Document:

lgacu-ex107_260.htm

Exhibit 10.7

 

THIS SECOND AMENDED AND RESTATED PROMISSORY NOTE (THIS “NOTE”) AND THE SECURITIES INTO WHICH THIS NOTE MAY BE CONVERTED HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR UNDER THE SECURITIES LAWS OF ANY STATE. THIS NOTE HAS BEEN ACQUIRED FOR INVESTMENT ONLY AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF REGISTRATION OF THE RESALE THEREOF UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY IN FORM, SCOPE AND SUBSTANCE TO THE MAKER THAT SUCH REGISTRATION IS NOT REQUIRED.

SECOND AMENDED AND RESTATED WORKING CAPITAL PROMISSORY NOTE

	
Principal Amount: up to $2,000,000

(as set forth on the Schedule of Borrowings attached hereto as Exhibit A)
	
Dated as of August 5, 2021

New York, New York

Lazard Growth Acquisition Corp. I, a Cayman Islands exempted company (the “Maker”), promises to pay to the order of LGACo 1 LLC, a Delaware series limited liability company, or its registered assigns or successors in interest (the “Payee”), or order, the principal sum of up to Two Million Dollars ($2,000,000) (as set forth on the Schedule of Borrowings attached hereto as Exhibit A) in lawful money of the United States of America, on the terms and conditions described below. All payments on this Note shall be made by check or wire transfer of immediately available funds or as otherwise determined by the Maker to such account as the Payee may from time to time designate by written notice in accordance with the provisions of this Note. This Note hereby amends and restates in its entirety the amended and restated working capital promissory note, dated March 26, 2021, issued by the Maker to the Payee.

1. Principal. The entire unpaid principal balance of this Note shall be payable by the Maker in full on the date (such date, the “Maturity Date”) on which the Maker consummates an initial merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses (an “Initial Business Combination”), unless earlier accelerated upon the occurrence of an Event of Default (as defined herein). The principal balance may be prepaid by the Maker at any time without penalty. Under no circumstances shall any individual, including but not limited to any officer, director, employee or shareholder of the Maker, be obligated personally for any obligations or liabilities of the Maker hereunder.

2. Conversion at the Option of the Payee.  At any time and from time to time, at the option of the Payee, all or a portion of any unpaid and outstanding principal balance of this Note, subject to this paragraph 2, may be convertible into one or more redeemable warrants (the “Working Capital Warrants”), with each $1.50 of unpaid and outstanding principal balance of this Note being convertible into one Working Capital Warrant (a “Conversion”). Each Working Capital Warrant, when and if issued, will entitle the Payee to purchase one Class A ordinary share of the Maker, par value $0.0001 per share (each, an “Ordinary Share”), at an exercise price of $11.50 per Ordinary Share, subject to adjustment, and will otherwise have the terms set forth in that certain Warrant Agreement, substantially in the form of Exhibit B hereto, entered into by the Maker and Continental Stock Transfer & Trust Company on February 12, 2021, the date (the “IPO Closing Date”) of the consummation of the Maker’s initial public offering of the Maker’s units (the “IPO”). The Payee acknowledges and agrees that the Working Capital Warrants, when and if issued, will be subject to the terms of a letter agreement, substantially in the form of Exhibit C hereto, entered into on the IPO Closing Date in connection with the IPO among the Maker, the Payee and certain other parties thereto. In no event shall more than 1,333,333 Working Capital Warrants be issued in the aggregate as a result of one or more Conversions.

3. Interest. No interest shall accrue on the unpaid principal balance of this Note.

4. Drawdown Requests. The Maker and the Payee agree that the Maker may request up to Two Million Dollars ($2,000,000) in the aggregate for costs and expenses reasonably related to the Maker’s working capital needs prior to the consummation of the Initial Business Combination. The principal of this Note may be drawn down from time to time prior to the Maturity Date, upon request from the Maker to the Payee (each, a “Drawdown Request”). Each Drawdown Request must state the amount to be drawn down, and must not be an amount less than One Thousand Dollars ($1,000) unless agreed to by the Payee in its sole discretion. The Payee shall fund each Drawdown Request no later than three business days after receipt of a Drawdown Request; provided, however, that the maximum amount of drawdowns outstanding under this Note at any one time may not exceed Two Million Dollars ($2,000,000). No fees, payments or other amounts shall be due to the Payee in connection with, or as a result of, any Drawdown Request by the Maker.

