Document:

Exhibit 10.16

 

[*] Indicates that certain information in this exhibit has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

 

MASTER AGREEMENT - TRACTORS

 

This Master Agreement -Tractors (“Agreement”) is made as of February 22, 2018 by Anheuser-Busch, LLC (“AB”), with offices at One Busch Place, St. Louis, Missouri 63118-1852, and Nikola Motor Company, LLC (“Vendor”), with offices at 1130 S 3800 W, Suite 200, Salt Lake City, Utah 84104.

 

RECITALS

 

WHEREAS, from time to time AB anticipates that it may elect to lease for itself, or cause a motor transportation carrier to lease, from Vendor zero emission hydrogen fueled tractors and related equipment (the “Dedicated Equipment”) to be used by such carrier to perform dedicated transportation and related services for AB (the “Services”) at agreed upon AB locations; and

 

WHEREAS, AB and Vendor have agreed that it would be beneficial to each party to have in place the terms and conditions that would govern the performance of each such lease between Vendor and AB or Vendor and each carrier, as the case may be.

 

NOW, THEREFORE, the parties agree as follows:

 

1.                                      Definitions.

 

(a)                                 “Agreement” shall mean these terms and conditions which are incorporated into each Order and shall govern the performance of the respective parties.

 

(b)                                 “Claims” shall have the meaning set forth in Section 9 of this Agreement.

 

(c)                                  “Confidential Information” shall have the meaning set forth in Section 8(b) of this Agreement.

 

(d)                                 “Dedicated Equipment” shall mean zero emission hydrogen fueled tractors and related equipment.

 

(e)                                  “Disclosing Party” shall have the meaning set forth in Section 8(a).

 

(f)                                   “Lease” shall have meaning set forth in Section 3 below.

 

(g)                                  “Network” shall mean the then AB breweries and distribution centers the current list of which is set forth on Exhibit A attached hereto and incorporated herein.

 

(h)                                 “Order” shall have the meaning set forth in Section 3 below.

 

(i)                                     “Permitted Recipients” shall have the meaning set forth in Section 8(c).

 

(j)                                    “Receiving Party” shall have the meaning set forth in Section 8(a).

 

 

(k)                                 “Records” shall have the meaning set forth in Section 11 of this Agreement.

 

(l)                                     “Specifications” shall mean the specifications set forth on Exhibit D attached hereto and incorporated herein by reference.

 

(m)                             “Term” shall have the meaning set forth in Section 2 of this Agreement.

 

2.                                      Term.

 

(a)                                 The term of this Agreement shall start on January 1, 2018 and shall remain available to cover future Leases between the parties or Vendor and the carriers until terminated in accordance with the provisions of Section 8 hereof (“Term”).

 

(b)                                 The term of each Lease will be for a period of 1,000,000 miles unless sooner terminated as provided therein.

 

3.                                      Scope.

 

(a)                                 The parties contemplate, and Vendor represents that it is prepared to lease Dedicated Equipment meeting the specifications according to Exhibit D with carriers designated by AB subject to Section 3(d) below.  AB agrees to only designate carriers that have an investment grade credit rating.  Each Lease shall be initiated using AB’s form of Purchaser Order (“Order”) which will require Vendor to enter into a detailed lease with either such carrier or AB, as the case may be, a copy of the form of which is attached hereto as Exhibit B or, if between Vendor and a designated carrier, as mutually agreed between such parties (the “Lease”).  Each Lease will specify the quantity of Dedicated Equipment required by AB, the AB location, the carrier to execute the Lease and/or operate the Dedicated Equipment and such other matters set forth therein.  In the event of a conflict between the terms and conditions of this Agreement and a Lease between AB and Vendor, the terms and conditions of the Lease shall govern.  In the event that AB desires to transition an AB location to another carrier, then either AB or such new carrier shall assume such carrier’s Lease, if applicable.

 

(b)                                 The parties understand that it is AB’s desire to transition its dedicated fleet operations to alternative fuel technology.  AB agrees to cause that its designated carriers use Vendor’s Dedicated Equipment for each AB location within the Network as set forth on Exhibit A.  It is the intent of the parties to have AB issue an Order and the parties execute a specific Lease for each AB location within the Network and to have Dedicated Equipment operational within the Network by December 31, 2021.  The estimated implementation timeline, as well as, the quantity of Dedicated Equipment required at each AB location within the Network is set forth on Exhibit C attached hereto and incorporated herein by reference.  The parties currently estimate that Vendor will supply over eight hundred (800) Dedicated Equipment units (plus or minus 25%, as agreed to between the parties) for use across AB’s Network, as detailed on Exhibit C.  AB agrees to use at least six hundred (600) Dedicated Equipment units within the Network, as long as Vendor can satisfy its obligations hereunder.

 

(c)                                  In consideration of the time and efforts expended by the parties hereto in evaluating the prospects of this relationship and negotiating this Agreement and transaction contemplated herein, and for other good and valuable consideration, AB will have priority of delivery for up to

 

2

 

20% of Nikola’s initial production line of class 8 Vehicles in order to begin the implementation of the Dedicated Equipment within the Network by December 31, 2021, in an effort to meet the implementation schedule set forth at Exhibit C.

 

(d)                                 Vendor understands that if AB and Vendor enter into the Lease, AB will sublease the Dedicated Equipment to a qualified carrier selected by AB at each location to operate the Dedicated Equipment to perform the Services.

 

(e)                                  Vendor shall perform the maintenance and repairs to the Dedicated Equipment as set forth in Section 4 below.

 

4.                                      Maintenance and Repairs.

 

(a)                                 For each Dedicated Equipment unit, Vendor will provide lubricants, tires, wipers, brakes and all other operating supplies, perform all maintenance and repairs, and supply all labor and parts required to keep the Dedicated Equipment in service.  Such services, parts and materials are included in the Rent defined below, except as set forth herein.

 

(b)                                 Only Vendor and parties expressly authorized by Vendor may repair, maintain or adjust the Dedicated Equipment.  AB agrees to not have a third party repair or make adjustments to Dedicated Equipment without Vendor’s consent.  Vendor will only pay for properly authorized and documented repairs.

 

(c)                                  Except as described in this Section 4(c), if a mechanical failure renders a Dedicated Equipment unit temporarily inoperable, Vendor agrees to supply the applicable carrier with a vehicle, as nearly as practicable the same size as the inoperable Dedicated Equipment (a “Substitute Vehicle”) at no extra cost except for the variable mileage charges.  Vendor agrees to provide the Substitute Vehicle where the Dedicated Equipment was disabled and AB agrees to return it to the facility that provided it.  All Substitute Vehicles will be governed by the terms of this Agreement and/or the applicable Lease.  Vendor will not furnish a Substitute Vehicle for any Dedicated Equipment that is out of service: (i) for preventive or scheduled maintenance; (ii) due to driver abuse; (iii) due to AB’s or carrier’s violation of the applicable Lease; (iv) for repair or maintenance of special equipment that Vendor is not responsible for maintaining; or (v) for physical damage caused by carrier.  Vendor will not furnish a Substitute Vehicle for any Vehicle that is lost or stolen.

 

(d)                                 AB understands that in the event a Substitute Vehicle, which does not run on alternative fuels or is not zero emissions, must be utilized in place of Dedicated Equipment, Nikola will in no way be responsible for AB’s inability to meet its carbon reduction goals or for any setbacks related to its clean fuels marketing initiatives.

 

(e)                                  Vendor agrees to provide road service for mechanical or tire failure (unless it results from driver abuse or a violation of this Agreement or the Lease).  Where Vendor is not responsible for road service, if requested, Vendor will coordinate road service for AB at AB’s expense.

 

(f)                                   AB or the carrier, as the case may be, will be responsible to pay for all damage, repairs, maintenance, and related expenses resulting from operation of Dedicated Equipment in violation of the applicable Lease.

 

3

 

5.                                      Compensation.

 

(a)                                 Rent.  The rent, inclusive of all costs and expenses as articulated in this section 5(a), unless otherwise agreed in writing between the parties, shall be [*] for each Dedicated Equipment unit leased and maintained hereunder and [*] for any Dedicated Equipment unit driven autonomously (“Rent”).  The Rent shall be firm for the term of the Lease.  The Rent shall include the use of the Dedication Equipment, all hydrogen fuel required to operate a Dedicated Equipment unit to perform the Services for up to [*], the warranty covering the Dedicated Equipment and the services provided by Vendor or its subcontracts, maintenance and repair service, scheduled maintenance, tires, wipers, all fluids and brakes.  To be clear, Rent shall not include the cost to insure the Dedicated Equipment, which will be the sole responsibility of AB or carrier, as the case may be.

 

(b)                                 Expenses.  AB shall not be billed for, and shall not pay, any expenses that have not been identified in an Order, otherwise pre-approved in writing by AB, or as otherwise agreed to herein.  In addition, any approved expense charged to AB must be supported by appropriately detailed invoices and receipts before the expense will be paid by AB.  AB will only reimburse Vendor for expenses actually incurred, and not estimated or anticipated expenses.

 

(c)                                  Business Change.  In the event of a business consolidation, acquisition, divestiture, relocation or other business change results in reduced or incremental need for Dedicated Equipment under an Order or this Agreement, then AB shall be entitled to a modification of the applicable Order to remove or add Dedicated Equipment, but in no event shall the removal or addition be more than a 10% change to the applicable Order; provided, however, if an Order has not been issued by the time of such business change, then AB may add or remove such location to the Network, as applicable.

