aspects of our business. The objective of the Code of Conduct is to provide guidelines for maintaining the Company's integrity, reputation and honesty with a goal of honoring others' trust in us at all times.

The full text of the Code of Conduct is posted our website at www.li-cycle.com. Information contained on, or that can be accessed through, our website does not constitute a part of this annual report and is not incorporated by reference herein. If we make any amendment to the Code of Conduct or grant any waivers, including any implicit waiver, from a provision of the code of ethics, we will disclose the nature of such amendment or waiver on our website to the extent required by the rules and regulations of the SEC and the Canadian Securities Administrators. Under Item 16B of the SEC's Form 20-F, if a waiver or amendment of the Code of Conduct applies to our principal executive officer, principal financial officer, principal accounting officer or controller and relates to standards promoting any of the values described in Item 16B(b) of Form 20-F, we will disclose such waiver or amendment on our website in accordance with the requirements of Instruction 4 to such Item 16B.

**ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES** 

The following table represents aggregate fees billed to us for professional services rendered by our independent registered public accounting firms (KPMG LLP (PCAOB ID No. 85) for the fiscal year ended October 31, 2022 and Deloitte LLP (PCAOB ID No. 1208) for the fiscal year ended October 31, 2021) for the last two fiscal years, including the fees billed for professional services rendered to Li-Cycle for each of the two years ended October 31, 2022 and 2021. The fees were billed in Canadian dollars and were converted to U.S. dollars at average exchange rates of CA$1.00=US$0.7650 and CA$1.00=US$0.7955 for the fiscal years ended October 31, 2022 and 2021, respectively.

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| | | |
|:---|:---|:---|
| | ***For the Year Ended October 31,*** | ***For the Year Ended October 31,*** |
|  | ***2021*** | ***2022*** |
|  | ***($)*** | ***($)*** |
| *Audit Fees* | $2019224 | $877667.79 |
| *Audit-Related Fees* | - | - |
| *Tax Fees* | $646683 | - |
| *All Other Fees* | - | - |
| *Total* | $2665927 | $877667.79  |

---

**Audit Fees**

Audit fees consist of audit services billed related to the audit and interim reviews of financial statements; and services related to comfort letters, consents and other services related to Security and Exchange Commission ("SEC") matters.

**Audit-Related Fees**

None.

**Tax Fees**

Tax fees consist of tax compliance and tax planning advice. Tax compliance services consisted of Federal, state and local income tax return assistance and Transfer pricing documentation. Tax planning services included advice related to structuring certain proposed mergers, acquisitions and disposals and advice related to the alteration of employee benefit plans.

**All Other Fees**

None.

**Audit Committee Pre-Approval**

Our Audit Committee pre-approves auditing services and permitted non-audit services to be performed for us by our independent auditor, including the fees and terms thereof (subject to certain de minimis exceptions provided by law or regulation). Audit Committee pre-approval of audit and non-audit services is not required if the engagement for the services is entered into pursuant to pre-approval policies and procedures established by the Audit Committee. There were no services approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

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**ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES** 

We do not rely on any exemptions from the independence standards for our Audit Committee.

**ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS.**

None

**ITEM 16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT** 

The disclosure called for by this Item 16F was previously reported, as that term is defined in Rule 12b-2 under the Exchange Act, in "Item 16.F. Change in Registrant's Certifying Accountant" of our annual report on Form 20-F for the fiscal year ended October 31, 2021 filed with the SEC on January 31, 2022.

**ITEM 16G. CORPORATE GOVERNANCE** 

We are a "foreign private issuer" under applicable U.S. federal securities laws. As a result, we are permitted to follow certain corporate governance rules that conform to Canada requirements in lieu of certain NYSE corporate governance rules. While we currently comply with the corporate governance requirements applicable to U.S. domestic companies listed on the NYSE, we may use foreign private issuer exemptions with respect to some of the NYSE listing requirements from time to time. Following Canadian governance practices, as opposed to the requirements that would otherwise apply to a company listed on the NYSE, may provide less protection than is accorded to investors under the NYSE listing requirements applicable to U.S. domestic issuers.

**ITEM 16H. MINE SAFETY DISCLOSURE** 

Not applicable.

**PART III**

**ITEM 17. FINANCIAL STATEMENTS**

See Item 18.

**ITEM 18. FINANCIAL STATEMENTS**

The financial statements of the Company are included in this Annual Report in Exhibits 99.1.

**ITEM 19. EXHIBITS**

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit No.** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Description** |
| &nbsp;&nbsp;1.1 | <u>[Amended and Restated Articles of Incorporation of the Company (incorporated by reference to Exhibit 1.2 to the Company's shell company report on Form 20-F (File No. 001-40733) filed with the SEC on August 16, 2021).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312521248001/d127176dex12.htm)</u> |
| &nbsp;&nbsp;1.2 | <u>[Amended and Restated By-laws of the Company (incorporated by reference to Exhibit 1.2 to the Company's shell company report on Form 20-F (File No. 001-40733) filed with the SEC on August 16, 2021).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312521098780/d317379df4.htm#toc317379_105)</u> |
| &nbsp;&nbsp;2.1 | <u>[Specimen Common Share Certificate of the Company (incorporated by reference to Exhibit 4.1 to the Company's Registration Statement on Form F-4 (File No. 333-254843) filed with the SEC on July 6, 2021).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312521160481/d317379dex41.htm)</u> |
| &nbsp;&nbsp;2.2 | <u>[Description of Securities.](a22-descriptionofsecurities.htm)</u> |
| 4.1†† | <u>[Business Combination Agreement, dated as of February 15, 2021, by and among Peridot Acquisition Corp., Li-Cycle Corp. and the Company (incorporated by reference to Exhibit 2.1 to the Company's Registration Statement on Form F-4 (File No. 333-254843) filed with the SEC on July 6, 2021).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312521208033/d317379df4a.htm#toc317379_101)</u> |

---

------

---

| | |
|:---|:---|
| &nbsp;&nbsp;4.2 | <u>[Form of Subscription Agreement (Institutional Investor Form) (incorporated by reference to Exhibit 10.1 to the Company's Registration Statement on Form F-4 (File No. 333-254843) filed with the SEC on July 6, 2021).\*\*](https://www.sec.gov/Archives/edgar/data/1821317/000119312521043314/d132687dex101.htm)</u> |
| &nbsp;&nbsp;4.3 | <u>[Form of Subscription Agreement (Director Form) (incorporated by reference to Exhibit 10.2 to the Company's Registration Statement on Form F-4 (File No. 333-254843) filed with the SEC on July 6, 2021).\*\*](https://www.sec.gov/Archives/edgar/data/1821317/000119312521043314/d132687dex102.htm)</u> |
| &nbsp;&nbsp;4.4 | <u>[Sponsor Letter Agreement, dated as of February 15, 2021, among Peridot Acquisition Corp.,](https://www.sec.gov/Archives/edgar/data/1828811/000119312521208033/d317379df4a.htm#toc317379_110)[Li-Cycle Corp., the Company, Peridot Acquisition Sponsor, LLC and the other individuals party](https://www.sec.gov/Archives/edgar/data/1828811/000119312521208033/d317379df4a.htm#toc317379_110)[thereto (incorporated by reference to Exhibit 10.3 to the Company's Registration Statement on](https://www.sec.gov/Archives/edgar/data/1828811/000119312521208033/d317379df4a.htm#toc317379_110)[Form F-4 (File No. 333-254843) filed with the SEC on July 6, 2021)\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312521208033/d317379df4a.htm#toc317379_110)</u> |
| &nbsp;&nbsp;4.5 | <u>[Form of Transaction Support Agreement, dated as of February 15, 2021, among Peridot Acquisition Corp. and the Li-Cycle shareholder party thereto (incorporated by reference to Exhibit 10.4 to the Company's Registration Statement on Form F-4 (File No. 333-254843) filed with the SEC on July 6, 2021).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312521098780/d317379df4.htm#anni)</u> |
| &nbsp;&nbsp;4.6 | <u>[Li-Cycle Holdings Corp. 2021 Incentive Award Plan (incorporated by reference to Exhibit 4.5 to the Company's shell company report on Form 20-F (File No. 001-40733) filed with the SEC on August 16, 2021).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312521248001/d127176dex45.htm)</u> |
| 4.7† | <u>[Li-Cycle Holdings Corp. 2021 Incentive Award Plan Sub-Plan for Canadian Participants (incorporated by reference to Exhibit 99.4 to the Company's Registration Statement on Form S-8 (File No. 333-261568) filed with the SEC on December 9, 2021).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312521352733/d211201dex994.htm)</u> |
| 4.8† | <u>[Form of Li-Cycle Holdings Corp. 2021 Employee Share Purchase Plan (incorporated by reference to Exhibit 4.8 to the Company's shell company report on Form 20-F (File No. 001-40733) filed with the SEC on August 16, 2021).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312521098780/d317379df4.htm#anng)</u> |
| 4.9† | <u>[Form of Option Grant Notice and Agreement under the Li-Cycle Holdings Corp. 2021 Incentive Award Plan](a49-formofoptiongrantnotic.htm)</u> |
| 4.10† | <u>[Form of RSU Award Grant Notice and Agreement under the Li-Cycle Holdings Corp. 2021 Incentive Award Plan](a410-formofrsuawardgrantno.htm)</u> |
| 4.11††† | <u>[Refined Products — Amended and Restated Marketing, Logistics and Working Capital Agreement, dated December 15, 2021, between Traxys North America LLC and Li-Cycle Americas Corp (incorporated by reference to Exhibit 4.11 to the Company's annual report on Form 20-F (File No. 001-40733) filed with the SEC on January 31, 2022).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000162828022001515/a411refinedproductsamended.htm)</u> |
| 4.12††† | <u>[Black Mass — Amended and Restated Marketing, Logistics and Working Capital Agreement, dated December 15, 2021, between Traxys North America LLC and Li-Cycle Americas Corp (incorporated by reference to Exhibit 4.12 to the Company's annual report on Form 20-F (File No. 001-40733) filed with the SEC on January 31, 2022).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000162828022001515/a412blackmassamendedandres.htm)</u> |
| &nbsp;&nbsp;4.13 | <u>[Letter Agreement, dated December 15, 2021, between Traxys North America LLC and Li-Cycle Holdings Corp (incorporated by reference to Exhibit 4.13 to the Company's annual report on Form 20-F (File No. 001-40733) filed with the on SEC on January 31, 2022).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000162828022001515/a413letteragreementdatedde.htm)</u> |

---

------

4.14 <u>[Ground Lease Agreement by and between Li-Cycle North America Hub, Inc. and Ridgeway Properties I, LLC dated August 3, 2021 and Guaranty of Li-Cycle Holdings Corp. guaranteeing the obligations of Li-Cycle North America Hub, Inc. thereunder (incorporated by reference to Exhibit 10.1 to the Company's Form 6-K filed with the SEC on August 12, 2021).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312521243725/d135924dex101.htm)</u>

4.15 <u>[Amendment to Ground Lease Agreement to Ground Lease Agreement dated June 9, 2022 by and between Li-Cycle North America Hub, Inc. and Ridgeway Properties I, LLC.](a415-licyclexfirstamendmen.htm)</u>

4.16 <u>[Investor and Registration Rights Agreement among the Company and the parties named therein (incorporated by reference to Exhibit 4.9 to the Company's shell company report on Form 20-F (File No. 001-40733) filed with the SEC on August 16, 2021).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312521248001/d127176dex49.htm)</u>

4.17 <u>[Convertible Note, dated September 29, 2021, issued by Li-Cycle Holdings Corp. to Spring Creek Capital, LLC (incorporated by reference to Exhibit 10.27 to the Company's Registration Statement on Form F-1 (File No. 333-259895) filed with the SEC on September 30, 2021).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312521286989/d206157dex1027.htm)</u>

4.18 <u>[Note Purchase Agreement, dated September 29, 2021, by and between Li-Cycle Holdings Corp. and Spring Creek Capital, LLC (incorporated by reference to Exhibit 10.28 to the Company's Registration Statement on Form F-1 (File No. 333-259895) filed with the SEC on September 30, 2021).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312521286989/d206157dex1028.htm)</u>

4.19 <u>[Standstill Agreement, dated September 29, 2021, by and between Li-Cycle Holdings Corp. and Koch Strategic Platforms, LLC and Spring Creek Capital, LLC (incorporated by reference to Exhibit 10.29 to the Company's Registration Statement on Form F-1 (File No. 333-259895) filed with the SEC on September 30, 2021).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312521286989/d206157dex1029.htm)</u>

4.20 <u>[Li-Cycle Corp. Amended and Restated Stock Option Plan (incorporated by reference to Exhibit 99.2 to the Company's Registration Statement on Form S-8 (File No. 333-261568) filed with the SEC on December 9, 2021).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312521352733/d211201dex992.htm)</u>

4.21 <u>[Li-Cycle Corp. Amended and Restated Long-Term Incentive Plan (incorporated by reference to Exhibit 99.3 to the Company's Registration Statement on Form S-8 (File No. 333-261568) filed with the SEC on December 9, 2021).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312521352733/d211201dex993.htm)</u>

4.22 <u>[Standstill Agreement, dated December 13, 2021, by and between Li-Cycle Holdings Corp., LG Energy Solution, Ltd. and LG Chem, Ltd. (incorporated by reference to Exhibit 10.3 to the Company's Form 6-K (File No. 001-40733) filed with the SEC on December 14, 2021).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312521356136/d124305dex103.htm)</u>

4.23 <u>[Amended and Restated Subscription Agreement, dated April 21, 2022, by and between Li-Cycle Holdings Corp. and LG Energy Solution, Ltd. (incorporated by reference to Exhibit 10.1 to the Company's Form 6-K (File No. 001-40733) filed with the SEC on April 22, 2022).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312522113648/d343067dex101.htm)</u>

4.24 <u>[Amended and Restated Subscription Agreement, dated April 21, 2022, by and between Li-Cycle Holdings Corp. and LG Chem, Ltd. (incorporated by reference to Exhibit 10.2 to the Company's Form 6-K (File No. 001-40733) filed with the SEC on April 22, 2022).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312522113648/d343067dex102.htm)</u>

------

4.25 <u>[Note Purchase Agreement, dated May 5, 2022, by and between Li-Cycle Holdings Corp. and Glencore Ltd. (incorporated by reference to Exhibit 10.1 to the Company's Form 6-K (File No. 001-40733) filed with the SEC on May 5, 2022).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312522142392/d292534dex101.htm)</u>

4.26 <u>[Registration Rights Agreement, dated May 31, 2022, by and between Li-Cycle Holdings Corp. and Glencore Ltd. (incorporated by reference to Exhibit 10.1 to the Company's Form 6-K (File No. 001-40733) filed with the SEC on June 1, 2022).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312522165457/d362183dex101.htm)</u>

4.27 <u>[Amended and Restated Standstill Agreement, dated May 31, 2022, by and between Li-Cycle Holdings Corp. and Glencore Ltd. (incorporated by reference to Exhibit 10.2 to the Company's Form 6-K (File No. 001-40733) filed with the SEC on June 1, 2022).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312522165457/d362183dex102.htm)</u>

4.28 <u>[Master Commercial Agreement, dated May 31, 2022, by and between Li-Cycle Holdings Corp. and Glencore Ltd. (incorporated by reference to Exhibit 10.3 to the Company's Form 6-K (File No. 001-40733) filed with the SEC on June 1, 2022).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312522165457/d362183dex103.htm)</u>

4.29 <u>[Amended & Restated Global Feed Sourcing Agreement, dated May 31, 2022, by and between Glencore Ltd. and Li-Cycle Holdings Corp. (incorporated by reference to Exhibit 10.4 to the Company's Form 6-K (File No. 001-40733) filed with the SEC on June 1, 2022).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312522165457/d362183dex104.htm)</u>

4.30 <u>[Black Mass Sourcing Agreement, dated May 31, 2022, by and among Glencore Ltd., Li-Cycle Holdings Corp., Li-Cycle Americas Inc., Li-Cycle Europe AG and Li-Cycle APAC Pte Ltd. (incorporated by reference to Exhibit 10.5 to the Company's Form 6-K (File No. 001-40733) filed with the SEC on June 1, 2022).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312522165457/d362183dex105.htm)</u>

4.31 <u>[Black Mass Offtake Agreement, dated May 31, 2022, by and among Glencore Ltd., Li-Cycle Holdings Corp., Li-Cycle Americas Corp., Li-Cycle Europe AG and Li-Cycle APAC Pte Ltd. (incorporated by reference to Exhibit 10.6 to the Company's Form 6-K (File No. 001-40733) filed with the SEC on June 1, 2022).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312522165457/d362183dex106.htm)</u>

4.32 <u>[End Products Off](https://www.sec.gov/Archives/edgar/data/1828811/000119312522165457/d362183dex107.htm) [-](https://www.sec.gov/Archives/edgar/data/1828811/000119312522165457/d362183dex107.htm) [take Agreement, dated May 31, 2022, by and among Glencore Ltd., Li-Cycle Holdings Corp., Li-Cycle Americas Corp., Li-Cycle Europe AG and Li-Cycle APAC Pte Ltd. (incorporated by reference to Exhibit 10.7 to the Company's Form 6-K (File No. 001-40733) filed with the SEC on June 1, 2022).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312522165457/d362183dex107.htm)</u>

4.33 <u>[By-Products Off](https://www.sec.gov/Archives/edgar/data/1828811/000119312522165457/d362183dex108.htm) [-](https://www.sec.gov/Archives/edgar/data/1828811/000119312522165457/d362183dex108.htm) [take Agreement, dated May 31, 2022, by and among Glencore Ltd., Li-Cycle Holdings Corp., Li-Cycle Americas Corp., Li-Cycle Europe AG and Li-Cycle APAC Pte Ltd. (incorporated by reference to Exhibit 10.8 to the Company's Form 6-K (File No. 001-40733) filed with the SEC on June 1, 2022).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312522165457/d362183dex108.htm)</u>

4.34 <u>[Amendment to By-Products Off](a434-no1amendmenttoglencor.htm) [-](a434-no1amendmenttoglencor.htm) [take Agreement, dated October 24, 2022, by and among Glencore Ltd., Li-Cycle Holdings Corp., Li-Cycle Americas Corp., Li-Cycle Europe AG and Li-Cycle APAC Pte Ltd.](a434-no1amendmenttoglencor.htm)</u>

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| | |
|:---|:---|
| &nbsp;&nbsp;4.35 | <u>[Sulfuric Acid Supply Agreement, dated May 31, 2022, by and among Glencore Ltd., NorFalco LLC, NorFalco Sales, a division of Glencore Canada Corporation, Li-Cycle Holdings Corp. and Li-Cycle North America Hub, Inc. (incorporated by reference to Exhibit 10.9 to the Company's Form 6-K (File No. 001-40733) filed with the SEC on June 1, 2022).\*\*](https://www.sec.gov/Archives/edgar/data/1828811/000119312522165457/d362183dex109.htm)</u> |
| &nbsp;&nbsp;4.36 | <u>[Sub Lease Agreement by and between Li-Cycle North America Hub, Inc. and Pike Conductor DEV 1, LLC dated as of January 12, 2023 and Guaranty of Li-Cycle Holdings Corp. guaranteeing the obligations of Li-Cycle North America Hub, Inc. thereunder.](a436-hubwarehousesubleasea.htm)</u> |
| &nbsp;&nbsp;8.1 | <u>[List of Subsidiaries of the Company](a81-listofsubsidiaries.htm)</u>  |
| &nbsp;&nbsp;12.1 | <u>[Certification of the Principal Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.](a121-section302ceocertific.htm)</u> |
| &nbsp;&nbsp;12.2 | <u>[Certification of the Principal Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.](a122-section302cfocertific.htm)</u> |
| &nbsp;&nbsp;13.1 | <u>[Certification of the Principal Executive Officer pursuant to 18 U.S.C. 1350.](a131-section906ceocertific.htm)</u> |
| &nbsp;&nbsp;13.2 | <u>[Certification of the Principal Financial Officer pursuant to 18 U.S.C. 1350.](a132-section906cfocertific.htm)</u> |
| &nbsp;&nbsp;15.1 | <u>[Consent of Deloitte LLP.](a151-consentofdeloittellp.htm)</u> |
| &nbsp;&nbsp;15.2 | <u>[Consent of KPMG LLP.](a15-2xconsentofkpmgllp1.htm)</u> |
| &nbsp;&nbsp;99.1 | <u>[Audited Annual Consolidated Financial Statements for the years ended October 31, 2022, 2021 and 2020 and notes thereto, together with the Report of Independent Registered Public Accounting Firm thereon.](licy-20221031_d2.htm)</u> |
| &nbsp;&nbsp;99.2 | <u>[Management's Discussion and Analysis of the Company for the years ended October 31, 2022, 2021 and 2020.](a993mdaoct312022.htm)</u> |
| &nbsp;&nbsp;101.INS | Inline XBRL Instance Document |
| &nbsp;&nbsp;101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| &nbsp;&nbsp;101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| &nbsp;&nbsp;101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| &nbsp;&nbsp;101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. |
| &nbsp;&nbsp;101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| &nbsp;&nbsp;104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

---

___________________

\*\*&nbsp;&nbsp;&nbsp;&nbsp;Previously filed.

†&nbsp;&nbsp;&nbsp;&nbsp;Indicates management contract or compensatory plan or arrangement.

††&nbsp;&nbsp;&nbsp;&nbsp;Certain of the exhibits and schedules to these exhibits have been omitted in accordance with Regulation S-K Item 601(a)(5). The registrant agrees to furnish a copy of all omitted exhibits and schedules to the SEC upon its request.

†††&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to Item 601(b)(10)(iv) of Regulation S-K, portions of this exhibit have been omitted because Li-Cycle Corp. customarily and actually treats the omitted portions as private or confidential, and such portions

------

are not material and would likely cause it competitive harm if publicly disclosed. Li-Cycle Holdings Corp. will supplementally provide an unredacted copy of this exhibit to the SEC or its staff upon request.

All schedules have been omitted because they are not required, are not applicable or the information is otherwise set forth in the financial statements or notes thereto.

SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this report on its behalf.

February 6, 2023

---

| | |
|:---|:---|
| LI-CYCLE HOLDINGS CORP. | LI-CYCLE HOLDINGS CORP. |
| By: | /s/ Ajay Kochhar |
|  | Name:&nbsp;&nbsp;&nbsp;&nbsp;Ajay Kochhar |
|  | Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer |

---

## Exhibit 2.2

**Exhibit 2.2**

**DESCRIPTION OF SECURITIES** 

**General** 

The following description of the material terms of our share capital includes a summary of certain provisions of our articles that became effective upon the closing of the Business Combination (the "articles"). This description is qualified in its entirety by reference to our articles which are incorporated by reference as exhibits to the annual report on Form 20-F of which this Exhibit 2.2 is a part.

**Share Capital** 

Our authorized share capital consists of an unlimited number of common shares and an unlimited number of preferred shares issuable in series. As of January 31, 2023, there were 176,254,266 common shares outstanding and no preferred shares outstanding.

**Common Shares** 

*Voting Rights*. Under our articles, the common shares are entitled to receive notice of, and to attend and vote at all meetings of shareholders, except meetings at which only holders of a specified class of shares are entitled to vote. Each common share entitles its holder to one vote.

*Dividend Rights*. The holders of outstanding common shares are entitled to receive dividends at such times and in such amounts and form as the board may from time to time determine, but subject to the rights of the holders of any preferred shares. The Company is permitted to pay dividends unless there are reasonable grounds for believing that: (i) the Company is, or would after such payment be, unable to pay its liabilities as they become due; or (ii) the realizable value of the Company's assets would, as a result of such payment, be less than the aggregate of its liabilities and stated capital of all classes of shares. The timing, declaration, amount and payment of any future dividends will depend on the Company's financial condition, earnings, capital requirements and debt service obligations, as well as legal requirements, industry practice and other factors that our board deems relevant.

*Preemptive Rights*. There are no pre-emptive rights relating to the common shares.

*Repurchase of Common Shares*. Under the OBCA, the Company will be entitled to purchase or otherwise acquire any of its issued shares, subject to restrictions under applicable securities laws and provided that the Company will not be permitted to make any payment to purchase or otherwise acquire any of its issued shares if there are reasonable grounds for believing that: (i) the Company is, or would after such payment be, unable to pay its liabilities as they become due; or (ii) the realizable value of the Company's assets would, as a result of such payment, be less than the aggregate of its liabilities and stated capital of all classes of shares.

*Liquidation*. Upon the dissolution, liquidation or winding up of the Company, or any other distribution of assets of the Company, among its shareholders for the purpose of winding up its affairs, subject to the rights of the holders of any outstanding series of preferred shares, the holders of common shares will be entitled to receive the remaining property and assets of the Company available for distribution to its shareholders ratably in proportion to the number of common shares held by them.

**Preferred Shares** 

The Company is authorized to issue an unlimited number of preferred shares, issuable in series. Subject to any limitations prescribed by law, including the OBCA, each series of preferred shares will consist of such number of shares and have such rights, privileges, restrictions and conditions as may be determined by the board prior to the issuance of such series. No rights, privileges, restrictions or conditions attaching to any series of preferred shares will confer upon the shares of such series a priority in respect of dividends or distribution of assets or return of capital in the event of the liquidation, dissolution or winding up of the Company over the shares of any other series of preferred shares. The preferred shares of each series will, with respect to the right of payment of dividends and the distribution of assets or return of capital in the event of liquidation, dissolution or winding up of the Company, rank on parity with the shares of every other series of preferred shares.

The issuance of preferred shares and the terms selected by the board could decrease the amount of earnings and assets available for distribution to holders of common shares or adversely affect the rights and powers, including the voting rights, of the holders of common shares without any further vote or action by the holders of common shares. The issuance of preferred shares, or the issuance of rights to purchase preferred shares, could make it more difficult for a third-party to acquire a majority of the outstanding voting shares and thereby have the effect of delaying,

------

**Exhibit 2.2**

deferring or preventing a change of control of the Company or an unsolicited acquisition proposal or of making the removal of management more difficult. Additionally, the issuance of preferred shares may have the effect of decreasing the market price of the common shares.

**Dissent Rights** 

Under the OBCA, shareholders of a corporation are entitled to exercise dissent rights in respect of certain matters and to be paid the fair value of their shares in connection therewith. The dissent right is applicable where the corporation resolves to: (i) amend its articles to add, remove or change restrictions on the issue, transfer or ownership of shares of a class or series of the shares of the corporation; (ii) amend its articles to add, remove or change any restrictions on the business it is permitted to carry on or the powers it may exercise; (iii) amalgamate with another corporation, subject to certain exceptions; (iv) be continued under the laws of another jurisdiction; or (v) sell, lease or exchange all or substantially all of its property. In addition, holders of a class or series of shares of an OBCA corporation are, in certain circumstances and, in the case of items (a), (b) and (e) below, unless the articles of the corporation provide otherwise, entitled to exercise dissent rights and be paid the fair value of their shares if the corporation resolves to amend its articles to (a) increase or decrease any maximum number of authorized shares of such class or series, or increase any maximum number of authorized shares of a class or series having rights or privileges equal or superior to shares of such class or series; (b) effect an exchange, reclassification or cancellation of the shares of such class or series; (c) add to, remove or change the rights, privileges, restrictions or conditions attached to the shares of such class or series; (d) add to the rights or privileges of any class or series of shares having rights or privileges equal or superior to the shares of such class or series; (e) create a new class or series of shares equal or superior to the shares of such class or series, except in certain circumstances; (f) make a class or series of shares having rights or privileges inferior to the shares of such class or series equal or superior to the shares of such class or series; (g) effect an exchange or create a right of exchange of the shares of another class or series into the shares of such class of series; or (h) add, remove or change restrictions on the issue, transfer or ownership of the shares of such class of series.

**Transfer of Shares** 

Subject to the rules of any stock exchange on which shares are posted or listed for trading, no transfer of a security issued by the Company will be registered except upon (i) presentation of the security certificate representing the security with an endorsement which complies with the OBCA, together with such reasonable assurance that the endorsement is genuine and effective as the directors may require, (ii) payment of all applicable taxes and fees, and (iii) compliance with the articles of the Company. If no security certificate has been issued by the Company in respect of a security issued by the Company, clause (i) above may be satisfied by presentation of a duly executed security transfer power, together with such reasonable assurance that the security transfer power is genuine and effective as the directors may require.

**Registration Rights** 

*Investor Agreement* 

On August 10, 2021, the Company, the Peridot Class B Holders and the Li-Cycle Holders (collectively for the purposes of this subsection referred to as the "Holders") entered into the Investor Agreement. The Company has granted certain registration rights to the Holders. The Company has filed with the SEC a shelf registration statement covering the resale of the common shares held by the Holders, which has been declared effective by the SEC. In addition, pursuant to the terms of the Investor Agreement and subject to certain requirements and customary conditions, including with regard to the number of demand rights that may be exercised, the Holders may demand at any time or from time to time, that the Company file a registration statement on Form F-3 (or on Form F-1 if Form F-3 is not available) to register the securities of the Company held by such Holders, and each may specify that such demand registration take the form of an underwritten offering, in each case subject to limitations on the number of demands and underwritten offerings that can be requested by each Holder, as specified in the Investor Agreement. Holders will also have "piggy-back" registration rights, subject to certain requirements and customary conditions. The Investor Agreement also provides that the Company will pay certain expenses relating to such registrations and indemnify the Holders against (or make contributions in respect of) certain liabilities that may arise under the Securities Act.

*Subscription Agreements* 

Contemporaneously with the execution of the Business Combination Agreement, Subscription Agreements were entered into by and among each PIPE Investor, Peridot, and NewCo., Peridot obtained commitments from the PIPE Investors to purchase common shares for a purchase price of $10.00 per share for aggregate gross proceeds of

------

**Exhibit 2.2**

$315,490,000. Certain offering related expenses were payable by Peridot under the Subscription Agreements, including customary fees payable to the placement agents. The purpose of the sale of common shares to the PIPE Investors under the Subscription Agreements was to raise additional capital for use in connection with the Business Combination.

The common shares sold to the PIPE Investors were identical to the common shares that were held by our other shareholders at the time of the Closing, except that when initially issued by Peridot, such shares were restricted securities. The PIPE Financing occurred on the date of, and immediately prior to, the consummation of the Business Combination.

The closing of the PIPE Financing was subject to customary conditions, including, among other conditions, the Company's agreement to, as soon as practicable (but in any case no later than 30 calendar days after the consummation of the Business Combination), file with the SEC (at its sole cost and expense) a registration statement registering the resale of the shares received by the PIPE Investors in the PIPE Financing and to use its commercially reasonable efforts to have such resale registration statement declared effective as soon as practicable after the filing thereof. The registration statement on Form F-3 filed by the Company on September 14, 2022 and declared effective by the SEC on September 23, 2022 is intended to satisfy this requirement.

*KSP Note Purchase Agreement* 

On September 29, 2021, in connection with the Company's entry into the KSP Note Purchase Agreement and issuance of the KSP Convertible Note, the Company granted certain registration rights to the holder of the KSP Convertible Notes under the KSP Note Purchase Agreement. The Company has filed a registration statement covering the resale of the common shares issued or issuable upon conversion of the KSP Convertible Notes in accordance with those registration rights and has agreed to keep the registration statement (or another shelf registration statement covering the common shares issued or issuable upon conversion of the KSP Convertible Notes) effective until the earlier of (x) the third anniversary of the first issuance of the KSP Convertible Notes or (y) the date on which the holder of the KSP Convertible Notes ceases to hold any common shares issued or upon conversion of the KSP Convertible Notes. The registration statement on Form F-3 filed by the Company on September 14, 2022 and declared effective by the SEC on September 23, 2022 is intended to satisfy this requirement.

*LG Subscription Agreements* 

On December 13, 2021, Li-Cycle entered into subscription agreements with each of LGES and LGC, each of which were subsequently amended and restated on March 11, 2022 and April 21, 2022 (the "LG Subscription Agreements" and each, an "LG Subscription Agreement"), pursuant to which each of LGES and LGC agreed, subject to the satisfaction of certain conditions, to subscribe for an equal number of the Company's common shares in transactions exempt from registration under the Securities Act (the "LG Subscription"). The LG Subscription was completed on May 11, 2022 and consisted of the issuance by the Company in accordance with the LG Subscription Agreements of (i) an initial tranche of 4,416,960 common shares, in the aggregate, at a price of $10.00 per share, for an aggregate initial tranche subscription price of approximately $44.2 million, and (ii) a second tranche of 883,392 common shares, in the aggregate, at a price of $6.60 per share (based on the volume-weighted average trading price of the Company's common shares for the 5 trading days ending immediately prior to April 29, 2022), for an aggregate second tranche subscription price of approximately $5.8 million, for a total subscription price of approximately $50.0 million.

The Company has granted certain registration rights to LGES and LGC under the LG Subscription Agreements. The Company has filed with the SEC a shelf registration statement covering the resale of the common shares issued pursuant to the LG Subscription Agreements, which has been declared effective by the SEC. The Company has agreed to keep such shelf registration statement (or another shelf registration statement covering the common shares issued pursuant to the LG Subscription Agreements) effective until the earlier of (x) May 11, 2025 or (y) the date on which LGES or LGC, as applicable, ceases to hold any of the common shares acquired pursuant to the LG Subscription Agreements.

*Glencore Registration Rights Agreement* 

Concurrently with the issuance of the Glencore Convertible Note, the Company entered into a registration rights agreement with Glencore (the "Glencore Registration Rights Agreement"). The Glencore Registration Rights Agreement provides that upon request of the holder of the Glencore Convertible Note, the Company will file with the SEC within 45 days after notice of such request, a resale registration statement covering the resale of the common shares issuable upon conversion of the Glencore Convertible Note and upon exercise of the Glencore Warrants and held by such holder. The Company is required to use commercially reasonable efforts to have such registration statement declared effective by the SEC as soon as practicable and no later than the earlier of (A) 45

------

**Exhibit 2.2**

days after the filing of such registration statement (or 75 days after the filing of such registration statement if the SEC notifies the Company that it will review the registration statement) or (B) 15 business days after the SEC notifies the Company in writing that it will not review the registration statement. The Company agreed to keep the registration statement (or another shelf registration statement covering the common shares issued or issuable upon conversion of the Glencore Convertible Note and upon exercise of the Glencore Warrants) effective until three years after the holder's receipt of the common shares issued upon conversion of the Glencore Convertible Note or upon exercise of the Glencore Warrants, as applicable.

In addition, subject to certain requirements and customary conditions, including with regard to the number of demand rights that may be exercised, the holder of the Glencore Convertible Note may demand at any time or from time to time, that the Company file a registration statement on Form F-3 (or on Form F-1 if Form F-3 is not available) to register the common shares issuable upon conversion of the Glencore Convertible Note and upon exercise of the Glencore Warrants and held by such holder. In addition, the holder of the Glencore Convertible Note may specify that such demand registration take the form of an underwritten offering, subject to limitations on the number of demands and underwritten offerings that can be requested by the holder, as specified in the Glencore Registration Rights Agreement. The holder of the Glencore Convertible Note will also have "piggy-back" registration rights, subject to certain requirements and customary conditions.

The Glencore Registration Rights Agreement also provides that the Company will pay certain expenses relating to such registrations and indemnify the holder of the Glencore Convertible Note against (or make contributions in respect of) certain liabilities that may arise under the Securities Act.

**Transfer Restrictions** 

The common shares issued pursuant to the LG Subscription Agreements are subject to certain transfer restrictions.

Glencore has agreed to certain transfer restrictions with respect to the common shares issued or issuable upon conversion of the Glencore Convertible Note, including that Glencore will not transfer such common shares other than to permitted transferees until May 5, 2024.

**Listing** 

Our common shares are listed on the NYSE under the symbol "LICY". Holders of our common shares should obtain current market quotations for their securities. There can be no assurance that our common shares will remain listed on NYSE. If we fail to comply with the NYSE listing requirements, our common shares could be delisted from NYSE. A delisting of our common shares would affect the liquidity of our common shares and could inhibit or restrict our ability to raise additional financing.

**Transfer Agent** 

A register of holders of our common shares is maintained by Continental Stock Transfer and Trust Company in the United States, who serves as registrar and transfer agent for our equity securities.

## Exhibit 4.9

**LI-CYCLE HOLDINGS CORP.<br>2021 INCENTIVE AWARD PLAN**

**OPTION AWARD<br>GRANT NOTICE AND AGREEMENT**

Li-Cycle Holdings Corp., a corporation incorporated under the laws of the Province of Ontario (the "<u>Company</u>"), pursuant to the Plan (as defined in Exhibit A hereto), hereby grants to the holder listed below ("<u>Participant</u>") an option to purchase the number of Shares set forth below (the "<u>Option</u>"). The Option is subject to the terms and conditions set forth in this Option Grant Notice (the "<u>Grant Notice</u>"), the Option Agreement attached hereto as <u>Exhibit A</u> (the "<u>Agreement</u>"), and the Plan, each of which is incorporated herein by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Grant Notice and the Agreement.

**Participant: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Insert Name]** 

**Grant Date: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Insert Grant Date]** 

**Number of Options:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Insert Number]**

**Exercise Price Per Share:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Insert amount, in USD]** 

**Expiration Date: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Insert Expiration Date]** 

**Type of Option: &nbsp;&nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incentive Stock Option Non-Qualified Stock Option

**Vesting Schedule: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

---

| | | |
|:---|:---|:---|
| **Vesting Date** | **Incremental Vesting** | **Cumulative Vesting** |
| [Insert date] | []% | []% |
| [Insert date] | []% | []% |
| [Insert date] | []% | []% |

---

By Participant's signature below, Participant agrees to be bound by the terms and conditions of the Plan, the Agreement and the Grant Notice. Participant has reviewed the Agreement, the Plan and the Grant Notice in their entirety, has had an opportunity to obtain the advice of counsel prior to executing the Grant Notice and fully understands all provisions of the Grant Notice, the Agreement and the Plan. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan, the Grant Notice or the Agreement.

---

| | | | |
|:---|:---|:---|:---|
| **LI-CYCLE HOLDINGS CORP.** | **LI-CYCLE HOLDINGS CORP.** | **PARTICIPANT** | **PARTICIPANT** |
| By: |  | By: |  |
| Name: | [ ] | Name: | [ ] |
| Title: | [ ] |  |  |

---

US-LEGAL-11455062/3 176283-0002<br>

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**<u>EXHIBIT A TO OPTION GRANT NOTICE & AGREEMENT</u>**

<br> **OPTION AGREEMENT<br>FOR U.S. PARTICIPANTS**

Pursuant to the Company's 2021 Incentive Award Plan, as amended from time to time (the "<u>Plan</u>") and the Grant Notice to which this Agreement is attached, the Company has granted to Participant an Option under the Plan to purchase the number of Shares set forth in the Grant Notice.

**ARTICLE I.<br>GENERAL**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Defined Terms</u>. Capitalized terms not specifically defined herein shall have the meanings specified in the Plan or the Grant Notice. For purposes of this Agreement, the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Cause</u>" shall mean a Company Group Member having "Cause" to terminate Participant's employment or services, as such term is defined in any relevant employment or consulting agreement between Participant and a Company Group Member; *provided* that, in the absence of such agreement containing such definition, a Company Group Member shall have "Cause" to terminate Participant's employment or services upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Participant's commission of any act or omission that results in, or may reasonably be expected to result in, a conviction of (or plea of no contest or *nolo contendere* to) any felony or indictable offence (other than in connection with a traffic violation that does not result in imprisonment) under any provincial, state, federal or foreign law or any crime involving moral turpitude or dishonesty or that has or could have the effect, in the Company's reasonable and good faith determination, of causing material reputational or other material harm or damage to the Company Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Participant's commission of an act of fraud, embezzlement, misappropriation of funds, misrepresentation, malfeasance, breach of fiduciary duty or other willful and material act of misconduct, in each case, against any Company Group Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)any willful, material damage to any property of a Company Group Member by Participant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Participant's willful failure to (A) substantially perform Participant's material job functions (other than any such failure resulting from Participant's Disability) or (B) carry out or comply with a lawful and reasonable directive of a Company Group Member, in each case, which failure has not been cured (or cannot be cured) within fifteen (15) days after the Company gives written notice to Participant regarding such failure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Participant's breach of any Company policy which materially harms the Company Group, which breach has not been cured (or cannot be cured) within fifteen (15) days after the Company gives written notice to Participant regarding such failure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)Participant's unlawful use (including being under the influence) or possession of illegal drugs, or excessive use of alcohol, in each case that materially impairs Participant's ability to perform Participant's duties contemplated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)any negligent or reckless act by Participant resulting in or causing material reputational or other material harm or damage to the Company Group, in the good faith reasonable judgment of the Company; and

US-LEGAL-11455062/3 176283-0002<br>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)Participant's breach of any material provision of any written agreement between Participant and any Company Group Member, and failure to cure such breach (if capable of cure) within fifteen (15) days after the Company gives written notice to Participant regarding such breach.

Whether or not an event giving rise to "Cause" occurs for purposes of this definition (for Participants who do not have an employment or consulting agreement that includes a definition of Cause) will be determined by the Board in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Cessation Date</u>" shall mean the date of Participant's Termination of Service (regardless of the reason for such termination).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Company Group</u>" shall mean the Company and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Company Group Member</u>" shall mean each member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Disability</u>" shall have the meaning ascribed to such term in any relevant employment agreement between Participant and a Company Group Member; *provided* that, in the absence of such agreement containing such definition, "Disability" shall mean the disability of Participant such as would entitle the Participant to receive disability income benefits pursuant to the long-term disability plan of the Company Group Member then covering Participant or, if no such plan exists or is applicable to Participant, the permanent and total disability of Participant within the meaning of Section 22(e)(3) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Incorporation of Terms of Plan</u>. The Option is subject to the terms and conditions set forth in this Agreement, the special provisions for the Participant's country of residence if such Participant resides or provides services outside the United States or Canada (other than France), if applicable, attached hereto as <u>Exhibit B</u> (the "<u>Foreign Appendix</u>"), the special provisions for France if such Participant resides or provides services in France, if applicable, attached hereto as <u>Exhibit C</u> (the "<u>French Subplan</u>"), and the Plan, each of which is incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall control. In the event of any inconsistency between the Plan and/or this Agreement with the Foreign Appendix or the French Subplan, the terms of the Foreign Appendix, as applicable, or French Subplan, as applicable, shall control.

**ARTICLE II.<br>GRANT OF OPTION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Grant of Option</u>. In consideration of Participant's past and/or continued employment with or service to any Company Group Member and for other good and valuable consideration, effective as of the grant date set forth in the Grant Notice (the "<u>Grant Date</u>"), the Company has granted to Participant the Option to purchase any part or all of an aggregate number of Shares set forth in the Grant Notice, upon the terms and conditions set forth in the Grant Notice, the Plan and this Agreement, subject to adjustment as provided in Section 12.2 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Exercise Price</u>. The exercise price per Share of the Shares subject to the Option (the "<u>Exercise Price</u>") shall be as set forth in the Grant Notice (which exercise price is not less than 100% of the Fair Market Value of the Share on the Grant Date).

**ARTICLE III.<br>PERIOD OF EXERCISABILITY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Commencement of Exercisability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Participant's continued employment with or service to a Company Group Member on each applicable vesting date and subject to <u>Sections 3.2</u>, <u>3.3</u>, <u>5.9</u> and <u>5.14</u> hereof, the Option shall become vested and exercisable in such amounts and at such times as are set forth in the Grant Notice.

US-LEGAL-11455062/3 176283-0002<br>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise provided under <u>Section 3.1(c)</u>, as determined by the Administrator or as set forth in a written agreement between Participant and the Company, any portion of the Option that has not become vested and exercisable on or prior to the Cessation Date (including, without limitation, pursuant to any employment or similar agreement by and between Participant and the Company) shall be forfeited on the Cessation Date and shall not thereafter become vested and exercisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event Participant incurs a Termination of Service without Cause upon or within twelve (12) months following a Change in Control, any portion of the Option that has not become vested and exercisable on or prior to the Cessation Date, shall become fully vested and exercisable as of immediately prior to the Termination of Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Duration of Exercisability</u>. The installments provided for in the vesting schedule set forth in the Grant Notice are cumulative. Each such installment that becomes vested and exercisable pursuant to the vesting schedule set forth in the Grant Notice shall remain vested and exercisable until it becomes unexercisable under <u>Section 3.3</u> hereof. Once the Option becomes unexercisable, it shall be forfeited immediately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Expiration of Option</u>. The Option may not be exercised to any extent by anyone after the first to occur of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The expiration date set forth in the Grant Notice (which date shall not be more than ten (10) years from the Grant Date for the Option);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as the Administrator may otherwise approve, the expiration of twelve (12) months from the Cessation Date by reason of Participant's Termination of Service due to death or Disability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as the Administrator may otherwise approve, immediately upon the Cessation Date by reason of Participant's Termination of Service by the Company Group for Cause; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as the Administrator may otherwise approve, the expiration of three (3) months from the Cessation Date by reason of Participant's Termination of Service for any reason other than by the Company Group for Cause or due to death or Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Tax Withholding</u>. Notwithstanding any other provision of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company Group has the authority to deduct or withhold, or require Participant to remit to the applicable Company Group Member, an amount sufficient to satisfy any applicable federal, state, local, provincial and foreign taxes (including the employee portion of any FICA obligation) required by Applicable Law to be withheld with respect to any taxable event arising pursuant to this Agreement. The Company Group may withhold or Participant may make such payment in one or more of the forms specified below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) by cash or check made payable to the Company Group Member with respect to which the withholding obligation arises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) by the deduction of such amount from other compensation payable to Participant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) with respect to any withholding taxes arising in connection with the exercise of the Option, with the consent of the Administrator, by requesting that the Company withhold a net number of Shares issuable upon the exercise of the Option having a then current Fair Market Value not exceeding the amount necessary to satisfy the withholding obligation of the Company Group based on the maximum statutory withholding rates in Participant's applicable jurisdictions for federal, state, local, provincial and foreign income tax and payroll tax purposes that are applicable to such taxable income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) with respect to any withholding taxes arising in connection with the exercise of the Option, through the delivery of a notice that Participant has placed a market sell order with a broker acceptable to the Company with respect to Shares then issuable to Participant pursuant to the Option, and

US-LEGAL-11455062/3 176283-0002<br>

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that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company Group Member with respect to which the withholding obligation arises in satisfaction of such withholding taxes; *provided* that payment of such proceeds is then made to the applicable Company Group Member at such time as may be required by the Administrator, but in any event not later than the settlement of such sale; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) in any combination of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to any withholding taxes arising in connection with the Option, in the event Participant fails to provide timely payment of all sums required pursuant to <u>Section 3.4(a)</u>, the Company shall have the right and option, but not the obligation, to treat such failure as an election by Participant to satisfy all or any portion of Participant's required payment obligation pursuant to <u>Section 3.4(a)(ii)</u> or <u>Section 3.4(a)(iii)</u> above, or any combination of the foregoing as the Company may determine to be appropriate. The Company shall not be obligated to deliver any certificate representing Shares issuable with respect to the exercise of the Option to, or to cause any such Shares to be held in book-entry form by, Participant or his or her legal representative unless and until Participant or his or her legal representative shall have paid or otherwise satisfied in full the amount of all federal, state, local, provincial and foreign taxes applicable with respect to the taxable income of Participant resulting from the exercise of the Option or any other taxable event related to the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event any tax withholding obligation arising in connection with the Option will be satisfied under <u>Section 3.4(a)(iii)</u>, then the Company shall elect to instruct any brokerage firm determined acceptable to the Company for such purpose to sell on Participant's behalf a whole number of Shares from those Shares then issuable upon the exercise of the Option as the Company determines to be appropriate to generate cash proceeds sufficient to satisfy the tax withholding obligation and to remit the proceeds of such sale to the Company Group Member with respect to which the withholding obligation arises. Participant's acceptance of this Option constitutes Participant's instruction and authorization to the Company and such brokerage firm to complete the transactions described in this <u>Section 3.4(c)</u>, including the transactions described in the previous sentence, as applicable. The Company may refuse to issue any Shares to Participant until the foregoing tax withholding obligations are satisfied, *provided* that no payment shall be delayed under this <u>Section 3.4(c)</u> if such delay will result in a violation of Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Participant is ultimately liable and responsible for all taxes owed in connection with the Option, regardless of any action any Company Group Member takes with respect to any tax withholding obligations that arise in connection with the Option. No Company Group Member makes any representation or undertaking regarding the treatment of any tax withholding in connection with the awarding, vesting or exercise of the Option or the subsequent sale of Shares. The Company Group does not commit and is under no obligation to structure the Option to reduce or eliminate Participant's tax liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For purposes of this Section 3.4, (i) "Applicable Law" shall include without limitation, all applicable securities, corporate, tax and other laws, rules, regulations, instruments, notices, blanket orders, decision documents, statements, circulars, procedures and policies, and (ii) "withholding taxes" shall include any and all taxes and other source deductions, or other amounts which the Company Group Member is required by Applicable Law to withhold from any amounts paid or credited to a Participant under the Plan.

**ARTICLE IV.<br>EXERCISE OF OPTION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Person Eligible to Exercise</u>. During the lifetime of Participant, only Participant may exercise the Option or any portion thereof. After the death of Participant, any exercisable portion of the Option may, prior to the time when the Option becomes unexercisable under <u>Section 3.3</u> hereof, be exercised by Participant's personal representative or by any Person empowered to do so under the deceased Participant's will or under the then Applicable Laws of descent and distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Partial Exercise</u>. Subject to <u>Section 5.2</u>, any exercisable portion of the Option or the entire Option, if then wholly exercisable, may be exercised in whole or in part at any time prior to the time when the Option or portion thereof becomes unexercisable under <u>Section 3.3</u> hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Manner of Exercise</u>. The Option, or any exercisable portion thereof, may be exercised solely by delivery to the Secretary of the Company (or any third party administrator or other Person designated by the Company), during regular business hours, of all of the following prior to the time when the Option or such portion thereof becomes unexercisable under <u>Section 3.3</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) An exercise notice in a form specified by the Administrator, stating that the Option or portion thereof is thereby exercised, such notice complying with all applicable rules established by the Administrator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The receipt by the Company of full payment for the Shares with respect to which the Option or portion thereof is exercised, in such form of consideration permitted under <u>Section 4.4</u> hereof that is acceptable to the Administrator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The payment of any applicable withholding tax in accordance with <u>Section 3.4</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any other written representations or documents as may be required in the Administrator's sole discretion to effect compliance with Applicable Law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event the Option or portion thereof shall be exercised pursuant to <u>Section 4.1</u> hereof by any Person or Persons other than Participant, appropriate proof of the right of such Person or Persons to exercise the Option.

Notwithstanding any of the foregoing, the Administrator shall have the right to specify all conditions of the manner of exercise, which conditions may vary by country and which may be subject to change from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Method of Payment</u>. Payment of the Exercise Price shall be by any of the following, or a combination thereof, at the election of Participant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Cash or check;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Through the delivery of a notice that Participant has placed a market sell order with a broker acceptable to the Company with respect to Shares then issuable upon exercise of the Option, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the Exercise Price; *provided* that payment of such proceeds is then made to the Company at such time as may be required by the Administrator, but in any event not later than the settlement of such sale; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any other form of legal consideration acceptable to the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Conditions to Issuance of Shares</u>. The Company shall not be required to issue or deliver Shares purchased upon the exercise of the Option or portion thereof prior to fulfillment of all of the following conditions: (a) the admission of such Shares to listing on all stock exchanges on which such Shares are then listed, (b) the completion of any registration or other qualification of such Shares under any provincial, territorial, state or federal law or under rulings, rules or regulations of the Securities and Exchange Commission, any Canadian securities regulatory authority or other governmental regulatory body, which the Administrator shall, in its absolute discretion, deem necessary or advisable, (c) the obtaining of any approval or other clearance from any provincial, territorial, state or federal governmental agency that the Administrator shall, in its absolute discretion, determine to be necessary or advisable, (d) the receipt by the Company of full payment for such Shares, which may be in one or more of the forms of consideration permitted under <u>Section 4.4</u> hereof, and (e) the receipt of full payment of any applicable withholding tax in accordance with <u>Section 3.4</u> by the Company Group Member with respect to which the applicable withholding obligation arises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Rights as Shareholder</u>. Neither Participant nor any Person claiming under or through Participant will have any of the rights or privileges of a shareholder of the Company in respect of any Shares purchasable upon the exercise of any part of the Option unless and until certificates representing such Shares (which may be in book-entry form) will have been issued and recorded on the records of the Company or its transfer agents or registrars and delivered to Participant (including, without limitation,

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through electronic delivery to a brokerage account). No adjustment will be made for a dividend or other right for which the record date is prior to the date of such issuance, recordation and delivery, except as provided in Section 12.2 of the Plan. Except as otherwise provided herein, after such issuance, recordation and delivery, Participant will have all the rights of a shareholder of the Company with respect to such Shares, including, without limitation, the right to receipt of dividends and distributions on such Shares.

**ARTICLE V.<br>OTHER PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Administration</u>. The Administrator shall have the power to interpret the Plan, the Grant Notice and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan, the Grant Notice and this Agreement as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all interpretations and determinations made by the Administrator will be final and binding upon Participant, the Company and all other interested Persons. To the extent allowable pursuant to Applicable Law, no member of the Committee or the Board will be personally liable for any action, determination or interpretation made with respect to the Plan, the Grant Notice or this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Whole Shares</u>. The Option may only be exercised for whole Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Option Not Transferable</u>. Subject to <u>Section 4.1</u> hereof, the Option may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution, unless and until the Shares underlying the Option have been issued, and all restrictions applicable to such Shares have lapsed. Neither the Option nor any interest or right therein or part thereof shall be liable for the debts, contracts or engagements of Participant or his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including, without limitation, bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by the preceding sentence. Notwithstanding the foregoing, with the consent of the Administrator, if the Option is a Non-Qualified Stock Option, it may be transferred to Permitted Transferees pursuant to any conditions and procedures the Administrator may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Adjustments</u>. The Administrator may accelerate the vesting of all or a portion of the Option in such circumstances as it, in its sole discretion, may determine. Participant acknowledges that the Option is subject to adjustment, modification and termination in certain events as provided in this Agreement and the Plan, including Section 12.2 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Notices</u>. Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of the Secretary of the Company at the Company's principal office, and any notice to be given to Participant shall be addressed to Participant at Participant's last address reflected on the Company's records. By a notice given pursuant to this <u>Section 5.5</u>, either party may hereafter designate a different address for notices to be given to that party. Any notice shall be deemed duly given when sent via email or when sent by certified or registered mail (return receipt requested) and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service or Canada Post, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>Titles</u>. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <u>Governing Law</u>. The laws of the Province of Ontario shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <u>Conformity to Securities Laws</u>. Participant acknowledges that the Plan, the Grant Notice, this Agreement, the Foreign Appendix, if applicable, and the French Subplan, if applicable, are intended to conform to the extent necessary with all Applicable Laws, including, without limitation, the provisions of the Securities Act, the Exchange Act, the Securities Act (Ontario) and any and all regulations and rules

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promulgated thereunder by the Securities and Exchange Commission or the Ontario Securities Commission, as applicable, and state or other provincial securities laws and regulations. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Option is granted and may be exercised, only in such a manner as to conform to Applicable Law. To the extent permitted by Applicable Law, the Plan, the Grant Notice, this Agreement, the Foreign Appendix, if applicable, and the French Subplan, if applicable, shall be deemed amended to the extent necessary to conform to Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 <u>Amendment, Suspension and Termination</u>. To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Administrator or the Board*, provided* that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall adversely affect the Option in any material way without the prior written consent of Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 <u>Successors and Assigns</u>. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth in <u>Section 5.3</u> and the Plan, this Agreement shall be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 <u>Limitations Applicable to Section 16 Persons</u>. Notwithstanding any other provision of the Plan or this Agreement, if Participant is subject to Section 16 of the Exchange Act, the Plan, the Option, the Grant Notice and this Agreement shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including, without limitation, any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To the extent permitted by Applicable Law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12 <u>Not a Contract of Employment</u>. Nothing in this Agreement, the Foreign Appendix, if applicable, the French Subplan, if applicable, or in the Plan shall confer upon Participant any right to continue to serve as an employee or other service provider of any Company Group Member or shall interfere with or restrict in any way the rights of any Company Group Member, which rights are hereby expressly reserved, to discharge or terminate the services of Participant at any time for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written agreement between a Company Group Member and Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13 <u>Entire Agreement</u>. The Plan, the Grant Notice and this Agreement (including, without limitation, any exhibit hereto) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14 <u>Section 409A</u>. This Award is not intended to constitute "nonqualified deferred compensation" within the meaning of Section 409A. However, notwithstanding any other provision of the Plan, the Grant Notice or this Agreement, if at any time the Administrator determines that this Award (or any portion thereof) may be subject to Section 409A, the Administrator shall have the right in its sole discretion (without any obligation to do so or to indemnify Participant or any other Person for failure to do so) to adopt such amendments to the Plan, the Grant Notice or this Agreement, or adopt other policies and procedures (including, without limitation, amendments, policies and procedures with retroactive effect), or take any other actions, as the Administrator determines are necessary or appropriate for this Award either to be exempt from the application of Section 409A or to comply with the requirements of Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.15 <u>Agreement Severable</u>. In the event that any provision of the Grant Notice or this Agreement is held invalid or unenforceable, such provision will be severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions of the Grant Notice or this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.16 <u>Limitation on Participant's Rights</u>. Participation in the Plan confers no rights or interests other than as herein provided. This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and shall not be construed as creating a trust. Neither the Plan nor any

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underlying program, in and of itself, has any assets. Participant shall have only the right to receive Shares as a general unsecured creditor with respect to the Option, as and when exercised pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.17 <u>Counterparts</u>. The Grant Notice may be executed in one or more counterparts, including by way of any electronic signature, subject to Applicable Law, each of which shall be deemed an original and all of which together shall constitute one instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.18 <u>Incentive Stock Options</u>. Participant acknowledges that to the extent the aggregate Fair Market Value of Shares (determined as of the time the option with respect to the Shares is granted) with respect to which Incentive Stock Options, including this Option (if applicable), are exercisable for the first time by Participant during any calendar year exceeds $100,000 or if for any other reason such Incentive Stock Options do not qualify or cease to qualify for treatment as "incentive stock options" under Section 422 of the Code, such Incentive Stock Options shall be treated as Non-Qualified Stock Options. Participant further acknowledges that the rule set forth in the preceding sentence shall be applied by taking the Option and other stock options into account in the order in which they were granted, as determined under Section 422(d) of the Code and the Treasury Regulations thereunder. Participant also acknowledges that an Incentive Stock Option exercised more than three (3) months after Participant's Termination of Service, other than by reason of death or disability, will be taxed as a Non-Qualified Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.19 <u>Notification of Disposition</u>. If this Option is designated as an Incentive Stock Option, Participant shall give prompt written notice to the Company of any disposition or other transfer of any Shares acquired under this Agreement if such disposition or transfer is made (a) within two (2) years from the Grant Date or (b) within one (1) year after the transfer of such Shares to Participant. Such notice shall specify the date of such disposition or other transfer and the amount realized, in cash, other property, assumption of indebtedness or other consideration, by Participant in such disposition or other transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.20 <u>Special Provisions for Options Granted to Participants Outside the United States</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Participant performs services for the Company outside of the United States, this Agreement shall be subject to the special provisions, if any, for the Participant's country of residence, as set forth in the Foreign Appendix or the French Subplan, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Participant relocates to France or one of the countries included in the Foreign Appendix during the life of this Agreement, special provisions for such country shall apply to the Participant, to the extent the Company determines that the application of such provisions is necessary or advisable in order to comply with applicable foreign and local law or facilitate the administration of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company reserves the right to impose other requirements on this Agreement, the Option and the Shares issued upon exercise of the Option, to the extent the Company determines it is necessary or advisable in order to comply with applicable foreign or local laws or facilitate the administration of the Plan, and to require the Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

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**<u>EXHIBIT B</u>**

**<u>TO OPTION GRANT NOTICE AND AGREEMENT</u>**

**SPECIAL PROVISIONS FOR OPTIONS**

**GRANTED TO PARTICIPANTS OUTSIDE THE U.S.**

This <u>Exhibit B</u> includes additional terms applicable to Participants who reside or provide services to a Company Group Member in the countries identified below. These terms and conditions are in addition to those set forth in the Agreement to which this <u>Exhibit B</u> is attached and the Plan and to the extent there are any inconsistencies between these terms and conditions and those set forth in the Agreement, these terms and conditions shall prevail. Any capitalized term used in this <u>Exhibit B</u> without definition shall have the meaning ascribed to such term in the Plan or the Agreement, as applicable.

This Foreign Appendix also includes information relating to exchange control and other issues of which the Participant should be aware with respect to his or her participation in the Plan. The information is based on the exchange control, securities and other laws in effect in the respective countries as of September 2021. Such laws are often complex and change frequently. As a result, the Company strongly recommends that the Participant does not rely on the information herein as the only source of information relating to the consequences of participation in the Plan because the information may be out of date at the time the Option is exercised or Shares acquired under the Plan are sold.

In addition, the information is general in nature and may not apply to the particular situation of the Participant, and the Company is not in a position to assure the Participant of any particular result. Accordingly, the Participant is advised to seek appropriate professional advice as to how the relevant laws in his or her country may apply to his or her situation. Finally, if the Participant is a citizen or resident of a country other than the one in which he or she is currently working, the information contained herein may not be applicable to the Participant.

**CHINA**

1. The Company and/or any of the Company Group Member will not be liable for any failure by Participant in relation to payment of the Exercise Price or receipt of any proceeds under the Plan due to any legal or practical restrictions on conversion or remittance of foreign exchanges where applicable.

2. Data Privacy

In addition to Section 10.9 in the Plan, Participant acknowledges that some of his/her personal information that the Company and its Subsidiaries will process is sensitive, such as the identification number and details of all the Awards. However, Participant's participation under the Plan will not be able to effect or continue if such sensitive personal information fails to be processed. Acknowledging the harm that may be caused to Participant's personal or property safety by any potential unauthorized disclosure or illegal use of the sensitive personal information, the Company and its Subsidiaries adopt, update and implement various technical, physical and administrative security policies and procedures in line with Applicable Laws to safeguard the confidentiality, privacy and integrity of Participant's sensitive personal information.

With respect to the transfer of Participant's personal information as stated above (which may involve cross-border transfer from the territory of China to elsewhere), the relevant information of the transferees will be made available to Participant before the transfer.

3. For purposes of this Foreign Appendix, China means the People's Republic of China but not including Hong Kong, Macau and Taiwan.

4. By accepting the Option, Participants understands and hereby consents to (i) the collection, holding, processing, use and transfer of his/her sensitive personal information as described in the Plan, the Grant Notice and the Agreement, (ii) the transfer and provision of his/her personal information as described in the Plan, the Grant Notice and the Agreement, and (iii) the transfer and provision of his/her personal information from the territory of the People's Republic of China to overseas parties as described in the Plan, the Grant Notice and the Agreement.

**GERMANY**

1.<u>Definition of Employee</u>. The definition of Employee shall, for the avoidance of doubt, include the legal representatives of the German group members.

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2.<u>Taxes</u>. For the avoidance of doubt, taxes always include German social security contributions, and in this regard, Participant's portion.

3.<u>Securities Law</u>. This offer does not require a securities prospectus (*Wertpapierprospekt*) to be submitted for approval to the German Federal Financial Supervisory Authority (*Bundesanstalt für Finanzdienstleistungsaufsicht* or *BaFin*).

4.<u>Exchange Control Information</u>. Cross-border payments in excess of €12,500 must be reported monthly to the German Central Bank (*Deutsche Bundesbank*). If Participant uses a German bank to transfer a cross-border payment in excess of €12,500 in connection with the sale of Shares acquired under the Plan, the bank will file the report for Participant. In addition, Participant must report any receivables, payables, or debts in foreign currency exceeding an amount of €5,000,000 on a monthly basis. Finally, Participant must report on an annual basis if Participant holds Shares that exceed 10% of the total voting capital of the Company.

5.<u>Consent to Personal Data Processing and Transfer</u>. By acceptance of the Option, the Participant acknowledges and consents to the collection, use, processing, recording, organization, structuring, storage, adaption or alteration, retrieval, disclosure and transfer of personal data as described below and in accordance with the Company privacy policy. The Company Group Members hold certain personal information, including the Participant's name, home address and telephone number, date of birth, social security number or other employee tax identification number, employment history and status, salary, nationality, job title, and any equity compensation grants or Shares awarded, cancelled, purchased, vested, unvested or outstanding in the Participant's favor, for the purpose of managing and administering the Plan ("<u>Data</u>"). The Company Group Members will transfer Data to any third parties assisting the Company in the implementation, administration and management of the Plan. The Company Group Members may also make the Data available to public authorities where required under locally applicable law. These recipients may be located in the United States, the European Economic Area, or elsewhere, which the Participant separately and expressly consents to, accepting that outside the European Economic Area, data protection laws may not be as protective as within. The Participant hereby authorizes the Company Group Members to collect, use, process, record, organize, structure, store, adapt or alter, retrieve, disclose and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing participation in the Plan, including any requisite transfer of such Data as may be required for the administration of the Plan on behalf of the Participant to a third party with whom the Participant may have elected to have payment made pursuant to the Plan. The Participant may, at any time, review Data, require any necessary amendments to it or withdraw the consent herein in writing or by e-mail contacting the Company through Participant's local human resources representative. However, withdrawing the consent may affect the Participant's ability to participate in the Plan and receive the benefits intended by the Option. Data will only be held as long as necessary to implement, administer and manage the Participant's participation in the Plan and any subsequent claims or rights.

**HONG KONG**

The contents of the Plan and any of the documents referred to therein (including but not limited to the Grant Notice and the Agreement) have not been reviewed by any regulatory authority in Hong Kong. Participants are advised to exercise caution in relation to the offer of Options. If Participants are in any doubt about any of the contents of this Plan, they should obtain independent professional advice.

This Plan does not constitute an offer or invitation to the public within the meaning of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32 of the Laws of Hong Kong) (the "<u>Companies Ordinance</u>") or the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong), and it is made on terms that only the qualifying person (as defined in the Companies Ordinance) to whom this invitation has been addressed is eligible to apply. Options offered in relation to the Plan may not be offered or sold in Hong Kong by means of any document, except in circumstances which do not result in the document being a "prospectus" as defined in the Companies Ordinance or which do not constitute an offer to the public within the meaning of that Ordinance.

No person may issue or possess for the purposes of issue, whether in Hong Kong or elsewhere, any advertisement, invitation or document relating to Options offered in relation to the Plan, which is directed at, or the contents of which are likely to be accessed or read by, the public of Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to Options which are or are intended to be disposed of only to persons outside Hong Kong.

**JAPAN**

1.<u>Securities Regulation</u>. The Company notifies the Participant and, the Participant acknowledges, that in connection with the Plan, the Agreement, the Grant Notice and ancillary documents to them, and Options being offered to the Participant, no notification under Article 4 of Financial Instruments and Exchange Act (the

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"<u>FIEA</u>") was made because the offering of Options falls under Article 2(3)(ii)(c) of FIEA and, thus, falls under the solicitation for small number of investors (*syoninzuu muke kanyuu*) stipulated in Article 23-13(4)(i)(a) of FIFA.

2.<u>Exchange Control Information</u>. Notification under the Foreign Exchange and Foreign Trade Act shall be required, among other cases, where a cross-border payment in excess of JPY 30,000,000 was made.

**NORWAY**

This appendix includes additional terms and conditions that govern the Options granted to the Participant if the Participant is resident in Norway for tax purposes, or subject to the Norwegian Working Environment Act ("<u>WEA</u>"). Unless otherwise defined herein, the terms defined in the Plan and in the Agreement shall have the same meanings in this appendix. In the event of any conflict between the provisions of the Plan or of the Agreement and this appendix, the provisions of this appendix shall control.

1.<u>Defined Terms</u>. For the purposes of this appendix, the following terms have the following meanings:

"<u>Cause</u>" means, in respect of employees covered by the WEA, termination due to circumstances relating to the Employee (personal reasons) and summary dismissal in case of a gross breach of duty or other gross misconduct, and for Consultants, the definition of "Cause" in article 1.1(a) of this Agreement applies.

"<u>Disability</u>" means long-term and total disability of the Participant in accordance with the Norwegian National Insurance Act section 12-7.

"<u>Norwegian Affiliate</u>" means, as applicable, the Company's affiliate employing the Norwegian Participant.

"<u>Norwegian Participant</u>" means any Participant who is resident in Norway for tax purposes.

2.<u>Termination of Service</u>. When determining whether a leave of absence constitutes a termination of service, Norwegian legislation regarding leave of absence must be taken into due account.

3.<u>Granting of Awards</u>. When the Administrator selects who an Award shall be granted to, the requirements according to the Norwegian Equality and Anti-Discrimination Act and the WEA must be respected.

4.<u>Authority of Administrator</u>. The Administrator is given exclusive power to determine terms and conditions, including provisions relating to non-competition on an Award. If a non-competition clause is imposed for an Employee, the provisions in the WEA Chapter 14-A must be complied with, including a mandatory written statement.

5.<u>Norwegian Social Security and Taxes</u>. The Norwegian Affiliate is obligated to report to the Norwegian Tax Administration the exercise of Options and the transfer of Shares to the Norwegian Participant upon the transfer of Shares to the Norwegian Participant and to include the taxable benefit in the monthly individual PAYE reporting, due in the month following the taxable event, which is when the Norwegian Participant receives the Shares.

The Norwegian Participant shall be ultimately responsible to recognize any and all income earned from exercise of Options in the Participant's income tax return, including employee social security charges (Nrw: *trygdeavgift*) as applicable, for the respective taxation period in accordance with applicable Norwegian law and shall be responsible for any residual Norwegian individual income tax and employee social security charges, as the case may be, on any net taxable earnings for such taxation period in accordance with the Norwegian tax legislation. For the avoidance of doubt, the Norwegian Participant shall not be responsible for employer's social security (Nrw. *arbeidsgiveravgift*) payable by the Norwegian Affiliate in respect of the Norwegian Participant's income earned under the Plan or this Agreement.

6.<u>Method of Payment</u>. For the avoidance of doubt, the Norwegian Participants shall not be required to make or receive any payment under the Plan or this Agreement by way of check.

7.<u>Cash payment</u>. If cash payment is made to an Employee, holiday payment is deducted and paid the following year in accordance with the Norwegian Holidays Act. The payment is not subject to pension accrual.

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8.<u>Data Privacy</u>. The legal basis for the processing of personal data is the General Data Protection Regulation (EU) 2016/679 ("GDPR") art. 6 (1) (b), i.e., necessary for the performance of a contract. A Holder may, at any time, object to processing of the Data, request the right to data portability and lodge a complaint with a supervisory authority.

**SINGAPORE**

Notwithstanding anything to the contrary contained in the Plan, the Agreement, and the Grant Notice (collectively, the "<u>Documents</u>"), the Participant agrees, acknowledges, and confirms that:

(a)none of the Documents have been lodged, registered, and/or reviewed by any regulatory authority in Singapore, and that no prospectus or any other document relating to this offer of Options made to the Participant has been lodged or registered with the Monetary Authority of Singapore;

(b)the offer of Options being made to the Participant is made pursuant to the "qualifying person" exemption under section 273(1)(i) (read with section 273(4)) of Singapore's Securities and Futures Act (Cap 289), and accordingly no prospectus or other document relating to the offer of Options being made to the Participant needs to be lodged or registered with the Monetary Authority of Singapore; and

(c)the Documents have not been made with a view to any of the Options or Shares being subsequently offered for sale to another person, and none of the Documents or any other documents issued by the Participant in connection with any subsequent offer of sale of Options or Shares, or any transfer of Options or Shares, should under any circumstances be deemed a prospectus issued by the Company.

**SWEDEN**

This appendix includes additional terms and conditions that govern the Options granted to the Participant if the Participant is resident for tax purposes in Sweden, or subject to the Swedish Employment Protection Act ("<u>EPA</u>"). Unless otherwise defined herein, the terms defined in the Plan and in the Agreement shall have the same meanings in this appendix. In the event of any conflict between the provisions of the Plan or of the Agreement and this appendix, the provisions of this appendix shall govern.

1.<u>Defined Terms</u>. For the purposes of this appendix, the following terms have the following meanings:

"<u>Cause</u>" means, in respect of employees covered by the EPA, termination due to circumstances relating to the Employee (personal reasons) and summary dismissal in case of a gross breach of duty or other gross misconduct, and for Consultants, the definition of "Cause" in article 1.1(a) of this Agreement applies.

"<u>Disability</u>" means long-term disability or sickness of the Participant where the Participant will never be able to work full-time, in accordance with the Swedish Social Insurance Code.

"<u>Swedish Affiliate</u>" means, as applicable, the Company's affiliate employing the Swedish Participant.

"<u>Swedish Participant</u>" means any Participant who is resident for tax purposes in Sweden.

2.<u>Discretionary Character</u>. Any economic benefits deriving from the Swedish Participant's participation in the Plan are entirely discretionary and shall not qualify as salary or as a component of the salary.

3.<u>Swedish Social Security and Taxes</u>. The Swedish Affiliate is obligated to notify the Swedish Tax Agency of the exercise of Options and the transfer of Shares to the Swedish Participant upon exercise of the Options under the Plan and to include the taxable benefit in the monthly individual PAYE reporting, due in the month following the taxable event (exercise).

The Swedish Participant shall be ultimately responsible to recognize any and all income earned from exercise of Options in the income tax return, including employee social security charges (Sw. *allmän pensionsavgift*) as applicable, for the respective taxation period in accordance with applicable Swedish law and shall be responsible for any residual Swedish individual income tax and employee social security charges, as the case may be, on any net taxable earnings for such taxation period in accordance with the Swedish tax rules and regulations. For the avoidance of doubt, the Swedish Participant shall not be responsible for employer social security (Sw. *arbetsgivaravgifter*) payable by the Swedish Affiliate in respect of income earned under the Plan or this Agreement.

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4.<u>Method of Payment</u>. For the avoidance of doubt, the Swedish Participants shall not be required to make or receive any payment under the Plan or this Agreement by way of check.

5.<u>Non-Transferability</u>. The possibility to transfer Non-Qualified Stock Option with the consent of the Administrator shall not apply to Swedish Participant.

6.<u>Processing of personal data</u>. The legal basis for processing of the Participant's personal data is the GDPR art. 6 (1) (b), i.e. necessary for the performance of a contract to which the Participant is a party.

**SWITZERLAND**

This appendix includes additional terms and conditions that govern the Options granted to the Participant if the Participant is resident for tax purposes in Switzerland. Unless otherwise defined herein, the terms defined in the Plan and in the Agreement shall have the same meanings in this appendix. In the event of any conflict between the provisions of the Plan or of the Agreement and this appendix, the provisions of this appendix shall govern.

1.<u>Defined Terms</u>. For the purposes of this appendix, the following terms have the following meanings:

"<u>Disability</u>" means retirement due to disability based on a final decision by the Swiss Federal Disability Insurance.

"<u>Swiss Affiliate</u>" means, as applicable, the Company's affiliate employing the Swiss Participant.

"<u>Swiss Participant</u>" means any Participant who is resident for tax purposes in Switzerland.

2.<u>Discretionary Character</u>. Any economic benefits deriving from the Swiss Participant's participation in the Plan are entirely discretionary and shall not qualify as salary or as a component of the salary.

3.<u>Swiss Social Security and Taxes</u>.

As applicable, the Swiss Affiliate will provide the Swiss Participant with an annual salary statement (*Lohnausweis*) setting out (i) the gross annual income earned by the Swiss Participant during the relevant year, including income from participating in the Plan, (ii) the Swiss Participant's social security withholdings and, if applicable, (iii) the employer income tax withholding, plus an annex to the annual salary statement setting out certain of the economic terms of the Plan as determined by applicable Swiss law. The Swiss Affiliate shall have the right to notify the competent Swiss tax authorities of the grant of Options and the transfer of Shares to the Swiss Participant upon exercise of the Options under the Plan and to provide a copy of the annual salary statement including the annex directly to the competent Swiss tax authorities.

The Swiss Participant shall be responsible to recognize any and all income earned from the grant, vesting, settlement or otherwise in connection with an Award under the Plan and this Agreement in their income statement for the respective taxation period in accordance with applicable Swiss law and shall be responsible for Swiss federal, cantonal and communal individual income tax and social security charges or corporate income tax, as the case may be, on any net taxable earnings for such taxation period in accordance with the Swiss federal tax rules and regulations, and in accordance with the cantonal tax rules of the place of residence of the Swiss Participant.

4.<u>Parties to the Agreement</u>.

The Agreement is exclusively agreed upon between the Company and the Swiss Participant. The Swiss Affiliate is not a party to the Agreement and does not assume nor cannot be held liable for any liabilities under the Plan or the Agreement, if not otherwise provided by applicable Swiss mandatory law.

The Swiss Participant's sole contact and sole contractual partner regarding the Plan and the Options granted under the Agreement is the Company, and any rights and entitlements pursuant to the Plan and the Options are granted on an exclusively voluntary basis and do not create any claims against the Swiss Affiliate or any other affiliate. Even if there is a repeated grant of an Award and without express notification that the Award is made voluntarily, no legal claim for future grants exists. The offer or Award remains in the complete discretion of the Company. In particular, the Company reserves the right to determine in its full discretion the scope of beneficiaries and the conditions of the Plan.

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5.<u>Notices</u>. For the avoidance of doubt, any notice shall be deemed duly given when sent via email or when sent by certified or registered mail (return receipt requested) and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the Unites States Postal Service, Canada Post or the Swiss Post, as applicable.