5. Application of Payments. All payments shall be applied first to payment in full of any costs incurred in the collection of any sum due under this Note, including without limitation reasonable attorney’s fees, then to the payment in full of any late charges and finally to the reduction of the unpaid principal balance of this Note.

6. Events of Default. The occurrence of any of the following shall constitute an event of default (“Event of Default”):

(a) Failure to Make Required Payments. Failure by the Maker to pay the principal amount due pursuant to this Note within five business days of the Maturity Date.

 

(b) Voluntary Bankruptcy, Etc. The commencement by the Maker of a voluntary case under any applicable bankruptcy, insolvency, reorganization, rehabilitation or other similar law, or the consent by it to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of the Maker or for any substantial part of its property, or the making by it of any assignment for the benefit of creditors, or the failure of the Maker generally to pay its debts as such debts become due, or the taking of corporate action by the Maker in furtherance of any of the foregoing.

(c) Involuntary Bankruptcy, Etc. The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of the Maker in an involuntary case under any applicable bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator (or similar official) of the Maker or for any substantial part of its property, or ordering the winding-up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of 60 consecutive days.

7. Remedies.

(a) Upon the occurrence of an Event of Default specified in Section 6(a) hereof, the Payee may, by written notice to the Maker, declare this Note to be due immediately and payable, whereupon the unpaid principal amount of this Note, and all other amounts payable hereunder, shall become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, anything contained herein or in the documents evidencing the same to the contrary notwithstanding.

(b) Upon the occurrence of an Event of Default specified in Sections 6(b) or 6(c) hereof, the unpaid principal balance of this Note, and all other sums payable with regard to this Note, shall automatically and immediately become due and payable, in all cases without any action on the part of the Payee.

8. Waivers. The Maker and all endorsers and guarantors of, and sureties for, this Note waive presentment for payment, demand, notice of dishonor, protest, and notice of protest with regard to the Note, all errors, defects and imperfections in any proceedings instituted by the Payee under the terms of this Note, and all benefits that might accrue to the Maker by virtue of any present or future laws exempting any property, real or personal, or any part of the proceeds arising from any sale of any such property, from attachment, levy or sale under execution, or providing for any stay of execution, exemption from civil process, or extension of time for payment; and the Maker agrees that any real estate that may be levied upon pursuant to a judgment obtained by virtue hereof or any writ of execution issued hereon may be sold upon any such writ in whole or in part in any order desired by the Payee.

9. Unconditional Liability. The Maker hereby waives all notices in connection with the delivery, acceptance, performance, default, or enforcement of the payment of this Note, and agrees that its liability shall be unconditional, without regard to the liability of any other party, and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or consented to by the Payee, and consents to any and all extensions of time, renewals, waivers, or modifications that may be granted by the Payee with respect to the payment or other provisions of this Note, and agrees that additional makers, endorsers, guarantors, or sureties may become parties hereto without notice to the Maker or affecting the Maker’s liability hereunder.

10. Notices. All notices, statements or other documents which are required or contemplated by this Note shall be in writing and delivered (i) personally or sent by first class registered or certified mail or overnight courier service to the address designated in writing, (ii) by facsimile to the number most recently provided to such party or such other address or fax number as may be designated in writing by such party or (iii) by electronic mail, to the electronic mail address most recently provided to such party or such other electronic mail address as may be designated in writing by such party. Any notice or other communication so transmitted shall be deemed to have been given on the day of delivery, if delivered personally, on the business day following receipt of written confirmation, if sent by facsimile or electronic transmission, one business day after delivery to an overnight courier service or five days after mailing if sent by mail.