 

(d)                                 Fuel Surcharge.  With respect to the Rent charged per mile for use of the Dedicated Equipment, the parties agree that Vendor will add a surcharge to reflect a significant increase in diesel fuel costs as set forth pursuant to Exhibit E, which is attached hereto and incorporated herein by reference.  Vendor shall furnish AB with a breakdown of the surcharge, if any, applied to each invoice as compared to the monthly Rent charged.

 

6.                                      Payment Terms.

 

(a)                                 AB agrees to pay Vendor, or cause Vendor to be paid by the applicable carrier, the Rent hereunder once monthly (currently, last day of the month) in accordance with AB’s payment disbursement cycle occurring after the receipt of invoice or shipment date, whichever is later, in accordance with the following:

 

	
Contract Year 1
    	
-
    	
thirty (30) days
    
	
Contract Year 2
    	
-
    	
thirty-
    
	
Contract Year 3
    	
-
    	
thirty-four (34) days
    
	
Contract Year 4
    	
-
    	
thirty-six (36) days
    
	
Contract Year 5
    	
-
    	
thirty-eight (38) days
    
	
Contract Year 6
    	
-
    	
forty (40) days
    
	
Contract Year 7
    	
-
    	
forty-two (42) days
    

 

4

 

Any amounts payable by either party under any provision of this Agreement or a Lease which are due on a Saturday, a Sunday, or a public holiday generally recognized in the United States, shall instead be due and payable on the first business day thereafter.

 

(b)                                 Vendor shall use AB’s automated freight payment system in submitting invoices and other billing items in the format directed by AB.

 

(c)                                  AB may offset against amounts owed to Vendor by AB hereunder with Vendor’s written consent.  Vendor may assess a service charge of [*] per month (or the highest lawful rate, if less) for any delayed payments.  All payments shall be made in U.S.  currency and at U.S.  rate of exchange.

 

(d)                                 If AB does not pay the invoiced amounts, Vendor must commence civil action or final and binding arbitration proceedings to recover such invoiced amounts within two (2) years of non-payment.  If Vendor alleges undercharges, or AB alleges overcharges, duplicate payment, or over collection, notice of such claims or unidentified payments must be given within 180 days of the date of the invoice and any civil action or arbitration proceeding must be filed within two (2) years.  Failure to give notice of such claims within said 180-day period or expiration of the eighteen (18) month term shall be a complete and absolute defense against any such claim, regardless of extenuating or mitigating circumstances or excuses of any nature, and shall forever bar any action for recovery of same.  The processing, investigation, and disposition of overcharge, unidentified payment, duplicate payment, or over collection claims shall be governed by present federal regulations codified at 49 C.F.R. Part 378.

 

7.                                      Termination and Test Period.

 

(a)                                 Either party may terminate this Agreement and/or any current Lease between the parties if the other party defaults in a material respect of any of its obligations hereunder, or in connection with the performance of any Lease between the parties, and such default is not cured within thirty (30) days following written notice to the party of such default.

 

(b)                                 AB may terminate this Agreement by giving Vendor at least three hundred sixty (360) days’ prior written notice of termination, except the term of any Lease shall continue until expiration thereof and any terms and conditions of this Agreement shall remain effective with respect to such Lease.

 

(c)                                  The obligations of Vendor and AB under Sections 7, 8, 9 and 11, shall survive the expiration or earlier termination of this Agreement.

 

(d)                                 Prior to AB issuing any Order hereunder, the parties agree to work together to perform a ninety (90) day road test of one (1) Dedicated Equipment unit to assure that it will perform according to the specifications set forth on Exhibit D.  If after the ninety (90) day test period the Dedicated Equipment unit does not generally satisfy the specifications set forth on Exhibit D, then AB may terminate this Agreement.

 

5

 

8.                                      Confidentiality.

 

(a)                                 The term “Disclosing Party” shall mean the party disclosing Confidential Information, as defined below, to the other party.  The term “Receiving Party” shall mean the party receiving Confidential Information from the Disclosing Party.

 

(b)                                 The term “Confidential Information” shall mean any and all information that the Disclosing Party (or its affiliates) has furnished or is furnishing to the Receiving Party (or its affiliates), whether furnished before or after the date of this Agreement, whether tangible or intangible and whatever form or medium provided, including all information generated by the Receiving Party that contains, reflects or is derived from the furnished information; provided that Confidential Information shall not include any information which:

 

(1)                                 is already known to the Receiving Party (as shown by documentary evidence) at the time of disclosure by the Disclosing Party and was not received directly or indirectly from the Disclosing Party under an obligation of confidentiality;

 

(2)                                 is or becomes generally available to the public other than as a result of a disclosure by a party in breach of an obligation of confidentiality;

 

(3)                                 becomes available to the Receiving Party on a non-confidential basis from a source (other than the Disclosing Party, its agents, representatives, contractors or employees) as a matter of legal right and not under a duty of confidentiality to the Disclosing Party; or

 

(4)                                 is independently developed by agents of the Receiving Party without the use, or the benefit, of any Confidential Information.

 

(c)                                  In consideration of the Disclosing Party’s disclosure to the Receiving Party of Confidential Information, the Receiving Party shall retain in strict confidence, and not disclose in any manner whatsoever, in whole or in part, to any person other than Permitted Recipients (defined below), or use for any purpose other than in connection with its performance of a party’s obligations hereunder, any Confidential Information.  The Receiving Party may disclose the Confidential Information to its direct and indirect parents, subsidiaries and affiliates and its and their respective directors, officers, employees, advisors, representatives and any carrier executing a Lease or sublease as described hereunder, and in the case of Vendor, its permitted subcontractors (collectively, the “Permitted Recipients”), who need to know the Confidential Information for the purposes of receiving or performing the their obligations hereunder provided that such Permitted Recipients are legally obligated to the Receiving Party: (i) to hold such information in confidence under obligations of confidentiality at least as stringent as those herein and (ii) to use such information only for the purposes expressed herein; provided further that, neither party may disclose the other party’s Confidential Information to any competitor of the other party, without such other party’s prior written consent.  Receiving Party agrees, at its sole expense, to take all reasonable measures from prohibited or unauthorized disclosure or use of the Confidential Information and shall be liable for any breach by Permitted Recipients.

 

(d)                                 Nothing in this Agreement shall obligate either party to refrain from disclosure of Confidential Information to the extent such disclosure is required by law.  In the event that any Confidential Information is required to be disclosed by law, including without limitation,

 

6

 

pursuant to the terms of a subpoena or similar document or in connection with litigation, arbitration or other proceedings, the Receiving Party shall use its reasonable efforts to give prior prompt notice of such disclosure to the Disclosing Party, and shall allow the Disclosing Party, in its sole discretion and at its sole expense, to contest the disclosure of Confidential Information on the Disclosing Party’s behalf, and the Receiving Party will reasonably cooperate with the Disclosing Party in such efforts to contest such disclosure.  In the event such disclosure is not successfully contested, the Receiving Party agrees to furnish only that portion of the Confidential Information which is legally required to be disclosed and will exercise reasonable efforts to obtain confidential treatment for that part of the Confidential Information being disclosed.

 

(e)                                  Upon the expiration or earlier termination of this Agreement, the Receiving Party shall return all originals and copies of any Confidential Information to the Disclosing Party or, with respect to copies, upon written request, shall certify to the Disclosing Party that all copies of Confidential Information in the Receiving Party’s control have been destroyed.  In the event of a breach or threatened breach by the Receiving Party of the provisions of this Section 8, the Disclosing Party shall be entitled to seek an injunction (without posting any bond therefor) restraining the Receiving Party from disclosing, in whole or in part, any such Confidential Information or from rendering any service to any third party to whom the Confidential Information, in whole or in part, has been disclosed or to whom the Receiving Party is threatening to disclose same.  Nothing herein shall be construed as prohibiting the Disclosing Party from pursuing any other remedies available to Disclosing Party for such breach or threatened breach, including the recovery of damages.  Notwithstanding the foregoing, the Receiving Party shall not be required to return to the Disclosing Party or destroy copies of Disclosing Party’s Confidential Information that (i) reside on the Receiving Party’s backup, disaster recovery or business continuity systems, or (ii) that the Receiving Party is obligated by applicable law and/or industry and/or governmental regulations to retain, which copies shall remain subject to the duty of confidentiality under this Section 8.

 

(f)                                   Vendor acknowledges that AB is committed to providing an excellent service to its wholesalers.  To deliver this service and provide them with the operational visibility AB’s wholesalers have come to expect, AB provides its wholesalers with a centralized portal that allows them to track & trace their incoming loads.  To enable this portal’s functionality, we expect telematics data to be provided by the Vendor.  If Vendor is not able to provide such data to AB or the applicable carrier within a reasonable frequency and level of accuracy, then AB may, with Vendor’s written consent and at AB’s sole cost and expense, install in the Dedicated Equipment certain tracking/monitoring equipment to allow AB and/or third parties designated by AB including but not limited 10-4 Systems, Inc. to be able to access certain location, position, tracking and other data including but not limited to hard braking, over acceleration, etc. in connection with the Services received by AB from the carriers to assist AB in improving logistics management.  Vendor shall have complete control over which data will be provided to third parties that install the tracking/monitoring equipment.  If third parties require Vendor’s assistance to make the tracking/monitoring equipment function correctly, AB shall pay Vendor’s reasonable and customary costs to cover the time, travel and hardware needed to make such items function properly with the Dedicated Equipment.  If third party’s tracking/monitoring equipment causes any errors that deem any Dedicated Equipment unit inoperable, as between AB or AB’s designated carriers and Vendor, AB shall bear sole responsibly for the inoperable equipment and shall not be entitled to any Substitute Vehicles.