**UNITED KINGDOM**

1.<u>General</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.This appendix shall apply to all UK Taxpayers (as defined below) and the terms of the Plan and the grant of Awards to UK Taxpayers under the Plan shall at all times be construed and interpreted in a manner consistent with this appendix.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.In the event that a Participant becomes an UK Taxpayer subsequent to the date of grant of Awards under the Plan, then, pursuant to Section 4.5 of the Plan, the terms of such Awards shall immediately be deemed to be amended in a manner consistent with this appendix.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.The terms of the Plan (including, for the avoidance of doubt, the terms of the Award Agreement), unless those terms are specified to apply to Participants residing outside of the UK, shall, save where otherwise specified below, apply in relation to Awards granted to an UK Taxpayer pursuant to the terms of this appendix, and references to the "Plan" shall include this appendix. If there is any inconsistency between any terms of this appendix and the terms of the Plan or the Award Agreement, the terms of this appendix shall apply to any Participant who is a UK Taxpayer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.In this Appendix, the following expressions shall have the following meanings respectively:

*"*<u>Tax</u>*"* means all liability to income tax (or overseas equivalent) which the Company or any Subsidiary is liable to account for on behalf of the Participant directly to any taxation authority (including, but without limitation, through the pay-as-you-earn system) and all liability to social security which the Company or any Subsidiary is liable to account for on behalf of the Participant to any taxation authority (including, but without limitation, primary Class 1 (employee's) National Insurance contributions) which arises as a result of any amount payable to the Participant under the Plan;

*"*<u>UK Tax</u>*"* means taxation under the rules of the United Kingdom; and

*"*<u>UK Taxpayer</u>*"* means a Participant who is subject to UK Tax at the date of grant of Awards under the Plan, is expected to become subject to UK Tax following the grant of Awards or does become subject to UK Tax following the grant of Awards but prior to the lapse, forfeiture or cancellation of Awards held by the Participant.

2.<u>Eligibility</u>. In relation to the operation of the Plan in the UK, no Award shall be granted to any person who is not an Employee (including a non-employee director).

3.<u>Taxation</u>. Any liability of a Participant to Tax shall be for the account of the relevant Participant. The Participant shall indemnify the Company or any Subsidiary, his or her employer and any other person in respect of any amount of Tax arising as a result of his or her participation in the Plan (or which would not otherwise have arisen but for his or her participation in the Plan) and any penalties or interest that may be payable by the Company or any Subsidiary as a result of the Participant failing to discharge his or her obligation to pay Tax arising as a result of his or her participation in the Plan. If the Company so requires, the Participant will enter into (A) an agreement or election pursuant to paragraphs 3A or 3B of Schedule 1 to the UK Social Security Contributions and Benefits Act 1992 and/or (B) a joint election under Section 431(1) of the Income Tax (Earnings and Pensions) Act 2003 (as the Company shall determine) with the relevant member of the Group on or before the date on which the Option is exercised. The Company or the relevant Subsidiary, will pay the appropriate stamp duty on behalf of Participants in respect of any transfer of Shares on the exercise of the Option.

4.<u>Data Privacy</u>. By participating in the Plan, the Participant's attention is drawn to the Company's data privacy notice previously provided to them, which sets out how the Participant's personal data will be used and shared by the Company and any Subsidiaries. The Company's data privacy notice does not form part of the Plan and may be updated from time to time. Any such updates shall be notified to the Participant.

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**<u>EXHIBIT C</u>**

**<u>TO OPTION GRANT NOTICE & AGREEMENT</u>**

**FRENCH SUBPLAN**

This Exhibit C (the "<u>French Subplan</u>") shall apply for each individual who is (i) a French Beneficiary (as such term is defined below) and (ii) resident in France from a French tax perspective and subject to French social security regime. Words and phrases in this French Subplan shall have the same meaning as defined in the Plan, except as provided below. To the extent there is any conflict between the Plan and this French Subplan, the terms of this French Subplan shall prevail.

The provisions of this French Sub-Plan shall apply exclusively to the grant of any Options and Restricted Share Units to the exclusion of any other type of Awards and notably any Share Appreciation Right, Restricted Share award, Others Share or Cash Based Award or a Dividend Equivalent award. Any reference to an Award in this French Sub-Plan shall then be considered as a reference to an Option or a Restricted Share Unit.

It is intended that the features of the Options, as amended under this French Sub-Plan, would comply with the provisions of Articles L.225-177 to L.225-186 of the French commercial code, articles 80 *bis* of the French tax code and Articles L.137-13 and L.137-14 of the French social security code in order to benefit from favourable tax and social security treatment for the Options; the provisions of this French SubPlan shall to the maximum extent possible be interpreted in a way consistent with this objective.

In addition, it is intended that the features of the Restricted Share Units, as amended under this French SubPlan, would comply with the provisions of Articles L.225-197-1 to L.225-197-5 of the French commercial code, Article 80 *quaterdecies* of the French tax code and Articles L.137-13 and L.137-14 of the French social security code in order to benefit from favourable tax and social security treatment for the Restricted Share Units; the provisions of this French SubPlan shall to the maximum extent possible be interpreted in a way consistent with this objective.

1. No Award shall be granted under this Appendix more than seventy-six (76) months after the Effective Date.

2. The following new definitions are added to those stated in Article 2 of the Plan:

"Closed Period" means: (i) the thirty (30) calendar days before the announcement of an intermediate financial report or a year-end financial report that the Company is required to make public; and (ii) for the members of the board, members of the directory board, general manager, deputy general manager (respectively *membres du conseil d'administration ou de surveillance, membres du directoire, directeur général* or *directeur général délégué*) or for employees of the Group Member who have knowledge of privileged information (within the meaning of article 7 of the EU Regulation # 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse) until such information has been made public;

"<u>Date of Grant</u>" means the date on which the granting of an Award is authorized, or such other date as may be specified in such authorization.

"<u>Defined Disability</u>" means the circumstance where an Holder is recognised as a disabled employee of the second or third category within the meaning of Article L.341-4 of the French social security code.

"<u>French Beneficiary</u>" means an Eligible Individual which is (i) a salaried employee of a French Group Member or (ii) a corporate officer of a French Group Member holding the duties of chairman of the board, general manager, deputy general manager, member of the directory board or manager (respectively *président du conseil d'administration*, *directeur général*, *directeur général délégué*,

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*membre du directoire* or *gérant*) <sup>(1)</sup> who, (a) on the Date of Grant, does not own individually more than 10% of the Company's issued share capital at that time, and (b) shall not hold, as the result of being granted an Restricted Share Unit, own 10% or more of the Company' issued share capital at that time.

"Group Member" means: (i) the Company; (ii) a company in which the Company holds, directly or indirectly, at least 10 per cent of the share capital or voting rights; or (iii) a company holding directly or indirectly at least 10 per cent of the share capital or voting rights of the Company;

and the French Group Member shall be construed accordingly.

"<u>Holding Period</u>" means, in respect of Restricted Share Unit(s), such period as specified by the Administrator but which is no less than one year from the transfer of the Share to the Eligible Individual upon Vesting, during which the Share cannot be sold, transferred or otherwise disposed of and being specified that such holding period may be reduced (or even deleted) provided that the cumulative duration of the Vesting Period and such Holding Period is at least equal to 2 years as from the Date of Grant;

"<u>Vesting Period</u>" means, in respect of Restricted Share Unit(s), the period(s), as specified by the Administrator, from the Date of Grant to the normal date(s) of vesting of the Award but which is no less than one year from the Date of Grant to the date of Vesting, and Vest and Vested shall be construed accordingly.

3. Article 3 of the Plan is supplemented by the following:

"Notwithstanding any other rule of the Plan, Shares available for Restricted Share Unit under the Plan (including, for the avoidance of doubt, the Substitute Awards) shall not represent more than 10% of the share capital of the Company (the "***French Restricted Share Unit Absolute Share Limit***"). For the purposes of the computation of the French Absolute Share Limit, all the Restricted Share Unit that have already lapsed, terminated or expired and all the Restricted Share Unit which have already been transferred to the Eligible Individual who has been selected by the Committee to participate in the Plan and granted a Restricted Share Unit pursuant to the Plan (and which are no longer subject to any Vesting Period or Holding Period) shall be disregarded.

Notwithstanding any other rule of the Plan, Shares available for Option under the Plan shall not represent more than one third of the share capital of the Company (the "***French Option Absolute Share Limit***") at the time of the Date of Grant. For the purposes of this limitation, all the Options that have already lapsed or which have already been exercised shall be disregarded."

4. Article 5 of the Plan is supplemented by the following:

"All Shares issuable upon the exercise of Options shall have a nominative form (*titres nominatifs*) or shall be registered in a specific "mentioned by name account" (*compte-titres nominatif*) in the Company's register."

<sup>(1)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Subject, for corporate officers, to compliance with Articles L. 22-10-58 and L. 22-10-60 of the French commercial code.

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5. Article 5.1 supplemented by the following:

"No Options can be granted during the Closed Periods."

6. Article 5.3 of the Plan shall be read as follows:

"Options granted to French Beneficiaries shall have a subscription price per Share equal to the Fair Market Value as at the Date of Grant of the underlying Share. The subscription price may not be amended during the term of the Option."

7. Article 8 of the Plan is supplemented by the following:

"Save for the payment of the nominal value of a Share that a French Beneficiary may be required to pay upon Vesting of a Restricted Share Unit (provided that such nominal value does not exceed 5% of the Fair Market Value of a Vested Share at the time of Vesting, in which case the payment from the French Beneficiary shall be capped at 5% of such Fair Market Value), an Holder shall not be required to pay any price upon Vesting of a Restricted Share Unit. Any possibility for the Administrator to provide for a price in respect of a Restricted Share Unit is then not applicable to French Beneficiary. Any reference to price in respect of a Restricted Share Unit in the Plan is amended accordingly.

During the Vesting Period, a Restricted Share Unit shall not include any rights attributable to the shareholder status, including notably the right to vote.

Notwithstanding the foregoing, a Restricted Share Unit may not Vest before one year as from the Date of Grant. In addition, the Holding Period will not end before the 2nd anniversary of the Date of Grant. Following the end of the Holding Period, the Shares (issued or transferred upon the Vesting of Restricted Share Unit(s)) may be freely sold, transferred or otherwise disposed, except during the Closed Periods, during which the sale of the Shares is prohibited.

No cash payment may be made by the Company upon Vesting in order to satisfy the rights of the French Beneficiary under the relevant Restricted Share Unit(s). The possibility where the Administrator may elect to settle a Restricted Share Unit in cash in the manner described in Article 8.3 of the Plan is not applicable to French Beneficiary. Any reference in respect of such cash payment in the Plan is deleted accordingly.

Notwithstanding the foregoing, no Holding Period would be applicable to the Shares in case of death of the Holder or if the Holder suffers from a Defined Disability."

8. Article 10 of the Plan is supplemented by the following:

"Notwithstanding anything to the contrary in the Plan, in the event of a French Beneficiary's death, his/ her personal representatives may request, within six (6) months from the date of death, the exercise of the deceased French Beneficiary's Award(s) and the transfer of the underlying Shares by paying the exercise price in accordance with the terms and conditions of the Plan.

Under French law, Awards may not be sold, assigned or transferred and there is no exception to this rule. Any reference to the possibility to transfer, assign or transfer the Awards (including, without limitation, by gift to family members) in the Plan is then deleted accordingly."

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9. Article 10.3 of the Plan is supplemented by the following:

"Notwithstanding the above, Shares issuable upon exercise of any Option shall not be subject to restrictions or any kind of vesting. However, the Administrator may, in its sole discretion, decide to provide for a holding period, up to a maximum of 3 (three) years, during which the Holder will not be entitled to sell his or her Shares. In addition, the sale of Shares (issued upon exercise of any Option or Restricted Share Unit) during the Closed Periods is prohibited. The sale of Shares (issued upon exercise of any Option) during the twenty dealing days period after the day on which a dividend is paid by the Company or an increase in its share capital is decided is prohibited.

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## Exhibit 4.10

**LI-CYCLE HOLDINGS CORP.<br>2021 INCENTIVE AWARD PLAN**

**RSU AWARD <br>GRANT NOTICE AND AGREEMENT**

Li-Cycle Holdings Corp., a corporation organized under the laws of the Province of Ontario (the "<u>Company</u>"), pursuant to the Plan (as defined in <u>Exhibit A</u> attached hereto), hereby grants to the holder listed below ("<u>Participant</u>") the number of Restricted Share Units set forth below (the "<u>RSUs</u>"). The RSUs are subject to the terms and conditions set forth in this Restricted Share Unit Grant Notice (the "<u>Grant Notice</u>"), the Restricted Share Unit Agreement attached hereto as <u>Exhibit A</u> (the "<u>Agreement</u>"), and the Plan, each of which is incorporated herein by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Grant Notice and the Agreement.

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Participant:** | [Insert Name] |
| &nbsp;&nbsp;**Grant Date:** | [Insert Grant Date] |
| &nbsp;&nbsp;**Number of RSUs:** | [Insert Number] |
| &nbsp;&nbsp;**Vesting Schedule:** | Vesting Date<br>Incremental Vesting<br>Cumulative Vesting<br>[date]<br>[]%<br>[]%<br>[date]<br>[]%<br>[]%<br>[date]<br>[]%<br>[]% |

---

By Participant's signature below, Participant agrees to be bound by the terms and conditions of the Plan, the Agreement and the Grant Notice. Participant has reviewed the Agreement, the Plan and the Grant Notice in their entirety, has had an opportunity to obtain the advice of counsel prior to executing the Grant Notice and fully understands all provisions of the Grant Notice, the Agreement, and the Plan. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan, the Grant Notice or the Agreement.

---

| | | | |
|:---|:---|:---|:---|
| **LI-CYCLE HOLDINGS CORP.** | **LI-CYCLE HOLDINGS CORP.** | **PARTICIPANT** | **PARTICIPANT** |
| By: |  | By: |  |
| Name: | [ ] | Name: | [ ] |
| Title: | [ ] |  |  |

---

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**<u>EXHIBIT A</u>**

**<u>TO RSU AWARD GRANT NOTICE AND AGREEMENT</u>**

**RSU AWARD AGREEMENT <br>FOR U.S. PARTICIPANTS**

Pursuant to the Company's 2021 Incentive Award Plan, as amended from time to time (the "<u>Plan</u>") and the Grant Notice to which this Agreement is attached, the Company has granted to Participant the number of RSUs set forth in the Grant Notice.

**ARTICLE I. <br>GENERAL**

<u>Section 1.1</u> <u>Defined Terms</u>. Capitalized terms not specifically defined herein shall have the meanings specified in the Plan or the Grant Notice. For purposes of this Agreement, the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Cause</u>" shall mean a Company Group Member having "Cause" to terminate Participant's employment or services, as such term is defined in any relevant employment or consulting agreement between Participant and a Company Group Member; provided that, in the absence of such agreement containing such definition, a Company Group Member shall have "Cause" to terminate Participant's employment or services upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Participant's commission of any act or omission that results in, or may reasonably be expected to result in, a conviction of (or plea of no contest or *nolo contendere* to) any felony or indictable offence (other than in connection with a traffic violation that does not result in imprisonment) under any provincial, state, federal or foreign law or any crime involving moral turpitude or dishonesty or that has or could have the effect, in the Company's reasonable and good faith determination, of causing material reputational or other material harm or damage to the Company Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Participant's commission of an act of fraud, embezzlement, misappropriation of funds, misrepresentation, malfeasance, breach of fiduciary duty or other willful and material act of misconduct, in each case, against any Company Group Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)any willful, material damage to any property of a Company Group Member by Participant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Participant's willful failure to (A) substantially perform Participant's material job functions (other than any such failure resulting from Participant's Disability) or (B) carry out or comply with a lawful and reasonable directive of a Company Group Member, in each case, which failure has not been cured (or cannot be cured) within fifteen (15) days after the Company gives written notice to Participant regarding such failure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Participant's breach of any Company policy which materially harms the Company Group, which breach has not been cured (or cannot be cured) within fifteen (15) days after the Company gives written notice to Participant regarding such failure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)Participant's unlawful use (including being under the influence) or possession of illegal drugs, or excessive use of alcohol, in each case that materially impairs Participant's ability to perform Participant's duties contemplated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)any negligent or reckless act by Participant resulting in or causing material reputational or other material harm or damage to the Company Group, in the good faith reasonable judgment of the Company; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)Participant's breach of any material provision of any written agreement between Participant and any Company Group Member, and failure to cure such breach (if capable of cure) within fifteen (15) days after the Company gives written notice to Participant regarding such breach.

Whether or not an event giving rise to "Cause" occurs for purposes of this definition (for Participants who do not have an employment or consulting agreement that includes a definition of Cause) will be determined by the Board in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Company Group</u>" shall mean the Company and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Company Group Member</u>" shall mean each member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Disability</u>" shall have the meaning ascribed to such term in any relevant employment agreement between Participant and a Company Group Member; *provided* that, in the absence of such agreement containing such definition, "Disability" shall mean the disability of Participant such as would entitle the Participant to receive disability income benefits pursuant to the long-term disability plan of the Company Group Member then covering Participant or, if no such plan exists or is applicable to Participant, the permanent and total disability of Participant within the meaning of Section 22(e)(3) of the Code.

<u>Section 1.2</u> <u>Incorporation of Terms of Plan</u>. The RSUs are subject to the terms and conditions set forth in this Agreement, the special provisions for the Participant's country of residence if such Participant resides or provides services outside the United States or Canada (other than France), if applicable, attached hereto as <u>Exhibit B</u> (the "<u>Foreign Appendix</u>"), the special provisions for France if such Participant resides or provides services in France, if applicable, attached hereto as <u>Exhibit C</u> (the "<u>French Subplan</u>"), and the Plan, each of which is incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall control. In the event of any inconsistency between the Plan and/or this Agreement with the Foreign Appendix or the French Subplan, the terms of the Foreign Appendix, as applicable, or French Subplan, as applicable, shall control.

**ARTICLE II. <br>AWARD OF RESTRICTED SHARE UNITS AND DIVIDEND EQUIVALENTS**

<u>Section 2.1</u> <u>Award of RSUs and Dividend Equivalents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In consideration of Participant's past and/or continued employment with or service to a Company Group Member and for other good and valuable consideration, effective as of the grant date set forth in the Grant Notice (the "<u>Grant Date</u>"), the Company has granted to Participant the number of RSUs set forth in the Grant Notice, upon the terms and conditions set forth in the Grant Notice, the Plan and this Agreement, subject to adjustment as provided in Section 12.2 of the Plan. Each RSU represents the right to receive one Share at the times and subject to the conditions set forth herein. However, unless and until the RSUs have vested, Participant will have no right to the common shares of the Company ("<u>Shares</u>") subject thereto. Prior to the actual delivery of any Shares, the RSUs will represent an unsecured obligation of the Company, payable only from the general assets of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company hereby grants to Participant an Award of Dividend Equivalents with respect to each RSU granted pursuant to the Grant Notice for all ordinary cash dividends that are paid to all or substantially all holders of the outstanding Shares between the Grant Date and the date when the applicable RSU is distributed or paid to Participant or is forfeited or expires. Participant shall be credited for such Dividend Equivalents with such number of additional RSUs on each dividend payment date for which Participant held RSUs as of the record date for the applicable dividend, as results from dividing: (i) the amount obtained by multiplying the amount of the dividend declared and paid per Share by the number of RSUs held by Participant on such record date, by (ii) the Fair Market Value of the Shares on the dividend payment date, with fractions computed to three decimal places. Each additional RSU that results from such crediting of Dividend Equivalents granted hereunder shall be subject to the same

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vesting, distribution or payment, adjustment and other provisions that apply to the underlying RSU to which such additional RSU relates.

<u>Section 2.2</u> <u>Vesting of RSUs and Dividend Equivalents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Participant's continued employment with or service to a Company Group Member on each applicable vesting date and subject to the terms of this Agreement, including, without limitation, <u>Section 2.2(b)</u>, the RSUs shall vest in such amounts and at such times as are set forth in the Grant Notice. Each additional RSU that results from crediting of Dividend Equivalents pursuant to <u>Section 2.1(b)</u> shall vest whenever the underlying RSU to which such additional RSU relates vests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event Participant incurs a Termination of Service, except as otherwise provided in Section 2.2(c), or as may be otherwise provided by the Administrator or as set forth in a written agreement between Participant and the Company, including, without limitation, any employment agreement between Participant and the Company, Participant shall immediately forfeit any and all RSUs and Dividend Equivalents granted under this Agreement that have not vested or do not vest on or prior to the date on which such Termination of Service occurs, and Participant's rights in any such RSUs and Dividend Equivalents that are not so vested shall lapse and expire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event Participant incurs a Termination of Service without Cause upon or within twelve (12) months following a Change in Control, such Participant's RSUs shall be fully vested as of immediately prior to such Termination of Service.

<u>Section 2.3</u> <u>Settlement of RSUs</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Participant's RSUs shall be settled in Shares (either in book-entry form or otherwise) as soon as administratively practicable following the vesting of the applicable RSU pursuant to <u>Section 2.2</u>, and, in any event, no later than March 15th of the calendar year following the year in which such vesting occurred (for the avoidance of doubt, this deadline is intended to comply with the "short-term deferral" exemption from Section 409A). Notwithstanding the foregoing, the Company may delay a settlement of RSUs if it reasonably determines that such settlement will violate federal or provincial securities laws or any other Applicable Law, *provided* that such distribution or payment shall be made at the earliest date at which the Company reasonably determines that the settlement will not cause such violation, as required by Treasury Regulation Section 1.409A-2(b)(7)(ii), and *provided further* that no settlement shall be delayed under this <u>Section 2.3(a)</u> if such delay will result in a violation of Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All settlements shall be made by the Company in the form of whole Shares, and any fractional share shall be rounded down to the next whole Share in accordance with Section 10.4(d) of the Plan.

<u>Section 2.4</u> <u>Conditions to Issuance of Shares</u>. The Company shall not be required to issue or deliver any Shares underlying the RSUs prior to the fulfillment of all of the following conditions: (a) the admission of such Shares to listing on all stock exchanges on which such Shares are then listed, (b) the completion of any registration or other qualification of such Shares (or the distribution thereof, as applicable) under any provincial, state or federal law or under rulings, rules or regulations of the Securities and Exchange Commission, any Canadian securities regulatory authority or other governmental regulatory body, that the Administrator shall, in its absolute discretion, deem necessary or advisable, (c) the obtaining of any approval or other clearance from any provincial, state or federal governmental agency that the Administrator shall, in its absolute discretion, determine to be necessary or advisable, and (d) the receipt of full payment of any applicable withholding tax in accordance with <u>Section 2.5</u> by the Company Group Member with respect to which the applicable withholding obligation arises.

<u>Section 2.5</u> <u>Tax Withholding</u>. Notwithstanding any other provision of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon vesting and settlement of Participant's RSUs, the Company shall instruct any brokerage firm determined acceptable to the Company for such purpose to sell on Participant's behalf a whole number of Shares from those Shares that are subject to the Award as the Company determines to be

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appropriate to generate cash proceeds sufficient to satisfy any applicable federal, provincial, state, local and foreign taxes (including, including, without limitation, the employee portion of any FICA obligation) required by Applicable Law to be withheld, and to remit the proceeds of such sale to the Company Group Member with respect to which the withholding obligation arises. Participant's acceptance of this Award constitutes Participant's instruction and irrevocable authorization to the Company and such brokerage firm to complete the transactions described in this <u>Section 2.5(a)</u>, including the transactions described in the previous sentence, as applicable. In the event of the occurrence of any broker-assisted sale of Shares in connection with the payment of withholding taxes as provided in this <u>Section 2.5(a)</u>: (i) any Shares to be sold through a broker-assisted sale will be sold on the day the tax withholding obligation arises, or as soon thereafter as practicable; (ii) such Shares may be sold as part of a block trade with other participants in the Plan in which all participants receive an average price; (iii) Participant will be responsible for all broker's fees and other costs of sale, and Participant agrees to indemnify and hold the Company harmless from any losses, costs, damages, or expenses relating to any such sale; (iv) to the extent the proceeds of such sale exceed the applicable tax withholding obligation, the Company agrees to pay such excess in cash to Participant as soon as reasonably practicable; (v) Participant acknowledges that the Company or its designee is under no obligation to arrange for such sale at any particular price, and that the proceeds of any such sale may not be sufficient to satisfy the applicable tax withholding obligation; and (vi) in the event the proceeds of such sale are insufficient to satisfy the applicable tax withholding obligation, Participant agrees to pay immediately upon demand to the Company Group Member with respect to which the withholding obligation arises, an amount in cash sufficient to satisfy any remaining portion of the applicable Company Group Member's withholding obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Participant is ultimately liable and responsible for, and, to the extent permitted by Applicable Law, agrees to indemnify and keep indemnified the Company Group from, all taxes owed in connection with the Award, regardless of any action any Company Group Member takes with respect to any tax withholding obligations that arise in connection with the Award. No Company Group Member makes any representation or undertaking regarding the treatment of any tax withholding in connection with the awarding, vesting or settlement of the Award or the subsequent sale of Shares. The Company Group does not commit and is under no obligation to structure the Award to reduce or eliminate Participant's tax liability.

<u>Section 2.6</u> <u>Rights as Shareholder</u>. Neither Participant nor any Person claiming under or through Participant will have any of the rights or privileges of a shareholder of the Company in respect of any Shares deliverable hereunder unless and until certificates representing such Shares (which may be in book-entry form) will have been issued and recorded on the records of the Company or its transfer agents or registrars and delivered to Participant (including through electronic delivery to a brokerage account). Except as otherwise provided herein, after such issuance, recordation and delivery, Participant will have all the rights of a shareholder of the Company with respect to such Shares, including, without limitation, the right to receipt of dividends and distributions on such Shares.

**ARTICLE III.<br>OTHER PROVISIONS**

<u>Section 3.1</u> <u>Administration</u>. The Administrator shall have the power to interpret the Plan, the Grant Notice and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan, the Grant Notice and this Agreement as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all interpretations and determinations made by the Administrator will be final and binding upon Participant, the Company and all other interested Persons. To the extent allowable pursuant to Applicable Law, no member of the Committee or the Board will be personally liable for any action, determination or interpretation made with respect to the Plan, the Grant Notice or this Agreement.

<u>Section 3.2</u> <u>RSUs Not Transferable</u>. The RSUs may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution, unless and until the Shares underlying the RSUs have been issued, and all restrictions applicable to such Shares have lapsed. No RSUs or any interest or right therein or part thereof shall be liable for the debts, contracts or engagements of Participant or his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary

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or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including, including, without limitation, bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by the preceding sentence.

<u>Section 3.3</u> <u>Adjustments</u>. The Administrator may accelerate the vesting of all or a portion of the RSUs in such circumstances as it, in its sole discretion, may determine. Participant acknowledges that the RSUs are subject to adjustment, modification and termination in certain events as provided in this Agreement and the Plan, including Section 12.2 of the Plan.

<u>Section 3.4</u> <u>Notices</u>. Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of the Secretary of the Company at the Company's principal office, and any notice to be given to Participant shall be addressed to Participant at Participant's last address reflected on the Company's records. By a notice given pursuant to this <u>Section 3.4</u>, either party may hereafter designate a different address for notices to be given to that party. Any notice shall be deemed duly given when sent via email or when sent by certified or registered mail (return receipt requested) and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service or Canada Post, as applicable.

<u>Section 3.5</u> <u>Titles</u>. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

<u>Section 3.6</u> <u>Governing Law</u>. The laws of the Province of Ontario shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws.

<u>Section 3.7</u> <u>Conformity to Securities Laws</u>. Participant acknowledges that the Plan, the Grant Notice, this Agreement, the Foreign Appendix, if applicable, and the French Subplan, if applicable, are intended to conform to the extent necessary with all Applicable Laws, including, without limitation, the provisions of the Securities Act, the Exchange Act, the Securities Act (Ontario) and any and all regulations and rules promulgated thereunder by the Securities and Exchange Commission or the Ontario Securities Commission, as applicable, and provincial or state securities laws and regulations. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the RSUs are granted, only in such a manner as to conform to Applicable Law. To the extent permitted by Applicable Law, the Plan, the Grant Notice, this Agreement, the Foreign Appendix, if applicable, and the French Subplan, if applicable, shall be deemed amended to the extent necessary to conform to Applicable Law.

<u>Section 3.8</u> <u>Amendment, Suspension and Termination</u>. To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Administrator or the Board*, provided* that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall adversely affect the RSUs in any material way without the prior written consent of Participant.

<u>Section 3.9</u> <u>Successors and Assigns</u>. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth in <u>Section 3.2</u> and the Plan, this Agreement shall be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.

<u>Section 3.10</u> <u>Limitations Applicable to Section 16 Persons</u>. Notwithstanding any other provision of the Plan or this Agreement, if Participant is subject to Section 16 of the Exchange Act, the Plan, the RSUs (including RSUs that result from the deemed reinvestment of Dividend Equivalents), the Dividend Equivalents, the Grant Notice and this Agreement shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To the extent permitted by Applicable Law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.

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<u>Section 3.11</u> <u>Not a Contract of Employment</u>. Nothing in this Agreement, the Foreign Appendix, if applicable, the French Subplan, if applicable, or in the Plan shall confer upon Participant any right to continue to serve as an employee or other service provider of any Company Group Member or shall interfere with or restrict in any way the rights of any Company Group Member, which rights are hereby expressly reserved, to discharge or terminate the services of Participant at any time for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written agreement between a Company Group Member and Participant.

<u>Section 3.12</u> <u>Entire Agreement</u>. The Plan, the Grant Notice and this Agreement (including, including, without limitation, any exhibit hereto) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof.

<u>Section 3.13</u> <u>Section 409A</u>. This Award is not intended to constitute "nonqualified deferred compensation" within the meaning of Section 409A. However, notwithstanding any other provision of the Plan, the Grant Notice or this Agreement, if at any time the Administrator determines that this Award (or any portion thereof) may be subject to Section 409A, the Administrator shall have the right in its sole discretion (without any obligation to do so or to indemnify Participant or any other Person for failure to do so) to adopt such amendments to the Plan, the Grant Notice or this Agreement, or adopt other policies and procedures (including, including, without limitation, amendments, policies and procedures with retroactive effect), or take any other actions, as the Administrator determines are necessary or appropriate for this Award either to be exempt from the application of Section 409A or to comply with the requirements of Section 409A.

<u>Section 3.14</u> <u>Agreement Severable</u>. In the event that any provision of the Grant Notice or this Agreement is held invalid or unenforceable, such provision will be severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions of the Grant Notice or this Agreement.

<u>Section 3.15</u> <u>Limitation on Participant's Rights</u>. Participation in the Plan confers no rights or interests other than as herein provided. This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and shall not be construed as creating a trust. Neither the Plan nor any underlying program, in and of itself, has any assets. Participant shall have only the rights of a general unsecured creditor of the Company with respect to amounts credited and benefits payable, if any, with respect to the RSUs and Dividend Equivalents.

<u>Section 3.16</u> <u>Counterparts</u>. The Grant Notice may be executed in one or more counterparts, including by way of any electronic signature, subject to Applicable Law, each of which shall be deemed an original and all of which together shall constitute one instrument.

<u>Section 3.17</u> <u>Special Provisions for Restricted Share Units Granted to Participants Outside the United States</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Participant performs services for the Company outside of the United States, this Agreement shall be subject to the special provisions, if any, for the Participant's country of residence, as set forth in the Foreign Appendix or the French Subplan, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Participant relocates to France or one of the countries included in the Foreign Appendix during the life of this Agreement, special provisions for such country shall apply to the Participant, to the extent the Company determines that the application of such provisions is necessary or advisable in order to comply with applicable foreign and local law or facilitate the administration of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company reserves the right to impose other requirements on this Agreement, the RSUs and the Shares issued upon settlement of the RSUs, to the extent the Company determines it is necessary or advisable in order to comply with applicable foreign or local laws or facilitate the administration of the Plan, and to require the Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

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\* \* \* \* \*

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**<u>EXHIBIT B</u>**

**<u>TO RSU AWARD GRANT NOTICE AND AGREEMENT</u>**

**SPECIAL PROVISIONS FOR RSUS**

**GRANTED TO PARTICIPANTS OUTSIDE THE U.S.**

This <u>Exhibit B</u> includes additional terms applicable to Participants who reside or provide services to a Company Group Member in the countries identified below. These terms and conditions are in addition to those set forth in the Agreement to which this <u>Exhibit B</u> is attached and the Plan and to the extent there are any inconsistencies between these terms and conditions and those set forth in the Agreement, these terms and conditions shall prevail. Any capitalized term used in this <u>Exhibit B</u> without definition shall have the meaning ascribed to such term in the Plan or the Agreement, as applicable.

This Foreign Appendix also includes information relating to exchange control and other issues of which the Participant should be aware with respect to his or her participation in the Plan. The information is based on the exchange control, securities and other laws in effect in the respective countries as of September 2021. Such laws are often complex and change frequently. As a result, the Company strongly recommends that the Participant does not rely on the information herein as the only source of information relating to the consequences of participation in the Plan because the information may be out of date at the time the RSUs are settled or Shares acquired under the Plan are sold.

In addition, the information is general in nature and may not apply to the particular situation of the Participant, and the Company is not in a position to assure the Participant of any particular result. Accordingly, the Participant is advised to seek appropriate professional advice as to how the relevant laws in his or her country may apply to his or her situation. Finally, if the Participant is a citizen or resident of a country other than the one in which he or she is currently working, the information contained herein may not be applicable to the Participant.

**CHINA**

1. The Company and/or any of the Company Group Member will not be liable for any failure by Participant in relation to receipt of any proceeds under the Plan due to any legal or practical restrictions on conversion or remittance of foreign exchanges where applicable.

2. Data Privacy

In addition to Section 10.9 in the Plan, Participant acknowledges that some of his/her personal information that the Company and its Subsidiaries will process is sensitive, such as the identification number and details of all the Awards. However, Participant's participation under the Plan will not be able to effect or continue if such sensitive personal information fails to be processed. Acknowledging the harm that may be caused to Participant's personal or property safety by any potential unauthorized disclosure or illegal use of the sensitive personal information, the Company and its Subsidiaries adopt, update and implement various technical, physical and administrative security policies and procedures in line with Applicable Laws to safeguard the confidentiality, privacy and integrity of Participant's sensitive personal information.

With respect to the transfer of Participant's personal information as stated above (which may involve cross-border transfer from the territory of China to elsewhere), the relevant information of the transferees will be made available to Participant before the transfer.

3. For purposes of this Foreign Appendix, "China" means the People's Republic of China but not including Hong Kong, Macau and Taiwan.

4. By accepting the RSUs, Participants understands and hereby consents to (i) the collection, holding, processing, use and transfer of his/her sensitive personal information as described in the Plan, the Grant Notice and the Agreement, (ii) the transfer and provision of his/her personal information as described in the Plan, the Grant Notice and the Agreement, and (iii) the transfer and provision of his/her personal information from the territory of the People's Republic of China to overseas parties as described in the Plan, the Grant Notice and the Agreement.

**GERMANY**

1.<u>Definition of Employee</u>. The definition of Employee shall, for the avoidance of doubt, include the legal representatives of the German group members.

2.<u>Taxes</u>. For the avoidance of doubt, taxes always include German social security contributions, and in this regard, Participant's portion.

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3.<u>Securities Law</u>. This offer does not require a securities prospectus (*Wertpapierprospekt*) to be submitted for approval to the German Federal Financial Supervisory Authority (*Bundesanstalt für Finanzdienstleistungsaufsicht* or *BaFin*).

4.<u>Exchange Control Information</u>. Cross-border payments in excess of €12,500 must be reported monthly to the German Central Bank (*Deutsche Bundesbank*). If Participant uses a German bank to transfer a cross-border payment in excess of €12,500 in connection with the sale of Shares acquired under the Plan, the bank will file the report for Participant. In addition, Participant must report any receivables, payables, or debts in foreign currency exceeding an amount of €5,000,000 on a monthly basis. Finally, Participant must report on an annual basis if Participant holds Shares that exceed 10% of the total voting capital of the Company.

5.<u>Consent to Personal Data Processing and Transfer</u>. By acceptance of the RSUs, the Participant acknowledges and consents to the collection, use, processing, recording, organization, structuring, storage, adaption or alteration, retrieval, disclosure and transfer of personal data as described below and in accordance with the Company privacy policy. The Company Group Members hold certain personal information, including the Participant's name, home address and telephone number, date of birth, social security number or other employee tax identification number, employment history and status, salary, nationality, job title, and any equity compensation grants or Shares awarded, cancelled, purchased, vested, unvested or outstanding in the Participant's favor, for the purpose of managing and administering the Plan ("<u>Data</u>"). The Company Group Members will transfer Data to any third parties assisting the Company in the implementation, administration and management of the Plan. The Company Group Members may also make the Data available to public authorities where required under locally applicable law. These recipients may be located in the United States, the European Economic Area, or elsewhere, which the Participant separately and expressly consents to, accepting that outside the European Economic Area, data protection laws may not be as protective as within. The Participant hereby authorizes the Company Group Members to collect, use, process, record, organize, structure, store, adapt or alter, retrieve, disclose and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing participation in the Plan, including any requisite transfer of such Data as may be required for the administration of the Plan on behalf of the Participant to a third party with whom the Participant may have elected to have payment made pursuant to the Plan. The Participant may, at any time, review Data, require any necessary amendments to it or withdraw the consent herein in writing or by e-mail contacting the Company through Participant's local human resources representative. However, withdrawing the consent may affect the Participant's ability to participate in the Plan and receive the benefits intended by the RSUs. Data will only be held as long as necessary to implement, administer and manage the Participant's participation in the Plan and any subsequent claims or rights.

**HONG KONG**

The contents of the Plan and any of the documents referred to therein (including but not limited to the Grant Notice and the Agreement) have not been reviewed by any regulatory authority in Hong Kong. Participants are advised to exercise caution in relation to the offer of RSUs. If Participants are in any doubt about any of the contents of this Plan, they should obtain independent professional advice.

This Plan does not constitute an offer or invitation to the public within the meaning of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32 of the Laws of Hong Kong) (the "<u>Companies Ordinance</u>") or the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong), and it is made on terms that only the qualifying person (as defined in the Companies Ordinance) to whom this invitation has been addressed is eligible to apply. RSUs offered in relation to the Plan may not be offered or sold in Hong Kong by means of any document, except in circumstances which do not result in the document being a "prospectus" as defined in the Companies Ordinance or which do not constitute an offer to the public within the meaning of that Ordinance.

No person may issue or possess for the purposes of issue, whether in Hong Kong or elsewhere, any advertisement, invitation or document relating to RSUs offered in relation to the Plan, which is directed at, or the contents of which are likely to be accessed or read by, the public of Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to RSUs which are or are intended to be disposed of only to persons outside Hong Kong.

**JAPAN**

1.<u>Securities Regulation</u>. The Company notifies the Participant, and the Participant acknowledges, that in connection with the Plan, the Agreement, the Grant Notice and ancillary documents to them, and RSUs and Shares being offered to the Participant, no notification under Article 4 of Financial Instruments and Exchange Act (the "<u>FIEA</u>") was made because the offering of RSUs and Shares falls under Article 2(3)(ii)(c) of FIEA and

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thus, falls under the solicitation for small number of investors (*syoninzuu muke kanyuu*) stipulated in Article 23-13(4)(i)(a) of FIFA.

2.<u>Exchange Control Information</u>. Notification under the Foreign Exchange and Foreign Trade Act shall be required, among other cases, where a cross-border payments in excess of JPY 30,000,000 was made.

**NORWAY**

This appendix includes additional terms and conditions that govern the RSUs, including Dividend Equivalents, granted to the Participant if the Participant is resident in Norway for tax purposes, or subject to the Norwegian Working Environment Act ("<u>WEA</u>"). Unless otherwise defined herein, the terms defined in the Plan and in the Agreement shall have the same meanings in this appendix. In the event of any conflict between the provisions of the Plan or of the Agreement and this appendix, the provisions of this appendix shall control.

1.<u>Defined Terms</u>. For the purposes of this appendix, the following terms have the following meanings:

"<u>Cause</u>" means, in respect of employees covered by the WEA, termination due to circumstances relating to the Employee (personal reasons) and summary dismissal in case of a gross breach of duty or other gross misconduct, and for Consultants, the definition of "Cause" in article 1.1(a) of this Agreement applies.

"<u>Disability</u>" means long-term and total disability of the Participant in accordance with the Norwegian National Insurance Act section 12-7.

"<u>Norwegian Affiliate</u>" means, as applicable, the Company's affiliate employing the Norwegian Participant.

"<u>Norwegian Participant</u>" means any Participant who is resident in Norway for tax purposes.

2.<u>Termination of Service</u>. When determining whether a leave of absence constitutes a termination of service, Norwegian legislation regarding leave of absence must be taken into due account.

3.<u>Granting of Awards</u>. When the Administrator selects who an Award shall be granted to, the requirements according to the Norwegian Equality and Anti-Discrimination Act and the WEA must be respected.

4.<u>Authority of Administrator</u>. The Administrator is given exclusive power to determine terms and conditions, including provisions relating to non-competition on an Award. If a non-competition clause is imposed for an Employee, the provisions in the WEA Chapter 14-A must be complied with, including a mandatory written statement.

5.<u>Norwegian Social Security and Taxes</u>. The Norwegian Affiliate is obligated to report the vesting of RSUs to the Norwegian Tax Administration (including RSUs that result from crediting of Dividend Equivalents), and the transfer of Shares to the Norwegian Participant under the Plan and to include the taxable benefit in the monthly individual reporting of salary and other benefits, due in the month following the taxable event, which is when the Norwegian Participant receives the Shares as settlement for the RSUs.

The Norwegian Participant shall be ultimately responsible to recognize any and all income earned from vesting of the RSUs (including RSUs that result from crediting of Dividend Equivalents) in the Participant's income tax return, including employee social security charges (Nrw: *trygdeavgift*) as applicable, for the respective taxation period in accordance with applicable Norwegian law and shall be responsible for any residual Norwegian individual income tax and employee social security charges, as the case may be, on any net taxable earnings for such taxation period in accordance with the Norwegian tax legislation. For the avoidance of doubt, the Norwegian Participant shall not be responsible for employer's social security (Nrw. *arbeidsgiveravgift*) payable by the Norwegian Affiliate in respect of the Norwegian Participant's income earned under the Plan or this Agreement.

6.<u>Method of Payment</u>. For the avoidance of doubt, the Norwegian Participants shall not be required to make or receive any payment under the Plan or this Agreement by way of check.

7.<u>Cash payment</u>. If cash payment is made to an Employee, holiday payment is deducted and paid the following year in accordance with the Norwegian Holidays Act. The payment is not subject to pension accrual.

8.<u>Data Privacy</u>. The legal basis for the processing of personal data is the General Data Protection Regulation (EU) 2016/679 "<u>GDPR</u>" art. 6 (1) (b), i.e., necessary for the performance of a contract. A Participant may, at any

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time, object to processing of the Data, request the right to data portability and lodge a complaint with a supervisory authority.

**SINGAPORE**

Notwithstanding anything to the contrary contained in the Plan, the Agreement, and the Grant Notice (collectively, the "<u>Documents</u>"), the Participant agrees, acknowledges, and confirms that:

1. none of the Documents have been lodged, registered, and/or reviewed by any regulatory authority in Singapore, and that no prospectus or any other document relating to this offer of RSUs made to the Participant has been lodged or registered with the Monetary Authority of Singapore;

2. the offer of RSUs being made to the Participant is made pursuant to the "no consideration" and/or "qualifying person" exemptions under section 272(1) and section 273(1)(i) (read with section 273(4)) of Singapore's Securities and Futures Act (Cap 289), and accordingly no prospectus or other document relating to the offer of RSUs being made to the Participant needs to be lodged or registered with the Monetary Authority of Singapore; and

3. the Documents have not been made with a view to any of the RSUs or Shares being subsequently offered for sale to another person, and none of the Documents or any other documents issued by the Participant in connection with any subsequent offer of sale of RSUs or Shares, or any transfer of RSUs or Shares, should under any circumstances be deemed a prospectus issued by the Company.

**SWEDEN**

This appendix includes additional terms and conditions that govern the RSUs (including RSUs that result from crediting of Dividend Equivalents) granted to the Participant if the Participant is resident for tax purposes in Sweden, or subject to the Swedish Employment Protection Act ("<u>EPA</u>"). Unless otherwise defined herein, the terms defined in the Plan and in the Agreement shall have the same meanings in this appendix. In the event of any conflict between the provisions of the Plan or of the Agreement and this appendix, the provisions of this appendix shall govern.

1.<u>Defined Terms</u>. For the purposes of this appendix, the following terms have the following meanings:

"<u>Cause</u>" means, in respect of employees covered by the EPA, termination due to circumstances relating to the Employee (personal reasons) and summary dismissal in case of a gross breach of duty or other gross misconduct, and for Consultants, the definition of "Cause" in article 1.1(a) of this Agreement applies.

"<u>Disability</u>" means long-term disability or sickness of the Participant where the Participant will never be able to work full-time, in accordance with the Swedish Social Insurance Code.

"<u>Swedish Affiliate</u>" means, as applicable, the Company's affiliate employing the Swedish Participant.

"<u>Swedish Participant</u>" means any Participant who is resident for tax purposes in Sweden.

2.<u>Discretionary Character</u>. Any economic benefits deriving from the Swedish Participant's participation in the Plan are entirely discretionary and shall not qualify as salary or as a component of the salary.

3.<u>Swedish Social Security and Taxes</u>. The Swedish Affiliate is obligated to notify the Swedish Tax Agency of the vesting of RSUs (including RSUs that result from crediting of Dividend Equivalents) and the transfer of Shares to the Swedish Participant under the Plan and to include the taxable benefit in the monthly individual PAYE reporting, due in the month following the taxable event (vesting).

The Swedish Participant shall be ultimately responsible to recognize any and all income earned from vesting of the RSUs (including RSUs that result from crediting of Dividend Equivalents) in the income tax return, including employee social security charges (Sw. *allmän pensionsavgift*) as applicable, for the respective taxation period in accordance with applicable Swedish law and shall be responsible for any residual Swedish individual income tax and employee social security charges, as the case may be, on any net taxable earnings for such taxation period in accordance with the Swedish tax rules and regulations. For the avoidance of doubt, the Swedish Participant shall not be responsible for employer social security (Sw. *arbetsgivaravgifter*) payable by the Swedish Affiliate in respect of income earned under the Plan or this Agreement.

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4.<u>Method of Payment</u>. For the avoidance of doubt, the Swedish Participants shall not be required to make or receive any payment under the Plan or this Agreement by way of check.

5.<u>Processing of personal data</u>. The legal basis for processing of the Participant's personal data is the GDPR art. 6 (1) (b), i.e., necessary for the performance of a contract to which the Participant is a party

**SWITZERLAND**

This appendix includes additional terms and conditions that govern the RSUs granted to the Participant if the Participant is resident for tax purposes in Switzerland. Unless otherwise defined herein, the terms defined in the Plan and in the Agreement shall have the same meanings in this appendix. In the event of any conflict between the provisions of the Plan or of the Agreement and this appendix, the provisions of this appendix shall govern.

1.<u>Defined Terms</u>. For the purposes of this appendix, the following terms have the following meanings:

"<u>Disability</u>" means retirement due to disability based on a final decision by the Swiss Federal Disability Insurance.

"<u>Swiss Affiliate</u>" means, as applicable, the Company Group Member employing the Swiss Participant.

"<u>Swiss Participant</u>" means any Participant who is resident for tax purposes in Switzerland.

2.<u>Discretionary Character</u>. Any economic benefits deriving from the Swiss Participant's participation in the Plan are entirely discretionary and shall not qualify as salary or as a component of the salary.

3.<u>Swiss Social Security and Taxes</u>.

As applicable, the Swiss Affiliate will provide the Swiss Participant with an annual salary statement (*Lohnausweis*) setting out (i) the gross annual income earned by the Swiss Participant during the relevant year, including income from participating in the Plan, (ii) the Swiss Participant's social security withholdings and, if applicable, (iii) the employer income tax withholding, plus an annex to the annual salary statement setting out certain of the economic terms of the Plan as determined by applicable Swiss law. The Swiss Affiliate shall have the right to notify the competent Swiss tax authorities of the grant of RSUs and the transfer of Shares to the Swiss Participant on the settlement date under the Plan and to provide a copy of the annual salary statement including the annex directly to the competent Swiss tax authorities.

The Swiss Participant shall be responsible to recognize any and all income earned from the grant, vesting, settlement or otherwise in connection with an Award under the Plan and this Agreement in their income statement for the respective taxation period in accordance with applicable Swiss law and shall be responsible for Swiss federal, cantonal and communal individual income tax and social security charges or corporate income tax, as the case may be, on any net taxable earnings for such taxation period in accordance with the Swiss federal tax rules and regulations, and in accordance with the cantonal tax rules of the place of residence of the Swiss Participant.

4.<u>Parties to the Agreement</u>.

The Agreement is exclusively agreed upon between the Company and the Swiss Participant. The Swiss Affiliate is not a party to the Agreement and does not assume nor cannot be held liable for any liabilities under the Plan or the Agreement, if not otherwise provided for by applicable Swiss mandatory law.

The Swiss Participant's sole contact and sole contractual partner regarding the Plan and the RSUs granted under the Agreement is the Company, and any rights and entitlements pursuant to the Plan and the RSUs are granted on an exclusively voluntary basis and do not create any claims against the Swiss Affiliate or any other affiliate. Even if there is a repeated grant of an Award and without express notification that the Award is made voluntarily, no legal claim for future grants exists. The offer or Award remains in the complete discretion of the Company. In particular, the Company reserves the right to determine in its full discretion the scope of beneficiaries and the conditions of the Plan.

5.<u>Notices</u>. For the avoidance of doubt, any notice shall be deemed duly given when sent via email or when sent by certified or registered mail (return receipt requested) and deposited (with postage prepaid) in a post office or

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branch post office regularly maintained by the Unites States Postal Service, Canada Post or the Swiss Post, as applicable.

**UNITED KINGDOM**

1.<u>General</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.This appendix shall apply to all UK Taxpayers (as defined below) and the terms of the Plan and the grant of Awards to UK Taxpayers under the Plan shall at all times be construed and interpreted in a manner consistent with this appendix.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.In the event that a Participant becomes an UK Taxpayer subsequent to the date of grant of Awards under the Plan, then, pursuant to Section 4.5 of the Plan, the terms of such Awards shall immediately be deemed to be amended in a manner consistent with this appendix.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.The terms of the Plan (including, for the avoidance of doubt, the terms of the Award Agreement), unless those terms are specified to apply to Participants residing outside of the UK, shall, save where otherwise specified below, apply in relation to Awards granted to an UK Taxpayer pursuant to the terms of this appendix, and references to the "Plan" shall include this appendix. If there is any inconsistency between any terms of this appendix and the terms of the Plan or the Award Agreement, the terms of this appendix shall apply to any Participant who is a UK Taxpayer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.In this appendix, the following expressions shall have the following meanings respectively:

*"*<u>Tax</u>*"* means all liability to income tax (or overseas equivalent) which the Company or any Subsidiary is liable to account for on behalf of the Participant directly to any taxation authority (including, but without limitation, through the pay-as-you-earn system) and all liability to social security which the Company or any Subsidiary is liable to account for on behalf of the Participant to any taxation authority (including, but without limitation, primary Class 1 (employee's) National Insurance contributions) which arises as a result of any amount payable to the Participant under the Plan;

*"*<u>UK Tax</u>*"* means taxation under the rules of the United Kingdom; and

*"*<u>UK Taxpayer</u>*"* means a Participant who is subject to UK Tax at the date of grant of Awards under the Plan, is expected to become subject to UK Tax following the grant of Awards or does become subject to UK Tax following the grant of Awards but prior to the lapse, forfeiture or cancellation of Awards held by the Participant.

2.<u>Eligibility</u>. In relation to the operation of the Plan in the UK, no Award shall be granted to any person who is not an Employee (including a non-employee director).

3.<u>Taxation</u>. Any liability of a Participant to Tax shall be for the account of the relevant Participant. The Participant shall indemnify the Company or any Subsidiary, his or her employer and any other person in respect of any amount of Tax arising as a result of his or her participation in the Plan (or which would not otherwise have arisen but for his or her participation in the Plan) and any penalties or interest that may be payable by the Company or any Subsidiary as a result of the Participant failing to discharge his or her obligation to pay Tax arising as a result of his or her participation in the Plan. If the Company so requires, the Participant will enter into (A) an agreement or election pursuant to paragraphs 3A or 3B of Schedule 1 to the UK Social Security Contributions and Benefits Act 1992 and/or (B) a joint election under Section 431(1) of the Income Tax (Earnings and Pensions) Act 2003 (as the Company shall determine) with the relevant member of the Group by the fourteenth day following the transfer of Shares to the Participant pursuant to the Award. The Company or the relevant Subsidiary, will pay the appropriate stamp duty on behalf of Participants in respect of any transfer of Shares on the vesting of an Award.

4.<u>Data Privacy</u>. By participating in the Plan, the Participant's attention is drawn to the Company's data privacy notice previously provided to them, which sets out how the Participant's personal data will be used and shared by the Company and any Subsidiaries. The Company's data privacy notice does not form part of the Plan and may be updated from time to time. Any such updates shall be notified to the Participant.

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**<u>EXHIBIT C</u>**

**<u>TO RSU GRANT NOTICE & AGREEMENT</u>**

**FRENCH SUBPLAN**

This Exhibit C (the "<u>French Subplan</u>") shall apply for each individual who is (i) a French Beneficiary (as such term is defined below) and (ii) resident in France from a French tax perspective and subject to French social security regime. Words and phrases in this French Subplan shall have the same meaning as defined in the Plan, except as provided below. To the extent there is any conflict between the Plan and this French Subplan, the terms of this French Subplan shall prevail.

The provisions of this French Sub-Plan shall apply exclusively to the grant of any Options and Restricted Share Units to the exclusion of any other type of Awards and notably any Share Appreciation Right, Restricted Share award, Others Share or Cash Based Award or a Dividend Equivalent award. Any reference to an Award in this French Sub-Plan shall then be considered as a reference to an Option or a Restricted Share Unit.

It is intended that the features of the Options, as amended under this French Sub-Plan, would comply with the provisions of Articles L.225-177 to L.225-186 of the French commercial code, articles 80 *bis* of the French tax code and Articles L.137-13 and L.137-14 of the French social security code in order to benefit from favourable tax and social security treatment for the Options; the provisions of this French SubPlan shall to the maximum extent possible be interpreted in a way consistent with this objective.

In addition, it is intended that the features of the Restricted Share Units, as amended under this French SubPlan, would comply with the provisions of Articles L.225-197-1 to L.225-197-5 of the French commercial code, Article 80 *quaterdecies* of the French tax code and Articles L.137-13 and L.137-14 of the French social security code in order to benefit from favourable tax and social security treatment for the Restricted Share Units; the provisions of this French SubPlan shall to the maximum extent possible be interpreted in a way consistent with this objective.

1. No Award shall be granted under this Appendix more than seventy-six (76) months after the Effective Date.

2. The following new definitions are added to those stated in Article 2 of the Plan:

"<u>Closed Period</u>" means: (i) the thirty (30) calendar days before the announcement of an intermediate financial report or a year-end financial report that the Company is required to make public; and (ii) for the members of the board, members of the directory board, general manager, deputy general manager (respectively *membres du conseil d'administration ou de surveillance, membres du directoire, directeur général* or *directeur général délégué*) or for employees of the Group Member who have knowledge of privileged information (within the meaning of article 7 of the EU Regulation # 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse) until such information has been made public;

"<u>Date of Grant</u>" means the date on which the granting of an Award is authorized, or such other date as may be specified in such authorization.

"<u>Defined Disability</u>" means the circumstance where an Holder is recognised as a disabled employee of the second or third category within the meaning of Article L.341-4 of the French social security code.

"<u>French Beneficiary</u>" means an Eligible Individual which is (i) a salaried employee of a French Group Member or (ii) a corporate officer of a French Group Member holding the duties of chairman of the board, general manager, deputy general manager, member of the directory board or manager (respectively *président du conseil d'administration*, *directeur général*, *directeur général délégué*,

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*membre du directoire* or *gérant*) <sup>(1)</sup> who, (a) on the Date of Grant, does not own individually more than 10% of the Company's issued share capital at that time, and (b) shall not hold, as the result of being granted an Restricted Share Unit, own 10% or more of the Company' issued share capital at that time.

"Group Member" means: (i) the Company; (ii) a company in which the Company holds, directly or indirectly, at least 10 per cent of the share capital or voting rights; or (iii) a company holding directly or indirectly at least 10 per cent of the share capital or voting rights of the Company;

and the French Group Member shall be construed accordingly.

"<u>Holding Period</u>" means, in respect of Restricted Share Unit(s), such period as specified by the Administrator but which is no less than one year from the transfer of the Share to the Eligible Individual upon Vesting, during which the Share cannot be sold, transferred or otherwise disposed of and being specified that such holding period may be reduced (or even deleted) provided that the cumulative duration of the Vesting Period and such Holding Period is at least equal to 2 years as from the Date of Grant;

"<u>Vesting Period</u>" means, in respect of Restricted Share Unit(s), the period(s), as specified by the Administrator, from the Date of Grant to the normal date(s) of vesting of the Award but which is no less than one year from the Date of Grant to the date of Vesting, and Vest and Vested shall be construed accordingly.

3. Article 3 of the Plan is supplemented by the following:

"Notwithstanding any other rule of the Plan, Shares available for Restricted Share Unit under the Plan (including, for the avoidance of doubt, the Substitute Awards) shall not represent more than 10% of the share capital of the Company (the "***French Restricted Share Unit Absolute Share Limit***"). For the purposes of the computation of the French Absolute Share Limit, all the Restricted Share Unit that have already lapsed, terminated or expired and all the Restricted Share Unit which have already been transferred to the Eligible Individual who has been selected by the Committee to participate in the Plan and granted a Restricted Share Unit pursuant to the Plan (and which are no longer subject to any Vesting Period or Holding Period) shall be disregarded.

Notwithstanding any other rule of the Plan, Shares available for Option under the Plan shall not represent more than one third of the share capital of the Company (the "***French Option Absolute Share Limit***") at the time of the Date of Grant. For the purposes of this limitation, all the Options that have already lapsed or which have already been exercised shall be disregarded."

4. Article 5 of the Plan is supplemented by the following:

"All Shares issuable upon the exercise of Options shall have a nominative form (*titres nominatifs*) or shall be registered in a specific "mentioned by name account" (*compte-titres nominatif*) in the Company's register."

5. Article 5.1 supplemented by the following:

"No Options can be granted during the Closed Periods."

6. Article 5.3 of the Plan shall be read as follows:

"Options granted to French Beneficiaries shall have a subscription price per Share equal to the Fair Market Value as at the Date of Grant of the underlying Share. The subscription price may not be amended during the term of the Option."

7. Article 8 of the Plan is supplemented by the following:

<sup>(1)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Subject, for corporate officers, to compliance with Articles L. 22-10-58 and L. 22-10-60 of the French commercial code.

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"Save for the payment of the nominal value of a Share that a French Beneficiary may be required to pay upon Vesting of a Restricted Share Unit (provided that such nominal value does not exceed 5% of the Fair Market Value of a Vested Share at the time of Vesting, in which case the payment from the French Beneficiary shall be capped at 5% of such Fair Market Value), an Holder shall not be required to pay any price upon Vesting of a Restricted Share Unit. Any possibility for the Administrator to provide for a price in respect of a Restricted Share Unit is then not applicable to French Beneficiary. Any reference to price in respect of a Restricted Share Unit in the Plan is amended accordingly.

During the Vesting Period, a Restricted Share Unit shall not include any rights attributable to the shareholder status, including notably the right to vote.

Notwithstanding the foregoing, a Restricted Share Unit may not Vest before one year as from the Date of Grant. In addition, the Holding Period will not end before the 2nd anniversary of the Date of Grant. Following the end of the Holding Period, the Shares (issued or transferred upon the Vesting of Restricted Share Unit(s)) may be freely sold, transferred or otherwise disposed, except during the Closed Periods, during which the sale of the Shares is prohibited.

No cash payment may be made by the Company upon Vesting in order to satisfy the rights of the French Beneficiary under the relevant Restricted Share Unit(s). The possibility where the Administrator may elect to settle a Restricted Share Unit in cash in the manner described in Article 8.3 of the Plan is not applicable to French Beneficiary. Any reference in respect of such cash payment in the Plan is deleted accordingly.

Notwithstanding the foregoing, no Holding Period would be applicable to the Shares in case of death of the Holder or if the Holder suffers from a Defined Disability."

8. Article 10 of the Plan is supplemented by the following:

"Notwithstanding anything to the contrary in the Plan, in the event of a French Beneficiary's death, his/ her personal representatives may request, within six (6) months from the date of death, the exercise of the deceased French Beneficiary's Award(s) and the transfer of the underlying Shares by paying the exercise price in accordance with the terms and conditions of the Plan.

Under French law, Awards may not be sold, assigned or transferred and there is no exception to this rule. Any reference to the possibility to transfer, assign or transfer the Awards (including, without limitation, by gift to family members) in the Plan is then deleted accordingly."

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9. Article 10.3 of the Plan is supplemented by the following:

"Notwithstanding the above, Shares issuable upon exercise of any Option shall not be subject to restrictions or any kind of vesting. However, the Administrator may, in its sole discretion, decide to provide for a holding period, up to a maximum of 3 (three) years, during which the Holder will not be entitled to sell his or her Shares. In addition, the sale of Shares (issued upon exercise of any Option or Restricted Share Unit) during the Closed Periods is prohibited. The sale of Shares (issued upon exercise of any Option) during the twenty dealing days period after the day on which a dividend is paid by the Company or an increase in its share capital is decided is prohibited.

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## Exhibit 4.15

**AMENDMENT TO GROUND LEASE AGREEMENT**

This AMENDMENT TO GROUND LEASE AGREEMENT (this **"Amendment**") is made as of this 9<sup>th</sup> day of June, 2022 ("**Effective Date**"), between **RIDGEWAY PROPERTIES I, LLC**, a New York limited liability company, with offices c/o Conductor Property Management, LLC, 1010 Lee Road, Rochester, NY 14606 ("**Lessor**") and **LI-CYCLE NORTH AMERICA HUB, INC.**, a Delaware corporation, 100 Latona Road, Suite 350, Rochester, New York 14652 ("**Lessee**").

**WHEREAS:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.Lessor leased, demised, and let to Lessee the Land, together with the: (i) non-exclusive right to discharge stormwater to Lessor's Detention Ponds; (ii) non-exclusive use of the Lessor Easements; and (iii) use of additional rights, privileges, easements and access rights ancillary to the Land as more particularly described in Lessee's Agreements (the Land, Lessor's Detention Ponds, the Lessor Easements, and Lessee's Agreements being collectively, the "**Premises**"), pursuant to the terms of that certain Ground Lease Agreement dated as of August 3, 2021 (the "**Lease**"), a memorandum of which was recorded in the Monroe County Clerk's Office on August 31, 2021 in Book 12551 of Deeds, Page 312.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.Lessor and Lessee wish to amend the terms of the Lease for purposes of, among other things, (a) permitting certain lease and leaseback arrangements that may be entered into by Lessee in connection with the financing of the project that will occur at the Premises; (b) providing that Lessee (rather than Lessor) shall have the option to demolish the Buildings upon termination of the Lease; (c) inserting a new legal description and map of the Premises; (d) inserting an updated list of required Lessee's Agreements; (e) confirming the Term Commencement Date and the Expiration Date; and (f) updating Lessee's address in the Notice provision.

&nbsp;&nbsp;&nbsp;&nbsp;**NOW THEREFORE**, in consideration of the mutual covenants expressed herein and in the Lease, and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.As of the Effective Date, the Lease is hereby amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)References to "a portion of all of the real property with a tax identification number 089.04-1-3.22" and "all of the real property with a tax identification number of 089.04-1-3.21" shall be deleted in their entirety and replaced with the following: "all of the real property with a tax identification number of 089.04-1-3.211".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)"Exhibit A" attached to the Lease is hereby deleted in its entirety and replaced with the new "Exhibit A" attached hereto The Land shall be "Lot 2" as identified thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)"Exhibit A-1" attached to the Lease is hereby deleted in its entirety and replaced with the new "Exhibit A-1" attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)"Exhibit A-2" attached to the Lease is hereby deleted in its entirety and replaced with the new "Exhibit A-2" attached hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)In **Section 1** (Term; Delivery Condition; Lessee Access Prior to Term Commencement Date), subsection "(A)" is amended, in part, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"The "***Original Term***" of this Lease shall commence on April 1, 2022 ("***Term Commencement Date***"). The Original Term shall continue thereafter until March 31, 2042 (the "***Expiration Date***"), subject to earlier termination as provided herein."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)In **Section 11** (Assignment and Subletting), the following new subsections "(D)" and "(E)" shall be inserted:

&nbsp;&nbsp;&nbsp;&nbsp;"(D)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any limitations, restrictions, Lessor consent, or notice requirements in this Lease, in Lessee's sole and absolute discretion, Lessee shall have the right to seek financial assistance from the County of Monroe Industrial Development Agency ("***COMIDA***") and, in connection with such financial assistance and without the prior consent of Lessor, to enter into one or more lease agreements with COMIDA pursuant to which Lessee would lease to COMIDA and lease back from COMIDA Lessee's leasehold interest arising under this Lease. Notwithstanding such lease and leaseback agreements, Lessee shall remain responsible for all obligations of Lessee under this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;(E)&nbsp;&nbsp;&nbsp;&nbsp;Anything to the contrary in this Lease notwithstanding, in connection with financing the development of and improvements to the Premises, in Lessee's sole and absolute discretion and without Lessor's prior consent, Lessee may enter into one or more lease agreements with one or more third-parties pursuant to which Lessee would lease and leaseback Lessee's leasehold interest arising under this Lease. Notwithstanding such lease and leaseback agreements, Lessee shall remain responsible for all obligations of Lessee under this Lease."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)As to **Section 14** (Leasehold Mortgage), Lessor hereby expressly acknowledges that this Amendment constitutes receipt of written notice of Lessee's transactions described in Section 11(D) and 11(E) added to Section 11 of the Lease by this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)**Section 15** (Surrender Upon Termination) is hereby deleted in its entirety and replaced with the following:

"Lessee shall, on the expiration or earlier termination of the Lease Term, surrender to Lessor the Land free of all claims, liens, and encumbrances, leases, tenancies and rights of occupancy of all parties and in substantially the same condition and repair as the same were in at the Commencement Date, reasonable wear and tear excepted. Upon termination and surrender to Lessor, Lessee shall remove all of Lessee's FF&E, including anything within the envelope of the Buildings, demolish the Buildings (if so elected by Lessee in Lessee's sole discretion), and decommission the Buildings if required by applicable Laws. If Lessee elects not to demolish the Buildings upon Lessee vacating the Premises, Lessee shall: (i) deliver to Lessor the Buildings in a safe, "broom clean" and sanitary condition and in compliance with Laws; and (ii) deliver to Lessor all keys, parking, and access cards to the Land and the

------

Buildings; and (iii) remove all signage placed on the Premises. Thereafter, the Buildings shall become the property of Lessor."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)In **Section 23** (Notices) the address for Lessee is deleted and replaced with:

Li-Cycle North America Hub, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c/o Li-Cycle Holdings Corp.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;207 Queen's Quay West, Suite 590

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Toronto, Ontario M5J 1A7

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canada

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention: General Counsel

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)In **Section 20** (Easements and Signage) the last sentence is deleted in its entirety and replaced with the following:

"Any easement, right-of-way, or other right or interest granted to Lessee pursuant to this Section 20 shall either: (i) in the instance that the Lease Term expires or the Lease is otherwise terminated, revert to the ownership and benefit of the Lessor; or (ii) in the instance that Lessee, or its successors or assigns, exercises the Option to Purchase, continue to exist in perpetuity."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)In **Section 39** (Limited Conditions Period; Conditions to Lessee's Right to Terminate) the following new sentence shall be inserted at the end of the last paragraph:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Notwithstanding the foregoing, at any point in time during the Conditions Period, Lessee may elect, in its sole discretion, to: (i) deem any or all of the Conditions satisfied; or (ii) waive the requirement that any or all of the Conditions be satisfied."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.**Defined Terms; Conflict.** Capitalized terms used herein and not otherwise defined shall have the meanings given in the Lease. If there is any conflict between the terms, conditions and provisions of this Amendment and the terms and conditions of the Lease, the terms, conditions and provisions of this Amendment shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.**No Further Amendment.** Except as expressly modified by this Amendment, all terms, covenants and provisions of the Lease shall remain unmodified and in full force and effect and are hereby expressly ratified and confirmed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.**Confirmation.** Lessee and Lessor represent and warrant that: (a) no defenses or offsets exist to the enforcement of the Lease and there are no unresolved or pending disputes or claims between Lessor and Lessee with respect to the Lease or the Premises; and (b) neither Lessee nor Lessor is in default in the performance of the Lease; and Lessor hereby acknowledges receipt of Lessee's required insurance for Lessee's Activities pursuant to Section 1(C) of the Lease; and (d) Lessor waives any Default and/or any right to terminate the Lease on account of any non-compliance by Lessee with Section 1(C) of the Lease prior to the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.**Entire Agreement.** This Amendment sets forth the entire agreement of the parties as to the subject matter hereof and supersedes all prior discussions and understandings between them. Neither this Amendment nor the Lease may be amended or rescinded in any manner except by an instrument in writing signed by a duly authorized officer or representative of each party hereto. This Amendment shall control over any conflicting terms

------

of the Lease. The parties confirm and acknowledge that there are no other promises, covenants, understandings, agreements, representations or warranties with respect to the subject matter of this Amendment except as expressly set forth herein. Each of the schedules or exhibits referred to herein (if any), is incorporated herein as if fully set forth in this Amendment. If any of the provision of this Amendment is found to be invalid, illegal or unenforceable by any court of competent jurisdiction, such provision shall be stricken and the remainder of this Amendment shall nonetheless remain in full force and effect unless striking such provision shall materially alter the intention of the parties. No waiver of any right under this Amendment shall be effective unless contained in a writing signed by a duly authorized officer or representative of the party sought to be charged with the waiver and no waiver of any right arising from any breach or failure to perform shall be deemed to be a waiver of any future right or of any other right arising under this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.**Authority.** Each person signing this Amendment on behalf of the respective parties represents and warrants that he or she is authorized to execute and deliver this Amendment, and that this Amendment will thereby become binding upon Lessor and Lessee, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.**Counterparts.** This Amendment may be executed in counterparts, each of which will be deemed to be an original, but all of which together will constitute one and the same document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.**Exhibits.** Exhibits A, A-1, and A-2 are attached to and made a part of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.**Memorandum of Amendment**. Simultaneously with the execution of this Amendment, Lessor and Lessee shall execute and record in the Monroe County Clerk's Office a Memorandum of this Amendment.

 **[Remainder of Page Intentionally Blank; Signature Page Follows]**

------

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year first above written.

**&nbsp;&nbsp;&nbsp;&nbsp;Lessor:**

**RIDGEWAY PROPERTIES I, LLC**,

a New York limited liability company

By: <u>/s/ Edward Brillante</u>____________________________

&nbsp;&nbsp;&nbsp;&nbsp;Name: Edward Brillante

&nbsp;&nbsp;&nbsp;&nbsp;Title: President

**Lessee:**

**LI-CYCLE NORTH AMERICA HUB, INC.**,

a Delaware corporation

By: <u>/s/ Christopher J. Biederman____________________________</u>

&nbsp;&nbsp;&nbsp;&nbsp;Name: Christopher J. Biederman

&nbsp;&nbsp;&nbsp;&nbsp;Title: CTO

------

**<u>Exhibit A</u>**

**<u>Map of Premises</u>**

![image_02.jpg](image_02.jpg)

------

**<u>Exhibit A-1</u>**

**<u>Legal Description for the Land</u>**

ALL THAT TRACT OR PARCEL OF LAND, situated in the Town of Greece, County of Monroe, and State of New York, being and described as Lot 2 of the Li-Cycle at Lidestri Subdivision Being a Resubdivision of Lot AR-3A1 and Lot AR-3A2 of the KPS Resubdivision Filed in Liber 356 of Maps, Page 62, as shown on a map filed in the Monroe County Cleerk's Office on March 25, 2022 in Liber 364 of Maps, Page 91.

Said Lot 2 is located southerly of McLaughlin Road a/k/a McLoughlin Road, and is of the size and dimensions shown on said map.

Together with the benefits of an easement over McLaughlin Road for ingress and egress to Ridgeway Avenue to and from the insured premises as granted in an Access Easement Agreement by and between Ridgway Properties 1, LLC and Li-Cycle North America Hub, Inc. dated March 18, 2022 and recorded March 21, 2022 in the Monroe County Clerk's Office in Liber 12638 of Deeds at page 634 and more particularly described as follows:

All that tract or parcel of land situated in part of Lot 80 and 89 of the 20,000 Acre Tract, Town of Greece, County of Monroe and State of New York and being more particularly as follows: ALL THAT TRACT OR PARCEL OF LAND SITUATED IN PART OF LOT 80 AND 89 OF THE 20,000 ACRE TRACT, TOWN OF GREECE, COUNTY OF MONROE AND STATE OF NEW YORK AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHEAST CORNER OF THE PARCEL OF LAND DESIGNATED AS "LOT R-3B" ON A MAP ENTITLED "KPS RE-SUBDIVISION BEING A RESUBDIVISION OF LOT 3 OF LIBER 333 OF MAPS, PAGE 3" AS FILED IN THE

MONROE COUNTY CLERK'S OFFICE IN LIBER 340 OF MAPS, PAGE 54: THENCE,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.N00°14'00" E A DISTANCE OF 1,081.24 FEET TO A POINT OF CURVATURE; THENCE,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.NORTHWESTERLY ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 1,202.50 FEET, A DELTA ANGLE OF 20°00'00", A DISTANCE OF 419.75 FEET TO A POINT OF TANGENCY; THENCE,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.N19°46'00"W A DISTANCE OF 317.92 FEET TO A POINT ON THE SOUTHERLY RIGHT OF WAY OF RIDGEWAY AVENUE (66 FOOT R.O.W.); THENCE,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.N81°57'44"E ALONG THE SOUTHERLY RIGHT OF WAY OF RIDGEWAY AVENUE A DISTANCE OF 51.07 FEET; THENCE,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.S19°46'00"E A DISTANCE OF 307.54 FEET TO A POINT OF CURVATURE; THENCE,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.SOUTHEASTERLY ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 1,252.50 FEET, A DELTA ANGLE OF 20°00'00", A DISTANCE OF 437.21 FEET

TO A POINT OF TANGENCY; THENCE,

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.S00°14'00"W A DISTANCE OF 631.86 FEET TO A POINT; THENCE,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.S45°06'16"E A DISTANCE OF 92.65 FEET TO A POINT; THENCE,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.N89°53'28"E A DISTANCE OF 93.38 FEET TO A POINT; THENCE,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.S30°07'19"E A DISTANCE OF 107.23 FEET TO A POINT; THENCE,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.S09°09'39"W A DISTANCE OF 295.87 FEET TO A POINT; THENCE,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.N89°46'00"W A DISTANCE OF 217.55 FEET TO THE POINT OF BEGINNING.

Also, together with the benefits of an easement for ingress and egress over Kodak Park Road (Private Road) to and from the insured premises as granted in an Access Easement Agreement by and between Ridgeway Properties I, LLC and Li-Cycle North America Hub, Inc. dated _____, 2022 and recorded _____, 2022 in the Monroe County Clerk's Office in Liber___ of Deeds, Page___ and more particularly described as follows:

ALL THAT TRACT OR PARCEL OF LAND SITUATED IN PART OF LOT 80 AND 89 OF THE 20,000 ACRE TRACT, TOWN OF GREECE, COUNTY OF MONROE AND STATE OF NEW YORK AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT ON THE SOUTHERLY RIGHT OF WAY OF RIDGEWAY AVENUE THAT POINT BEING THE NORTHWEST CORNER OF THE PARCEL OF LAND DESIGNATED AS "LOT 4" ON A MAP ENTITLED "LI-CYCLE AT LIDESTRI SUBDIVISION BEING A RESUBDIVISION OF LOT AR-3A1 AND LOT AR-3A2 OF THE KPS RESUBDIVISION FILED IN LIBER 356 OF MAPS, PAGE 62" AS FILED IN THE MONROE COUNTY CLERK'S OFFICE IN LIBER 364 OF MAPS, PAGE 91; THENCE,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.N72°19'54" E ALONG THE AFORE MENTIONED RIGHT OF WAY A DISTANCE OF 142.23 FEET TO A POINT; THENCE,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.S00°14'00"W A DISTANCE OF 2,305.04 FEET TO A POINT ON THE SOUTHERLY LINE OF SAID LOT 4; THENCE, THE FOLLOWING 9 COURSES ALONG THE SOUTH AND WESTERLY PERIMETER OF SAID LOT 4:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.N90°00'00"W A DISTANCE OF 100.69 FEET TO A POINT; THENCE,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. N00°22'40"E A DISTANCE OF 308.70 FEET TO A POINT; THENCE,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. N00°12'53"E A DISTANCE OF 296.59 FEET TO A POINT; THENCE,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. N89°57'18"W A DISTANCE OF 18.80 FEET TO A POINT; THENCE,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. N00°20'45"E A DISTANCE OF 534.99 FEET TO A POINT; THENCE,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. N00°25'30"E A DISTANCE OF 325.77 FEET TO A POINT; THENCE,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. N08°13'59"W A DISTANCE OF 109.13 FEET TO A POINT; THENCE,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. N02°05'19"W A DISTANCE OF 77.43 FEET TO A POINT; THENCE,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. N00°16'54"E A DISTANCE OF 610.44 FEET TO THE POINT OF BEGINNING.