11. Construction. THIS NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS THEREOF.

12. Severability. Any provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

13. Trust Waiver. Notwithstanding anything herein to the contrary, the Payee hereby waives any and all right, title, interest or claim of any kind (a “Claim”) in or to any distribution of or from the trust account (the “Trust Account”) established in which the proceeds of the IPO conducted by the Maker (including the deferred underwriting discounts and commissions) and certain of the proceeds of the sale of the warrants issued in a private placement to occur in connection with the consummation of the IPO were deposited, as described in greater detail in the registration statement and prospectus filed with the Securities and 

 

Exchange Commission in connection with the IPO, and hereby agrees not to seek recourse, reimbursement, payment or satisfaction for any Claim against the Trust Account for any reason whatsoever; provided, however, that if the Maker completes an Initial Business Combination, the Maker shall repay the principal balance of this Note, which may be out of the proceeds released to the Maker from the Trust Account.

14. Amendment; Waiver. Any amendment hereto or waiver of any provision hereof may be made with, and only with, the written consent of the Maker and the Payee.

15. Assignment. No assignment or transfer of this Note or any rights or obligations hereunder may be made by any party hereto (by operation of law or otherwise) without the prior written consent of the other party hereto and any attempted assignment without the required consent shall be void.

 

 

 

 

[Signature page follows]

 

 

 

IN WITNESS WHEREOF, the Maker, intending to be legally bound hereby, has caused this Note to be duly executed by the undersigned as of the day and year first above written.

 

 

	
 
	
LAZARD GROWTH ACQUISITION CORP. I

	
 
	
a Cayman Islands exempted company

	
 
	
 

	
 
	
 

	
 
	
 

	
 
	
 

	
 
	
 

	
 
	
By:
	
/s/ Eyal Ofir

	
 
	
 
	
Name:  Eyal Ofir

	
 
	
 
	
Title: Chief Executive Officer

 

 

	
 
	
LGACo 1 llc

	
 
	
a Delaware series limited liability company

by Lazard Group LLC as its Sole Manager

	
 
	
 

	
 
	
 

	
 
	
 

	
 
	
 

	
 
	
 

	
 
	
By:
	
/s/ Evan L. Russo

	
 
	
 
	
Name:  Evan L. Russo

	
 
	
 
	
Title: Chief Financial OfficerExhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (“Agreement”)
is amended and restated on July 19, 2021 (the “Amendment Date”), between Parts iD, LLC, a Delaware limited liability company
having its principal place of business at 1 Corporate Drive, Suite C, Cranbury, New Jersey, 08512, (the “Company”),
and Ajay Roy, with a mailing address of 31 River Court, Apartment #1805, Jersey City, New Jersey 02474  (“Employee”).
Additionally, both Employee and Company may be referred to as a “Party,” or “Parties” throughout this Agreement.

 

WHEREAS, the Employee entered
into an employment agreement with Onyx Enterprises Int’l Corp., a New Jersey registered Corporation (“Onyx”), on October
8, 2019 (the “Original Agreement”);

 

WHEREAS, on November 20, 2020 (the “Closing
Date”), PARTS iD, Inc., a Delaware corporation (f/k/a Legacy Acquisition Corp. (“Legacy” or “Parent”)) consummated
the transactions contemplated by that certain Business Combination Agreement dated September 18, 2020 (the “Business Combination
Agreement”), by and among Legacy and the other parties thereto, including Onyx;

 

WHEREAS, as a result of the closing of the transactions
contemplated by the Business Combination Agreement (the “Closing”), Onyx was merged with and into the Company, as the surviving
entity and a wholly owned subsidiary of Parent; and

 

WHEREAS, the Company, as the
successor to Onyx, and the Employee desire to amend and restate the Original Agreement to reflect certain changes in the terms and conditions
of the Employee’s employment with the Company and its affiliates. For the avoidance of doubt, the amendment and restatement does
not change the base salary or quarterly bonuses in respect of calendar year 2020 that were actually paid to the Employee by the Company
prior to the Amendment Date under the Original Agreement.

 

NOW, THEREFORE, IN CONSIDERATION
of the promises and mutual covenants contained herein, and intending to be legally bound, the parties agree as follows:

 

1.
Position and Term. On the terms and subject to the conditions set forth in this Agreement, the Company shall employ Employee,
and Employee shall serve the Company as Chief Operating Officer (“COO”) of Parent and the Company, reporting directly to the
Chief Executive Officer (“CEO”) of Parent.