 

7

 

9.                                      Indemnification and Insurance.

 

(a)                                 Vendor agrees to indemnify, defend and hold AB, its parents, subsidiaries and affiliates and their respective officers, directors, employees and agents (the “AB Parties”) harmless from and against any and all claims, injuries, judgments, damages, liabilities, losses, costs and expenses, including, without limitation, reasonable attorneys’ fees, court costs (including those incurred at the trial and appellate levels and in any bankruptcy, reorganization, insolvency or similar proceedings) and other legal expenses (collectively, “Claims”), suffered or incurred by an AB Party, its employees or third parties arising out of or in connection with (i) Vendor’s breach of this Agreement or any Lease, or (ii) the negligence, willful misconduct or other intentional tort of Vendor, its subcontractors and their respective employees, agents or contractors in the performance of this Agreement or any Lease.  In no event will Nikola be responsible for AB’s inability to meet its carbon reduction goals, or for any setbacks related to its clean fuels marketing initiatives, or any other related issues or damages as a result of using Substitution Vehicles.

 

(b)                                 AB agrees to indemnify, defend and hold Vendor, its parents, subsidiaries and affiliates and their respective officers, directors, employees and agents (the “Vendor Parties”) harmless from and against any and all Claims, suffered or incurred by a Vendor Party, its employees or third parties arising out of or in connection with (i) AB’s breach of this Agreement or any Lease, or (ii) the negligence, willful misconduct or other tort of AB, its subcontractors and their respective employees, agents or contractors in the performance of this Agreement or any Lease.

 

(c)                                  Each party shall give the other party prompt notice of any Claim coming within the purview of these indemnities.  The indemnifying party will assume the defense of any Claim against an indemnified party with counsel reasonably satisfactory to the other party and will, upon the request of such other party, allow such other party to participate in the defense thereof, such participation to be at the expense of such other party.  Each party will reasonably cooperate with the other party in the defense and will, at such other party’s expense, provide all relevant documents, witnesses and other assistance within its possession or control upon the reasonable request of such other party.

 

(d)                                 If AB or carrier enters into a Lease with Vendor, Vendor shall maintain the following insurance, at Vendor’s cost and expense: (i) a policy of commercial general liability in the amount of $1,000,000 per occurrence, naming AB as an additional insured, (ii) workers’ compensation insurance, at the applicable required statutory limits, and employer’s liability insurance, with a limit per occurrence of no less than $1,000,000, (iii) Garage Keeper’s physical damage insurance, with a comprehensive/collision limit of $100,000, (iv) automobile liability insurance, with a combined single limit per occurrence of $2,000,000, for bodily injury and property damage, naming AB as an additional insured, and (v) umbrella liability coverage with a limit per occurrence of no less than $5,000,000 in excess of the underlying policy limits.

 

(e)                                  If AB enters into a Lease with Vendor, AB shall maintain and require carrier to maintain the following insurance, at AB’s cost and expense: (i) a policy of commercial general liability in the amount of $1,000,000 per occurrence, naming Vendor as an additional insured, (ii) workers’ compensation insurance, at the applicable required statutory limits, and employer’s liability insurance, with a limit per occurrence of no less than $1,000,000, (iii) automobile liability

 

8

 

insurance, with a combined single limit per occurrence of $2,000,000, for bodily injury and property damage, naming Vendor as an additional insured, and (v) umbrella liability coverage with a limit per occurrence of no less than $5,000,000 in excess of the underlying policy limits.

 

(f)                                   Each of the policies described above shall (i) be provided by an A-rated carrier reasonably acceptable to the other party, and (ii) contain the condition that such insurance is primary and any liability insurance maintained by the other party is excess and non-contributory.  Upon request by a party hereto, the other party shall deliver to such party certificates of insurance evidencing all insurance coverage required hereby.  If a party fails to provide proof of any of the insurance required hereby, within thirty (30) days’ written notice, such other party shall have the right to terminate this Agreement upon written notice to the party.

 

(g)                                  NOTWITHSTANDING THE FOREGOING, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOST PROFITS OR PUNITIVE DAAMAGES IN AN AMOUNT EXCEEDING $10,000,000.  THE FOREGOING CAP SHALL NOT APPLY TO CLAIMS ARISING FROM FRAUD BY A PARTY, THIRD PARTY CLAIMS OR VENDOR’S UNEXCUSED REFUSAL TO PERFORM UNDER THIS AGREEMENT WITH REASONABLE KNOWLEDGE OR INTENTION THAT SUCH REFUSAL SHALL CAUSE MAJOR INTERRUPTION WITH, OR MAJOR DISRUPTION TO, AB’S OPERATIONS.

 

10.                               Warranties.  Vendor represents, warrants and covenants to AB as follows:

 

(a)                                 It has the full right and legal authority to enter into and fully perform the Order and this Agreement in accordance with its terms.

 

(b)                                 This Agreement, when executed and delivered by Vendor, and the Order will be its legal, valid and binding obligation enforceable against it in accordance with its terms.

 

(c)                                  The execution and delivery of this Agreement have been duly authorized by Vendor, and such execution and delivery and the performance by Vendor of its obligations hereunder and under all Orders, do not and will not violate or cause a breach of any agreement or other obligation to which it is a party or by which it is bound or affected that will impact Vendor’s performance of Services hereunder.

 

(d)                                 The Equipment will meet the Specifications set forth on Exhibit D attached hereto and incorporated herein by reference.

 

(e)                                  Vendor represents, warrants and covenants to AB that all services shall be performed in a professional and workman-like manner in compliance with all applicable laws.

 

11.                               Books and Records.

 

(a)                                 During the Term hereof and for a period of at least one (1) year thereafter, Vendor shall maintain such books and records (collectively, “Records”) as are reasonably necessary to substantiate that Vendor is in compliance with this Agreement including that (a) all representations and warranties made by Vendor in this Agreement are true and correct in all

 

9

 

respects, (b) all invoices and other charges submitted to AB for payment were valid and proper, and (c) no payments have been made, directly or indirectly, by or on behalf of Vendor to or for the benefit of any AB employee or agent who may reasonably be expected to influence either AB’s decision to enter into this Agreement or any Order or the amount to be paid by AB pursuant hereto. (As used herein, “payments” shall include money, property, services, and all other forms of consideration.) All Records shall be maintained in accordance with generally accepted accounting principles consistently applied.  AB and its representatives shall have the right at any time during normal business hours, upon seventy-two (72) hours, notice, to examine the Records and discuss the Records with Vendor’s officers, employees and independent public accountants as AB deems necessary.

 

(b)                                 During the Term hereof and for a period of at least one (1) thereafter, AB shall maintain such books and records (collectively, “Records”) as are reasonably necessary to substantiate that AB is in compliance with this Agreement including that (a) all representations and warranties made by AB in this Agreement are true and correct in all respects, (b) all invoices and other charges submitted to Vendor for payment were valid and proper, and (c) no payments have been made, directly or indirectly, by or on behalf of AB to or for the benefit of any Vendor employee or agent who may reasonably be expected to influence either Vendor’s decision to enter into this Agreement or any Order or the amount to be paid by Vendor pursuant hereto. (As used herein, “payments” shall include money, property, services, and all other forms of consideration.) All Records shall be maintained in accordance with generally accepted accounting principles consistently applied.  Vendor and its representatives shall have the right at any time during normal business hours, upon seventy-two (72) hours, notice, to examine the Records and discuss the Records with AB’s officers, employees and independent public accountants as Vendor deems necessary.

 

12.                               Independent Contractor.  Vendor shall be and act as an independent contractor, and not as an agent, partner or employee, in the performance of the applicable Order and this Agreement.  Vendor, its employees and the contractors engaged by it are not employees of AB or any of its Affiliates.  AB shall not be responsible for the health, safety, property of or liability to third parties by Vendor, its employees or any contractor engaged by Vendor.

 

13.                               Notices.  Except as otherwise expressly provided in this Agreement, any notice, communication or demand required or permitted by any provision of this Agreement shall be in writing and shall be deemed to have been sufficiently given or served for all purposes (a) when delivered in person, (b) when sent by Certified Mail, return receipt requested, all postage and other charges prepaid, (c) in the case of overnight courier services, one (1) business day after delivery to the overnight courier service with payment provided for, or (d) when sent via email, in each case addressed as follows:

 

	
If to AB:
    	
If to Vendor:
    
	
 
    	
 
    
	
 
    	
If to Vendor:
    
	
Anheuser-Busch, LLC
    	
Nikola Corporation
    
	
Attn: Sr. Director,   Transportation Procurement
    	
Attn: Chief Legal   Officer
    
	
One Busch Place
    	
11 SOS 3800 W,   Suite 200
    
	
St. Louis, Missouri   63118
    	
Salt Lake City Utah   84104
    
	
Email:
    	
Email:
    

 

10

 

or to such other address as any party may designate by notice to the other party in accordance with the terms of this section.

 

14.                               Compliance with the Law.  Each party shall, at its sole cost and expense comply with all applicable laws, statutes, ordinances and governmental rules, regulations or requirements now in force or which may hereafter be in force during the term of this Agreement including but not limited to DOT regulations.