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**<u>Exhibit A-2</u>**

**<u>Lessee's Agreements</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Easement for use of McLaughlin Road for ingress and egress, including the right to extend, improve, and maintain the roadway.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Easement for connection to Monroe County Pure Waters sanitary sewer (and potentially Monroe County Water Authority's Water line) along the road to the south of the Land's south boundary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Easement to connect to RED Rochester utilities in the pipe racks running along Kodak Park Road off the west side of the Warehouse Parcel and the Land.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Easement for emergency access by Fire/Police/EMS to and from Kodak Park Road to the west and south of the Hub parcel should the main gate from McLaughlin Road become blocked during an emergency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.Easement through or under RED Rochester's pipe racks for an access road connecting the Land to Kodak Park Road.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.Agreement with Lessor providing for Lessor to make improvements to McLaughlin Road to facility right and left turns onto Ridgeway Avenue, including obtaining necessary governmental approvals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.Agreement with Eastman Kodak Company and/or LiDestri Food Company for necessary and sufficient rail service, including for hauling, staging, loading, and unloading cars of black mass concentrate, chemical reagents (chemical raw materials), and products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.Easement for stormwater drainage from the Land onto Lessor's adjoining land into Lessor's Detention Ponds, including an agreement by Lessor to maintain all stormwater ponds, ditches and conveyances at their current capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.Easement for the construction, operation, and use of a truck loop and security building (guard shack) located off of McLaughlin Road, across from B502 parcel, as more specifically located in the sketch below:

![image_11.jpg](image_11.jpg)

## Exhibit 4.34

![image_01a.jpg](image_01a.jpg)

**AMENDMENT NO. 1 TO THE BY-PRODUCTS OFFTAKE AGREEMENT**

**&nbsp;&nbsp;&nbsp;&nbsp;THIS AMENDMENT NO. 1 TO THE BY-PRODUCTS OFFTAKE AGREEMENT** ("**Amendment**") is made as of October 24, 2022, and shall be effective as of October 24, 2022 (the "**Execution Date**"),

&nbsp;&nbsp;&nbsp;BETWEEN<br>Glencore Ltd.<br>a company organized and existing under the laws of Switzerland,<br>Hereinafter called "Glencore" <br>AND<br>Li-Cycle Holdings Corp.<br>a corporation organized and existing under the laws of the Province of Ontario, Canada,<br>Hereinafter called "Li-Cycle"<br>AND<br>Li-Cycle Americas Corp.<br>a corporation organized and existing under the laws of the Province of Ontario, Canada,<br>Hereinafter called "North America Seller"<br>AND<br>Li-Cycle Europe AG<br>a corporation organized and existing under the laws of Switzerland,<br>Hereinafter called "EMEA Seller"<br>AND<br>Li-Cycle Asia Pacific Pte Ltd.<br>a corporation organized and existing under the laws of Singapore,<br>Hereinafter called "APAC Seller"<br>(Li-Cycle, North America Seller, EMEA Seller, and APAC Seller hereinafter collectively called "Sellers")

**RECITALS:**

------

**WHEREAS** the Sellers and Glencore entered into that By-Products Offtake Agreement dated May 31, 2022, in which Sellers agreed to sell to Glencore and/or its Affiliates, and Glencore agreed to purchase (and/or cause its Affiliates to purchase) from the Sellers, 100% of the Sellers' annual production worldwide of certain by-products, subject to certain existing commitments; and

**AND WHEREAS** the Sellers and Glencore have mutually agreed on specific Material Commercial Terms of Sale for Copper Aluminum Shred and Partially Upgraded Cu/Al Fraction from US Spokes as well as from Canadian Spokes and, as a result, desire to add APPENDIX "C" and APPENDIX "D", respectively, to the By-Products Offtake Agreement as set forth in this Amendment.

**NOW THEREFORE IN CONSIDERATION** of the By-Products Offtake Agreement and the premises and the mutual covenants and agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each of the Parties, the Parties hereto covenant and agree the following amendments to the By-Products Offtake Agreement:

**Section 3.1** shall be deleted in its entirety and replaced as follows:

**3APPENDICES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1The following Appendices are attached to and form part of this Agreement:

---

| | |
|:---|:---|
| <u>Appendix "A"</u> | &nbsp;&nbsp;&nbsp;Material Commercial Terms for Sale of Copper Aluminum Shred and Partially Upgraded Cu/Al Fraction during Initial Term |
| <u>Appendix "B"</u> | &nbsp;&nbsp;&nbsp;Material Commercial Terms for Sale of Copper Sulphide during Initial Term |
| <u>Appendix "C"</u> | &nbsp;&nbsp;&nbsp;Material Commercial Terms for Sale of Copper Aluminum Shred and Partially Upgraded Cu/Al Fraction from US Spokes to Sudbury INO and/or Agmet during Initial Term  |
| <u>Appendix "D"</u> | &nbsp;&nbsp;&nbsp;Material Commercial Terms for Sale of Copper Aluminum Shred and Partially Upgraded Cu/Al Fraction from Canadian Spokes to Sudbury INO during Initial Term |

---

**Section 6.1** shall be deleted in its entirety and replaced as follows:

**4MATERIAL COMMERCIAL TERMS OF SURPLUS BY-PRODUCTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1The material commercial terms for the sale and purchase of Surplus By-Products (including specifications and pricing and to the extent not covered within this Agreement) (the "**Material Commercial Terms**") are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.1during the Initial Term, for Copper Aluminum Shred and Partially Upgraded Cu/Al Fraction, other than those amounts specifically addressed in <u>Appendix "C"</u> and <u>Appendix "D"</u>, the applicable Material Commercial Terms shall be in accordance with <u>Appendix "A"</u>;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.2during the Initial Term, for Shredded Cu Fraction, the applicable Material Commercial Terms shall be mutually agreed by the Sellers and Glencore pursuant to Section 7;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.3during the Initial Term, for Copper Sulphide, the applicable Material Commercial Terms shall be in accordance with <u>Appendix "B"</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.4during the Initial Term, for Graphite Concentrate, the applicable Material Commercial Terms shall be mutually agreed by the Sellers and Glencore pursuant to Section 7;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.5during the Initial Term, for Gypsum, the applicable Material Commercial Terms shall be mutually agreed by the Sellers and Glencore pursuant to Section 7;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.6during the Initial Term, for Sodium Sulphate, the applicable Material Commercial Terms shall be mutually agreed by the Sellers and Glencore pursuant to Section 7;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.7during each Subsequent Term, for the Surplus By-Products, the applicable Material Commercial Terms shall be mutually agreed by the Sellers and Glencore pursuant to Section 7;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.8during the Initial Term, for Copper Aluminum Shred and Partially Upgraded Cu/Al Fraction from US Spokes to Sudbury INO and/or Agmet, the applicable Material Commercial Terms shall be in accordance with <u>Appendix "C"</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.9during the Initial Term, for Copper Aluminum Shred and Partially Upgraded Cu/Al Fraction from Canadian Spokes to Sudbury INO, the applicable Material Commercial Terms shall be in accordance with <u>Appendix "D"</u>.

**Section 9.1** shall be deleted in its entirety and replaced as follows:

**5DELIVERY & SHIPMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1All Surplus By-Products and Other By-Products sold hereunder shall be delivered by the applicable Sellers to Buyer at the applicable Spoke or Hub EXW, DAP or DDP (Incoterms® 2020), as mutually agreed upon by the Parties, including as set forth in <u>Appendix "A"</u>, <u>Appendix "B"</u>, <u>Appendix "C"</u>, and <u>Appendix "D"</u>.

[XXX]

All the other terms and conditions contained in the By-Products Offtake Agreement remain unchanged and in full force and effect.

The new <u>Appendix "C"</u> and the new <u>Appendix "D"</u> are attached hereto and shall form an integral part of the By-Products Offtake Agreement.

------

**APPENDIX "C"**

**Material Commercial Terms for Sale of<br>Copper Aluminum Shred and Partially Upgraded Cu/Al Fraction from US Spokes to Sudbury INO and/or Agmet**

[XXX]

------

**APPENDIX "D"**

**Material Commercial Terms for Sale of<br>Copper Aluminum Shred and Partially Upgraded Cu/Al Fraction from Canadian Canadian Spokes to Sudbury INO**

[XXX]

[Signature page follows]

------

**IN WITNESS WHEREOF** the Parties have executed this Amendment No. 1 to the By-Products Offtake Agreement as of the Execution Date.

**GLENCORE LTD.**

By: <u>/s/ Kunal Sinha</u>___________________

Kunal Sinha, Head of Recycling

**LI-CYCLE HOLDINGS CORP.**

By: <u>/s/ Ajay Kochhar</u>__________________<br> Ajay Kochhar, Chief Executive Officer

**LI-CYCLE AMERICAS CORP.**

By: <u>/s/ Alan Ferguson</u>_________________<br> Alan Ferguson, VP, Commercial

**LI-CYCLE EUROPE AG**

By: <u>/s/ Elewout Depicker</u>_______________<br> Elewout Depicker, VP, Commercial

**LI-CYCLE APAC PTE. LTD.**

By: <u>/s/ Dawei Li</u>______________________<br> Dawei Li, President

## Exhibit 4.36

**<u>SUBLEASE AGREEMENT</u>**

**(Warehouse)**

This Sublease Agreement (this "***Sublease***"), dated as of the **12th day of January, 2023 (the "*Effective Date*")**, is made by and between **PIKE CONDUCTOR DEV 1, LLC,** a Delaware limited liability company with its principal office located at 1010 Lee Road, Rochester, NY (herein called "***Landlord***") and **LI-CYCLE NORTH AMERICA HUB, INC,** a Delaware corporation having its principal office at 100 Latona Road, Suite 350, Rochester, New York 14652 (herein called "***Tenant***").

RECITALS

WHEREAS, Landlord owns the Property (as herein defined); and

WHEREAS, Landlord has entered into a Lease Agreement for the Property (the "***COMIDA Lease***") by and between Landlord and County of Monroe Industrial Development Agency ("***COMIDA***"); and

WHEREAS, COMIDA and Landlord have entered into a Leaseback Agreement for the Property (the "***COMIDA Leaseback Agreement***"); and

WHEREAS, Landlord intends to secure financing through an institutional lender and through other sources of funding to construct the Building (as herein defined) for Tenant; and

WHEREAS, Tenant has requested significant additional improvements be made to the Building, the payment for which Tenant will be responsible; and

WHEREAS, Landlord and Tenant intend that this Sublease be treated as a true lease for U.S. federal income tax purposes; and

WHEREAS, Landlord and Tenant desire this Sublease to set forth their respective rights and obligations with respect to the construction of the Building and subsequent rental of the Premises (as herein defined); and

WHEREAS, the parties have determined to execute this Sublease in advance of the Landlord securing the anticipated financing in order to better define the relationships between the parties which to date has been controlled by a Pre-Financing Development Services Agreement dated January 12, 2022 (as amended on March 11, 2022, July 12, 2022, July 25, 2022 and October 6, 2022) between Landlord and Tenant (the "***Pre-Development Agreement***").

NOW, THEREFORE, the parties hereto enter into this Sublease upon the terms and conditions set forth below

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. &nbsp;&nbsp;&nbsp;&nbsp;<u>PREMISES.</u>**

Landlord, for and in consideration of the rent to be paid and the covenants and agreements to be performed by Tenant, as hereinafter set forth, does hereby demise and let unto Tenant, and Tenant does hereby lease from Landlord, one (1) warehouse and administrative building consisting of not less than **275,932 square feet** (the "***Building***") and other improvements to the Property being constructed and installed in accordance with the Standard Design-Build Agreement and General Conditions by and between Pike Conductor DEV 1, LLC and Pike Conductor JV1, LLC dated as of June 30, 2022, a copy of which, together with certain drawings and attachments referenced therein or related thereto, are attached hereto as <u>Exhibit B-1</u> and made a part hereof (the "***Design-Build Contract***"); together with the land at **55 McLaughlin Road, Rochester, New York**, as more particularly described on <u>Exhibit A</u> attached hereto and made a part hereof (the "***Property***"). The Building and the Property are hereinafter collectively referred to as the "***Premises***." The Premises shall include the right to use all existing driveways, driveway entrances, parking areas, sidewalks, and improvements (whether or not located within the Building) located on the Property. A preliminary site plan of the Premises and a depiction of the footprint of the Building to be constructed are attached to this Sublease as <u>Exhibit B-2</u> and made a part hereof. This Sublease is subject to the terms, covenants and conditions herein set forth and the Tenant agrees as a material part of the consideration for this Sublease to keep and perform each and all of said terms, covenants and conditions by it to be kept and performed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. &nbsp;&nbsp;&nbsp;&nbsp;<u>CONSTRUCTION OF THE BUILDING.</u>** 

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Landlord shall construct and install the Building at a total cost and expense of **$58,610,000.00**, plus the amount of any written change orders approved after the Effective Date.

In view of certain enhancements to the Building for Tenant's use (the "***Enhanced Tenant Improvements***"), Tenant shall contribute **$14,500,000** towards the cost of construction of the Building (such amount, the "***Enhanced Tenant Improvements Contribution***"). The **$44,110,000** remaining balance of the cost to construct the Building shall be the responsibility of the Landlord, subject to the provisions set forth below.

Landlord and Tenant acknowledge that Tenant has already contributed **$27,041,711.77** (the "***Tenant's Pre-Financing Costs***") towards the costs of the Building, under the Pre-Development Agreement, including but not limited to actual construction costs, architectural, design, and engineering fees, and all other costs incurred by Tenant. The parties acknowledge that the Landlord has requested and the Tenant shall contribute upon the execution of this Sublease an additional **$14,500,000** towards the cost of the Building, bringing the Tenant's Pre-Financing Costs to **$41,541,711.77**. Tenant shall continue to directly contribute to the Building construction costs and expenses, thereby increasing Tenant's Pre-Financing Costs, up to a maximum of **$58,610,000**, until such time as Landlord has secured the Initial Loans (as defined below) or the Building has been completed. All warranties obtained during the construction of the Building and the Enhanced Tenant Improvements will be jointly named to the Landlord and Tenant. Insurance during the construction of the Building and Enhanced Tenant Improvements is set forth in Section 6(d).

Landlord's present intent is to obtain certain loans, the terms of which must be reasonably satisfactory to Tenant, in the initial principal amount of up to **$54,864,100** (the "***Initial Loans***"). The essential terms of the presently anticipated Initial Loans are annexed hereto as Schedule 2(a).

Landlord and Tenant agree to execute or make such modifications or amendments to this Sublease necessary to obtain financing for the Initial Loans, provided that any such modification or amendment shall not materially and adversely modify any material terms of this Sublease or Tenant's rights or remedies hereunder.

Upon the closing on the Initial Loans, Landlord shall (i) reimburse Tenant for the amount of Tenant's Pre-Financing Costs in excess of the Enhanced Tenant Improvements Contribution, and (ii) use the balance of the proceeds of the Initial Loans to complete the construction of the Building.

In the event that Landlord is unable to complete the construction of the Building, inclusive of the Enhanced Tenant Improvements, for **$58,610,000**, plus the amount of any approved change orders, Landlord shall directly fund any overage costs without any recourse to or contribution from Tenant.

In the event that Landlord closes the Initial Loans, completes the Building (including the Enhanced Tenant Improvements), and reimburses Tenant for the Tenant's Pre-Financing Costs less the Enhanced Tenant Improvements Contribution, Landlord shall own the Building (including the Enhanced Tenant Improvements). Notwithstanding the same, Landlord assigns to Tenant the right to depreciation tax benefits relating to the Enhanced Tenant Improvements Contribution. Except as otherwise provided in this Sublease, upon the expiration of the Term, the Building shall be the property of the Landlord.

As of the Commencement Date, Landlord shall deliver the Premises and Enhanced Tenant Improvements, in good and workmanlike condition, as set forth herein.

In the event that all of: the closing and funding of the Initial Loans, the reimbursement to Tenant of Tenant's Pre-Financing Costs (less the Enhanced Tenant Improvements Contribution), and the Commencement Date have not occurred by **July 1, 2023** (the "***Initial Financing Deadline***"), Landlord and Tenant agree that this Sublease shall be amended and restated as a ground lease, the terms and conditions of which will: (1) permit the Tenant to pledge its ground leasehold interest to secure a mortgage; (2) provide for annual rent thereunder equal to eight percent (8%) of the sum of $2,625,000; (3) be for the same Term as this Sublease and incorporate such provisions of this Sublease as are not unreasonably inconsistent with a ground lease (including without limitation the provisions of Section 10 and Section 14 of this Sublease); (4) shall include an option to purchase the Land exercisable at the end of the initial term and each renewal term of the ground lease for a purchase price of $2,625,000; and (5) otherwise substantially and substantively conform to the Ground Lease for the Hub property dated August 3, 2021, between Landlord and Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. &nbsp;&nbsp;&nbsp;&nbsp;<u>COMMENCEMENT DATE; LEASE TERM; RENEWAL TERMS.</u>** 

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;This Sublease shall be effective as of the Effective Date. Unless sooner terminated as provided herein, the term of this Sublease shall commence on the date (the "***Commencement Date***") which shall be the first to occur of (i) the issuance of a Certificate of Occupancy (temporary, conditional or final) for the Building ("***Substantial Completion***"); or (ii) September 1, 2023, and shall terminate on August 31, 2048 (the "***Expiration Date***"; being the "***Original Term***"; together with "***Renewal Term***" (defined below), if any, the "***Term***"). As used in this Sublease, the term "***Lease Year***" shall mean the twelve (12)-month period commencing on the Commencement Date, or if the Commencement Date is not on the first day of a calendar month, it shall be deemed to have commenced on the first day of the month in which the Commencement Date occurs if the Commencement Date is prior to the fifteenth (15<sup>th</sup>) day of the month and shall be deemed to have commenced on the first day of the month following the Commencement Date if the Commencement Date is on or after the fifteenth day of the month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;Promptly following the Commencement Date, Landlord and Tenant shall execute and deliver a Sublease Commencement Agreement or Sublease Amendment substantively in the form of <u>Exhibit I</u> attached hereto and made a part hereof, confirming the Commencement Date and certain other matters as therein set forth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;Landlord hereby grants to Tenant the option of renewing the Original Term (the "***Renewal Option***") for four (4) additional terms of five (5) years each and one (1) subsequent additional term of three (3) years (each individually, a "***Renewal Term***", and collectively, the "***Renewal Terms***") upon the same terms and conditions as are in effect during the Original Term; <u>provided</u> that: (a) at the time Tenant exercises the Renewal Option with respect to each of the Renewal Terms, Tenant is not subject to a notice of and Event of Default, regardless of any applicable periods of grace, of any of the material terms, covenants and conditions of this Sublease, and (b) Tenant provides Landlord with written notice (the "***Option Notice***") of Tenant's election to exercise the Renewal Option with respect to each of the Renewal Terms not less than six (6) months prior to the Expiration Date, or the expiration date of the then operative Renewal Term, as the case may be (hereinafter referred to as the "***Option Expiration Date***"), <u>provided</u>, however, that in the event Tenant fails to give a timely Option Notice, Landlord shall give Tenant written notice of such failure and Tenant shall thereafter have ten (10) days to send an Option Notice to Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;<u>USE.</u>** 

Tenant shall use the Premises exclusively for commercial and manufacturing warehouse space to support the manufacture of specialty products comprising critical metals for lithium-ion batteries, such as lithium carbonate, nickel sulphate and cobalt sulphate, from black mass concentrate (which is an intermediate product that is generated from the recycling of spent lithium-ion batteries) and inputs of sulfuric acid, sodium hydroxide, sodium hydrosulfide, anhydrous sodium sulfate, calcium hydroxide, hydrogen peroxide, liquid oxygen, liquefied carbon dioxide, combustible solvent extraction diluent, extracants, and modifiers, and certain other chemicals in a low temperature hydrometallurgical process, offices uses incidental to such use, and such other purposes that Landlord and Tenant reasonably agree to in writing, and for no other purpose without the prior written consent of Landlord ("***Tenant's Use***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.&nbsp;&nbsp;&nbsp;&nbsp;<u>RENT</u>**<u>.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Base Rent.</u> Beginning on the **September 1, 2023**, Tenant shall pay to the Landlord as annual Base Rent the sums set forth below for the Term. Annual Base Rent shall be payable in advance without set-off or deduction or counterclaim, in lawful money of the United States of America, in equal monthly installments on the first day of each calendar month beginning on September 1, 2023 and continuing until the Expiration Date or earlier termination of the Term.

For the Term, and subject to the terms and conditions below, Tenant shall pay to Landlord as annual Base Rent, without notice or demand, the sum per annum (and month), according to <u>Schedule 5(a)</u> attached to this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;The Base Rents set forth on the attached <u>Schedule 5(a)</u> are predicated upon Landlord's present intent and commercially reasonable efforts to encumber the Premises and Landlord's interests in the Building (collectively, "***Landlord's Interests***"), with the Initial Loans based on the Essential Terms set forth on <u>Schedule 2(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Refinancing of Initial Loans</u>. Landlord shall refinance the Initial Loans, at such time, and from time to time, as determined by Landlord, in Landlord's reasonable discretion (any such refinanced loans, collectively, the "***Loans***"), and shall keep Tenant notified of same. Any such refinancing by Landlord shall take into account general market rates, terms, and conditions. For greater certainty, Landlord shall have no duty or obligation to obtain any Loans that require Landlord or any other party to provide

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guarantees or other credit enhancements that were not required with respect to the Initial Loans. The outstanding principal amount of any such Loans shall not be increased, other than to include all fees, costs, and expenses incurred in connection with the satisfaction of the Initial Loans or then -existing Loans, as applicable, and all loan origination fees and costs in connection with closing on any new Loans.

Upon the determination of the interest rate for any refinancing of the Initial Loans (or Loans), Base Rent shall be adjusted based on the difference between such interest rate and the interest rate of the then-existing Initial Loans (or Loans) per the following formula: (Interest Rate of: new Loans – existing Initial Loan/Loans) x $[XXX]<sup>1</sup>. Notwithstanding the foregoing, Landlord shall not obtain any Loans that would cause the Base Rent to increase (as determined in accordance with the provisions of this Sublease), without the prior written consent of Tenant, provided that such consent shall not be unreasonably withheld where: (i) such refinancing occurs within the final eighteen (18) months in advance of the maturity date of the Initial Loans or Loans, as the case may be; and (ii) such refinancing has been procured by Landlord in good faith and at market rates, commensurate with all applicable credit factors<sup>2</sup>.

Landlord and Tenant agree to execute or make such modifications or amendments to this Sublease as may be necessary in connection with the Loans, subject to any consent required per the paragraph above, and should Tenant, within fifteen (15) business days of Tenant's receipt of written demand therefor from Landlord: (i) fail to execute and deliver all such agreements and instruments reasonably required by a lender in connection with refinancing Loan(s) secured by Landlord's Interests; or (ii) interfere with or frustrate Landlord's efforts to refinance the Loan(s) secured by Landlord's Interests in accordance with this Sublease, Landlord shall have the right to compel Tenant: (a) to pay off such Loans, including by way of funding secured through a mortgage secured by Tenant's interests under this Sublease (a "***Leasehold Mortgage***"); or (b) to purchase the Premises immediately at a purchase price which shall be the greater of the fair market value of the Premises and the discounted present value of the remaining payments of Base Rent payable in the then current Term of the Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Additional Rent.</u> Whenever Tenant is required to pay any sum of money under the terms of this Sublease which is in addition to the Base Rent herein reserved (except amounts paid for the purchase of the Premises), whether or not said additional amount is designated as "***Additional Rent***", then said amount shall nevertheless be paid when due, and shall be deemed "Additional Rent" and collectible as such with any installment of Base Rent thereafter falling due hereunder. Nothing herein contained shall be deemed to suspend or delay the payment of any sum at the time the same becomes due and payable hereunder, or to limit any other remedy of Landlord. Base Rent and Additional Rent are hereinafter sometimes collectively referred to as "***Rent***".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Place of Payment.</u> All payments of Base Rent and Additional Rent shall be paid when due, without demand, and without any deductions or set-offs or counterclaims whatsoever in accordance with the payment instructions attached hereto as <u>Exhibit C</u> and made a part hereof or pursuant to such other instructions as the Landlord shall provide to Tenant in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Late Rent.</u> If any Rent is not paid when due, Tenant shall pay Landlord an amount equal to five percent (5%) of the amount due as a late charge for each overdue payment. Notwithstanding the foregoing, the foregoing late charge shall not apply until five (5) days following the date that Landlord shall have provided Tenant written notice that the applicable payment is past due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;<u>OPERATING EXPENSES, INSURANCE REQUIREMENTS.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Operating Expenses.</u> Except as hereinafter set forth, upon the Commencement Date, Tenant shall bear all costs and expenses associated with the Premises, said costs and expenses to include, without limitation, all water and sewer rents, real property taxes and assessments and payments in lieu of real property taxes and assessments ("***Real Estate Taxes***"), utilities and heat (including without limitation, electric, gas, telephone, internet, water, sewer, industrial sewer, chilled water, nitrogen and heating oil), insurance and maintenance of the Building (structural and nonstructural items) and the entirety of the Premises (including without limitation, landscaping, snow removal and ice removal), and property management fee equal to 5% of such actual operating expenses listed in <u>Schedule 6(a) (excluding Real Estate Taxes)</u> (hereinafter collectively referred to as the "***Operating Expenses***"). It is the intention of the parties hereto that this Sublease is an absolute net lease with Tenant responsible for the payment of all costs and expenses associated with the Use and Premises. At the option of Landlord, Tenant shall pay all such costs and expenses directly, or Tenant shall pay the Operating Expenses in advance, in installments and in

<sup>1</sup> [XXX]

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amounts estimated by Landlord, on a monthly basis (each installment of the Operating Expenses to be one-twelfth of Tenant's estimated share of Tenant's estimated annual obligation of the Operating Expenses as reasonably determined by Landlord). Landlord's estimate of Operating Expenses, including the management fee (which fee shall not apply to Real Estate Taxes), is attached hereto as <u>Schedule 6(a)</u>. Tenant shall commence paying monthly installments of estimated Operating Expenses upon the Commencement Date and shall, on and after September 1, 2023, pay such monthly installments of estimated Operating Expenses together with the Base Rent. For the purposes of calculating Operating Expenses, when and if the Tenant elects to perform a service which is normally provided by the Landlord (as agreed in writing by the parties), including snow removal and landscaping, the Landlord shall exclude the costs of such services. Notwithstanding any term or provision to the contrary hereinbefore set forth, effective as of the Commencement Date, all utilities shall be transferred directly to accounts in Tenant's name and Tenant shall pay directly to all utility providers all charges respecting the Premises incurred during the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Assessments.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;If Landlord's Operating Expenses for any calendar year (each calendar year being an "***Operating Year***") shall be greater than the Operating Expenses estimated by Landlord, Tenant shall pay to Landlord as Additional Rent an amount equal to one hundred percent (100.00%) of the difference (the "***Expense Adjustment***"). If Tenant occupies the Premises or a portion thereof for less than a full Operating Year, the Expense Adjustment will be calculated in proportion to the amount of time in such Operating Year during which Tenant occupied the Premises. Such Expense Adjustment shall be paid in the following manner: In the event that there is an Expense Adjustment to be made, within one-hundred twenty (120) days following the end of the Term, Landlord shall furnish Tenant an Expense Statement setting forth (i) the Operating Expenses for the preceding Operating Year, and (ii) Tenant's Expense Adjustment for such Operating Year. Within thirty (30) days following the receipt of such Expense Statement (the "***Expense Adjustment Date***") if Tenant's total monthly payments of Operating Expenses are less than the actual Operating Expenses, Tenant shall pay to Landlord as Additional Rent the Expense Adjustment for such Operating Year. Within thirty (30) days following Landlord's forwarding such Expense Statement, if Tenant's total monthly payment of Operating Expenses is more than the actual Operating Expenses, Landlord shall credit the amount of the Expense Adjustment against the next installment of Rent then due from Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Landlord agrees to keep complete and accurate books and records of all Operating Expenses (which books and records shall be in accordance with generally accepted accounting principles) throughout each calendar year to which they relate and for no less than one year after it furnishes Tenant with an Expense Statement with respect to that calendar year. Tenant will have the right to audit such books and records for any Operating Year for which it received an Expense Statement and for which there was an Expense Adjustment at its sole cost and expense. If Tenant desires to audit Landlord's books and records with respect to a calendar year, it shall so notify Landlord within ninety (90) days after its receipt of an Expense Statement with respect to such calendar year. The payment by Tenant to Landlord of any Expense Adjustment shall have no bearing on Tenant's right to an audit. Tenant will then have ninety (90) days after the giving of such notice within which to conduct such audit, and, if required, to notify Landlord of its complaint. If any such audit should disclose that Operating Expenses have been overstated, then Landlord will immediately pay Tenant the full amount of any overpayment by Tenant, and if any such audit should disclose that Operating Expenses have been overstated by an amount of five percent (5%) or more, Landlord shall reimburse Tenant for Tenant's reasonable fees to the auditor. Notwithstanding Tenant's right to conduct an audit as set forth above, in the event that Tenant fails to pay any Expense Adjustment on or before the Expense Adjustment Date, then and in that event, Tenant shall not be entitled to conduct an audit for the Operating Year of such Expense Adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) &nbsp;&nbsp;&nbsp;&nbsp;Tenant's <u>Insurance during the Term.</u> During the Term and any and all extensions thereof, Tenant shall be solely responsible, at Tenant's expense, for the following insurance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp; Prior to Tenant's taking possession of the Premises, or any portion thereof, Tenant shall, at its sole cost and expense, obtain and keep in force during the Term, and produce proof thereof to Landlord, General Liability Insurance written on an occurrence basis form, insuring against liabilities arising from bodily injury, death and property damage with limits no less than Ten Million ($10,000,000) per occurrence and in the aggregate, with it being understood and agreed that while the structure of the General Liability Insurance program is not dictated, that the General Liability Insurance can consist of a Commercial General Liability Policy, with any excess coverage being provided by Umbrella and follow-form Excess Insurance. Without limiting this Section, this General Liability insurance shall include the following extensions, commonly known as products & completed operations, broad form property damage, occurrence property damage; non-owned automobile liability, blanket contractual liability; cross liability and severability of

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interests clause; personal and advertising injury; owners and contractors protective. Such insurance shall name Landlord as an additional insured, and such insurance shall be noncontributing with any additional insurance which may be carried by Landlord .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Workmen's Compensation Insurance in accordance with statutory requirements, covering all persons employed by Tenant in connection with the use of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Landlord's Insurance during Construction</u>. Landlord shall or shall cause the constructor of the Buildings, equipment, fixtures and other improvements installed and/or owned by Landlord and used in connection with the Premises, to obtain and maintain the following insurance during the full term of the construction or erection of such Buildings, equipment, fixtures and other improvements, including the testing and commissioning of such:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp; All Risks Builder's Risk insurance covering property of every description, including Buildings, Improvements, equipment, fixtures and other improvements installed on the Property, including but not limited to site improvements, utilities, driveway entrances, parking areas, sidewalks, exterior doors, loading docks, facilities, and improvements (whether or not located within the Building) located on the Property (the "***Construction Project***") in amounts of not less than the replacement cost value of all such property of every description, against direct physical loss or damage. The insurance shall cover all Materials, Permanent Works and Temporary Works to be used in the Construction Project (except tools or equipment owned, leased or rented for or by Contractors, Subcontractors, Agents, Suppliers or Vendors or for which these parties are legally responsible) throughout construction, erection, installation, testing, commissioning of the Construction Project, until such time as it is to be occupied by the Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;General Liability Insurance with limits of not less than Ten Million ($10,000,000.00), which may be provided, in part, through an umbrella policy, inclusive per occurrence for bodily injury, death and damage to property, arising from, caused by or resulting from the construction and erection activities conducted by or on behalf of the Landlord at the Property. This insurance shall be maintained continuously from commencement of the construction and erection activities until the completion of the Construction Project, until such time as it is to be occupied by the Tenant and with respect to completed operations coverage for a period of not less than twenty four (24) months from the date of occupancy by the Tenant. All contractors and subcontractors involved in such construction and erection activities further to this Construction Project are to be insured by this General Liability insurance or maintain their own General Liability insurance as required herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Landlord's Insurance</u>. Landlord shall also be obligated to obtain Landlord's Insurance. The term "***Landlord's Insurance***" includes all insurance and all required endorsements which a prudent Landlord would maintain, including but not limited to that which the Landlord's lender requires Landlord to maintain, in connection with Landlord's ownership of the Premises or any part thereof, including but not limited to: (i) Property Insurance for Buildings, equipment, fixtures and other improvements installed and/or owned by Landlord and used in connection with the Premises and/or all alterations, rebuilding, replacements and additions thereto, including obtaining and maintaining Builder's Risk insurance during the construction and erection of the Building on the Premises, and insurance on the Building after its construction and erection against loss or damage in the minimum arising from or caused or resulting by fire, lightning, explosion, vandalism, malicious mischief, sprinkler leakage (if sprinklered), flood, windstorm (including named windstorm), earthquake and such other hazards, casualties, risks and contingencies now covered by or that may hereafter be considered as included within, the standard casualty and property insurance program that a prudent Landlord would maintain, or such other casualties as Landlord's lender may require. Landlord's Insurance shall also include: (i) insurance for loss of rent arising out of any of the occurrences covered by such Property insurance, and (ii) General Liability Insurance written on an occurrence basis form, insuring against liabilities arising from bodily injury, death and property damage arising from the ownership and Landlord activities on the Premises, including all construction related activities during the construction and erection of the Building and after the Building is constructed in such amounts as would be customarily carried by a landlord of similar buildings, but with limits of no less than Five Million ($5,000,000) per occurrence. Landlord also may carry, as Landlord's Insurance, such other insurance as would

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customarily be carried by a landlord of other similar buildings. Property insurance with respect to the Building shall be carried by Landlord in an amount at least equal to the actual replacement cost of the Building, subject to commercially reasonable deductibles and/or self-insured amounts. Landlord shall use the same efforts as landlords of other similar buildings to obtain Landlord's Insurance at competitive rates. Tenant shall reimburse Landlord, as Additional Rent, for the premiums for and costs of all policies of Landlord's Insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Insurance Matters.</u> All insurance required in this Section 6 to be obtained by Tenant and Landlord and all renewals of such insurance, will be issued by companies authorized to transact business in the State of New York, and rated at least a Class A by Best's Insurance Reports. All insurance policies shall expressly provide that such policies will not be canceled or materially altered without thirty (30) days' prior written notice to the other party; shall provide that no act or omission of Tenant or Landlord under their respective insurance policies maintained by the parties which would otherwise result in forfeiture or reduction of the insurance shall affect or limit the obligation of the insurance company to pay the amount of any loss sustained under the respective insurance policies the parties are to maintain. Within fifteen (15) days of the issuance or renewal of such insurance to be maintained by each party, the party shall provide certificates of insurance to the other party and as regards to the Tenant's insurance any lender whom Landlord designates.

Whether or not Tenant provides and keeps in force insurance as aforesaid, Landlord shall not under any circumstances be limited in the proof of any damages which Landlord may claim against Tenant to the amount of the insurance premium or premiums not paid or incurred and which would have been payable upon such insurance, but Landlord shall also be entitled to recover as damages for such breach the uninsured amount of any loss, to the extent of any deficiency in the insurance required by the provisions of this Sublease, and damages, expenses of suit and costs, including without limitation, reasonable cancellation fees, suffered or demonstrated to have been incurred by the Landlord during any period when Tenant shall have failed or neglected to provide insurance as aforesaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;<u>Delivery of Certificates of Insurance.</u> Original or copies of certificates (together with evidence that Landlord and any others specified by Landlord are listed as additional insureds in those insurance policies Tenant is to maintain and Tenant and any others specified by Tenant are listed as additional insureds on the insurance policies required in Section 6(c)) will be delivered to Landlord prior to Tenant's occupancy of the Premises and by the Landlord to Tenant upon execution of this Sublease and as regards the insurance required of Tenant and from time to time within fifteen (15) days of the effective date of the term of each such policy. All general liability policies maintained by Tenant will be written as primary policies, not contributing with and not in excess of coverage that Landlord may carry.

If Tenant shall fail, refuse or neglect to obtain or maintain insurance as aforesaid, or to furnish Landlord with certificate of insurance within the time required as set forth above for the insurance to be maintained by Tenant, Landlord shall have the right, at Landlord's option, to purchase such insurance and to pay the premiums thereon or to pay the premiums on insurance for which Tenant should have paid. All such payments made by Landlord shall be recoverable by Landlord from Tenant on demand as Additional Rent hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) &nbsp;&nbsp;&nbsp;&nbsp;<u>Personalty.</u> Tenant hereby acknowledges that Tenant shall be solely responsible to insure, at Tenant's sole cost and expense, Tenant's equipment, trade fixtures and Tenant's other personal property in or about the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver of Subrogation.</u> Landlord and Tenant release each other, and their respective authorized representatives, from any claims for damage to any person or to the Building, Premises, to Tenant's equipment, fixtures and personal property, Tenant's improvements and alterations to the Premises that are caused by or result from risks insured against under any insurance policies carried by the parties and in force at the time of such damage.

Each party shall cause each insurance policy obtained by it to provide that the insurance company waives all right of recovery by way of subrogation against either party in connection with any damage covered by any policy. Neither party shall be liable to the other for any damage caused by fire or any of the risks insured against under any insurance policy required by this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;<u>Trash and Garbage Removal.</u> During the Term, Tenant shall be solely responsible removal of Tenant's trash and garbage.&nbsp;&nbsp;&nbsp;&nbsp;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;<u>Sidewalks.</u> During the Term, Tenant shall be responsible, at Tenant's sole cost and expense, for keeping the entry sidewalks to the Premises free from snow, ice, and debris.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) &nbsp;&nbsp;&nbsp;&nbsp;<u>Loading Docks.</u> During the Term, Tenant shall be responsible, at Tenant's sole cost and expense, to maintain the loading docks as provided in Section 11 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;<u>POSSESSION OF PREMISES.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Adverse Possession.</u> Tenant shall not suffer or permit the Premises or any portion thereof to be used by the public, as such, without restriction or in such manner as might reasonably tend to impair Landlord's title to the Premises or in such manner as might reasonably make possible a claim or claims of adverse usage or adverse possession by the public, as such, or of implied dedication of the Premises or any portion thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Quiet Enjoyment.</u> Tenant, upon paying the Base Rent, additional rent and other charges herein provided for and observing and keeping all covenants, agreements and conditions of this Sublease on its part to be kept, shall quietly have and enjoy the Premises during the Term without hindrance or molestation by anyone claiming by or through Landlord, subject, however, to the terms, acknowledgements, agreements, exceptions, reservations and conditions of this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.&nbsp;&nbsp;&nbsp;&nbsp;<u>ALTERATIONS AND TRADE FIXTURES, REMOVAL.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Subsequent to Tenant's initial installation of process equipment, machinery and related improvements pursuant to the Design-Build Contract, and routine maintenance, repair, and replacement thereof, Tenant shall not make any alterations, improvements, renovations or additions to the Premises or attach any fixtures or equipment thereto, without the Landlord's prior written approval, which approval shall not be unreasonably withheld, conditioned or delayed. Tenant's request for Landlord's approval shall be accompanied by complete plans and specifications prepared by a registered architect and/or licensed professional engineer. All permitted alterations, improvements or additions made to the Premises or the attachment of any fixtures or equipment thereto shall be performed by Tenant at the Tenant's sole cost and expense. Notwithstanding any term or provision to the contrary hereinbefore set forth, Tenant shall not be required to obtain Landlord's approval prior to commencing such work provided that Tenant's alterations, improvements, renovations or additions to the Premises, or Tenant's attachment of any fixtures or equipment thereto: (i) is non-structural in nature; (ii) does not materially affect the electrical, plumbing, HVAC, mechanical, or sprinkler or life safety systems in the Building or serving the Premises; (iii) complies with applicable laws, regulations, and codes; (iv) does not exceed a cost of One Hundred Thousand and 00/100 Dollars ($100,000.00) in the aggregate for each such project; (v) Landlord's insurance requirements of Tenant's contractors and subcontractors set forth in Section 8(b) below are satisfied; and (v) Landlord receives "as-built" plans, if applicable,.

Except for Tenant's trade fixtures or as otherwise provided to the contrary in this subsection (a), any and all such alterations, improvements or additions made to the Premises or the fixtures or equipment (that are not trade fixtures) attached thereto shall, at the Expiration Date or sooner termination of the Term, remain at the Premises and belong to Landlord; <u>provided,</u> however, that if Landlord has given written notice to Tenant within thirty (30) days of Tenant's request for Landlord's approval per above, then Landlord shall have the right to require Tenant to remove any of said non-structural alterations, improvements or additions caused to be made to the Premises by Tenant or any of the fixtures and/or equipment caused to be installed by Tenant, and, if Landlord gives such notice, Tenant shall remove on or before the Expiration Date or sooner termination of the Term said alterations, improvements, additions, fixtures, furniture and/or equipment as are stated in such notice and repair any damage caused to the Premises by said removal. In the event that Landlord requests such removal and Tenant fails to remove same and repair any damage caused thereby on or before the Expiration Date or sooner termination of the Term, Tenant agrees to reimburse and pay Landlord for the reasonable cost of removing same and repairing any damage to the Premises caused by said removal. All of said alterations, interior decorations, improvements, additions, fixtures, furniture and equipment remaining on the Premises after the Expiration Date, or upon sooner termination of the Term, shall become the property of Landlord.

Notwithstanding any term or provision to the contrary hereinbefore or hereinafter set forth, so long as no Event of Default (as herein defined) has occurred and is continuing, at the Expiration Date or sooner termination of the Term, Tenant shall be entitled to remove from the Premises any of Tenant's inventory, equipment, machinery and trade fixtures as necessary in the ordinary course of Tenant's business, and Tenant shall, at Tenant's cost and expense, repair any damage to the Premises caused by such removal. Tenant shall indemnify, defend and hold Landlord harmless from and against any and all costs and expenses

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incurred by Landlord (including the cost of any damage to the Premises, or any part thereof) in connection with the removal by Tenant of any of Tenant's inventory, equipment, machinery and trade fixtures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;In making any improvement, alteration, addition, installation, removal, renovation or the like, Tenant shall not materially damage or injure the Premises. Without limiting the effectiveness of the immediately preceding sentence, Tenant agrees to repair all damage or injury that may occur to the Premises in connection with such improvements, alterations, additions, installations, removals, renovations, or the like, so as to restore the Premises to their original condition prior to such damage or injury. Any contractors employed by Tenant for any and all improvements, alterations, additions, installations, removals or the like shall be subject to the prior written approval of Landlord, which approval shall not be unreasonably withheld, conditioned or delayed. All such contractors shall carry workmen's compensation insurance and general liability insurance in amounts, form and content, and with companies reasonably satisfactory to Landlord. Prior to the commencement by Tenant of any improvements, alterations, additions, installations, removals or the like permitted pursuant to this Section 8, Tenant shall comply with and satisfy (in the reasonable judgment of Landlord) each and all of the following conditions: (1) Tenant shall have obtained Landlord's prior written approval as to any contractors to be employed by Tenant for any and all such improvements, alterations, additions, installations, removals or the like, which approval shall not be unreasonably withheld, conditioned, or delayed; (2) all such contractors shall carry workmen's compensation insurance, general liability insurance in amounts, form and content, and with companies reasonably satisfactory to Landlord, with certificates of the same being delivered to Landlord; (3) Tenant shall have obtained, at its sole cost and expense, all necessary permits, authorizations and licenses required by the various governmental authorities having jurisdiction over the Premises and deliver copies of the same to Landlord; (4) full and complete Plans and Specifications for the work and all aspects of the same must be submitted to and approved by Landlord; and (5) the provisions of Section 9(d) below must be satisfied. All work done in or about the Premises pursuant to this Section 8 or otherwise shall be performed in strict compliance with all governmental codes, regulations and requirements and shall be performed in a first class manner using the highest grade and all new materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;<u>MECHANICS' LIENS</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Liens.</u> Tenant will not create or permit to be created or remain, and will discharge upon notice, any lien, encumbrance or charge levied on account of the imposition of any mechanic's, laborer's or materialman's claim, which might be or become a lien, encumbrance or charge upon the Premises, or any part thereof, the income therefrom or any interest of Tenant or Landlord in and to the premises, by reason of work claimed to have been done for or materials claimed to have been furnished to Tenant and Tenant shall not suffer any other matter or thing whereby the estate, rights and interest of Landlord and/or Tenant in the Premises or any part thereof might be impaired; <u>provided</u> that any mechanic's, laborer's or materialman's lien, notice of intention, or notice of refusal, may be discharged in accordance with subsection (b) of this Section 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Discharge of Liens.</u> If any mechanic's, laborer's or materialman's lien, or notice of intention, notice of refusal or stop notice, shall at any time be filed against the Premises or any part thereof, or against Landlord, by reason of work claimed to have been done for or materials claimed to have been furnished to Tenant, then in any such event Tenant, within thirty (30) days after notice of the filing thereof, will cause it to be discharged of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwise. If Tenant shall fail to cause such lien or notice to be discharged within the period aforesaid, then, in addition to any other right or remedy, Landlord may, but shall not be obligated to, discharge it either by paying the amount claimed to be due or by procuring the discharge of such lien or notice by deposit or by bonding proceedings, and in any such event, any amount so paid by Landlord and all costs and expenses incurred by Landlord in connection therewith shall constitute Additional Rent payable by Tenant under this Sublease and shall be paid by Tenant to Landlord on demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Consent of Landlord Intended.</u> Nothing in this Sublease shall be deemed or construed in any way as constituting the consent or request of Landlord, express or implied, to any contractor, subcontractor, laborer or materialman for the performance of any labor or the furnishing of any materials for any specific alteration, addition, improvement or repair to the Premises or any part thereof, nor as giving Tenant any right, power or authority to contract for or permit the rendering of any services or the furnishing of any materials that would give rise to the filing of any lien against the Premises or any part thereof, nor as evidencing Landlord's consent that the Premises may be subject to any mechanic's, laborer's or materialman's lien, nor shall be interpreted as, or operate as the Landlord's waiver of Tenant's compliance with any terms under this Sublease. Nothing contained in this Sublease shall be construed to allow a lien against the estate of Landlord in the Premises by reason of any consent given to Tenant to improve the Premises, and execution of this Sublease by Landlord shall not be deemed that the erection, construction,

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alteration or repair was in fact for the immediate use and benefit of Landlord, it being acknowledged that the erection, construction, alteration or repair was in fact for the immediate use and benefit of Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.&nbsp;&nbsp;&nbsp;&nbsp;LEASEHOLD MORTGAGE.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Tenant may from time to time, and with the prior written notice to Landlord, secure financing, debt offering, or general credit lines from banks, insurance companies, governmental entities, or other lenders, granting to such banks, insurance companies, governmental entities, or other lenders (hereinafter, a "***Leasehold Mortgagee***") as security for such financing or general credit lines a mortgage encumbering Tenant's leasehold interest in the Premises (which may include a collateral assignment of Tenant's leasehold interest in the Premises with rights of reassignment (hereinafter, a ***"Leasehold Mortgage")*** and/or a security interest in Tenant's fixtures, equipment, and the Enhanced Tenant Improvements (collectively, "***Tenant's FF&E***"); provided that any Leasehold Mortgage shall not materially affect: (i) Landlord's rights pursuant to this Sublease; and/or (ii) the rights of any of Landlord's lender(s).

&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Upon request of Tenant, Landlord agrees to execute such documents or instruments as shall evidence Landlord's consent to a Leasehold Mortgage and/or security interest in Tenant's FF&E, including but not limited to a conditional assignment of this Sublease to Leasehold Mortgagee and a subordination, non-disturbance, and attornment agreement, if required by Leasehold Mortgagee, and give Leasehold Mortgagee the same right to notice of and time to cure any default of Tenant as is provided Tenant under the provisions of this Sublease. Landlord and Tenant agree to execute or make such further modifications or amendments to this Sublease as a prospective or existing holder of any Leasehold Mortgage may request, provided that any such modification or amendment: (i) shall not materially and adversely modify any material terms of this Sublease or Landlord's rights or remedies hereunder; and (ii) shall be subject to the reasonable consent of Landlord's lender(s). A failure of Landlord to respond in writing to such a request for consent within thirty (30) days of such initial request and within five (5) business days following a subsequent written "reminder" request shall be deemed consent by Landlord to such request or an acceptance of such document, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Landlord shall give to Leasehold Mortgagee (provided Leasehold Mortgagee shall have given to Landlord a notice specifying such holder's name and address) a copy of any notice, consent, approval, request, demand or communication given to Tenant under this Sublease at the same time as and whenever any such notice shall thereafter be given by Landlord to Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;If Landlord shall give any such notice, then Leasehold Mortgagee shall (provided that it notifies Landlord of its intention to do so) thereupon have the right to remedy a Default or to cause such Default to be remedied within the same time period available to Tenant hereunder. Landlord will accept performance by Leasehold Mortgagee with the same force and effect as though performed by Tenant. No such Default shall be deemed to exist and Landlord shall not exercise any rights Landlord may have as a result of such Default as long as such holder shall cure, if a cure is possible, the claimed Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.&nbsp;&nbsp;&nbsp;&nbsp;<u>REPAIRS.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Landlord shall be under no liability for repair, maintenance, alteration, improvement, reconstruction, renewal or any other action with respect to the Premises or any part thereof, or any plumbing, electrical, heating, ventilating, air conditioning, or other mechanical installation therein, except as may be expressly set forth in this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Except as provided in (c) below, during the Term, Tenant, at Tenant's sole expense, shall keep the Premises in a clean sound condition and in good order and repair. In addition, Tenant shall be solely responsible to keep the interior of the Premises in a clean sound condition and in good order and repair. &nbsp;&nbsp;&nbsp;&nbsp;

Tenant will at all times, from and after the Commencement Date, at Tenant's own cost and expense, maintain the Premises in good and tenantable condition, and make all needed repairs to the Premises and every part thereof. With respect to the loading docks, Tenant shall also be responsible to maintain in good condition and repair at its expense, the heating units over the dock doors, the dock plates and levelers, the mechanical doors between the firewalls, the dock bumpers and accessories and the forced air blowers.

Tenant's obligations under this Section 11 shall include, but not be limited to, repairing and maintaining items as are required by any governmental agency having jurisdiction thereof (whether the same is ordinary or extraordinary, foreseen or unforeseen), walls, ceilings, fixtures, heating, ventilating and air conditioning equipment exclusively servicing the Premises, if any (whether or not such heating,

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ventilating and air conditioning equipment is located inside the Premises), fire extinguishers within the Premises and other equipment within the Premises, all Tenant's signs, security grilles or similar enclosures, doors, locks and closing devices, and all window sash, glass, casement or frames, doors and door frames; provided that Tenant shall make no adjustment, alteration or repair of any part of the sprinkler or sprinkler alarm system in or serving the Premises (if any exists now or in the future) without Landlord's prior approval, which approval shall not be unreasonably withheld, conditioned or delayed. Tenant shall permit no waste, damage or injury to the Premises and Tenant shall initiate and carry out a program of regular maintenance and repair of the Premises, including the painting or refinishing of all areas of the interior, so as to impede, to the extent possible, deterioration by ordinary wear and tear and to keep the same in attractive condition. Tenant will not overload the electrical wiring serving the Premises or within the Premises, and will install at its expense, but only after obtaining Landlord's written approval, any additional electrical wiring which may be required in connection with Tenant's apparatus.

If Tenant refuses or neglects to make any repairs and/or replacements which are its responsibility hereunder, or fails diligently to prosecute the same to completion, after written notice from the other of the need therefor, Landlord may enter upon the Premises and make such repairs at the expense of Tenant and such expense shall be collectible as Additional Rent upon demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Except as hereinbefore or hereinafter specifically provided, during the Term, Landlord shall be responsible for: (i) maintaining and paying for all preventative maintenance of (but not repairs and/or replacements to) the exterior of the Building and the roof of the Building, (ii) for landscaping and snow removal, and (iii) maintenance of driveways, parking lots and curbs, and such costs and expenses shall be recoverable by Landlord as Operating Expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Landlord warrants that the Building shall be free from defects in materials or workmanship for a period of one (1) year following Substantial Completion. Notwithstanding any contrary provision of this Sublease, Landlord shall promptly repair or replace any defective portion of the Building as to which Landlord receives written notice of such defect prior to the one-year anniversary of Substantial Completion. Notwithstanding the foregoing, such one (1)-year period shall not affect the statute of limitations associated with a breach of contract claim related to the Building or with respect to a latent defect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.&nbsp;&nbsp;&nbsp;&nbsp;<u>CASUALTY.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>General.</u> If during the Term, the Building becomes damaged or destroyed in whole or in part by fire, other casualty, or any other cause (except condemnation), Tenant will immediately notify Landlord of such event. Subject to subsection (b) below, this Sublease will remain in full force and effect, except that the Rent will be abated proportionately to the extent and for the period that all or a portion of the Premises are rendered untenantable (provided Tenant does not in fact utilize the untenantable portion of the Premises) as a result of such casualty damage. In the event that the damage to the Building is such that Tenant cannot reasonably and effectively utilize the remainder of the Building for Tenant's Use, the Rent shall be abated in full. Within thirty (30) days after the date of the casualty Landlord shall cause Landlord's architect to prepare a written estimate of the time period required to repair and restore the damaged portions of the Building and deliver such estimate to Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Tenant's Right of Termination</u>. In the event that, based on the written estimate of Landlord's architect, the damage or destruction to the Premises is so extensive that it cannot be repaired or restored within a period of fourteen (14) months, measured from the date of Landlord's receipt of insurance proceeds from the insurer of the Building, Tenant shall have the unilateral right to terminate this Sublease upon written notice to Landlord given within fifteen (15) business days after Tenant's receipt of Landlord's architect's written estimate. This Sublease will then terminate one (1) day after Tenant gives Landlord written notice of Tenant's exercise of Tenant's right to terminate this Sublease. In the event of such termination, the Rent will be adjusted and paid to the date of the damage or destruction, and Tenant will immediately vacate and surrender the Premises (including the Building) upon such termination; provided that Tenant shall not be released from responsibility for any of Tenant's obligations under this Sublease for the period before such termination, or for any of Tenant's obligations under this Sublease which expressly survive such termination. If Tenant does not exercise Tenant's right to terminate, subsection (c) below shall govern. If the required repair or restoration cannot be completed within said fourteen (14) month period, but Tenant elects not to terminate the Sublease, Landlord shall continue to diligently pursue restoration pursuant to subsection (c) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Restoration by Landlord</u>. Unless this Sublease is terminated as set forth above, Landlord shall (i) repair or restore the damaged portions of the Premises with reasonable speed, subject to reasonable

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delays for adjusting losses under insurance policies and events of force majeure, as defined in Section 27 of this Sublease ("***Force Majeure***"), and (ii) this Sublease shall remain in effect as set forth in subsection (a) above. In such event, running of Lease Years will be tolled while Rent is abated and the Expiration Date shall automatically be extended for the period of time equal to the period between the date of the damage or destruction until the date the Premises are sufficiently repaired or restored so that they can be beneficially used for Tenant's Use. Tenant agrees that after completion of such work by Landlord, Tenant will, at Tenant's sole cost and expense, repair and replace all alterations, additions, improvements, fixtures, signs, and equipment installed by Tenant prior to the date of damage or destruction. Notwithstanding the foregoing, in the event the restoration of the affected Building is not substantially completed within the earlier of (i) fourteen (14 months following the date of Landlord's receipt of insurance proceeds from the insurer of the Building, or (ii) the estimated restoration period, measured from the date of Landlord's receipt of insurance proceeds from the insurer of the Building, provided by Landlord's architect pursuant to subsection (b) above, each such deadline subject to extension caused by events of Force Majeure, then Tenant shall have the right to terminate this Sublease by written notice to Landlord at any time until Landlord substantially completes the repair and restoration

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Damage During Last Year.</u> If at any time during the last Lease Year of the Term the Building is so damaged by fire or otherwise that the cost of restoration exceeds fifty percent (50%) of the replacement value of the Building (exclusive of foundations) immediately prior to such damage, Tenant may, within thirty (30) days after such damage, give notice of its election to terminate this Sublease, in the manner and with the same effect as stated in subsection (b) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Proceeds following Termination.</u>&nbsp;&nbsp;&nbsp;&nbsp;If Tenant terminates this Sublease as provided above: (i) the insurance proceeds payable as a result of such Casualty shall be payable to satisfy and discharge: (A) first, to satisfy the Initial Loans or any refinanced Loans; (B) second, paid to the Tenant to the extent of Enhanced Tenant Improvements Contribution; and (C) any remaining balance of the award shall be payable to Landlord. Thereafter the parties shall be released hereunder, each to the other, from all liability and obligations thereafter arising.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.&nbsp;&nbsp;&nbsp;&nbsp;<u>CONDEMNATION.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination</u>. This Sublease will terminate immediately upon: (i) a taking or condemnation of the entire Premises for public purposes; (ii) a partial taking which prevents Tenant from being reasonably able to use the remainder of the Leased Premises for Tenant's Use; or (iii) with respect to the Premises, upon Landlord's conveyance or lease of the Premises to any condemning authority in settlement of a threat of condemnation or taking. The Rent will be adjusted to the date of termination due to such taking, leasing or conveyance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Award</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;In the event the Premises are taken in full, any award shall be applied: (A) first, to satisfy the Initial Loans or any refinanced Loans; (B) second, paid to the Tenant to the extent of Enhanced Tenant Improvements Contribution; and (C) any remaining balance of the award shall be payable to Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;In the event of a partial taking for which this Sublease is not terminated, the Rent will abate in an amount which, in Landlord's and Tenant's reasonable judgment, is proportionate to the extent the Premises are rendered untenantable for the ordinary course of Tenant's business and for Tenant's Use. Tenant, however, will not have any claim against Landlord, nor any claim for any award from the condemning authority arising out of any such taking, lease, conveyance, or condemnation action nor in any way arising out of its leasehold interest in the Premises, but will have the right to pursue a separate claim against the condemning authority for its own loss of business and moving expenses. In addition, notwithstanding the immediately preceding sentence, Tenant shall have a claim against Landlord if Landlord receives a portion of any award based on property owned or leased by Tenant in the Premises, including but not limited to the Enhanced Tenant Improvements. If there is property in the Premises for which Tenant has paid all or some portion of the cost but which Tenant does not own, Landlord and Tenant shall reasonably determine whether, and to what extent, Tenant shall have a claim against Landlord if Landlord receives a portion of any award based on such property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Landlord will give Tenant as much notice as reasonably possible that such condemnation or taking might occur so that Tenant, in Tenant's sole discretion, can remove from the Premises any property wholly owned or leased by Tenant. &nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.&nbsp;&nbsp;&nbsp;&nbsp;<u>ASSIGNMENT AND SUBLETTING.</u>**&nbsp;&nbsp;&nbsp;&nbsp;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Provided that no Event of Default has occurred and is continuing, Tenant shall have the right to assign this Sublease or sublet the Premises or Buildings (i) to any parent, subsidiary, or affiliated company of Tenant, whether now existing or hereafter created, without the prior consent of Landlord, or (ii) to any lender (including any federal, state, or local government agency or body of any sort) that has provided grants, loans, or other sources of funding to Tenant, but only in accordance with any leasehold mortgage or other security interest granted with the consent of Landlord; or (iii) to any other operator that shall continue to use the Premises and Buildings for the Use, and that has any one of (a) a Net Worth (as defined below), or (b) market capitalization, or (c) EBITDA (earnings before interest, taxes, depreciation and amortization) reasonably sufficient to enable such proposed assignee to satisfy the ongoing obligations as the tenant under this Sublease. Otherwise, Tenant shall have the right (with the prior, written consent of the Landlord, which consent shall not be unreasonably withheld, conditioned, or delayed) to assign this Sublease or sublet the Premises or Buildings to any other person or entity, <u>provided</u>, however, that Tenant shall remain liable under this Sublease from and after the date of such assignment or subletting, and guarantee such obligation. As used herein, the term ***"Net Worth"*** means the excess of total assets over total liabilities, in each case as determined through audited financial statements and in accordance with generally accepted accounting principles consistently applied ***("GAAP"),*** excluding, however, from the determination of total assets all assets which would be classified as intangible assets under GAAP including goodwill, licenses, patents, trademarks, trade names, copyrights, and franchises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Anything to the contrary in this Sublease notwithstanding, a change of control of Tenant or its parent, or their subsidiaries or affiliated companies, whether by way of merger, sale, acquisition, stock offering, financing, re-financing, buy-out, operation of law, or otherwise, shall not be deemed an assignment or subletting within the meaning of this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Landlord shall have the right to assign this Sublease to a limited liability company controlled by, or under common control with, Landlord; provided that Landlord executes and delivers to Tenant an assignment of this Sublease whereby Landlord's assignee agrees to assume all of the obligations of Landlord hereunder.&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.&nbsp;&nbsp;&nbsp;&nbsp;<u>ACCESS TO PREMISES</u>**<u>.</u> 

Landlord and its authorized representatives, employees or agents shall have the right to enter the Premises at all reasonable times, upon not less than seventy-two (72) hours' written notice to Tenant, and accompanied by a Tenant representative, for any of the following purposes: to determine whether the Premises are in good condition and whether Tenant is complying with its obligations under this Sublease; to do any necessary maintenance and to make any restoration to the Premises that Landlord has the right or obligation to perform, and to serve, post, or keep posted any notices required or allowed under the provisions of this Sublease. During the last Lease Year of the term, or during any period in which an Event of Default has occurred and is continuing, to post "for Sale", "for "Rent" or "for Lease" signs, to show the Premises to prospective brokers, agents, buyers, tenants, or persons interested in an exchange, and to do any other act or thing necessary for the safety or preservation of the Premises.

Landlord shall not be liable in any manner for any inconvenience, disturbance, loss of business, nuisance, or other damage arising out of Landlord's entry on the Premises as provided in this Section 15, except damage resulting from the acts or omissions of Landlord or its authorized representatives. Tenant shall not be entitled to an abatement or reduction of Rent if Landlord exercises any rights reserved in this paragraph. Landlord shall conduct its activities on the Premises as allowed in this Section 15 in a manner that will not cause unreasonable inconvenience, annoyance, or disturbance to Tenant or to the business operations of Tenant.

Notwithstanding the foregoing to the contrary, Landlord acknowledges that due to the nature of Tenant's Use, it may be necessary for Tenant to limit access by Landlord and Landlord's agents and representatives to certain restricted areas within the Building, and in Tenant's sole discretion, any permitted access may include the requirement that Landlord, or any of Landlord's agents or representatives, be accompanied by a representative of Tenant. Neither Landlord, nor any of Landlord's agents or representatives, shall discuss or disclose the purpose of the access with, nor make inquiries of, employees of Tenant, other than Tenant's designated representative, Tenant's officers, or Tenant's counsel. Landlord agrees in each instance to indemnify, defend and hold Tenant harmless from and against any and all claims and liability resulting from any and all injuries to persons or damage to property while on the Premises caused in whole or in part by the acts or omissions of Landlord, Landlord's agents, representatives, or prospective tenants or purchasers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.&nbsp;&nbsp;&nbsp;&nbsp;<u>INDEMNIFICATION AND WAIVER OF CLAIMS.</u>**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;Upon the Commencement Date, Tenant agrees to indemnify, hold harmless and defend Landlord and all successors, assigns, employees, servants, agents, partners, members, directors, officers, shareholders and agents of the same (the "***Indemnified Parties***") from and against any and all costs, expenses (including reasonable counsel fees), liabilities, losses, damages, suits, actions, fines, penalties, claims or demands of any kind and asserted by or on behalf of any person or governmental authority, arising out of or in any way connected with, and the Indemnified Parties shall not be liable to Tenant on account of, (i) any failure by Tenant to perform any of the agreements, terms, covenants, or conditions of this Sublease required to be performed by Tenant, (ii) any failure by Tenant to comply with any statutes, ordinances, regulations or orders of any governmental authority, or (iii) any accident, death or personal injury, or damage to or loss or theft of property, which shall occur in or about the Premises, unless occasioned by reason of any act or omission of any of the Indemnified Parties constituting gross negligence or willful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Upon the Commencement Date, except with respect to the gross negligence or willful misconduct of any of the Indemnified Parties and, provided there is no breach of Landlord's warranty set forth in Section 11(d) hereof, the Indemnified Parties shall not be liable for, and Tenant hereby releases and relieves the Indemnified Parties from, all liability in connection with any and all loss of life, personal injury, damage to or loss of property, or loss or interruption of business occurring to Tenant, its agents, servants, employees, invitees, licensees, visitors, or any other person, firm, corporation or entity, in or about or arising out of the Premises, from, (i) any fire, other casualty, accident, occurrence or condition in or upon the Premises; (ii) any defect in or failure of (1) plumbing, sprinkling, electrical, heating or air conditioning systems or equipment, or any other systems and equipment of the Premises, and (2) the stairways, railings or walkways; (iii) any steam, gas, oil, water, rain or snow that may leak into, issue or flow from any part of the Premises from the drains, pipes or plumbing, sewer or other installation of same, or from any other place or quarter; (iv) the breaking or disrepair of any installations and equipment; (v) the falling of any fixture or any wall or ceiling materials; (vi) broken glass; (vii) latent or patent defects; (viii) the exercise of any rights by Landlord under the terms and conditions of this Sublease; (ix) any acts or omissions of other occupants of the Premises or of nearby buildings; (x) any acts or omissions of other persons; (xi) any acts or omissions (including those of negligence) of Landlord, its agents, servants and employees other than those of gross negligence or willful misconduct; and (xii) theft, acts of God or public enemy, injunction, riot, strike, insurrection, war, court order, or any order of any governmental authorities having jurisdiction over the Premises. Notwithstanding the foregoing, in the event that an interruption in any utilities or services caused by the gross negligence or willful misconduct of any of the Indemnified Parties renders the Premises or a portion thereof untenantable for Tenant's Use, provided such interruption (i) is not caused by Tenant, its agents, employees, contractors or invitees, (ii) exists for more than five (5) consecutive business days, and (iii) Tenant in fact ceases to use the Premises or such portion during such period of cessation or interruption (an "***Interruption***"), then, commencing on the sixth (6th) business day after such Interruption, Rent hereunder shall be abated until such services or utilities have been restored (or, if earlier, the date Tenant re-opens for business in the Premises or applicable portion thereof). The foregoing specific remedies shall be Tenant's sole and exclusive remedies resulting from such Interruption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.&nbsp;&nbsp;&nbsp;&nbsp;<u>COVENANTS OF TENANT.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Affirmative.</u> Tenant covenants and agrees that Tenant shall, without demand:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Pay the Rent, Additional Rent, and all other charges herein reserved as rent on the days and times and at the price that the same are made payable, without fail, and if Landlord shall at any time or times accept the Rent or other charges after the same shall have become due and payable, such acceptance shall not excuse delay upon subsequent occasions, or constitute or be construed as a waiver of any of Landlord's rights. Tenant agrees that any charge or payment herein reserved, included, or agreed to be treated or collected as Rent may be proceeded for and recovered by the Landlord in the same manner as Rent due and in arrears.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Comply with any requirements of any of the constituted public authorities and with the terms of any state or federal statute or local law, ordinance, order or regulation applicable to Tenant or the Premises, and save Landlord harmless from penalties, fines, costs or damages resulting from failure to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Intentionally Omitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;Peaceably deliver up and surrender possession of the Premises to Landlord on the Expiration Date or sooner termination of this Sublease, promptly delivering to Landlord at Landlord's office all keys for the Premises.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;Give to Landlord prompt written notice of any damage occurred to the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;Conduct business operations consistent with Tenant's Use at the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp;Comply with the requirements of all applicable restrictions or encumbrances now or hereafter of record affecting the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Negative.</u> Tenant covenants and agrees that Tenant shall do none of the following things without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Occupy the Premises in any other manner or for any other purpose other than Tenant's Use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Do or suffer to be done, any act, matter or thing objectionable to the fire insurance companies whereby the casualty insurance or any other insurance now in force or hereafter to be placed on the Premises or any part thereof, shall become void or suspended, or whereby the same shall be rated as a more hazardous risk than at the date when Tenant receives possession of the Premises hereunder, with it understood and agreed by the parties that Tenant will be provided reasonable opportunity and time to work with Landlord and their insurers in a reasonably cooperative manner to address such matters prior to being considered by Landlord to be in breach of this covenant. In case of a breach of this covenant, in addition to all other remedies of Landlord hereunder, Tenant agrees to pay to Landlord as Additional Rent, any and all increase or increases in premiums on insurance carried by Landlord on the Premises, or any part thereof, caused in any way by the occupancy of Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Remove, attempt to remove or manifest an intention to remove Tenant's goods or property from or out of the Premises otherwise than in the ordinary and usual course of business, without having first either paid and satisfied Landlord for all Rent and all charges or payments reserved herein as Rent which are due or having made other arrangements satisfactory to Landlord for payment and satisfaction of all such Rent, charges and payments as the same shall become due hereunder.

**17A.&nbsp;&nbsp;&nbsp;&nbsp;EASEMENTS.** Landlord shall provide or obtain the agreements listed and in the form annexed hereto as <u>Exhibit J</u>.

Upon request of Tenant, Landlord will grant or cause the granting of any easements or rights-of-way, in recordable form, that may reasonably be required on or over the Property, or any lands owned by Landlord or any of Landlord's members or affiliates adjoining the Property, which easements shall be in such locations as Landlord shall determine and which shall not unreasonably interfere with the use of such adjoining Property, for utility purposes and for non-exclusive parking, vehicular and pedestrian access to construct, install, service, maintain, operate or repair such utilities, including driveways and curb cuts, and Landlord will execute and acknowledge an appropriate instrument or instruments evidencing such easements or rights-of-way. Any easement, right-of-way, or other right or interest granted pursuant to this Section shall in the instance that the Lease Term expires or the Sublease is otherwise terminated, revert to the ownership and benefit of the Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.&nbsp;&nbsp;&nbsp;&nbsp;<u>SUBORDINATION AND ATTORNMENT.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;This Sublease shall be subject and subordinate to the COMIDA Lease and the COMIDA Leaseback Agreement as more particularly defined in the Subordination and Non-Disturbance Agreement between COMIDA and the Tenant dated even date herewith, and to the lien of any mortgage, ground lease or other underlying lease presently upon the whole or any portion of the Premises or to any other mortgages, ground leases, other underlying leases which may hereafter be placed upon the whole or any portion of the Premises, as the same may be extended, modified or otherwise amended, without the necessity of any further instrument or act on the part of the Tenant to effectuate such subordination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The provisions of this Section 18 shall be self-operative; <u>provided</u>, however, that Tenant agrees that Tenant shall, at any time hereafter and from time to time, but not more than three times in any calendar year, within ten (10) business days of a request by Landlord, execute any further agreements, instruments or documents which may be required for the purpose of subjecting and subordinating this Sublease to the lien of any such mortgage or mortgages, and the failure of Tenant to execute any such

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agreements, instruments or documents shall constitute an Event of Default hereunder. Upon execution of this Sublease, Tenant shall deliver to Landlord a fully executed Subordination, Non-Disturbance and Attornment Agreement ("***SNDA***") substantially in the form attached hereto as <u>Exhibit E</u> and made a part hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Tenant agrees to attorn to and to recognize the mortgagee or the purchaser at foreclosure sale (or the grantee in any deed delivered in lieu of foreclosure) as Tenant's landlord for the balance of the Term. Tenant hereby agrees, however, that such mortgagee or the purchaser at foreclosure sale shall not be (i) liable for any act or omission of Landlord, (ii) subject to any offsets or defenses which Tenant might have against Landlord, (iii) bound by any Rent or Additional Rent which Tenant may have paid to Landlord for more than the current month, or (iv) bound by any amendment or modification of this Sublease made without its consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;As to any future mortgage, Landlord shall obtain an SNDA from such mortgagee on a commercially reasonable and recordable form providing that so long as Tenant is not in default of this Sublease, Tenant's use and occupancy of the Premises shall not be disturbed as a result of any foreclosure under any such mortgage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.&nbsp;&nbsp;&nbsp;&nbsp;<u>ESTOPPEL CERTIFICATE.</u>** 

Tenant shall, at any time and from time to time, but not more than three (3) times in any calendar year, and within ten (10) days after written request by Landlord, execute, acknowledge and deliver to Landlord a statement in writing, in the form attached hereto as <u>Exhibit F</u> and made a part hereof or such other form as Landlord may be reasonably require, certifying (among other things) (i) that this Sublease is in full force and effect without modification or amendment (or, if there have been any modifications or amendments, that this Sublease is in full force and effect as modified and amended and setting forth the modifications and amendments), (ii) the dates to which Base Rent and Additional Rent have been paid, and (iii) either that to the knowledge of the Tenant no Event of Default exists under this Sublease or specifying each such Event of Default; it being the intention and agreement of Landlord and Tenant that any such statement by Tenant may be relied upon by a prospective purchaser or a prospective or current mortgagee or ground lessor of the Premises or any part thereof, or by others, in any matter affecting the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20.&nbsp;&nbsp;&nbsp;&nbsp;<u>DEFAULT.</u>** 

The occurrence of any of the following shall constitute an "***Event of Default***" under this Sublease:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The vacation of the Premises by Tenant and abandonment of the Premises, which continues for thirty (30) days following written notice from Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;A failure by Tenant to pay, when due, any installment of Rent or Additional Rent hereunder (pursuant to Section 4 above or pursuant to any notice given to Tenant under Section 25) or any other sum herein required to be paid by Tenant (whether such sum is to be paid to Landlord or a third party) and such failure continues for ten (10) days after written notice from Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;A failure by Tenant to observe and/or perform any other term, covenant, agreement, provision or obligation of this Sublease to be observed and/or performed by Tenant, where such failure does not involve the timely payment of money and continues for thirty (30) days after written notice thereof from Landlord to Tenant; <u>provided</u>, however, that if such default cannot be cured within such thirty (30) day period using reasonable due diligence, Tenant shall have such additional time as shall be reasonably necessary to complete such cure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The filing of a petition by or against Tenant for adjudication as a bankrupt or insolvent or for its reorganization or for the appointment pursuant to any local, state or federal bankruptcy or insolvency law of a receiver or trustee of Tenant's property; or an assignment by Tenant for the benefit of creditors; or the taking possession of the property of Tenant by any local, state or federal governmental officer or agency or court-appointed official for the dissolution or liquidation of Tenant or for the operating, either temporary or permanent, of Tenant's business, provided, however, that if any such action is commenced against Tenant the same shall not constitute a default if Tenant causes the same to be dismissed within sixty (60) days after the filing of same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;A transfer, assignment, subletting, hypothecation or mortgaging of this Sublease in violation of the provisions of Section 14 above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;A default under the Guaranty (as herein defined).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21.&nbsp;&nbsp;&nbsp;&nbsp;<u>REMEDIES.</u>** 

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Upon the occurrence of an Event of Default, Landlord, without notice to Tenant in any instance (except where expressly provided for below or by applicable law) may do any one or more, or none, of the following. No right or remedy herein conferred upon or reserved to Landlord is intended to be exclusive of any other right or remedy provided herein or by law or in equity, but each shall be cumulative and in addition to every other right or remedy given herein or now or hereafter existing at law or in equity or by statute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Perform, on behalf and at the expense of Tenant, any obligation of Tenant under this Sublease which Tenant has failed to perform, the cost of which performance by Landlord shall be deemed Additional Rent and shall be payable by Tenant to Landlord upon demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Elect to terminate this Sublease and the tenancy created hereby and immediately reenter and take possession of the Premises, by summary proceedings, and remove Tenant and all other persons and property from the Premises, and store such property in a public warehouse or elsewhere at the cost of and for the account of Tenant without Landlord being deemed guilty of trespass or becoming liable for any loss or damage occasioned thereby, <u>provided</u> Landlord does not act with gross negligence or willful misconduct. Landlord has the right to take all self-help steps available to secure the Premises and prevent waste of the Premises or any of the items on the Premise or in the Building. If this Sublease is terminated by Landlord pursuant hereto, Tenant nevertheless shall remain liable for any and all Rent and damages which may be due or sustained, or would have been due but for such termination, for and throughout the balance of the Term, all reasonable costs, fees and expenses including, but not limited to, reasonable attorneys' fees, costs and expenses incurred by Landlord in pursuit of its remedies hereunder, or in renting the Premises to others from time to time (all such Rent, damages, costs, fees and expenses being referred to herein as "***Rental Damages***") and additional damages (the "***Termination Damages***"), which, at the election of Landlord, shall be either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;an amount equal to the Rent which, but for termination of this Sublease, would have become due during the remainder of the Term, less the amount of Rent, if any, which Landlord shall receive during such period from others to whom the Premises may be rented (other than any additional rental received by Landlord as a result of any failure of such other person to perform any of its obligations to Landlord), in which case such Termination Damages shall be computed and payable in monthly installments, in advance, on the first day of each calendar month following termination of the Sublease and continuing until the date on which the Term would have expired but for such termination; any suit or action brought to collect any such Termination Damages for any month shall not in any manner prejudice the right of Landlord to collect any Termination Damages for any subsequent month by a similar proceeding; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;an amount equal to the present worth (as of the date of such termination) of Rent which, but for termination of the Sublease, would have become due during the remainder of the Term, in which case such Termination Damages shall be payable to Landlord in one lump sum on demand and shall bear interest at the Default Rate until paid. For purposes of this clause (ii), "present worth" shall be computed by discounting such amount to present worth at a discount rate equal to one percentage point above the discount rate then in effect at the Federal Reserve Bank nearest to the location of the Premises.