 

2.
Duties. Employee’s duties shall be prescribed from time to time by the Board of Directors of Parent (the “Board”)
and shall include such responsibilities as are customary for employees performing functions similar to those of Employee. In addition,
Employee shall serve at no additional compensation in such executive capacity or capacities with respect to any subsidiary or affiliate
of Parent or the Company, respectively, to which he may be elected, assigned or appointed. Employee shall devote substantially all of
his time and attention to the performance of his duties and responsibilities for and on behalf of Parent, the Company and their subsidiaries
and affiliates (individually or collectively, as the context may require, the “Company Group”) except as set forth herein,
or as may be consented to by the Company. In addition, Employee shall be required to travel to all locations, whether national or international,
in order to further develop and learn the needs of the business. Notwithstanding anything to the contrary herein, nothing in this Agreement
shall preclude Employee from: (i) serving as a member of the board of directors or advisory board (or their equivalents in the case of
a non-corporate entity) of any charitable or philanthropic organization, separate from the Company Group; (ii) engaging in charitable,
community or philanthropic activities or any other activities or (iii) serving as an executor, trustee or in a similar fiduciary capacity;
provided, that the activities set out in the foregoing clauses shall be limited by Employee so as not to affect, individually or
in the aggregate, or interfere with the performance of Employee’s duties and responsibilities hereunder, without the consent of
the Company. During Employee’s employment with the Company, Employee shall be governed by and be subject to, and Employee hereby
agrees to comply with, all Company Group policies, procedures, rules and regulations applicable to employees generally, or to employees
at executives grade level, including without limitation, the Company’s Employee Handbook, and in each case, as they may be amended
from time to time in the Company’s sole discretion.

 

     

     

    

 

3.
Starting Date, At Will Employment. The Employee began his employment with the Company on October 21st, 2019
(“Starting Date”). The Employee’s employment hereunder is on an at-will basis. Both Parties agree that this Agreement
and the Employee’s employment hereunder may be terminated at any time by either the Employee or Company at any time for any reason
or for no reason. After termination by either of the Parties, neither will have any obligation other than what is specifically agreed
to herein.

 

4.
Representations and Warranties.

 

The Employee hereby represents
and warrants to the Company that the Employee has the full right, power and legal capacity to enter and deliver this Agreement and to
perform his duties and other obligations hereunder. This Agreement constitutes the legal, valid and binding obligation of the Employee
enforceable against him in accordance with its terms.

 

The Company represents and
warrants to the Employee as follows:

 

a.  The Corporation is duly organized, validly existing and in good standing under the laws of the State of Delaware, with all requisite
corporate power and authority to conduct its business in the manner presently contemplated.

 

b.
The Company has full power and authority to enter into this Agreement and to incur and perform its obligations hereunder.

 

c. The execution, delivery and performance by the Company of this Agreement does not conflict with or result in a breach or violation
of or constitute a default under (whether immediately, upon the giving of notice or lapse of time or both) the certificate of incorporation
or bylaws of the Corporation, or any agreement or instrument to which the Corporation is a party or by which the Corporation of any of
its properties may be bound or affected.

 

d. The
Company makes no representations or warranties regarding any pending sale, merger or acquisition of or by the Company that could
result in the change of management or control, except that the Company reserves the right at all times to enter into to such
transactions in the best interests of the Company and its shareholders.

 

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5. Compensation. The Employee shall receive, for all services rendered to the Company pursuant to this Agreement, the following:

 

a.  Salary. Employee shall be paid a compensation package at the rate of $300,000 per annum (the “Salary”). The
Salary shall be payable in accordance with the Company’s then current general salary payment policies and shall be paid on a bi-weekly
basis and subject to deductions for taxes and other withholdings as required by law and/or the polices of the Company. Furthermore, during
employment, the Employee shall be eligible for periodic increases in Salary, in the sole discretion of the Company.