 

15.                               Equal Employment Opportunity.  AB is an equal opportunity employer and federal contractor or subcontractor.  Consequently, the parties agree that, as applicable, they will abide by the requirements of 41 CFR 60-1.4(a), 41 CFR 60-300.5(a) and 41 CFR 60- 741.5(a) and that these laws are incorporated herein by reference.  These regulations prohibit discrimination against qualified individuals based on their status as protected veterans or individuals with disabilities, and prohibit discrimination against all individuals based on their race, color, religion, sex, or national origin.  These regulations require that covered prime contractors and subcontractors take affirmative action to employ and advance in employment individuals without regard to race, color, religion, sex, national origin, protected veteran status or disability.  The parties also agree that, as applicable, they will abide by the requirements of Executive Order 13496 (29 CFR Part 471, Appendix A to Subpart A), relating to the notice of employee rights under federal labor laws.

 

16.                               Anti-Bribery.  Vendor covenants and agrees that in performing its obligations under this Agreement, in carrying out the transactions under this Agreement and in obtaining any governmental approvals required in connection with this Agreement, none of Vendor and its officers, directors, employees and agents will offer, pay, promise or authorize payment of anything of value to any government official, political party or political candidate, in violation of any anti-bribery or anti-corruption laws, or take any other action that would violate any anti- bribery or anti-corruption laws binding on such person or in effect in any jurisdiction in which such action is taken.  Vendor expressly confirms having read and agreed with the AB InBev Global Responsible Sourcing Policy, which can be found at:

 

http://www.ab-inbev.com/content/dam/universaltemplate/ab-inbev/Better%20World/Our%20Policies/Final%20Responsible%20Sourcing%20Policy%20102317.pdf.

 

17.                               Dispute Resolution.  The Parties agree that this Agreement is being entered into in good faith and that if a dispute arises in its application or interpretation that:

 

(a)                                 They shall attempt to resolve said dispute between themselves or upon mutual agreement by the intervention of an experienced mediator and upon the terms and cost allocation agreed upon.

 

(b)                                 If a dispute is not resolved voluntarily, good faith considerations shall be given to submitting the dispute to final and binding arbitration under the Commercial Rules of the American Arbitration Association before a single arbitrator at a point mutually agreed upon or if no point is agreed upon at the offices of the Association closest to Carrier.  The award of the arbitrator may be enforced in any court of competent jurisdiction.

 

11

 

(c)                                  If arbitration is not agreed to, or if the dispute involves a remedy not otherwise available in arbitration such as, but not limited to, injunctions, criminal penalties, or certain equitable relief, civil action may be pursued subject to the following: (i) jury trials are waived by the Parties, and (ii) service by certified mail to the persons specified as being entitled to notice under this Agreement and to the address shown shall constitute valid and binding service of process.

 

(d)                                 Any disputes which arise on movements to, from or within Mexico and/or Canada which cannot be resolved between Vendor and AB shall be resolved by final and binding arbitration as provided in this section.

 

18.                               Compliance with Laws and Regulations.  The parties shall at all times comply with all applicable federal, state, municipal, and provincial laws, rules, and regulations including, but not limited to, the federal and state safety regulations.  To the extent this Agreement or any services provided hereunder shall conflict with such laws, rules and regulations, this Agreement and the services provided hereunder shall be modified to comply with such laws, rules, and regulations.

 

19.                               Most Favored Customer.  If at any during the Term Vendor or any of its affiliates sells or leases equipment materially the same as the Dedicated Equipment at a delivered price (net of all discounts, allowances and any other price considerations) which is less than the Rent charged to AB, then the Rent charged to AB shall be reduced to such lower price.  Any such reduction in Rent shall be retroactive to the date Vendor or any of its affiliates began selling or leasing equipment at the lower price and shall remain in effect as long as such lower price is in effect with such other third party.  If requested, Vendor shall furnish AB with a certificate signed by an authorized officer of Vendor confirming Vendor’s compliance with this Section for the preceding year.

 

20.                               Miscellaneous.

 

(a)                                 This Agreement cannot be modified except by an agreement in writing specifically referring to this Agreement and signed by authorized representatives of Vendor and AB.

 

(b)                                 The rights and remedies set forth herein are intended to be cumulative, and the exercise of any one right or remedy by either party shall not preclude or waive its exercise of any other rights or remedies hereunder or pursuant to law or equity.

 

(c)                                  If any part of this Agreement is held to be invalid for any reason, the remaining portion shall remain in full force and effect.  The invalid provision shall be replaced by a substitute provision which is valid and as nearly as possible maintains the same economic purposes and intentions of the invalid provision.

 

12

 

(d)                                 In the event performance by one party is affected by any cause beyond the reasonable control of such party, including without limitation fire, labor strife, riot, war, weather conditions, acts of the public enemy, act of God, acts of terrorism, local or national disruptions to transportation networks or operations, material equipment repairs, fuel shortages, governmental regulations, or governmental request or requisition for national defense, and provided that the applicable cause is not attributable to the acts or omissions of such party, and such party is taking reasonable measures to remove or mitigate the effects of the applicable cause, then the running of all periods of time mentioned herein and the performance of all obligations required herein shall be suspended during the continuance of such interruption, and such party shall promptly notify the other party of such interruption.  Such period of suspension shall not in any way invalidate this Agreement, but on resumption of operations, any affected performance by such party shall be resumed.  No liability shall be incurred by either party for damages resulting from such suspensions.

 

(e)                                  For any Lease between Vendor and a carrier contemplated hereunder, AB shall be an intended third party beneficiary of such Lease.

 

(f)                                   This Agreement shall be governed by Delaware law, without reference to its principles of conflicts of law.

 

(g)                                  This Agreement constitutes the entire understanding between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous agreements in regard thereto.  This Agreement may not be varied, modified, altered, or amended except in writing signed by the parties and shall supersede any “shrink wrap”, “click wrap” or “click through” terms that may be included with any Services or materials provided by Vendor under an Order.

 

(h)                                 The failure of a party to insist upon strict adherence to any provision of this Agreement on any occasion shall not be considered a waiver thereof or deprive that party of the right thereafter to insist upon strict adherence to that provision or any other provision of this Agreement.

 

(i)                                     The parties agree that each party has reviewed this Agreement and the normal rule of construction that any ambiguities are to be resolved against the drafting party shall not be employed in the construction of this Agreement.

 

(j)                                    Neither party may assign its rights or delegate its duties hereunder to any third party (whether by sale, transfer, merger or consolidation or otherwise) without the prior written consent of the other party; provided, AB and Vendor may assign this Agreement to an Affiliate without such consent.  Any attempted assignment or delegation without such consent shall be void and constitute a material breach.  Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the parties, their respective successors and approved assigns.

 

(k)                                 Neither AB nor Vendor shall use the name (or any trademark, logo, or service mark) of the other party or its affiliates without the prior written consent of the other party in each instance.  AB and Vendor shall not, without the prior written consent of the other party in each instance, make any public announcement, issue any press release, make any statement to any third party, or make or authorize the publication of any article, either externally or internally,

 

13

 

which identifies, relates to, or otherwise gives publicity to this Agreement.  Violation of this Section shall constitute a material breach of this Agreement.

 

(l)                                     This Agreement may be executed in counterparts, and by manual, facsimile or .pdf signature, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

SIGNATURE PAGE FOLLOWS

 

14

 

IN WITNESS WHEREOF, the parties have executed this Agreement on the date set forth above.

 

	
NIKOLA MOTOR COMPANY,   LLC
    	
 
    	
ANHEUSER-BUSCH, LLC
    
	
 
    	
 
    	
 
    
	
By:
    	
Nikola Corporation
    	
 
    	
By:
    	
/s/ Ingrid De Ryck
    
	
Its:
    	
sole owner
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Trevor Milton
    	
 
    	
Name:
    	
Ingrid De Ryck
    
	
Name:
    	
Trevor Milton
    	
 
    	
Title:
    	
VP   Procurement & Sustainability
    
	
Title:
    	
CEO
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Fued Sadala
    
	
 
    	
 
    	
Name:
    	
Fued Sadala
    
	
 
    	
 
    	
Title:
    	
VP Logistics
    

 

15Exhibit 10.17

 

GNH AND NIKOLA CONFIDENTIAL

Execution Version

 

COMMERCIAL FRAMEWORK AGREEMENT

 

This COMMERCIAL FRAMEWORK AGREEMENT (this “Agreement”), dated as of November 9, 2018 (the “Effective Date”), is by and between Nikola Corporation, a Delaware corporation, with offices located at 4141 E. Broadway Rd, Phoenix, AZ 85040 (“Nikola”) and Green Nikola Holdings LLC, a Delaware limited liability company, with offices located at 251 Little Falls Drive, Wilmington, DE (“GNH”). Each of Nikola and GNH as referred to herein as a “Party” and referred to collectively as the “Parties.”

 

W I T N E S S E T H:

 

WHEREAS, in connection with GNH’s subscription for and purchase of certain Nikola shares, the Parties intend to enter into certain commercial arrangements described more fully herein;

 

NOW, THEREFORE, in consideration of the foregoing and the covenants, conditions and undertakings contained herein, the Parties agree as follows:

 

ARTICLE I

 

DEFINITIONS; INTERPRETATION

 

Section 1.1                                    Definitions. The following defined terms used in this Agreement shall, unless the context otherwise requires, have the meanings specified in this Article I.

 

(a)                                 “Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with the first Person. For purposes of this definition, “control” (and its derivatives) mean with respect to any Person, the possession, directly or indirectly, of the power (whether through the ownership of voting interests, by contract or otherwise) to direct or cause the direction of the management and policies of (i) such Person or (ii) (where applicable) that Person’s general partner, managing member or sole manager.