If such termination shall take place after the expiration of two (2) or more Lease Years then, for purposes of computing the Termination Damages, the additional rent payable with respect to each Lease Year following termination (including the Lease Year in which such termination shall take place) shall be conclusively presumed to be equal to the average additional rent payable with respect to each complete Lease Year preceding termination. If such termination shall take place before the expiration of two (2) Lease Years then, for purposes of computing the Termination Damages, the additional rent payable with respect to each Lease Year following termination (including the Lease Year in which such termination shall take place) shall be conclusively presumed to be equal to twelve (12) times the average monthly payment of additional rent due prior to such termination. Rental and Termination Damages shall be due and payable immediately upon demand by Landlord following any termination of this Sublease pursuant hereto.

If this Sublease is terminated pursuant hereto, Landlord shall use commercially reasonable efforts to relet the Premises or any part thereof, alone or together with other premises, for such term(s) (which may be greater or less than the period which otherwise would have constituted the balance of the Term) and on such terms and conditions (which may include concessions or free rent and alterations of the Premises) as Landlord, in its reasonable discretion, may determine. Provided Landlord has complied with the terms of this paragraph, Tenant's obligations hereunder shall not be

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diminished by any failure by Landlord to relet the Premises or any failure by Landlord to collect any Rent due upon such reletting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Accelerate all Rent and Additional Rent due for the balance of the Term and declare the same to be immediately due and payable, in which case additional rent shall be computed in accordance with (b) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Exercise any other legal or equitable right or remedy which it may have. All remedies set forth herein are intended to be cumulative and Landlord shall have the right to exercise any one or more of same in its discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any provision of this Sublease to the contrary, Landlord agrees to use Landlord's commercially reasonable efforts to mitigate Landlord's damages as a result of the occurrence of an Event of Default by Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.&nbsp;&nbsp;&nbsp;&nbsp;<u>REQUIREMENT OF STRICT PERFORMANCE.</u>** 

The failure or delay on the part of either party to enforce or exercise at any time any of the provisions, rights or remedies in the Sublease shall in no way be construed to be a waiver thereof, nor in any way to affect the validity of this Sublease or any part hereof, or the right of the party thereafter to enforce each and every such provision, right or remedy. No waiver of any breach of this Sublease shall be held to be a waiver of any other or subsequent breach. The receipt by Landlord of Rent at a time when an Event of Default is occurring shall not be construed as a waiver of such Event of Default. The receipt by Landlord of a lesser amount than the Rent due shall not be construed to be other than a payment on account of the Rent then due, nor shall any statement on Tenant's check or any letter accompanying Tenant's check be deemed an accord and satisfaction, and Landlord may accept such payment without prejudice to Landlord's right to recover the balance of the Rent due or to pursue any other remedies provided in this Sublease. No act or thing done by Landlord or Landlord's agents or employees during the Term shall be deemed an acceptance of a surrender of the Premises, and no agreement to accept such a surrender shall be valid unless in writing and signed by Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23.&nbsp;&nbsp;&nbsp;&nbsp;<u>EXPIRATION; SURRENDER OF PREMISES; HOLDING OVER.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Sublease shall terminate and Tenant shall deliver up and surrender possession of the Premises on the Expiration Date, and Tenant waives the right to any notice of termination or notice to quit. Prior to vacating the Premises, Tenant shall provide Landlord with its forwarding address.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Tenant covenants that upon the Expiration Date or sooner termination of this Sublease, Tenant shall deliver up and surrender possession of the Premises in the same condition in which Tenant has agreed to keep the same during the continuance of this Sublease and in accordance with the terms hereof, normal wear and tear excepted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Upon the failure of the Tenant to surrender possession of the Premises upon the Expiration Date or sooner termination of this Sublease, Tenant shall be deemed to be merely a tenant at will, shall occupy the Premises as a month-to-month tenant, and shall pay to Landlord, for and during such period of holding over, an amount equal to one hundred fifty percent (150%) of the monthly Base Rent required to be paid under this Sublease during the last Lease Year of the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.&nbsp;&nbsp;&nbsp;&nbsp;<u>COMPLIANCE WITH LAWS.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Generally.</u> During and throughout the Term, Tenant, at its sole cost and expense shall comply with all federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations and ordinances affecting or regulating Tenant's use of the Premises, including, but not limited to, those which require the making of any structural, unforeseen or extraordinary changes to the Premises, whether or not any such statutes, laws, rules, orders, regulations or ordinances which may be hereafter enacted involve a change of policy on the part of the governmental body enacting the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Environmental.</u> Without limiting the generality of (a) above, Tenant shall, with respect to Tenant's Use, comply with all applicable laws with respect to the generation, treatment, storage or disposal of "solid waste", "hazardous materials", "hazardous waste", "hazardous substances" or "oil" (collectively, "***Materials***") as such terms are defined under the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601 et seq., as amended, the Resource Conservation and Recovery Act of 1976, 42 U.S.C. 6901 et seq., as amended, and any and all other "environmental statutes" which regulate the use of hazardous and/or dangerous substances, and the regulations promulgated thereunder and any and all state and local laws, rules and regulations, including without limitation those laws applicable to, the

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discharge of the Materials into the environment. Tenant may use such Materials in the ordinary course of Tenant's business; <u>provided</u> that such use is in accordance with all applicable statutes, laws, rules and regulations, and any manufacturer instructions, and <u>provided</u> <u>further</u> that Tenant may not discharge any Materials except as provided by the applicable statutes, laws, rules and/or regulations, and specifically may not discharge any Materials in any storm sewer or any catch basin, drain and/or drainpipe leading or connected thereto. Tenant shall indemnify, defend and hold Landlord harmless from any such improper discharge to a storm sewer by Tenant or any other liability as a result of failing to comply with this provision, including any costs of all necessary clean-up activities occasioned by Tenant's actions, whether during the Term or after termination of this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival.</u> The provisions of this Section 24 shall survive the expiration or earlier termination of this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25.&nbsp;&nbsp;&nbsp;&nbsp;<u>NOTICES.</u>**

Wherever in this Sublease it shall be required or permitted that notice or demand be given or served by either party to this Sublease to or on the other party, such notice or demand shall be deemed to have been duly given to or served upon the party intended to receive the same if such notice is in writing and sent either by (i) Federal Express or such other nationally recognized commercial, overnight, receipted delivery service, or (ii) by hand delivery, and in any case addressed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To Landlord at:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1010 Lee Road

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rochester, NY 14606

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attn: [XXX]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To Tenant at:

c/o Li-Cycle Holdings Corp. <br>207 Queen's Quay West, Suite 590

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Toronto, Ontario M5J 1A7

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canada

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attn: General Counsel

Legal counsel for any party hereto shall be entitled to give any notice for such party. The date of delivery of any notice provided for in this Agreement shall be the date after the date of deposit to the overnight delivery service, or the date of actual delivery to the above address of the party to be notified if hand delivered. The person and place to which notice may be given may be changed from time to time by Landlord or Tenant respectively upon written notice to the other, effective five (5) days after delivery of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26.&nbsp;&nbsp;&nbsp;&nbsp;<u>BROKER COMMISSIONS.</u>** 

Tenant and Landlord warrant each to the other that neither has dealt with any broker with respect to this Sublease.

Tenant and Landlord shall each indemnify and hold harmless the other against all costs, reasonable attorneys' fees and other liabilities for commissions or other compensation claimed by any broker or agent claiming the same by, through or under Tenant or Landlord, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**27.&nbsp;&nbsp;&nbsp;&nbsp;<u>FORCE MAJEURE.</u>** 

Landlord and Tenant shall be excused for the period of any delay in the performance of any of their respective obligations hereunder, when prevented from so doing by cause or causes beyond Landlord's or Tenant's reasonable control, which shall include, without limitation, all labor disputes, inability to obtain any material or services, civil commotion, acts of God, governmental order or pandemic (including without limitation, the COVID-19 variant).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**28.&nbsp;&nbsp;&nbsp;&nbsp;<u>LANDLORD'S OBLIGATIONS.</u>**

Landlord's obligations hereunder shall be binding upon Landlord only for the period of time that Landlord is in ownership of the Property; and, upon termination of that ownership, Tenant, except as to any obligations which have theretofore accrued, shall look solely to Landlord's successor in interest in the Property for the satisfaction of each and every obligation of Landlord hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.&nbsp;&nbsp;&nbsp;&nbsp;<u>SIGNAGE.</u>**

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Tenant shall have the right, at Tenant's sole cost and expense, to erect one or more identification signs for Tenant on the exterior of the Building, subject, however, to Tenant's obtaining the prior written approval of such signs from Landlord (such approval not to be unreasonably withheld, conditioned or delayed) and subject further to the approval of any agency, department, commission, board, bureau or instrumentality having jurisdiction over the Premises. Such signs shall be installed by a reputable contractor reasonably acceptable to Landlord. In addition, subject to all applicable laws, Tenant shall be entitled to construct and maintain a monument sign on the Property (the "***Monument Sign***"), <u>provided</u> that the location, size, design, and appearance of the Monument Sign shall be subject to Landlord's prior written approval, which shall not be unreasonably withheld, conditioned, or delayed. The construction, installation, maintenance, repair and replacement of the Monument Sign shall be at Tenant's sole cost and expense. In addition, Tenant shall be responsible for obtaining any and all necessary approvals from any agency, department, commission, board, bureau or instrumentality having jurisdiction over the Premises, prior to the construction and installation of the Monument Sign. Any changes requested by Tenant to be made to the Monument Sign shall be subject to Landlord's prior written approval, which shall not be unreasonably withheld, conditioned, or delayed, and, if approved, shall be made by Tenant at Tenant's sole cost and expense. Tenant shall hold Landlord harmless from any damage caused to the Building or the Property as a result of the installation and maintenance of such signs. Upon the Expiration Date or sooner termination of this Sublease, it shall be Tenant's obligation, at Tenant's sole expense, to remove all signs attached to the exterior of the Building and to restore the exterior faces of the Building to their condition prior to erecting such signs, normal wear and tear excepted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**30.&nbsp;&nbsp;&nbsp;&nbsp;<u>LANDLORD'S LIABILITY.</u>** 

Landlord shall have no personal liability under this Sublease with respect to any of the terms, conditions or covenants made or to be performed by Landlord under or pursuant to this Sublease. Tenant hereby covenants and agrees that Tenant shall look solely to the equity of the Landlord in the Premises or any applicable insurance proceeds for the satisfaction of any claim, remedy or cause of action accruing to Tenant as a result of the breach of any provision of this Sublease by Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**31.&nbsp;&nbsp;&nbsp;&nbsp;<u>SUCCESSORS.</u>** 

The respective rights and obligations provided in this Sublease shall bind and shall inure to the benefit of the parties hereto, their respective successors and permitted assigns, <u>provided</u>, however, that no rights shall inure to the benefit of any such successor of Tenant unless Landlord's written consent for the transfer to such successor, if applicable, has first been obtained as provided in Section 14. If more than one person or party has signed this Sublease as "Tenant", then this Sublease shall be binding on the same and shall have been entered into by them jointly and severally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**32.&nbsp;&nbsp;&nbsp;&nbsp;<u>GOVERNING LAW.</u>** 

This Sublease shall be construed, governed and enforced in accordance with the laws of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**33.&nbsp;&nbsp;&nbsp;&nbsp;<u>SEVERABILITY.</u>** 

If any provisions of this Sublease shall be held to be invalid, void or unenforceable, the remaining provisions hereof shall in no way be affected or impaired and such remaining provisions shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**34.&nbsp;&nbsp;&nbsp;&nbsp;<u>CAPTIONS.</u>** 

Any headings preceding the text of the several sections and subsections hereof are inserted solely for convenience of reference and shall not constitute a part of this Sublease, nor shall they affect its meaning, construction or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**35.&nbsp;&nbsp;&nbsp;&nbsp;<u>GENDER.</u>** 

As used in this Sublease, the word "person" shall mean and include, where appropriate, an individual, corporation, partnership or other entity; the plural shall be substituted for the singular, and the singular for the plural, where appropriate; and words of any gender shall include any other gender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**36.&nbsp;&nbsp;&nbsp;&nbsp;<u>EXECUTION.</u>** 

This Sublease shall become effective when signed by a duly authorized officer or representative of each of the parties hereto and delivered to the other party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**37.&nbsp;&nbsp;&nbsp;&nbsp;<u>ENTIRE AGREEMENT.</u>** 

This Sublease contains all the agreements, conditions, understandings, representations and warranties made between the parties hereto with respect to the subject matter hereof, and expressly replaces and supersedes the letter of intent between the parties dated October 25, 2021 and the Pre-Development Agreement, each of which are hereby terminated, and this Sublease may not be modified orally or in any manner other than by an agreement in writing signed by both parties hereto or their respective successors in interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**38.&nbsp;&nbsp;&nbsp;&nbsp;<u>CORPORATE AUTHORITY.</u>** 

If Tenant is a corporation, each individual executing this Sublease on behalf of said corporation represents and warrants that he is duly authorized to execute and deliver this Sublease on behalf of said corporation in accordance with the duly adopted resolution of the Board of Directors of said corporation or in accordance with the bylaws of said corporation, and that this Sublease is binding upon said corporation in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**39.&nbsp;&nbsp;&nbsp;&nbsp;<u>NO OFFER.</u>**

The submission of this Sublease to Tenant is not an offer to lease the Premises or an agreement by Landlord to reserve the Premises for Tenant. Landlord will not be bound to Tenant until Tenant has duly executed and delivered duplicate original Subleases to Landlord and Landlord has duly executed and delivered one of those duplicate original Subleases to Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**40.&nbsp;&nbsp;&nbsp;&nbsp;<u>MEMORANDUM OF SUBLEASE.</u>** 

Simultaneously with the execution of this Sublease and from time to time thereafter upon request by Tenant, Landlord and Tenant, at Tenant's sole cost and expense, will execute a Memorandum of Sublease in a form acceptable for filing or recording and substantially in form and content as set forth on <u>Exhibit G</u> attached hereto and made a part hereof, setting forth the legal description of the Property, the material terms of this Sublease, including, but not limited to, the Renewal Options or any other provisions hereof (excepting the rental provisions) as either party may request, and such other terms and provisions as may be required by applicable laws to be included in such Memorandum of Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**41.&nbsp;&nbsp;&nbsp;&nbsp;<u>TIME OF ESSENCE.</u>** 

Time is of the essence of each and every provision of this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**42.&nbsp;&nbsp;&nbsp;&nbsp;<u>WAIVER OF JURY TRIAL.</u>** 

Landlord and Tenant waive trial by jury in any action, proceeding or counterclaim brought by either of them against the other on all matters arising out of this Sublease or the use and occupancy of the Premises. If Landlord commences any summary proceeding for nonpayment of Rent, Tenant will not interpose (and waives the right to interpose) any counterclaim in any such proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**43.&nbsp;&nbsp;&nbsp;&nbsp;<u>WAIVER OF RIGHT OF REDEMPTION.</u>** 

Tenant hereby waives any right of redemption to which it may be entitled pursuant to the laws of the State of New York or any other jurisdiction.

**44**.&nbsp;&nbsp;&nbsp;&nbsp;**<u>GUARANTY</u>**.

The Landlord has entered into this Sublease in reliance upon the Guaranty made by Li-Cycle Holdings Corp. in favor of Landlord dated of even date herewith in the form attached hereto as <u>Exhibit D</u> and made a part hereof (the "***Guaranty***"), pursuant to which the Guarantor has unconditionally guaranteed all of the obligations of the Tenant under this Sublease, including without limitation the covenants of Tenant for the payment of Rent and all of the additional covenants of Tenant set forth herein. The effectiveness of this Sublease is expressly conditioned upon Landlord's receipt of an original counterpart of the Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**45.&nbsp;&nbsp;&nbsp;&nbsp;<u>COUNTERPARTS.</u>** 

This Sublease may be executed in any number of counterparts, each of which shall be deemed an original.

[SIGNATURE PAGES FOLLOW]

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IN WITNESS WHEREOF, the parties hereto have duly executed this Sublease the day and year first above written.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; LANDLORD:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**PIKE CONDUCTOR DEV 1, LLC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

ATTEST:&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

________________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By: <u>/s/ William Tehan</u>____________________________

&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;William Tehan, Authorized Signer

ATTEST:&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

________________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By: <u>/s/ Edward Brillante</u>____________________________

&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;Ed Brillante, Authorized Signer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TENANT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;**LI-CYCLE NORTH AMERICA HUB, INC.**

ATTEST:

________________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By: <u>/s/ Christopher J. Biederman</u>_______________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Christopher J. Biederman, CTO

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EXHIBIT A

Legal Description

<u>Parcel I</u>

ALL THAT TRACT OR PARCEL OF LAND, situated in the Town of Greece, County of Monroe, and State of New York, being and described as Lot 1 of the Li-Cycle at Lidestri Subdivision Being a Resubdivision of Lot AR-3A I and Lot AR-3A2 of the KPS Resubdivision Filed in Liber 356 of Maps, Page 62, as shown on a map filed in the Monroe County Cleerk's Office on March 25, 2022 in Liber 364 of Maps, Page 91.

Said Lot 1 is located on the southerly side of Ridgeway Road and on the westerly side of McLaughlin Road a/k/a McLoughlin Road and is the size and dimensions shown on said subdivision map.

Also, Together with the benefits of a Sanitary Sewer Easement benefitting Parcel I above as granted by Ridgeway Properties I, LLC to Ridgeway Properties I, LLC dated July 5, 2022 and recorded July 11, 2022 in Liber 12689 of Deeds at page 418.<br>

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EXHIBIT B-1

Design-Build Contract

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**ConsensusDocs® 415**

**STANDARD DESIGN-BUILD AGREEMENT AND GENERAL CONDITIONS BETWEEN OWNER AND DESIGN-BUILDER (Lump Sum Price)**

**TABLE OF ARTICLES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.AGREEMENT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.GENERAL PROVISIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.DESIGN-BUILDER'S RESPONSIBILITIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.OWNER'S RESPONSIBILITIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.SUBCONTRACTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.CONTRACT TIME

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.CONTRACT PRICE

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.CHANGES IN THE WORK

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.PAYMENT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.INDEMNITY, INSURANCE, AND BONDS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.SUSPENSION, NOTICE TO CURE, AND TERMINATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.DISPUTE MITIGATION OR RESOLUTION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.MISCELLANEOUS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.CONTRACT DOCUMENTS

**ARTICLE 1 AGREEMENT**

Job Number: 221026

This Agreement is made this 30 Day of June in the year 2022, by and between the

OWNER: Pike Conductor DEV 1, LLC 1010 Lee Road

Rochester, NY 14606

Phone: 585-440-4900

and the

DESIGN-BUILDER: Pike Conductor JV1, LLC

One Circle Street Rochester, NY 14607

Phone: 585-271-5256

for services in connection with the following:

PROJECT: Li-Cycle Warehouse and Administrative Facility

**ARTICLE 2 GENERAL PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1TEAM RELATIONSHIP Each Party agrees to act on the basis of trust, good faith, and fair dealing, and shall take all actions reasonably necessary to perform this Agreement in an economical and timely manner. The Parties shall each endeavor to promote harmony and cooperation among all Project participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.1Neither Design-Builder nor any of its agents or employees shall act on behalf of or in the name of Owner unless authorized in writing by Owner's Representative.

![image_0.jpg](image_0.jpg)

**Consensus Docs®415** - **Standard Design-Build Agreement and General Conditions Between Owner and Design-Builder (Lump Sum Price)©2017, Revised October 2019.** THIS DOCUMENT MAY HAVE BEEN MODIFIED. The ConsensusDocs technology platform creates a redline comparison to the standard language which the purchaser of this contract is authorized to share for review purposes.<br>Consultation with legal and insurance counsel are strongly encouraged. You may only make copies of finalized documents for distribution to parties in direct connection with this contract. Any other uses are strictly prohibited.<br>**CONTENT SECURE** ID: **EBF2513C-9DCC**<br>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2ETHICS Each Party shall perform with integrity. Each shall: (a) avoid conflicts of interest; (b) promptly disclose to the other Party any conflicts of interest which may arise. Each Party warrants it has not and shall not pay or receive any contingent fees or gratuities to or from the other Party, including its agents, officers and employees, Design Professional, Subcontractors, Subsubcontractors, Suppliers or Others, to secure preferential treatment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3DESIGN PROFESSIONAL Architectural and engineering services shall be procured from licensed, independent design professionals retained by Design-Builder or furnished by licensed employees of Design-Builder, as permitted by the Law. The person or entity providing architectural and engineering services shall be referred to as Design Professional. If Design Professional is an independent design professional, the architectural and engineering services shall be procured pursuant to a separate agreement between Design-Builder and Design Professional.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.1STANDARD OF CARE Design Professional shall furnish and provide the architectural and engineering services necessary to design the Project in accordance with Owner's requirements, as outlined in Owner's Program and other relevant data defining the Project. The architectural and engineering services shall be performed in accordance with the standard of professional skill and care required for a Project of similar size, scope, and complexity, during the time in which

the Services are provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4DEFINITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.1"Agreement" means this ConsensusDocs 415 Standard Design-Build Agreement and General Conditions Between Owner and Design-Builder (Lump Sum Price), as modified, amendments, exhibits, addenda, and attachments made part of this Agreement upon its execution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.1.1EXHIBIT A: Project Schedule dated June 2, 2022 EXHIBIT B: Construction Document List dated May 2022 EXHIBIT C: RFI Log dated May 18, 2022

EXHIBIT D: Pike Conductor JV1, LLC Proposal dated June 15, 2022 EXHIBIT E: Project Agreement (COMIDA)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.2"Business Day" means all Days, except weekends and official federal or state holidays where the Project is located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.3A "Change Order" is a written order signed by Owner and Design-Builder after execution of this Agreement, indicating changes in the scope of the Work or Contract Time, including substitutions proposed by Design-Builder and accepted by Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.4"Construction Schedule" is the document prepared by Design-Builder that specifies the dates on which Design-Builder plans to begin and complete various parts of the construction phase services Work, and the Project, including dates on which information and approvals are required from Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.5The "Contract Documents" consist of those documents identified in §14.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.6The "Contract Time" is the period between the Date of Commencement and total time authorized to achieve Final Completion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.7"Day" means calendar day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.8"Date of Commencement" is as provided for in §6.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.9"Defective Work" is any portion of the Work not in conformance to the requirements of the Contract Documents.

![image_0.jpg](image_0.jpg)![image_2.jpg](image_2.jpg)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.1"Final Completion" occurs on the date when Design-Builder's obligations under this Agreement are complete and accepted by Owner and final payment becomes due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.2A Hazardous Material is any substance or material identified now or in the future as hazardous under any Laws or any other substance or material which may be considered hazardous or otherwise subject to statutory or regulatory requirements governing handling, disposal or clean-up.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.3"Interim Directive" is any written order containing Work instructions that is signed by Owner after execution this Agreement and before Substantial Completion to the Work directed by Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.4"Law" means a federal, state or local law, ordinance, code, rule, or regulation applicable to the Work with which Design-Builder must comply that are enacted as of the Agreement date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.5"Others" means Owner's other: (a) contractors/constructors, (b) suppliers, (c) subcontractors, subsubcontractors, or suppliers of (a) and (b); and others employed directly or indirectly by (a), (b), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) or any by any of them or for whose acts any of them may be liable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.6"Overhead" shall mean (a) payroll costs and other compensation of Design-Builder's employees in Design-Builder's principal and branch offices; (b) general and administrative expenses of Design-Builder's principal and branch offices including charges against Design-Builder for delinquent payments; and (c) Design-Builder's capital expenses, including interest on capital used for the Work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.7The "Owner" is the person or entity identified in ARTICLE 1, and includes Owner's representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.8The "Owner's Program" is a description of Owner's objectives, budgetary and time criteria, space requirements and relationships, flexibility and expandability requirements, special equipment and systems, and site requirements, together with Schematic Design Documents which shall include drawings, outline specifications, and other conceptual documents illustrating the Project's basic elements, scale, and their relationship to the Worksite.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.9The "Parties" are collectively Owner and Design-Builder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.10The "Project," as identified in ARTICLE 1, is the building, facility, or other improvements for which Design-Builder is to perform the Work under this Agreement. It may also include improvements to be undertaken by Owner or Others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.11"Project schedule" A schedule that shows the timing and sequencing of the design and construction required to meet the time criteria set forth in Owner's Program. The Project includes the Construction Schedule and is coordinated with design phase service activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.12A "Subcontractor" is a person or entity retained by Design-Builder as an independent contractor to provide the labor, materials, equipment, or services necessary to complete a specific portion of the Work. The term Subcontractor does not include Design Professional or any separate contractor employed by Owner or any separate contractor's subcontractors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.13"Substantial Completion" of the Work, or of a designated portion, occurs on the date when construction is sufficiently complete in accordance with the Contract Documents so that Owner can occupy or utilize the Project, or a designated portion, for the use for which it is intended, without unscheduled disruption. The issuance of a certificate of occupancy is not a prerequisite for Substantial Completion if the certificate of occupancy cannot be obtained due to factors beyond Design-Builder's control. This date shall be confirmed by a certificate of Substantial Completion signed by The Parties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.14A "Subsubcontractor" is a party or entity who has an agreement with a Subcontractor or other Subsubcontractor, or Supplier to perform any portion of the Work or to supply material or equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.15A "Supplier" is a person or entity retained by Design-Builder to provide material and equipment for the Work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.16"Terrorism" means a violent act, or an act that is dangerous to human life, property, or infrastructure, that is committed by an individual or individuals and that appears to be part of an effort to coerce a civilian population or to influence the policy or affect the conduct of any government by coercion. Terrorism includes, but is not limited to, any act certified by the United States Secretary of Treasury as an act of terrorism pursuant to the Terrorism Risk Insurance Act, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.17The "Work" is the design services procured in accordance with §3.1, the construction services provided in accordance with §3.2, additional services in accordance with §3.11, and other services which are necessary to complete the Project in accordance with and reasonably inferable from the Contract Documents. The Work may refer to the whole Project or only a part of the Project if work is also being performed by Owner or Others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.18"Worksite" means the geographical area of the Project location mentioned in ARTICLE 1 where the Work is to be performed

**ARTICLE 3 DESIGN-BUILDER'S RESPONSIBILITIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1DESIGN SERVICES Pursuant to a mutually agreeable schedule, Design-Builder shall submit for Owner's written approval, as applicable, Design Development Documents or Construction Documents, based on the Contract Documents in existence at the time of the execution of this Agreement or any further development of Contract Documents that have been approved in writing by Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.1Further develop the Design Development Documents to further define the Project, including drawings and outline specifications fixing and describing the Project size and character as to site utilization, and other appropriate elements incorporating the structural, architectural, mechanical, and electrical systems. When Design-Builder submits the Design Development Documents, Design Builder shall identify in writing all material changes and deviations that have taken place from the Contract Documents in existence at the time of the execution of this Agreement. Any changes in the Work contained in the Design Development Documents approved by Owner shall result in a Change Order pursuant to ARTICLE 8 adjusting the Contract Price or the Date of Substantial Completion or the Date of Final Completion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.2The Construction Documents shall set forth in detail the requirements for construction of the Work, and shall be based upon codes, laws, or regulations enacted at the time of their preparation. When Design-Builder submits the Construction Documents, Design-Builder shall identify in writing all material changes and deviations that have taken place from the Design Development Documents or the Contract Documents in existence at the time of the execution of this Agreement. Any changes in the Work contained in the Construction Documents approved by Owner shall result in a Change Order pursuant to ARTICLE 8 adjusting the Contract Price or the Date of Substantial Completion or the Date of Final Completion. Construction shall be in accordance with the approved Construction Documents. One set of these documents shall be furnished to Owner before commencing construction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.3OWNERSHIP OF DOCUMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.3.1OWNERSHIP OF TANGIBLE DOCUMENTS Owner shall receive ownership of the property rights, except for copyrights, of all documents, drawings, specifications, electronic data, and information (hereinafter "Documents") prepared, provided or procured by Design-Builder, its

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Design Professional, Subcontractors, or consultants and distributed to Owner for this Project, upon the making of final payment to Design-Builder or in the event of termination under ARTICLE 11, upon payment for all sums due to Design-Builder pursuant to ARTICLE 11.

Owner's acquisition of the copyright shall be subject to Owner's making of all payments required by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.3.2COPYRIGHT The Parties agree that Owner shall not obtain ownership of the copyright of all Documents. Owner's acquisition of the copyright for all Documents shall be subject to the making of payments as required by §3.1.3.1 and the payment of the fee reflecting the agreed value of the copyright set forth below: None

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.3.3USE OF DOCUMENTS IN EVENT OF TERMINATION In the event of a termination of this Agreement pursuant to ARTICLE 11, Owner shall have the right to use, to reproduce, and to make derivative works of the Documents to complete the Project, regardless of whether there has been a transfer of copyright under §3.1.3.1, provided payment has been made pursuant to

§3.1.3.1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.3.4OWNER'S USE OF DOCUMENTS AFTER COMPLETION OF PROJECT After

completion of the Project, Owner may reuse, reproduce, or make derivative works from the Documents solely for the purposes of maintaining, renovating, remodeling, or expanding the Project at the Worksite. Owner's use of the Documents without Design-Builder's involvement or on other projects is at Owner's sole risk, except for Design-Builder's indemnification obligations, and Owner shall indemnify and hold harmless Design-Builder, its Design Professional, Subcontractors, and consultants, and the agents, officers, directors, and employees of each of them, from and against any and all claims, damages, losses, costs, and expenses, including reasonable attorneys' fees and costs, arising out of or resulting from any such prohibited use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.3.5DESIGN-BUILDER'S USE OF DOCUMENTS Where Design-Builder has transferred its copyright interest in the Documents under §3.1.3.1, Design-Builder may reuse Documents prepared by it pursuant to this Agreement in its practice, but only in their separate constituent parts and not as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.3.6Design-Builder shall obtain from its Design Professional, Subcontractors, and consultants rights and rights of use that correspond to the rights given by Design-Builder to Owner in this Agreement, and Design-Builder shall provide evidence that such rights have been secured.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2CONSTRUCTION SERVICES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.1Construction will commence upon the issuance by Owner of a written notice to proceed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.2In order to complete the Work, Design-Builder shall provide all necessary construction supervision, inspection, construction equipment, construction labor, materials, tools, and subcontracted items.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.3COMPLIANCE WITH LAW Design-Builder shall give all notices and comply with all Laws at its own costs. Design-Builder shall be liable to Owner for all loss, cost, and expense attributable to any acts or omissions by Design-Builder, its employees, subcontractors, and agents resulting from the failure to comply with Laws, including fines, penalties, or corrective measures. However, liability under this subsection shall not apply if notice to Owner was given, and advance approval by appropriate authorities, including Owner, is received.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.3.1CHANGES IN LAW The Contract Price or Contract Time, or both shall be equitably adjusted by Change Order for additional costs or time needed resulting from any change in Law, including increased taxes, enacted after the date of this Agreement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.4Design-Builder shall maintain the Schedule of Work. This schedule shall indicate the dates for the start and completion of the various stages of the construction, including the dates when information and approvals are required from Owner. It shall be revised as required by the conditions of the Work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.5Design-Builder shall obtain and Owner shall pay, in addition to the Contract Price, for the building permits necessary for the construction of the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.6Design-Builder shall keep such full and detailed accounts as may be necessary for proper financial management under this Agreement. Owner shall be afforded access to all Design-Builder's records, books, correspondence, instructions, drawings, receipts, vouchers, memoranda, and similar data relating to Change Order work performed on the basis of actual cost. Design-Builder shall preserve all such records for a period of three years after the final payment or longer where required by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.7Design-Builder shall provide periodic written reports to Owner on the progress of the Work in such detail as is required by Owner and as agreed to by The Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.8Design-Builder shall regularly remove debris and waste materials at the Worksite resulting from the Work. Before discontinuing Work in an area, Design-Builder shall clean the area and remove all rubbish and its construction equipment, tools, machinery, waste, and surplus materials. Design Builder shall minimize and confine dust and debris resulting from construction activities. At the completion of the Work, Design-Builder shall remove from the Worksite all construction equipment, tools, surplus materials, waste materials, and debris.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.9Design-Builder shall prepare and submit to Owner: updated electronic data

that generally document how the various elements of the Work including changes were actually constructed or installed, or as defined by the Parties by attachment to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3CONSTRUCTION SCHEDULE Design-Builder shall prepare and submit a Schedule of Work for Owner's acceptance and written approval. This schedule shall indicate the commencement and completion dates of the various stages of the Work, including the dates when information and approvals are required from Owner. The Schedule shall be revised on a monthly basis or as mutually agreed by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4SAFETY OF PERSONS AND PROPERTY

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4.1SAFETY PRECAUTIONS AND PROGRAMS Design-Builder shall have overall responsibility for safety precautions and programs in the performance of the Work. However, such obligation does not relieve Subcontractors of their responsibility for the safety of persons or property in the performance of their work, nor for compliance with the provisions of Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4.2Design-Builder shall prevent against injury, loss, or damage to persons or property by taking reasonable steps to protect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4.2.1its employees and other persons at the Worksite;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4.2.2materials, supplies, and equipment stored at the Worksite for use in performance of the Work; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4.2.3the Project and all property located at the Worksite and adjacent to work areas, whether or not said property or structures are part of the Project or involved in the Work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4.3DESIGN-BUILDER'S SAFETY REPRESENTATIVE Design-Builder shall designate an individual at the Worksite in the employ of Design-Builder who shall act as Design-Builder's designated safety representative with a duty to prevent accidents. Unless otherwise identified by Design-Builder in writing to Owner, the designated safety representative shall be Design-Builder's project superintendent. Design-Builder will report immediately in writing all accidents and injuries occurring at the Worksite to Owner. When Design-Builder is required to file an accident report with a public authority, Design-Builder shall furnish a copy of the report to Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4.4Design-Builder shall provide Owner with copies of all notices required of Design-Builder by Law. Design-Builder's safety program shall comply with the requirements of governmental and quasi governmental authorities having jurisdiction over the Work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4.5Damage or loss not insured under property insurance which may arise from the performance of the Work, to the extent of the negligence attributed to such acts or omissions of Design-Builder, or anyone for whose acts Design-Builder may be liable, shall be promptly remedied by Design-Builder. Damage or loss attributable to the acts or omissions of Owner or Others and not to Design-Builder shall be promptly remedied by Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4.6If Owner deems any part of the Work or Worksite unsafe, Owner, without assuming responsibility for Design-Builder's safety program, may require Design-Builder to stop performance of the Work or take corrective measures satisfactory to Owner, or both. If Design-Builder does not adopt corrective measures, Owner may perform them and reduce the amount of the Contract Price by the costs of the corrective measures. Design-Builder agrees to make no claim for damages, for an adjustment in the Contract Price or the Date of Substantial Completion or the Date of Final Completion based on Design-Builder's compliance with Owner's reasonable request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5EMERGENCIES In any emergency affecting the safety of persons or property, Design-Builder shall act in a reasonable manner to prevent threatened damage, injury, or loss. Any change in the Contract Price, the Date of Substantial Completion, or the Date of Final Completion, on account of emergency work shall be determined as a Change Order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6HAZARDOUS MATERIAL

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6.1Design-Builder shall not be obligated to commence or continue Work until all Hazardous Material discovered at the Worksite has been removed, rendered, or determined to be harmless by Owner as certified by an independent testing laboratory and approved by the appropriate government agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6.2If after commencing the Work, Hazardous Material is discovered at the Project, Design-Builder shall be entitled to immediately stop Work in the affected area. Design-Builder shall report the condition to Owner and, if required, the government agency with jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6.3Design-Builder shall not resume nor be required to continue any Work affected by any Hazardous Material without written mutual agreement between the Parties after the Hazardous Material has been removed or rendered harmless and only after approval, if necessary, of the governmental agency with jurisdiction Owner shall be responsible for retaining an independent testing laboratory to determine the nature of the material encountered and whether it is a Hazardous Material requiring corrective measures or remedial action. Such measures shall be the sole responsibility of Owner, and shall be performed in a manner minimizing any adverse effect upon the Work.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6.4If Design-Builder incurs additional costs or is delayed due to the presence or remediation of Hazardous Material, Design-Builder shall be entitled to an equitable adjustment in the Contract Price or the date of Substantial Completion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6.5To the extent not caused by the negligent or intentionally wrongful acts or omissions of Design Builder, its Subcontractors and Subsubcontractors, and the agents, officers, directors, and employees of each of them, Owner shall indemnify and hold harmless Design-Builder, its Subcontractors and Subsubcontractors, and the agents, officers, directors, and employees of each of them, from and against all claims, damages, losses, costs, and expenses, including but not limited to reasonable attorneys' fees, costs, and expenses incurred in connection with any dispute resolution process, to the extent permitted pursuant to §6.5, arising out of or relating to the performance of the Work in any area affected by Hazardous Material.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7Safety Data Sheets (SOS) as required by law and pertaining to materials or substances used or consumed in the performance of the Work, whether obtained by Design-Builder, Subcontractors, Owner or Others, shall be maintained at the Project by Design-Builder and made available to Owner and Subcontractors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7.1During Design-Builder's performance of the Work, Design-Builder shall be responsible for the proper handling, application, storage, removal, and disposal of all materials brought to the Worksite by Design-Builder. Upon the issuance of the Certificate of Substantial Completion, Owner shall be responsible for materials and substances brought to the Worksite by Design-Builder if such materials or substances are required by the Contract Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7.2§3.6 shall survive the completion of the Work under this Agreement or any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8WARRANTY

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.1Design-Builder warrants that all materials and equipment furnished under this Agreement will be new unless otherwise specified, of good quality, in conformance with the Contract Documents, and free from defective workmanship and materials. Warranties shall commence on the date of Substantial Completion of the Work or of a designated portion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.2To the extent products, equipment, systems, or materials incorporated in the Work are specified and purchased by Owner, they shall be covered exclusively by the warranty of the manufacturer. There are no warranties which extend beyond the description on the face thereof. To the extent products, equipment, systems, or materials incorporated in the Work are specified by Owner but purchased by Design-Builder and are inconsistent with selection criteria that otherwise would have been followed by Design-Builder, Design-Builder shall assist Owner in pursuing warranty claims. ALL OTHER WARRANTIES EXPRESSED OR IMPLIED INCLUDING THE WARRANTY OF MERCHANTABILITY AND THE WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE ARE EXPRESSLY DISCLAIMED.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.3Design-Builder shall secure required certificates of inspection, testing, or approval and deliver them to Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.4Design-Builder shall collect all written warranties and equipment manuals and deliver them to Owner in a format directed by Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.5With the assistance of Owner's maintenance personnel, Design-Builder shall direct the checkout of utilities and start-up operations, and adjusting and balancing of systems and equipment for readiness.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9CORRECTION OF WORK WITHIN ONE YEAR

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9.1Before Substantial Completion and within one year after the date of Substantial Completion of the Work or for such longer periods of time as may be set forth with respect to specific warranties required by the Contract Documents, if any Defective Work is found, Owner shall promptly notify Design-Builder in writing. Unless Owner provides written acceptance of the condition, Design-Builder shall promptly correct the Defective Work at its own cost and time and bear the expense of additional services required for correction of any Defective Work for which it is responsible. If within the one year correction period Owner discovers and does not promptly notify Design-Builder or give Design Builder an opportunity to test or correct Defective Work as reasonably requested by Design-Builder, Owner waives Design-Builder's obligation to correct that Defective Work as well as Owner's right to claim a breach of the warranty with respect to that Defective Work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9.2With respect to any portion of Work first performed after Substantial Completion, the one-year correction period shall commence when that portion of Work is complete. Correction periods shall not be extended by corrective work performed by Design-Builder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9.3If Design-Builder fails to correct Defective Work within a reasonable time after receipt of written notice from Owner before final payment, Owner may correct it in accordance with Owner's right to carry out the Work. In such case, an appropriate Change Order shall be issued deducting the cost of correcting such deficiencies from payments then or thereafter due Design-Builder. If payments then or thereafter due Design-Builder are not sufficient to cover such amounts, Design-Builder shall pay the difference to Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9.4Design-Builder's obligations and liability, if any, with respect to any Defective Work discovered after the one-year correction period shall be determined by the Law. If, after the one-year correction period but before the applicable limitation period has expired, Owner discovers any Work which Owner considers Defective Work, Owner shall, unless the Defective Work requires emergency correction, promptly notify Design-Builder and allow Design-Builder an opportunity to correct the Work if Design-Builder elects to do so. If Design-Builder elects to correct the Work, it shall provide written notice of such intent within fourteen (14) Days of its receipt of notice from Owner and shall complete the correction of Work within a mutually agreed timeframe. If Design-Builder does not elect to correct the Work, Owner may have the Work corrected by itself or Others, and, if Owner intends to seek recovery of those costs from Design-Builder, Owner shall promptly provide Design-Builder with an accounting of the correction costs it incurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9.5If Design-Builder's correction or removal of Defective Work causes damage to or destroys other completed or partially completed Work or existing buildings, Design-Builder shall be responsible for the cost of correcting the destroyed or damaged property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9.6The one-year period for correction of Defective Work does not constitute a limitation period with respect to the enforcement of Design-Builder's other obligations under the Contract Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9.7Before final payment, at Owner's option and with Design-Builder's agreement, Owner may elect to accept Defective Work rather than require its removal and correction. In such case the Contract Price shall be equitably adjusted for any diminution in the value of the Project caused by such Defective Work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10CONFIDENTIALITY Design-Builder shall treat as confidential and not disclose to third-persons, except Subcontractors, Subsubcontractors, and Design Professional as is necessary for the performance of the Work, or use for its own benefit any of Owner's developments, confidential information, know-how, discoveries, production methods, and the like that may be disclosed to Design-Builder or which Design Builder may acquire in connection with the Work. Owner shall treat as confidential information all of Design-Builder's estimating systems and historical and parameter cost data that may be disclosed to

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Owner in connection with the performance of this Agreement. The Parties shall each specify those items to be treated as confidential and shall mark them as "Confidential." Confidentiality obligations do not supersede compulsion by Law, a governmental agency or authority, an order of a court of competent jurisdiction, or a validly issued subpoena. In such event, a Party shall promptly notify the other Party to permit that Party's legal objection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11ADDITIONAL SERVICES Design-Builder shall provide or procure the following Additional services upon the request of Owner. A written agreement between The Parties shall define the extent of such Additional services. Such Additional services shall be considered a Change in the Work, unless they are specifically included in §3.1 or §3.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11.1Assisting in the developing Owner's Program, establishing the Project budget, investigating sources of financing, general business planning, and other information and documentation as may be required to establish the feasibility of the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11.2Consultations, negotiations, and documentation supporting the procurement of Project financing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11.3Surveys, site evaluations, legal descriptions, and aerial photographs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11.4Appraisals of existing equipment, existing properties, new equipment, and developed properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11.5Soils, subsurface, and environmental studies, reports, and investigations required for submission to governmental authorities or others having jurisdiction over the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11.6Consultations and representations before governmental authorities or others having jurisdiction over the Project other than normal assistance in securing building permits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11.7Investigation or making measured drawings of existing conditions or the verification of Owner provided drawings and information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11.8Artistic renderings, models, and mockups of the Project or any part of the Project or the Work;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11.9Inventories of existing furniture, fixtures, furnishings, and equipment which might be under consideration for incorporation into the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11.10Interior design and related services including procurement and placement of furniture, furnishings, artwork, and decorations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11.11Making revisions to design documents after they have been approved by Owner when revisions are due to causes beyond the control of Design-Builder. Causes beyond the control of Design-Builder do not include acts or omissions on the part of Subcontractors, Subsubcontractors, or Design Professional;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11.12Design, coordination, management, expediting, and other services supporting the procurement of materials to be obtained, or work to be performed, by Owner, including but not limited to telephone systems, computer wiring networks, sound systems, alarms, security systems, and other specialty systems which are not a part of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11.13Estimates, proposals. appraisals, consultations, negotiations, and services in connection with the repair or replacement of an insured loss, provided such repair or replacement did not result from the negligence of Design-Builder;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.4The premium portion of overtime work ordered by Owner including productivity impact costs, other than that required by Design-Builder to maintain the Schedule of Work;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.5Out-of-town travel by Design Professional in connection with the Work, except between Design Professional's office, Design-Builder's office, Owner's office, and the Project site;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.6Obtaining service contractors and training maintenance personnel; assisting and consulting in the use of systems and equipment after the initial startup;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.7Services for tenant or rental spaces not required by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.8services requested by Owner or required by the Work which are not specified in the Contract Documents and which are not normally part of generally accepted design and construction practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.9Except when Design Professional is a party to the proceeding, serving or preparing to serve as an expert witness in connection with any proceeding, legal or otherwise, regarding the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.10document reproduction exceeding the limits provided for in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.11providing services relating to Hazardous Material discovered at the Worksite;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.12Intentionally Omitted

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.13performing formal commissioning services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.14other services as agreed to by the Parties and identified in an attached exhibit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12DESIGN-BUILDER'S REPRESENTATIVE Design-Builder shall designate a person who shall be Design-Builder's authorized representative. Design-Builder's Representatives are Larry Fuentes and Ed Brillante.

**ARTICLE 4 OWNER'S RESPONSIBILITIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1INFORMATION AND SERVICES PROVIDED BY OWNER Owner's responsibilities under this article shall be provided with reasonable detail and in a timely manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2FINANCIAL INFORMATION Before commencing the Work and thereafter at the written request of Design-Builder, Owner shall provide Design-Builder evidence of Project financing. Evidence of such financing shall be a condition precedent to Design-Builder's commencing or continuing the Work. Design Builder shall be notified before any material change in Project financing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3WORKSITE INFORMATION To the extent Owner has obtained, or is required elsewhere in the Contract Documents to obtain, the following Worksite information, Owner shall provide at Owner's expense and with reasonable promptness:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.1information describing the physical characteristics of the site, including surveys, site evaluations, legal descriptions, data, or drawings depicting existing conditions, subsurface conditions, and environmental studies, reports, and investigations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.2tests, inspections, and other reports dealing with environmental matters, Hazardous Material, and other existing conditions, including structural, mechanical, and chemical tests, required by the Contract Documents or by Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.3the limits of Pollution Liability Insurance covering the Worksite held by Owner; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.4any other information or services requested in writing by Design-Builder which are required for Design-Builder's performance of the Work and under Owner's control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4MECHANICS AND CONSTRUCTION LIEN INFORMATION Within seven (7) Days after receiving Design-Builder's written request, Owner shall provide Design-Builder with the information necessary to give notice of or enforce mechanics lien rights and, where applicable, stop notices. This information shall include Owner's interest in the real property on which the Project is located and the record legal title.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5RESPONSIBILITIES DURING DESIGN

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5.1Owner shall review and approve further development of the drawings and specifications as set forth in ARTICLE 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6RESPONSIBILITIES DURING CONSTRUCTION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.1Owner shall review the Construction Schedule, timely approve milestone dates set forth, and timely respond to its obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.2If Owner becomes aware of any error, omission, or failure to meet the requirements of the Contract Documents or any fault or defect in the Work, Owner shall give prompt written notice to Design-Builder. The failure of Owner to give such notice shall not relieve Design-Builder of its obligations to fulfill the requirements of the Contract Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.3Owner shall have no contractual obligations to Subcontractors, suppliers, or Design Professional.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.4Owner shall provide insurance for the Project as provided in ARTICLE 10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7TAX EXEMPTION If in accordance with Owner's direction Design-Builder claims an exemption for taxes, Owner shall indemnify and hold Design-Builder harmless from all liability, penalty, interest, fine, tax assessment, attorneys' fees, or other expense or cost incurred by Design-Builder as a result of any action taken by Design-Builder in accordance with Owner's direction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8ELECTRONIC DOCUMENTS If Owner requires that The Parties exchange documents and data in electronic or digital form, before any such exchange, The Parties shall agree on a written protocol, which, at a minimum, shall specify: (a) the definition of documents and data to be accepted in electronic or digital form or to be transmitted electronically or digitally; (b) management and coordination responsibilities; (c) necessary equipment, software, and services; (d) acceptable formats, transmission methods, and verification procedures; (e) methods for maintaining version control; (f) privacy and security requirements; and (g) storage and retrieval requirements. The Parties shall each bear their own costs for the requirements identified in the protocol. In the absence of a written protocol, use of documents and data in electronic or digital form shall be at the sole risk of the recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9Owner's Representatives are Michael Gestwick and Ed Brillante. Owner's representative shall: (a) be fully acquainted with the Project; (b) agree to furnish the information and services required of Owner in a timely manner; and (c) have the authority to bind Owner in all matters requiring Owner's approval, authorization or written notice. If Owner changes its representative or the representative's authority as listed above, Owner shall notify Design-Builder in writing in advance.

**ARTICLE 5 SUBCONTRACTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.RETAINING SUBCONTRACTORS Design-Builder shall not retain any Subcontractor or Supplier to whom Owner has a reasonable and timely objection, provided that Owner agrees to increase the Contract Price for any additional costs incurred by Design-Builder as a result of such objection. Owner may

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propose subcontractors to be considered by Design-Builder. Design-Builder shall not be required to retain any subcontractor to whom Design-Builder has a reasonable objection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.MANAGEMENT OF SUBCONTRACTORS Design-Builder shall be responsible for the management of Subcontractors in the performance of their work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.CONTINGENT ASSIGNMENT OF SUBCONTRACT AGREEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.1.If this Agreement is terminated, each subcontract agreement shall be assigned by Design Builder to Owner, subject to the prior rights of any surety, provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.1.1.this Agreement is terminated by Owner pursuant to §11.2 or §11.3; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.1.2.Owner accepts such assignment, after termination by notifying the Subcontractor and Design-Builder in writing, and assumes all rights and obligations of Design-Builder pursuant to each subcontract or supply agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.2.If Owner accepts such an assignment, and the Work has been suspended for more than thirty (30) consecutive Days, following termination, if appropriate, Subcontractor's or Supplier's compensation shall be equitably adjusted as a result of the suspension.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.BINDING OF SUBCONTRACTORS AND SUPPLIERS Design-Builder agrees to bind every Subcontractor and Supplier (and require every Subcontractor to so bind its Subsubcontractors and significant Suppliers) to all the provisions of this Agreement and the Contract Documents' applicable provisions to that portion of the Work.

**ARTICLE 6 CONTRACT TIME**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.DATE OF COMMENCEMENT The Date of Commencement is the Agreement date in ARTICLE 1 unless otherwise set forth below January 10, 2022. The Work shall proceed in general accordance with the Project Schedule which may be amended in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.SUBSTANTIAL COMPLETION/FINAL COMPLETION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.1.Substantial Completion of the Work shall be achieved in Four Hundred Seventy-Four (474) Days from the Date of Commencement. Unless otherwise specified, the Work shall be finally complete within Sixty (60) Days after the date of Substantial Completion, subject to adjustments as provided for in the Contract Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.2.Time is of the essence with regards to the obligations of the Contract Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.3.The Date of Final Completion of the Work is Thirty Days (30) Days after the Date of Substantial Completion, subject to adjustments as provided for in the Contract Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.4.Unless otherwise instructed by an Interim Directive, Design-Builder shall not knowingly commence the Work before the effective date of insurance required to be provided by Design-Builder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.DELAYS AND EXTENSIONS OF TIME

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.1.If Design-Builder is delayed at any time in the commencement or progress of the Work by any cause beyond the control of Design-Builder, Design-Builder shall be entitled to an equitable extension of the Date of Substantial Completion or the Date of Final Completion. Examples of causes beyond the control of Design-Builder include, but are not limited to, the following: (a) acts or omissions of Owner or Others; (b) changes in the Work or the sequencing of the Work ordered by Owner, or arising from decisions of Owner that impact the time of performance of the Work; (c) encountering

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Hazardous Materials, or concealed or unknown conditions; (d) delay authorized by Owner pending dispute resolution or suspension by Owner under §12.1; (e) transportation delays not reasonably foreseeable; (f) labor disputes not involving Design-Builder; (g) general labor disputes impacting the Project but not specifically related to the Worksite; (h) fire; (i) Terrorism; U) epidemics; (k) adverse governmental actions, (I) unavoidable accidents or circumstances; (m) adverse weather conditions not reasonably anticipated. Design-Builder shall process any requests for equitable extensions of the Date of Substantial Completion or the Date of Final Completion in accordance with the provisions of ARTICLE 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.2.In addition, if Design-Builder incurs additional costs as a result of a delay that is caused by acts or omissions of Owner or Others, changes in the Work or the sequencing of the Work ordered by Owner, or arising from decisions of Owner that impact the time of performance of the Work, encountering Hazardous Materials unanticipated by Design-Builder or concealed or unknown conditions, delay authorized by Owner pending dispute resolution, and suspension by Owner under

§ARTICLE 11, Design-Builder shall be entitled to an equitable adjustment in the Contract Price subject to §6.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.3.In the event delays to the project are encountered for any reason, the Parties agree to undertake reasonable steps to mitigate the effect of such delays.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.LIQUIDATED DAMAGES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.1.SUBSTANTIAL COMPLETION The Parties agree that this Agreement shall not provide for the imposition of liquidated damages based on the Date of Substantial Completion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.2.FINAL COMPLETION Owner and Design-Builder agree that this Agreement shall not provide for the imposition of liquidated damages based on the Date of Final Completion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.3.OTHER LIQUIDATED DAMAGES Owner and Design-Builder that this Agreement shall not provide for the imposition of liquidated damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5.LIMITED MUTUAL WAIVER OF CONSEQUENTIAL DAMAGES Except for damages mutually agreed upon by the Parties as liquidated damages in §6.4 and excluding losses covered by insurance required by the Contract Documents, Owner and Design-Builder agree to waive all claims against each other for any consequential damages that may arise out of or relate to this Agreement, except for those specific items of damages excluded from this waiver as mutually agreed upon by the Parties and identified below. Owner agrees to waive damages including but not limited to Owner's loss of use of the Project, any rental expenses incurred, loss of income, profit, or financing related to the Project, as well as the loss of business, loss of financing, principal office overhead and expenses, loss of profits not related to this Project, loss of reputation, or insolvency. Design-Builder agrees to waive damages including but not limited to loss of business, loss of financing, loss of profits not related to this Project, loss of bonding capacity, loss of reputation, or insolvency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5.1.The following items of damages are excluded from this mutual waiver: none

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5.2.The provisions of this section shall also apply to the termination of this Agreement and shall survive such termination. Owner and Design-Builder shall require similar waivers in contracts with Subcontractors and Others retained for the Project.

**ARTICLE 7 CONTRACT PRICE**

The Contract Price is Fifty-Nine Million Three Hundred Thousand dollars ($59,300,000.00) subject to adjustment as provided in ARTICLE 8.

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**ARTICLE 8 CHANGES IN THE WORK**

Changes in the Work which are within the general scope of this Agreement may be accomplished without invalidating this Agreement by Change Order, Interim Directive, or a minor change in the Work, subject to the limitations stated in the Contract Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.CHANGE ORDERS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1.Design-Builder may request or Owner, without invalidating this Agreement, may order changes in the Work within the general scope of the Contract Documents consisting of adjustment to the Contract Price or the Date of Substantial Completion or the Date of Final Completion. All such changes in the Work shall be authorized by applicable Change Order, and processed in accordance with this article. Each adjustment in the Contract Price resulting from a Change Order shall clearly separate the amount attributable to Design services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.2.The Parties shall negotiate an appropriate adjustment to Contract Price or the Date of Substantial Completion or the Date of Final Completion in good faith and conclude negotiations as expeditiously as possible. Acceptance of the Change Order and any adjustment in the Contract Price or the Date of Substantial Completion or the Date of Final Completion shall not be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.3.NO OBLIGATION TO PERFORM Design-Builder shall not be obligated to perform changes in the Work until a Change Order has been executed or a written Interim Directive has been issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.INTERIM DIRECTIVE

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.1.Owner may issue an Interim Directive directing a change in the Work before agreeing on an adjustment, if any, in the Contract Price or the Date of Substantial Completion or the Date of Final Completion, and if appropriate, the compensation for Design services or directing Design-Builder to perform Work that Owner believes is not a change. If the Parties disagree that the Interim Directed work is within the scope of the Work, Design-Builder shall perform the disputed Work and furnish Owner with an estimate of the costs to perform the disputed work in accordance with Owner's interpretations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.2.The Parties shall negotiate expeditiously and in good faith for appropriate adjustments, as applicable, to the Contract Price or the Date of Substantial Completion or the Date of Final Completion, and if appropriate the compensation for Design services, arising out of Interim Directive. As the changed work is completed, the Design Builder shall submit its costs for such work with its Application for Payment beginning with the next Application for Payment within thirty (30) Days of the issuance of the Interim Directive. Owner's payment does not prejudice its right to be reimbursed should it be determined that the disputed work was within the scope of the Work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.3.If the Parties agree upon the adjustments in the Contract Price or the Date of Substantial Completion or the Date of Final Completion, and if appropriate, the compensation for Design services, for a change in the Work directed by an Interim Directive, such agreement shall be the subject of an appropriate Change Order. The Change Order shall include all outstanding Interim Directives issued since the last Change Order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3.MINOR CHANGES IN THE WORK

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3.1.Design-Builder may make minor changes in the design and construction of the Project consistent with the intent of the Contract Documents which do not involve an adjustment in the Contract Price or the Date of Substantial Completion or the Date of Final Completion; and do not materially and adversely affect the design of the Project, the quality of any of the materials or

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equipment specified in the Contract Documents, the performance of any materials, equipment, or systems specified in the Contract Documents, or the quality of workmanship required by the Contract Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3.2.Design-Builder shall promptly inform Owner in writing of any such changes and shall record such changes on the Design-Build Documents maintained by Design-Builder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.CONCEALED OR UNKNOWN SITE CONDITIONS If a condition encountered at the Worksite are (a) subsurface or other physical conditions materially different from those indicated in the Contract Documents, or (b) unusual and unknown physical conditions materially different from conditions ordinarily encountered and generally recognized as inherent in Work provided for in the Contract Documents, Design-Builder shall stop affected Work after the concealed or unknown condition is first observed and give prompt written notice of the condition to Owner. Owner shall investigate and then issue an Interim Directive specifying the extent to which Owner agrees that a concealed or unknown condition exists and directing how Design-Builder is to proceed. Design-Builder shall not be required to perform any Work relating to the unknown condition without the written mutual agreement of the Parties. Any change in the Contract Price or Contract Time as a result of the condition, including any dispute about its existence or nature, shall be determined as provided in this ARTICLE 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5.DETERMINATION OF COST

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5.1.An increase or decrease in the Contract Price resulting from a change in the Work shall be determined by one or more of the following methods:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5.1.1.unit prices set forth in this Agreement or as subsequently agreed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5.1.2.a mutually accepted, itemized lump sum; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5.1.3.COST OF THE WORK Cost of the Work as defined by this §8.5.1.3 plus 15% for Overhead and Profit. "Cost of the Work" shall include the following costs reasonably incurred to perform a change in the Work:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5.1.3.1.Labor wages directly employed by Design-Builder performing the Work;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5.1.3.2.Salaries of Design-Builder's employees when stationed at the field office to the extent necessary to complete the applicable Work, employees engaged on the road expediting the production or transportation of material and equipment, and supervisory employees from the principal or branch office as mutually agreed by the Parties in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5.1.3.3.Cost of applicable employee benefits and taxes, including but not limited to, workers' compensation, unemployment compensation, social security, health, welfare, retirement and other fringe benefits as required by law, labor agreements, or paid under Design-Builder's standard personnel policy, insofar as such costs are paid to employees of Design-Builder who are included in the Cost of the Work in §8.5.1.3.1 and

§8.5.1.3.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5.1.3.4.Reasonable transportation, travel, and hotel expenses of Design-Builder's personnel incurred in connection with the Work;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5.1.3.5.Cost of all materials, supplies, and equipment incorporated in the Work, including costs of inspection and testing if not provided by Owner, transportation, storage, and handling;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1.1.1.Payments made by Design-Builder to Subcontractors for performed Work;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1.1.2.Fees and expenses for design services procured or furnished by Design Builder

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1.1.3.Cost, including transportation and maintenance of all materials, supplies, equipment, temporary facilities, and hand tools not owned by the workers that are used or consumed in the performance of the Work, less salvage value or residual value; and cost less salvage value of such items used, but not consumed that remain the property of Design-Builder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1.1.4.Rental charges of all necessary machinery and equipment, exclusive of hand tools owned by workers, used at the Worksite, whether rented from Design-Builder or others, including installation, repair and replacement, dismantling, removal, maintenance, transportation, and delivery costs. Rental from unrelated third parties shall be reimbursed at actual cost. Rentals from Design-Builder or its affiliates, subsidiaries, or related parties shall be reimbursed at the prevailing rates in the locality of the Worksite up to One Hundred percent (100%) of the value of the piece of equipment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1.1.5.Cost of the premiums for all insurance and surety bonds which Design Builder is required to procure or deems necessary, and approved by Owner including any additional premium incurred as a result of any increase in the cost of the Work;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1.1.6.Sales, use, gross receipts or other taxes, tariffs, or duties related to the Work for which Design-Builder is liable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1.1.7.Permits, fees, licenses, tests, and royalties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1.1.8.Losses, expenses or damages to the extent not compensated by insurance or otherwise, and the cost of corrective work, provided that such did not arise from Design-Builder's negligence

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1.1.9.Water, power, and fuel costs necessary for the changed Work;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1.1.10.Cost of removal of all nonhazardous substances, debris, and waste materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1.1.11.Costs directly incurred to perform a change in the Work which are reasonably inferable from the Contract Documents for the changed Work

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1.1.12.DISCOUNTS All discounts for prompt payment shall accrue to Owner to the extent such payments are made directly by Owner. To the extent payments are made with funds of Design-Builder, all cash discounts shall accrue to Design-Builder. All trade discounts, rebates and refunds, and all returns from sale of surplus materials and equipment, shall be credited to the Cost of the Work;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1.1.13.COST REPORTING Design-Builder shall maintain complete and current records that comply with generally accepted accounting principles and calculate the Cost of Work. Owner shall be afforded access to Design-Builder's records, books, correspondence, instructions, drawings, receipts, vouchers, memoranda and similar data relating to requested payment for Cost of the Work. Design-Builder shall preserve all such records for a period of three years after the final payment or longer where required by Law;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1.1.14.COST AND SCHEDULE ESTIMATES Design-Builder shall use reasonable skill and judgment in the preparation of a cost estimate or schedule for a change to the Work, but does not warrant or guarantee their accuracy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1.1.15.Cost of the Work pursuant to §8.5.1.3 is determined net of savings from the change. Design-Builder's Overhead and profit shall be added to any net increase in Cost of the Work. No Overhead and profit shall be applied to any net decrease in the Cost of the Work that is less than ten (10) percent of the Contract Price. Overhead and profit shall be applied to any net decrease ten (10) percent or more. Design-Builder shall maintain a documented, itemized accounting evidencing expenses and savings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.4.If unit prices are indicated in the Contract Documents or are subsequently agreed to by the Parties, but the character or quantity of such unit items as originally contemplated is so different in a proposed Change Order that the original unit prices will cause substantial inequity to Owner or Design-Builder, such unit prices shall be equitably adjusted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.5.If Owner and Design-Builder disagree as to whether work required by Owner is within the scope of the Work, Design-Builder shall furnish Owner with an estimate of the costs to perform the disputed work in accordance with Owner's interpretations. If Owner issues a written order for Design Builder to proceed, Design-Builder shall perform the disputed work and Owner shall pay Design Builder fifty percent (50%) of its estimated cost to perform the work. In such event, both Parties reserve their rights as to whether the work was within the scope of the Work. Owner's payment does not prejudice its right to be reimbursed should it be determined that the disputed work was within the scope of Work. Design-Builder's receipt of payment for the disputed work does not prejudice its right to receive full payment for the disputed work should it be determined that the disputed work is not within the scope of the Work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6.CHANGES NOTICE For any claim for an increase in the Contract Price or an extension in the Date of Substantial Completion or the Date of Final Completion, Design-Builder shall give Owner written notice of the claim within twenty-one (21) Days after the occurrence giving rise to the claim or within twenty-one

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21) Days after Design-Builder first recognizes the condition giving rise to the claim, whichever is later. Except in an emergency, notice shall be given before proceeding with the Work. Claims for design and estimating costs incurred in connection with possible changes requested by Owner, but which do not proceed, shall be made within twenty-one (21) Days after the decision is made not to proceed. Thereafter, Design-Builder shall submit written documentation of its claim, including appropriate supporting documentation, within twenty-one (21) Days after giving notice, unless the Parties mutually agree upon a longer period of time. Owner shall respond in writing denying or approving Design-Builder's claim no later than fourteen (14) Days after receipt of Design-Builder's documentation of claim. Owner's failure to so respond shall be deemed a denial of Design-Builder's claim. Any change in Contract Price or the Date of Substantial Completion or the Date of Final Completion resulting from such claim shall be authorized by Change Order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7.INCIDENTAL CHANGES Owner may direct Design-Builder to perform incidental changes in the Work upon concurrence with Design-Builder that such changes do not involve adjustments in the Cost of the Work or Contract Time. Incidental changes shall be consistent with the scope and intent of the Contract Documents. Owner shall initiate an incidental change in the Work by issuing a written order to Design Builder. Such written notice shall be carried out promptly and is binding on the Parties.

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**ARTICLE 9 PAYMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.PROGRESS PAYMENT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.1.Before submitting the first application for payment, Design-Builder shall provide a Schedule of Values satisfactory to Owner, consisting of a breakdown of the Contract Price, with a separate line item for Design services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.2.On or before the Last Day of each month after the Work has commenced, Design-Builder shall submit to Owner an application for payment in accordance with the Schedule of Values based upon the Work completed and materials suitably stored on the Worksite or at other locations approved by Owner. Approval of payment applications for such stored materials shall be conditioned upon submission by Design-Builder of bills of sale and applicable insurance or such other procedures satisfactory to Owner to establish Owner's title to such materials, or otherwise to protect Owner's interest including transportation to the site.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.3.Within seven (7) Days after receipt of each monthly application for payment, Owner shall give written notice to Design-Builder of Owner's acceptance or rejection, in whole or in part, of such application for payment. Within twenty-one (21) Days after accepting such Application, Owner shall pay directly to Design-Builder the appropriate amount for which application for payment is made, less amounts previously paid by Owner. If such application is rejected in whole or in part, Owner shall indicate the reasons for its rejection. If Owner and Design-Builder cannot agree on a revised amount, then, within twenty-one (21) Days after its initial rejection in part of such application, Owner shall pay directly to Design-Builder the appropriate amount for those items not rejected by Owner for which application for payment is made, less amounts previously paid by Owner. Those items rejected by Owner shall be due and payable when the reasons for the rejection have been removed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.4.If Owner fails to pay Design-Builder at the time payment of any amount becomes due, then Design-Builder may, at any time thereafter, upon serving written notice that the Work will be stopped within seven (7) Days after receipt of the notice by Owner, and after such seven (7) Day period, stop the Work until payment of the amount owing has been received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.5.Payments due but unpaid pursuant to §9.1.3, less any amount retained pursuant to §9.2 or

§9.3, shall not bear interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.6.Design-Builder warrants and guarantees that title to all Work, materials, and equipment covered by an application for payment, whether incorporated in the Project or not, will pass to Owner upon receipt of such payment by Design-Builder free and clear of all liens, claims, security interests, or encumbrances, hereinafter referred to as "liens."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.7.Owner's progress payment, occupancy, or use of the Project, whether in whole or in part, shall not be deemed an acceptance of any Work not conforming to the requirements of the Contract Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.8.Upon Substantial Completion of the Work, Owner shall pay Design-Builder the unpaid balance of the Contract Price, less a sum equal to one hundred fifty percent (150%) of Design-Builder's estimated cost of completing any unfinished items as agreed to between The Parties as to extent and time for completion. Owner thereafter shall pay Design-Builder monthly the amount retained for unfinished items as each item is completed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.9.STORED MATERIALS AND EQUIPMENT Unless otherwise provided in the contract documents, applications for payment may include materials and equipment not yet incorporated into the Work but delivered to and suitably stored onsite or offsite, including applicable insurance, storage and costs incurred transporting the materials to an offsite storage facility. Approval of payment

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applications for stored materials and equipment stored offsite shall be conditioned on submission by Design-Builder of bills of sale and proof of required insurance, or such other procedures satisfactory to Owner to establish the proper valuation of the stored materials and equipment, Owner's title to such materials and equipment, and to otherwise protect Owner's interests therein, including transportation to the site.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.RETAINAGE From each progress payment made before the time of Substantial Completion, Owner may retain Ten percent (10%) of the amount otherwise due after deduction of any amounts as provided in

§9.3, provided such percentage doesn't exceed the Law. If Owner chooses to use this retainage provision:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.1.after the Work is fifty percent (50%) complete, Owner shall withhold no additional retainage and pay Design-Builder the full amount due on account of subsequent progress payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.2.Owner may, in its sole discretion, reduce the amount to be retained at any time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.3.Owner may release retainage on that portion of the Work a Subcontractor has completed, in whole or in part, and which work Owner has accepted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.4.in lieu of retainage, Design-Builder may furnish a retention bond or other security interest acceptable to Owner, to be held by Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3.ADJUSTMENT OF AN APPLICATION FOR PAYMENT Owner may adjust or reject an application for payment or nullify a previously approved application for payment, in whole or in part, as may reasonably be necessary to protect Owner from loss or damage based upon the following, to the extent that Design Builder is responsible under this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3.1.Design-Builder's repeated failure to perform the Work as required by the Contract Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3.2.except as accepted by the insurer providing Builders Risk or other property insurance covering the project, loss or damage arising out of or relating to this Agreement and caused by Design-Builder to Owner, or others to whom Owner may be liable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3.3.Design-Builder's failure to pay either Design Professional, Subcontractor or Supplier following receipt of payment from Owner for that portion of the Work or for supplies, provided that Owner is making payments to Constructor in accordance with the terms of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3.4.Defective Work not corrected in a timely fashion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3.5.reasonable evidence of delay in performance of the Work such that the Work will not be completed by the Date of Substantial Completion or the Date of Final Completion, and that the unpaid balance of the Contract Price is not sufficient to offset any direct damages that may be sustained by Owner as a result of the anticipated delay caused by Design-Builder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3.6.reasonable evidence demonstrating that the unpaid balance of the Contract Price is insufficient to fund the cost to complete the Work;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3.7.uninsured third-party claims involving the Contractor or reasonable evidence demonstrating that third-party claims are likely to be filed unless and until the Contractor furnishes Owner with adequate security in the form of a surety bond, letter of credit, or other collateral or commitment which are sufficient to discharge such claims if established; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3.8.uninsured third-party claims involving Design-Builder or reasonable evidence demonstrating that third-party claims are likely to be filed unless and until Design-Builder furnishes Owner with

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adequate security in the form of a surety bond, letter of credit, or other collateral or commitment sufficient to discharge such claims if established.

No later than seven (7) Days after receipt of an application for payment, Owner shall give written notice to Design-Builder, at the time of disapproving or nullifying all or part of an application for payment, stating its specific reasons for such disapproval or nullification, and the remedial actions to be taken by Design Builder in order to receive payment. When the above reasons for disapproving or nullifying an application for payment are removed, payment will be promptly made for the amount previously withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4.OWNER OCCUPANCY OR USE OF COMPLETED OR PARTIALLY COMPLETED WORK

Portions of the Work that are completed or partially completed may be used or occupied by Owner when

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the portion of the Work is designated in a Certificate of Substantial Completion, (b) appropriate insurer(s) or sureties consent to the occupancy or use, and (c) appropriate public authorities authorize the occupancy or use. Such partial occupancy or use shall constitute Substantial Completion of that portion of the Work. Design-Builder shall not unreasonably withhold consent to partial occupancy or use. Owner shall not unreasonably refuse to accept partial occupancy or use, provided such partial occupancy or use is of value to Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5.FINAL PAYMENT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5.1.Final payment, consisting of the unpaid balance of the Contract Price, shall be due and payable when the Work is fully completed. Before issuance of final payment, Owner may request satisfactory evidence that all payrolls, materials bills, and other indebtedness connected with the Work have been paid or otherwise satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5.2.In making final payment Owner waives all claims except for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5.2.1.outstanding liens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5.2.2.improper workmanship or defective materials appearing within one year after the date of Substantial Completion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5.2.3.Work not in conformance with the Contract Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5.2.4.terms of any special warranties required by the Contract Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5.3.In accepting final payment, Design-Builder waives all claims except those previously made in writing and which remain unsettled.

**ARTICLE 10 INDEMNITY, INSURANCE, AND BONDS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.INDEMNITY

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.1.To the fullest extent permitted by law, Design-Builder shall indemnify and hold harmless Owner, Owner's officers, directors, members, consultants, agents, and employees (the lndemnitees) from all claims for bodily injury and property damage, other than to the Work itself and other property required to be insured under §10.3, including reasonable attorneys' fees, costs, and expenses that may arise from the performance of the Work, but only to the extent caused by the negligent or intentionally wrongful acts or omissions of Design-Builder, Subcontractors, or anyone employed directly or indirectly by any of them or by anyone for whose acts any of them may be liable. Design Builder shall not be required to indemnify or hold harmless the lndemnitees for any negligent or intentionally wrongful acts or omissions of the lndemnitees. Design-Builder shall be entitled to

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reimbursement of any defense costs paid above Design-Builder's percentage of liability for the underlying claim to the extent provided for by the subsection below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.2.To the fullest extent permitted by law, Owner shall indemnify and hold harmless Design Builder, its officers, directors, or members, Subcontractors, or anyone employed directly or indirectly by any of them or anyone for whose acts any of them may be liable from all claims for bodily injury and property damage, other than property insured under §10.3, including reasonable attorneys' fees, costs, and expenses, that may arise from the performance of work by Others, but only to the extent caused by the negligent or intentionally wrongful acts or omissions of Others. Owner shall be entitled to reimbursement of any defense costs paid above Owner's percentage of liability for the underlying claim to the extent provided for by the subsection above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.3.NO LIMITATION ON LIABILITY In any and all claims against the lndemnitees by any employee of Design-Builder, anyone directly or indirectly employed by Design-Builder or anyone for whose acts Design-Builder may be liable, the indemnification obligation shall not be limited in any way by any limitation on the amount or type of damages, compensation, or benefits payable by or for Design-Builder under Workers' Compensation acts, disability benefit acts, or other employee benefit acts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.DESIGN-BUILDER'S LIABILITY INSURANCE

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.1.Before commencing the Work and as a condition for payment, Design-Builder shall procure and maintain in force Workers' Compensation Insurance, Employers' Liability Insurance, Business Automobile Liability Insurance, and Commercial General Liability Insurance (CGL). The CGL policy shall include coverage for liability arising from premises, operations, independent contractors, products-completed operations, personal injury and advertising injury, contractual liability, and broad form property damage. Design-Builder shall maintain completed operations liability insurance for one year after Substantial Completion, or as required by the Contract Documents, whichever is longer. Design-Builder's Employers' Liability, Business Automobile Liability, and CGL policies shall be written with at least the following limits of liability:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.1.1.Employers' Liability Insurance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)$1,000,000.00 bodily injury by accident per accident

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)$1,000,000.00 bodily injury by disease policy limit

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)$1,000,000.00 bodily injury by disease per employee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.1.2.Business Automobile Liability Insurance per accident $1,000,000.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.1.3.Commercial General Liability Insurance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Per occurrence $3,000,000.00

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)General aggregate $6,000,000.00

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Products/completed operations aggregate $6,000,000.00

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Personal and advertising injury limit $3,000,000.00

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.2.Employers' Liability, Business Automobile Liability, and Commercial General Liability coverage required under§10.2.1 may be arranged under a single policy for the full limits required or by a combination of underlying policies with the balance provided by Excess or Umbrella Liability policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.2.1.Umbrella / Excess Liability Insurance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Per Occurrence $10,000,000.00

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Per Aggregate $10,000,000.00

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.4.Design-Builder shall maintain in effect all insurance coverage required under §10.2.1 with insurance companies lawfully authorized to do business in the jurisdiction in which the Project is located. If Design-Builder fails to obtain or maintain any insurance coverage required under this Agreement, Owner may purchase such coverage and charge the expense to Design-Builder, or terminate this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.5.To the extent commercially available to Design-Builder and its current insurance company, insurance policies required under§10.2.1 shall contain a provision that the insurance company or its designee must give Owner written notice transmitted in paper or electronic format: (a) 30 Days before coverage is nonrenewed by the insurance company and (b) within 10 Business Days after cancelation of coverage by the insurance company. Before commencing the Work and upon renewal or replacement of the insurance policies, Design-Builder shall furnish Owner with certificates of insurance until one year after Substantial Completion or longer if required by the Contract Documents. In addition, if any insurance policy required under §10.2.1 is not to be immediately replaced without lapse in coverage when it expires, exhausts its limits, or is to be cancelled, Design Builder shall give Owner prompt written notice upon actual or constructive knowledge of such condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.PROPERTY INSURANCE

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.1.Unless otherwise directed in writing by Owner, before starting the Work, Design-Builder shall obtain and maintain a Builder's Risk Policy upon the entire Project for the full cost of replacement at the time of loss, including existing structures. This insurance shall also: (a) name Design-Builder, Subcontractors, Subsubcontractors, Suppliers, and Design Professional as insureds; (b) be written in such form as to cover all risks of physical loss except those specifically excluded by the policy; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) insure at least against and not exclude:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.1.1.the perils of fire, lightning, explosion, windstorm, hail, smoke, aircraft (except aircraft, including helicopter, operated by or on behalf of the Contractor) and vehicles, riot and civil commotion, theft, vandalism, malicious mischief, debris removal, flood, earthquake, earth movement, water damage, wind damage, testing if applicable, collapse however caused;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.1.2.damage resulting from defective design, workmanship, or material;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.1.3.coverage extension for damage to existing buildings, plant, or other structures at the Worksite, when the Project is contained within or attached to such existing buildings, plant, or structures. Coverage shall be to the extent loss or damage arises out of Constructor's activities or operations at the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.1.4.equipment breakdown, including mechanical breakdown, electrical injury to electrical devices, explosion of steam equipment, and damage to steam equipment caused by a condition within the equipment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.1.5.testing coverage for running newly installed machinery and equipment at or beyond the specified limits of their capacity to determine whether they are fit for their intended use; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.1.6.physical loss resulting from Terrorism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.2.The Party that is the primary cause of a Builder's Risk Policy claim shall be responsible for any deductible amounts or coinsurance payments. If no Party is the primary cause of a claim, then the Party obtaining and maintaining the Builder's Risk Policy pursuant to §10.3.1 shall be responsible for the deductible amounts or coinsurance payments. This policy shall provide for a waiver of subrogation. This insurance shall remain in effect until final payment has been made or until no

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person or entity other than Owner has an insurable interest in the property to be covered by this insurance, whichever is sooner. Partial occupancy or use of the Work shall not commence until Design-Builder has secured the consent of the insurance company or companies providing the coverage required in this subsection. Before commencing the Work, Design-Builder shall provide a copy of the property policy or policies obtained in compliance with §10.3.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.3.If Owner elects to purchase the property insurance required by this Agreement, including all of the same coverages and deductibles for the same duration specified in §10.3.1, then Owner shall give written notice to Design-Builder and the Design Professional before the Work is commenced and provide a copy of the property policy or policies obtained in compliance with §10.3.1. Owner may then provide insurance to protect its interests and the interests of the Design-Builder, Subcontractors, Suppliers, and Subsubcontractors. The cost of this insurance shall be paid by Owner in a Change Order. If Owner gives written notice of its intent to purchase property insurance required by this Agreement and fails to purchase or maintain such insurance, Owner shall be responsible for costs reasonably attributed to such failure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.4.The Parties waive all rights against each other and their respective employees, agents, contractors, subcontractors and subsubcontractors, and design professionals for damages caused by risks covered by the property insurance except such rights as they may have to the proceeds of the insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.5.To the extent of the limits of Design-Builder's CGL specified in §10.2 or Three Million dollars ($3,000,000.00), whichever is more, Design-Builder shall indemnify and hold harmless Owner against any and all liability, claims, demands, damages, losses, and expenses, including attorneys' fees, in connection with or arising out of any damage or alleged damage to any of Owner's existing adjacent property that may arise from the performance of the Work, to the extent of the negligent acts or omissions of Design-Builder, Subcontractor, or anyone employed directly or indirectly by any of them or by anyone for whose acts any of them may be liable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.6.RISK OF LOSS Except to the extent a loss is covered by applicable insurance, risk of loss or damage to the Work shall be upon the Party obtaining and maintaining the Builder's Risk Policy pursuant to §10.3.1 until the Date of Final Completion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4.ADDITIONAL GENERAL LIABILITY COVERAGE

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4.1.Owner shall require Design-Builder to purchase and maintain additional liability coverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4.2.If required by the above subsection, the additional liability coverage required of Design-Builder shall be:

Additional Insured. Pike Conductor DEV 1, LLC, Circle Street Investment Company, Pike Development Company, The Pike Company, Inc., Conductor Development LLC, Conductor DEV 1, LLC, Conductor Construction Management, LLC, Ridgeway Properties 1, LLC, Li-Cycle North America Hub, Inc. c/o Li-Cycle Holdings Corp., Bergmann Associates Architects, Engineers, Landscape Architects & Surveyors, D.P.C. and County of Monroe Industrial Development Agency (COMIDA) shall be named as an additional insured on Design-Builder's Commercial General Liability Insurance specified, for on-going operations and completed operations, excess/umbrella liability, commercial automobile liability, and any required pollution liability, but only with respect to liability for bodily injury, property damage, or personal and advertising injury to the extent caused by the negligent or intentionally wrongful acts or omissions of Design-Builder, or those acting on Design-Builder's behalf, in the performance of Design-Builder's Work for Owner at the Worksite. The insurance of the

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Subcontractor shall be primary and non-contributory to any insurance available to the Additional Insureds.