 

b.
Bonus. The Employee shall be eligible to earn an annual bonus for each fiscal year of the Parent based on the achievement
of pre-established performance goals set each fiscal year of the Parent by the Board or the Compensation Committee of the Board. The amount
of the annual bonus earned by the Employee in respect of any fiscal year will be determined by the Board or the Compensation Committee,
and any such amount will be paid to the Employee no later than March 15 of the year following the year in which such bonus was earned,
subject to the Employee’s continued employment with the Company Group through such date. The Employee’s target annual bonus
for the Parent’s 2021 fiscal year will be equal to 30% of his base salary. The annual bonus will also be subject to any terms or
conditions of the annual bonus plan that may be in effect from time to time.

 

c. Benefits. Employee has chosen to opt out of the Health benefit plan(s) of the Company. However, the Employee will be provided
life insurance coverage for sum of one hundred and fifty thousand dollars ($150,000) paid by the Company. Such insurance will be provided
within 90 days from the date of joining. Further, after the date of joining, the Employee has the option to enroll under the currently
established 401(k) Plan. The currently available 401(k) plan is a Defined Contribution Plan, without an Employer match. The Employee acknowledges
and agrees that the Benefits Plans may from time to time be modified by the Company as it deems necessary and appropriate.

 

d.
Deductions. The Company shall deduct and withhold from Employee’s gross compensation all necessary or required taxes,
including, but not limited to, social security, self-employment, withholding and otherwise, and any other amounts required by law or any
taxing authority.

 

e.  Absences. Employee shall be permitted to accrue up to (4) weeks’ of Paid Time Off (“PTO”) which includes
vacation time, personal or family illness, sick leave, or any other time off, per annum, which is accrued on a monthly basis, and in accordance
with the Company’s current procedures and policies, as the same may be amended from time to time. PTO does not include company recognized
holidays, which are announced annually to all employees by the Human Resources Department and will also be available upon request of the
Employee.

 

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f. Primary Location. The Employee is expected to operate out of the primary Corporate offices in the State of New Jersey, unless
otherwise traveling for business or otherwise.

 

g.
Expenses. Subject to advanced written approval by the Company, the Company shall reimburse Employee for all reasonable out-of-pocket
expenses incurred by Employee in connection with the performance of his duties and responsibilities hereunder upon presentment of a valid
receipt or other usual and customary documents evidencing such expenses and in compliance with the Company’s expense reimbursement
policies then in effect. The Company will reimburse properly substantiated and timely submitted expenses no later than 30 days after the
date the appropriate documentation is submitted by Employee.

 

h.
Long Term Incentive In lieu of Stock Option Plan. The Company and Employee acknowledge and agree that the Employee previously
participated in a cash-based long-term incentive plan (the “LTI”). Pursuant to Section 15 of the Employee’s Restricted
Stock Unit Grant Agreement issued with a date of grant of April 16, 2021, under the Parts iD, Inc. 2020 Equity Incentive Plan (the “RSU
Agreement”), the Employee acknowledged and agreed that the LTI was terminated effective as of November 20, 2020 (the “LTI
Termination Date”) in accordance with the terms of the Original Agreement. The Parties further agreed that the Employee accrued
an amount equal to $56,575.34 (the “Accrued LTI”) under the LTI prior to the LTI Termination Date, and the Employee will not
accrue any additional amounts under the Cash LTI. As provided in the RSU Agreement, the Accrued LTI will be paid to the Employee on October
20, 2023, subject to the Employee’s continuous employment with the Company Group through such date. The Employee waives any and
all claims arising out of or related to the LTI other than the Company’s obligation to pay the Accrued LTI when it becomes due.

 

6.
Termination.

 

a.
For Cause. The Company may terminate this Agreement and Employee’s employment hereunder at any time for Cause. “Cause”
shall mean (i) the conviction of, or the entry of a plea of guilty or nolo contendre to a charge of the commission of a felony or any
other crime involving moral turpitude or the willful commission of any other act or omission involving misappropriation, embezzlement
or fraud with respect to the Company Group, (ii) conduct that brings the Company Group into material disgrace or disrepute or that causes
the Company Group material economic harm as reasonably determined by the Board, (iii) failure, other than by reason of death, disability
or similar incapacity, to perform duties and/or obligations as reasonably and lawfully directed by the Board, Executives, Senior Executive
officers or their respective designees, (iv) any act or omission constituting a material breach of a fiduciary duty, gross negligence
or willful misconduct with respect to the Company Group, or (v) any material breach of this Agreement or any other written agreement between
Employee and the Company Group with respect to the treatment of confidential information, the assignment of intellectual property rights
to the Company Group or restrictive covenants limiting the activities of Employee.