 

(b)                                 “China” means the People’s Republic of China, excluding Hong Kong, Macau and Taiwan.

 

(c)                                  “Confidential Information” means all materials and information, oral or written, disclosed directly or indirectly, that is disclosed (i) in writing and clearly marked with a “proprietary,” “confidential” or similar legend; or (ii) orally or visually or in writing without an appropriate legend or similar designation, if it would be apparent to a reasonable person that such information is of a confidential or proprietary nature or if confirmed to be confidential in writing by Provider within thirty (30) days after such disclosure. “Confidential Information” includes any and all information concerning the business and affairs of a Party or its Affiliates, product specifications, procedures, formulae, compositions, processes, designs, sketches, photographs, videos, images, graphs, details, plans, drawings, samples, drafts, inventions, models, documentation, techniques, diagrams, flowcharts, new products and new technology information,

 

 

licenses or any other form of Intellectual Property Rights, formulations and other technical data, manufacturing, development, material development or marketing timetables, strategies, ideas, business plans and development plans, and past, current and planned research and development, currently and planned manufacturing and distribution methods and processes, clients, customers, contacts, vendors, suppliers, customer lists, current customer requirements, spreadsheets, financial statements, bank statements and account information, procedures, methods, contracts, computer systems, forms, budgets and financial projections and any and all notes, analyses, compilations, studies summaries, and any materials containing or based, in whole or in part, on any information included in the forgoing (in any form, format, media, or medium including paper, electronic media and all forms of electronic delivery).

 

Notwithstanding the foregoing, “Confidential Information” shall not include information that is: (v) at any time in the public domain other than by a breach of this Agreement or other obligation of confidentiality to Provider on the part of Recipient; (w) at any time rightfully received from a third party that has the right and transmits it to Recipient without any obligation of confidentiality; (x) rightfully known to Recipient prior to receipt of the same directly or indirectly from Provider; (y) independently developed by personnel of Recipient who have not had access to the Confidential Information; or (z) generally made available to third parties by Provider without restriction concerning use or disclosure.

 

(d)                                 “EV” means electric vehicles (with or without hydrogen fuel cells).

 

(e)                                  “Facility” means any EV manufacturing facility.

 

(f)                                   “Governmental Authority” means any supranational, national, federal, state or local government body in any jurisdiction, or any court, tribunal, arbitrator in any jurisdiction.

 

(g)                                  “Intellectual Property Rights” means all intellectual property rights and related priority rights, whether protected, created or arising under the Laws of any jurisdiction, including all rights arising from patents, copyrights and trade secrets, and all registrations, applications, renewals, extensions and reversions of any of the foregoing; provided that “Intellectual Property Rights” excludes all Trademarks.

 

(h)                                 “Law” shall mean any statute, law or ordinance in any jurisdiction, or any rule or regulation of any Governmental Authority.

 

(i)                                     “Middle East” means Bahrain, Cyprus, Egypt, Gaza Strip, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Palestine, Qatar, Saudi Arabia, Syria, United Arab Emirates, West Bank and Yemen.

 

(j)                                    “Nikola Change of Control” mean the acquisition by a third party directly or indirectly of ownership or control of fifty percent (50%) or more of the voting shares or other equity interest in Nikola, the acquisition through equity ownership or other means of the ability to direct the policies or to vote on the election of directors of Nikola, or the sale of all or substantially all of the assets of Nikola.

 

2

 

(k)                                 “Person” means any individual, general partnership, limited partnership, limited liability company, limited liability partnership, joint venture, firm, corporation, association, incorporated organization, unincorporated organization, trust or other enterprise, or any Governmental Authority.

 

(l)                                     “Personnel” means, with respect to a Person, the employees, directors, officers, representatives, agents and contractors of such Person, or any of the foregoing.

 

(m)                             “Project” has the meaning set forth in Section 2.1.

 

(n)                                 “PV Panel” means photovoltaic solar modules or related products.

 

(o)                                 “Right of First Offer” means that prior to soliciting offers from any third party with respect to a project (a “Proposed Project”), Nikola shall provide prior written notice to GNH of Nikola’s bona fide intention to enter into an agreement or arrangement with respect to such Proposed Project. Such notice shall set forth the intended parameters of such Proposed Project in sufficient detail to permit GNH to make a first offer with respect to such Proposed Project. Upon receipt of such notice, GNH shall have the right to make a first offer with respect to such Proposed Project in writing setting forth the customary principal terms and conditions. Nikola shall consider and respond to such offer in good faith prior to soliciting offers from any third party. If Nikola rejects such offer, Nikola may accept an offer from a third party, but only on material terms and conditions that are more favorable to Nikola than the material terms and conditions of GNH’s offer.

 

(p)                                 Right of Last Refusal” means that prior to accepting any bona fide offer to enter into an agreement or arrangement for a Proposed Project, Nikola shall notify GNH in writing of the name of the third-party offeror and the proposed terms and conditions of such Proposed Project. GNH shall have the option (exercisable within thirty (30) days of receipt of such written notice) to lead such Proposed Project on the same terms and conditions as set forth in such notice. If GNH declines to exercise such option, but Nikola fails to execute a definitive agreement on the terms and conditions set forth in the notice within thirty (30) days, the Right of Last Refusal shall revive and apply to each and every further offer or offers received by Nikola with respect to such Proposed Project.

 

(q)                                 “Services” has the meaning set forth in Section 2.1.

 

(r)                                    “SOW” has the meaning set forth in Section 2.1.

 

(s)                                   “Station” a commercial electrolyzer-based hydrogen generation, processing, storage or dispensing station, together with any ancillary retail, hospitality or other businesses that may be operating on the same premises.

 

(t)                                    “Tax” means tax of any kind, including any U.S. federal, state, local or non-U.S. income, net income, gross income, corporation, profit, license, severance, occupation, windfall profits, capital gains, capital stock, transfer, registration, social security, production, franchise, gross receipts, payroll, sales, employment, unemployment, disability, use, property,

 

3

 

excise, value added, estimated, stamp, escheat obligation alternative or add-on minimum, environmental, foreign or domestic withholding tax, and any other tax or similar governmental charge, duty or assessment, together with all interest and penalties and additions thereto imposed with respect to such amounts, in each case whether disputed or not.

 

(u)                                 “Territory” means the United States, Australia and Asia (excluding the Middle East, Russia and China).

 

(v)                                 “Trademarks” means trademarks, trade names, corporate names, business names, trade styles, get up, trade dress, product and service names, words, symbols, devices, designs, service marks, logos, taglines, sounds, or other designation or distinctive sign, or any combinations thereof, other source or business identifiers and general intangibles of like nature, together with goodwill associated therewith, whether registered or unregistered, arising under the Laws of any jurisdiction, and registrations and applications for registration with respect to any of the foregoing.

 

(w)                               “United States” means the United States of America and its outlying areas.

 

Section 1.2                                    Interpretation.

 

(a)                                 For purposes of this Agreement: (i) the words “include,” “includes” and “including” are deemed to be followed by the words “without limitation”; (ii) the word “or” is not exclusive; (iii) the words “herein,” “hereof,” “hereby,” “hereto” and “hereunder” refer to this Agreement as a whole; (iv) words denoting the singular have a comparable meaning when used in the plural, and vice versa; and (v) words denoting any gender include all genders.

 

(b)                                 Unless the context otherwise requires, references in this Agreement: (i) to Sections, Articles and SOWs mean the sections and articles of, and statements of work attached to, this Agreement; (ii) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof; and (iii) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder.

 

(c)                                  Headings as used herein are for convenience only, and shall not be construed as defining the scope or meaning of any provisions.

 

(d)                                 The Parties have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement.

 

4

 

ARTICLE II

 

PROJECTS

 

Section 2.1                                    Projects; Statements of Work. Subject to the terms and conditions of this Agreement, GNH will provide certain services (“Services”) to Nikola and Nikola will make certain commitments to GNH (each, a “Project”) pursuant to statements of work (each, an “SOW”) to be agreed by the Parties. Except as expressly set forth in an SOW, the terms and conditions of this Agreement shall apply to each SOW.

 

Section 2.2                                    Roles of Affiliates. Subject to Section 9.4, each Project may be assigned, subcontracted or delegated (in each case, in whole or in part) by either Party to any of its Affiliates in its sole discretion.

 

Section 2.3                                    Tax Matters.

 

(a)                                 Nikola or its Affiliates shall be entitled to deduct and withhold Taxes required by any applicable Law to be withheld on payments made pursuant to this Agreement or a relevant SOW. To the extent any amounts are so withheld, Nikola or its Affiliates shall (i) pay, in addition to the amount otherwise due to GNH or any its Affiliates under this Agreement or a relevant SOW, such additional amount as is necessary to ensure that the net amount actually received by GNH or any its Affiliates plus the value to GNH or its Affiliates of any credits or deductions with respect to any Taxes withheld or deducted by Nikola will equal the full amount GNH or any its Affiliates would have received had no such deduction or withholding been required, provided, however, that Nikola or its Affiliates shall only be required to pay the additional amounts under this Section 2.3(a)(i) or Section 2.3(b) once with respect to any Taxes, (ii) pay such deducted and withheld amount to the proper Governmental Authority, and (iii) promptly provide to GNH or its Affiliates evidence of such payment to such Governmental Authority. GNH or any its Affiliates shall, prior to the date of any payment to be made pursuant to this Agreement or a relevant SOW, at the reasonable request of Nikola or any its Affiliates, make commercially reasonable efforts to provide Nikola or any of its Affiliates any certificate or other documentary evidence required by applicable Law in order to reduce the amount of any Taxes that may be deducted or withheld from such payment, and Nikola or any its Affiliates agrees to accept and act in reliance on any such duly and properly executed certificate or other applicable documentary evidence. The Parties agree to cooperate, in good faith, to reduce any amounts required to be withheld or deducted under applicable Law.