Any documented additional cost in the form of a surcharge associated with procuring the additional liability coverage in accordance with this subsection shall be paid by Owner directly or the costs may be reimbursed by Owner to Design-Builder by increasing the contract price to correspond to the actual cost required to purchase and maintain the additional liability coverage.

Before commencing the Work, Design-Builder shall provide either a copy of the OCP policy, or a certificate and endorsement evidencing that Owner has been named as an additional insured, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5.ROYALTIES, PATENTS, AND COPYRIGHTS Design-Builder shall pay all royalties and license fees which may be due on the inclusion of any patented or copyrighted materials, methods, or systems selected by Design-Builder and incorporated in the Work. Design-Builder shall indemnify and hold Owner harmless from all suits or claims for infringement of any patent rights or copyrights arising out of such selection. Owner agrees to indemnify and hold Design-Builder harmless from any suits or claims of infringement of any patent rights or copyrights arising out of any patented or copyrighted materials, methods, or systems specified by Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6.PROFESSIONAL LIABILITY INSURANCE Design-Builder shall obtain, either itself or through Design Professional, professional liability insurance for claims arising from the negligent performance of professional services under this Agreement, which shall be: Practice Policy

written for not less than $1,000,000.00 per claim and in the aggregate with a deductible not to exceed

$50,000.00. The Professional Liability Insurance shall include prior acts coverage sufficient to cover all services rendered by Design Professional. This coverage shall be continued in effect for One (1) year(s) after the Date of Substantial Completion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7.BONDING

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7.1.Performance and Payment Bonds are not required of Design-Builder.

**ARTICLE 11 SUSPENSION, NOTICE TO CURE, AND TERMINATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.SUSPENSION BY OWNER FOR CONVENIENCE

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.1.Owner may order Design-Builder in writing to suspend, delay, or interrupt all or any part of the Work without cause for such period of time as Owner may determine to be appropriate for its convenience.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.2.Adjustments caused by suspension, delay, or interruption shall be made for increases in the Contract Price or the Date of Substantial Completion or the Date of Final Completion. No adjustment shall be made if Design-Builder is or otherwise would have been responsible for the suspension, delay, or interruption of the Work, or if another provision of this Agreement is applied to render an equitable adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.NOTICE TO CURE A DEFAULT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.1.If Design-Builder persistently fails to supply enough qualified workers, proper materials, or equipment to maintain the approved Construction Schedule, or fails to make prompt payment to its workers, Subcontractors, or Suppliers, disregards Laws or orders of any public authority having jurisdiction, or is otherwise guilty of a material breach of a provision of this Agreement, Design-Builder may be deemed in default.

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If Design-Builder fails within seven (7) Days after receipt of written notice to commence and continue satisfactory correction of such default, then Owner shall give Design-Builder a second notice to correct the default within a three (3) Day period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.2.After receiving Owner's written notice, if Design-Builder fails to promptly commence and continue satisfactory correction of the default, then Owner without prejudice to any other rights or remedies may: (a) take possession of the Worksite; (b) complete the Work utilizing any reasonable means; (c) withhold payment due to Design-Builder; and (d) as Owner deems necessary, supply workers and materials, equipment, and other facilities for the satisfactory correction of the default, and charge Design-Builder the costs and expenses, including reasonable Overhead, profit, and attorneys' fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.3.In the event of an emergency affecting the safety of persons or property, Owner may immediately commence and continue satisfactory correction of a default without first giving written notice to Design-Builder, but shall give o Design-Builder prompt notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3.OWNER'S RIGHT TO TERMINATE FOR DEFAULT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3.1.TERMINATION BY OWNER FOR DEFAULT Upon expiration of the second notice for default period pursuant to §12.2 and absent appropriate corrective action, Owner may terminate this Agreement by written notice. Termination for default is in addition to any other remedies available to Owner under §12.2. If Owner's costs arising out of Design-Builder's failure to cure, including the costs to complete the Work and reasonable attorneys' fees, exceed the GMP, Design-Builder shall be liable to Owner for such excess costs. If Owner's costs are less than the GMP, Owner shall pay the difference to Design-Builder. If Owner exercises its rights under this section, upon the request of Design-Builder, Owner shall furnish to Design-Builder a detailed accounting of the costs incurred by Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3.2.If Design-Builder files a petition under the bankruptcy code, this Agreement shall terminate if Design-Builder or Design-Builder's trustee rejects the Agreement or, if a default occurs and Design Builder is unable to give adequate assurance of required performance; or (c) Design-Builder is otherwise is unable to comply with the requirements for assuming this Agreement under the applicable provisions of the Bankruptcy Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3.3.Owner shall make reasonable efforts to mitigate damages arising from Design-Builder's default, and shall promptly invoice Design-Builder for all amounts due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4.TERMINATION BY OWNER FOR CONVENIENCE If Owner terminates this Agreement other than as set forth in §11.1.2, Owner shall pay Design-Builder for all Work executed and for all proven loss, cost, or expense in connection with the Work, plus all demobilization costs. In addition, Design-Builder shall be paid an amount calculated as set forth below: none.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5.TERMINATION BY DESIGN-BUILDER

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5.1.Seven (7) Days' after Owner's receipt of written notice from Design-Builder, Design-Builder may terminate this Agreement for any of the following reasons: if the Work has been stopped for a thirty (30) Day period through no fault of the Design-Builder: (a) under court order or order of other governmental authorities having jurisdiction, or (b) as a result of the declaration of a national emergency or other governmental act emergency during which, through no act or fault of Design Builder, materials are not available; (c) Work is suspended by Owner for Convenience;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5.2.In addition, upon seven (7) Days written notice to Owner and an opportunity to cure within three (3) Days, Constructor may terminate this Agreement if Owner: (a) fails to furnish reasonable evidence that sufficient funds are available and committed for the entire cost of the Project ;(b)

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assigns this Agreement over Design-Builder's reasonable objection; (c) fails to pay Design-Builder in in accordance with this Agreement and Design-Builder stopped Work accordingly; or (d) otherwise materially breaches this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5.3.Upon termination by Design-Builder in accordance with §11.5.1, Design-Builder shall be entitled to recover from Owner payment for all Work executed and for all proven loss, cost, or expense in connection with the Work, plus all demobilization costs and reasonable damages. In addition, Design-Builder shall be paid an amount calculated as set forth either in §9.1.1 or §9.1.1, depending on when the termination occurs, and §11.4.1.

**ARTICLE 12 DISPUTE MITIGATION OR RESOLUTION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.WORK CONTINUANCE AND PAYMENT Unless otherwise agreed in writing, Design-Builder shall continue the Work and maintain the approved schedules during any dispute mitigation or resolution proceedings. If Design-Builder continues to perform, Owner shall continue to make payments in accordance with the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.DIRECT DISCUSSIONS If the Parties cannot reach resolution on a matter relating to or arising out of this Agreement, the Parties shall endeavor to reach resolution through good faith direct discussions between the Parties' representatives, who shall possess the necessary authority to resolve such matter and who will record the date of first discussions. If the Parties' representatives are not able to resolve such matter within five (5) Business Days of the date of first discussion, the Parties' representatives shall immediately inform senior executives of the Parties in writing that a resolution could not be reached. Upon receipt of such notice, the senior executives of the Parties shall meet within five (5) Business Days to endeavor to reach resolution. If the dispute remains unresolved after fifteen (15) Days from the date of first discussion, the Parties shall submit such matter to the dispute mitigation and dispute resolution procedures selected below.

MITIGATION If the Parties select one of the dispute mitigation procedures provided below, disputes remaining unresolved after direct discussions shall be directed to the selected mitigation procedure. The dispute mitigation procedure shall result in a nonbinding finding on the matter, which may be introduced as evidence at a subsequent binding adjudication of the matter, as designated in §12.4. The Parties agree that the dispute mitigation procedure shall be: Project Neutral (Neutral)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3.Intentionally Omitted

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4.MEDIATION If direct discussions pursuant to §12.1 do not result in resolution of the matter and no dispute mitigation procedure is selected under §12.2, the Parties shall endeavor to resolve the matter by mediation through the current Construction Industry Mediation Rules of the American Arbitration Association (AAA), or the Parties may mutually agree to select another set of mediation rules. The administration of the mediation shall be as mutually agreed by the Parties. The mediation shall be convened within thirty (30) Business Days of the matter first being discussed and shall conclude within forty-five (45) Business Days of the matter first being discussed. Either Party may terminate the mediation at any time after the first session by written notice to the non-terminating Party and mediator. The costs of the mediation shall be shared equally by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5.BINDING DISPUTE RESOLUTION If the matter is unresolved after submission of the matter to a mitigation procedure or to mediation, the Parties shall submit the matter to the binding dispute resolution procedure selected below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6.Intentionally Omitted

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7.LITIGATION

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Litigation in either the state or federal court having jurisdiction of the matter in the location of the Project

If not indicated, then litigation is default as opposed to arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7.1.COSTS The costs of any binding dispute resolution procedures and reasonable attorneys' fees shall be borne by the non-prevailing Party, as determined by the adjudicator of the dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7.2.VENUE The Project location shall serve as the venue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.8.MULTIPARTY PROCEEDING The Parties agree that all Parties necessary to resolve a matter shall be Parties to the same dispute resolution procedure, if possible. Appropriate provisions shall be included in all other contracts relating to the Work to provide for the joinder or consolidation of such dispute resolution proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.9.LIEN RIGHTS Nothing in this article shall limit any rights or remedies not expressly waived by Design-Builder that Design-Builder may have under lien laws.

**ARTICLE 13 MISCELLANEOUS PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.EXTENT OF AGREEMENT Except as expressly provided, this Agreement is solely for the benefit of the Parties, represents the entire and integrated agreement between the Parties, and supersedes all prior negotiations, representations, or agreements, either written or oral. This Agreement and each and every provision is for the exclusive benefit of The Parties and not for the benefit of any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2.ASSIGNMENT Neither Owner nor Design-Builder shall assign its interest in this Agreement without the written consent of the other except as to the assignment of proceeds. The terms and conditions of this Agreement shall be binding upon both Parties, their partners, successors, assigns, and legal representatives. Neither Party to this Agreement shall assign the Agreement as a whole without written consent of the other except that Owner may assign the Agreement to a wholly owned subsidiary of Owner when Owner has fully indemnified Design-Builder or to an institutional lender providing construction financing for the Project as long as the assignment is no less favorable to Design-Builder than this Agreement. In the event of such assignment, Design-Builder shall execute all consents reasonably required. In such event, the wholly-owned subsidiary or lender shall assume Owner's rights and obligations under the Contract Documents. If either Party attempts to make such an assignment, that Party shall nevertheless remain legally responsible for all obligations under the Agreement, unless otherwise agreed by the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3.GOVERNING LAW The Law in effect at the location of the Project shall govern this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4.SEVERABILITY The partial or complete invalidity of any one or more provisions of this Agreement shall not affect the validity or continuing force and effect of any other provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5.NOTICE Unless changed in writing, a Party's address indicated in ARTICLE 1 shall be used when delivering notice to a physical address. Except for Agreement termination and as otherwise specified in the Contract Documents, notice is effective upon transmission by any effective means, including U.S. postal service and overnight delivery service

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.6.NO WAIVER OF PERFORMANCE The failure of either Party to insist, in any one or more instances, on the performance of any of the terms, covenants, or conditions of this Agreement, or to exercise any of its rights, shall not be construed as a waiver or relinquishment of such term, covenant, condition, or right with respect to further performance.

![image_0.jpg](image_0.jpg)![image_2.jpg](image_2.jpg)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.7.TITLES AND GROUPINGS The title given to the articles and sections are for ease of reference only and shall not be relied upon or cited for any other purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.8.JOINT DRAFTING The Parties expressly agree that this Agreement was jointly drafted, and that both had opportunity to negotiate its terms and to obtain the assistance of counsel in reviewing its terms before execution. Therefore, this Agreement shall be construed neither against nor in favor of either Party, but shall be construed in a neutral manner.

**ARTICLE 14 CONTRACT DOCUMENTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.CONTRACT DOCUMENTS The Contract Documents are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)This Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)ConsensusDocs® 400 Preliminary Design Build Agreement Between Owner and Design-Builder

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Basis of Design/Owner's Program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Owner-provided information pursuant to §3.6.3 and other Owner information identified as intended to be a contract document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The Schematic Design Documents upon Owner approval pursuant to §2.4.17;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)The Design Development Documents upon Owner approval pursuant to §3.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)The Construction Documents upon Owner approval under §3.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Change Order, Interim Directives, and amendments issues in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Other: EXHIBIT A: Project Schedule dated June 2, 2022 EXHIBIT B: Construction Document List dated May 2022 EXHIBIT C: RFI Log dated May 18, 2022

EXHIBIT D: Pike Conductor JV1, LLC Proposal dated June 15, 2022 EXHIBIT E: Project Agreement (COMIDA)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.ORDER OF PRECEDENCE In case of any inconsistency, conflict, or ambiguity among the Contract Documents, the documents shall govern in the following order: (a) Change Orders and written amendments to this Agreement; (b) this Agreement; (c) design documents approved by Owner pursuant to §2.4.17 and §3.1.3 in order of the most recently approved; (d) information furnished by Owner pursuant to §4.1 or designated as a Contract Document in §ARTICLE 14; (e) other documents listed in this Agreement. Except as otherwise provided, among categories of documents having the same order of precedence, the term or provision that includes the latest date shall control. Where figures are given, they shall be preferred to scaled dimensions. Unless otherwise specifically defined in this Agreement, any terms that have well-known technical or trade meanings shall be interpreted in accordance with their well known meanings.

![image_0.jpg](image_0.jpg)![image_2.jpg](image_2.jpg)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OWNER1:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Conductor Development LLC**

**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**BY: /s/ Edward Brillante

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRINT NAME: Edward Brillante

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRINT TITLE: President

OWNER2:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Circle Street Investment Company**

**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**BY: /s/ William P Tehan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRINT NAME: William P Tehan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRINT TITLE: Member

DESIGN-BUILDER1:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Conductor Construction Management**

**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**BY: /s/ Andrew Saskowski

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRINT NAME: Andrew Saskowski

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRINT TITLE: Project Executive

DESIGN-BUILDER2:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**The Pike Company, Inc.**

**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**BY: /s/ Joseph P Snyder

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRINT NAME: Joseph P Snyder

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRINT TITLE: Vice President of Risk Management

END OF DOCUMENT

![image_0.jpg](image_0.jpg)![image_2.jpg](image_2.jpg)

EXHIBIT A: PROJECT SCHEDULE DATED JUNE 2, 2022

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[XXX]

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EXHIBIT B: CONSTRUCTION DOCUMENT LIST 2022-05

[XXX]

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EXHIBIT C: RFI Log dated May 18, 2022

[XXX]

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EXHIBIT D: Pike Conductor JV1, LLC Proposal dated June 15, 2022

[XXX]

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EXHIBIT E: Project Agreement (COMIDA)

PROJECT AGREEMENT

THIS PROJECT AGREEMENT (hereinafter, the "Project Agreement"), is made as of the

day of January, 2022, by and between the **COUNTY OF MONROE INDUSTRIAL DEVELOPMENT AGENCY**, a public benefit corporation of the State of New York, with offices at 50 West Main Street, Rochester, New York 14614 (the "Agency"), and **PIKE CONDUCTOR DEV 1, LLC**, a limited liability company with offices at c/o 1010 Lee Road, Rochester, New York 14606 (the "Company").

W I T N E S S E T H:

WHEREAS, the Company has submitted an application (the "Application") to the Agency requesting the Agency's assistance with respect to a certain project (the "Project") "), consisting of: (A) the acquisition of a leasehold interest in a portion of an approximately 90.53- acre parcel of land located at 50 McLaughlin Road in the Town of Greece, New York 14606 (the "Land"); (B) the construction on the Land of a warehouse, QA/QC laboratory, administrative office and visitor center building (the "Improvements"); and (C) the acquisition and installation therein, thereon or thereabout of certain machinery, equipment and related personal property (the "Equipment" and, together with the Land and the Improvements, the "Facility"), for use by Li- Cycle North America Hub, Inc. (the "Tenant") in its business of hydrometallurgical manufacturing; and

WHEREAS, by Resolution adopted on December 21, 2021 (the "Resolution"), the Agency authorized the Company to act as its agent for the purposes of undertaking the Project, subject to the Company entering into this Project Agreement; and

WHEREAS, by the Resolution, the Agency approved certain financial assistance for the benefit of the Company in connection with the Project consisting of: (a) an exemption from all New York State and local sales and use tax for purchases and rentals related to the Project with respect to the qualifying personal property included in or incorporated into the Facility or used in the acquisition, construction or equipping of the Facility, (b) an exemption from any mortgage recording tax as permitted by the laws of the State, and (c) a partial abatement from real property taxes conferred through a certain payment-in-lieu-of-tax agreement, between the Agency and the Company (the "PILOT Agreement") requiring the Company to make payments-in-lieu-of-taxes for the benefit of each municipality and school district having taxing jurisdiction over the Project (collectively, the sales and use tax exemption benefit, the mortgage recording tax exemption benefit, and the partial abatement from real property taxes benefit are hereinafter collectively referred to as, the "Financial Assistance"); and

WHEREAS, pursuant to and in accordance with Sections 859-a and 874 of the Act, the Agency requires, as a condition and as an inducement for it to provide any Financial Assistance, that the Company enter into this Project Agreement for the purposes of, among other things, to

govern the administration of and provide assurances with respect to the provision and recapture of said Financial Assistance upon the terms herein set forth; and

WHEREAS, this Agreement sets forth the terms and conditions under which Financial Assistance shall be provided to the Company; and

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WHEREAS, no agency appointment of the Company or any subagent thereof, nor any amount of Financial Assistance shall be provided to the Company by the Agency prior to the effective date of this Project Agreement.

NOW THEREFORE, in consideration of the covenants herein contained and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, it is mutually agreed as follows:

ARTICLE I. DEFINITIONS

Section 1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Definitions of Terms</u>. The words and terms as used in this Project Agreement shall have the same meanings as used in **<u>Schedule A</u>** attached hereto and made a part hereof, unless the context or use indicates another or different meaning or intent.

ARTICLE II. REPRESENTATIONS AND COVENANTS

Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Representations and Covenants of the Company</u>. The Company makes the following representations and covenants in order to induce the Agency to proceed with the Project/Facility:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company is a limited liability company formed, validly existing and in good standing under the laws of the State of New York, has the authority to enter into this Project Agreement, and has duly authorized the execution and delivery of this Project Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the execution and delivery of this Project Agreement, the consummation of the transactions contemplated hereby nor the fulfillment of or compliance with the provisions of this Project Agreement will conflict with or result in a breach of any of the terms, conditions or provisions of any restriction or any agreement or instrument to which the Company is a party or by which it is bound, or will constitute a default under any of the foregoing, or result in the creation or imposition of any lien of any nature upon any of the property of the Company under the terms of any such instrument or agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Facility and the operation thereof will conform with all applicable zoning, planning, and building laws and regulations of governmental authorities having jurisdiction over the Facility, and the Company shall defend, indemnify and hold the Agency harmless from any liability or expenses resulting from any failure by the Company to comply with the provisions of this Section 2.1(c).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) There is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body pending or, to the knowledge of the Company, threatened against or affecting the Company, to which the Company is a party, and in which an adverse result would in any way diminish or adversely impact the Company's ability to fulfill its obligations under this Project Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company covenants that the Facility will comply in all respects with all environmental laws and regulations, and, except in compliance with environmental laws and regulations, (i) that no pollutants, contaminants, solid wastes, or toxic or hazardous substances will be stored, treated, generated, disposed of, or allowed to exist on the Facility, (ii) that the Company will take all reasonable and prudent steps to prevent an unlawful release of hazardous substances onto the Facility or onto any other property, (iii) that no asbestos will be incorporated into or disposed of on the Facility, (iv) that no underground storage tanks will be located on the Facility, and (v) that no investigation, order, agreement, notice, demand or settlement with respect to any of the above is threatened, anticipated, or in existence. The Company upon receiving any information or notice contrary to the representations contained in this Section 2.1(e) shall immediately notify the Agency in writing with full details regarding the same. The Company hereby releases the Agency from liability with respect to, and agrees to defend, indemnify, and hold harmless the Agency, its executive director, directors, members, officers, employees, agents (other than the Company), representatives, successors, and assigns from and against any and all claims, demands, damages, costs, orders, liabilities, penalties, and expenses (including reasonable attorneys' fees) related in any way to any violation of the covenants or failure to be accurate of the representations contained in this Section 2.1(e). In the event the Agency in its reasonable discretion deems it necessary to perform due diligence with respect to any of the above, or to have an environmental audit performed with respect to the Facility, the Company agrees to pay the expenses of same to the Agency upon demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Any personal property acquired by the Company in the name of the Agency shall be located in Monroe County, except for temporary periods during ordinary use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Company hereby represents to the Agency that facilities and property that are primarily used in making retail sales of goods and services to customers who personally visit the Facility will not constitute more than one-third (1/3) of the total costs of the Facility, except in accordance with New York General Municipal Law (the "GML") Section 862.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Company acknowledges and agrees that, except to the extent of bond proceeds (to the extent bonds are issued by the Agency with respect to the Project), the Agency shall not be liable, either directly or indirectly or contingently, upon any such contract, agreement, invoice, bill or purchase order in any manner and to any extent whatsoever (including payment or performance obligations), and the Company shall be the sole party liable thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company covenants and agrees that at all times, it will (i) maintain its existence and not dissolve, (ii) continue to be a limited liability company subject to service of process in the State and either organized under the laws of the State, or organized under the laws of any other state of the United States and duly qualified to do business in the State, (iii) not liquidate, wind-up or dissolve or otherwise sell, assign, or dispose of all or substantially all of its property, business or assets. This Project Agreement may not be assigned in whole or part

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without the prior written consent of the Agency or otherwise in accordance with the Leaseback Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Company confirms and acknowledges under the penalty of perjury that as of the date hereof, the Company, as owner, occupant, or operator of the Project receiving Financial Assistance from the Agency in connection with the Project, is in substantial compliance with all applicable local, state and federal tax, worker protection and environmental laws, rules and regulations. The Company agrees that it will, throughout the term of this Project Agreement, promptly comply in all material respects with all statutes, codes, laws, acts, ordinances, orders, judgments, decrees, injunctions, rules, regulations, permits, licenses, authorizations, directions and requirements of all federal, state, county, municipal and other governments, departments, commissions, boards, companies or associations insuring the premises, courts, authorities, officials and officers, foreseen or unforeseen, ordinary or extraordinary, which now or at any time hereafter may be applicable to the Facility or any part thereof, or to any use, manner of use or condition of the Facility or any part thereof. Notwithstanding the foregoing, the Company may in good faith contest the validity of the applicability of any requirement of the nature referred to this Section 2.1(j). In such event, the Company, with the prior written consent of the Agency (which shall not be unreasonably conditioned, delayed or withheld), may fail to comply with the requirement or requirements so contested during the period of such contest and any appeal therefrom unless the Agency shall notify the Company that it must comply with such requirement or requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Company hereby acknowledges and agrees that the Financial Assistance constitutes "public funds" unless otherwise excluded under Section 224-a(3) of the New York Labor Law, and by executing this Project Agreement, (i) confirms that it has received notice from the Agency pursuant to Section 224-a(8)(d) of the New York Labor Law and (ii) acknowledges its obligations pursuant to Section 224-a(8)(a) of the New York Labor Law. Other than the Financial Assistance estimates provided herein and disclosed to the Company, the Agency makes no representations or covenants with respect to the total sources of "public funds" received by the Company in connection with the Project

ARTICLE III. GENERAL

Section 3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Purpose of Project</u>. The purpose of the Financial Assistance with respect to the Project is to promote, develop, encourage and assist in the acquiring, constructing, reconstructing, improving, maintaining, equipping and furnishing of the Facility, to advance job opportunities, health, general prosperity and economic welfare of the people of Monroe County, New York, and to specifically promote the investment commitment, employment commitment, and other commitments of the Company contained herein and in the Company's Application.

ARTICLE IV.

FINANCIAL ASSISTANCE AND RECAPTURE OF BENEFITS

Section 4.1&nbsp;&nbsp;&nbsp;&nbsp;In accordance with the Resolution and the Cost-Benefit Analysis (or such other equivalent document or report, as determined by the Agency) (the "CBA"), attached

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hereto as **<u>Exhibit A</u>**, disclosed by the Agency at its public hearing for the Project (the "Public Hearing"), the Company further: (i) covenants, with respect to the Sales Tax Exemption, that it shall comply with this Project Agreement, specifically, but not limited to, Section 4.3 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) confirms that the mortgage recording tax exemption benefit shall conform with the requirements of Section 4.7 hereof; and (iii) confirms that real property tax abatement to be provided to the Company shall conform to those disclosed within the CBA at the Public Hearing for the Project and as contained within the PILOT Agreement, a form of which PILOT Agreement is attached hereto as **<u>Exhibit A</u>**.

Section 4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>PILOT Agreement</u>. The parties hereto have executed or will execute the Lease Agreement, Leaseback Agreement and PILOT Agreement. As provided in the PILOT Agreement, the Company agrees to make certain payments (as described in the PILOT Agreement) in addition to paying all special ad valorem levies, special assessments or special district taxes and service charges against real property in the jurisdiction where the Facility is located.

Section 4.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Sales Tax Exemption.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Agency hereby appoints and confirms its appointment of the Company as the true and lawful agent of the Agency to undertake the Project. Such appointment was made by the Agency pursuant to the Resolution. The Agency agrees to acquire, construct and equip the Facility based on the Company specifications. The Agency and the Company hereby agree and intend this Project Agreement to constitute an existing contract pursuant to Section 6 of Chapter 58 of the Laws of 2020.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company, as agent of the Agency, will undertake the Project. The Company hereby agrees to limit its activities as agent of the Agency under the authority of the Resolution to acts reasonably related to the acquisition, construction and equipping of the Facility. The right of the Company to act as agent of the Agency shall expire on the earlier of (x) the completion of the Project, or (y) **June 30, 2023** ("Termination Date"); provided, however, that the Agency may extend the Company's agent appointment at its discretion upon the written request of the Company if such activities and improvements are not completed by such time, and further provided that the Agency shall not unreasonably withhold its consent to the extension of such appointment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Agency's Exempt Status</u>. The Agency constitutes a corporate governmental agency and a public benefit corporation under the laws of the State of New York, and therefore, in the exercise of its governmental functions, is exempt from the imposition of Sales and Use Taxes. As an exempt governmental entity, no exempt organization identification number has been issued to the Agency nor is one required. Notwithstanding the foregoing, the Agency makes no representation to the Company, any Agent (as defined in **<u>Schedule C</u>** attached hereto) or any third party that any Sales Tax Exemption is available under this Project Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Scope of Authorization of Sales Tax Exemption</u>. The Agency hereby authorizes the Company, subject to the terms and conditions of this Project Agreement, to act as its agent in connection with the Project for the purpose of effecting purchases and leases of certain items so that such purchases and leases are exempt from the imposition of Sales and Use

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Taxes. The Agency's authorization with respect to such Sales Tax Exemption provided to the Company and its Agents pursuant to this Project Agreement shall be subject to the following limitations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The Sales Tax Exemption shall be effective only for a term commencing on the date hereof and expiring upon the earliest of (A) the termination of this Project Agreement, (B) the Termination Date, (C) failure of the Company to file Form ST-340, as described in Section 4.5(g) below, (D) the termination of the Sales Tax Exemption authorization pursuant to Section 6.2 hereof or (E) the date upon which the Company received the Maximum Sales Tax Exemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The Sales Tax Exemption authorization set forth herein shall automatically be suspended upon written notice to the Company that the Company is in default under this Project Agreement (or related document) until such default is cured to the satisfaction of the Agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)The Sales Tax Exemption authorization shall be subject to all of the terms, conditions and provisions of this Project Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)The Sales Tax Exemption shall only be utilized for items which shall be purchased, incorporated, completed or installed for use only by the Company at the Facility or in connection with the Project (and not with any intention to sell, transfer or otherwise dispose of any such item to a Person as shall not constitute the Company), it being the intention of the Agency and the Company that the Sales Tax Exemption shall not be made available with respect to any item unless such item is used solely by the Company at the Facility or in connection with the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)The Sales Tax Exemption shall not be used to benefit any person or entity, including any tenant or subtenant located at the Facility, other than the Company, without the prior written consent of the Agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)By execution by the Company of this Project Agreement, the Company agrees to accept the terms hereof and represents and warrants to the Agency that the use of the Sales Tax Exemption by the Company or by any Agent is strictly for the purposes stated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)Upon the Termination Date, the Company and each Agent shall cease being agents of the Agency, and the Company shall immediately notify each Agent in writing of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)The Company agrees that the aggregate amount of Sales Tax Exemption realized by the Company and by all Agents of the Company, if any, in connection with the Facility shall not exceed in the aggregate the Maximum Sales Tax Exemption.

Section 4.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Procedures for Appointing Subagents</u>. If the Company desires to seek the appointment of a contractor, a subcontractor or other party to act as the Agency's agent, including, but not limited, to the individuals and entities described on **<u>Schedule B</u>**

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attached hereto (a "Subagent") for the purpose of effecting purchases which are eligible for the Sales Tax Exemption pursuant to authority of this Project Agreement, it must complete the following steps:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The Company shall have the right to amend **<u>Schedule B</u>** hereto from time to time and shall be solely responsible for maintaining an accurate list of all parties acting as agent for the Agency. The Company's right to appoint Subagents is expressly conditioned upon updating **<u>Schedule B</u>** attached hereto, along with, for each Subagent, the Company's completion and submission of Form ST-60 to the Agency, attached hereto as **<u>Exhibit B</u>**. An Authorized Representative of the Agency must sign the Form ST-60 and return the same to the Company. Following receipt of the signed Form ST-60, the Company must file, with NYS, such Form ST-60 within thirty (30) days of the date that the Agency appoints a project operator or other person or entity to act as a Subagent of the Agency for purposes of extending the Sales Tax Exemption to such Subagent. The Company acknowledges and agrees that it shall be the Company's sole and exclusive responsibility to file a completed Form ST-60 with respect to any Subagent and the failure to timely do so could result in an Event of Default and Recapture Event (as hereinafter defined).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The Company shall ensure that each Subagent shall observe and comply with the terms and conditions of this Project Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)<u>Form ST-60 Not an Exemption Certificate</u>. The&nbsp;&nbsp;&nbsp;&nbsp;Company acknowledges that the executed Form ST-60 designating the Company or any Subagent as an agent of the Agency shall not serve as a Sales Tax Exemption certificate or document. Neither the Company nor any other Subagent may tender a copy of the executed Form ST-60 to any person required to collect sales or use tax as a basis to make such purchases exempt from tax. No such person required to collect sales or use taxes may accept the executed Form ST-60 in lieu of collecting any tax required to be collected. THE CIVIL AND CRIMINAL PENALTIES FOR MISUSE OF A COPY OF FORM ST-60 AS AN EXEMPTION CERTIFICATE OR DOCUMENT OR FOR FAILURE TO PAY OR COLLECT TAX SHALL BE AS PROVIDED BY LAW. IN ADDITION, THE USE BY A SUBAGENT, THE COMPANY, OR OTHER PERSON OR ENTITY OF SUCH FORM ST-60 AS AN EXEMPTION CERTIFICATE OR DOCUMENT SHALL BE DEEMED TO BE, UNDER ARTICLES TWENTY EIGHT AND THIRTY SEVEN OF THE NEW YORK STATE TAX AND FINANCE LAW (THE "TAX LAW"), THE ISSUANCE OF A FALSE OR FRAUDULENT EXEMPTION CERTIFICATE OR DOCUMENT WITH THE INTENT TO EVADE TAX.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)<u>Form ST-123 Requirement</u>. As an agent of the Agency, the Company agrees that it will, and will cause each Subagent to, present to each seller or vendor a completed and signed Form ST-123, attached hereto as **<u>Exhibit C-1</u>**, for each contract, agreement, invoice, bill or purchase order entered into by the Company or by any Subagent, as agent for the Agency, for the purpose of undertaking the Project. Form ST-123 requires that each seller or vendor accepting Form ST-123 identify the Facility on each bill or invoice for purchases and indicate on the bill or

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invoice that the Agency or Subagent or Company, as project operator of the Agency, was the purchaser. For the purposes of indicating who the purchaser is, each bill or invoice should state, "I, [NAME OF COMPANY OR SUBAGENT], certify that I am a duly appointed agent of the COUNTY OF MONROE INDUSTRIAL DEVELOPMENT AGENCY and that I am purchasing the tangible personal property or services for use in the Pike Conductor DEV 1, LLC Project located at 50 McLaughlin Road in the Town of Greece, New York 14606, IDA Project Number 2602-21-068A". For convenience purposes, in the instance where the vendor does not print on each invoice the acknowledgment as described in the prior sentence, an "Invoice Rider" (a copy of which is attached hereto as **<u>Exhibit C-3</u>**) can be utilized for record keeping purposes. The Company shall retain copies of all such contracts, agreements, invoices, bills and purchase orders for a period of not less than six (6) years from the date thereof. For each Subagent the Form ST-123 shall be completed as follows: (i) the "Project Information" section of Form ST-123, attached hereto as **<u>Exhibit C-2</u>**, should be completed using the name and address of the Facility as indicated on the Form ST-60 used to appoint the Subagent; and (ii) the date that the Subagent was appointed as indicated on the Form ST-60.

All contracts entered into by the Company and all Subagents thereof as agent for the Agency shall include the language contained within **<u>Schedule C</u>** attached hereto. **<u>Failure by the</u> <u>Company and/or any Subagent thereof to include such language may disqualify the agent</u> <u>status and Sales Tax Exemption derived by virtue of this Project Agreement. The</u> <u>Company, for itself and on behalf of all duly appointed Subagents, hereby agrees that all</u> <u>contracts entered into by the Company and any Subagents thereof shall be available to the</u> <u>Agency for inspection and confirmation of the foregoing mandatory language.</u>**

Section 4.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Form ST-340 Filing Requirement</u>. The Company shall annually file, on or before February 15<sup>th</sup> of each year in which the sales tax exemption is in place, a statement with the State Department of Taxation and Finance (the "Commissioner") and the Agency on form "Annual Report of Sales and Use Tax Exemptions" (NYS Form ST-340, a copy of which is attached hereto as **<u>Exhibit D</u>**) regarding the value of Sales Tax Exemption the Company and its Subagents, if any, have claimed pursuant to the agency conferred on the Company with respect to the Project in accordance with General Municipal Law Section

874(8). **Please note, the Company is to report only the Sales Tax Exemption derived as a result of the Agency's participation in the Project and not those received as a result of other available State exemptions. For the avoidance of doubt, other State exemptions, which the Company should not report on its NYS Form ST-340, include, but are not limited to, exemptions available to certain manufacturers or those exemptions that apply to capital improvements.** The Company understands and agrees that the failure to file such annual statement will result in the removal of the Company's authority to act as agent for the Agency and/or Recapture of Agency Benefits as described in Section 4.8 hereof.

Section 4.6&nbsp;&nbsp;&nbsp;&nbsp;<u>GML Provisions Relating to Sales Tax Savings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company covenants and agrees to comply, and to cause each of its contractors, subcontractors, Subagents, persons or entities to comply, with the requirements of GML Sections 875(1) and (3) (the "GML Provisions"), as such provisions may be amended from

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time to time. In the event of a conflict between the other provisions of this Project Agreement and the GML Provisions, the GML Provisions shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company acknowledges and agrees that pursuant to GML Section 875(3), the Agency shall have the right to recover, recapture, receive, or otherwise obtain from the Company, Sales Tax Savings taken or purported to be taken by the Company, any Subagent or any other person or entity acting on behalf of the Company to which the Company is not entitled or which are in excess of the Maximum Sales Tax Exemption or which are for property or services not authorized or taken in cases where the Company, any Subagent or any other person or entity acting on behalf of the Company failed to comply with a material term or condition to use property or services in the manner required by this Project Agreement. The Company shall, and shall require each Subagent and any other person or entity acting on behalf of the Company, to cooperate with the Agency in its efforts to recover, recapture, receive, or otherwise obtain such Sales Tax Savings and shall promptly pay over any such amounts to the Agency or any other entity that it requests to receive the Sales Tax Savings. The failure to pay over such amounts to such recipient shall be grounds for the Commissioner to assess and determine Sales and Use Taxes due from the Company under Article 28 of the Tax Law, together with any relevant penalties and interest due on such amounts.

Subject to the provisions of Section 4.6(b) above, in the event that the Company or any Subagent shall utilize the Sales Tax Exemption in violation of the provisions of this Project Agreement, the Company shall promptly deliver notice of same to the Agency, and the Company shall, upon demand by the Agency, pay to or at the direction of the Agency a return of sales or use tax exemptions in an amount equal to all such unauthorized Sales Tax Savings together with interest at the rate of twelve percent (12%) per annum compounded daily from the date and with respect to the dollar amount for which each such unauthorized Sales Tax Exemption was availed of by the Company or any Subagent (as applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon request by the Agency with reasonable notice to the Company, the Company shall make available at reasonable times to the Agency and/or the Independent Accountant all such books, records, contracts, agreements, invoices, bills or purchase orders of the Company and any Subagent, and require all appropriate officers and employees of the Company to respond to reasonable inquiries by the Agency and/or the Independent Accountant, as shall be necessary (i) to indicate in reasonable detail those costs for which the Company or any Subagent shall have utilized the Sales Tax Exemption and the dates and amounts so utilized, and (ii) to permit the Agency to determine any amounts owed by the Company under this Section 4.6(c).

Section 4.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Mortgage Recording Tax Exemption.</u> Section 874 of the Act exempts the Agency from paying certain mortgage recording taxes except for the portion of the mortgage recording tax allocated to transportation districts referenced in Section 253(2)(a) of the New York State Tax Law. The Agency hereby grants to the Company exemption from mortgage recording taxes for one or more mortgages (collectively, the "Mortgage") securing an aggregate principal amount not to exceed the Maximum Mortgage Principal Amount, or such greater amount as approved by the Agency in its sole and absolute discretion, in connection with the financing of the Project and any future financing, refinancing or permanent financing of the costs of the Project (the "Mortgage Recording Tax Exemption"). The Company

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represents and warrants (1) that the real property secured by the Mortgage is located within a transportation district referenced in Section 253(2)(a) of the New York State Real Property Tax Law, and (2) that upon recording the Mortgage, the Company shall pay the mortgage recording tax allocated to transportation districts referenced in Section 253(a)(2) of the New York State Real Property Tax Law.

Section 4.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Recapture of Agency Benefits.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It is understood and agreed by the parties hereto that the Agency is entering into this Project Agreement in order to provide the Financial Assistance to the Company for the Facility and to accomplish the public purposes of the Act. In consideration therefor, the Company hereby agrees that if there shall occur a Recapture Event (as defined below) after the date hereof, the Company shall pay to the Agency, or to the State, if so directed by the Agency (except as otherwise specified below) as a return of public benefits conferred by the Agency, one hundred percent (100%) of the Recaptured Benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The term "Recaptured Benefits" shall mean all direct monetary benefits, tax exemptions and abatements and other financial assistance, if any, derived solely from the Agency's participation in the transaction contemplated by this Project Agreement, including, but not limited to, the amount equal to 100% of the:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Mortgage Recording Tax Exemption; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Sales Tax Exemption savings realized by or for the benefit of the Company, including any savings realized by any Subagent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)real property tax abatements granted pursuant to the PILOT Agreement;

which Recaptured Benefits from time to time shall upon the occurrence of a Recapture Event in accordance with the provisions of Section 4.8(c) below and the declaration of a Recapture Event by notice from the Agency to the Company be payable directly to the Agency or the State of New York if so directed by the Agency within ten (10) days after the date of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The term "Recapture Event" shall mean any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The occurrence and continuation of an Event of Default under this Project Agreement which remains uncured beyond any applicable notice and/or grace period, if any, provided hereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The Project shall cease to be a "Project" within the meaning of the Act as in effect on the date hereof, through the act of omission of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)The Company receives Sales Tax Savings in connection with property or services not authorized by the Agency as part of the Project; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)The Company receives Sales Tax Savings in connection with the Project in excess of the Maximum Sales Tax Exemption; provided, however, that the

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foregoing shall constitute a Recapture Event with respect to such excess Sales Tax Savings only. It is further provided that failure to repay the Sales Tax Savings within thirty (30) days shall constitute a Recapture Event with respect to all Recapture Benefits; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)The Company has made a material false or misleading statement, or omitted any information which, if included, would have rendered any information in the application or supporting documentation false or misleading in any material respect, on its application for Financial Assistance; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)Failure of the Company to file a copy of the Form ST-340 with the Agency in compliance with Section 4.5 hereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)Failure of the Company to create or cause to be maintained the number of full-time equivalent ("FTE") jobs at the Facility as provided in the PILOT Agreement, which failure is not reflective of the business conditions of the Company or the subtenants of the Company, including, without limitation, loss of major sales, revenues, distribution or other adverse business developments and/or local, national or international economic conditions, trade issues or industry wide conditions.

In order to certify and verify the foregoing, the Company shall provide annually, to the Agency, a certified statement and documentation: (i) enumerating the full-time equivalent jobs retained and the full-time equivalent jobs created as a result of the Financial Assistance, by category, including full-time equivalent independent contractors or employees of independent contractors that work at the project location, (ii) indicating that the salary and fringe benefit averages or ranges for categories of jobs retained and jobs created that was provided in the Application for Financial Assistance is still accurate and if it is not still accurate, providing a revised list of salary and fringe benefit averages or ranges for categories of jobs retained and jobs created, and (iii) such other information, as so requested from time to time, to enable the Agency to assess the progress of the Project toward achieving the investment, job retention, job creation, or other objectives of the Project indicated in the Application for Financial Assistance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event any payment owing by the Company under this Section shall not be paid upon demand of the Agency, such payment shall bear interest from the date of such demand at a rate equal to one percent (1%) plus the Prime Rate, but in no event at a rate higher than the maximum lawful prevailing rate, until the Company shall have made such payment in full, together with such accrued interest to the date of payment, to the Agency (except as otherwise specified above).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Agency shall be entitled to deduct all reasonable out of pocket expenses of the Agency, including, without limitation, reasonable legal fees, incurred with the recovery of all amounts due under this Section 4.8, from amounts received by the Agency pursuant to this Section 4.8.

Notwithstanding anything to the contrary contained herein, the provisions of this Section

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 shall survive termination of this Agreement, for any reason whatsoever.

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ARTICLE V. INSURANCE

Section 5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Insurance Required.</u> Effective as of the date hereof and until the expiration or termination of the right of the Company to act as agent of the Agency hereunder, the Company shall maintain, or cause to be maintained by its subagent or subcontractors, certain insurance against such risks and for such amounts as are customarily insured against by businesses of like size and type, and paying, as the same become due and payable, all premiums in respect thereto, including, but not necessarily limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Insurance against loss or damage by fire, lightning and other casualties, with a uniform standard extended coverage endorsement, such insurance to be in an amount not less than the full replacement value of the Facility, exclusive of excavations and foundations, as determined by a recognized appraiser or insurer selected by the Company; or as an alternative to the foregoing, the Company may insure the Facility under a blanket insurance policy or policies covering not only the Facility but other properties as well, provided a periodic appraisal is performed and provided to the Agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Workers' compensation insurance, disability benefits insurance, and each other form of insurance which the Agency or the Company is required by law to provide, covering loss resulting from injury, sickness, disability or death of employees of the Company who are located at or assigned to the Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Insurance against loss or losses from liabilities imposed by law or assumed in any written contract (including the contractual liability assumed by the Company under Section 7.1 hereof) and arising from personal injury and death or damage to the property of others caused by any accident or occurrence, with limits of not less than **$1,000,000** per accident or occurrence on account of personal injury, including death resulting therefrom, **$1,000,000** per accident or occurrence on account of damage to the property of others, excluding liability imposed upon the Company by any applicable workers' compensation law; and a blanket excess liability policy in the amount not less than **$3,000,000**, protecting the Company against any loss or liability or damage for personal injury or property damage. Such primary general liability insurance may have a $500,000 self-insured retention and such excess liability policy may have a commercially reasonable deductible.

Section 5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Additional Provisions Respecting Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **All insurance required by Section 5.1(c) hereof shall name the Agency as an additional insured.** All insurance shall be procured and maintained in financially sound and generally recognized responsible insurance companies selected by the Company and authorized to write such insurance in the State. Such insurance may be written with deductible amounts comparable to those on similar policies carried by other companies engaged in businesses similar in size, character and other respects to those in which the Company is engaged. All policies evidencing such insurance shall provide (i) for payment of the losses of the Company and the Agency as their respective interest may appear, and (ii) that the insurance company shall endeavor to give thirty (30) days' prior written notice or such other notice as the policy provides for, of the cancellation thereof to the Company and the Agency.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All such certificates of insurance of the insurers indicating that such insurance is in force and effect, and all policies (if applicable), shall be deposited with the Agency on the date hereof. Prior to the expiration of any such policy evidenced by said certificates, the Company shall furnish the Agency with evidence that the policy has been renewed or replaced or is no longer required by this Project Agreement.

ARTICLE VI.

EVENTS OF DEFAULT AND REMEDIES

Section 6.1&nbsp;&nbsp;&nbsp;&nbsp;The following shall each be "Events of Default" under this Project Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the failure by the Company to observe and perform any covenant contained in Sections 2.1(e), 2.1(g), 2.1(i), 2.1(j), 2.1(k), 4.3, 4.5, 4.6, 4.7, 5.1, 5.2, 7.1 and 7.6 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the failure by the Company to pay the Recapture Benefits on the date due; (c)&nbsp;&nbsp;&nbsp;&nbsp; the occurrence and continuation of a Recapture Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the occurrence of an Event of Default under the Leaseback Agreement or the PILOT Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the dissolution or liquidation of the Company; or the failure by the Company to release, stay, discharge, lift or bond within thirty (30) days any execution, garnishment, judgment or attachment of such consequence as may impair its ability to carry on its operations; or the failure by the Company generally to pay its debts as they become due; or an assignment by the Company for the benefit of creditors; or the commencement by the Company (as the debtor) of a case in bankruptcy or any proceeding under any other insolvency law; or the commencement of a case in bankruptcy or any proceeding under any other insolvency law against the Company (as the debtor), wherein a court having jurisdiction in the premises enters a decree or order for relief against the Company as the debtor, or such case or proceeding is consented to by the Company or remains undismissed for forty (40) days, or the Company consents to or admits the material allegations against it in any such case or proceeding; or a trustee, receiver or agent (however named) is appointed or authorized to take charge of substantially all of the property of the Company for the purpose of enforcing a lien against such Property or for the purpose of general administration of such Property for the benefit of creditors.

Notwithstanding anything to the contrary contained herein, the provisions of this Section

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1shall survive termination of this Agreement, for any reason whatsoever.

Section 6.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Remedies on Default.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Whenever any Event of Default shall have occurred and be continuing, the Agency may take, to the extent permitted by law, any one or more of the following remedial steps:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)declare, by written notice to the Company, to be immediately due and payable, whereupon the same shall become immediately due and payable: (A) all

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due and owing Recapture Benefits and (B) all other payments due under this Project Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)terminate this Project Agreement and the Sales Tax Exemption authorization; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)take any other action at law or in equity which may appear necessary or desirable to collect the payments then due or thereafter to become due hereunder, and to enforce the obligations, agreements and covenants of the Company under this Project Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No action taken pursuant to this Section 6.2 (including termination of the Project Agreement) shall relieve the Company from its obligation to make all payments required by the Leaseback Agreement, the PILOT Agreement or Recapture Benefits.

Notwithstanding anything to the contrary contained herein, the provisions of this Section

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2shall survive termination of this Agreement, for any reason whatsoever.

Section 6.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Remedies Cumulative</u>. No remedy herein conferred upon or reserved to the Agency is intended to be exclusive of any other available remedy, but each and every such remedy shall be cumulative and in addition to every other remedy given under this Project Agreement or now or hereafter existing at law or in equity. No delay or omission to exercise any right or power accruing upon any default shall impair any such right and power or shall be construed to be a waiver thereof, but any such right or power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Agency to exercise any remedy reserved to it in this Article VI it shall not be necessary to give any notice, other than such notice as may be herein expressly required in this Project Agreement.

Section 6.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Agreement to Pay Attorneys' Fees and Expenses</u>. In the event the Company should default under any of the provisions of this Project Agreement and the Agency should employ attorneys or incur other expenses for the collection of amounts payable hereunder or the enforcement of performance or observance of any obligations or agreements on the part of the Company herein contained, the Company shall, on demand therefor, pay to the Agency the fees of such attorneys and such other expenses so incurred.

ARTICLE VII. MISCELLANEOUS

Section 7.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Hold Harmless Provision</u>. The Company hereby releases the Agency from, agrees that the Agency shall not be liable for, and agrees to indemnify, defend and hold the Agency and its executive director, directors, members, officers, employees, agents (other than the Company), representatives, successors and assigns harmless from and against, any and all (i) liability for loss or damage to property or injury to or death of any and all persons that may be occasioned by any cause whatsoever pertaining to the Facility or arising by reason of or in connection with the occupation or the use thereof or the presence on, in or about the Facility or breach by the Company of this Project Agreement or (ii) liability arising from or expense incurred by the Agency's financing, acquiring, constructing, equipping,

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owning and leasing of the Facility, including, without limiting the generality of the foregoing, all causes of action and reasonable attorneys' fees and any other expenses incurred in defending any suits or actions which may arise as a result of any of the foregoing. The foregoing indemnities shall apply notwithstanding the fault or negligence on the part of the Agency, or any of its executive director, directors, members, officers, agents (other than the Company) or employees and irrespective of the breach of a statutory obligation or the application of any rule of comparative or apportioned liability, except that such indemnities will not be applicable with respect to willful misconduct or gross negligence on the part of the Agency or any other person or entity to be indemnified.

Section 7.2&nbsp;&nbsp;&nbsp;&nbsp;This Project Agreement may be executed in any number of counterparts each of which shall be deemed an original but which together shall constitute a single instrument.

Section 7.3&nbsp;&nbsp;&nbsp;&nbsp;All notices, claims and other communications hereunder shall be in writing and shall be deemed to be duly given if personally delivered or mailed first class, postage prepaid, or by a nationally-recognized overnight courier, addressed as follows:

To the Agency:&nbsp;&nbsp;&nbsp;&nbsp;County of Monroe Industrial Development Agency

50 West Main Street, Suite 1150 Rochester, New York 14614 Attn:&nbsp;&nbsp;&nbsp;&nbsp;Executive Director

With a copy to:&nbsp;&nbsp;&nbsp;&nbsp;Harris Beach PLLC

99 Garnsey Road

Pittsford, New York 14534 Attn:&nbsp;&nbsp;&nbsp;&nbsp;Rachel C. Baranello, Esq.

To the Company:&nbsp;&nbsp;&nbsp;&nbsp;Pike Conductor DEV 1, LLC

c/o 1010 Lee Road Rochester, New York 14606

Attention: Edward Brillante, President

With a copy to:&nbsp;&nbsp;&nbsp;&nbsp;Phillips Lytle LLP

28 East Main Street, Suite 1400 Rochester, New York 14614 Attention: Richard Beers, Esq.

or at such other address as any party may from time to time furnish to the other party by notice given in accordance with the provisions of this Section. All notices shall be deemed given when mailed or personally delivered in the manner provided in this Section.

Section 7.4&nbsp;&nbsp;&nbsp;&nbsp;This Project Agreement shall be governed by, and all matters in connection herewith shall be construed and enforced in accordance with, the laws of the State of New York applicable to agreements executed and to be wholly performed therein and the parties hereto hereby agree to submit to the personal jurisdiction of the federal or state courts located in Monroe County, New York.

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Section 7.5&nbsp;&nbsp;&nbsp;&nbsp;The warranties, representations, obligations and covenants of the Company under this Project Agreement shall be absolute and unconditional and shall remain in full force and effect during the term of this Project Agreement, shall be deemed to have been relied upon by the Agency, and shall survive the delivery and termination of this Project Agreement to the Agency, regardless of any investigation made by the Agency. This Project Agreement shall survive any termination or expiration of the Leaseback Agreement or the PILOT Agreement, as described below.

Section 7.6&nbsp;&nbsp;&nbsp;&nbsp;By executing this Project Agreement, the Company covenants and agrees to pay all fees, costs and expenses incurred by the Agency (a) for legal services including, but not limited to, those provided by the Agency's general counsel and bond/transaction counsel, (b) for other consultants retained by the Agency, if any, in connection with the Project; and (c) with respect to Agency's enforcement of any event of default or failure to comply with the terms of this Project Agreement (including reasonable attorney fees). The Company further covenants and agrees that the Company is liable for payment to the Agency of all charges referred to above, as well as all other actual costs and expenses incurred by the Agency in undertaking the Project notwithstanding the occurrence of any of (i) the Company's withdrawal, abandonment, cancellation or failure to pursue the Project; (ii) the inability of the Company to procure the services of one or more financial institutions to provide financing for the Project; or (iii) the Company's failure, for whatever reason, to undertake and/or successfully complete the Project.

*[Remainder of This Page Intentionally Left Blank]*

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*[Signature Page to Project Agreement]*

IN WITNESS WHEREOF, the parties hereto have executed this Project Agreement as of the day and year first above written.

**COUNTY OF MONROE INDUSTRIAL DEVELOPMENT AGENCY**

By: <u>&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name: Robin Finnerty

Title: Acting Executive Director

**PIKE CONDUCTOR DEV 1, LLC**

By: <u>&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name: Edward Brillante Title: President

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**<u>SCHEDULE A</u>**

SCHEDULE OF DEFINITIONS

"<u>Authorized Representative</u>" means, in the case of the Agency, the Executive Director, the Chairman or the Vice Chairman and such additional persons as, at the time, are designated to act on behalf of the Agency; and in the case of the Company, the members and such additional persons as, at the time, are designated to act on behalf of the Company.

"<u>Independent Accountant</u>" shall mean an independent certified public accountant or firm of independent certified public accountants selected by the Company and approved by the Agency (such approval not to be unreasonably withheld or delayed).

"<u>Lease Agreement</u>" shall mean that certain Lease Agreement, dated as of February 1, 2022 [or such other reasonable date] by and between the Company and the Agency.

"<u>Leaseback Agreement</u>" shall mean that certain Lease Agreement, dated as of February 1, 2022 [or such other reasonable date] by and between the Company and the Agency.

"<u>Maximum Mortgage Principal Amount</u>" shall mean $80,000,000.

"<u>Maximum Sales Tax Exemption</u>" shall mean the aggregate maximum dollar amount of Sales Tax Savings that the Company and all Subagents acting on behalf the Company are permitted to receive under this Project Agreement, which shall equal **$2,944,000**, or such maximum dollar amount as may be determined by the Agency pursuant to such additional documents as may be required by the Agency for such increase.

"<u>Prime Rate</u>" means (i) if no lender, the rate designated by <u>The Wall Street Journal</u> from time to time as its "prime rate", or (ii) if a lender exists, the rate designated by the lender from time to time as its "prime rate".

"<u>Sales Tax Exemption</u>" shall mean an exemption from Sales and Use Taxes resulting from the Agency's participation in the Facility.

"<u>Sales and Use Taxes</u>" shall mean local and State sales and compensating use taxes and fees imposed pursuant to Article 28 of the New York State Tax Law, as the same may be amended from time to time.

"<u>Sales Tax Savings</u>" shall mean all Sales Tax Exemption savings relating to Sales and Use Taxes realized by or for the benefit of the Company, including any savings realized by any Subagent, pursuant to this Project Agreement.

"<u>State Sales and Use Taxes</u>" shall mean sales and compensating use taxes and fees imposed by Article 28 of the New York State Tax Law but excluding such taxes imposed in a city by Section 1107 or 1108 of such Article 28, as the same may be amended from time to time.

<u>SA-1</u>

SAASA

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**<u>SCHEDULE B</u>**

**LIST OF APPOINTED AGENTS1**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>**

<sup>1</sup> FOR EACH AGENT APPOINTED BY THE COMPANY, A NYS FORM ST-60 MUST BE COMPLETED AND FILED BY THE COMPANY WITH THE NYS DEPARTMENT OF TAXATION AND FINANCE IDA UNIT INDICATING THE APPOINTMENT OF SUCH AGENT OF THE COMPANY.

SB-1

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**<u>SCHEDULE C</u>**

MANDATORY AGENT AND SUBAGENT CONTRACT LANGUAGE

"This contract is being entered into by **[NAME OF COMPANY OR NAME OF SUBAGENT]** (the "Agent"), as agent for and on behalf of the **COUNTY OF MONROE INDUSTRIAL DEVELOPMENT AGENCY** (the "Agency"), in

connection with a certain project of the Agency for the benefit of **PIKE CONDUCTOR DEV 1, LLC**, consisting in part of the acquisition and installation of certain machinery, equipment and building materials, all for incorporation and installation in certain premises located at 50 McLaughlin Road in the Town of Greece, New York 14606 (the "Premises"). The acquisition of the machinery, equipment and building materials to be incorporated and installed in the Premises and all services and rentals of equipment related to the acquisition, construction and equipping of the Project shall be exempt from all New York State and local sales and use taxes if the acquisition thereof is effected in accordance with the terms and conditions set forth in, and the Agent hereby represents that this contract is in compliance with the terms of, the Project Agreement by and between Pike Conductor DEV 1, LLC and the Agency, dated as of January , 2022. This contract is non-recourse to the Agency, and the Agency shall not be directly, indirectly or contingently liable or obligated hereunder in any manner or to any extent whatsoever. By execution or acceptance of this contract, the vendor/contractor hereby acknowledges and agrees to the terms and conditions set forth is this paragraph."

SC-1

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**<u>EXHIBIT A</u>**

**<u>COST BENEFIT ANALYSIS AND FORM OF PILOT AGREEMENT</u>**

**[Attached]**

EA-1

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**<u>EXHIBIT B</u>**

**FORM OF NYS FORM ST-60 TO BE COMPLETED BY COMPANY AND FILED WITH THE NYS TAX DEPARTMENT IDA UNIT FOR EACH OF ITS SUBAGENTS WITHIN THIRTY (30) DAYS OF APPOINTMENT**

**[See Attached Page]**

EB-1

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**<u>EXHIBIT C-1</u>**

**NYS FORM ST-123 FOR**

**COMPANY**

**[See Attached Page]**

EC-1

------

**<u>EXHIBIT C-2</u>**

**NYS FORM ST-123 FOR**

**<u>SUBAGENTS OF COMPANY</u>**

**[See Attached Page]**

EC-2

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**<u>EXHIBIT C-3</u>**

**INVOICE RIDER FORM**

I, <u>&nbsp;&nbsp;&nbsp;&nbsp;</u> *{Print Name}*,

the <u>&nbsp;&nbsp;&nbsp;&nbsp;</u> *{Title}* of <u>&nbsp;&nbsp;&nbsp;&nbsp;</u> *{Name of Agent or Subagent}* certify that I am a duly appointed agent of the County of Monroe Industrial Development Agency (the "Agency") and that I am purchasing the tangible personal property or services for use in the following Project and that such purchases qualify as exempt from sales and use taxes under the Project Agreement, dated as of January , 2022, by and between the Agency and Pike Conductor DEV 1, LLC.

Name of the Project:&nbsp;&nbsp;&nbsp;&nbsp;Pike Conductor DEV 1, LLC Project Street address of the Project Site:&nbsp;&nbsp;&nbsp;&nbsp;50 McLaughlin Road,

Town of Greece,

Monroe County, New York 14606

IDA OSC project number:&nbsp;&nbsp;&nbsp;&nbsp;2602-21-068A

EC-3

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**<u>EXHIBIT D</u>**

**NYS FORM ST-340 TO BE COMPLETED BY THE COMPANY AND FILED ANNUALLY WITH THE NYS TAX DEPARTMENT IDA UNIT NO LATER THAN FEBRUARY 15TH OF EACH YEAR**

**[See Attached Page]**

ED-1

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**LABOR POLICY**

**COUNTY OF MONROE INDUSTRIAL DEVELOPMENT AGENCY**

The County of Monroe Industrial Development Agency (IDA) was established for the purpose of creating employment opportunities for, and to promote the general prosperity and economic welfare of the residents of Monroe County. The IDA offers economic incentives and benefits to qualified applicants who wish to locate or expand their businesses or facilities in Monroe County. When the IDA approves a project, it enters into agreements to extend these incentives and benefits to the applicant.

Construction jobs are vital to the overall employment opportunities and economic growth in Monroe County. The IDA believes that companies benefiting from its incentive programs should employ local laborers, mechanics, craft persons, journey workers, equipment operators, truck drivers and apprentices ("construction workers"), during the construction phase of projects.

**<u>100% Local Labor</u>**

Applicants receiving IDA benefits ***must*** ensure that it and/or its contractor/developer hire ***100% of its construction workers from the local labor market***.

**<u>Local Labor Market</u>**

For the purpose of this policy, the local labor market is defined as construction workers residing in the following counties in New York State: Monroe, Genesee, Livingston, Orleans, Ontario, Seneca, Steuben, Wayne, Wyoming and Yates.

**<u>Bid Processing</u>**

Local participation in qualified projects receiving IDA economic incentives and benefits is vital to the economic growth of Monroe County. As such, all applicants/contractors/developers of a qualified project with a minimum $5,000,000 investment must place any and all invitations to bid in the Builders Exchange of Rochester Plan Room (https://robex.com/planroom/) two weeks before the bids are due.

**<u>Monitoring</u>**

A third-party auditing firm ("Project Monitor") will be engaged to monitor construction work commencing on the date benefits are granted by resolution of the IDA Board.

Once approved for IDA benefits, all applicants will be required to provide to the Project Monitor and the Exemption Processor (as hereinafter defined) the following information:414507\4872-6785-2297\ v1

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Contact information for the applicant's representative who will be responsible and accountable for providing information about the bidding and awarding of construction contracts relative to the applicant's project; and

All Monroe County IDA projects are subject to local monitoring by the IDA and the Project Monitor. Proof of residency or copy of drivers' license shall be checked by the Project Monitor during the Project Monitor's periodic inspection of the project.

The Project Monitor shall issue a report to the IDA staff immediately when an applicant or applicant's contractor is not in compliance with this labor policy. IDA staff shall advise the IDA Board of non-compliance by email or at the next scheduled meeting. If a violation of policy has occurred, the Project Monitor shall notify the applicant and contractor of such non-compliance and give applicant a warning of violation and 72 hours in which to correct such violation. Upon evidence of continued non-compliance or additional violations, the IDA and/or the Project Monitor shall notify the applicant that the project is in violation of the Monroe County IDA Labor Policy and is subject to IDA Board action which may result in the revocation, termination and/or recapture of any or all benefits conferred by the IDA.

**<u>Signage</u>**

The applicant/contractor/developer of an IDA approved project shall be required to maintain a sign, provided by the Project Monitor, on the project site at all times during construction. This sign shall be located in an area that is accessible to onsite workers and visitors, which should be clear and legible.

**<u>Exemption Process</u>**

In some instances, use of 100% local labor may not be possible for any of the following reasons:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Warranty issues related to installation of specialized equipment whereby the manufacturer requires installation by only approved installers (a copy of the equipment warranty confirming the use of specific installers must be provided). The granting of an exemption for the use of non-local labor on warranty related grounds is expressly conditioned on either (i) said non-local sub-contractors being enrolled in a New York State certified apprenticeship program (proof of such enrollment shall be provided to the IDA upon request) or (ii) the hiring of an apprentice/apprentices or local construction laborer(s) to assist in the installation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Specialized construction is required and no local contractors or local construction workers have the required skills, certifications or training to perform the work (proof of communication with local contractors, or details of the specialized construction must be provided);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Significant cost differentials in bids whereby use of local labor significantly increases the cost of the project. Three (3) bids are required and a cost differential of 25% is deemed significant. Where there is a significant cost differential, that if the local labor contractor agrees to reduce the bid to the average of the two bids, no waiver will be granted. However, if the average is still 25% or more, a waiver will be granted (copies of all bids/proposals received, including pricing, must be provided to confirm cost differential).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No local labor available for the project (if local bids were solicited with no response, please provide a copy of the bid, explain how it was advertised, and list who the bids were requested from).

***The request to secure an exemption for the use of non-local labor must be received from the applicant on the exemption form provided by the IDA or the 3rd party exemption monitor (the "Exemption Processor") and received by the Exemption Process forty-five (45) days in advance of work commencing***. The request will be reviewed by the Exemption Processor and forwarded to the IDA, at which time the IDA's Executive Director shall have the authority to approve or disapprove the exemption. The Exemption Processor shall report each authorized exemption to the Board of Directors at its monthly meeting.

*[Remainder of Page Intentionally Left Blank – Signature Page Follows]*

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**The applicant has read the Labor Policy and agrees to adhere to it without changes and shall require its construction manager, general contractor and sub-contractors who are not exempt to acknowledge the same.**

**PIKE CONDUCTOR DEV 1, LLC**

By: <u>&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name: Ed Brillante

Title:&nbsp;&nbsp;&nbsp;&nbsp;President

**Property Address:** 50 McLaughlin Road in the Town of Greece, NY

**Tax Account No.:** [XXX]

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**EXHIBIT** B-2

Depiction of Premises

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![image_5.jpg](image_5.jpg)

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EXHIBIT C

Payment Instructions

[XXX]

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EXHIBIT D

Guaranty

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&nbsp;&nbsp;&nbsp;&nbsp;

**<u>GUARANTY</u>**

In consideration of, and as an inducement to **PIKE CONDUCTOR DEV 1, LLC,** a Delaware limited liability company ("***Landlord***") to enter into that certain Sublease Agreement of even date herewith (the "***Sublease***") with **LI-CYCLE NORTH AMERICA HUB, INC.**, a Delaware corporation ("***Tenant***") for certain Premises located at 55 McLaughlin Road, Rochester, New York, and in further consideration of the premises and other good and valuable consideration, the receipt of which is hereby acknowledged, the undersigned **LI-CYCLE HOLDINGS CORP.**, an Ontario, Canada business corporation ("***Guarantor***"), hereby guarantees, absolutely and unconditionally, to Landlord the full and prompt performance of all terms, covenants, conditions and agreements to be performed and observed by Tenant under the Sublease and any and all amendments, modifications and other instruments relating thereto, whether now or hereafter existing, and the full and prompt payment of all damages, costs and expenses which shall at any time be recoverable by Landlord from Tenant by virtue of the Sublease and any amendments, modifications and other instruments relating thereto (hereinafter called "***Liabilities of Tenant***"); and Guarantor hereby covenants and agrees to and with Landlord, its successors and assigns, that if a Default (as defined in the Sublease) in the payment of Rent (as defined in the Sublease), or any other sums or charges payable by Tenant under the Sublease, or in the performance by Tenant of any of the terms, covenants, provisions or conditions contained in the Sublease, Guarantor will forthwith pay to Landlord, its successors and assigns, the Rent and other sums and charges and will forthwith faithfully perform and fulfill all of such terms, covenants, conditions and provisions of the Sublease and will forthwith faithfully pay to Landlord all damages that may arise in consequence of any Default by Tenant.

Guarantor agrees that, with or without notice or demand, Guarantor will reimburse Landlord, to the extent that such reimbursement is not made by Tenant, for all expenses (including reasonable attorneys' fees and disbursements) incurred by Landlord in connection with any Default by Tenant under the Sublease or the default by Guarantor under this Guaranty.

All moneys available to Tenant for application in payment or reduction of the Liabilities of Tenant may be applied by Landlord, in such manner and in such amounts and at such time or times as Landlord may see fit, to the payment or reduction of such of the Liabilities of Tenant as Landlord may elect.

This Guaranty shall be a continuing guaranty, and the liability of the Guarantor hereunder shall in no way be affected, modified or diminished by reason that any security for the Liabilities of Tenant is exchanged, surrendered or released or the Sublease or any other obligation of Tenant is changed, altered, renewed, extended, continued, surrendered, compromised, waived or released in whole or in part, or that any default with respect thereto is waived, whether or not notice thereof is given to Guarantor, and it is understood and agreed that Landlord may fail to set off and may release, in whole or in part, any credit on Landlord's books in favor of Tenant, and may extend further credit in any manner whatsoever to Tenant, and generally deal with Tenant or any such security as Landlord may see fit; and Guarantor shall remain bound under this Guaranty notwithstanding any such exchange, surrender, release, change, alteration, renewal, extension, continuance, comprise, waiver, inaction, extension of further credit or other dealing.

Notwithstanding any provision to the contrary contained herein, Guarantor hereby unconditionally and irrevocably waives (a) any and all rights of subrogation (whether arising under contract, 11 U.S.C. § 509 or otherwise) to the claims, whether existing now or arising hereafter, Landlord may have against Tenant, and (b) any and all rights of reimbursement, contribution or indemnity against Tenant which may have heretofore arisen or may hereafter arise in connection with any guaranty or pledge or grant of any lien or security interest made in connection with the Sublease. Guarantor hereby acknowledges that the waiver contained in the preceding sentence (the "***Subrogation Waiver***") is given as an inducement to Landlord to enter into the Sublease and, in consideration of Landlord's willingness to enter into the Sublease, Guarantor agrees not to amend or modify in any way the Subrogation Waiver without Landlord's prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed. Nothing herein contained is intended or shall be construed to give to Guarantor any rights of subrogation or right to participate in any way in Landlord's right, title or interest in the Sublease, notwithstanding any payments made by Guarantor to or toward any payments due from Guarantor under this Guaranty, all such rights of subrogation and participation being hereby expressly waived and released.

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Guarantor hereby expressly waives (a) notice of acceptance of this Guaranty; (b) presentment and demand for payment of any of the Liabilities of Tenant; (c) protest and notice of dishonor or default to Guarantor or to any other party with respect to any of the Liabilities of Tenant; (d) all other notice to which Guarantor might otherwise be entitled; (e) any law requiring Landlord to institute an action against any other party (including, without limitation, Tenant) in order to institute an action or obtain a judgment against Guarantor, as well as any suretyship laws, and (f) any demand for payment under this Guaranty; and Guarantor hereby expressly agrees that the validity of this Guaranty and the obligations of Guarantor hereunder shall not be terminated, affected or impaired by reason of the assertion or the failure to assert by Landlord against Tenant, or Tenant's successors and assigns, of any of the rights or remedies reserved to Landlord pursuant to provisions of the Sublease.

This is an absolute and unconditional guaranty of payment and not of collection and Guarantor further waives any right to require that any action be brought against Tenant or any other person or entity or to require that resort be had to any security or to any balance of any deposit account or credit on the books of Landlord in favor of Tenant or any other person or entity. Successive recoveries may be had hereunder. No invalidity, irregularity or unenforceability of all or any part of the Sublease shall affect, impair or be a defense to this Guaranty and this Guaranty shall constitute a primary obligation of Guarantor.

Each reference herein to Landlord shall be deemed to include its successors and assigns, in whose favor the provisions of this Guaranty shall also inure. Each reference herein to Guarantor shall be deemed to include the successors and assigns of Guarantor, all of whom shall be bound by the provisions of this Guaranty.

No delay on the part of Landlord in exercising any rights hereunder or failure to exercise the same shall operate as a waiver of such rights; no notice to or demand on Guarantor shall be deemed to be a waiver of the obligation of Guarantor or of the right of Landlord to take further action without notice or demand as provided herein; nor in any event shall any modification or waiver of the provisions of this Guaranty nor any termination hereof be effective unless in writing signed by Landlord, nor shall any waiver be applicable except in the specific instance for which given.

This Guaranty shall continue to be effective or be reinstated, as the case may be, if any payment of Guarantor on account of the Liabilities of Tenant must be returned by Landlord upon the insolvency, bankruptcy or reorganization of Tenant, Guarantor, or otherwise, as though such payment had not been made.

This Guaranty is, and shall be deemed to be, a contract entered into under and pursuant to the laws of the State of New York and shall be in all respects governed, construed, applied and enforced in accordance with the laws of the State of New York; and no defense given or allowed by the laws of any other state or country shall be interposed in any action or proceeding hereon unless such defense is also given or allowed by the laws of the State of New York. In any action or proceeding arising out of this Guaranty, Guarantor agrees to submit to personal jurisdiction in the State of New York. Guarantor agrees to pay all costs and expenses, including, without limitation, reasonable attorneys' fees, which are incurred by Landlord in the enforcement of this Guaranty.

This Guaranty may be executed in one or more counterparts, each of which counterparts shall be an original. All of Landlord's rights and remedies under the Sublease or under this Guaranty are intended to be distinct, separate and cumulative and no such right and remedy therein or herein mentioned is intended to be in exclusion of or a waiver of any of the others.

As a further inducement to Landlord to accept the Sublease and in consideration thereof Landlord and Guarantor covenant and agree that in any action or proceeding brought on, under or by virtue of this Guaranty, Landlord and the Guarantor shall and do hereby waive trial by jury.

Unless otherwise agreed in writing by Landlord, this Guaranty shall not be affected by any assignment of the Sublease by Tenant.

[SIGNATURES ON NEXT PAGE]

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**IN WITNESS WHEREOF**, Guarantor has executed this Guaranty as of the 12th day of January, 2023.

**GUARANTOR:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

LI-CYCLE HOLDINGS CORP.

Address for Notice:

207 Queen's Quay West, Suite 590

Toronto, Ontario M5J 1A7

Canada

Attn: General Counsel

By:&nbsp;&nbsp;&nbsp;&nbsp;_________________________________&nbsp;&nbsp;&nbsp;&nbsp;

Name:&nbsp;&nbsp;&nbsp;&nbsp;

Title:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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EXHIBIT E

Subordination, Non-Disturbance and Attornment Agreement

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<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>

**SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT**

by and among

PIKE CONDUCTOR DEV 1, LLC, as Landlord

LI-CYCLE NORTH AMERICA HUB, INC.