 

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b.
Without Cause. The Company may, without cause, terminate this Agreement and the Employee’s employment hereunder at
any time by giving thirty (30) days’ written notice to the Employee. In that event, the Employee, if requested by the Employer, shall
continue to render his services, and shall be paid his regular compensation up to the date of termination. The Employee may, without cause,
terminate this Agreement and the Employee’s employment hereunder by giving 30 (30) days’ written notice to the Company. In such
event, the Employee shall continue to render his services and shall be paid his regular compensation up to the date of termination.

 

c. Death. This Agreement and the Employee’s employment hereunder will terminate automatically upon the death of Employee.

 

d.
Disability. The Company may terminate this Agreement and the Employee’s employment hereunder if Employee suffers from
a physical or mental disability. Employee will only be deemed to have a physical or mental disability if he is unable to perform the essential
functions of his position, with reasonable accommodation, for a period of at least one hundred twenty (120) consecutive days because of
a physical or mental impairment.

 

e.
Compensation in the Event of Termination. In the event that this Agreement and the Employee’s employment hereunder
is terminated by the Company for any reason or no reason, or terminated by the Employee, the Company shall pay to the Employee within
thirty (30) days of such termination: (i) accrued and unpaid Salary in accordance with Section 5, (ii) accrued and unpaid amounts for
any unused vacation days which have accrued (but not including any unused personal or sick days) and (iii) any unreimbursed expenses payable
in accordance with this Agreement. In the event that this Agreement and the Employee’s employment hereunder is terminated by the
Company without Cause, subject to the Employee’s execution and non-revocation of a general release of claims, the Company will continue
to pay the Employee’s base salary for three (3) months (the “Severance Pay”) following such termination of employment.
The Severance Pay will be paid in bi-weekly installments in accordance with the Company’s customary payroll practices and will be
subject to all applicable withholdings, provided that any amount of the Severance Pay that would otherwise have been paid during the period
from the Employee’s termination of employment through the effective date of the Employee’s release and waiver of claims will
be paid instead in a lump-sum in the first regular bi-weekly payroll installment that follows such effective date. If the Company terminates
the employment of Employee for Cause, as defined above, or if the Employee voluntarily resigns from employment, the Employee shall not
be entitled to receive Severance Pay, but Employee shall still be entitled to payment in accordance with (i), (ii) and (iii) herein. For
the avoidance of doubt, the Severance Pay is intended to satisfy the “separation pay plan” exception under Section 409A of
the Code, and no portion of the Severance Pay will be payable later than the last day of the second taxable year of the Employee following
the taxable year of the Employee in which the separation from service occurs.

 

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f. Return of Property. Immediately after termination of the Employee’s employment with Company, regardless of the reason
for termination, the Employee must (at the Company’s sole option and direction) return to the Company or destroy any and all of
the Company Group’s property and Confidential Information regardless of the form or format in which it is kept, stored or maintained,
whether electronic, digital or hard-copy. Notwithstanding any other provision herein, Employee’s return and/or destruction of material
pursuant to this paragraph shall take place no later than five (5) calendar days following Employee’s separation from employment.
Employee understands and acknowledges that failure to return and/or destroy Employer’s property and Confidential Information as
required herein may be considered a breach of contract and/or a criminal act, and the Employee specifically consents to injunctive relief
in favor of the Company to enforce the provisions of this Section.

 

7.
Restrictive Covenants. Employee acknowledges and agrees that he has, and will have, access to secret and confidential information
of the Company Group (“Confidential Information”) and that the following restrictive covenants are necessary to protect
the interests and continued success of the Company Group.