 

(b)                                 Except as set forth in Section 2.3(a), all sums payable by Nikola or its Affiliates under this Agreement or a relevant SOW are exclusive of Taxes, and Nikola or its relevant Affiliate shall make an additional payment to GNH or its relevant Affiliate in an amount equal to any Taxes imposed on GNH or its relevant Affiliate with respect to those sums, other than those measured by net income.

 

Section 2.4                                    Audit. GNH shall keep and maintain books and records of its performance of the Services and activities under the Agreement. With respect to any SOWs for which an audit right is included (“Audit Right”), Nikola shall have the right upon reasonable notice and during

 

5

 

business hours to inspect such books and records or the GNH’s facilities upon which the Services are performed, as applicable. Nikola shall be responsible for its costs of such audit except in the event that a breach having a value of more than five percent (5%) of the value of the Services for the period audit is determined to have occurred, in which case GNH shall be responsible for the reasonable costs of such audit.

 

ARTICLE III

 

INTELLECTUAL PROPERTY

 

Section 3.1                                    Pre-Existing IP Rights. As between the Parties, each Party shall retain ownership of all Intellectual Property Rights conceived, invented or developed by such Party prior to the Effective Date.

 

Section 3.2                                    Developed IP. As between the Parties, ownership of the Intellectual Property Rights that are conceived, invented or developed during the Term shall be allocated between the Parties as set forth below in this Section 3.2.

 

(a)                                 Except as set forth in Section 3.2(b), as between the Parties, all Intellectual Property Rights that are conceived, invented or developed by the Personnel of GNH or its Affiliates, shall be owned solely by GNH, including with respect to any such Intellectual Property Rights conceived, invented or developed in connection with the provision of any Services.

 

(b)                                 All Intellectual Property Rights that are conceived, invented or developed by the Personnel of GNH or its Affiliates, jointly with Personnel of Nikola or its Affiliates, shall be jointly owned by GNH and Nikola, except as expressly provided in an SOW (“Jointly Developed IP”).

 

(c)                                  Except as set forth in Section 3.2(b), as between the Parties, all Intellectual Property Rights that are conceived, invented or developed by the Personnel of Nikola or its Affiliates alone or jointly shall be owned solely by Nikola, including with respect to any such Intellectual Property Rights conceived, invented or developed in connection with the provision or receipt of any Services.

 

Section 3.3                                    Reservation of Rights.

 

(a)                                 No license, immunity, or other right is granted herein by any Party or its Affiliates to another Party or its Affiliates, whether directly or by implication, estoppel or otherwise, with respect to any Intellectual Property Right or Trademark. Unless otherwise agreed to in an SOW or another separate written agreement between the Parties and as expressly set forth in this Agreement, a Party and its Affiliates (i) acquires no right, title or interest in or to any Intellectual Property Rights or Trademarks of the other Party or its Affiliates and (ii) shall not make, use, sell, offer to sell, import, export, reproduce, modify, distribute, transmit, perform, create derivative works from, or otherwise exploit any products, services or technologies in a manner that infringes, misappropriates or otherwise violates the Intellectual Property Rights or Trademarks owned or exclusively licensed to the other Party or any of its Affiliates.

 

6

 

(b)                                 If a Party gains access to any technology or data that is not expressly permitted under the terms of this Agreement, nothing in this Agreement or such access will imply that such Party or its Personnel have been granted any rights in respect of such technology or data.

 

Section 3.4                                    Further Assurances. Each Party shall take such action as the other Party may reasonably request to effect, perfect or confirm such other Party’s ownership interests and other rights as set forth in this Agreement, including by promptly executing instruments of assignment, declarations, affirmations or other documents in connection with the provisions of this Article III, that are requested by such other Party from time to time, including to assist such other Party in recording this Agreement, and to execute and file all documentation as may be required to obtain, maintain and enforce such other Party’s and its Affiliates’ rights in the Jointly Developed IP with appropriate Governmental Authorities.

 

ARTICLE IV

 

CONFIDENTIALITY

 

Section 4.1                                    Confidentiality. The Party (or its Affiliate) (“Recipient”) receiving Confidential Information of the other Party (or its Affiliate) (“Provider”) agrees to keep such Confidential Information strictly confidential and not to disclose it under any circumstances without the express written consent of Provider. Notwithstanding the preceding sentence, Recipient (or its Affiliate) may disclose Confidential Information of Provider to Recipient’s (or its Affiliates’) employees, directors, officers, attorneys, accountants, financial advisors, agents and contractors (collectively “Representatives”) who have a bona fide need to know, but only to the extent necessary to carry out the business purpose of this Agreement. Recipient will be responsible for any breach of this Agreement by its Representatives. The Confidential Information furnished by Provider to Recipient under this Agreement shall be used by Recipient solely for the purpose of exercising its rights or performing its obligations hereunder (including under any SOW) and shall be treated by Recipient with the same degree of care to preclude disclosure thereof that Recipient uses to protect its own information of like importance, but in no event with less than a reasonable degree of care. Recipient expressly agrees not to reverse engineer any prototype or software product embodying Confidential Information or decompile Confidential Information and not to develop second sources to manufacture any component or product using Provider’s Confidential Information that is protected under this Agreement. Recipient shall not make any copies of the Confidential Information received from Provider except as necessary to exercise its rights or perform its obligations, and any copies which are made shall be identified as Confidential Information the same as the original. Confidential Information not found by a court to be a trade secret is still Confidential Information for the purposes of this Agreement.

 

Section 4.2                                    Return or Destruction.  When Recipient no longer has need thereof for the purpose stated herein or upon request of Provider, whichever occurs first, Recipient shall promptly cease using and shall return or destroy (and, if requested by Provider, certify destruction of): (a) all of the Confidential Information that it receives from Provider, along with all tangible copies that it may have made, and (b) all copies stored in any computer memory or storage medium. Notwithstanding the foregoing, the Recipient shall not be obligated to return or destroy computer backups that are maintained in accordance with Recipient’s customary, automatic backup

 

7

 

procedures to the extent such computer backups are not readily accessible provided that Confidential Information therein continue to be subject to the other obligations of Recipient under this Agreement.

 

Section 4.3                                    Disclosures Required by Law. In the event Recipient is requested or required by Law to disclose any Confidential Information of Provider, to the extent permitted by Law, Recipient shall provide prompt written notice to the Provider of such request or requirement and seek to delay disclosure, so that Provider may seek to either request reconsideration of the demand for disclosure, or seek confidential treatment of such Confidential Information prior to its disclosure (whether through protective orders or otherwise) and, upon request, Recipient shall reasonably cooperate with Provider in seeking confidential treatment of such Confidential Information or other appropriate relief from such Law. If, in the absence of a protective order, other confidential treatment or waiver under this Agreement, Recipient is advised by its legal counsel that it is legally required to disclose such Confidential Information, Recipient may disclose such Confidential Information without liability under this Article IV; provided, however, that Recipient exercises commercially reasonable efforts to obtain reliable assurances that confidential treatment will be accorded any such Confidential Information prior to its disclosure and discloses only the minimum amount of such Confidential Information necessary to comply with such legal requirement.

 

ARTICLE V

 

DISPUTE RESOLUTION

 

Section 5.1                                    Dispute Resolution Procedure.  If any dispute, controversy or claim arising out of or relating to this Agreement or any SOW (and any subsequent amendments thereof), or the interpretation, enforceability, performance, breach, termination or validity thereof, and any question of the arbitral tribunal’s jurisdiction or the existence, scope or validity of this arbitration agreement (each, a “Dispute”) occurs between any of the Parties or any of their Affiliates to the extent assigned, subcontracted or delegated (in each case, in whole or in part) thereto pursuant to Section 9.4 (“Delegatee”), the provisions of this Section 5.1 shall apply.

 

(a)                                 Negotiations. At such time as a Dispute arises, any Party may deliver written notice of such Dispute (a “Dispute Notice”). Upon delivery of a Dispute Notice, senior executives designated in writing by the relevant Party or Delegatee shall negotiate in good faith for a reasonable period of time to settle such Dispute; provided, however, that such reasonable period shall not, unless otherwise agreed by the relevant Parties or Delegatees in writing, exceed fifteen (15) days from the date of receipt by a Party or Delegatee of the Dispute Notice (the “Pre-Negotiation Period”).

 

(i)                                     With respect to such Dispute, no Party or Delegatee shall be entitled to rely upon the expiry of any limitations period or contractual deadline during the period between the date of receipt of the Dispute Notice and the date of any arbitration being commenced under this Section 5.1 with respect to the Dispute.

 

8

 

(ii)                                  All offers, promises, conduct and statements, whether oral or written, made in the course of the Pre-Negotiation Period by any Party or Delegatee, their agents, employees, experts and attorneys are confidential, privileged and inadmissible for any purpose, including impeachment, in any arbitration or other proceeding involving the Parties or their Affiliates, provided that evidence that is otherwise admissible or discoverable shall not be rendered inadmissible or non-discoverable as a result of its use in the negotiation.