,

as Tenant

and

**_____________________________________________.**, ****<br> as Mortgagee

______________________, 2023

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BLOCK:&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LOTS:&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COUNTY:&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ADDRESS:&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>

This instrument was prepared by, and after recording please return to:

[Firm Contact]

**SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT**

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THIS AGREEMENT (this "***Agreement***"), made this ______ day of ______________, 2023, by and among **PIKE CONDUCTOR DEV 1, LLC,** a Delaware limited liability company with its principal office located at 1010 Lee Road, Rochester, NY ("***Landlord***") and **LI-CYCLE NORTH AMERICA HUB, INC.,** a Delaware corporation having its principal office at 100 Latona Road, Suite 350, Rochester, New York 14652 ("***Tenant***"), ____________________________________________ (as defined below), having its address at ______________________________________ (together with its successors and/or assigns, "***Mortgagee***").

<u>WITNESSETH:</u> 

WHEREAS, Tenant and Landlord have entered into a certain Sublease Agreement dated

_____________________&nbsp;&nbsp;&nbsp;&nbsp;, as assigned, modified, supplemented or amended by the documents listed on <u>Exhibit A</u> hereto (collectively, the "***Sublease***") covering premises located at 55 McLaughlin Road, Rochester, New York ("***Premises***"), as legally described on <u>Exhibit B</u> attached hereto, and as more <br>specifically set forth in the Sublease; and

WHEREAS, Mortgagee has made or has agreed to make a mortgage loan in the maximum aggregate principal amount of $____________________ (collectively the "***Loan***") to Landlord evidenced by promissory notes secured by, among other security, those certain Mortgages and Assignments of Subleases and Rents in favor of Mortgagee (hereinafter collectively, "***Mortgage***") on Landlord's property; and

WHEREAS, the Mortgage, and any other documents or instruments evidencing or securing the Loan are hereinafter collectively referred to as the "***Loan Documents***"; and

WHEREAS, Mortgagee has been requested by Tenant and by Landlord to enter into a non-disturbance agreement with Tenant.

NOW THEREFORE, in consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency of which are hereby acknowledged, Mortgagee and Tenant and Landlord hereby agree and covenant as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Sublease, all of the terms, covenants, provisions and conditions thereof, and any extensions, renewals, replacements or modifications thereof, and Tenant's interest in the Premises under the Sublease, are and shall at all times be subject, subordinate, and inferior in all respects to the lien, terms, covenants, provisions and conditions of the Mortgage and to the lien, terms, covenants, provisions and conditions of all renewals, modifications and extensions thereof, insofar as the Mortgage affects real or personal property owned by Landlord of which the Premises is a part, subject to the terms and conditions set forth in this Agreement. Notwithstanding the foregoing, Mortgagee consents to the removal by Tenant of its trade fixtures, equipment, machinery, and inventory on the Premises in accordance with the terms of the Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Notwithstanding such subordination, so long as the Sublease is in full force and effect and Tenant is not in default (beyond any applicable cure period) in the payment of fixed rent as set forth in the Sublease, or in the performance of any of the terms, covenants or conditions of the Sublease or this Agreement on Tenant's part to be performed, Tenant's possession of the Premises and Tenant's rights and privileges under the Sublease, or any extensions or renewals thereof, shall not be diminished or interfered with by Mortgagee, and Tenant's occupancy of the Premises shall not be disturbed by Mortgagee for any reason whatsoever during the term of the Sublease or any such extension or renewal thereof, except as would be expressly permitted for Landlord to do so pursuant to the Sublease.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. In addition, notwithstanding such subordination, so long as the Sublease is in full force and effect and Tenant is not in default (beyond any applicable cure period) in the payment of rent or additional rent, or in the performance of any of the terms, covenants or conditions of the Sublease or this Agreement on Tenant's part to be performed, Mortgagee will not join Tenant as a party defendant, unless required by law, in any foreclosure action or other proceeding for the purpose of terminating Tenant's interest and estate under the Sublease or for any other purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. If the interests of Landlord in the Premises shall be transferred to and owned by Mortgagee by reason of foreclosure or other proceedings brought by it, or by deed in lieu of foreclosure, or if Mortgagee takes possession of the Premises pursuant to any provisions of the Loan Documents, then: (i) Mortgagee and Tenant shall be directly bound to each other under all the terms, covenants and conditions of the Sublease for the balance of the term thereof and for any extensions or renewals thereof which may be exercised by Tenant, with the same force and effect as if Mortgagee were the Landlord under the Sublease; and (ii) Tenant does hereby attorn to Mortgagee as its landlord, said attornment to be effective and self-operative (without the execution of any further instruments), immediately upon Mortgagee succeeding to the interests of the Landlord under the Sublease; provided, however, regarding items (i) and (ii) above, that Tenant shall have received written notice from Mortgagee that it has succeeded to the interests of the Landlord under the Sublease. The respective rights and obligations of Tenant and Mortgagee upon such attornment, to the extent of the then-remaining balance of the term of the Sublease and any such extensions and renewals, shall be and are the same as now set forth from and after Mortgagee's succession to the interests of the Landlord under the Sublease; provided, however, that Mortgagee shall not be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)liable for any act or omission of any prior landlord (including Landlord), except to the extent such act or omission continues during the period that such Mortgagee shall have succeeded to the interest of the Landlord and taken possession of the Premises; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)subject to any defenses which Tenant might have against any prior landlord (including Landlord) prior to the date that Mortgagee shall have succeeded to the interest of the Landlord and taken possession of the Premises; or bound by any fixed rent which Tenant might have paid for more than the current month and one (1) month in advance, if any. Notwithstanding the foregoing, Mortgagee shall be subject to Tenant's defense in the event that the condition causing the defense continues during the period that Mortgagee shall have succeeded to the interest of the Landlord and taken possession of the Premises; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)bound by any security deposit which Tenant may have paid to any prior landlord (including Landlord), except to the extent that such security deposit has been delivered to the Mortgagee; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)bound by any amendment or modification or waiver of any provision of the Sublease made without the consent of Mortgagee which would: (i) extend and/or reduce the lease term and/or grant any additional options to renew or extend; (ii) reduce any rents payable or otherwise changing the rent formula such that it would result in a reduced rent being payable; (iii) materially change the square footage of the Premises, including without limitation, materially increasing and/or reducing such square footage and/or otherwise change the configuration of the Premises; (iv) increase any of Landlord's obligations or liabilities under the Sublease; (v) decrease any of Landlord's rights, remedies or privileges under the Sublease; (vi) decrease Tenant's obligations under the Sublease; and/or (vii) increase Tenant's rights, remedies and privileges under the Sublease. Said consent shall be deemed given if a response by Mortgagee is not received within thirty (30) days of Landlord's request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Tenant shall not be under any obligation to pay rent to Mortgagee until the Tenant shall have received written notice from Mortgagee that Mortgagee has succeeded to the interests of Landlord under the Sublease or that Mortgagee has exercised its rights under the Loan Documents, and directing such payments be made to Mortgagee.

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Landlord by its execution of this Agreement hereby consents to such direct payments made by Tenant to Mortgagee and hereby releases and discharges Tenant of, and from all liability to Landlord on account of any such payments. Upon receipt of such notice, Tenant shall make future payments (and promptly pay all arrears duly payable to Landlord, if any, subject to any and all applicable rights to notice and cure periods) due under the Sublease to Mortgagee until notified otherwise in writing in accordance with the terms of the Sublease and Tenant shall not be liable to Landlord to account for such payments.

&nbsp;&nbsp;&nbsp;&nbsp;6. (a) &nbsp;&nbsp;&nbsp;&nbsp;Tenant shall notify Mortgagee in writing at the address set forth herein of the occurrence of any default or event of default by Landlord under the Sublease which would give Tenant the right to cancel or terminate the Sublease; and Tenant will grant to Mortgagee such time granted to the Landlord by the Sublease in which to cure Landlord's default, provided, however, that Mortgagee shall give Tenant written notice of Mortgagee's intent to cure Landlord's default within fifteen (15) days of receipt of Tenant's notice of Landlord's default. Tenant agrees that it will not terminate or cancel the Sublease on account of such default until such notice to Mortgagee has been given, and Mortgagee has had the opportunity to cure any such default pursuant to the terms of this Section. Should Mortgagee fail to so notify Tenant of Mortgagee's intent to cure Landlord's default within said fifteen (15) days, then Tenant shall have all available rights and remedies (including the right to cure Landlord's default under the Sublease), at law![image_6.jpg](image_6.jpg) and/or in equity. It is expressly understood and agreed that the above shall not be deemed to create any obligation of Mortgagee to cure any such default or defaults, and nothing herein shall impair any and all of the Mortgagee's rights and remedies at law and/or in equity, including the right to challenge any such default by Landlord claimed by Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;Mortgagee shall provide written notice to Tenant with any notice to Landlord of Landlord's default under the Loan Documents at the same time that Mortgagee shall serve such notice of default on Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. This Agreement may not be modified or amended, except by a writing by all parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Whenever in this Agreement it is provided that notice be given to or served upon any of the parties, each such notice or demand shall be in writing, and any law or statute to the contrary notwithstanding, shall not be effective for any purpose unless the same shall be given or served as follows: If given or served by the Mortgagee, by mailing the same to the Tenant and Landlord by registered or certified mail, return receipt requested, or by overnight courier service provided a receipt is required, at the addresses listed on Page 1 of this Agreement, or at such other addresses as the Tenant and Landlord may from time to time designate by notice given to the Mortgagee; and if given or served by the Tenant, by mailing the same to the Mortgagee and Landlord by registered or certified mail, return receipt requested, or by overnight courier service provided a receipt is required, addressed to the Mortgagee and Landlord at the addresses listed on Page 1 of this Agreement, or at such other addresses as the Mortgagee and Landlord may from time to time designate by written notice given to Tenant; and if given or served by Landlord, by mailing the same to Tenant and Mortgagee by registered or certified mail, return receipt requested, or by overnight courier service provided a receipt is required, addressed to the Tenant and Mortgagee at the addresses listed on Page 1 of this Agreement, or such other addresses as the Tenant and Mortgagee may from time to time designate by written notice given to Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Anything herein or in the Sublease to the contrary notwithstanding, in the event that Mortgagee shall acquire title to the Premises, or shall otherwise succeed to the interest of the Landlord in the Premises, or shall otherwise become liable for any obligations of Landlord under the Sublease, Mortgagee shall have no obligations, nor incur any liability, beyond Mortgagee's then interest, if any, in the Premises and the Sublease, and Tenant shall look exclusively to such interest of Mortgagee, if any, in the Premises and the Sublease, for the payment and discharge of any obligations imposed upon Mortgagee hereunder or under the Sublease. Except for damages suffered by Tenant due to the gross negligence or willful misconduct of Mortgagee, Tenant agrees that with respect to any money

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judgment which may be obtained or secured by Tenant against Mortgagee, Tenant shall look solely to the estate or interest owned by Mortgagee in the Premises, and Tenant will not collect or attempt to collect any such judgment out of any other assets of Mortgagee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Notwithstanding anything herein to the contrary, the terms of this Agreement shall not be enforceable against Tenant until Tenant has received a fully executed copy of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. This Agreement shall be binding upon and inure to the benefit of the parties hereto, and their successors and permitted assigns. In addition, this Agreement shall be binding upon any successor to Mortgagee's interest as Landlord of the Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. This document may be executed in several counterparts, each of which will be deemed an original, and all of such counterparts together will constitute one and the same instrument. Each signature on this document may be executed via an inked or "wet" signature or via an electronic signature such as facsimile, electronic mail, cloud-based server, e-signature technology or other electronic means ("Electronic Means"), and the executed signature, witness (if any) and acknowledgement (if any) may be delivered by Electronic Means and such electronic signatures will be deemed originals and have the same validity, legal effect as an original inked or "wet" signature.

***[Remainder of Page Intentionally Left Blank; Signature Pages Follow]***

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BARCLAY DAMON DRAFT

12/26/2022 10:13 AM&nbsp;&nbsp;&nbsp;&nbsp;

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IN WITNESS WHEREOF, the parties hereto have hereunto caused this Agreement to be duly executed as of the day and year first above written.

LANDLORD:

**___________________________,** 

a ___________________________

By:_____________________________

Name: __________________________

Title: ___________________________

STATE OF NEW YORK&nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;) ss.:

COUNTY OF __________________)

On the ______ day of ___________________, in the year 2022, before me, the undersigned, personally appeared ____________________________________________ personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the person\* upon behalf of which the individual(s) acted, executed the instrument.

Witness my hand and seal on __________________.

_______________________________________ (Notary's signature)

_______________________________________ (Notary's printed name)

_______________________________________ (Title)

Qualified in __________________ County

My Commission Expires:<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>

\* '<u>Person' Defined</u>: "For the purposes of this section, the term 'person' means any corporation, joint stock company, estate, general partnership (including any registered limited liability partnership or foreign liability partnership), limited liability company (including a professional service limited liability company), joint venture, limited partnership, natural person, attorney in fact, real estate investment trust, business trust or other trust, custodian, nominee or any other individual or entity in its own or any representative capacity."

<u>TENANT</u>:

**_________________________________,**

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a ________________________________

By:____________________________

Name:_________________________

Title:___________________________

STATE OF NEW YORK&nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;) ss.:

COUNTY OF __________________)

On the ______ day of ___________________, in the year 2023, before me, the undersigned, personally appeared ____________________________________________ personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the person\* upon behalf of which the individual(s) acted, executed the instrument.

Witness my hand and seal on __________________.

_______________________________________ (Notary's signature)

_______________________________________ (Notary's printed name)

_______________________________________ (Title)

Qualified in __________________ County

My Commission Expires:<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>

\* '<u>Person' Defined</u>: "For the purposes of this section, the term 'person' means any corporation, joint stock company, estate, general partnership (including any registered limited liability partnership or foreign liability partnership), limited liability company (including a professional service limited liability company), joint venture, limited partnership, natural person, attorney in fact, real estate investment trust, business trust or other trust, custodian, nominee or any other individual or entity in its own or any representative capacity."

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<u>MORTGAGEE</u>:

**_______________________________**

By:____________________________

Name: _________________________

Title: __________________________

STATE OF NEW YORK&nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;) ss.:

COUNTY OF __________________)

On the ______ day of ___________________, in the year 2023, before me, the undersigned, personally appeared ____________________________________________ personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the person\* upon behalf of which the individual(s) acted, executed the instrument.

Witness my hand and seal on __________________.

_______________________________________ (Notary's signature)

_______________________________________ (Notary's printed name)

_______________________________________ (Title)

Qualified in __________________ County

My Commission Expires:<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>

\* '<u>Person' Defined</u>: "For the purposes of this section, the term 'person' means any corporation, joint stock company, estate, general partnership (including any registered limited liability partnership or foreign liability partnership), limited liability company (including a professional service limited liability company), joint venture, limited partnership, natural person, attorney in fact, real estate investment trust, business trust or other trust, custodian, nominee or any other individual or entity in its own or any representative capacity."

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**<u>EXHIBIT A TO SNDA</u>**

<u>Document</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Signed</u>

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**<u>EXHIBIT B TO SNDA</u>**

(See Legal Description Attached)

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EXHIBIT F

Tenant Estoppel

[TENANT LETTERHEAD]

[Date]

_________________________

_________________________

_________________________

Attention: ______________________

Email:

&nbsp;&nbsp;&nbsp;&nbsp;Re:&nbsp;&nbsp;&nbsp;&nbsp;Sublease Agreement dated ______________________ (as amended, restated, supplemented or otherwise modified from time to time as described in Paragraph 1 below, the "**<u>Sublease</u>**") by and between ______________________________, as landlord, together with its successors and assigns, "**<u>Landlord</u>**"), and ________________________________________, as tenant ("**<u>Tenant</u>**"), for the "Premises" defined in the Sublease (the "**<u>Leased Premises</u>**"), located at 55 McLaughlin Road, Rochester, New York (the "**<u>Property</u>**").

Ladies and Gentlemen:

The undersigned, as Tenant under the Sublease, hereby certifies to __________________________, for itself and as agent for one or more mortgage lenders to be granted a lien on the Property by Landlord, and its successors and/or assigns ("**<u>you</u>**") as of the date hereof as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Sublease is in full force and effect. The Sublease has not been amended, modified or supplemented, except as follows: __________________________________________. There are no other agreements or understandings, whether written or oral, between Tenant and Landlord with respect to the Sublease, the Leased Premises or the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Tenant has accepted possession of and occupies the entire Leased Premises under the Sublease. The term of the Sublease commenced on , , and expires on , , subject to the following renewal options:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.The monthly fixed, minimum or basic rent under the Sublease is $ and has been paid through the month of , 20__. All additional rent, Tenant's proportionate share of real estate taxes and insurance, common area maintenance charges and all other sums or charges due and payable under the Sublease by Tenant have been paid in full and no such additional rents or other sums or charges have been paid for more than one (1) month in advance of the due date thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.There is no security deposit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.To the best of Tenant's knowledge, both Tenant and Landlord have performed all of their respective obligations under the Sublease and Tenant has no knowledge of any event which with the giving of notice, the passage of time or both would constitute a default by Landlord or Tenant under the Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.Tenant has no claim against Landlord and no offset or defense to enforcement of any of the terms of the Sublease, except as follows: <u>____________________________________</u>. Tenant has not advanced any funds for or on behalf of Landlord for which Tenant has a right to deduct from or offset against future rent payments, except as follows: <u>____________________________________</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.All improvements required to be completed by Landlord have been completed and Tenant is not entitled to any tenant improvement or similar funds under the Sublease, except as follows: <u>____________________________________</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.Landlord has not agreed to grant Tenant any free rent or rent rebates or adjustments and Landlord has not agreed to reimburse Tenant for or to pay Tenant's rent obligations under any other lease, except as described as follows: _________________________________________________.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.Tenant has no right to terminate the Sublease other than as a result of a material casualty or condemnation that results in the Landlord being unable to substantially restore the Leased Premises within a reasonable period of time, except as described as follows: ______________________________________________.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. To the best of Tenant's knowledge to date, no violation of any environmental law or regulation has occurred or currently exists with respect to the Leased Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.Tenant has not assigned the Sublease and has not subleased the Leased Premises or any part thereof, except as pursuant to those certain subleases described as follows: _________________________________________________ (collectively, "**<u>Subleases</u>**"). To the best of Tenant's knowledge, both Tenant and the applicable sublessee under each Sublease have performed all of their respective obligations under such Sublease and Tenant has no knowledge of any event which with the giving of notice, the passage of time or both would constitute a default by Tenant or the sublessee under such Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.To the best of Tenant's knowledge to date, there are no unpaid or outstanding claims, bills or invoices for any labor performed upon or materials furnished to either the Tenant or the Leased Premises for which any lien or encumbrance including, without limitation, materialmen, suppliers and mechanic's liens, have been asserted or may be asserted against either the Tenant or the Leased Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.There are no existing, pending or threatened lawsuits affecting the Leased Premises or the Sublease or between Tenant and Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.Tenant has no right or option pursuant to the Sublease or otherwise to purchase all or any part of the Leased Premises or the Property. Tenant does not have any right or option for additional space in the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.No voluntary actions or, to Tenant's best knowledge, involuntary actions are pending against Tenant under the bankruptcy or insolvency laws of the United States or any state thereof.

The undersigned individual hereby certifies that he or she is duly authorized to sign, acknowledge and deliver this letter on behalf of Tenant. All capitalized terms not otherwise defined herein shall have the meanings provided in the Sublease.

[REMAINDER OF THIS PAGE HAVE BEEN LEFT INTENTIONALLY BLANK]

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Tenant acknowledges that you will rely on this letter in making a loan or otherwise extending credit to Landlord. The information contained in this letter shall be for your benefit and for the benefit of your successors and assigns.

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| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| [Tenant Name] | [Tenant Name] |
| By: |  |
|  | Name: |
|  | Title: |

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**EXHIBIT G**

Memorandum of Sublease

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**MEMORANDUM OF SUBLEASE**

**MEMORANDUM OF SUBLEASE**

**BETWEEN**

PIKE CONDUCTOR DEV 1, LLC**,** 

**as LANDLORD,**

**and**

**LI-CYCLE NORTH AMERICA HUB, INC.,**

**as TENANT**

RECORD AND RETURN TO:

COUNTY:&nbsp;&nbsp;&nbsp;&nbsp;________________________________

SECTION:&nbsp;&nbsp;&nbsp;&nbsp;________________________________

BLOCK:&nbsp;&nbsp;&nbsp;&nbsp;________________________________

LOT:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;________________________________

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**MEMORANDUM OF SUBLEASE**

On the ____ day of ___________________, 2023, a Sublease was entered into by and between **PIKE CONDUCTOR DEV 1, LLC,** a Delaware limited liability company with its principal office located at 1010 Lee Road, Rochester, NY (herein called "***Lessor***") and **LI-CYCLE NORTH AMERICA HUB, INC,** a Delaware corporation having its principal office at 100 Latona Road, Suite 350, Rochester, New York 14652 (herein called "***Lessee***") (the "***Sublease***"). This Memorandum of the Sublease is presented for recording.

1.&nbsp;&nbsp;&nbsp;&nbsp;The name of the present Landlord is PIKE CONDUCTOR DEV 1, LLC, a Delaware limited liability company of having an address of 1010 Lee Road, Rochester, New York 14606. The name of the present Tenant is LI-CYCLE NORTH AMERICA HUB, INC., a Delaware corporation, having an address at 100 Latona Road, Suite 350, Rochester, New York 14652.

2.&nbsp;&nbsp;&nbsp;&nbsp;A description of the demised premises as set forth in the Sublease is annexed hereto as <u>Exhibit A</u> (the "***Premises***").

3.&nbsp;&nbsp;&nbsp;&nbsp;The Effective Date of the Sublease is <u>__________</u> , 2023<u>.</u>

4.&nbsp;&nbsp;&nbsp;&nbsp;The Original Term (as defined in the Sublease) expires on August 31, 2048, with four (4) five (5) year Renewal Terms (as defined in the Sublease) and one (1) subsequent Renewal Term of three (3) years. The Sublease is in full force and effect.

5.&nbsp;&nbsp;&nbsp;&nbsp;The Landlord requires the prior written consent of the Tenant for the creation, granting, conveyance, extension, or termination of any easements, licenses, or rights-of-way to the Premises.

This instrument is merely a Memorandum of the Sublease, and is subject to all of the terms, conditions and provisions thereof. In the event of any inconsistency between the terms of the Sublease and this instrument, the terms of the Sublease shall prevail as between the parties hereto.

\*\*BALANCE OF PAGE INTENTIONALLY LEFT BLANK\*\*

\*\*\* SIGNATURE PAGE TO FOLLOW\*\*

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&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties have hereunto set their hands and seals this ___ day of _______, 2023.

**<u>LANDLORD:</u>**

PIKE CONDUCTOR DEV 1, LLC

By:&nbsp;&nbsp;&nbsp;&nbsp;_______________________________________

Name:&nbsp;&nbsp;&nbsp;&nbsp;_______________________________________

Title:&nbsp;&nbsp;&nbsp;&nbsp;_______________________________________

STATE OF NEW YORK&nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;) ss.:

COUNTY OF __________________)

On the ______ day of ___________________, in the year 2023, before me, the undersigned, personally appeared ____________________________________________ personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the person\* upon behalf of which the individual(s) acted, executed the instrument.

Witness my hand and seal on __________________.

_______________________________________ (Notary's signature)

_______________________________________ (Notary's printed name)

_______________________________________ (Title)

Qualified in __________________ County

My Commission Expires:<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>

\* '<u>Person' Defined</u>: "For the purposes of this section, the term 'person' means any corporation, joint stock company, estate, general partnership (including any registered limited liability partnership or foreign liability partnership), limited liability company (including a professional service limited liability company), joint venture, limited partnership, natural person, attorney in fact, real estate investment trust, business trust or other trust, custodian, nominee or any other individual or entity in its own or any representative capacity."

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**<u>TENANT:</u>**

LI-CYCLE NORTH AMERICA HUB, INC.

By:&nbsp;&nbsp;&nbsp;&nbsp;_______________________________________

Name:&nbsp;&nbsp;&nbsp;&nbsp;Christopher J. Biederman

Title:&nbsp;&nbsp;&nbsp;&nbsp;CTO

STATE OF NEW YORK&nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;) ss.:

COUNTY OF __________________)

On the ______ day of ___________________, in the year 2023, before me, the undersigned, personally appeared ____________________________________________ personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the person\* upon behalf of which the individual(s) acted, executed the instrument.

Witness my hand and seal on __________________.

_______________________________________ (Notary's signature)

_______________________________________ (Notary's printed name)

_______________________________________ (Title)

Qualified in __________________ County

My Commission Expires:<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>

\* '<u>Person' Defined</u>: "For the purposes of this section, the term 'person' means any corporation, joint stock company, estate, general partnership (including any registered limited liability partnership or foreign liability partnership), limited liability company (including a professional service limited liability company), joint venture, limited partnership, natural person, attorney in fact, real estate investment trust, business trust or other trust, custodian, nominee or any other individual or entity in its own or any representative capacity."

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**EXHIBIT H**

Permitted Encumbrances

1. &nbsp;&nbsp;&nbsp;&nbsp;Easement granted by Eastman Kodak Company to the Town of Greece and Rochester Gas & Electric Corporation dated October 28, 1968 and recorded November 22, 1968 in Liber 3947 of Deeds at page 534.

2. &nbsp;&nbsp;&nbsp;&nbsp;Easement granted by Eastman Kodak Company to Rochester Telephone Corporation dated October 31, 1972 and recorded January 12, 1973 in Liber 4387 of Deeds at page 212.

3. &nbsp;&nbsp;&nbsp;&nbsp;Easement by Eastman Kodak Company to the County of Monroe dated May 12, 1977 and recorded May 23, 1977 in Liber 5221 of Deeds at page 231.

4. &nbsp;&nbsp;&nbsp;&nbsp;Easement granted by Eastman Kodak Company to the County of Monroe dated August 30, 1999 and recorded August 31, 1999 in Liber 9208 of Deeds at page 364.

5. &nbsp;&nbsp;&nbsp;&nbsp;Easement Agreement between Eastman Kodak Company and Bldg. 502 LLC dated December 21, 2010 and recorded December 22, 2010 in Liber 10954 of Deeds at page 418.

6. &nbsp;&nbsp;&nbsp;&nbsp;Easement granted by Willis H. Hondorf & Elizabeth Hondorf to Rochester Gas & Electric Corporation dated June 1, 1925 and recorded June 8, 1925 in Liber 1325 of Deeds at page 246.

7. &nbsp;&nbsp;&nbsp;&nbsp;Environmental Easement granted by Eastman Kodak Company to The People of the State of New York dated October 31, 2012 and recorded February 21, 2013 in Liber 11223 of Deeds at page 109.

8. &nbsp;&nbsp;&nbsp;&nbsp;Easement Agreement between Eastman Kodak Company and Ridgeway Properties I, LLC dated March 12, 2013 and recorded March 13, 2013 as in Liber 11229 of Deeds at page 472.

9.&nbsp;&nbsp;&nbsp;&nbsp;Assignment of Easement Rights by Eastman Kodak Company to the New York State Department of Environmental Conservation dated May 13, 2014 and recorded November 10, 2014 in Liber 11466 of Deeds at page 320.

11. Access Easement Agreement by and between Ridgeway Properties I, LLC and Li-Cycle North America Hub, Inc. dated March 18, 2022 and recorded March 21, 2022 in Liber 12638 of Deeds at page 634.

12. Access Easement Agreement by and between Ridgeway Properties I, LLC and Li-Cycle North America Hub, Inc. dated June 9, 2022 and recorded June 13, 2022 in Liber 12675 of Deeds at page 375.

13. Water Service Easement Agreement dated December 22, 2022 and recorded December 22, 2022 in Liber 12762 of Deeds at page 541.

14. Storm Water Easement Agreement dated December 22, 2022 and recorded December 22, 2022 in Liber 12762 of Deeds at page 524.

15. Sanitary Sewer Easement Agreement dated December 22, 2022 and recorded December 22, 2022 in Liber 12762 of Deeds at page 508.

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16. Access Easement Agreement – Kodak Park Road, dated December 22, 2022 and recorded December 22, 2022 in Liber 12762 of Deeds at page 532.

17. Access Easement Agreement, Ridgeway Ave./McLaughlin Rd., dated December 22, 2022 and recorded December 22, 2022 in Liber 12762 of Deeds at page 516.

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**EXHIBIT I**

**Sublease Commencement Agreement**

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**SUBLEASE COMMENCEMENT AGREEMENT**

&nbsp;&nbsp;&nbsp;&nbsp;This Sublease Commencement Agreement (this "***Agreement***") is entered into between **PIKE CONDUCTOR DEV 1, LLC** ("***Landlord***"), and Li-Cycle North America Hub, Inc. ("***Tenant***"), to be effective as of the latest date set forth beneath the signature blocks below (the "***Effective Date***").

RECITALS

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Landlord and Tenant entered into a Sublease Agreement dated as of ________, for certain real property (the "***Premises***") located at 55 McLaughlin Road, Rochester, New York (the "***Sublease***"); and

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, it is the desire and intent of Landlord and Tenant to clearly define the terms of said Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, it is agreed by and between Landlord and Tenant that:

&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;The Commencement Date of the Sublease is __________________

&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;The Original Term of the Sublease commenced on __________________, and shall terminate at 11:59 p.m. on __________________.

&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;The Sublease provides for four (4) Renewal Terms of five (5) years and one (1) subsequent Renewal Term of three (3) years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;Tenant has the right to exercise each option by providing Landlord with written notice of Tenant's election to renew no later than one hundred eighty (180) days prior to the expiration of the Original Term or prior Renewal Term, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;The Original Term (as defined in the Sublease) expires on August 31, 2048, with four (4) five (5) year Renewal Terms (as defined in the Sublease) and one (1) subsequent Renewal Term of three (3) years. The Sublease is in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;The closing on the Initial Financing has occurred and the "Essential Terms" thereof are attached hereto as Schedule 2(a). The Sublease is hereby modified by substituting the attached Schedule 2(a) for Schedule 2(a) currently attached to the Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;Based upon the Essential Terms of the Initial Financing, Landlord and Tenant agree that the Base Rents payable under the Sublease shall be as set forth on the attached Schedule 5(a). The Sublease is hereby modified by substituting the attached Schedule 5(a) for Schedule 5(a) currently attached to the Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;The Sublease is now in full force and effect and all terms and conditions of the Sublease are hereby ratified and confirmed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;Capitalized terms not otherwise defined in this Agreement will have the respective meanings ascribed to them in the Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;Landlord and Tenant agree that this Agreement will not be recorded in any public records including the real estate records of the county where the Premises are located.

[Signature page to follow]

&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, Landlord and Tenant have executed this Agreement as of the dates set forth below to be effective as of the latest date set forth beneath the signature blocks below (previously defined herein as the "Effective Date").

**<u>LANDLORD:</u>**

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PIKE CONDUCTOR DEV 1, LLC

By:&nbsp;&nbsp;&nbsp;&nbsp;_______________________________________

Name:&nbsp;&nbsp;&nbsp;&nbsp;_______________________________________

Title:&nbsp;&nbsp;&nbsp;&nbsp;_______________________________________

Date:&nbsp;&nbsp;&nbsp;&nbsp;_______________________________________

**<u>TENANT:</u>**

LI-CYCLE NORTH AMERICA HUB, INC.

By:&nbsp;&nbsp;&nbsp;&nbsp;_______________________________________

Name:&nbsp;&nbsp;&nbsp;&nbsp;_______________________________________

Title:&nbsp;&nbsp;&nbsp;&nbsp;_______________________________________

&nbsp;&nbsp;&nbsp;&nbsp;

Date:&nbsp;&nbsp;&nbsp;&nbsp;_______________________________________

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**SCHEDULE 2(a)**

**(ANTICIPATED) INITIAL LOAN TERMS**

[XXX]

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**SCHEDULE 5(a)**

BASE **RENTS**

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| | | | |
|:---|:---|:---|:---|
| **Date** | **Assumed Interest Rate of Initial Loan** | **Annual Base Rent** | **Monthly Base Rent** |
| Effective Date - 8/31/2023 | [XXX] | $1.00 | N/A |
| 9/1/2023 – 8/31/2028 | [XXX] | $7326000 | $610500 |
| 9/1/2028 – 8/31/2033 | [XXX] | $7692300 | $641025 |
| 9/1/2033 – 8/31/2038 | [XXX] | $7692300 | $641025 |
| 9/1/2038 – 8/31/2043 | [XXX] | $7692300 | $641025 |
| 9/1/2043 – 8/31/2048 | [XXX] | $7692300 | $641025 |

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**<u>SCHEDULE 6(a)</u>**

**INITIAL ESTIMATED OPERATING EXPENSES** 

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| | |
|:---|:---|
| **OPERATING EXPENSES** | **ESTIMATED ANNUAL BUDGET** |
| Snow Plowing | $100000 |
| Lawn and Landscape Maintenance | $75000 |
| Preventative Maintenance – Roof | $25000 |
| Miscellaneous | $7500 |
| Insurance | $100000 |
| Subtotal | $307500 |
| Management Fee (5%) | $15375 |
| Real Estate Taxes | $122500 |
| **TOTAL** | $445375 |

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**<u>EXHIBIT J</u>**

**<u>Easements</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Easement for connection to Monroe County Pure Waters sanitary sewer (and potentially Monroe County Water Authority's water line) along the road to the south of the Property's south boundary to McLaughlin Road.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Easement to connect to RED Rochester utilities along Kodak Park Road off the west side of the Property

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Easement for stormwater drainage from the Property onto Landlord's adjoining land into Landlord's Detention Ponds, including an agreement by Landlord to maintain all stormwater ponds, ditches and conveyances at their current capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Easement for connection to industrial sewer along the road to the south of the Property's south boundary to McLaughlin Road.

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&nbsp;&nbsp;&nbsp;&nbsp;**<u>GUARANTY</u>**

In consideration of, and as an inducement to **PIKE CONDUCTOR DEV 1, LLC,** a Delaware limited liability company ("***Landlord***") to enter into that certain Sublease Agreement of even date herewith (the "***Sublease***") with **LI-CYCLE NORTH AMERICA HUB, INC.**, a Delaware corporation ("***Tenant***") for certain Premises located at 55 McLaughlin Road, Rochester, New York, and in further consideration of the premises and other good and valuable consideration, the receipt of which is hereby acknowledged, the undersigned **LI-CYCLE HOLDINGS CORP.**, an Ontario, Canada business corporation ("***Guarantor***"), hereby guarantees, absolutely and unconditionally, to Landlord the full and prompt performance of all terms, covenants, conditions and agreements to be performed and observed by Tenant under the Sublease and any and all amendments, modifications and other instruments relating thereto, whether now or hereafter existing, and the full and prompt payment of all damages, costs and expenses which shall at any time be recoverable by Landlord from Tenant by virtue of the Sublease and any amendments, modifications and other instruments relating thereto (hereinafter called "***Liabilities of Tenant***"); and Guarantor hereby covenants and agrees to and with Landlord, its successors and assigns, that if a Default (as defined in the Sublease) in the payment of Rent (as defined in the Sublease), or any other sums or charges payable by Tenant under the Sublease, or in the performance by Tenant of any of the terms, covenants, provisions or conditions contained in the Sublease, Guarantor will forthwith pay to Landlord, its successors and assigns, the Rent and other sums and charges and will forthwith faithfully perform and fulfill all of such terms, covenants, conditions and provisions of the Sublease and will forthwith faithfully pay to Landlord all damages that may arise in consequence of any Default by Tenant.

Guarantor agrees that, with or without notice or demand, Guarantor will reimburse Landlord, to the extent that such reimbursement is not made by Tenant, for all expenses (including reasonable attorneys' fees and disbursements) incurred by Landlord in connection with any Default by Tenant under the Sublease or the default by Guarantor under this Guaranty.

All moneys available to Tenant for application in payment or reduction of the Liabilities of Tenant may be applied by Landlord, in such manner and in such amounts and at such time or times as Landlord may see fit, to the payment or reduction of such of the Liabilities of Tenant as Landlord may elect.

This Guaranty shall be a continuing guaranty, and the liability of the Guarantor hereunder shall in no way be affected, modified or diminished by reason that any security for the Liabilities of Tenant is exchanged, surrendered or released or the Sublease or any other obligation of Tenant is changed, altered, renewed, extended, continued, surrendered, compromised, waived or released in whole or in part, or that any default with respect thereto is waived, whether or not notice thereof is given to Guarantor, and it is understood and agreed that Landlord may fail to set off and may release, in whole or in part, any credit on Landlord's books in favor of Tenant, and may extend further credit in any manner whatsoever to Tenant, and generally deal with Tenant or any such security as Landlord may see fit; and Guarantor shall remain bound under this Guaranty notwithstanding any such exchange, surrender, release, change, alteration, renewal, extension, continuance, comprise, waiver, inaction, extension of further credit or other dealing.

Notwithstanding any provision to the contrary contained herein, Guarantor hereby unconditionally and irrevocably waives (a) any and all rights of subrogation (whether arising under contract, 11 U.S.C. § 509 or otherwise) to the claims, whether existing now or arising hereafter, Landlord may have against Tenant, and (b) any and all rights of reimbursement, contribution or indemnity against Tenant which may have heretofore arisen or may hereafter arise in connection with any guaranty or pledge or grant of any lien or security interest made in connection with the Sublease. Guarantor hereby acknowledges that the waiver contained in the preceding sentence (the "***Subrogation Waiver***") is given as an inducement to Landlord to enter into the Sublease and, in consideration of Landlord's willingness to enter into the Sublease, Guarantor agrees not to amend or modify in any way the Subrogation Waiver without Landlord's prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed. Nothing herein contained is intended or shall be construed to give to Guarantor any rights of subrogation or right to participate in any way in Landlord's right, title or interest in the Sublease, notwithstanding any payments made by Guarantor to or toward any payments due from Guarantor under this Guaranty, all such rights of subrogation and participation being hereby expressly waived and released.

Guarantor hereby expressly waives (a) notice of acceptance of this Guaranty; (b) presentment and demand for payment of any of the Liabilities of Tenant; (c) protest and notice of dishonor or default to Guarantor or to any other party with respect to any of the Liabilities of Tenant; (d) all other notice to which Guarantor might otherwise be entitled; (e) any law requiring Landlord to institute an action against any other party (including, without limitation, Tenant) in order to institute an action or obtain a judgment against Guarantor, as well as any suretyship laws, and (f)

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any demand for payment under this Guaranty; and Guarantor hereby expressly agrees that the validity of this Guaranty and the obligations of Guarantor hereunder shall not be terminated, affected or impaired by reason of the assertion or the failure to assert by Landlord against Tenant, or Tenant's successors and assigns, of any of the rights or remedies reserved to Landlord pursuant to provisions of the Sublease.

This is an absolute and unconditional guaranty of payment and not of collection and Guarantor further waives any right to require that any action be brought against Tenant or any other person or entity or to require that resort be had to any security or to any balance of any deposit account or credit on the books of Landlord in favor of Tenant or any other person or entity. Successive recoveries may be had hereunder. No invalidity, irregularity or unenforceability of all or any part of the Sublease shall affect, impair or be a defense to this Guaranty and this Guaranty shall constitute a primary obligation of Guarantor.

Each reference herein to Landlord shall be deemed to include its successors and assigns, in whose favor the provisions of this Guaranty shall also inure. Each reference herein to Guarantor shall be deemed to include the successors and assigns of Guarantor, all of whom shall be bound by the provisions of this Guaranty.

No delay on the part of Landlord in exercising any rights hereunder or failure to exercise the same shall operate as a waiver of such rights; no notice to or demand on Guarantor shall be deemed to be a waiver of the obligation of Guarantor or of the right of Landlord to take further action without notice or demand as provided herein; nor in any event shall any modification or waiver of the provisions of this Guaranty nor any termination hereof be effective unless in writing signed by Landlord, nor shall any waiver be applicable except in the specific instance for which given.

This Guaranty shall continue to be effective or be reinstated, as the case may be, if any payment of Guarantor on account of the Liabilities of Tenant must be returned by Landlord upon the insolvency, bankruptcy or reorganization of Tenant, Guarantor, or otherwise, as though such payment had not been made.

This Guaranty is, and shall be deemed to be, a contract entered into under and pursuant to the laws of the State of New York and shall be in all respects governed, construed, applied and enforced in accordance with the laws of the State of New York; and no defense given or allowed by the laws of any other state or country shall be interposed in any action or proceeding hereon unless such defense is also given or allowed by the laws of the State of New York. In any action or proceeding arising out of this Guaranty, Guarantor agrees to submit to personal jurisdiction in the State of New York. Guarantor agrees to pay all costs and expenses, including, without limitation, reasonable attorneys' fees, which are incurred by Landlord in the enforcement of this Guaranty.

This Guaranty may be executed in one or more counterparts, each of which counterparts shall be an original. All of Landlord's rights and remedies under the Sublease or under this Guaranty are intended to be distinct, separate and cumulative and no such right and remedy therein or herein mentioned is intended to be in exclusion of or a waiver of any of the others.

As a further inducement to Landlord to accept the Sublease and in consideration thereof Landlord and Guarantor covenant and agree that in any action or proceeding brought on, under or by virtue of this Guaranty, Landlord and the Guarantor shall and do hereby waive trial by jury.

Unless otherwise agreed in writing by Landlord, this Guaranty shall not be affected by any assignment of the Sublease by Tenant.

[SIGNATURES ON NEXT PAGE]

------

**IN WITNESS WHEREOF**, Guarantor has executed this Guaranty as of the 12th day of January, 2023.

**GUARANTOR:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

LI-CYCLE HOLDINGS CORP.

Address for Notice:

207 Queen's Quay West, Suite 590

Toronto, Ontario M5J 1A7

Canada

Attn: General Counsel

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ Debbie Simpson</u>______________________________&nbsp;&nbsp;&nbsp;&nbsp;

Name:&nbsp;&nbsp;&nbsp;&nbsp;Debbie Simpson

Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer

## Exhibit 8.1

**Exhibit 8.1**

**Subsidiaries of Li-Cycle Holdings Corp.**

---

| | |
|:---|:---|
| **Legal Name of Subsidiary** | **Jurisdiction of Organization** |
| Li-Cycle Corp. | Ontario, Canada |
| Li-Cycle Europe AG | Switzerland |
| Li-Cycle APAC Pte. Ltd. | Singapore |
| Li-Cycle Americas Corp. | Ontario, Canada |
| Li-Cycle U.S. Holdings Inc. | Delaware, U.S.A. |
| Li-Cycle Inc. | Delaware, U.S.A. |
| Li-Cycle North America Hub, Inc. | Delaware, U.S.A. |
| Li-Cycle Norway AS | Norway |
| Li-Cycle Germany GmbH | Germany |

---

## Exhibit 12.1

Exhibit 12.1

**CERTIFICATION PURSUANT TO RULE 13a-14(a) and 15d-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934 AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Ajay Kochhar, certify that:

1. I have reviewed this Annual Report on Form 20-F of Li-Cycle Holdings Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The company's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 6, 2023

&nbsp;&nbsp;&nbsp;&nbsp;

------

---

| |
|:---|
| /s/ Ajay Kochhar |
| Ajay Kochhar |
| Chief Executive Officer |

---

&nbsp;&nbsp;&nbsp;&nbsp;2

## Exhibit 12.2

Exhibit 12.2

**CERTIFICATION PURSUANT TO RULE 13a-14(a) and 15d-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934 AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Deborah K. Simpson, certify that:

1. I have reviewed this Annual Report on Form 20-F of Li-Cycle Holdings Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The company's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 6, 2023

&nbsp;&nbsp;&nbsp;&nbsp;

------

---

| |
|:---|
| /s/ Deborah K. Simpson |
| Deborah K. Simpson |
| Chief Financial Officer |

---

&nbsp;&nbsp;&nbsp;&nbsp;2

## Exhibit 13.1

Exhibit 13.1

**CERTIFICATION**

**PURSUANT TO 18 U.S.C. SECTION 1350**

In connection with the annual report on Form 20-F of Li-Cycle Holdings Corp. (the "Company") for the year ended October 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of our knowledge:

(1)&nbsp;&nbsp;&nbsp;&nbsp;The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) &nbsp;&nbsp;&nbsp;&nbsp;The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 6, 2023

---

| | |
|:---|:---|
| By: | /s/ Ajay Kochhar |
|  | Name:&nbsp;&nbsp;&nbsp;&nbsp;Ajay Kochhar |
|  | Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer (principal executive officer) |

---

## Exhibit 13.2

Exhibit 13.2

**CERTIFICATION**

**PURSUANT TO 18 U.S.C. SECTION 1350**

In connection with the annual report on Form 20-F of Li-Cycle Holdings Corp. (the "Company") for the year ended October 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of our knowledge:

(1)&nbsp;&nbsp;&nbsp;&nbsp;The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) &nbsp;&nbsp;&nbsp;&nbsp;The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 6, 2023

---

| | |
|:---|:---|
| By: | /s/ Deborah K. Simpson |
|  | Name:&nbsp;&nbsp;&nbsp;&nbsp;Deborah K. Simpson |
|  | Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer (principal financial officer) |

---

## Exhibit 15.1

Exhibit 15.1

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the incorporation by reference in Registration Statement No. 333-261568 on Form S-8 and in Registration Statement No. 333-267419 on Form F-3 of our report dated January 31, 2022, relating to the financial statements of Li-Cycle Holdings Corp. appearing in this Annual Report on Form 20-F for the year ended October 31, 2022.

/s/ Deloitte LLP

Chartered Professional Accountants

Licensed Public Accountants

Toronto, Canada

February 6, 2023

## Exhibit 15.2

Exhibit 15.2

---

| | |
|:---|:---|
| ![kpmglogoa.jpg](kpmglogoa.jpg) | KPMG LLP<br>100 New Park Place, Suite 1400<br>Vaughan, ON L4K 0J3<br>Tel 905-265 5900<br>Fax 905-265 6390<br>www.kpmg.ca |
|  | KPMG LLP<br>100 New Park Place, Suite 1400<br>Vaughan, ON L4K 0J3<br>Tel 905-265 5900<br>Fax 905-265 6390<br>www.kpmg.ca |

---

**Consent of Independent Registered Public Accounting Firm**

The Board of Directors

Li-Cycle Holdings Corp.

We consent to the use of:

• our report dated February 6, 2023 on the consolidated financial statements of Li-Cycle Holdings Corp. (the "Entity") which comprise the consolidated statement of financial position as at October 31, 2022, the related consolidated statements of comprehensive loss, changes in equity and cash flows for the year ended October 31, 2022, and the related notes (collectively the "consolidated financial statements"), and

• our report dated February 6, 2023 on the effectiveness of the Entity's internal control over financial reporting as of October 31, 2022

each of which is included in the Annual Report on Form 20-F of the Entity for the fiscal year ended October 31, 2022.

We also consent to the incorporation by reference of such reports in the Registration Statement (No. 333-261568) on Form S-8 and in Registration Statement (No. 333-267419) on Form F-3 and related prospectus of the Entity.

/s/ KPMG LLP

February 6, 2023

Vaughan, Canada

KPMG LLP, an Ontario limited liability partnership and member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. KPMG Canada provides services to KPMG LLP.<br>Document classification: KPMG Confidential<br>

## Exhibit 99.1

?xml version="1.0" ? licy-20221031_d2

---

| |
|:---|
| Consolidated financial statements of |
| Li-Cycle Holdings Corp. |
| Years ended October 31, 2022, 2021 and 2020 |

---

------

---

| | |
|:---|:---|
| CONSOLIDATED FINANCIAL STATEMENTS | Page |
| Reports of Independent Registered Public Accounting Firms | 3 |
| [Consolidated statements of](#ifdf0bd964d944c529b94d7496339b370_10)[loss and](#ifdf0bd964d944c529b94d7496339b370_10)[c](#ifdf0bd964d944c529b94d7496339b370_10)omprehensive loss | 10 |
| [Consolidated statements of financial position](#ifdf0bd964d944c529b94d7496339b370_7) | 11 |
| Consolidated statements of changes in equity | 12 |
| [C](#ifdf0bd964d944c529b94d7496339b370_16)[onsolidated](#ifdf0bd964d944c529b94d7496339b370_16)[statements of cash flows](#ifdf0bd964d944c529b94d7496339b370_16) | 13 |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |  |
| Note 1 - Corporate information | 14 |
| Note 2 - Basis of preparation | 15 |
| Note 3 - Revenue - product sales and recycling services | 24 |
| Note 4 - Other income (expense) | 24 |
| Note 5 - Accounts receivable | 25 |
| Note 6 - Prepayment and deposits | 26 |
| Note 7 - Inventories | 26 |
| Note 8 - Plant and equipment | 26 |
| Note 9 - Right-of-use assets | 27 |
| Note 10 - Related party transactions | 28 |
| Note 11 - Accounts payable and accrued liabilities | 29 |
| Note 12 - Lease liabilities | 29 |
| Note 13 - Convertible debt | 30 |
| Note 14 - Warrants | 33 |
| Note 15 - Share capital and share-based compensation | 34 |
| Note 16 - Non-controlling interest | 36 |
| Note 17 - Financial instruments and financial risk factors | 36 |
| Note 18 - Commitments and contingencies | 39 |
| Note 19 - Loss per share | 39 |
| Note 20 - Segment reporting | 40 |
| Note 21 - Government funding | 40 |
| Note 22 - Income taxes | 41 |
| Note 23 - Notes to the consolidated statement of cash flows | 42 |
| Note 24 - Subsequent events | 42 |

---

------

---

| | |
|:---|:---|
| ![licy-20221031_g8.jpg](licy-20221031_g8.jpg) | KPMG LLP<br>100 New Park Place, Suite 1400<br>Vaughan, ON L4K 0J3<br>Tel 905-265 5900<br>Fax 905-265 6390<br>www.kpmg.ca |
|  | KPMG LLP<br>100 New Park Place, Suite 1400<br>Vaughan, ON L4K 0J3<br>Tel 905-265 5900<br>Fax 905-265 6390<br>www.kpmg.ca |

---

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and Board of Directors

Li-Cycle Holdings Corp.:

*Opinion on the Consolidated Financial Statements*

We have audited the accompanying consolidated statement of financial position of Li-Cycle Holdings Corp. and subsidiaries (the Company) as of October 31, 2022, the related consolidated statements of loss and comprehensive loss, changes in equity, and cash flows for the year then ended, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of October 31, 2022, and the results of its operations and its cash flows for the year then ended, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of October 31, 2022, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 6, 2023 expressed an adverse opinion on the effectiveness of the Company's internal control over financial reporting.

*Basis for Opinion*

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.

*Critical Audit Matter*

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter

&nbsp;&nbsp;&nbsp;&nbsp;3

------

below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

*Evaluation of revenue recognized from the sale of Black Mass & Equivalents*

As discussed in Note 3 to the consolidated financial statements, product revenue from Black Mass & Equivalents and shredded metal, and the related trade accounts receivables, are measured at initial recognition using provisional prices for the constituent metals on initial recognition and any unsettled sales are remeasured at the end of each reporting period using the market prices of the constituent metals. As discussed in note 2.12 to the consolidated financial statements, the final consideration for Black Mass & Equivalents and shredded metal sales is based on the mathematical product of: (i) market prices of certain constituent metals at the date of settlement, (ii) product weight, and (iii) final assay results. As discussed in Note 3 to the consolidated financial statements, the Company reported product sales revenue of $12.1 million, a portion of which related to Black Mass & Equivalents.

We identified the evaluation of revenue recognized from the sale of Black Mass & Equivalents as a critical audit matter. The evaluation of revenue recognized from the sale of Black Mass & Equivalents required a high degree of audit effort and judgment due to the complexity of the revenue recognition process, as a result of the nature of the contract with the customers and the key inputs used for determining revenue from the sale of Black Mass & Equivalents.

The following are the primary procedures we performed to address this critical audit matter. We assessed the appropriateness of the Company's revenue recognition policy by reading the contracts with the Company's customers. We confirmed the pricing terms used for determining the amount of product revenue from the sale of Black Mass & Equivalents with the Company's customers. We tested market prices of certain constituent metals for a sample of revenue transactions by comparing the market prices per the Company's sales invoices to publicly available market price information for the constituent metals. We tested product weight for a sample of revenue transactions by comparing product weight per sales invoices to shipping documents. We tested assay results for a sample of revenue transactions by comparing assay results per sales invoices to confirmation received directly from management's expert.

/s/ KPMG LLP

We have served as the Company's auditor since 2022.

Vaughan, Canada

February 6, 2023

&nbsp;&nbsp;&nbsp;&nbsp;4

------

---

| | |
|:---|:---|
| ![licy-20221031_g8.jpg](licy-20221031_g8.jpg) | KPMG LLP<br>100 New Park Place, Suite 1400<br>Vaughan, ON L4K 0J3<br>Tel 905-265 5900<br>Fax 905-265 6390<br>www.kpmg.ca |
|  | KPMG LLP<br>100 New Park Place, Suite 1400<br>Vaughan, ON L4K 0J3<br>Tel 905-265 5900<br>Fax 905-265 6390<br>www.kpmg.ca |

---

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and Board of Directors

Li-Cycle Holdings Corp.:

*Opinion on Internal Control Over Financial Reporting* 

We have audited Li-Cycle Holdings Corp.'s and subsidiaries' (the Company) internal control over financial reporting as of October 31, 2022, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (the "COSO 2013 Framework"). In our opinion, because of the effect of the material weaknesses, described below, on the achievement of the objectives of the control criteria, the Company has not maintained effective internal control over financial reporting as of October 31, 2022, based on criteria established in the COSO 2013 Framework.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statement of financial position of the Company as of October 31, 2022, the related consolidated statements of loss and comprehensive loss, changes in equity, and cash flows for the year then ended, and the related notes (collectively, the consolidated financial statements), and our report dated February 6, 2023 expressed an unqualified opinion on those consolidated financial statements.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis. Material weaknesses related to the following have been identified and included in management's assessment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an ineffective control environment, resulting from an insufficient number of experienced personnel with the appropriate technical training to allow for a detailed review of transactions that would identify errors in a timely manner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an ineffective risk assessment process to identify all relevant risks of material misstatement and to evaluate the implications of relevant risks on its internal control over financial reporting, resulting from the insufficient number of experienced personnel described above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an ineffective information and communication process to ensure the relevance, timeliness and quality of information used in control activities, resulting from: (i) insufficient communication of internal control information, including objectives and responsibilities; and (ii) ineffective general IT controls and controls over information from a service organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an ineffective monitoring process, resulting from the evaluation and communication of internal control deficiencies not being performed in a timely manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ineffective control activities related to the design, implementation and operation of process level controls and financial statement close controls, as a consequence of the above, which had a pervasive impact on the Company's internal control over financial reporting.

The material weaknesses were considered in determining the nature, timing, and extent of audit tests applied in our audit of the consolidated financial statements, and this report does not affect our report on those consolidated financial statements.

*Basis for Opinion* 

&nbsp;&nbsp;&nbsp;&nbsp;5

------

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying "Internal Control Over Financial Reporting" found in Management's Discussion and Analysis. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

*Definition and Limitations of Internal Control Over Financial Reporting* 

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ KPMG LLP

Vaughan, Canada

February 6, 2023

&nbsp;&nbsp;&nbsp;&nbsp;6

------

**Report of Independent Registered Public Accounting Firm**

To the shareholders and the Board of Directors of Li-Cycle Holdings Corp.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated statement of financial position of Li-Cycle Holdings Corp. and subsidiaries (the "Company") as of October 31, 2021, the related consolidated statements of loss and comprehensive loss, changes in equity, and cash flows, for each of the two years in the period ended October 31, 2021, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of October 31, 2021, and its financial performance and its cash flows for each of the two years in the period ended October 31, 2021, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte LLP

Chartered Professional Accountants

Licensed Public Accountants

Toronto, Canada

January 31, 2022

We began serving as the Company's auditor in 2019. In 2022 we became the predecessor auditor.

&nbsp;&nbsp;&nbsp;&nbsp;7

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Li-Cycle Holdings Corp.** | **Li-Cycle Holdings Corp.** | **Li-Cycle Holdings Corp.** | **Li-Cycle Holdings Corp.** | **Li-Cycle Holdings Corp.** |
| **Consolidated statements of loss and comprehensive loss** | **Consolidated statements of loss and comprehensive loss** | **Consolidated statements of loss and comprehensive loss** | **Consolidated statements of loss and comprehensive loss** | |
| $ millions except for per share amounts, for the years ended October 31, | Notes | **2022** | 2021 | 2020 |
| **Revenue** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Product sales | 3 | $**12.1** | $6.9 | $0.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recycling services | 3 | **1.3** | 0.4 | 0.2 |
|  |  | **13.4** | 7.3 | 0.8 |
| **Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee salaries and benefits |  | **37.2** | 12.7 | 2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 15 | **17.5** | 4.0 | 0.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Office, administrative and travel |  | **16.9** | 3.1 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional fees |  | **16.5** | 7.7 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Raw materials and supplies |  | **15.6** | 3.4 | 0.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 89 | **10.1** | 2.9 | 1.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Plant facilities |  | **3.7** | 1.0 | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketing |  | **2.4** | 1.0 | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Freight and shipping |  | **2.0** | 1.0 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 21 | **1.7** | 2.7 | 0.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in finished goods inventory |  | **1.0** | (0.3) |  |
| Operating expenses |  | **124.6** | 39.2 | 10.0 |
| **Loss from operations** |  | **(111.2)** | (31.9) | (9.2) |
| **Other income (expense)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 4 | **7.0** | 0.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense and other costs | 4 | **(17.0)** | (3.8) | (0.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gains (losses) on financial instruments | 13, 14 | **67.5** | (38.3) | (0.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Excess of fair value over consideration transferred | 1 | **—** | (152.7) |  |
|  |  | **57.5** | (194.7) | (0.2) |
| **Net loss before taxes** |  | **(53.7)** | (226.6) | (9.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax | 22 | **—** |  |  |
| **Net loss** |  | $**(53.7)** | $(226.6) | $(9.4) |
| Net loss attributable to |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shareholders of Li-Cycle Holdings Corp. |  | $**(53.6)** | $(226.6) | $(9.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interest | 16 | **(0.1)** |  |  |
| **Other comprehensive loss** |  |  |  |  |
| Foreign currency translation |  | **—** |  | (0.2) |
| **Net loss and comprehensive loss** |  | $**(53.7)** | $(226.6) | $(9.6) |
| **Loss per common share - basic and diluted** | 19 | $**(0.31)** | $(2.06) | $(0.11) |

---

The accompanying notes are an integral part of the consolidated financial statements.

------

---

| | | | |
|:---|:---|:---|:---|
| **Li-Cycle Holdings Corp.** | | | |
| **[Consolidated statement](#ifdf0bd964d944c529b94d7496339b370_7)[s](#ifdf0bd964d944c529b94d7496339b370_7)[of financial position](#ifdf0bd964d944c529b94d7496339b370_7)** | **[Consolidated statement](#ifdf0bd964d944c529b94d7496339b370_7)[s](#ifdf0bd964d944c529b94d7496339b370_7)[of financial position](#ifdf0bd964d944c529b94d7496339b370_7)** | **[Consolidated statement](#ifdf0bd964d944c529b94d7496339b370_7)[s](#ifdf0bd964d944c529b94d7496339b370_7)[of financial position](#ifdf0bd964d944c529b94d7496339b370_7)** | **[Consolidated statement](#ifdf0bd964d944c529b94d7496339b370_7)[s](#ifdf0bd964d944c529b94d7496339b370_7)[of financial position](#ifdf0bd964d944c529b94d7496339b370_7)** |
|  |  | **October 31,** | October 31, |
| $ millions, as at | Notes | **2022** | 2021 |
| **Assets** |  |  |  |
| Current assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 23 | $**578.3** | $596.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 5 | **1.5** | 4.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other receivables | 5 | **7.8** | 1.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepayment and deposits | 6 | **85.8** | 8.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 7 | **7.5** | 1.3 |
|  |  | **680.9** | 611.8 |
| Non-current assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Plant and equipment | 8 | **147.7** | 26.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use assets | 9 | **50.1** | 27.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | 6 | **3.6** |  |
|  |  | **201.4** | 53.4 |
| **Total assets** |  | $**882.3** | $665.2 |
| **Liabilities** |  |  |  |
| Current liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 11 | $**47.5** | $18.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 12 | **5.2** | 2.9 |
|  |  | **52.7** | 21.6 |
| Non-current liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 12 | **46.6** | 26.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Convertible debt | 13 | **288.5** | 100.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warrants | 14 | **—** | 82.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restoration provisions |  | **0.4** | 0.4 |
|  |  | **335.5** | 209.9 |
| **Total liabilities** |  | **388.2** | 231.5 |
| **Equity** |  |  |  |
| Share capital | 15 | **771.8** | 672.1 |
| Other reserves | 15 | **17.1** | 3.0 |
| Accumulated deficit |  | **(294.7)** | (241.1) |
| Accumulated other comprehensive loss |  | **(0.3)** | (0.3) |
| Equity attributable to the Shareholders of Li-Cycle Holdings Corp. |  | **493.9** | 433.7 |
| Non-controlling interest | 16 | **0.2** |  |
| **Total equity** |  | **494.1** | 433.7 |
| **Total liabilities and equity** |  | $**882.3** | $665.2 |

---

Commitments and contingencies (Note 18)

Subsequent events (Note 24)

The accompanying notes are an integral part of the consolidated financial statements.

------

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Li-Cycle Holdings Corp.** | **Li-Cycle Holdings Corp.** | **Li-Cycle Holdings Corp.** | | | | | | | |
| **Consolidated statements of changes in equity** | **Consolidated statements of changes in equity** | **Consolidated statements of changes in equity** | **Consolidated statements of changes in equity** | **Consolidated statements of changes in equity** | **Consolidated statements of changes in equity** | **Consolidated statements of changes in equity** | **Consolidated statements of changes in equity** | **Consolidated statements of changes in equity** | **Consolidated statements of changes in equity** |
| $ millions, except for number of shares | Notes | Number of common shares | Share capital | Contributed surplus | Accumulated deficit | Accumulated other comprehensive loss | Equity attributable to the Shareholders of Li-Cycle Holdings | Non-controlling interest | Total |
| **Balance, October 31, 2019** |  | 76.5 | $8.5 | $0.1 | $(5.1) | $(0.1) | $3.4 | $— | $3.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock option expense |  |  |  | 0.2 |  |  | 0.2 |  | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares issued for cash |  | 6.4 | 6.5 |  |  |  | 6.5 |  | 6.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares issuable for non-cash costs |  |  |  | 0.5 |  |  | 0.5 |  | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Conversion of convertible debt |  | 0.5 | 0.5 |  |  |  | 0.5 |  | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Comprehensive loss |  |  |  |  | (9.4) | (0.2) | (9.6) |  | (9.6) |
| **Balance, October 31, 2020** |  | 83.4 | 15.5 | 0.8 | (14.5) | (0.3) | 1.5 |  | 1.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Series C Class A shares issued for cash | 15 | 11.2 | 21.6 |  |  |  | 21.6 |  | 21.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares issued for non-cash costs | 15 | 0.5 | 0.5 | (0.5) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercise of stock options | 15 | 2.1 | 0.9 | (0.7) |  |  | 0.2 |  | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of shares through Business Combination | 15 | 65.7 | 629.7 |  |  |  | 629.7 |  | 629.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Settlement of RSUs | 15 | 0.4 | 3.9 |  |  |  | 3.9 |  | 3.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock option expense | 15 |  |  | 2.7 |  |  | 2.7 |  | 2.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;RSUs expense | 15 |  |  | 0.7 |  |  | 0.7 |  | 0.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Comprehensive loss |  |  |  |  | (226.6) |  | (226.6) |  | (226.6) |
| **Balance, October 31, 2021** |  | 163.3 | 672.1 | 3.0 | (241.1) | (0.3) | 433.7 |  | 433.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock option expense | 15 | **—** | **—** | **6.6** | **—** | **—** | **6.6** | **—** | **6.6** |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercise of stock options | 15 | **1.4** | **0.4** | **(0.4)** | **—** | **—** | **—** | **—** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares issued for cash | 15 | **5.3** | **49.7** | **—** | **—** | **—** | **49.7** | **—** | **49.7** |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercise of warrants | 15 | **5.7** | **46.0** | **—** | **—** | **—** | **46.0** | **—** | **46.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;RSUs expense | 15 | **—** | **—** | **11.5** | **—** | **—** | **11.5** | **—** | **11.5** |
| &nbsp;&nbsp;&nbsp;&nbsp;Settlement of RSUs | 15 | **0.3** | **3.6** | **(3.6)** | **—** | **—** | **—** | **—** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interest in subsidiary | 16 | **—** | **—** | **—** | **—** | **—** | **—** | **0.3** | **0.3** |
| &nbsp;&nbsp;&nbsp;&nbsp;Comprehensive loss |  | **—** | **—** | **—** | **(53.6)** | **—** | **(53.6)** | **(0.1)** | **(53.7)** |
| **Balance, October 31, 2022** |  | **176.0** | $**771.8** | $**17.1** | $**(294.7)** | $**(0.3)** | $**493.9** | $**0.2** | $**494.1** |

---

The accompanying notes are an integral part of the consolidated financial statements.

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Li-Cycle Holdings Corp.** | | | | |
| **Consolidated statements of cash flows** | **Consolidated statements of cash flows** | **Consolidated statements of cash flows** | **Consolidated statements of cash flows** | |
| $ millions, for the years ended October 31, | Notes | **2022** | 2021 | 2020 |
| **Operating activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss for the period |  | $**(53.7)** | $(226.6) | $(9.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Items not affecting cash: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 15 | **17.5** | 4.0 | 0.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess of fair value over consideration transferred | 1 | **—** | 152.7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 8, 9 | **10.1** | 2.9 | 1.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of government grants |  | **—** |  | (2.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of assets |  | **(0.2)** |  | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange (gain) loss on translation |  | **(1.4)** | 0.7 | (0.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value (gain) loss on financial instruments | 13, 14 | **(67.5)** | 38.3 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based professional fees |  | **—** |  | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 4 | **17.4** | 3.0 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | 4 | **(7.0)** | (0.1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest paid |  | **(2.4)** | (1.9) | (0.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest received |  | **5.4** | 0.1 |  |
|  |  | **(81.8)** | (26.9) | (9.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in non-cash working capital items |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 5 | **2.6** | (3.5) | (0.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivables |  | **(5.2)** | (0.7) | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepayments and deposits |  | **(3.6)** | (4.8) | (0.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 7 | **(6.2)** | (1.0) | (0.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities |  | **21.6** | 12.3 | 3.2 |
| **Cash used by operating activities** |  | **(72.6)** | (24.6) | (7.4) |
| **Investing activity** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of plant and equipment | 8 | **(112.3)** | (18.2) | (5.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid equipment deposits | 6 | **(76.4)** | (3.2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid construction charges | 6 | **(1.4)** |  |  |
| **Cash used by investing activities** |  | **(190.1)** | (21.4) | (5.1) |
| **Financing activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from private share issuance, net of share issuance costs |  | **—** | 21.6 | 6.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from public share issuance, net of share issuance costs | 1, 15 | **49.7** | 525.3 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options |  | **—** | 0.2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from exercise of warrants | 14 | **0.1** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from convertible debt | 13 | **198.7** | 98.4 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from loan payable |  | **—** | 10.1 | 2.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from government grants |  | **—** |  | 1.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital contribution from the holders of non-controlling interest | 16 | **0.3** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of lease principal | 12 | **(4.7)** | (0.9) | (0.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of loan payable |  | **—** | (12.5) |  |
| **Cash provided by financing activities** |  | **244.1** | 642.2 | 9.4 |
| Net change in cash and cash equivalents |  | **(18.6)** | 596.2 | (3.1) |
| Cash and cash equivalents, beginning of year |  | **596.9** | 0.7 | 3.8 |
| **Cash and cash equivalents, end of year** |  | $**578.3** | $596.9 | $0.7 |
| **Non-cash investing activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of plant and equipment in payables and accruals | 8 | $**7.2** | $2.1 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Non cash purchase of plant and equipment |  | **—** | 2.1 |  |
| **Non-cash financing activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity issued for non-cash costs |  | **—** |  | 0.9 |

---

The accompanying notes are an integral part of the consolidated financial statements.

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

**1. Corporate information**

&nbsp;&nbsp;&nbsp;&nbsp;i.Company overview

Li-Cycle's core business model is to build, own and operate recycling plants tailored to regional needs. Li-Cycle's Spoke & Hub Technologies™ provide an environmentally-friendly resource recovery solution that addresses the growing global lithium-ion battery recycling challenges supporting the global transition toward electrification.

Li-Cycle Holdings Corp. and its subsidiaries, collectively ("Li-Cycle" or the "Company") started their business as Li-Cycle Corp. Li-Cycle Corp. was incorporated in Ontario, Canada under the *Business Corporations Act* (Ontario) on November 18, 2016. The Company's registered address is 207 Queens Quay West - Suite 590, Toronto, Ontario.

On March 28, 2019, Li-Cycle Corp. incorporated a wholly-owned subsidiary, Li-Cycle Inc., under the General Corporation Law of the State of Delaware. This subsidiary operates the Company's U.S. Spoke facilities.

On September 2, 2020, Li-Cycle Corp. incorporated a wholly-owned subsidiary, Li-Cycle North America Hub, Inc., under the General Corporation Law of the State of Delaware. This subsidiary is developing the Company's first commercial Hub, in Rochester, New York.

On August 10, 2021, in accordance with the plan of arrangement to reorganize Li-Cycle Corp., the Company finalized a business combination (the "Business Combination") with Peridot Acquisition Corp., and the combined company was renamed Li-Cycle Holdings Corp. On closing, the common shares of Li-Cycle Holdings Corp. were listed on the New York Stock Exchange and commenced trading under the symbol "NYSE:LICY".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Business combination

On February 12, 2021, Li-Cycle Corp. incorporated a 100% owned subsidiary in Ontario, Canada, Li-Cycle Holdings Corp., under the *Business Corporations Act* (Ontario).

On February 16, 2021, Li-Cycle Corp. entered into a definitive business combination agreement with Peridot Acquisition Corp. (NYSE: PDAC) and Li-Cycle Holdings Corp.

On August 10, 2021, in accordance with the plan of arrangement to reorganize Li-Cycle Corp., the Company finalized the business combination with Peridot Acquisition Corp. (NYSE: PDAC), and the combined company was renamed Li-Cycle Holdings Corp.

As part of this transaction, a total of 3,377,626 Class A shares of Peridot Acquisition Corp. were redeemed by Peridot shareholders, resulting in a total redemption payment of approximately $33.8 million, while the remaining 26,622,374 of Class A shares were converted into common shares of the combined entity, Li-Cycle Holdings Corp. In addition, 7,500,000 Class B shares of Peridot Acquisition Corp were converted into 7,500,000 common shares of the combined entity, Li-Cycle Holdings Corp. upon closing.

Li-Cycle Corp.'s existing shareholders exchanged 2,552,450 fully diluted shares of Li-Cycle Corp. for the shares of the combined entity, Li-Cycle Holdings Corp., at an exchange ratio of approximately 1:39.91, as determined per the Plan of Arrangement, resulting in 97,508,181 shares of Li-Cycle Holdings Corp. and 4,242,707 stock options of Li-Cycle Holdings Corp. for the existing shareholders of Li-Cycle Corp.

31,549,000 shares of the combined entity, Li-Cycle Holdings Corp., were issued to new investors (the "PIPE Investors") at US$10 per share for a total of US$315.5 million under a Private Investment in Public Equity.

On closing, the common shares and warrants of Li-Cycle Holdings Corp. were listed on the New York Stock Exchange and traded under the symbols "LICY" and "LICY.WS", respectively.

Li-Cycle Corp. was identified as the acquirer for accounting purposes. As Peridot Acquisition Corp. did not meet the definition of a business as defined in IFRS 3 - Business Combinations ("IFRS 3"), the acquisition was not within the scope of IFRS 3 and was accounted for as a share-based payment transaction in accordance with IFRS 2 – Share-based Payment.

These consolidated financial statements represent the continuance of Li-Cycle Corp. and reflect the identifiable assets acquired and the liabilities assumed of Peridot Acquisition Corp. at fair value. Under IFRS 2, the transaction was measured at the fair value of the common shares, escrowed shares and warrants deemed to have been issued by Li-Cycle Corp., in order for the

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

ownership interest in the combined entity to be the same as if the transaction had taken the legal form of Li-Cycle Corp. acquiring 100% of Peridot Acquisition Corp. Any difference between the fair value of the common shares, escrowed shares and warrants deemed to have been issued by Li-Cycle Corp. and the fair value of Peridot Acquisition Corp.'s identifiable net assets acquired and liabilities assumed represents an excess of fair value over consideration transferred. The fair value of the warrants assumed in the transaction was determined based on the market closing price of $2.10 per warrant resulting in total fair value of $48.3 million.

As a result of this reverse asset acquisition, an excess of fair value over consideration transferred of $152.7 million was recorded to reflect the difference between the estimated fair value of the common shares, escrowed shares and warrants deemed issued to the shareholders of Peridot Acquisition Corp. and the net fair value of the assets of Peridot Acquisition Corp. acquired. Li-Cycle and Peridot incurred transaction-related costs of $27.0 million and $29.6 million, respectively. Li-Cycle's transaction-related costs, such as commissions, professional fees and regulatory fees, were directly attributable to common shares issuances and were deducted from the proceeds of the offering.

The details of the purchase price allocation of the identifiable assets acquired and liabilities assumed as follows:

---

| | |
|:---|:---|
| Fair value of consideration transferred: |  |
| Common shares | $656.7 |
| **Total fair value of consideration transferred** | **656.7** |
| Fair value of assets acquired and liabilities assumed: |  |
| Cash and cash equivalents | 581.9 |
| Warrants | (48.3) |
| Other payables | (29.6) |
| **Total fair value of assets acquired and liabilities assumed** | **504.0** |
| **Excess of fair value of consideration transferred over fair value of assets acquired and liabilities assumed** | **152.7** |
| Gross proceeds | 581.9 |
| Transaction-related costs | (27.0) |
| Other payables acquired | (29.6) |
| **Net proceeds** | $**525.3** |

---

The fair value of the consideration transferred to acquire Peridot Acquisition Corp. and to issue shares to the PIPE Investors was $656.7 million calculated as 65,671,374 common shares at $10.00 per common share.

The fair value per common share was based on the fair value of Li-Cycle Corp. common shares.

As a result of the closing of this transaction, 163,179,555 common shares of the Company were issued and outstanding immediately after the closing.

**2.&nbsp;&nbsp;&nbsp;&nbsp;Basis of preparation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.1 Statement of compliance*

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

These consolidated financial statements were approved and authorized for issue by the Board of Directors on February 6, 2023.

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.2 Basis of measurement*

The consolidated financial statements have been prepared on a going concern basis, using historical cost basis, except for financial assets and liabilities that have been measured at amortized cost or fair value through profit and loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.3 Basis of consolidation*

These consolidated financial statements include the financial information of the Company and its subsidiaries. The Company's subsidiaries are entities controlled by the Company. Control exists when the Company has power over an investee, when the Company is exposed, or has rights, to variable returns from the investee and when the Company has the ability to affect those returns through its power over the investee. The subsidiaries are included in the consolidated financial results of the Company from the effective date of incorporation up to the effective date of disposition or loss of control. In assessing control, potential voting rights that are presently exercisable or convertible is taken into account. The accounting policies of subsidiaries are aligned with policies adopted by the Company.

The Company's principal subsidiaries and their geographic location as at October 31, 2022 are set forth in the table below:

---

| | | |
|:---|:---|:---|
| Company | Location | Ownership interest |
| Li-Cycle Corp. | Ontario, Canada | 100% |
| Li-Cycle Americas Corp. | Ontario, Canada | 100% |
| Li-Cycle U.S. Holdings Inc. | Delaware, U.S. | 100% |
| Li-Cycle Inc. | Delaware, U.S. | 100% |
| Li-Cycle North America Hub, Inc. | Delaware, U.S. | 100% |
| Li-Cycle Europe AG | Switzerland | 100% |
| Li-Cycle APAC PTE. LTD. | Singapore | 100% |
| Li-Cycle Germany GmbH  | Germany | 100% |
| Li-Cycle Norway AS | Norway | 67% |

---

Intercompany transactions, balances and unrealized gains/losses on transactions between the Company and its subsidiaries have been eliminated.

&nbsp;&nbsp;&nbsp;&nbsp;*2.4 Presentation currency* 

These consolidated financial statements are presented in U.S. dollars, which is the Company's functional currency. All figures are presented in millions of U.S. dollars unless otherwise specified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.5 Significant accounting estimates and critical judgments*

The preparation of the financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which affect the application of accounting policies and the reported amounts of assets, liabilities and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Significant accounting estimates include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.the determination of net realizable value of inventory;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.the determination of the useful life of plant and equipment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.the valuation and measurement of the convertible debt and the related conversion features; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.the valuation and measurement of right-of-use assets and lease liabilities.

Critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.the determination of transaction price used for revenue recognition;

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.the valuation of the fair value of consideration transferred in the Business Combination in prior year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.the assessment of impairment of non-financial assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.judgment in determining cash-generating units ("CGU") or CGU group for the purpose of impairment testing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.the determination of reportable segments.