 

(b)                                 Mediation. If a Dispute has not been resolved in writing for any reason within the Pre-Negotiation Period, such Dispute may be submitted, at the request of any party to the Dispute, to optional, non-binding mediation administered by the administered by the International Centre for Dispute Resolution (the “ICDR”) under its International Mediation Procedures. The place of the mediation shall be Los Angeles, California, and the language of the mediation shall be English.

 

(c)                                  Arbitration. At any time after the expiration of the Pre-Negotiation Period, the Dispute may be submitted, at the request of any party to the Dispute, to final and binding arbitration administered by the ICDR in accordance with its International Arbitration Rules in effect at the time (the “Rules”), except as modified herein; provided, however, that the pendency of the Pre-Negotiation Period shall not prohibit a party to the Dispute from commencing arbitration under the Rules to the extent necessary to seek immediate injunctive relief or other remedial relief authorized by Law or from seeking temporary or preliminary injunctive relief from a court of competent jurisdiction.

 

(i)                                     The seat of arbitration shall be Los Angeles, California, and the arbitration shall be conducted in the English language.

 

(ii)                                  There shall be three arbitrators, of whom claimant and respondent each will select one within thirty (30) days of the receipt by respondent of a copy of the notice of arbitration. If either claimant or respondent fails to appoint an arbitrator within the time periods specified herein, such arbitrator shall be appointed by the ICDR. The two arbitrators so appointed shall nominate the third and presiding arbitrator (the “Chair”) within thirty (30) days of the appointment of the second arbitrator. In the event that the two party- appointed arbitrators fail to reach an agreement on a Chair within sixty (60) days of their appointment, then the ICDR shall appoint the Chair.

 

(iii)                               In addition to monetary damages, the arbitral tribunal shall be empowered to award equitable relief, including an injunction and specific performance of any obligation under this Agreement. The arbitral tribunal shall not decide as amiable compositeur or ex aequo et bono.

 

(iv)                              The arbitral tribunal, upon the request of a party to a Dispute and subject to the Rules, may join any Party or Delegatee to the arbitration proceedings and may make a single, final award determining all Disputes between or among them. Each of the Parties and Delegatees consents to be joined to any arbitration proceedings in relation to any Dispute at the request of a party to that Dispute. Where the same arbitral

 

9

 

tribunal has been appointed in relation to two or more Disputes, the arbitral tribunal may, upon the request of any party to any of the Disputes, order that the whole or part of the matters at issue shall be heard together upon such terms or conditions as the arbitral tribunal sees fit.

 

(v)                                 By agreeing to arbitration, the Parties do not intend to deprive any court of its jurisdiction to issue a pre-arbitral injunction, pre-arbitral attachment or other order in aid of arbitration proceedings. Without prejudice to such provisional remedies that may be granted by a court, the arbitral tribunal shall have full authority to grant provisional remedies, to order a party to the Dispute to request that a court modify or vacate any temporary or preliminary relief issued by such court, and to award damages for the failure of any party to the Dispute to respect the arbitral tribunal’s orders to that effect.

 

(vi)                              The arbitral tribunal shall have the power to award attorneys’ fees, costs and related expenses to such extent and to such parties to the Dispute as it sees fit.

 

(vii)                           The award of the arbitral tribunal shall be final and binding upon the parties to the Dispute, and shall be the sole and exclusive remedy between or among the parties to such Dispute regarding any claims, coun- terclaims, issues, or accounting presented to the arbitral tribunal. Judgment upon any award may be entered in any court having jurisdiction over any party to the Dispute or any of its assets.

 

(viii)                        The Parties (and any Delegatees) consent and submit to the non-exclusive jurisdiction of the courts of the State of California and the Federal Courts of the United States of America located within the City of Los Angeles (the “Los Angeles Courts”) for the enforcement of any arbitral award rendered hereunder and to compel arbitration or for interim or provisional remedies in aid of arbitration. In any such action: (A) each Party irrevocably waives, to the fullest extent it may effectively do so, any objection, including any objection to the laying of venue or based on the grounds of forum non conveniens or any right of objection to jurisdiction on account of its place of incorporation or domicile, which it may now or hereafter have to the bringing of any such action or proceeding in any Los Angeles Court; (B) each of the Parties irrevocably consents to service of process sent by a national courier service (with written confirmation of receipt) to its address identified in Section 9.5 or in any other manner permitted by applicable Law; and (C) each of the Parties waives any right to trial by jury in any court.

 

(ix)                              Any arbitration hereunder shall be confidential, and the Parties and their agents agree not to disclose to any third party (A) the existence or status of the arbitration, (B) any information made known and documents produced in the arbitration not otherwise in the public domain, and (C) any awards arising from the arbitration, except and to the extent that disclosure is required by applicable Law or is required to protect or pursue a legal right.

 

10

 

(x)                                 For the avoidance of doubt, the Parties expressly agree that all issues of arbitrability, including all issues concerning the propriety and timeliness of the commencement of the arbitration (including any defense based on a statute of limitation, if applicable), the jurisdiction of the arbitral tribunal, and the procedural conditions for arbitration, shall be finally and solely determined by the arbitral tribunal.

 

(d)                                 In the event that any part or portion of this Section 5.1 is found to be, or otherwise is, illegal, void, or unenforceable, the remainder of this Section 5.1, including the Parties’ agreement to submit their Disputes to arbitration, will continue in full force and effect and the application of such parts or portions to other Persons or circumstances will be interpreted so as reasonably to effect the intent of the Parties.

 

ARTICLE VI

 

TERM AND TERMINATION

 

Section 6.1                                    Term. This Agreement shall commence on the Effective Date and continue in full force and effect until the first to occur of: (i) the expiration or termination of all Projects hereunder and (ii) GNH reducing its equity position in Nikola below fifty (50%) of the number of shares acquired in November 2018, except in connection with a Nikola Change of Control or an initial public offering of Nikola (the “Term”), unless earlier terminated in accordance with Section 6.2. All SOWs shall terminate upon the termination of this Agreement, except as otherwise set forth in such SOWs.

 

Section 6.2                                    Termination. This Agreement may be terminated under the following circumstances:

 

(a)                                 Termination for Cause. Either Party may terminate this Agreement upon written notice if the other Party commits a material breach of its obligations under this Agreement or any SOW that remains uncured for thirty (30) days following written notice of default to the other Party.

 

(b)                                 Bankruptcy. A Party may terminate this Agreement immediately by delivering written notice to the other Party upon the occurrence of any of the following events: (i) a receiver is appointed for such other Party or its property; (ii) such other Party makes a general assignment for the benefit of its creditors; (iii) such other Party commences, or has commenced against it, proceedings under any bankruptcy, insolvency or debtor’s relief law, if such proceedings are not dismissed within sixty (60) days; or (iv) such other Party is liquidating, dissolving, or ceasing to do business in the ordinary course.

 

(c)                                  Termination by GNH. GNH may terminate this Agreement or any Project hereunder if (i) Nikola fails to render any payment due to GNH for more than sixty (60) days and absent bona fide notice of a genuine dispute; or (ii) Nikola undergoes a Nikola Change of Control, without the prior written consent of GNH, which consent may not be unreasonably withheld.

 

11

 

Section 6.3                                    Effect of Expiration or Termination.

 

(a)                                 Except as otherwise expressly set forth in an SOW, (i) upon termination of such SOW, all rights and authorizations granted to a Party with respect to the Project governed by such SOW shall immediately and automatically terminate and (ii) upon termination of this Agreement, all rights and authorizations granted to a Party under any SOW shall immediately and automatically terminate.

 

(b)                                 Neither Party shall be released from liability that has already accrued as of the effective date of expiration or termination, and such expiration or termination shall not constitute a waiver or release of, or otherwise be deemed to prejudice or adversely affect, any rights, remedies, or claims, whether for damages or otherwise, that a Party may have hereunder, at law, in equity or otherwise.

 

(c)                                  Upon expiration or termination of any SOW, each Party as Recipient shall promptly cease using and shall return or destroy (and, if requested by Provider, certify destruction of): (i) all of the Confidential Information that it receives from Provider with respect to the applicable Project, along with all tangible copies that it may have made, and (ii) all copies stored in any computer memory or storage medium.

 

(d)                                 The following provisions shall survive any expiration or termination of this Agreement: Article I (Definitions; Interpretation), Article III (Intellectual Property), Article IV (Confidentiality), Article V (Dispute Resolution), this Section 6.3 (Effect of Termination), Section 7.3 (Disclaimer), Section 7.4 (Limitation of Liability), Article VIII (Insurance) and Article IX (Miscellaneous).

 

ARTICLE VII

 

REPRESENTATIONS AND WARRANTIES

 

Section 7.1                                    Mutual Representations. Each Party represents and warrants during the Term and for so long as any of its obligations hereunder survive that:

 

(a)                                 it is duly organized, validly existing and in good standing under the Laws of the applicable state of incorporation and is duly qualified to transact business as a foreign corporation in each state, country or other jurisdiction in which its activities in the performance of this Agreement make such qualification necessary, except for jurisdictions in which the failure to be so qualified or in good standing would not reasonably be expected to materially adversely affect such Party’s ability to perform its obligations under this Agreement;

 

(b)                                 the execution, delivery and performance of this Agreement has been duly authorized by it, this Agreement has been duly executed by it, and this Agreement constitutes its legal, valid and binding obligation, enforceable in accordance with its terms;

 

(c)                                  the execution, delivery and performance of this Agreement by it does not and will not violate or conflict with its certificate or articles of incorporation or bylaws or similar organizational documents;

 

12

 

(d)                                 any Services and deliverables it conducts or provides to the other Party shall be conducted or provided in a timely, workmanlike, and professional manner in accordance with generally recognized industry standards for similar services or deliverables; and

 

(e)                                  any Services and deliverables it conducts or provides to the other Party shall be free from any liens or other encumbrances.

 

Section 7.2                                    GNH Representations. GNH warrants that it shall perform the Services:

 

(a)                                 in accordance with the terms and subject to the conditions set forth in the applicable SOW and this Agreement; and

 

(b)                                 using Personnel of commercially reasonable skill, experience, and qualifications.

 

Section 7.3                                    Disclaimer.  EACH PARTY MAKES NO WARRANTIES EXCEPT FOR THOSE PROVIDED IN Section 7.1 AND Section 7.2, ABOVE. ALL OTHER WARRANTIES, EXPRESS AND IMPLIED, ARE EXPRESSLY DISCLAIMED, INCLUDING, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, QUIET ENJOYMENT, NONINFRINGEMENT AND ANY WARRANTIES ARISING FROM A COURSE OF DEALING, USAGE, OR TRADE PRACTICE.

 

Section 7.4                                    Limitation of Liability.

 

(a)                                 EXCEPT TO THE EXTENT ARISING UNDER Article IV (CONFIDENTIALITY), Section 9.10 (COMPLIANCE WITH LAWS), Section 9.11 (EXPORT CONTROLS) AND Section 9.12 (ANTI-CORRUPTION), IN NO EVENT SHALL A PARTY BE LIABLE TO THE OTHER PARTY OR TO ANY THIRD PARTY FOR ANY LOSS OF USE, REVENUE, OR PROFIT OR LOSS OF DATA OR DIMINUTION IN VALUE, OR FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL, OR PUNITIVE DAMAGES WHETHER ARISING OUT OF BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE, REGARDLESS OF WHETHER SUCH DAMAGE WAS FORESEEABLE AND WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND NOTWITHSTANDING THE FAILURE OF ANY AGREED OR OTHER REMEDY OF ITS ESSENTIAL PURPOSE.

 

(b)                                 EXCEPT AS MAY OTHERWISE BE SET FORTH IN AN SOW (OR OTHER AGREEMENT ENTERED INTO PURSUANT TO AN SOW), IN NO EVENT SHALL A PARTY’S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO ANY SOW, WHETHER ARISING OUT OF OR RELATED TO BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE, EXCEED THE AGGREGATE AMOUNTS PAID OR PAYABLE TO GNH PURSUANT TO THE APPLICABLE SOW.

 

13

 

ARTICLE VIII

 

INSURANCE

 

Section 8.1                                    Insurance. During the Term and for a period of two (2) years thereafter, each Party shall, at its own expense, maintain and carry insurance with financially sound and reputable insurers, in full force and effect that includes commercial general liability in a sum mutually agreed by the Parties with respect to each SOW with financially sound and  reputable insurers. Upon the other Party’s request, the insured Party shall provide the other Party with a certificate of insurance from such Party’s insurer evidencing the insurance coverage specified in this Agreement. The certificate of insurance shall name the other Party as an additional insured. The insured Party shall provide the other Party with thirty (30) days’ advance written notice in the event of a cancellation or material change in the insured Party’s insurance policy. Except where prohibited by Law, insured Party shall require its insurer to waive all rights of subrogation against other Party’s insurers and other Party.

 

ARTICLE IX

 

MISCELLANEOUS

 

Section 9.1                                    Waivers. The failure or delay of either Party to enforce at any time any of the provisions of this Agreement, or to require at any time performance by the other Party of any of such provisions, shall not be construed to be a waiver of such provision, nor in any way to affect the validity of this Agreement, or any parts thereof, or the right of either Party thereafter to enforce each and every provision.

 

Section 9.2                                    Governing Law.  This Agreement, and the rights and obligations of the Parties and any dispute arising under or relating thereto (whether in contract, tort or otherwise) shall be governed by, and construed in accordance with, the laws of the State of New York, without giving effect to the conflict of law rules or any other statute or doctrine that might call for the application of the laws of any other jurisdiction. The Convention on the International Sale of Goods shall not apply to this Agreement.

 

Section 9.3                                    Severability. If any provision of this Agreement is determined to be void, unlawful, or otherwise unenforceable, that provision shall be severed from the remainder of the Agreement, and replaced automatically by a provision containing terms as nearly like the void, unlawful, or unenforceable provision as possible, or otherwise modified in such fashion as to preserve, to the maximum extent possible, the original intent of the Parties, and the Agreement, as so modified, shall continue in full force and effect.

 

Section 9.4                                    Assignment.

 

(a)                                 Nikola Assignment. Nikola may assign its rights and delegate its obligations under this Agreement to an Affiliate of Nikola or in connection with a Nikola Change of Control of Nikola.

 

14

 

(b)                                 GNH Assignment. GNH may assign its rights and delegate its obligations under this Agreement, in whole or in part, to any Affiliate of GNH.

 

(c)                                  No Other Assignment without Consent. A Party may not assign this Agreement other than as provided in this Section 9.4 without the prior written consent of the other Party. Any assignment, whether by operation of law or otherwise, in violation of this Section 9.4 shall be void and of no effect.

 

Section 9.5                                    Notices. All notices, consents, waivers, and other communications under this Agreement must be in writing and will be deemed to have been duly given when (a) delivered by hand (with written confirmation of receipt) or (b) when received by the addressee, if sent by a nationally recognized overnight delivery service, in each case to the appropriate addresses set forth below (or to such other addresses as a Party may designate by notice to the other Party):

 

If to GNH:

 

300 Frank W. Burr Blvd.

STE 52

Teaneck, NJ 07666

Attn: Jong Tae Park

Email:

 

And a copy to:

 

174 Power Global Corporation

300 Spectrum Center Drive

Suite 1250

Irvine, CA 92618

Attn: Doyeop Jason Kim

Email:

 

If to Nikola:

 

4141 E. Broadway Rd

Phoenix, AZ 85040

Attn: Britton Worthen

Email:

 

And a copy to:

 

4141 E. Broadway Rd

Phoenix, AZ 85040

Attn: Kim Brady

Email:

 

15

 

Section 9.6                                    Independent Contractor. The Parties acknowledge that, except as expressly set out in this Agreement to the contrary, each Party is entering into this Agreement as an independent contractor and nothing in this Agreement shall be interpreted or applied so as to make the relationship of any of the Parties that of partners, joint venturers or anything other than independent contractors.

 

Section 9.7                                    Further Assurances. The Parties agree, to the extent not inconsistent with the provisions of this Agreement and not involving the assumption of any obligation other than those in this Agreement, to provide such information, execute and deliver any instruments and documents and to take such other actions as may be necessary or reasonably requested by the other Party in order to give full effect to this Agreement and to carry out the intent of the Parties under this Agreement.

 

Section 9.8                                    No Recourse. The obligations of Nikola and GNH under this Agreement shall be without recourse to any of the officers, board members, directors, shareholders, employees, agents, partners or Affiliates of Nikola or GNH, or to the Affiliates of any of the foregoing.

 

Section 9.9                                    No Third Party Beneficiaries. Subject to Section 2.2, nothing expressed or referred to in this Agreement will be construed to give any Person other than the Parties any legal or equitable right, remedy, or claim under or with respect to this Agreement or any provision of this Agreement. This Agreement and all of its provisions and conditions are for the sole and exclusive benefit of the Parties and their successors and assigns and shall not be enforceable by any third party.

 

Section 9.10                             Compliance with Laws and Legal Requirements. Each Party shall comply with applicable Laws, obtain all necessary consents, approvals, permits and licenses required to provide (in the case of GNH) or purchase and use (in the case of Nikola) the Services and indemnify the other Party from and against any and all damages related to such Party’s failure to do so.

 

Section 9.11                             Export Controls. Each Party represents and warrants that it shall not sell, dispose of, license, rent, transfer, disclose or otherwise provide the Services or technical information relating thereto directly or indirectly to any country or to any citizen or resident of any country prohibited by the Laws of by the authorities claiming jurisdiction over it, in particular that of the United States.

 

Section 9.12                             Anti-Corruption. The Parties shall each comply with the U.S. Foreign Corrupt Practices Act and any similar Laws.

 

Section 9.13                             Entire Agreement. This Agreement supersedes all prior or contemporaneous agreements and understandings, whether written or oral, between the Parties with respect to its subject matter, and constitutes a complete and exclusive statement of the terms of the agreement between the Parties with respect to its subject matter. This Agreement may not be changed, modified or amended in any way, except by a written change order or contract amendment executed by authorized representatives of both Parties.

 

16

 

Section 9.14                             Counterparts. This Agreement may be executed in counterparts, including by electronic transmission, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement.

 

17

 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the Effective Date by their respective duly authorized officers.

 

	
 
    	
Nikola   Corporation
    
	
 
    	
 
    
	
 
    	
By    
    	
/s/   Trevor Milton
    
	
 
    	
Name:
    	
Trevor   Milton
    
	
 
    	
Title:
    	
CEO
    
	
 
    	
 
    
	
 
    	
Green   Nikola Holdings LLC
    
	
 
    	
 
    
	
 
    	
By   
    	
/s/   Jong Tae Park
    
	
 
    	
Name:
    	
Jong   Tae Park
    
	
 
    	
Title:   
    	
Manager   and President
    
				

 

[Signature Page to Commercial Framework Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00306-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00306-of-00352.parquet"}]]