&nbsp;&nbsp;&nbsp;&nbsp;*2.6 Newly adopted IFRS Standards*

The IASB has published Interest Rate Benchmark Reform - Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) with amendments that address issues that might affect financial reporting after the reform of an interest rate benchmark, including its replacement with alternative benchmark rates. The amendments are effective for annual reporting periods beginning on or after January 1, 2021. The Company has assessed the revised impact of the amendments and concluded that they have no impact on the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;*2.7 Comparative figures*

Certain of the comparative figures have been reclassified to conform to the financial statement presentation adopted in the current year.

 *2.8 Non-controlling interest*

Non-controlling interest is defined as equity in a subsidiary not attributable, directly or indirectly, to a parent where a parent controls one or more entities.

Changes in the Company's ownership interest in a subsidiary that do not result in the loss of control of the subsidiary are accounted for as equity transactions.

Non-controlling interest will be subsequently measured through profit/loss and will be attributed based on ownership interest and distributions/dividends to the non-controlling interest.

&nbsp;&nbsp;&nbsp;&nbsp;*2.9 Capitalization of borrowing costs*

Borrowing costs on funds from general borrowings used to finance the construction, production, or acquisition of a qualifying asset are capitalized until substantially all the activities necessary to prepare the qualifying asset for its intended use or sale have been completed. A qualifying asset is one that takes a substantial period of time to prepare the asset for its intended use. When money borrowed specifically to finance a project is invested to earn interest income, the income generated is also capitalized to reduce the total capitalized borrowing costs.

Interest is capitalized based on the weighted average interest rate applicable to the general borrowings outstanding during the period of construction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *2.10 Capitalization of internal costs*

Employee salaries and share-based compensation costs for employees that are directly attributable to bringing the Hub and Spoke assets to a condition and location necessary for the assets to be capable of operating in the manner intended by management are capitalized to assets under construction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *2.11 Segmented information*

The Company has determined that there is one operating and reportable segment based on qualitative and quantitative considerations. The accounting policies of the segments are measured in a manner consistent with that of the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *2.12 Revenue recognition*

The Company's principal activities generate revenues from the operation of lithium-ion battery recycling plants. The Company uses the following five step approach to revenue recognition:

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

The Company recognizes revenue from the following major sources:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.Sale of products which includes black mass and black mass equivalents (collectively, "Black Mass & Equivalents") and shredded metal

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.Services for recycling lithium-ion batteries which includes coordination of logistics and destruction of batteries

Revenue is measured based on the consideration to which the Company expects to be entitled under a contract with a customer. The Company recognizes revenue when it transfers control of a product or service to a customer. There are no significant financing components associated with the Company's payment terms.

For sale of products, revenue is recognized when control of the goods has transferred, typically when the goods have been transferred to the customer. A receivable is recognized by the Company when the goods are transferred to the customer as this represents the point in time at which the right to consideration becomes unconditional, as only the passage of time is required before payment is due. The Company estimates the amount of consideration to which it expects to be entitled under provisional pricing arrangements, which is based on the initial assay results and market prices of certain constituent metals on the date control is transferred to the customer. The final consideration for Black Mass & Equivalents and shredded metal sales is based on the mathematical product of: (i) market prices of certain constituent metals at the date of settlement, (ii) product weight, and (iii) final assay results (ratio of the constituent metals initially estimated by management and subsequently trued up to customer confirmation). Certain adjustments like handling and refining charges are also made per contractual terms with customers. Depending on the contractual terms with customers, the payment of receivables may take up to 12 months from date of shipment. Product sales and the related trade accounts receivable are measured using provisional prices for the constituent metals on initial recognition and any unsettled sales are remeasured at the end of each reporting period using the market prices of the constituent metals at the respective measurement dates. Changes in fair value are recognized as an adjustment to product revenue and the related accounts receivable.

Recycling service revenue is recognized at a point in time upon completion of the services. The price for services are separately identifiable within each contract. A receivable is recognized by the Company when the services are completed as this represents the point in time at which the right to consideration becomes unconditional, as only the passage of time is required before payment is due.

The Company has elected to use the practical expedient for financing components related to its sales contracts. The Company does not recognize interest expense on contracts for which the period between receipt of customer payments and sale to the customer is one year or less.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.13 Share-based compensation*

The Company accounts for stock options using the fair value-based method of accounting for share-based compensation. Fair values are determined using the Black-Scholes-Merton option pricing model ("BSM"). Management exercises judgment in determining the underlying share price volatility, expected life of the option, expected forfeitures and other parameters of the calculations. Compensation costs are recognized over the vesting period as an increase to share-based compensation expense and contributed surplus. If, and when, stock options are ultimately exercised, the applicable amounts of contributed surplus are transferred to share capital.

The Company accounts for RSUs under the current plan as equity-settled share-based

payments which are measured at fair value on the grant date. The expense for RSUs is

recognized over the vesting period. Upon settlement of any RSUs, the grant date fair value of the instrument is transferred to share capital.

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.14 Research and development expense*

Research costs are expensed as incurred. An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognized if, and only if, all of the following conditions have been demonstrated:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.the technical feasibility of completing the intangible asset so that it will be available for use or sale;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.the intention to complete the intangible asset and use or sell it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.the ability to use or sell the intangible asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.how the intangible asset will generate probable future economic benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi.the ability to measure reliably the expenditure attributable to the intangible asset during its development.

The amount initially recognized for internally-generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no internally-generated intangible asset can be recognized, development expenditure is recognized in profit or loss in the period in which it is incurred.

Subsequent to initial recognition, internally-generated intangible assets are reported at cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *2.15 Cash and cash equivalents*

Cash consists of cash deposits with financial institutions, while cash equivalents consists of short term guaranteed investment certificates with financial institutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *2.16 Inventories*

Raw materials and finished goods are valued at the lower of cost and net realizable value. Cost is determined on a weighted average basis. The cost of finished goods includes the cost of raw materials and the applicable share of the cost of labour and fixed and variable production overheads. Net realizable value is the estimated selling price less the estimated cost of completion and the estimated costs necessary to make the sale. Costs of idle plant operations are expensed.

At each reporting period, the Company assesses the net realizable value of inventory taking into account current market prices, current economic trends, sales trends and past experiences. Write-downs to net realizable value may be reversed, up to the amount previously written down, when circumstances support an increased inventory value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *2.17 Convertible debt*

The components of convertible debt instruments issued by the Company are recorded as financial liabilities, in accordance with the substance of the contractual arrangements and the definitions of a financial liability. The debt element of the instruments is classified as a liability and recorded as the present value of the Company's obligation to make future interest payments in cash and settle the redemption value of the instrument in cash. The carrying value of the debt element is accreted to the original face value of the instruments, over their life, using the effective interest method. If the conversion option is classified as a liability and requires bifurcation, it is bifurcated as an embedded derivative unless the Company elects to apply the fair value option to the convertible debt. The embedded derivative liability is initially recognized at fair value and classified as derivatives in the statement of financial position. Changes in the fair value of the embedded derivative liability are subsequently accounted for directly through the statement of loss and comprehensive loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.18 Plant and equipment*

Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses net of any reversals of impairment.

Where significant parts of an item of plant and equipment have different useful lives, they are accounted for as separate items of plant and equipment.

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

Depreciation is charged to the consolidated statement of loss and comprehensive loss on a straight-line basis over the estimated useful lives of each part of an item of plant and equipment. The estimated useful lives, residual values and method of depreciation are reviewed each reporting period and any changes are accounted for on a prospective basis. The estimated useful lives are as follows:

---

| | |
|:---|:---|
| Computers | 3 years |
| Vehicles | 5 years |
| Plant equipment | 5 years |
| Furniture | 7 years |
| Storage containers | 10 years |
| Processing equipment | 10 years |
| Leasehold improvements | Shorter of term of lease or estimated useful life |

---

Repairs and maintenance costs are expensed as incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.19 Impairment of long-lived assets*

At the end of each reporting period, the carrying amounts of the Company's assets are reviewed to determine whether there is any indication that those assets are impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized in period. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash generating unit to which the asset belongs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.20 Financial instruments*

*Recognition*

The Company recognizes financial assets or financial liabilities on the consolidated statement of financial position when it becomes party to the contractual provisions of the financial instrument. Financial assets are initially measured at fair value and derecognized either when the Company has transferred substantially all the risks and rewards of ownership of the financial asset, or when cash flows expire. Financial liabilities are initially measured at fair value and are derecognized when the obligations specified in the contract is discharged, cancelled or expired.

A write-off of a financial asset (or a portion thereof) constitutes a derecognition event. Write-off occurs when the Company has no reasonable expectations of recovering the contractual cash flows on a financial asset.

*Classification and measurement*

The Company determines the classification of its financial instruments at initial recognition. Financial assets and financial liabilities are classified according to the following measurement categories:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)those to be measured subsequently at fair value, either through profit or loss ("FVTPL") and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)those to be measured subsequently at amortized cost.

The classification and measurement of financial assets after initial recognition at fair value depends on the business model for managing the financial asset and the contractual terms of the cash flows. Financial assets that are held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on the principal outstanding, are generally measured at amortized cost at each subsequent reporting period. Derivative financial instruments are comprised of the embedded derivative liability representing the conversion option of the convertible debt. The embedded derivative liability is measured at fair value at each reporting date. The embedded derivative liability has been classified as held-for-trading. It

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

is classified as non-current based on the contractual terms specific to the instrument. Gains and losses on re-measurement of the embedded derivative liability are recognized in the consolidated statements of loss and comprehensive loss. All other financial assets are measured at their fair values at each subsequent reporting period, with any changes recorded through profit and loss or through other comprehensive income (which designation is made as an irrevocable election at the time of recognition).

After initial recognition at fair value, financial liabilities are classified and measured at either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)amortized cost; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)FVTPL, if the Company has made an irrevocable election at the time of recognition, or when required (for items such as instruments held for trading or derivatives).

The classification and measurement basis of the Company's financial instruments are as follows:

---

| | |
|:---|:---|
| Financial Instrument | Measurement |
| Cash equivalents | Amortized cost |
| Trade accounts receivable | FVTPL |
| Other accounts receivable | Amortized cost |
| Accounts payable and accrued liabilities | Amortized cost |
| Warrants | FVTPL |
| Convertible debt | Amortized cost |
| Conversion feature of convertible debt | FVTPL |

---

The Company reclassifies financial assets when and only when its business model for managing those assets changes. Financial liabilities are not reclassified.

Transaction costs that are directly attributable to the acquisition or issuance of a financial asset or financial liability classified as subsequently measured at amortized cost are included in the fair value of the instrument on initial recognition. Transaction costs for financial assets and financial liabilities classified at fair value through profit or loss are expensed in profit or loss.

*Impairment* 

The Company assesses all information available, including on a forward-looking basis the expected credit loss associated with any financial assets carried at amortized cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. To assess whether there has been a significant increase in credit risk, the Company compares the risk of default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition based on all information available, and reasonable supportive forward-looking information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.21 Foreign currencies* 

The reporting and functional currency of the Company is the U.S. dollar. Transactions in currencies other than the U.S. dollar are recorded at the rates of exchange prevailing on the dates of transactions. At the end of each reporting period, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at that date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.22 Government assistance*

Amounts received or receivable resulting from government assistance programs are recognized when there is reasonable assurance that the amount of government assistance will be received, and all attached conditions will be complied with. When the amount relates to an expense item, it is recognized as a reduction to the related expense. When the amount relates to an asset, it reduces the carrying amount of the asset and is then recognized as income over the useful life of the depreciable asset by way of a reduced depreciation charge. Grants received in advance are recorded as deferred liability and amortized as a reduction to the related expense/carrying amount of asset as and when the related qualifying costs are incurred.

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.23 Income taxes*

Income tax expense is comprised of current and deferred tax components. Income tax is recognized in profit or loss except to the extent that it relates to items recognized directly in equity or other comprehensive income, in which case the related tax is recognized in equity or other comprehensive income.

Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments to tax payable with regard to previous years.

Deferred tax is recorded using the asset and liability method. Under this method, the Company calculates all temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the period end date. Deferred tax is calculated based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates that are expected to apply to the year of realization or settlement based on tax rates and laws enacted or substantively enacted at the period end date.

Deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which the deductible temporary differences and unused tax losses and tax credits can be utilized. The carrying amount of deferred tax assets is reviewed at each statement of the financial position date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

*2.24 Provisions*

Provisions represent liabilities of the Company for which the amount or timing is uncertain.

A provision is recognized when, as a result of a past event, the Company has a present

obligation (legal or constructive) that can be estimated reliably, and it is probable that an

outflow of economic benefits will be required to settle the obligation. Where appropriate,

the future cash flow estimates are adjusted to reflect risks specific to the liability. The

amount recognized as a provision is the best estimate of the consideration required to

settle the present obligation at the statement of financial position date, considering the

risks and uncertainties surrounding the obligation. Where a provision is measured using the

cash flows estimated to settle the present obligation, its carrying amount is the present

value of those cash flows. When some or all of the economic benefits required to settle a

provision are expected to be recovered from a third party, the receivable is recognized as

an asset if it is virtually certain that reimbursement will be received, and the amount

receivable can be measured reliably.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.25 Leases*

The Company assesses whether a contract is or contains a lease, at inception of the contract. The Company recognizes a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets (such as tablets and personal computers, small items of office furniture and telephones). For these leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate.

Lease payments included in the measurement of the lease liability comprise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.The amount expected to be payable by the lessee under residual value guarantees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.The exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

Whenever the Company incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognized and measured under IAS 37. To the extent that the costs relate to a right-of-use asset, the costs are included in the related right-of-use asset, unless those costs are incurred to produce inventories.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the right-of-use asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

The right-of-use assets are presented as a separate line in the consolidated statement of financial position.

The Company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in the 'Impairment of long-lived assets' policy.

As a practical expedient, IFRS 16 Leases ("IFRS 16") permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Company has used this practical expedient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.26 New and revised IFRS Standards issued but not yet effective*

At the date of authorization of these financial statements, the Company has not applied the following new and revised IFRS Standards that have been issued but are not yet effective.

---

| | |
|:---|:---|
| **New/Revised Standard** | **Description** |
| Amendments to IFRS 3 | Reference to the Conceptual Framework |
| IFRS 17 (including the December 2021 amendments to IFRS 17) | Insurance Contracts |
| Amendments to IAS 1 | Disclosure of Accounting Policies |
| Amendments to IAS 1 | Classifying liabilities as current or non-current |
| Amendments to IAS 8 | Definition of Accounting Estimates |
| Amendments to IAS 12 | Deferred Tax related to Assets and Liabilities arising from a Single Transaction |
| Amendments to IFRS 16 | Lease liability in a sale & leaseback |
| Amendments to IAS 37 | Onerous Contracts - Cost of Fulfilling a Contract |

---

The adoption of the IFRS Standards listed above are not expected to have a material impact on the financial statements of the Company in future periods, except as noted below.

*Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgments - Disclosure of Accounting Policies*

The amendments change the requirements in IAS 1 with regard to disclosure of accounting policies. The amendments replace all instances of the term 'significant accounting policies' with 'material accounting policy information'. Accounting policy information is material if, when considered together with other information included in an entity's financial statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements.

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

The supporting paragraphs in IAS 1 are also amended to clarify that accounting policy information that relates to immaterial transactions, other events or conditions is immaterial and need not be disclosed. Accounting policy information may be material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial. However, not all accounting policy information relating to material transactions, other events or conditions is itself material.

The amendments to IAS 1 and IFRS practice statements 2 are effective for annual periods beginning on or after 1 January 2023, with earlier application permitted and are applied prospectively. The Company is assessing the potential impact of these amendments.

**3.&nbsp;&nbsp;&nbsp;&nbsp;Revenue – product sales and recycling services**

---

| | | | |
|:---|:---|:---|:---|
| For the years ended October 31, | **2022** | 2021 | 2020 |
| Product revenue recognized in the period | $**14.3** | $6.1 | $0.5 |
| Fair value pricing adjustments | **(2.2)** | 0.8 | 0.1 |
| Product sales revenue | **12.1** | 6.9 | 0.6 |
| Recycling service revenue recognized in the period | **1.3** | 0.4 | 0.2 |
| **Revenue** | $**13.4** | $7.3 | $0.8 |

---

 

---

| | | | |
|:---|:---|:---|:---|
| For the years ended October 31, | **2022** | 2021 | 2020 |
| Product revenue recognized in the period | $**14.3** | $6.1 | $0.5 |
| Recycling service revenue recognized in the period | **1.3** | 0.4 | 0.2 |
| **Total revenue before FV pricing adjustment** | $**15.6** | $6.5 | $0.7 |

---

Product revenue from Black Mass & Equivalents and shredded metal, and the related trade accounts receivables, are measured at initial recognition using provisional prices for the constituent metals on initial recognition and any unsettled sales remeasured at the end of each reporting period using the market prices of the constituent metals. Changes in fair value are recognized as an adjustment to product revenue, and the related accounts receivable, and can result in gains and losses when the applicable metal prices increase or decrease from the date of initial recognition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Refer to Note 17 for the impact of movements in the Cobalt and Nickel prices.

**4.&nbsp;&nbsp;&nbsp;&nbsp;Other income (expense)**

The following table summarizes the Company's other income (expense):

---

| | | | |
|:---|:---|:---|:---|
| For the years ended October 31, | **2022** | 2021 | 2020 |
| Interest income on short-term investments | $**7.0** | $0.1 | $— |
| **Interest income** | **7.0** | 0.1 |  |
| Interest expense and accretion on convertible debt | **(15.0)** | (1.2) |  |
| Interest expense and accretion on promissory notes | **—** | (0.1) |  |
| Interest expense and accretion on loans | **—** | (1.3) |  |
| Interest expense on leases | **(2.2)** | (0.4) | (0.2) |
| Other finance costs | **(0.2)** |  | (0.3) |
| Foreign exchange gains (losses) | **0.4** | (0.8) | 0.4 |
| **Interest expense and other costs** | **(17.0)** | (3.8) | (0.1) |
| Fair value gain (loss) on embedded derivatives | **31.3** | (1.3) |  |
| Fair value gain (loss) on warrants | **36.2** | (33.8) |  |
| Fair value gain (loss) on restricted share units | **—** | (3.2) | (0.1) |
| **Gains (losses) on financial instruments** | **67.5** | (38.3) | (0.1) |
| Excess of fair value over consideration transferred related to business combination | **—** | (152.7) |  |

---

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

---

| | | | |
|:---|:---|:---|:---|
| **Excess of fair value over consideration transferred** | **—** | (152.7) |  |
| **Total** | $**57.5** | $(194.7) | $(0.2) |

---

**5. Accounts receivable**

---

| | | |
|:---|:---|:---|
| As at October 31, | **2022** | 2021 |
| Trade receivables | $**1.5** | $4.1 |
| **Total accounts receivable** | **1.5** | 4.1 |
| Sales taxes receivable | $**3.7** | $0.4 |
| Other | **4.1** | 0.6 |
| **Total other receivables** | $**7.8** | $1.0 |

---

Other receivables consist principally of interest receivable and receivables from non-trade vendors.

---

| | | |
|:---|:---|:---|
| **Aging Summary** | | |
| As at October 31, | **2022** | 2021 |
| Current | $**0.3** | $3.2 |
| 1-30 days | **0.6** | 0.3 |
| 31-60 days | **0.3** | 0.1 |
| 61-90 days | **0.1** |  |
| 91 days and over | **0.2** | 0.5 |
| **Total accounts receivable** | $**1.5** | $4.1 |

---

For product revenue, the Company estimates the amount of consideration to which it expects to be entitled under provisional pricing arrangements, which is based on the initial assay results and market prices of certain constituent metals on the date control is transferred to the customer. For the twelve months ended October 31, 2022, the fair value loss arising from changes in estimates was $2.2 million (2021: fair value gain of $0.8 million), which is included in the respective accounts receivable balance. Refer to Note 3 for additional details on product revenue and fair value adjustments recognized in the period.

The Company assesses the need for allowances related to credit loss for service related receivables based on its past experience, the credit ratings of its existing customer and economic trends. For the year ended October 31, 2022, the Company recorded a nominal credit allowance (2021: $nil).

The Company's revenue primarily comes from two key customers, as shown in the table below. The Company's remaining customers do not make up significant percentages of these balances. For additional details on product sales and fair value adjustments recognized in the period, refer to Note 3.

---

| | | | |
|:---|:---|:---|:---|
| **Revenue** | | | |
| For the years ended October 31, | **2022** | 2021 | 2020 |
| Customer A | **16.3%** | 42.0% | 67.0% |
| Customer B | **69.6%** | 52.0% | 0.0% |

---

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| **Trade Accounts Receivable** | **Trade Accounts Receivable** | | |
| As at October 31, | **2022** | 2021 | 2020 |
| Customer A | **18.3%** | 53.0% | 90.0% |
| Customer B | **42.8%** | 45.0% | 0.0% |

---

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

**6.&nbsp;&nbsp;&nbsp;&nbsp;Prepayment and deposits**

---

| | | |
|:---|:---|:---|
| As at October 31, | **2022** | 2021 |
| Prepaid lease deposits | $**2.8** | $0.9 |
| Prepaid transaction costs | **0.3** |  |
| Prepaid construction charges | **1.4** |  |
| Prepaid equipment deposits | **76.4** | 3.2 |
| Prepaid insurance | **5.7** | 3.8 |
| Other prepaids | **2.8** | 0.6 |
| **Total prepaids and deposits** | **89.4** | 8.5 |
| Non-current portion of prepaid lease deposits | **(3.6)** |  |
| **Current prepaids and deposits** | $**85.8** | $8.5 |

---

Other prepaids consist principally of other deposits and subscriptions.

**7.&nbsp;&nbsp;&nbsp;&nbsp;Inventories**

---

| | | |
|:---|:---|:---|
| As at October 31, | **2022** | 2021 |
| Raw materials | $**4.7** | $0.9 |
| Finished goods | **1.7** | 0.3 |
| Parts and tools | **1.1** | 0.1 |
| **Total inventories** | $**7.5** | $1.3 |

---

The cost of inventories recognized as an expense during the twelve months ended October

31, 2022 was $28.8 million (2021: $8.6 million).

As at October 31, 2022, finished goods inventory balance has been adjusted to net realizable value resulting in a write off of $1.3 million in the twelve months ended October 31, 2022, included in the Change in finished goods line (2021: $2.3 million). As at October 31, 2022, raw materials inventory balance has been adjusted to net realizable value resulting in a write off of $4.8 million in the twelve months ended October 31, 2022, included in the Raw materials and supplies line (2021: $0.6 million). Refer to Note 17 for additional details on commodity prices.

**8. Plant and equipment**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| For the year ended October 31, | For the year ended October 31, | For the year ended October 31, |  |  |  | **2022** |
|  | Assets under construction | Plant equipment and other | Computer equipment | Vehicles | Leasehold improvements | Total |
| **Cost** |  |  |  |  |  |  |
| Balance, beginning of the year | $15.6 | $6.4 | $0.2 | $0.2 | $6.2 | $28.6 |
| Additions | 119.5 | 0.2 | 1.6 | 0.1 | 3.6 | 125.0 |
| Transfers | (27.7) | 27.7 |  |  |  |  |
| **Balance, end of the year** | **107.4** | **34.3** | **1.8** | **0.3** | **9.8** | **153.6** |
| **Accumulated depreciation** | **Accumulated depreciation** | **Accumulated depreciation** |  |  |  |  |
| Balance, beginning of the year |  | (1.6) |  | (0.1) | (0.5) | (2.2) |
| Depreciation |  | (2.7) | (0.2) |  | (0.8) | (3.7) |
| **Balance, end of the year** | **—** | **(4.3)** | **(0.2)** | **(0.1)** | **(1.3)** | **(5.9)** |
| **Net book value** | $**107.4** | $**30.0** | $**1.6** | $**0.2** | $**8.5** | $**147.7** |

---

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| For the year ended October 31, | For the year ended October 31, | For the year ended October 31, |  |  |  | 2021 |
|  | Assets under construction | Plant equipment and other | Computer equipment | Vehicles | Leasehold improvements | Total |
| **Cost** |  |  |  |  |  |  |
| Balance, beginning of the year | $1.9 | $2.6 | $— | $0.2 | $1.6 | $6.3 |
| Additions | 17.5 |  | 0.2 |  | 4.6 | 22.3 |
| Transfers | (3.8) | 3.8 |  |  |  |  |
| **Balance, end of the year** | 15.6 | 6.4 | 0.2 | 0.2 | 6.2 | 28.6 |
| **Accumulated depreciation** | **Accumulated depreciation** | **Accumulated depreciation** |  |  |  |  |
| Balance, beginning of the year |  | (0.5) |  |  | (0.1) | (0.6) |
| Depreciation |  | (1.1) |  | (0.1) | (0.4) | (1.6) |
| **Balance, end of the year** |  | (1.6) |  | (0.1) | (0.5) | (2.2) |
| **Net book value** | $15.6 | $4.8 | $0.2 | $0.1 | $5.7 | $26.4 |

---

For the twelve months ended October 31, 2022, $6.2 million in employee salaries and $0.6 million in share-based compensation costs (2021: $nil) were capitalized to assets under construction.

For the twelve months ended October 31, 2022, $5.2 million in borrowing costs (2021: $nil) were capitalized to assets under construction. The capitalization rate used to determine the amount of borrowing costs eligible for capitalization in the period was a weighted average effective interest rate of 12.3%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Refer to Note 18 for details of contractual commitments to purchase fixed assets.

 **9. Right-of-use assets** 

---

| | | | |
|:---|:---|:---|:---|
| For the year ended October 31, | For the year ended October 31, | For the year ended October 31, | **2022** |
|  | Premises | Equipment | Total |
| **Cost** |  |  |  |
| Balance, beginning of the year | $28.8 | $0.1 | $28.9 |
| Additions | 29.3 | 0.4 | 29.7 |
| Termination/derecognition | (1.2) |  | (1.2) |
| **Balance, end of the year** | **56.9** | **0.5** | **57.4** |
| **Accumulated depreciation** | **Accumulated depreciation** | **Accumulated depreciation** |  |
| Balance, beginning of the year | (1.9) |  | (1.9) |
| Depreciation | (6.3) | (0.1) | (6.4) |
| Termination/derecognition | 1.0 |  | 1.0 |
| **Balance, end of the year** | **(7.2)** | **(0.1)** | **(7.3)** |
| **Carrying amounts** | $**49.7** | $**0.4** | $**50.1** |

---

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

---

| | | | |
|:---|:---|:---|:---|
| For the year ended October 31, | For the year ended October 31, | For the year ended October 31, | 2021 |
|  | Premises | Equipment | Total |
| **Cost** |  |  |  |
| Balance, beginning of the year | $4.4 | $0.1 | $4.5 |
| Additions | 24.2 |  | 24.2 |
| Modifications | 0.2 |  | 0.2 |
| **Balance, end of the year** | 28.8 | 0.1 | 28.9 |
| **Accumulated depreciation** | **Accumulated depreciation** | **Accumulated depreciation** |  |
| Balance, beginning of the year | (0.6) |  | (0.6) |
| Depreciation | (1.3) |  | (1.3) |
| **Balance, end of the year** | (1.9) |  | (1.9) |
| **Carrying amounts** | $26.9 | $0.1 | $27.0 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The weighted average lease term of the Company's premises and equipment leases is 4.6 years.

**10.&nbsp;&nbsp;&nbsp;&nbsp;Related party transactions**

The remuneration of the executive officers and directors, who are the key management personnel of the Company, is set out below:

---

| | | | |
|:---|:---|:---|:---|
| For the years ended October 31, | **2022** | 2021 | 2020 |
| Salaries | $**3.5** | $1.5 | $0.2 |
| Share-based compensation | **13.5** | 1.9 | 0.1 |
| Fees and benefits | **2.9** | 1.5 | 0.4 |
| Post employment benefits | **0.1** |  |  |
| **Total remuneration of key management personnel** | $**20.0** | $4.9 | $0.7 |

---

During the twelve months ended October 31, 2022, the Company paid directors for providing director and consulting services. Total amounts paid to directors in respect of these activities in the period was $0.4 million (2021: $0.3 million, 2020: $0.2 million).

Outstanding balances of remunerations of the executive officers and directors are summarized as follows:

---

| | | | |
|:---|:---|:---|:---|
| As at October 31, | **2022** | 2021 | 2020 |
| Accounts payable and accrued liabilities | $**2.3** | $0.8 | $0.3 |
| Restricted share units liability | **—** |  | 0.2 |
| **Outstanding balances** | $**2.3** | $0.8 | $0.5 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the other expenses¹ incurred with related parties:

---

| | | | |
|:---|:---|:---|:---|
| For the years ended October 31, | **2022** | 2021 | 2020 |
| Related party lease and expense - Ashlin BPG Marketing | $**0.1** | $0.1 | $— |
| Related party expense - Fade In Production Pty. Ltd | **0.2** | 0.1 |  |
| Related party expense - Consulero Inc. | **0.1** | 0.1 |  |
| Consulting agreement - Atria Ltd | **—** |  | 0.5 |
| Director Consulting Agreement - Anthony Tse | **—** | 0.1 |  |
| **Total expenses incurred with related parties** | $**0.4** | $0.4 | $0.5 |

---

¹Related party expenses are recorded at exchange amount

*Related Party Lease*

From January 1, 2019 to December 31, 2021, the Company leased certain office space from Ashlin BPG Marketing, which is controlled by certain members of the immediate family of the Company's President and Chief Executive Officer. Under the terms of the lease, the Company was required to pay Cdn. $4,500 per month plus applicable taxes, subject to 60 days' notice of termination. Li-Cycle terminated the lease, effective December 31, 2021.

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

*Related-Party Expenses*

The Company has engaged Fade In Production Pty. Ltd., which is controlled by certain members of the immediate family of the Executive Chair of Li-Cycle, to provide it with corporate video production services since 2017.

From April 1, 2020 to June 30, 2022, the Company engaged Ashlin BPG Marketing, a related party as described above, to provide it with Li-Cycle branded promotional products for both customers and employees. The Company terminated its relationship with the vendor, effective June 30, 2022.

From September 1, 2020 to July 31, 2022, the Company engaged Consulero Inc., which is controlled by certain members of the immediate family of the Company's President and Chief Executive Officer, to provide it with technology services in relation to the Company's inventory management system. The Company terminated its relationship with the vendor, effective July 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Consulting Agreement* 

On May 1, 2020, Li-Cycle entered into a consulting agreement with Atria Limited ("**Atria**"), an entity which beneficially owned more than 5% of the outstanding Li-Cycle Corp. common shares at that time, to agree upon and finalize the consideration for certain business development and marketing consulting services that had been previously performed for and on behalf of Li-Cycle from 2018 through April 2020. The fees for the services were agreed at 12,000 common shares of Li-Cycle Corp., payable in installments of 1,000 shares per month. On January 25, 2021, Li-Cycle issued all of the 12,000 shares to Atria as full and final satisfaction of all obligations of Li-Cycle to Atria under the consulting agreement. Atria also directed the issuance of shares as follows: 8,000 Shares to Atria; 2,000 Shares to Pella Ventures (an affiliated company of Atria); and 2,000 Shares to a director of Li-Cycle Corp. at the time, who is not related to Atria.

*Director Consulting Agreement*

Under the terms of an agreement dated July 19, 2019 between Li-Cycle and Anthony Tse, Mr. Tse provided consulting services to Li-Cycle in relation to the proposed expansion of its operations in Asia and was entitled to a fee of $4,700 per month for his services. The consulting agreement was terminated on January 19, 2022.

**11.&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities**

---

| | | |
|:---|:---|:---|
| As at October 31, | **2022** | 2021 |
| Trade payables | $**16.3** | $9.4 |
| Accrued fixed assets | **7.2** | 2.1 |
| Accrued expenses | **16.3** | 4.4 |
| Accrued compensation | **7.7** | 2.8 |
| **Total accounts payable and accrued liabilities** | $**47.5** | $18.7 |

---

**12.&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities**

---

| | | | |
|:---|:---|:---|:---|
| For the year ended October 31, |  |  | **2022** |
|  | Premises | Equipment | Total |
| **Lease liabilities** |  |  |  |
| Balance, beginning of the year | $29.2 | $0.2 | $29.4 |
| Additions | 28.4 | 0.4 | 28.8 |
| Lease repayments | (6.8) | (0.1) | (6.9) |
| Lease interest | 2.2 |  | 2.2 |
| Termination | (0.2) |  | (0.2) |
| Foreign exchange gains (losses) | (1.5) |  | (1.5) |
| **Balance, end of the year** | $**51.3** | $**0.5** | $**51.8** |
| Non-current portion of lease liabilities | $46.2 | $0.4 | $46.6 |
| **Current lease liabilities** | $**5.1** | $**0.1** | $**5.2** |

---

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

---

| | | | |
|:---|:---|:---|:---|
| For the year ended October 31, |  |  | 2021 |
|  | Premises | Equipment | Total |
| **Lease liabilities** |  |  |  |
| Balance, beginning of the year | $3.5 | $0.1 | $3.6 |
| Additions | 25.9 | 0.4 | 26.3 |
| Modifications | 0.3 | (0.2) | 0.1 |
| Lease repayments | (1.3) | (0.1) | (1.4) |
| Lease interest | 0.4 |  | 0.4 |
| Foreign exchange gains (losses) and other | 0.4 |  | 0.4 |
| **Balance, end of the year** | $29.2 | $0.2 | $29.4 |
| Non-current portion of lease liabilities | $26.4 | $0.1 | $26.5 |
| **Current lease liabilities** | $2.8 | $0.1 | $2.9 |

---

In the twelve months ended October 31, 2022, the Company recognized interest expense of $2.2 million related to lease liabilities (2021: $0.4 million, 2020: $0.2 million).

The Company's lease obligations include leases for plant operations, storage facilities, and office space for employees.

The following table summarizes the Company's undiscounted lease obligations:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Maturity analysis (undiscounted) | Maturity analysis (undiscounted) | Maturity analysis (undiscounted) | Maturity analysis (undiscounted) | Maturity analysis (undiscounted) | Maturity analysis (undiscounted) | Maturity analysis (undiscounted) | Maturity analysis (undiscounted) |
| As at October 31, 2022 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Thereafter | Total |
| Premises | $7.9 | $7.2 | $6.9 | $6.7 | $6.1 | $41.3 | $76.1 |
| Equipment | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 |  | 0.5 |
| **Total** | $**8.0** | $**7.3** | $**7.0** | $**6.8** | $**6.2** | $**41.3** | $**76.6** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Maturity analysis (undiscounted) | Maturity analysis (undiscounted) | Maturity analysis (undiscounted) | Maturity analysis (undiscounted) | Maturity analysis (undiscounted) | Maturity analysis (undiscounted) | Maturity analysis (undiscounted) | Maturity analysis (undiscounted) |
| As at October 31, 2021 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Thereafter | Total |
| Premises | $4.5 | $4.6 | $3.7 | $3.3 | $3.3 | $16.3 | $35.7 |
| Equipment | 0.1 | 0.1 |  |  |  |  | 0.2 |
| **Total** | $4.6 | $4.7 | $3.7 | $3.3 | $3.3 | $16.3 | $35.9 |

---

**13.&nbsp;&nbsp;&nbsp;&nbsp;Convertible Debt**

---

| | | |
|:---|:---|:---|
| As at October 31, | **2022** | 2021 |
| KSP Note (a) | $**92.4** | $100.9 |
| Glencore Note (b) | **196.1** |  |
| **Total convertible debt at end of period** | $**288.5** | $100.9 |

---

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a) KSP Note*

---

| | | |
|:---|:---|:---|
| As at October 31, | **2022** | 2021 |
| Principal of convertible note at beginning of period | $**100.0** | $— |
| Issuance of convertible notes | **5.9** | 100.0 |
| Principal of convertible notes at end of period | **105.9** | 100.0 |
| Conversion feature at beginning of period | **29.0** |  |
| Conversion feature issued | **—** | 27.7 |
| Fair value (gain) loss on embedded derivative | **(19.9)** | 1.3 |
| Conversion feature at end of period | **9.1** | 29.0 |
| Debt component at beginning of period | **71.9** |  |
| Debt component issued | **5.9** | 72.3 |
| Transaction costs | **—** | (1.6) |
| Accrued interest paid in kind | **(5.9)** |  |
| Accrued interest expense | **11.4** | 1.2 |
| Debt component at end of period | **83.3** | 71.9 |
| Total convertible debt at end of period | $**92.4** | $100.9 |

---

On September 29, 2021, the Company entered into a Note Purchase Agreement (the "KSP Note Purchase Agreement") with Spring Creek Capital, LLC (an affiliate of Koch Strategic Platforms, LLC, being a subsidiary of Koch Investments Group) and issued an unsecured convertible note (the "Initial KSP Note") for a principal amount of $100 million to Spring Creek Capital, LLC. The KSP Note will mature on September 29, 2026 unless earlier repurchased, redeemed or converted. Interest on the Initial KSP Note is payable semi-annually, and Li-Cycle is permitted to pay interest on the Initial KSP Note in cash or by payment in-kind ("PIK"), at its election. Interest payments made in cash are based on an interest rate of LIBOR plus 5.0% per year, and PIK interest payments are based on an interest rate of LIBOR plus 6.0% per year. Under the terms of the Initial KSP Note, LIBOR has a floor of 1% and a cap of 2%. Once LIBOR interest rate is no longer published, the interest rate will instead be based on the sum of the Secured Overnight Financing Rate ("SOFR") and the average spread between the SOFR and LIBOR during the three-month period ending on the date on which LIBOR ceases to be published. The PIK election results in the issuance of a new note under the same terms as the Initial KSP Note, issued in lieu of interest payments with an issuance date on the applicable interest date. On May 1, 2022, Spring Creek Capital, LLC assigned the KSP Note and the PIK note outstanding at that time to an affiliate, Wood River Capital, LLC. The Company has elected to pay interest on the Initial KSP Convertible note by PIK since the first interest payment date of December 31, 2021. The Initial KSP Note and the PIK notes issued thereunder are referred to collectively as the "KSP Convertible Notes", and as at October 31, 2022, comprised the following:

---

| | | |
|:---|:---|:---|
| Note | Date Issued | Amount Issued |
| KSP Note | September 29, 2021 | $100.0 |
| PIK Note | December 31, 2021 | 1.8 |
| PIK Note | June 30, 2022 | 4.1 |
| **Total** |  | $**105.9** |

---

Subsequent to year end, on December 31, 2022, the Company elected to pay the accrued interest in kind by issuing a new Note for the amount of $4.3 million under the same terms as the original Note, in lieu of cash payments.

The conversion feature under the KSP Convertible Notes has been recorded as an embedded derivative liability since the conversion ratio does not always result in a conversion of a fixed dollar amount of liability for a fixed number of shares. The KSP Note had an initial conversion price of approximately $13.43 per Li-Cycle common share, subject to customary anti-dilution adjustments, for which price was established based on 125% of the 7-day volume-weighted average price of Li-Cycle's common shares prior to the date of the KSP Note Purchase Agreement. Should the Company's share price be equal to or greater than $17.46, for a period of twenty consecutive days, the Company can force conversion of the KSP Convertible Notes. Li-Cycle will settle its conversion obligations through the delivery of its own common shares. As at October 31, 2022, no conversions had taken place.

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

The fair value of the embedded derivatives upon issuance of the original KSP Note was determined to be a liability of $27.7 million whereas the remaining $72.3 million, net of transaction costs of $1.6 million, was allocated to the principal portion of the debt. During the twelve months ended October 31, 2022, the Company recognized a fair value gain of $19.9 million on the embedded derivatives. The embedded derivatives were valued using the Binomial Option Pricing Model. The assumptions used in the model were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | (Issuance date)<br>September 29, 2021 | October 31, 2021 | October 31, 2022 |
| Risk free interest rate | 1.1% | 1.2% | 4.4% |
| Expected life of options | 5 years | 4.9 years | 3.9 years |
| Expected dividend yield | 0.0% | 0.0% | 0.0% |
| Expected stock price volatility | 66% | 62% | 63% |
| Share Price | $12.56 | $12.94 | $5.96 |

---

Expected volatility was determined by calculating the average implied volatility of a group of listed entities that are considered similar in nature to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b) Glencore Note*

---

| | | |
|:---|:---|:---|
| As at October 31, | **2022** | 2021 |
| Principal of convertible note at beginning of period | $**—** | $— |
| Issuance of convertible note | **200.0** |  |
| Principal of convertible note at end of period | **200.0** |  |
| Conversion feature at beginning of period | **—** |  |
| Conversion feature issued | **46.2** |  |
| Fair value (gain) loss on embedded derivative | **(11.4)** |  |
| Conversion into common shares | **—** |  |
| Conversion feature at end of period | **34.8** |  |
| Debt component at beginning of period | **—** |  |
| Debt component issued | **153.8** |  |
| Transaction costs | **(1.3)** |  |
| Accrued interest expense | **8.8** |  |
| Debt component at end of period | **161.3** |  |
| **Total convertible debt at end of period** | $**196.1** | $— |

---

On May 31, 2022, the Company issued an unsecured convertible note (the "Glencore Note") for a principal amount of $200 million to Glencore Ltd. ("Glencore"), a subsidiary of Glencore plc (LON: GLEN). The Glencore Note will mature on May 31, 2027 unless there is an earlier repurchase, redemption or conversion. Interest on the Glencore Note is payable semi-annually, with Li-Cycle permitted to pay interest on the Glencore Note in cash or by payment in-kind ("PIK"), at its election. Interest payments made in cash are based on an interest rate of the Secured Overnight Financing Rate ("SOFR") for a tenor comparable to the relevant interest payment period plus 0.42826% (the "Floating Rate") plus 5% per annum if interest is paid in cash and plus 6% per annum if interest is paid in PIK. The Floating Rate has a floor of 1% and a cap of 2%. The PIK election results in the issuance of a new note under the same terms as the original Glencore Note, issued in lieu of interest payments with an issuance date on the applicable interest date.

In connection with any optional redemption and provided that Glencore has not elected to convert the Glencore Note into common shares, the Company must issue warrants (the "Glencore Warrants") to Glencore on the optional redemption date that entitle the holder to acquire, until the maturity date of the Glencore Note, a number of common shares equal to the principal amount of the Glencore Note being redeemed divided by the then applicable conversion price. The initial exercise price of the Glencore Warrants will be equal to the conversion price as of the optional redemption date.

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

Subsequent to year end, on November 30, 2022, the Company elected to pay the accrued interest in kind by issuing a new Note for the amount of $8.1 million under the same terms as the original Note, in lieu of cash payments.

The conversion feature under the Glencore Note has been recorded as an embedded derivative liability as the conversion ratio does not always result in a conversion of a fixed dollar amount of liability for a fixed number of shares. The Glencore Note has a conversion price of approximately $9.95 per Li-Cycle common share, subject to customary anti-dilution adjustments. As at October 31, 2022, no election had been made as to whether interest payments would be made in cash or PIK.

The fair value of the embedded derivative liability upon issuance of the Glencore Note was determined to be $46.2 million with the remaining $153.8 million, net of transaction costs of $1.3 million, allocated to the initial amortized cost of the host debt instrument. During the twelve months ended October 31, 2022, the Company recognized a fair value gain of $11.4 million on the embedded derivatives. The embedded derivatives were valued using the Black-Scholes Option Pricing Model. The assumptions used in the model were as follows:

---

| | | |
|:---|:---|:---|
| | (Issuance date)<br>May 31, 2022 | October 31, 2022 |
| Risk free interest rate | 2.9% | 4.4% |
| Expected life of options | 5 years | 4.6 years |
| Expected dividend yield | 0.0% | 0.0% |
| Expected stock price volatility | 68% | 63% |
| Share Price | $8.15 | $5.96 |

---

Expected volatility was determined by calculating the average implied volatility of a group of listed entities that are considered similar in nature to the Company.

**14.&nbsp;&nbsp;&nbsp;&nbsp;Warrants**

In connection with the completion of the Business Combination on August 10, 2021, the Company assumed obligation for Peridot Acquisition Corp.'s warrants to purchase up to 23,000,000 common shares at their fair market value of $2.10 per share for a total acquired liability of $48.3 million.

The total number of warrants was made up of 15,000,000 Public Placement Warrants ("Public Warrants") and 8,000,000 Private Placement Warrants ("Private Warrants"). All of the warrants had a 5-year term, expiring on September 24, 2025. The Public Warrants had an exercise price of $11.50 per share, with a redemption price of $0.10 per warrant if the Company's share price exceeded $10.00, on a cashless basis. If the Company's share price exceeded $18.00 for any 20 trading days within the 30 trading day period ending three trading days before the Company elected to deliver a notice of redemption, the redemption price was $0.01 on a cash basis. The Private Warrants had an exercise price of $11.50 per share, redeemable only at such time that the share price of the Company was between $10.00 and $18.00, at $0.10 per warrant. The Private Warrants were not transferable until 30 days after the close of the Business Combination, which was September 9, 2021.

On December 27, 2021, the Company announced that it would redeem all of its warrants to purchase common shares of the Company that remained outstanding at 5:00 p.m. New York City time on January 26, 2022 (the "Redemption Date") for a redemption price of $0.10 per warrant. Based on the redemption fair market value that was announced on January 11, 2022, warrant holders who surrendered their warrants on a "Make-Whole Exercise" prior to the Redemption Date received 0.253 common shares of the Company per warrant. As of January 31, 2022, (i) 9,678 warrants were exercised at the exercise price of $11.50 per common share, and (ii) 22,540,651 warrants were surrendered by holders in the Make-Whole Exercise. The remaining 449,665 unexercised warrants were redeemed at $0.10 per warrant.

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

---

| | | | | |
|:---|:---|:---|:---|:---|
| For the year ended October 31, |  | **2022** |  | 2021 |
|  | Number of warrants |  | Number of warrants |  |
| Balance, beginning of the year | **22999894** | $**82.1** |  | $— |
| Assumption of warrants - Business Combination (refer to Note 1) | **—** | **—** | 22999994 | 48.3 |
| Cash exercises | **(9578)** | **—** | (100) |  |
| Cashless exercises | **(22540651)** | **(45.9)** |  |  |
| Redemptions | **(449665)** | **—** |  |  |
| Fair value (gain) loss on warrants | **—** | **(36.2)** |  | 33.8 |
| **Balance, end of the year** | **—** | $**—** | 22999894 | $82.1 |

---

Warrants were re-measured through profit or loss at each period end, using first level inputs. As of October 31, 2022, there are no warrants outstanding.

**15.&nbsp;&nbsp;&nbsp;&nbsp;Share capital and share-based compensation**

*Authorized share capital*

Li-Cycle Corp. is authorized to issue an unlimited number of voting common shares, Class A non-voting common shares, preference shares and Class A preferred shares, in each case without par value. All issued shares are fully paid. Li-Cycle Holdings Corp. is authorized to issue an unlimited number of voting common shares without par value. All issued shares are fully paid.

For retrospective presentation, the number of Li-Cycle Corp. common shares and Class A preferred shares on the consolidated statements of changes in equity have been scaled by the Business Combination exchange ratio of 1:39.91 for periods prior to the completion of the Business Combination on August 10, 2021.

The changes in the Company's outstanding common shares were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| For the years ended October 31, | For the years ended October 31, | **2022** | **2022** | 2021 | 2021 |
|  | Note | Number of shares (in millions) | Capital Stock | Number of shares (in millions) | Capital Stock |
| Balance, beginning of period |  | **163.3** | $**672.1** | 83.4 | $15.5 |
| Issuance of shares - Series C private placement |  | **—** | **—** | 11.2 | 21.6 |
| Issuance of shares for non-cash costs |  | **—** | **—** | 0.5 | 0.5 |
| Issuance of shares - Public placement through Business Combination |  | **—** | **—** | 65.7 | 629.7 |
| Exercise of RSUs |  | **0.3** | **3.6** | 0.4 | 3.9 |
| Exercise of stock options |  | **1.4** | **0.4** | 2.1 | 0.9 |
| Exercise of warrants | 14 | **5.7** | **46.0** |  |  |
| Issuance of shares to LG Energy Solution, Ltd. and LG Chem, Ltd. |  | **5.3** | **49.7** |  |  |
| **Balance, end of period** |  | **176.0** | $**771.8** | 163.3 | $672.1 |

---

On May 12, 2022, the Company announced the successful completion of the $50 million aggregate investment in common shares of the Company by LG Energy Solution, Ltd. ("LGES") and LG Chem, Ltd. ("LGC"). The Company issued 5,300,352 shares at an average price of $9.43 per common shares to LGES and LGC (being 2,650,176 common shares each). The investment was split into two tranches: (i) an initial tranche of 4,416,960 common shares, in the aggregate, at a price of $10.00 per share (for an aggregate initial tranche subscription price of approximately $44.2 million), and (ii) a second tranche of 883,392 common shares, in the aggregate, at a price of $6.60 per share (for an aggregate second tranche subscription price of approximately $5.8 million). The total cash inflow, net of transaction costs, was $49.7 million.

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

*Long-term incentive plans*

*Stock options*

For stock options issued under the Company's 2021 Long Term-Incentive Plan ("LTIP plan"), each of the Company's stock options converts into one common share of the Company on exercise. No amounts are paid or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting rights. The vesting period is one-third on the first-year anniversary of the grant of the option, and one-third every consecutive year thereafter. If an option remains unexercised after a period of 10 years from the date of grant, the option expires. Options are forfeited if the recipient terminates their employment or contract with the Company before the options vest.

A summary of stock option activities is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| For the years ended October 31, | For the years ended October 31, | **2022** |  | 2021 |
| $ millions, except number of options | Number of <br>stock options | Weighted average<br>exercise price of <br> stock options | Number of <br>stock options | Weighted average<br>exercise price of <br> stock options |
| Balance, beginning of the year | **5296554** | **2.81** | 5327980 | 0.38 |
| &nbsp;&nbsp;&nbsp;&nbsp;Granted | **763829** | **7.81** | 2320989 | 6.13 |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercised | **(1547113)** | **0.46** | (2172820) | 0.62 |
| &nbsp;&nbsp;&nbsp;&nbsp;Forfeited | **(2619)** | **10.93** | (179595) | 1.06 |
| **Balance, end of the year** | **4510651** | **4.46** | 5296554 | 2.81 |
| **Exercisable stock options** | **3253287** | **2.70** | 4242707 | 0.79 |

---

During the twelve months ended October 31, 2022, 1,547,113 stock options were exercised on a cashless basis (2021: 1,148,570), resulting in the issuance of 1,446,697 common shares (2021: 1,031,226) of Li-Cycle Holdings Corp., net of stock option issuance costs.

A summary of the outstanding stock options is as follows:

---

| | | | |
|:---|:---|:---|:---|
| | | | **2022** |
| Range of exercise prices | Number of stock options | Weighted-average remaining contractual life (years) | Expiration year |
| 0.02 - 0.37 | 1268220 | 1.24 | 2023-2024 |
| 1.07 - 2.15 | 1033029 | 7.72 | 2029-2030 |
| 2.15 - 13.20 | 2209402 | 8.87 | 2031-2032 |
| **Total** | **4510651** |  |  |

---

The Company recognized total expenses of $6.6 million related to stock options during the twelve months ended October 31, 2022 (2021: $2.7 million, 2020: $0.2 million).

The fair value of the stock options granted during the twelve months ended October 31, 2022 was determined to be $3.7 million (2021: $8.3 million, 2020: $0.9 million), using the Black-Scholes Merton option pricing model. The assumptions used in the stock option pricing model for the grants during the year ended October 31, 2022 were as follows:

---

| | |
|:---|:---|
| Risk free interest rate | 1.4% - 3.6% |
| Expected life of options | 6 years |
| Expected dividend yield | 0.0% |
| Expected stock price volatility | 63% - 70% |
| Expected forfeiture rate | 0.0% |

---

Expected volatility was determined by calculating the average historical volatility of a group of listed entities that are considered similar in nature to the Company.

*Restricted share units*

Under the terms of the Company's LTIP plan, restricted share units ("RSUs") of Li-Cycle Holdings Corp. have been issued to executives, directors, employees and advisors. The RSU vesting periods ranged from several months to 3 years. The RSUs represent the right to receive

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

common shares from the Company in an amount equal to the fair market value of a common share of Li-Cycle Holdings Corp. at the time of distribution. RSUs issued under the LTIP plan are expected to be settled in common shares. RSUs issued under the LTIP plan are classified as equity on the consolidated statements of financial position.

The Company recognized share-based compensation expense relating to RSUs totaling $11.5 million in the twelve months ended October 31, 2022 (2021: $1.3 million, 2020:$0.1 million).

A summary of RSU activities is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>For the years ended October 31, | <br>For the years ended October 31, | **2022** |  | 2021 |
| $ millions, except number of RSUs | Number of <br>RSUs | Weighted average share price on grant date | Number of <br>RSUs | Weighted average share price on grant date |
| Balance, beginning of the year | **716763** | **10.93** | 87084 | 1.07 |
| Granted¹ | **1703966** | **8.38** | 1021955 | 8.29 |
| Exercised | **(317619)** | **11.22** | (392276) | 1.87 |
| Forfeited | **(55073)** | **9.98** |  |  |
| **Balance, end of the year** | **2048037** | **8.79** | 716763 | 10.93 |

---

¹Grants prior to August 10, 2021 were issued prior to the Company becoming public.

RSUs granted in the twelve months ended October 31, 2022 vest over 1 to 3 years.

For the twelve months ended October 31, 2022, the Company capitalized $0.6 million in RSU and stock option costs to assets under construction (2021: $nil).

**16.&nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interest**

On January 26, 2022, the Company entered into an agreement with ECO STOR AS ("ECO STOR") and Morrow Batteries AS ("Morrow") to form Li-Cycle Norway AS which will construct a new commercial lithium-ion battery recycling facility in southern Norway. Li-Cycle is the majority owner of Li-Cycle Norway AS with 67% ownership with ECO STOR and Morrow being minority owners and Nordic-headquartered strategic partners with 31% and 2% ownership, respectively. These holdings allow the shareholders to nominate 2 Directors, 1 Director, and 1 observer, respectively, with their ownership holdings.

Summarized financial information for Li-Cycle Norway AS is as follows:

---

| | |
|:---|:---|
| For the year ended October 31, | **2022** |
| Balance, beginning of year | $— |
| Investment to non-controlling interest | 0.3 |
| Loss attributable to non-controlling interest during the year | (0.1) |
| **Balance, end of year** | $**0.2** |

---

---

| | |
|:---|:---|
| As at October 31, | **2022** |
| Revenue | $— |
| Expenses | (0.4) |
| Net loss | (0.4) |
| **Net loss attributable to non-controlling interest** | $**(0.1)** |

---

**17.&nbsp;&nbsp;&nbsp;&nbsp;Financial instruments and financial risk factors**

*Fair values* 

The Company's financial instruments consist of cash equivalents, accounts receivable, other receivables, accounts payable and accrued liabilities, and convertible debt. The carrying amounts of other receivables, accounts payable and accrued liabilities approximate fair value due to the short-term maturity of these instruments.

Fair value hierarchy levels 1 to 3 are based on the degree to which the fair value is observable:

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

There were no transfers between the levels during the current or prior year.

The Company's financial assets measured at fair value on a recurring basis are measured under level 2 of the hierarchy and were calculated as follows:

---

| | | |
|:---|:---|:---|
| As at October 31, 2022 | Balance | Level 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | $1.5 | $1.5 |
|  | $**1.5** | $**1.5** |
| As at October 31, 2021 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 4.1 | 4.1 |
|  | $4.1 | $4.1 |

---

Refer to Note 5 above for additional details related to measurement of accounts receivable.

The Company's financial liabilities measured at fair value on a recurring basis are measured under level 1 and 2 of the hierarchy and were calculated as follows:

---

| | | | |
|:---|:---|:---|:---|
| As at October 31, 2022 | Balance | Level 1 | Level 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Conversion feature of convertible debt (refer to Note 13) | $43.9 | $— | $43.9 |
|  | $**43.9** | $**—** | $**43.9** |
| As at October 31, 2021 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Conversion feature of convertible debt (refer to Note 13) | 29.0 |  | 29.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warrants (refer to Note 14) | 82.1 | 53.5 | 28.6 |
|  | $111.1 | $53.5 | $57.6 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Currency risk*

The Company is exposed to currency risk as its cash is mainly denominated in U.S. dollars, while its operations also require Canadian dollars, Euros, Swiss Francs and certain other currencies. As at October 31, 2022, the impact of a 5% change in these respective currencies versus the U.S. dollar, would result in an immaterial impact.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Interest rate risk* 

Interest rate risk is the risk arising from the effect of changes in prevailing interest rates on the Company's financial instruments. The Company is exposed to interest rate risk, as it has variable interest rate debt that includes an interest rate floor and cap. Refer to Note 13.

*Credit risk*

Credit risks associated with cash are minimal as the Company deposits the majority of its cash with large Canadian and U.S. financial institutions. The Company's credit risks associated with receivables are managed and exposure to potential loss is also assessed as minimal.

The Company's revenue and accounts receivable primarily come from two key customers under long-term contracts. The Company manages this risk by engaging with reputable multi-national corporations in stable jurisdictions and performing a review of a potential customer's financial health prior to engaging in business.

*Liquidity risk*

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

Management has established an appropriate liquidity risk management framework for the management of the Company's short-term, medium and long-term funding and liquidity requirements.

The Corporation's significant contractual obligations and interest and principal repayments in respect of its financial liabilities and provisions are presented in the following table:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| At October 31, |  |  |  |  | **2022** |
|  | Total | Less than 1 year | 1 - 3 years | 3 - 5 years | More than 5 years |
| Accounts payable and accrued liabilities | $47.5 | $47.5 | $— | $— | $— |
| Lease liabilities | 76.6 | 8.0 | 14.3 | 13.0 | 41.3 |
| Restoration | 0.4 |  | 0.2 |  | 0.2 |
| Convertible debt principal | 300.0 |  |  | 300.0 |  |
| Convertible debt interest | 146.1 |  |  | 146.1 |  |
| **Total** | $**570.6** | $**55.5** | $**14.5** | $**459.1** | $**41.5** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| At October 31, |  |  |  |  | 2021 |
|  | Total | Less than 1 year | 1 - 3 years | 3 - 5 years | More than 5 years |
| Accounts payable and accrued liabilities | $18.7 | $18.7 | $— | $— | $— |
| Lease liabilities | 35.9 | 4.5 | 8.4 | 6.7 | 16.3 |
| Restoration | 0.4 |  | 0.1 | 0.1 | 0.2 |
| Convertible debt principal | 100.0 |  |  | 100.0 |  |
| Convertible debt interest | 42.7 |  |  | 42.7 |  |
| **Total** | $**197.7** | $**23.2** | $**8.5** | $**149.5** | $**16.5** |

---

*Market risk*

The Company is exposed to commodity price movements for the inventory it holds and the products it produces. Commodity price risk management activities are currently limited to monitoring market prices. The Company's revenues are sensitive to the market prices of the constituent payable metals contained in its products, notably cobalt and nickel.

The following table sets out the Company's exposure, as at October 31, 2022 and 2021, in relation to the impact of movements in the Cobalt and Nickel price for the provisionally invoiced sales volume:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Cobalt | Cobalt | Nickel | Nickel |
| As at October 31, | **2022** | 2021 | **2022** | 2021 |
| Metric tonnes subject to fair value pricing adjustments | **4202** | 1728 | **4202** | 1728 |
| 10% increase in prices | $**1.1** | $0.3 | $**1.0** | $0.4 |
| 10% decrease in prices | $**(1.1)** | $(0.3) | $**(1.0)** | $(0.4) |

---

The following table sets out the period end commodity prices for Cobalt and Nickel as at October 31, 2022 and 2021:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market price per tonne | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market price per tonne | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market price per tonne |
| As at October 31, | **2022** | 2021 |
| Cobalt | $**53462** | $60407 |
| Nickel | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21710** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19300 |

---

*Capital risk management*

The Company manages its capital to ensure that entities in the Company will be able to continue as a going concern while maximizing the return to shareholders through the optimization of the debt and equity balance.

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

The capital structure of the Company consists of net cash (cash and cash equivalents after deducting convertible debt) and equity of the Company (comprising issued share capital and other reserves as disclosed in Note 15).

The Company is not subject to any externally imposed capital requirements.

**18. &nbsp;&nbsp;&nbsp;&nbsp;Commitments and contingencies**

As of October 31, 2022, there were $9.2 million in committed purchase orders or agreements for equipment and services (October 31, 2021: $6.9 million).

*Legal Proceedings*

The Company is and may be subject to various claims and legal proceedings in the ordinary course of its business. Due to the inherent risks and uncertainties of the litigation process, we cannot predict the final outcome or timing of claims or legal proceedings. The Company records provisions for such claims when an outflow of resources is considered probable and a reliable estimate can be made. No such provisions have been recorded by the Company.

*U.S. Shareholder Class Action*

On April 19, 2022, a putative securities class action lawsuit was filed in the U.S. District Court for the Eastern District of New York against the Company, its CEO, and its former CFO, on behalf of a proposed class of purchasers of the Company's publicly traded securities during the period from February 16, 2021 through March 23, 2022. The complaint, which is captioned as Barnish v. Li-Cycle Holdings Corp., et al., 1:22-cv-02222 (E.D.N.Y.), alleges that the defendants issued false and misleading statements concerning Li-Cycle's business, which were revealed when Blue Orca Capital published a short seller report on March 24, 2022. The complaint seeks compensatory damages and an award of costs. The original complaint asserted claims under Sections 10(b) and 20(a) of the U.S. Securities Exchange Act of 1934 (the "Exchange Act"). On July 22, 2022, the court appointed The Lanigan Group, Inc. as lead plaintiff. On October 11, 2022, the lead plaintiff filed an amended complaint asserting claims pursuant to Section 14(a) of the Exchange Act and Sections 11 and 15 of the U.S. Securities Act of 1933 on behalf of a proposed class comprising: (a) all persons who were eligible to vote at Peridot Acquisition Corp.'s extraordinary general meeting held during August 2021, and (b) all persons who acquired Li-Cycle publicly traded securities pursuant to Li-Cycle's March 2021 Registration Statement. Unlike the original complaint, the amended complaint does not assert any claims under either Section 10(b) or Section 20(a) of the Exchange Act. The claims in the amended complaint are asserted against both the Company and certain individual defendants, including Li-Cycle's two Co-Founders, Li-Cycle's former CFO, two current directors of Li-Cycle (who were also directors and/or officers of Peridot Acquisition Corp. at the time of the Business Combination), and certain other directors or officers of Peridot Acquisition Corp. at the time of the Business Combination. On December 19, 2022, the Company and each of the individual defendants moved to dismiss the amended complaint in its entirety. The motion to dismiss is not yet fully briefed. The Company believes that the allegations in the amended complaint are without merit and intends to vigorously defend against this matter. No amounts have been recorded for any potential liability arising from this matter.

**19.&nbsp;&nbsp;&nbsp;&nbsp;Loss per share**

---

| | | | |
|:---|:---|:---|:---|
| For the years ended October 31, | **2022** | 2021 | 2020 |
| Total net loss | $**(53.7)** | $(226.6) | $(9.4) |
| Weighted average number of common shares (in millions) | **170.7** | 110.1 | 82.6 |
| **Basic and diluted loss per share** | $**(0.31)** | $(2.06) | $(0.11) |

---

For comparability, the stated weighted average number of common shares and the number of potential common shares have been scaled by the Business Combination exchange ratio of 1:39.91 for periods prior to the completion of the Business Combination on August 10, 2021.

Adjustments for diluted loss per share were not made for the twelve months ended October 31, 2022, 2021, and 2020 as they would be anti-dilutive in nature. The following table presents shares from instruments that could dilute basic loss per share in the future, but were not

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

included in the calculation of diluted loss per share because they are antidilutive for the periods presented:

---

| | | | |
|:---|:---|:---|:---|
| For the years ended October 31, | **2022** | 2021 | 2020 |
| Stock options | **4.5** | 5.3 | 5.3 |
| Warrants | **—** | 23.0 |  |
| Convertible debt | **29.4** | 7.5 |  |
| Restricted share units | **2.0** | 0.7 |  |
| | **35.9** | 36.5 | 5.3 |

---

**20. &nbsp;&nbsp;&nbsp;&nbsp;Segment reporting**

The consolidated financial information presented in these financial statements is reviewed regularly by the Company's chief operating decision maker ("CODM") for making strategic decisions, allocations resources and assessing performance. The information review by CODM for decision making purposes aligns with the information provided above in the statements of loss and comprehensive loss, financial position, and cash flows. The Corporation's CODM is its Chief Executive Officer.

During the twelve months ended October 31, 2022, the Company operated in Canada and the United States. The Company also began investing in future operations in Europe. Management has concluded that the customers, and the nature and method of distribution of goods and services delivered, if any, to these geographic regions are similar in nature. The risks and returns across the geographic regions are not dissimilar; therefore, the Company operates as a single operating segment.

The following is a summary of the Company's geographical information:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Canada | United States | Germany | Other | Total |
| Revenues |  |  |  |  |  |
| **Year ended October 31, 2022** | $**4.1** | $**9.3** | $**—** | $**—** | $**13.4** |
| Year ended October 31, 2021 | 3.0 | 4.3 |  |  | 7.3 |
| Year ended October 31, 2020 | 0.8 |  |  |  | 0.8 |
| Non-current assets |  |  |  |  |  |
| **As at October 31, 2022** | **26.8** | **161.4** | **10.7** | **2.5** | **201.4** |
| As at October 31, 2021 | 15.5 | 37.9 |  |  | 53.4 |
| As at October 31, 2020 | $3.4 | $6.1 | $— | $— | $9.5 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue is attributed to each geographical location based on location of sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company does not currently have active operations in any other geographical regions.

**21. &nbsp;&nbsp;&nbsp;&nbsp;Government funding**

The Company has received government grants and investment tax credits from the Government of Canada and the Government of Ontario for research and development activities, as set forth below:

---

| | | | |
|:---|:---|:---|:---|
| For the years ended October 31, | **2022** | 2021 | 2020 |
| Research and development expenses, gross | $**1.7** | $2.7 | $2.8 |
| Less: Government grants | **—** |  | (2.0) |
| **Research and development expenses, net** | $**1.7** | $2.7 | $0.8 |

---

In addition, for twelve months ended October 31, 2022, the Company has received $nil in other government grants recognized as an offset against employee salaries and benefits expenses (2021: $0.1 million, 2020: $0.2 million).

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

**22. Income taxes**

The recovery of income taxes differs from the amount obtained by applying the statutory Canadian Federal and Provincial income tax rates to the loss for the year as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| For the years ended October 31, | **2022** | **2022** | 2021 | 2021 | 2020 | 2020 |
| Net loss for the year before tax | **$** | **(53.7)** | $| (226.6) | $| (9.4) |
| Statutory tax rates | **26.5%** | **26.5%** | 26.5% | 26.5% | 26.5% | 26.5% |
|  | **(14.2)** | **(14.2)** | (60.0) | (60.0) | (2.5) | (2.5) |
| Change in unrecognized deferred tax amounts | **18.4** | **18.4** | 8.8 | 8.8 | 2.4 | 2.4 |
| Rate differential | **0.5** | **0.5** |  |  |  |  |
| Other | **0.1** | **0.1** |  |  |  |  |
| Non-deductible item and others | **(4.8)** | **(4.8)** | 51.2 | 51.2 | 0.1 | 0.1 |
| **Income tax expense** |  |  |  |  |  |  |

---

As of October 31, 2022, the Company has net operating losses of approximately $184.1 million (2021: $53.4 million) available to reduce net income for tax purposes in future years. Management believes the realization of the income tax benefits related to these losses and other potential deferred income tax assets is uncertain at this time. Accordingly, the Company has not recognized the deferred income tax assets in the consolidated financial statements.

As of October 31, 2022, the Company has aggregate non-capital losses for Canadian income tax purposes of approximately $153.2 million (2021: $48.7 million), that expire in the period 2037 to 2042. In addition, the Company has net operating losses for US income tax purposes of approximately $25.0 million (2021:$4.7 million) that carryforward indefinitely. The net operating losses for rest of the world income tax purposes consists of approximately $2.2 million which can be carried forward indefinitely and $3.6 million which will expire beginning 2029 to 2037. Management cannot assert that the realization of the income tax benefits related to these losses and other potential deferred income tax assets is more likely than not to be realized. Accordingly, the Company has not recognized the following deferred income tax assets in the consolidated financial statements:

---

| | | | |
|:---|:---|:---|:---|
| For the years ended October 31, | **2022** | 2021 | 2020 |
| Tax losses and credits carryforwards | $**48.6** | $14.3 | $3.8 |
| Share issuance costs | **10.1** | 12.6 |  |
| Convertible debt | **—** | 0.3 |  |
| Reserves and provisions | **0.1** | 0.2 | 0.1 |
| Other | **2.5** | 0.1 |  |
| Plant and equipment, due to differences in amortization | **(10.4)** | (2.7) | (0.2) |
| Convertible debt, due to differences in amortization | **(7.6)** |  |  |
| Right of use assets, net of lease liabilities | **0.5** | 0.6 | (0.1) |
| Total | $**43.8** | $25.4 | $3.6 |
| Deferred tax assets not recognized | $**(43.8)** | $(25.4) | $(3.6) |
| Deferred tax assets, net | **—** |  |  |

---

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

**23. Notes to the Consolidated Statement of Cash Flows**

As of October 31, 2022, the Company had cash on hand of $269.3 million (2021: $6.9 million) and cash equivalents in the form of short term guaranteed investment certificates of $309.0 million (2021: $590.0 million).

Changes in liabilities arising from financing activities comprise the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| For the year ended October 31, |  |  |  | **2022** |
|  | Lease liabilities | Restoration provisions | Convertible debt | Conversion feature of convertible debt |
| Balance, beginning of the year | $29.4 | $0.3 | $71.9 | $29.0 |
| **Cash changes:** |  |  |  |  |
| Repayments of lease liabilities | **(4.7)** | **—** | **—** | **—** |
| Repayment of loans payable | **—** | **—** | **—** | **—** |
| Proceeds from convertible debt | **—** | **—** | **152.5** | **46.2** |
| **Total changes from financing cash flows** | **(4.7)** | **—** | **152.5** | **46.2** |
| **Non-cash changes:** |  |  |  |  |
| New leases | **28.8** | **—** | **—** | **—** |
| Disposal | **(0.2)** | **—** | **—** | **—** |
| Additions to restoration provision | **—** | **0.1** | **—** | **—** |
| Accrued interest and accretion | **—** | **—** | **14.3** | **—** |
| Foreign exchange gain or (loss) | **(1.5)** | **—** | **—** | **—** |
| Fair value gain/loss on conversion feature of convertible debt | **—** | **—** | **—** | **(31.3)** |
| Accrued interest paid in kind | **—** | **—** | **5.9** | **—** |
| **Total non-cash changes** | $**27.1** | $**0.1** | $**20.2** | $**(31.3)** |
| **Balance, end of the year** | $**51.8** | $**0.4** | $**244.6** | $**43.9** |

---

**24. Subsequent events**

*Change in year-end*

On December 21, 2022, the Company announced a change in its financial year end from October 31 to December 31. The change is being made to better align Li-Cycle's financial reporting calendar with peer group companies. As a result, by March 31, 2023, Li-Cycle will file a transition report on Form 20-F that will provide financial statements for the two-month period from November 1, 2022 through December 31, 2022. Li-Cycle's next financial year will cover the period from January 1, 2023 to December 31, 2023.

*Sublease agreement*

On January 12, 2023, the Company entered into a sublease agreement (the "Hub Warehouse Agreement") with Pike Conductor DEV 1, LLC (the "Landlord") outlining the parties' respective rights and obligations with respect to the construction, financing and leasing of a warehouse and administrative building (the "Building") for the Rochester Hub on leased property of the Landlord (the "Property"). As outlined in the Hub Warehouse Agreement, the Company will directly advance up to a maximum of $58.6 million to the Landlord for the design, engineering and construction of the Building, and as at October 31, 2022, the Company had advanced $27.0 million of the $58.6 million maximum. Upon the successful closing of the Landlord's financing transaction, the Landlord will reimburse the Company for a portion of its advances, such that the Company will have made a net investment of $14.5 million for leasehold improvements.

Once construction of the Building is complete, the Landlord will lease the Building and Property (together, the "Premises") to the Company. The term of the Premises lease will be the earlier of the issuance of a certificate of occupancy for the Building or September 1, 2023 and (subject to renewal) may extend for up to 48 years. In the event that the Landlord does not complete its

------

**Li-Cycle Holdings Corp.**

**Notes to the consolidated financial statements**

All dollar amounts presented are expressed in millions of US dollars except share and per share amounts<br>

financing transaction by July 1, 2023, the Hub Warehouse Agreement will be amended and restated as a ground lease agreement for the Property.

## Exhibit 99.2

**Table of Contents** 

---

| | |
|:---|:---|
| Title | Page |
| Summary | 2 |
| Company Overview | 2 |
| Comparability of Financial Information | 3 |
| Key Highlights and Strategic Priorities | 4 |
| Select Financial Information | 5 |
| Financial Results | 5 |
| Operational Updates | 8 |
| Liquidity and Capital Resources | 11 |
| Contractual Obligations and Commitments | 14 |
| Quantitative and Qualitative Disclosures about Market Risk | 14 |
| Key Factors Affecting Li-Cycle's Performance | 15 |
| Related Party Transactions | 17 |
| Outstanding Share Data | 17 |
| Summary of Quarterly Results | 18 |
| 2021 Financial Results | 18 |
| Off-Balance Sheet Arrangements | 19 |
| Significant Accounting Policies and Critical Estimates | 20 |
| Disclosure Controls and Procedures | 22 |
| Internal Control Over Financial Reporting | 22 |
| Non-IFRS Measures | 23 |
| Cautionary Note Regarding Forward-Looking Statements | 24 |

---

------

**LI-CYCLE HOLDINGS CORP. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

The following discussion and analysis of financial condition and results of operations ("**MD&A**") is dated February 6, 2023 and provides information which the management of Li-Cycle Holdings Corp. ("**Li-Cycle**" or the "**Company**") believes is relevant to an assessment and understanding of the consolidated results of operations and financial condition of Li-Cycle for the year ended October 31, 2022 and 2021. This MD&A should be read together with Li-Cycle's audited historical consolidated financial statements and related notes. In addition to historical financial information, this MD&A contains forward-looking statements based upon current expectations that involve risks, uncertainties and assumptions. For more information about forward-looking statements, refer to the section entitled "Cautionary Note Regarding Forward-Looking Statements". Actual results and timing of selected events may differ materially from those anticipated by these forward-looking statements as a result of various factors, including those set forth under the section entitled "Key Factors Affecting Li-Cycle's Performance" and under "Item 3. Key Information—D. Risk Factors" included in the annual report on Form 20-F for the year ended October 31, 2022 (the "**Annual Report**"). References in this section to the "Company", or "Li-Cycle" refer to Li-Cycle Corp. and its subsidiaries prior to the consummation of the business combination it completed with Peridot Acquisition Corp. on August 10, 2021 (the "**Business Combination**"), and to Li-Cycle Holdings Corp. and its subsidiaries subsequent to the Business Combination, unless the context otherwise requires or indicates otherwise.

Li-Cycle's annual consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("**IFRS**"), as issued by the International Accounting Standards Board ("**IASB**"). All amounts are in U.S. dollars except as otherwise indicated. Li-Cycle conducts business through one operating segment. For more information about Li-Cycle's significant accounting policies, refer to Note 2 in the accompanying consolidated financial statements of Li-Cycle for the year ended October 31, 2022.

Certain figures, such as interest rates and other percentages included in this MD&A, have been rounded for ease of presentation. Percentage figures included in this MD&A have in all cases been calculated on the basis of the amounts prior to rounding. For this reason, percentage amounts may vary slightly from those obtained by performing the same calculations using the figures in Li-Cycle's financial statements or in the associated text. Certain other amounts that appear in this MD&A may similarly not sum due to rounding.

On December 21, 2022, Li-Cycle announced that it would be changing its financial year end from October 31 to December 31. This change is being made to better align Li-Cycle's financial reporting calendar with peer companies. As a result, by March 31, 2023, Li-Cycle will file a transition report on Form 20-F that will provide financial statements for the two-month period from November 1, 2022 through December 31, 2022. Li-Cycle's next financial year will cover the period from January 1, 2023 to December 31, 2023.

**Company Overview** 

Li-Cycle is an industry leader in lithium-ion battery ("**LIB**") resource recovery and the leading LIB recycler in North America. When Li-Cycle refers to itself as the leading LIB recycler in North America, it is referring to its status based on installed permitted capacity for LIB recycling measured in tonnes per year. The Company's proprietary "Spoke & Hub" recycling and resource recovery process is designed (a) at its Spokes, to process battery manufacturing scrap and end-of-life batteries to produce "black mass" and other intermediate products, and (b) at its Hubs, to process black mass to produce battery grade materials, including nickel sulphate, cobalt sulphate, and lithium carbonate. In 2022, the Company started production of certain products analogous to black mass that have a similar metal content, and, as a result, the Company now tracks its production using a unit of measure called black mass and black mass equivalents ("**Black Mass & Equivalents**" or "**BM&E**"). Li-Cycle has a market-leading position in North America through its four operational Spokes in Kingston, Ontario (the "**Ontario Spoke**"), Rochester, New York (the "**New York Spoke**"), Gilbert, Arizona (the "**Arizona Spoke**") and Tuscaloosa, Alabama (the "**Alabama Spoke**"). The Company is currently developing its first commercial-scale Hub in Rochester, New York (the "**Rochester Hub**"). Li-Cycle is also developing new Spokes in Europe, including in Magdeburg, Germany (the "**Germany Spoke**"), which is expected to start operations in 2023, and in Moss, Norway (the "**Norway Spoke**"). Refer to the section entitled "Operational Updates" for additional details.

------

Until 2020, Li-Cycle was a development stage company with no commercial revenues. For the twelve months ended October 31, 2022, Li-Cycle's revenue, net loss, and Adjusted EBITDA<sup>1</sup> loss were $13.4 million, $53.7 million, and $100.7 million, respectively.

To date, Li-Cycle has financed its operations primarily through: (i) proceeds received in connection with the Business Combination; and (ii) private placements of Li-Cycle securities (including convertible notes and subscriptions). Refer to the section entitled "Liquidity and Capital Resources" for definitions and additional details.

**The Business Combination**

On August 10, 2021, Li-Cycle Corp., Li-Cycle Holdings Corp. (a wholly-owned subsidiary of Li-Cycle prior to the Business Combination) ("**Old Li-Cycle Holdings**") and Peridot Acquisition Corp. ("**Peridot**") completed their previously announced Business Combination.

Pursuant to the terms of the Business Combination, on the closing date of the Business Combination, (i) Peridot and Old Li-Cycle Holdings amalgamated (the "**Amalgamation**"), and in connection therewith, the Class A common shares and warrants to purchase Class A common shares of Peridot converted into an equivalent number of shares and warrants of the amalgamated entity, Li-Cycle Holdings Corp., and the common share in Old Li-Cycle Holdings held by Li-Cycle was exchanged for a share of Li-Cycle Holdings Corp.; (ii) the share of Li-Cycle Holdings Corp. held by Li-Cycle was purchased for cancellation by Li-Cycle Holdings Corp. for cash equal to the subscription price for the common share in Old Li-Cycle Holdings for which such share was exchanged pursuant to the Amalgamation; (iii) the preferred shares of Li-Cycle converted into common shares of Li-Cycle; and (iv) Li-Cycle Holdings Corp. acquired all of the issued and outstanding common shares of Li-Cycle from Li-Cycle's shareholders (including Li-Cycle common shares issued upon exercise, cancellation, exchange or settlement of all issued and outstanding equity awards (whether vested or unvested), including pursuant to the Business Combination, but excluding any equity awards that were cancelled and exchanged for equity awards of Li-Cycle Holdings Corp. and remained outstanding on the day following the closing date of the Business Combination) in exchange for common shares of Li-Cycle Holdings Corp. Pursuant to the Business Combination, Li-Cycle Corp. became a wholly-owned subsidiary of Li-Cycle Holdings Corp.

Upon the closing of the Business Combination and a concurrent $315.5 million private placement of common shares (the "**PIPE Financing**"), the combined company received $581.9 million of gross transaction proceeds, before deduction of $29.6 million of Peridot's transaction costs and $27.0 million of Li-Cycle's transaction costs.

**Comparability of Financial Information** 

Li-Cycle's future results of operations and financial position may not be comparable to historical results as a result of the Business Combination and the factors described below, among other things.

Li-Cycle included certain projected financial information in the proxy statement/prospectus on Form F-4 dated July 15, 2021 and filed with the U.S. Securities and Exchange Commission (the "**SEC**") in connection with the Business Combination (as amended, the "**Proxy/Registration Statement**"), which information was also incorporated by reference in Li-Cycle's non-offering final prospectus dated August 10, 2021 filed with the Ontario Securities Commission (the "**Canadian Prospectus**") and Shell Company Report on Form 20-F filed with the SEC.

As a result of the developments described below, the assumptions underlying the projected financial information included in the Proxy/Registration Statement and the Canadian Prospectus, including a number of assumptions regarding capital expenditures and the timing of the roll-out of new operational facilities, no longer reflect a reasonable basis on which to project the Company's future results, and therefore those projections should not be relied on as indicative of future results. Demand for LIB recycling has continued to exceed its internal projections and, in order to meet this growing demand, the Company decided to increase and accelerate its investment in the build-out of its recycling capacity in certain respects. For example, since the date of effectiveness of the Proxy/Registration Statement and the date of the Canadian Prospectus, respectively, the Company has, among

<sup>1</sup>Adjusted EBITDA is a non-IFRS financial measure and does not have a standardized meaning under IFRS. Refer to the section entitled "Non-IFRS Measures" in this MD&A for more details, including a reconciliation to the most comparable IFRS financial measure.

------

other things, opened the Arizona Spoke and Alabama Spokes, and announced the development of other Spoke projects, increasing its processing capacity beyond that of the Company's previous plans and projections. Li-Cycle has also announced the increase of expected processing capacity and development costs at its Rochester Hub. The Company's actual results could differ substantially from the projected financial information contained in the Proxy/Registration Statement and the Canadian Prospectus.

**Key Highlights and Strategic Priorities**

*Highlights for the year ended October 31, 2022*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Strengthened balance sheet with $250 million in investment proceeds* – Li-Cycle raised $200.0 million through a convertible note issued to Glencore Ltd. ("**Glencore**") (the "**Glencore Convertible Note**") and $50.0 million through an equity investment from LG Chem, Ltd. ("**LGC**") and LG Energy Solution, Ltd. ("**LGES**"), in addition to the $100.0 million raised in fiscal 2021 from the KSP Convertible Note (as defined below under *Debt Obligations - KSP Convertible Notes*). Refer to the section entitled "Liquidity and Capital Resources" for further details on financing received in fiscal 2022;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Advancement of the Rochester Hub, expected to be the first hydrometallurgical battery resource recovery facility in North America* – Li-Cycle has made significant progress on the construction and development of the Rochester Hub to date, including the achievement of key engineering, permitting, procurement and construction milestones and is on track to initiate commissioning in stages in late calendar 2023. Refer to the section entitled "Operational Updates" for further details;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Strategic long-term commercial agreements* – In fiscal 2022, Li-Cycle entered into long-term commercial agreements with strategic global participants in the battery materials supply chain. Offtake agreements for a portion of the nickel sulphate to be produced by the Rochester Hub were signed in April 2022 with LGC and LGES. Several long-term commercial agreements with Glencore. were signed in May 2022, including to secure the supply of LIB and black mass, as well as for offtake of certain production from the Rochester Hub and future Hubs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Continued development and expansion of Spoke network in North America* – Li-Cycle operationalized the Arizona Spoke and the Alabama Spoke, and added ancillary processing lines at its Arizona and New York Spokes, increasing total North American capacity to more than 50,000 tonnes of LIB input per year from 18,000 tonnes in 2021. Refer to the section entitled "Operational Updates" for additional details on Spoke capacity. The Company produced approximately 4,023 tonnes of Black Mass & Equivalents for the year ended October 31, 2022, exceeding the revised annual guidance of 3,500 - 3,800 tonnes.

*Objectives and focus for the year ending December 31, 2023*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Capitalizing on strong secular market and government policy* – The U.S. Inflation Reduction Act of 2022 favors the development of a domestic electric vehicle ("**EV**") supply chain which will help the Company as a U.S. domestic operator. In addition, growing mega-factory investments in North America and globally are expected to drive significant increases in the Company's total addressable market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Advancing first mover roll-out of the Spoke & Hub network in North America and Europe* – The Rochester Hub is on track to commence commissioning in stages in late calendar 2023. The Company is also scheduled to open its first European Spoke in calendar 2023. The Company expects to continue to add key commercial contracts underpinning its investments in both North America and Europe;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Funding flexibility and building further balance sheet strength* - The Company intends to pursue potential debt financing options from both traditional and government sources in support of future growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Optimizing European asset rollout plan –* Li-Cycle is redirecting 10,000 tonnes of the planned Norway Spoke processing capacity to Germany, to meet customer demand and increase operational efficiencies. The Germany Spoke will now have total capacity of 30,000 tonnes of LIB input per year including a

------

second main line with capacity to process 10,000 tonnes of LIB per year and ancillary processing. Design work for the Germany Spoke and warehouse building have been completed. Construction is on track for both main lines of the Germany Spoke being commissioned in the second half of calendar 2023. Refer to the section entitled "Operational Updates" for additional details on the Company's Spoke network rollout plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Maximizing significant lithium value within black mass* – The lithium content within the Black Mass & Equivalents has no payable value under the Company's current third-party sales contracts. To unlock that value, which has increased in the current market context, Li-Cycle is planning to gradually shift to a strategy of retaining BM&E production for future internal use as feedstock at the Rochester Hub, which is on track to commence commissioning in stages in late calendar 2023. The Rochester Hub will produce battery grade lithium carbonate, among other battery grade materials, from the Company's BM&E feedstock and the sale of these finished products is expected to unlock the additional metal value contained within the Company's BM&E.

**Select Financial Information**

---

| | | | |
|:---|:---|:---|:---|
| $ millions, except for per share data, for the year ended October 31, | **2022** | 2021 | 2020 |
| &nbsp;&nbsp;&nbsp;Revenue | $**13.4** | $7.3 | $0.8 |
| &nbsp;&nbsp;&nbsp;Loss from operations | **(111.2)** | (31.9) | (9.2) |
| &nbsp;&nbsp;&nbsp;Net loss | **(53.7)** | (226.6) | (9.4) |
| &nbsp;&nbsp;&nbsp;Loss per common share - basic and diluted | **(0.31)** | (2.06) | (0.11) |
| &nbsp;&nbsp;&nbsp;Total assets | $**882.3** | $665.2 | $12.2 |
| &nbsp;&nbsp;&nbsp;Total non-current financial liabilities | **335.5** | 209.9 | 4.1 |

---

**Financial Results**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | | **Twelve months ended** | **Twelve months ended** | |
| | **October 31,** | **October 31,** | | **October 31,** | **October 31,** | |
| $ millions, except per share data | **2022** | 2021 | Change | **2022** | 2021 | Change |
| *Financial highlights* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenues | $**3.0** | $4.4 | $(1.4) | $**13.4** | $7.3 | $6.1 |
| &nbsp;&nbsp;&nbsp;Operating expenses | **(39.4)** | (18.5) | (20.9) | **(124.6)** | (39.2) | (85.4) |
| &nbsp;&nbsp;&nbsp;Other income (expense) | **2.5** | (190.8) | 193.3 | **57.5** | (194.7) | 252.2 |
| &nbsp;&nbsp;&nbsp;Net loss | **(33.9)** | (204.9) | 171.0 | **(53.7)** | (226.6) | 172.9 |
| &nbsp;&nbsp;&nbsp;Net loss attributable to the Shareholders of Li-Cycle Holdings Corp. | **(33.9)** | (204.9) | 171.0 | **(53.6)** | (226.6) | 173.0 |
| &nbsp;&nbsp;&nbsp;Adjusted EBITDA | **(32.6)** | (11.7) | (20.9) | **(100.7)** | (26.2) | (74.5) |
| &nbsp;&nbsp;&nbsp;Loss per common share - basic and diluted | $**(0.19)** | $(1.31) | $1.12 | $**(0.31)** | $(2.06) | $1.75 |
| *Cash* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash balance | $**578.3** | $596.9 | $(18.6) | $**578.3** | $596.9 | $(18.6) |
| &nbsp;&nbsp;&nbsp;Cash used in operating activities | **(8.9)** | (8.0) | (0.9) | **(72.6)** | (24.6) | (48.0) |

---

*Revenue*

Li-Cycle recognizes revenue from: (i) sales of intermediate products from Li-Cycle's Spokes, being Black Mass & Equivalents, and shredded metal; and (ii) providing services relating to recycling of LIB, which includes coordination of logistics and destruction of batteries. Sales of intermediate products are presented net of fair value losses recognized in the period. Refer to the section entitled "Significant Accounting Policies and Critical Estimates" for additional details on the Company's revenue recognition policy.

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended October 31,** | **Three months ended October 31,** | **Twelve months ended October 31,** | **Twelve months ended October 31,** |
| $ millions, except sales volume | **2022** | 2021 | **2022** | 2021 |
| Product revenue recognized in the period | $**3.1** | $4.0 | $**14.3** | $6.1 |
| Recycling service revenue recognized in the period | **0.4** | 0.1 | **1.3** | 0.4 |
| Revenue before FMV adjustments | **3.5** | 4.1 | **15.6** | 6.5 |
| Fair value pricing adjustments | **(0.5)** | 0.3 | **(2.2)** | 0.8 |
| Revenue | $**3.0** | $4.4 | $**13.4** | $7.3 |
| Tonnes of Black Mass & Equivalents sold | **1302** | 1092 | **3679** | 1824 |

---

For the three and twelve months ended October 31, 2022, revenues were $3.0 and $13.4 million, respectively, compared to $4.4 million and $7.3 million in the corresponding periods of 2021. The Company's revenues are impacted by market prices of certain constituent metals contained in its products, notably cobalt and nickel. The primary driver for the decrease in revenue for the three months ended October 31, 2022 and the change in fair value pricing adjustments for the same period was a decrease in commodity prices for cobalt, offset by a small increase in nickel prices. Sales of Black Mass & Equivalents were 1,302 tonnes and 3,679 tonnes, respectively, in the three and twelve months ended October 31, 2022, compared to 1,092 tonnes and 1,824 tonnes in the corresponding period of 2021. The increase in product revenue for the year was primarily attributable to increased production of BM&E, directly related to the ramp up of operations at the Company's Spoke facilities. The ramp up of operations included the Arizona Spoke, which came on line in the second half of the fiscal year, and the Alabama Spoke, which came on line in October 2022.

The following table sets out the period end and annual average commodity prices for cobalt and nickel:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Market price per tonne | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Market price per tonne | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Market price per tonne | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average market price per tonne | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average market price per tonne |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As at October 31, | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As at October 31, | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As at October 31, | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Twelve months ended October 31, | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Twelve months ended October 31, |
|  | **2022** | 2021 | 2020 | **2022** | 2021 |
| Cobalt | $**53462** | $60407 | $32500 | $**70328** | $47009 |
| Nickel | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21710** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19300 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15256 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24413** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18030 |

---

As of October 31, 2022, 4,202 metric tonnes of Black Mass & Equivalents are subject to fair value pricing adjustments. This amount will continue to grow as sales volume increases. The table below shows the expected settlement dates for the metric tonnes of BM&E subject to fair value price adjustments by quarter for the last twelve months:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Expected settlement dates for metric tonnes subject to fair value pricing adjustments | Expected settlement dates for metric tonnes subject to fair value pricing adjustments | Expected settlement dates for metric tonnes subject to fair value pricing adjustments | Expected settlement dates for metric tonnes subject to fair value pricing adjustments | Expected settlement dates for metric tonnes subject to fair value pricing adjustments |
| | **October 31, 2022** | July 31, 2022 | April 30, 2022 | January 31, 2022 | October 31, 2021 |
| 271+ days | **1816** | 1559 | 1358 | 1088 | 1072 |
| 181-270 days | **1178** | 678 | 530 | 344 | 78 |
| 91-180 days | **678** | 530 | 344 | 270 | 376 |
| 1-90 days | **530** | 445 | 367 | 394 | 212 |
| Total metric tonnes | **4202** | 3212 | 2599 | 2096 | 1738 |

---

*Operating expenses*

Primary expense categories for Li-Cycle include employee salaries and benefits and share-based compensation (together, "**personnel costs**"), office, administrative and travel, professional fees (which include consulting and other advisor fees), raw materials and supplies, depreciation, and plant facilities. Personnel expenses are presented net of any employee and share based compensation capitalized to assets under construction.

For the three and twelve months ended October 31, 2022, operating expenses increased by $20.9 million and $85.4 million, respectively, compared to the corresponding periods of 2021. The main drivers of the increases in the three and twelve months ended October 31, 2022 compared with the corresponding periods in 2021 were increases in personnel costs ($4.7 million and $38.0 million) related to the addition of corporate, operational, and

------

engineering personnel as Li-Cycle continued to expand its Spoke operations, increases in office, administrative, and travel costs ($3.5 million and $13.8 million) which were driven by additional insurance costs and coverage, increased levels of travel reflecting the Company's expanding global footprint and a return to pre-pandemic frequency of travel, and ongoing implementation costs for an enterprise resource planning system, and increases in raw materials and supplies ($7.4 million and $12.2 million) which were primarily driven by increased volume of production in the period as a result of additional processing capacity in the Spoke network coupled with higher average material costs in the three and twelve months ended October 31, 2022. Inventory costs (inclusive of raw materials and conversion costs) exceeded the net realizable value ("**NRV**") of Black Mass & Equivalents, leading to inventory write downs of $3.8 million and $4.8 million, respectively, in the three and twelve months ended October 31, 2022, compared to $0.5 million and $0.6 million in the prior year. The NRV of BM&E inventory is based on cobalt and nickel content with no value assigned to lithium. The increased level of professional fees, plant facilities and depreciation relate to the execution of the Company's growth plans including the impact of additional Company operating sites compared to the corresponding periods of 2021.

*Other income (expense)*

Other income (expense) consists of interest income, foreign exchange gain or loss and interest expense (together, "**Interest expense and other costs**"), and fair value gain (loss) on financial instruments. Interest expense represents interest paid in kind, actual cash interest costs incurred and any accrued interest payable at a future date, net of interest costs capitalized for qualifying assets if they are directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset.

For the three and twelve months ended October 31, 2022, other income increased by $193.3 million and $252.2 million, respectively, compared to the corresponding periods of 2021. The main drivers of the increases compared with the corresponding periods in 2021 were due to losses in the prior year on the transfer of more consideration than the fair value of assets acquired and liabilities assumed in the Business Combination ($152.7 million and $152.7 million), fair value gains on financial instruments ($41.0 million and $105.8 million), and interest income ($4.3 million and $6.9 million), partly offset by an increase in interest expense and other costs ($4.7 million and $13.2 million). The decrease in fair value over consideration transferred relates to the one time nature of the Business Combination in the last fiscal quarter of 2021 which resulted in a loss of $152.7 million. The increases in fair value gains were primarily driven by fair value revaluations of the conversion feature of convertible debt and warrants. The increase in interest expense was due to interest accrued on the Company's convertible debt, comprised of the KSP Convertible Note and the Glencore Convertible Note. The increase reflects interest related to the Glencore Convertible Note, which was issued in May 2022 and a full year of interest for the KSP Convertible Note, compared to two months of interest for the Initial KSP Convertible Note in the corresponding periods of 2021. Refer to the section entitled "Liquidity and Capital Resources" for further details on the Company's convertible debt. Netted in the above expenses were $1.8 million and $5.2 million of interest costs which were capitalized in the three and twelve months ended October 31, 2022 related to borrowings directly attributable to qualifying Rochester Hub assets (2021: $nil). The increase in interest income reflect interest earned on short-term cash deposits.

*Net profit (loss) and Adjusted EBITDA*

Net loss was $33.9 million and $53.7 million in the three and twelve months ended October 31, 2022, compared to a net loss of $204.9 million and $226.6 million in the three and twelve months ended October 31, 2021. Net loss for the three and twelve months ended October 31, 2022 were driven by the factors discussed above. In addition, the results for the three and twelve months ended October 31, 2021 included a $152.7 million loss related to the excess of fair value over consideration transferred in relation to the Business Combination. Adjusted EBITDA loss was $32.6 million and $100.7 million in the three and twelve months ended October 31, 2022, compared to $11.7 million and $26.2 million in the corresponding periods of 2021. The primary difference between Adjusted EBITDA and net loss for the year is the exclusion of fair value gains on financial instruments. A reconciliation of Adjusted EBITDA loss to Net profit (loss) is provided in the section "*Non-IFRS Measures*" below.

*Cash and cash equivalents* 

Cash and cash equivalents were $578.3 million as at October 31, 2022 compared to $596.9 million as at October 31, 2021. The Company raised a total of $250.0 million in funding during the year from the Glencore Convertible Note issued on May 31, 2022, and the equity investment from LGC and LGES on May 11, 2022. The

------

Company incurred capital expenditure of $190.1 million in the year, primarily comprising purchases of equipment and construction materials for the Rochester Hub, the Arizona Spoke and the Alabama Spoke in addition to outflows for ongoing operating expenses. Refer to the section entitled "Liquidity and Capital Resources" for further details of the Company's cash flows.

*Cash flows used in operational activities*

For the three and twelve months ended October 31, 2022, cash flows used by operating activities were approximately $8.9 million and $72.6 million, respectively, and were primarily driven by the growth and expansion of Li-Cycle's operations and commercial footprint and the ramp up of operations with the addition of two operational Spokes in the year.

**Operational Updates**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | | **Twelve months ended** | **Twelve months ended** | |
| | **October 31,** | **October 31,** | | **October 31,** | **October 31,** | |
| $ millions, except production data in tonnes | **2022** | 2021 | Change | **2022** | 2021 | Change |
| *Operational Highlights* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Capital Expenditure | $**60.4** | $9.4 | *543%* | $**190.1** | $21.4 | *788%* |
| &nbsp;&nbsp;&nbsp;Production - Black Mass & Equivalents | **1640** | 811 | *102%* | **4023** | 1880 | *114%* |

---

*Capital expenditure*

Capital Expenditures for the three and twelve months ended October 31, 2022 were $60.4 million and $190.1 million, respectively, compared to $9.4 million and $21.4 million in the three and twelve months ended October 31, 2021. Capital expenditures for the three and twelve months ended October 31, 2022 were primarily driven by purchases of equipment and construction materials for the Rochester Hub of $49.6 million and $140.8 million, respectively. Capital spend for detailed engineering, equipment and installation and facility related expenditures for the Company's Spokes for the three and twelve months ended October 31, 2022 were $10.8 million and $49.3 million, respectively, and include the Arizona and Alabama Spoke as well as other Spoke projects in development.

Included in the capital expenditures for the three and twelve months ended October 31, 2022 are $3.7 million and $6.8 million, respectively, in personnel costs, which were capitalized to assets under construction as they are costs that are directly attributable to bringing the Company's Rochester Hub and Spoke development projects to a condition and location necessary for the assets to be capable of operating in the manner intended by management (2021: $nil).

*Production – Black mass & equivalents* 

The Company produced 1,640 tonnes and 4,023 tonnes of Black Mass & Equivalents in the three and twelve months ended October 31, 2022, compared to 811 tonnes and 1,880 tonnes in the three and twelve months ended October 31, 2021. The Company's production for the twelve months ended October 31, 2022 exceeded the revised annual guidance of 3,500 - 3,800 tonnes. The increase in production of BM&E was primarily attributable to the ramp up of operations at the Company's Spoke facilities; the Arizona Spoke and the Alabama Spoke came on line in the second half of the fiscal year, and the Alabama Spoke started operations in October 2022, as well as added ancillary processing capacity at the New York Spoke.

*Capital Projects*

The Company has a major design and build project underway to establish its first Hub and is developing and evolving a network of Spokes.

*Rochester Hub* 

------

Li-Cycle's first commercial Hub is currently under construction in Rochester, New York. Li-Cycle's Spoke facilities in North America will be the primary suppliers of Black Mass & Equivalents feedstock for the Rochester Hub. The location for the Rochester Hub was specifically selected due to the nature of the infrastructure available at the site, including utilities and road/rail networks.

Li-Cycle completed a definitive feasibility study for the Rochester Hub in December 2021. Based on the definitive feasibility study, Li-Cycle expects the Rochester Hub will have nameplate input capacity to process 35,000 tonnes of Black Mass & Equivalents annually (equivalent to approximately 90,000 tonnes or 18 GWh of LIB equivalent feed annually). The facility is expected to have an output capacity of battery grade materials of approximately 42,000 to 48,000 tonnes per annum of nickel sulphate, 7,500 to 8,500 tonnes per annum of lithium carbonate and 6,500 to 7,500 tonnes per annum of cobalt sulphate.

Li-Cycle has engaged Hatch Ltd. as its engineering and procurement contractor for the Rochester Hub. Hatch Ltd. is also providing select construction management services such as onsite field engineering support and overall project scheduling for the project. Li-Cycle has engaged MasTec Inc. as its general contractor. Procurement activities are well advanced and have commenced on all equipment and select construction materials for the Rochester Hub. Site works and construction commenced on the Rochester Hub site in January 2022. The Rochester Hub has made significant progress to date on key engineering, procurement and construction milestones and is expected to initiate commissioning in stages in late calendar 2023.

Li-Cycle has been granted a special use permit for hydrometallurgical facility operations, overall site plan approval, and a special use permit with an area variance for hazardous material storage tanks at the Rochester Hub by the Town of Greece, New York, all subject to certain conditions. Li-Cycle will continue to apply for construction-related building permits from the Town of Greece as plans for specific structures become finalized. Li-Cycle completed the New York State Environmental Quality Review Act process for the Rochester Hub in November 2021. The New York State Department of Environmental Conservation ("**NYSDEC**") issued a state facility air permit for the expected emissions from the Rochester Hub in March 2022. A general permit for stormwater discharges from construction activity, and a related stormwater pollution prevention plan that meets criteria set forth by the NYSDEC, is also in place for the Rochester Hub. The remaining anticipated regulatory approvals required to complete and operate the Rochester Hub consist of the granting by the NYSDEC of a general permit for stormwater discharges associated with industrial activity, a chemical bulk storage registration and a petroleum bulk storage registration.

Li-Cycle expects that the Rochester Hub will result in a workforce of approximately 270 employees at its operations.

*Spoke Network*

Li-Cycle currently has four operational Spokes in North America: the Ontario Spoke, the New York Spoke, the Arizona Spoke and the Alabama Spoke. As of October 31, 2022, both the Arizona Spoke and the Alabama Spoke were in the ramp-up phase. The Company is also continuing to add capacity to its Spoke network with new development and expansions, as described below.

The Company continues to innovate its Spoke technology with each Spoke roll out, incorporating upgrades and improvements from the development of the preceding Spokes. Since the build and installation of the Company's first Spoke (the "**Generation 1**" Ontario Spoke in 2020), the Company has significantly evolved its Spoke design. The Ontario Spoke was a stick build format with a single shredder design. The Company's next Spoke facility (the "**Generation 2**" New York Spoke) was a modular build with increased recovery rates, including added ancillary processing capacity. Both the Arizona Spoke and the Alabama Spoke are "**Generation 3**" Spokes and incorporates a modular build, multi-stage shredding with capabilities to shred full-pack EV batteries, further increases to recovery rates, and optionality for multiple main lines and flex capacity with ancillary processing.

The table below outlines current available Spoke capacity and additional calendar 2023 expected Spoke capacity, by Spoke location:

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | Ancillary Processing | Ancillary Processing | Ancillary Processing | |
| Annual tonnes of material processed | **Main Line¹** | **Dry Shredding²** | **Powder Processing³** | **Baling**<sup>4</sup> | **Total Processing Capacity** |
| Ontario Spoke | 5000 |  |  |  | 5000 |
| New York Spoke | 5000 | 5000 | 3000 | 5000 | 18000 |
| Arizona Spoke | 10000 | 5000 | 3000 |  | 18000 |
| Alabama Spoke | 10000 |  |  |  | 10000 |
| *Current available capacity* | *30000* | *10000* | *6000* | *5000* | *51000* |
| Germany Spoke | 20000 | 5000 |  | 5000 | 30000 |
| ***2023 expected capacity*** | ***50000*** | ***15000*** | ***6000*** | ***10000*** | ***81000*** |

---

Notes

¹ Processes materials using Li-Cycle's patented submerged shredding process or "wet shredding" specifically for battery materials that contain electrolyte and have risk of thermal runaway.

² Processes materials that don't contain electrolyte with less risk of thermal runaway, such as electrode foils.

³ Processes electrode powders to minimize dusting in downstream processes.

<sup>4</sup> Processes electrode foils into formed cubes for optimizing logistics and downstream processing.

*Germany Spoke*

In 2022, Li-Cycle announced the development of a European Spoke to be based in Magdeburg, Germany, approximately 160 kilometers from Berlin. The Germany Spoke was planned to have an initial recycling capacity of at least 10,000 tonnes (2 GWh equivalent) per year, with the first main line expected to be operational in 2023. To meet customer demand and increase cost efficiencies, Li-Cycle now plans to install a second main line with capacity of 10,000 tonnes (2 GWh equivalent) per year in Germany by the end of calendar 2023. In addition, the Germany Spoke is expected to have capacity of 10,000 tonnes per year for ancillary processing.

*Norway Spoke*

In 2022, Li-Cycle entered into a joint venture agreement with ECO STOR AS ("**ECO STOR**") and Morrow Batteries AS ("**Morrow**") to form Li-Cycle Norway AS for the purpose of constructing the Norway Spoke. Li-Cycle is the majority owner of Li-Cycle Norway AS, with ECO STOR and Morrow being minority owners and Nordic-headquartered strategic partners. The Norway Spoke will be a Generation 3 Spoke, expected to have a main line recycling capacity of 10,000 tonnes (2 GWh equivalent). The Company has leased a site in Moss, Norway, approximately 60 kilometers from Oslo, for this operation, and the building is currently under construction. To prioritize the expansion plans for the Germany Spoke, the Company will initially use the Norway Spoke as a consolidation and warehouse facility, with the installation of a Generation 3 Spoke line and start of operations at this facility now planned for 2024.

*Ohio Spoke*

In 2022, Li-Cycle announced the development of the Ohio Spoke on site at the Ultium Cells LLC ("**Ultium**") battery cell manufacturing mega-factory in Warren, Ohio. Ultium announced that it would construct a new building for the Ohio Spoke, where Li-Cycle could install and operate its proprietary Spoke technology and equipment. Initial plans for the Ohio Spoke included recycling capacity of 15,000 tonnes (3 GWh equivalent) per year and with operations to commence in 2023. Based on Li-Cycle's overall Spoke plan, which prioritizes the fastest growing electrification demand centers and prudently directing capital, the Ohio Spoke has been deferred. Li-Cycle does not expect the Ohio Spoke to be operational in 2023.

*Other Spoke Updates* 

Li-Cycle completed and operationalized its new Spokes in Arizona and Alabama in 2022. The costs to construct, commission and commence operations for the Arizona and Alabama Spokes were in total approximately $4.0 million higher than original estimates, due primarily to extended commissioning periods for these facilities, which were the first Generation 3 Spokes. The improvements developed through the commissioning process for these Spokes are expected to benefit the Company's future Generation 3 Spoke projects.

------

Li-Cycle completed improvements to its New York Spoke by the end of calendar 2022 including upgrading of the shredder and the addition of baling to supplement ancillary processing capacity. The New York Spoke now has variable capacity of up to 18,000 tonnes per year for processing a range of LIB feedstock types.

Li-Cycle is currently working on plans to develop an expanded Generation 3 Spoke and warehouse facility that will replace its existing Spoke in Kingston, Ontario (the "**New Ontario Spoke**"). Li-Cycle expects initial site work to commence during 2023. The new Ontario Spoke is currently expected to have a main line recycling capacity of 10,000 tonnes (2 GWh equivalent) of LIB per year.

*Capital Expenditure estimates for Rochester Hub and Spoke Network*

Li-Cycle estimates that the Rochester Hub will require a total capital investment of approximately $486 million (+/-15%). Costs for the Rochester Hub are tracking within budget. Spend to date on the Rochester Hub totals $154.2 million.

Li-Cycle expects to spend approximately $40.0 million on its Spokes in development in 2023 including the installation of the first and second main lines at the Germany Spoke, further work on the Norway Spoke, and initial work at the new Ontario Spoke location.

Li-Cycle expects to fund its capital projects through a combination of existing liquidity and future fund-raising activities.

**Liquidity and Capital Resources** 

*Sources of Liquidity*

Li-Cycle intends to meet its currently anticipated capital requirements through cash on hand, cash flow from operations, and additional ongoing fund-raising activities. Li-Cycle has no material debt maturities until September 29, 2026. As at October 31, 2022, the Company had $578.3 million of cash and cash equivalents on hand and convertible debt of $288.5 million.

The Company's primary need for liquidity is to fund working capital requirements of its business, capital expenditures related to the development and construction of its Rochester Hub and new Spoke facilities, and general corporate purposes. The Company's primary source of liquidity is the funds raised from the Business Combination, the PIPE Financing, the KSP Convertible Note financing, the LGC and LGES share subscription and the Glencore Convertible Note financing.

Li-Cycle's capital and operating expenditures have increased, and it expects that they will continue to increase, in connection with its ongoing activities and growth, as the Company: completes the development and construction of the Rochester Hub; progresses the development of the Spoke network; develops additional Hubs, including through joint ventures or other contractual arrangements; continues to invest in its technology, R&D efforts and the expansion of its intellectual property portfolio; obtains, maintains and improves its operational, financial and management information systems; hires additional personnel; and operates as a public company.

The Company's ability to fund its capital and operating expenditures, make scheduled debt payments and repay or refinance indebtedness depends on its future operating performance and cash flows, which will be affected by prevailing economic conditions and financial, business and other factors, some of which are beyond its control. Over the short to mid-term, Li-Cycle expects it will need to secure additional equity and debt financing to fund its growth strategy. Additional funds may not be available when the Company needs them on terms that are acceptable to the Company, or at all.

*Cash Flows Summary* 

Presented below is a summary of Li-Cycle's operating, investing, and financing cash flows for the periods indicated:

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Twelve months ended** | **Twelve months ended** |
| | **October 31,** | **October 31,** | **October 31,** | **October 31,** |
| &nbsp;&nbsp;$ millions | **2022** | 2021 | **2022** | 2021 |
| &nbsp;&nbsp;Cash flows used in operating activities | $**(8.9)** | $(8.0) | $**(72.6)** | $(24.6) |
| &nbsp;&nbsp;Cash flows used in investing activities | **(60.4)** | (9.4) | **(190.1)** | (21.4) |
| &nbsp;&nbsp;Cash flows from financing activities | **(1.4)** | 611.9 | **244.1** | 642.2 |
| &nbsp;&nbsp;Net change in cash | $**(70.7)** | $594.5 | $**(18.6)** | $596.2 |

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*Cash Flows Used in Operating Activities* 

For the three and twelve months ended October 31, 2022, cash flows used by operating activities were approximately $8.9 million and $72.6 million, respectively, primarily driven by the growth and expansion of Li-Cycle's operations and commercial footprint. The increases in the cash flows used in operating activities were driven by an increase in raw material costs, as well as increased other operating expenses including personnel costs. The increase also reflects the addition of two operational Spokes in the three and twelve months ended October 31, 2022 relative to the corresponding periods of 2021, as well as the addition of new corporate personnel as the Company has implemented its expansion plans.

For the three and twelve months ended October 31, 2021, cash flows used in operating activities were approximately $8.0 million and $24.6 million, respectively, and were primarily driven by the growth and commercialization of Li-Cycle's operations, which included adding employees, production costs from the ramp-up phase at the New York Spoke, R&D expenses, and consulting costs relating to the development of the Rochester Hub.

*Cash Flows Used in Investing Activities*

For the three and twelve months ended October 31, 2022, cash flows used in investing activities were primarily driven by the capital investment in the Rochester Hub and acquisition of equipment, construction materials and leasehold improvements for the Arizona Spoke, the Alabama Spoke and the Rochester Hub. Cash flows used in investing activities in the prior year were for similar activities at a lesser scale.

*Cash Flows from Financing Activities* 

Cash flows from financing activities in the three months ended October 31, 2022 were primarily related to lease repayments, whereas in the three months ended October 31, 2021, Li-Cycle received net proceeds of $525.3 million from the Business Combination with Peridot and $98.4 million from the issuance of the initial KSP Convertible Note offset by $11.4 million of loan and promissory note repayments. The cash inflows in the twelve months ended October 31, 2022 related primarily to net proceeds of $198.7 million from the issuance of the Glencore Convertible Note and net proceeds of $49.7 million from the investment by LGC and LGES in the Company's common shares, whereas in the twelve months ended October 31, 2021, in addition to the activities mentioned above, Li-Cycle received net proceeds of $21.6 million from a private placement of 281,138 Class A shares of Li-Cycle Corp in November 2020.

*Debt Obligations*

*KSP Convertible Notes*

On September 29, 2021, the Company entered into a Note Purchase Agreement (the "**KSP Note Purchase Agreement**") with Spring Creek Capital, LLC (an affiliate of Koch Strategic Platforms, LLC, being a company within the Koch Investments Group) and issued a convertible note (the "**Initial KSP Convertible Note**") in the principal amount of $100 million to Spring Creek Capital, LLC. The KSP Convertible Note will mature on September 29, 2026. Interest on the Initial KSP Convertible Note is payable semi-annually, and Li-Cycle is permitted to pay interest on the Initial KSP Convertible Note in cash or by payment in-kind ("**PIK**"), at its election. Interest payments made in cash are based on an interest rate of LIBOR plus 5.0% per year, and PIK interest payments are based on an interest rate of LIBOR plus 6.0% per year. Under the terms of the Initial KSP Convertible Note, LIBOR has a floor of 1% and a cap of 2%. Once LIBOR interest rate is no longer published, the interest rate will instead be based on the sum of the Secured Overnight Financing Rate ("**SOFR**") and the average spread

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between the SOFR and LIBOR during the three-month period ending on the date on which LIBOR ceases to be published. The PIK election results in the issuance of a new note under the same terms as the Initial KSP Convertible Note, issued in lieu of interest payments with an issuance date on the applicable interest date. On May 1, 2022, Spring Creek Capital, LLC assigned the Initial KSP Convertible Note and the PIK note outstanding at that time to an affiliate, Wood River Capital, LLC. The Company has elected to pay interest on the Initial KSP Convertible Note by PIK since the first interest payment date of December 31, 2021. The Initial KSP Convertible Note and the PIK notes issued thereunder are referred to collectively as the "**KSP Convertible Notes**", and as at October 31, 2022, comprised the following:

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| | | |
|:---|:---|:---|
| Note | Date Issued | Amount Issued |
| KSP Note | September 29, 2021 | $100.0 |
| PIK Note | December 31, 2021 | 1.8 |
| PIK Note | June 30, 2022 | 4.1 |
| Total |  | $105.9 |

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Subsequent to the fiscal year end, on December 31, 2022, the Company elected to pay the accrued interest on the KSP Convertible Notes in kind by issuing an additional PIK note in the amount of $4.3 million under the same terms as the original KSP Convertible Notes, in lieu of cash payments.

The principal and accrued interest owing under the KSP Convertible Notes may be converted at any time by the holder into the Company's common shares, at a per share price equal to $13.43 (the "**Conversion Price**"). If the closing price per share of the Company's common shares on the New York Stock Exchange is above $17.46 for 20 consecutive trading days, then the Company may elect to convert the principal and accrued interest owing under the KSP Convertible Notes, plus a make-whole amount equal to the undiscounted interest payments that would have otherwise been payable through maturity (the "**Make-Whole Amount**") into the Company's common shares at the Conversion Price.

The Company may redeem the KSP Convertible Notes at any time by payment in cash of an amount equal to 130% of the principal amount of the KSP Convertible Notes and all accrued interest owing under the KSP Convertible Notes, plus the Make-Whole Amount.

*Glencore Convertible Note*

On May 31, 2022, the Company issued to Glencore a convertible note in the aggregate principal amount of $200.0 million (the "**Glencore Convertible Note**"), in a transaction exempt from registration under the Securities Act. The Glencore Convertible Note matures five years from the date of issuance and interest on the Glencore Convertible Note is payable on a semi-annual basis, either in cash or by PIK, at the Company's option. The Glencore Convertible Note accrues interest from the date of issuance at the forward-looking term rate based on SOFR for a tenor comparable to the relevant interest payment period plus 0.42826% (the "**Floating Rate**") plus 5% per annum if interest is paid in cash and plus 6% per annum if interest is paid in PIK. The Floating Rate has a floor of 1% and a cap of 2%.

The principal and accrued interest owing under the Glencore Convertible Note may be converted at any time by the holder into the Company's common shares at a per share price equal to $9.95 (the "**Conversion Price**"), subject to adjustments. The Company may redeem the Glencore Convertible Note at any time by payment of an amount in cash equal to 100% of the outstanding principal amount of the Glencore Convertible Note and all accrued interest owing under the Glencore Convertible Note. In connection with any optional redemption and provided that the holder of the Glencore Convertible Note has not elected to convert the Glencore Convertible Note into common shares following receipt of an optional redemption notice, the Company must issue warrants (the "**Glencore Warrants**") to the holder of the Glencore Convertible Note on the optional redemption date that entitle the holder to acquire, until the maturity date of the Glencore Convertible Note, a number of common shares equal to the principal amount of the Glencore Convertible Note being redeemed divided by the then applicable Conversion Price. The initial exercise price of the Glencore Warrants will be equal to the Conversion Price as of the optional redemption date.

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Subsequent to year end, on November 30, 2022, the Company elected to pay the accrued interest on the Glencore Convertible Note in kind by issuing a PIK note in the amount of $8.1 million under the same terms as the original Glencore Convertible Note, in lieu of cash payments.

The obligations of the Company to make any payment on account of the principal of and interest on the Initial KSP Convertible Note and the Glencore Convertible Note are subordinate and junior in right of payment and upon liquidation to the Company's obligations to the holders of all current and future senior indebtedness of the Company.

**Contractual Obligations and Commitments**

The following table summarizes Li-Cycle's contractual obligations and other commitments for cash expenditures as of October 31, 2022, and the years in which these obligations are due:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;$ millions, undiscounted | **Payment due by period** | **Payment due by period** | **Payment due by period** | **Payment due by period** | **Payment due by period** |
| **Contractual Obligations** | **Total** | **Less than** | **1 - 3 years** | **3 - 5 years** | **More than** |
| **Contractual Obligations** | **Total** | **1 year** | **1 - 3 years** | **3 - 5 years** | **5 years** |
| &nbsp;&nbsp;Accounts payable and accrued liabilities | $47.5 | $47.5 | $— | $— | $— |
| &nbsp;&nbsp;Lease liabilities | 76.6 | 8.0 | 14.3 | 13.0 | 41.3 |
| &nbsp;&nbsp;Restoration provisions | 0.4 |  | 0.2 |  | 0.2 |
| &nbsp;&nbsp;Convertible debt principal | 300.0 |  |  | 300.0 |  |
| &nbsp;&nbsp;Convertible debt interest | 146.1 |  |  | 146.1 |  |
| **Total as of October 31, 2022** | $**570.6** | $**55.5** | $**14.5** | $**459.1** | $**41.5** |

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As of October 31, 2022, there were $9.2 million in committed purchase orders or agreements for equipment and services, compared to $6.9 million as of October 31, 2021.

Li-Cycle expects to enter into premises leases for additional Spokes and Hubs in the twelve months following October 31, 2022.

**Quantitative and Qualitative Disclosures About Market Risk** 

Li-Cycle is exposed to various risks in relation to financial instruments. The main types of risks are currency risk and interest rate risk. While Li-Cycle may enter into hedging contracts from time to time, any change in the fair value of the contracts could be offset by changes in the underlying value of the transactions being hedged. Furthermore, Li-Cycle does not have foreign-exchange hedging contracts in place with respect to all currencies in which it does business.

*Currency Risk* 

The Company is exposed to currency risk as its cash is mainly denominated in U.S. dollars, while its operations also require Canadian dollars, Euros, Swiss Francs and certain other currencies, in addition to U.S. dollars. As at October 31, 2022, the impact of a 5% change in these respective currencies versus the U.S. dollar, would result in an immaterial impact.

*Interest Rate Risk*

Interest rate risk is the risk arising from the effect of changes in prevailing interest rates on the Company's financial instruments. The Company is exposed to interest rate risk, as it has variable interest rate debt in the form of convertible debt that includes an interest rate floor and cap.

*Credit, liquidity, and market risks*

Credit risks associated with cash are minimal as the Company deposits the majority of its cash with large Canadian and U.S. financial institutions. The Company's credit risks associated with receivables are managed and exposure to potential loss is also assessed as minimal.

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The Company's revenue and accounts receivable primarily come from two key customers under long-term contracts. The Company manages this risk by engaging with reputable multi-national corporations in stable jurisdictions and performing a review of a potential customer's financial health prior to engaging in business.

Management has established an appropriate liquidity risk management framework for the management of the Company's short-term, medium and long-term funding and liquidity requirements.

The Company is exposed to commodity price movements for the inventory it holds and the products it produces. Commodity price risk management activities are currently limited to monitoring market prices. The Company's revenues are sensitive to the market prices of the constituent payable metals contained its products, notably cobalt and nickel.

The following table sets out the Company's exposure, as of October 31, 2022 and October 31, 2021, in relation to the impact of movements in the cobalt and nickel price for the provisionally invoiced sales volume:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Cobalt | Cobalt | Nickel | Nickel |
| | **2022** | 2021 | **2022** | 2021 |
| Metric tonnes subject to fair value pricing adjustments | **4202** | 1728 | **4202** | 1728 |
| 10% increase in prices | $**1.1** | $0.3 | $**1.0** | $0.4 |
| 10% decrease in prices | $**(1.1)** | $(0.3) | $**(1.0)** | $(0.4) |

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The following table sets out the period end commodity prices for cobalt and nickel as at October 31, 2022 and 2021:

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| | | |
|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market price per tonne | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market price per tonne |
| As at October 31, | **2022** | 2021 |
| Cobalt | $**53462** | $60407 |
| Nickel | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21710** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19300 |

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**Key Factors Affecting Li-Cycle's Performance** 

The Company believes that its performance and future success is dependent on multiple factors that present significant opportunities for Li-Cycle, but also pose significant risks and challenges, including those discussed below and in the section of the Annual Report entitled "Item 3. Key Information—D. Risk Factors."

*Availability of Lithium-Ion Battery Materials for Recycling*

Li-Cycle is reliant on obtaining lithium-ion batteries and battery manufacturing scrap for recycling at its Spokes through its contracts with third-party suppliers. The Company maintains commercial contracts with leaders in the EV and LIB ecosystem, including battery manufacturers and automotive original equipment manufacturers, as well as energy storage, consumer electronics and transportation companies. Li-Cycle currently has over 150 suppliers of end-of-life lithium-ion batteries and battery manufacturing scrap and expects to attract new suppliers by differentiating itself based on the sustainability of its process and the robustness of its technology, which in turn will enable Li-Cycle to offer competitive terms to suppliers.

Li-Cycle expects its supply pipeline to grow as suppliers increase volumes of batteries and manufacturing scrap available for recycling due to the continuing trend toward EVs, and as Li-Cycle continues to source additional supplier relationships. The Company's commercial agreements with Glencore also provide for the procurement of battery material for its Spoke facilities, providing access to an additional source of supply to supplement the volumes it is independently sourcing. There can be no assurance that Li-Cycle will attract new suppliers or expand its supply pipeline from existing suppliers, and any decline in supply volume from existing suppliers or an inability to source new supplier relationships could have a negative impact on Li-Cycle's results of operations and financial condition.

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*Customer Demand for Recycled Materials*

Li-Cycle currently recognizes revenue from, among other things, sales of two intermediate products produced at Li-Cycle's Spokes: Black Mass & Equivalents and shredded metal. After the Rochester Hub becomes operational, and Li-Cycle starts processing black mass internally, Li-Cycle expects to recognize revenue from the sale of end products, including nickel sulphate, cobalt sulphate and lithium carbonate. The demand for Li-Cycle's recycling services and products is driven in part by projected increases in the demand for EVs (including automobiles, e-bikes, scooters, buses and trucks) and other energy storage systems. A decline in the adoption rate of EVs, or a decline in the support by governments for "green" energy technologies could reduce the demand for Li-Cycle's recycling services and products.

Li-Cycle relies on a limited number of customers from whom it generates most of its revenue. Li-Cycle has entered into two agreements with Traxys North America LLC ("**Traxys**") covering the off-take of black mass from its Spokes in North America and certain specialty products from the Rochester Hub. Refer to the section titled "Item 4. Information on the Company—B. Business Overview —our Broad and Diversified Intake and Off-Take Commercial Contracts" in the Annual Report. Li-Cycle has also entered into additional off-take agreements with Glencore, covering substantially all of its other Spoke and Hub products. If the Company's off-take partners are unwilling or unable to fulfil their contractual obligations to the Company, if either party fails to perform under the relevant contract, or if these off-take partners otherwise terminate these agreements prior to their expiration, the Company's business could suffer and Li-Cycle may not be able to find other off-take partners on similar or more favorable terms, which could have a material adverse effect on its business, results of operations and financial condition.

*Fluctuations in Commodity Prices* 

The prices that Li-Cycle pays for battery feedstock for its Spokes, and the revenue that Li-Cycle currently recognizes from the sale of Black Mass & Equivalents and shredded metal produced at Li-Cycle's Spokes, are impacted by the commodity prices for the metals contained in those battery feedstocks or products, notably nickel, cobalt and copper. As a result, fluctuations in the prices of these commodities will affect Li-Cycle's costs and revenues. After the Rochester Hub becomes operational, and Li-Cycle starts processing black mass internally, Li-Cycle expects to recognize revenue from the sale of end products, including lithium carbonate, nickel sulphate and cobalt sulphate. The amount of revenue that Li-Cycle will recognize from the sale of these end products will also be impacted by the commodity prices for the metals contained in these end products, notably lithium, nickel, and cobalt. While Li-Cycle's costs and revenues may vary with commodity prices and specialty product prices, the Company believes the wide range of end products that Li-Cycle expects to produce will result in a diversification effect that will provide it with a natural hedge against significant variations in the commodity pricing related to a single product.

*Ability to Build Out Additional Facilities*

Li-Cycle's continued growth is dependent on its ability to scale the business as currently planned, and build out additional facilities in North America and internationally. Li-Cycle has a market-leading position in North America through its operational Spokes in Kingston, Ontario, Rochester, New York, Gilbert, Arizona and Tuscaloosa, Alabama. Li-Cycle is also advancing the construction of its first commercial Hub, in Rochester, New York. Li-Cycle has also announced its first European Spokes, in Germany and Norway, and is evaluating additional opportunities to scale its operations with a range of potential partners and expansion opportunities that may include acquisitions, joint ventures or other commercial arrangements in North America, Europe, and Asia Pacific.

The development of Li-Cycle's Rochester Hub, its Spoke network and other future projects is subject to risks, including engineering, permitting, procurement, construction, commissioning and ramp-up, and Li-Cycle cannot guarantee that these projects will be completed within expected timeframes or at all, that costs will not be significantly higher than estimated, that it will have sufficient capital to cover any increased costs or that the completed projects will meet expectations with respect to their production rates, unit costs or specifications of their

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end products, among others. While the expansion of Li-Cycle's business in international markets, including the construction and operation of the Germany Spoke and the Norway Spoke, is an important element of its strategy, but it also involves exposure to risks inherent in doing business globally, which could delay or otherwise adversely affect the Company's expansion plans.

*Global Supply Chain*

The COVID-19 pandemic and geopolitical events, including Russia's invasion of Ukraine, have resulted in significant disruptions in the global supply chain. Shortages, price increases and/or delays in shipments of supplies, equipment and raw materials have occurred and may continue to occur in the future which may result in operational or construction slowdowns. Such disruptions to the global supply chain may have a material adverse effect on Li-Cycle's operations, development and construction activities and financial condition.

*Research and Development* 

Li-Cycle continues to conduct R&D centered on various aspects of its business. R&D work is ongoing in support of its Spoke operations and its Rochester Hub project and is specifically focused on continuous optimization of operating parameters and preparation for operations. Li-Cycle also continues to develop and evaluate new concepts with an eye to the future, including solid-state battery processing and other technologies and concepts related to its Spoke & Hub Technologies™.

**Related Party Transactions**

For information about Li-Cycle's related party transactions refer to Note 10 in the accompanying consolidated financial statements of Li-Cycle for the year ended October 31, 2022 and the section of the Annual Report entitled "Item 7. Major Shareholders and Related Party Transactions—B. Related Party Transactions."

**Outstanding Share Data**

As of January 31, 2023, and including the results of the redemption of outstanding warrants to purchase common shares of the Company, Li-Cycle had the following issued and outstanding common shares, and common shares issuable upon conversion of convertible debt, exercise of stock options and settlement of restricted share units:

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| | |
|:---|:---|
| | **Number of common shares outstanding or issuable upon conversion or exercise** |
| Common shares outstanding | 176254266 |
| Convertible debt | 29922783 |
| Stock options | 5398859 |
| Restricted share units | 3850190 |
| Total | 215426098 |

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**Summary of Quarterly Results**

The table below sets forth certain summarized unaudited quarterly financial data for the eight most recently completed quarters. This quarterly information has been prepared in accordance with IFRS. The operating results for any quarter are not necessarily indicative of the results to be expected for any future period.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** |
| | **October 31,** | **October 31,** | **July 31,** | **July 31,** | **April 30,** | **April 30,** | **January 31,** | **January 31,** |
| $ millions, except per share data | **2022** | 2021 | **2022¹** | 2021 | **2022** | 2021 | **2022** | 2021 |
| Revenues | $**3.0** | $4.4 | $**(2.0)** | $1.7 | $**8.6** | $0.2 | $**3.8** | $1.0 |
| Net profit (loss) | **(33.9)** | (204.9) | **(27.5)** | (7.0) | **(20.8)** | (7.9) | **28.5** | (6.8) |
| Net profit (loss) attributable to: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Shareholders of Li-Cycle Holdings Corp. | **(33.9)** | (204.9) | **(27.6)** | (7.0) | **(20.6)** | (7.9) | **28.5** | (6.8) |
| &nbsp;&nbsp;&nbsp;Non-controlling interest | **—** |  | **(0.1)** |  | **—** |  | **—** |  |
| Earnings (loss) per share, basic and diluted | $**(0.19)** | $(1.31) | $**(0.16)** | $(0.07) | $**(0.12)** | $(0.08) | $**0.17** | $(0.07) |

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¹ The decrease in cobalt and nickel prices over the three months ended July 31, 2022 has resulted in fair value adjustment losses which exceed the new product sales revenue recognized in the period.

Li-Cycle became a reporting issuer for the purposes of Ontario securities laws on August 10, 2021. Over the last eight quarters, the Company's results were primarily impacted by the continued development, construction and commissioning of its Spoke network; the development and construction of the Rochester Hub; and costs and expenses incurred in connection with its growth plan, including personnel and facilities costs and legal, audit and tax advisory services in support of the Company's growth plans as a public company. The results were also impacted by costs and expenses incurred in connection with the completion of the Business Combination in August 2021, including excess of fair value over consideration transferred of $152.7 million in the three months ended October 31, 2021, and by fair value gain (loss) on financial instruments relating to warrants and convertible debt.

**2021 Results of Operations**

*Comparison of the year ended 2021 and 2020*

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| | | | |
|:---|:---|:---|:---|
| | **Year Ended October 31,** | **Year Ended October 31,** | |
| | **October 31,** | **October 31,** | |
| | **2021** | **2020** | **Change** |
| *Financial highlights* |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenues | $7.3 | $0.8 | $6.5 |
| &nbsp;&nbsp;&nbsp;Operating expenses | 39.2 | 10.0 | 29.2 |
| &nbsp;&nbsp;&nbsp;Other income (expense) | (194.7) | (0.2) | (194.5) |
| &nbsp;&nbsp;&nbsp;Net loss | (226.6) | (9.4) | (217.2) |
| &nbsp;&nbsp;&nbsp;Comprehensive loss | (226.6) | (9.6) | (217.0) |
| &nbsp;&nbsp;&nbsp;Loss per common share - basic and diluted | $(2.06) | $(0.11) | $(1.95) |
| *Cash* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash balance | $596.9 | $0.7 | $596.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash flows used in operating activities | (24.6) | (7.4) | (17.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash flows used in investing activities | (21.4) | (5.1) | (16.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash flows from financing activities | 642.2 | 9.4 | 632.8 |

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*Revenue*

For the twelve months ended October 31, 2021, Li-Cycle's revenues increased by $6.5 million, when compared to 2020. The revenue growth was mainly attributable to increases in product sales primarily as a result of the New York Spoke ramping up to process meaningful quantities of Black Mass & Equivalents, with production reaching

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1,880 tonnes of BM&E in the twelve months ended October 31, 2021, as compared to 226 tonnes of BM&E produced in 2020.

*Operating expenses*

For the twelve months ended October 31, 2021, operating expenses increased by $29.2 million compared to 2020, as Li-Cycle ramped up its operations in North America. The main drivers of the increases compared to 2021 were personnel costs ($13.6 million), professional fees ($4.7 million), raw materials and supplies ($2.8 million), and office, administrative and travel ($2.6 million).The increase in personnel costs reflected the ramp up of operations of the Ontario Spoke and New York Spoke as well as the addition of corporate team members as Li-Cycle ramped up its expansion plans. The level of professional fees was commensurate with requisite legal, audit and tax advisory services in support of Company's growth plans as a public company. The increase in raw materials and supplies was mainly a result of increased inventory production during the ramp-up phase of the Ontario Spoke and New York Spoke operations. Office and administrative expenses increased mainly as a result of higher insurance premiums associated with being a public company.

*Other income (expenses)*

Other expenses increased by $194.5 million in the twelve months ended October 31, 2021 compared to 2021. The main drivers of the increase were losses due to excess of fair value over consideration transferred ($152.7 million) and fair value losses on financial instruments ($38.2 million). The increase in fair value over consideration transferred of $152.7 million relates to the completion of the Business Combination in the last fiscal quarter of 2021. The increase in fair value loss was primarily driven by fair value revaluations of the conversion feature of the initial KSP Convertible Note and fair value revaluations of the Company's warrants.

*Net loss*

Net loss was $226.6 million in the twelve months ended October 31, 2021, compared to $9.4 million in 2020. Net loss was driven by the factors discussed above. Adjusted EBITDA loss excludes the one-time Business Combination loss and other fair value losses and was $26.2 million in the twelve months ended October 31, 2021, compared to $7.7 million in 2020. This was largely driven by higher staffing and network development costs related to the growth and expansion of the business, as discussed above. A reconciliation of Adjusted EBITDA to Net loss is provided in the *Non-IFRS Measures* Section below.

*Cash and cash equivalents* 

Cash and cash equivalents were $596.9 million as at October 31, 2021 compared to $0.7 million as at October 31, 2020. The Company raised net proceeds of $525.3 million from the Business Combination with Peridot, $98.4 million from the issuance of convertible note to Spring Creek Capital, and net proceeds of $21.6 million from a private placement of 281,138 Class A shares of Li-Cycle Corp in November 2020, offset by repayment of $4.4 million of loan in full to BDC Capital Inc and repayment of $7.0 million of Promissory Notes in full to entities affiliated with the Chief Executive Officer and the Executive Chair of Li-Cycle. The period over period increases in cash flows used in operating activities were primarily the result of an increase in operating expenses in 2021 compared to 2020, partially offset by cash receipts from increased sales. The increase in cash flows used in investing activities were primarily driven by the acquisition of equipment and leasehold improvements for the Arizona Spoke, New York Spoke and the Rochester Hub.

**Off-Balance Sheet Arrangements** 

During the periods presented, Li-Cycle did not have any relationships with unconsolidated organizations or financial partnerships, such as structured finance or special purpose entities, which were established for the purpose of facilitating off-balance sheet arrangements.

**Significant Accounting Policies and Critical Estimates** 

Li-Cycle's consolidated annual financial statements have been prepared in conformity with IFRS using the significant accounting policies and measurement bases in effect at October 31, 2022, as summarized in Note 2 of the

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accompanying financial statements of Li-Cycle for the twelve months ended October 31, 2022, which were used throughout all periods presented in the consolidated financial statements, with any applicable changes in Note 2 of the accompanying financial statements of Li-Cycle for the twelve months ended October 31, 2022.

*Revenue*

The Company's principal activities generate revenues from the operation of LIB recycling plants. The Company uses the following five step approach to revenue recognition:

Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

The Company recognizes revenue from the following major sources:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Services for recycling lithium-ion batteries which includes coordination of logistics and destruction of batteries; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sale of products which includes Black Mass & Equivalents and shredded metal.

Revenue is measured based on the consideration to which the Company expects to be entitled under a contract with a customer. The Company recognizes revenue when it transfers control of a product or service to a customer. There are no significant financing components associated with the Company's payment terms.

For sale of products, revenue is recognized when control of the goods has transferred, typically when the goods have been transferred to the customer. A receivable is recognized by the Company when the goods are transferred to the customer as this represents the point in time at which the right to consideration becomes unconditional, as only the passage of time is required before payment is due. The Company estimates the amount of consideration to which it expects to be entitled under provisional pricing arrangements, which is based on the initial assay results and market prices of certain constituent metals on the date control is transferred to the customer. The final consideration for BM&E and shredded metal sales is based on the mathematical product of: (i) market prices of certain constituent metals at the date of settlement, (ii) product weight, and (iii) final assay results (ratio of the constituent metals initially estimated by management and subsequently trued up to customer confirmation). Certain adjustments like handling and refining charges are also made per contractual terms with customers. Depending on the contractual terms with customers, the payment of receivables may take up to 12 months from date of shipment. Product sales and the related trade accounts receivable are measured using provisional prices for the constituent metals on initial recognition and any unsettled sales are remeasured at the end of each reporting period using the market prices of the constituent metals at the respective measurement dates. Changes in fair value are recognized as an adjustment to product revenue and the related accounts receivable.

Recycling service revenue is recognized at a point in time upon completion of the services. The price for services are separately identifiable within each contract. A receivable is recognized by the Company when the services are completed as this represents the point in time at which the right to consideration becomes unconditional, as only the passage of time is required before payment is due.

The Company has elected to use the practical expedient for financing components related to its sales contracts. The Company does not recognize interest expense on contracts for which the period between receipt of customer payments and sale to the customer is one year or less.

*Convertible debt instruments*

The components of convertible debt instruments issued by the Company are recorded as financial liabilities, in accordance with the substance of the contractual arrangements and the definitions of a financial liability. The debt

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element of the instruments is classified as a liability and recorded as the present value of the Company's obligation to make future interest payments in cash and settle the redemption value of the instrument in cash. The carrying value of the debt element is accreted to the original face value of the instruments, over their life, using the effective interest method. If the conversion option is classified as a liability and requires bifurcation, it is bifurcated as an embedded derivative unless the Company elects to apply the fair value option to the convertible debt. The embedded derivative liability is initially recognized at fair value and classified as derivatives in the statement of financial position. Changes in the fair value of the embedded derivative liability are subsequently accounted for directly through the income statement.

**Accounting Treatment of the Business Combination**

The Business Combination has been accounted for as a reverse acquisition in accordance with IFRS. Under this method of accounting, Li-Cycle Holdings Corp. (as the continuing entity after the Amalgamation of Old Li-Cycle Holdings and Peridot) is treated as the "acquired" company for accounting purposes. As Peridot Acquisition Corp. does not meet the definition of a business as defined in IFRS 3 — Business Combinations ("**IFRS 3**"), the acquisition, net assets of Li-Cycle Holdings Corp. were stated at historical cost, with no goodwill or other intangible assets recorded.

Li-Cycle has been determined to be the accounting acquirer based on an evaluation of the following facts and circumstances, and accordingly the Business Combination is treated as an equivalent to an acquisition of Peridot

accompanied by a recapitalization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Li-Cycle's shareholders prior to the Business Combination have the greatest voting interest in the combined entity relative to other shareholders (including following the redemptions discussed under "—Liquidity and Capital Resources — Sources of Liquidity");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the largest individual minority shareholder of the combined entity is an existing shareholder of Li-Cycle;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Company's senior management is the senior management of Li-Cycle;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Li-Cycle is the larger entity based on historical total assets and revenues; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Li-Cycle's operations comprise the ongoing operations of the Company.

Upon consummation of the Business Combination and the closing of the PIPE Financing, the most significant change in Li-Cycle's financial position and results of operations was an increase in cash and cash equivalents (as compared to Li-Cycle's balance sheet at July 31, 2021) of $581.9 million, including $315.5 million in gross proceeds from the PIPE Financing. Total direct and incremental transaction costs of Peridot and Li-Cycle were $29.6 million and $27.0 million, respectively. Li-Cycle's transaction costs were treated as a reduction of the cash proceeds and deducted from Li-Cycle Holdings Corp.'s additional paid-in capital.

As a consequence result of the Business Combination, Li-Cycle Holdings Corp. became the successor to an SEC-registered and NYSE-listed company, which has required Li-Cycle to hire additional personnel and implement procedures and processes to address public company regulatory requirements and customary practices. Li-Cycle expects to continue to incur additional annual expenses as a public company for, among other things, directors' and officers' liability insurance, director fees and additional internal and external accounting, legal and administrative resources, including increased audit and legal fees.

**Recently Issued Accounting Standards Not Yet Adopted** 

From time to time, new accounting standards, amendments to existing standards, and interpretations are issued by the IASB. Unless otherwise discussed, and as further highlighted in Note 2 to the fiscal October 31, 2022 consolidated annual financial statements of Li-Cycle for the twelve months ended October 31, 2022 and 2021, Li-Cycle is in the process of assessing the impact of recently issued standards or amendments to existing standards that are not yet effective.

**Disclosure Controls and Procedures** 

Li-Cycle's management, with the participation of its Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of its disclosure controls and procedures (as defined in Rules 13a-15(e) and

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15d-15(e) under the Exchange Act and Canadian Securities Administrators National Instrument 52-109, Certification of Disclosure in Issuers' Annual and Interim Filings) as of the end of the period covered by this annual report. Based on such evaluation, its Chief Executive Officer and Chief Financial Officer have concluded that as of October 31, 2022, its disclosure controls and procedures were not effective, due to the material weaknesses in the Company's internal control over financial reporting described below.

**Internal Control Over Financial Reporting**

Management is responsible for establishing, maintaining and assessing the effectiveness of adequate internal control over financial reporting ("**ICFR**") as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act and Canadian Securities Administrators National Instrument 52-109, Certification of Disclosure in Issuers' Annual and Interim Filings. The Company's ICFR is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS.

Prior to August 10, 2021, Li-Cycle was a private company and addressed internal control over financial reporting with internal accounting and financial reporting personnel and other resources. In the course of preparing for the Business Combination, Li-Cycle identified material weaknesses in its internal control over financial reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of Li-Cycle's annual or interim condensed consolidated interim financial statements may not be prevented or detected on a timely basis.

As of October 31, 2022, management assessed the effectiveness of the Company's ICFR based on the criteria established in Internal Control - Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (the "**COSO 2013 Framework**"). Based on this assessment, management identified the following material weaknesses as of October 31, 2022:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an ineffective control environment, resulting from an insufficient number of experienced personnel with the appropriate technical training to allow for a detailed review of transactions that would identify errors in a timely manner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an ineffective risk assessment process to identify all relevant risks of material misstatement and to evaluate the implications of relevant risks on its internal control over financial reporting, resulting from the insufficient number of experienced personnel described above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an ineffective information and communication process to ensure the relevance, timeliness and quality of information used in control activities, resulting from: (i) insufficient communication of internal control information, including objectives and responsibilities; and (ii) ineffective general IT controls and controls over information from a service organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an ineffective monitoring process, resulting from the evaluation and communication of internal control deficiencies not being performed in a timely manner; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ineffective control activities related to the design, implementation and operation of process level controls and financial statement close controls, as a consequence of the above, which had a pervasive impact on the Company's internal control over financial reporting.

As a result, management has concluded that the Company did not maintain effective internal control over financial reporting as of October 31, 2022, based on the COSO 2013 Framework described above. These material weaknesses create a reasonable possibility that a material misstatement to the consolidated financial statements will not be prevented or detected on a timely basis.

KPMG LLP, the Company's independent registered public accounting firm, has issued an attestation report on the Company's internal control over financial reporting for the year ended October 31, 2022, which report expresses an adverse opinion on the effectiveness of internal control over financial reporting.

*Plan for Remediation of Material Weaknesses*

We have taken steps to address these material weaknesses and expect to continue to implement the remediation plan, which we believe will address the underlying causes. We have engaged external advisors with subject matter expertise and additional resources to provide assistance with all elements of the internal control over

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financial reporting program, including: performance of a risk assessment; documentation of process flows; design and remediation of control deficiencies; and evaluation of the design and operational effectiveness of the Company's internal controls. Li-Cycle also expects to engage additional external advisors to provide assistance in the areas of information technology and financial accounting. The Company continues to monitor the longer-term resource needs of its various financial functions, as the Company grows its capability, capacity, and competency. Li-Cycle has made some improvements to its various IT platforms, including our enterprise resource planning ("**ERP**") system, and work on further upgrades is ongoing with the intent to further improve and enhance system functionality. Although Li-Cycle has strengthened its controls in these areas, the Company will not be able to conclude that it has remediated the material weaknesses until all relevant controls are fully implemented and have operated effectively for a sufficient period of time. The Company will continue to provide updates as we progress through the remediation plan.

*Changes in internal control over financial reporting*

Except for the steps taken to address the material weaknesses in the Company's ICFR as described in "Item 15B. Management's Report on Internal Control over Financial Reporting — Plan for Remediation of Material Weakness", no changes in the Company's ICFR occurred during the three months and year ended October 31, 2022 that have materially affected, or are reasonably likely to materially affect, the Company's ICFR.

**Non-IFRS Measures** 

The Company uses the non-IFRS measure of Adjusted EBITDA. Management believes that this non-IFRS measures provides useful information to investors in measuring the financial performance of the Company and is provided as additional information to complement IFRS measures by providing a further understanding of the Company's results of operations from management's perspective. These measures do not have a standardized meaning prescribed by IFRS and the term therefore may not be comparable to similarly titled measures presented by other publicly traded companies and should not be construed as an alternative to other financial measures determined in accordance with IFRS. Accordingly, it should not be considered in isolation nor as a substitute for the analysis of the Company's financial information reported under IFRS.

Adjusted EBITDA is defined as earnings before depreciation and amortization, interest expense (income), income tax expense (recovery) adjusted for items that are not considered representative of ongoing operational activities of the business and items where the economic impact of the transactions will be reflected in earnings in future periods. These adjustment items include fair value (gain) loss on financial instruments and non-recurring expenses such as forfeited Special Purpose Acquisition Company ("**SPAC**") transaction cost. Foreign exchange (gain) loss is excluded from the calculation of adjusted EBITDA. The following table provides a reconciliation of net profit (loss) to Adjusted EBITDA loss.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** |
| | **October 31,** | **October 31,** | **October 31,** | **October 31,** | **October 31,** |
| &nbsp;&nbsp;$ millions | **2022** | 2021 | **2022** | 2021 | 2020 |
| &nbsp;&nbsp;Net profit (loss) | $**(33.9)** | $(204.9) | $**(53.7)** | $(226.6) | $(9.4) |
| &nbsp;&nbsp;Income Tax | **—** |  | **—** |  |  |
| &nbsp;&nbsp;Depreciation | **3.3** | 1.1 | **10.1** | 2.9 | 1.1 |
| &nbsp;&nbsp;Interest expense | **7.6** | 2.1 | **17.4** | 3.0 | 0.5 |
| &nbsp;&nbsp;Interest income | **(4.4)** | (0.1) | **(7.0)** | (0.1) |  |
| &nbsp;&nbsp;EBITDA (loss) | **(27.4)** | (201.8) | **(33.2)** | (220.8) | (7.8) |
| &nbsp;&nbsp;Fair value (gain) loss on financial instruments¹ | **(5.2)** | 35.8 | **(67.5)** | 38.3 | 0.1 |
| &nbsp;&nbsp;Excess of fair value over consideration transferred² | **—** | 152.7 | **—** | 152.7 |  |
| &nbsp;&nbsp;Forfeited SPAC transaction cost | **—** |  | **—** | 2.0 |  |
| &nbsp;&nbsp;Share-based compensation³ | **—** | 1.6 | **—** | 1.6 |  |
| &nbsp;&nbsp;Adjusted EBITDA (loss) | $**(32.6)** | $(11.7) | $**(100.7)** | $(26.2) | $(7.7) |

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| |
|:---|
| ¹ Fair value gain on financial instruments relates to warrants, which were redeemed and no longer outstanding as of January 31, 2022, and convertible debt. |
| ² Excess of fair value over consideration transferred relates to listing fees associated with the Business Combination. |
| ³ Share-based compensation relates to accelerated vesting of existing stock options upon completion of the Business Combination. |

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**Cautionary Note Regarding Forward-Looking Statements**

Certain statements contained in this MD&A may be considered "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended, Section 21 of the U.S. Securities Exchange Act of 1934, as amended, and applicable Canadian securities laws. Forward-looking statements may generally be identified by the use of words such as "believe", "may", "will", "continue", "anticipate", "intend", "expect", "should", "would", "could", "plan", "potential", "future", "target" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. Forward-looking statements in this MD&A include but are not limited to statements about: the expectation that growing megafactory investments in North America and globally will drive significant increases in the Company's total addressable market; the Company's expected addition of key commercial contracts underpinning its investments in both North America and Europe; the Company's intention to pursue potential debt financing options from both traditional and government sources in support of future growth; expected settlement dates for the metric tonnes of BM&E subject to fair value price adjustments by quarter for the last twelve months; the Company's plan to gradually shift to a strategy of retaining BM&E production for future internal use as feedstock at the Rochester Hub; the expectation that the Rochester Hub will be the first hydrometallurgical battery resource recovery facility in North America; the timing of expected commencement of commissioning of the Rochester Hub, its input and output capacity, its total capital cost and the expected size of its workforce; the expected timing and capital investment requirements for the Company's Spokes in development and the expected main line processing capacity and ancillary processing capacity of the Germany, Norway, and expanded Ontario Spokes; the Company's expectation to increase the total main line processing capacity and ancillary processing capacity at its Spokes to just over 80,000 tonnes LIB material input/year in 2023; and the Company's expectation that it will need to secure additional equity and debt financing to fund its growth strategy and its intention to meet its currently anticipated capital requirements through cash on hand, cash flow from operations, and additional ongoing fundraising activities. These statements are based on various assumptions, whether or not identified in this communication, including but not limited to assumptions regarding the timing, scope and cost of Li-Cycle's projects; the processing capacity and production of Li-Cycle's facilities; Li-Cycle's ability to source feedstock and manage supply chain risk; Li-Cycle's ability to increase recycling capacity and efficiency; Li-Cycle's ability to obtain financing on acceptable terms; Li-Cycle's ability to retain and hire key personnel and maintain relationships with customers, suppliers and other business partners; general economic conditions; currency exchange and interest rates; compensation costs; and inflation. There can be no assurance that such assumptions will prove to be correct and, as a result, actual results or events may differ materially from expectations expressed in or implied by the forward-looking statements.

These forward-looking statements are provided for the purpose of assisting readers in understanding certain key elements of Li-Cycle's current objectives, goals, targets, strategic priorities, expectations and plans, and in

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obtaining a better understanding of Li-Cycle's business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes and is not intended to serve as, and must not be relied on, by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability.

Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Li-Cycle, and which may cause actual results to differ materially from the forward-looking information. Li-Cycle believes that these risks and uncertainties include, but are not limited to, the following: Li-Cycle's inability to economically and efficiently source, recover and recycle lithium-ion batteries and lithium-ion battery manufacturing scrap, as well as third party black mass, and to meet the market demand for an environmentally sound, closed-loop solution for manufacturing waste and end-of-life lithium-ion batteries; Li-Cycle's inability to successfully implement its global growth strategy, on a timely basis or at all; Li-Cycle's inability to manage future global growth effectively; Li-Cycle's inability to develop the Rochester Hub, and other future projects including its Spoke network expansion projects in a timely manner or on budget or that those projects will not meet expectations with respect to their productivity or the specifications of their end products; Li-Cycle's failure to materially increase recycling capacity and efficiency; Li-Cycle may engage in strategic transactions, including acquisitions, that could disrupt its business, cause dilution to its shareholders, reduce its financial resources, result in incurrence of debt, or prove not to be successful; one or more of Li-Cycle's current or future facilities becoming inoperative, capacity constrained or if its operations are disrupted; additional funds required to meet Li-Cycle's capital requirements in the future not being available to Li-Cycle on acceptable terms or at all when it needs them; Li-Cycle expects to continue to incur significant expenses and may not achieve or sustain profitability; problems with the handling of lithium-ion battery cells that result in less usage of lithium-ion batteries or affect Li-Cycle's operations; Li-Cycle's inability to maintain and increase feedstock supply commitments as well as securing new customers and off-take agreements; a decline in the adoption rate of EVs, or a decline in the support by governments for "green" energy technologies; decreases in benchmark prices for the metals contained in Li-Cycle's products; changes in the volume or composition of feedstock materials processed at Li-Cycle's facilities; the development of an alternative chemical make-up of lithium-ion batteries or battery alternatives; Li-Cycle's revenues for the Rochester Hub are derived significantly from a single customer; Li-Cycle's insurance may not cover all liabilities and damages; Li-Cycle's heavy reliance on the experience and expertise of its management; Li-Cycle's reliance on third-party consultants for its regulatory compliance; Li-Cycle's inability to complete its recycling processes as quickly as customers may require; Li-Cycle's inability to compete successfully; increases in income tax rates, changes in income tax laws or disagreements with tax authorities; significant variance in Li-Cycle's operating and financial results from period to period due to fluctuations in its operating costs and other factors; fluctuations in foreign currency exchange rates which could result in declines in reported sales and net earnings; unfavourable economic conditions, such as consequences of the global COVID-19 pandemic; natural disasters, unusually adverse weather, epidemic or pandemic outbreaks, cyber incidents, boycotts and geo-political events; failure to protect or enforce Li-Cycle's intellectual property; Li-Cycle may be subject to intellectual property rights claims by third parties; Li-Cycle's failure to effectively remediate the material weaknesses in its internal control over financial reporting that it has identified or if it fails to develop and maintain a proper and effective internal control over financial reporting. These and other risks and uncertainties related to Li-Cycle's business and the assumptions on which the forward-looking information is based are described in greater detail in the sections entitled "Item 3D. Risk Factors" and "Item 5. Operating and Financial Review and Prospects - Key Factors Affecting Li-Cycle's Performance" in its Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission and the Ontario Securities Commission in Canada and elsewhere in this MD&A.

Li-Cycle assumes no obligation to update or revise any forward-looking statements, except as required by applicable laws. These forward-looking statements should not be relied upon as representing Li-Cycle's assessments as of any date subsequent to the date of this MD&A.

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