 

a. Confidential Information means all material, non-public, business-related information, written or oral, whether or not it
is marked that it is confidential, proprietary or disclosed or made available to the Employee, directly or indirectly, through any form
or means of communication or observation as provided by the Company Group. The parties agree that the term “Confidential Information”
shall be given its broadest possible interpretation to cover all facets of business information. Confidential Information shall also include
any such information included in discussions which are taking place between the Parties, whether preliminary or subsequent to the execution
of this Agreement.

 

b.
Confidentiality. Employee agrees that at all times both during employment and after termination hereof, the Employee
shall not disclose to any other person, firm or entity, or in any way use for his own benefit, except as required in the conduct of the
Company Group’s business or as authorized in writing on behalf of the Company Group, any trade secrets or Confidential Information
obtained during the course of the Employee’s employment with Company. Employee understands that the post-employment prohibition
on disclosure of Confidential Information is necessary to effectuate the Company Group’s legitimate interests in safeguarding its
business, relationships and property.

 

c. Non-Compete. In consideration of the employment hereunder, Employee agrees that during his employment and for a period of
two (2) years thereafter, he will not (and will cause any entity controlled by him not to), directly or indirectly, whether or not for
compensation and whether or not as an employee, be engaged in or have any financial interest in any business competing with the business
of the Company Group within any state, country, region or locality in which the Company Group is then doing business or marketing its
products or solicit, advise, provide or sell any services or products of the same or similar nature to services or products of the Company
Group to any person or entity. The Employee understands that as the prohibitions contained in this Section relate to the e-commerce industry,
which is internet based and geographically boundless, this prohibition shall not be geographically restricted. For purposes of this Agreement,
Employee will be deemed to be engaged in or to have a financial interest in such competitive business if he is an officer, director, shareholder,
joint venturer, agent, salesperson, consultant, investor, advisor, principal or partner, of any person, partnership, corporation, trust
or other entity which is engaged in such a competitive business, or if he directly or indirectly performs services for such an entity
or if a member of Employee’s immediate family beneficially owns an equity interest, or interest convertible into equity, in any
such entity; provided, however, that the foregoing will not prohibit Employee or a member of his immediate family from owning, for the
purpose of passive investment, less than 5% of any class of securities of a publicly held corporation.

 

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d.
Non-Solicitation/Non-Interference. Employee agrees that during his employment and for an additional two (2) years after
the termination thereof, he shall not (and shall cause any entity controlled by him not to), directly or indirectly, acting as an employee,
owner, shareholder, partner, joint venturer, officer, director, agent, salesperson, consultant, advisor, investor or principal of any
corporation, trust or other entity: (i) solicit, request or otherwise attempt to induce or influence, directly or indirectly, any present
client, distributor, licensor or supplier, or prospective client, distributor, licensor or supplier, of the Company Group, or other persons
sharing a business relationship with the Company Group, to cancel, limit or postpone their business with the Company Group, or otherwise
take action which might cause a financial disadvantage of the Company Group; or (ii) hire or solicit for employment, directly or indirectly,
or induce or actively attempt to influence, any employee, officer, director, agent, contractor or other business associate of the Company
Group to terminate his or her employment or discontinue such person’s consultant, contractor or other business association with
the Company Group. For purposes of this Agreement the term prospective client shall mean any person, group of associated persons or entity
whose business the Company Group has solicited at any time prior to the termination of his employment.

 

e.  Non-Disparagement. The Parties agree that they will not in any way disparage each other, including current or former officers,
directors and employees, nor will they make or solicit any comments, statements or the like to the media or to others that may be considered
to be disparaging, derogatory or detrimental to the good name or business reputation of the other.

 

f.  Enforcement
Provisions. In order to ensure compliance with this Section of the Agreement, upon the written request of the Company, the Employee
agrees to provide the Company with full cooperation and such information as the Company may reasonably require relating to its investigation
of any potential breaches of the Agreement. This provision shall be enforceable in accordance with Section 15(a) of this Agreement.

 

g.
Certain Exceptions. Notwithstanding anything set forth herein, nothing in this Agreement shall (i) prohibit the Employee
from making reports of possible violations of federal law or regulation to any governmental agency or entity in accordance with the provisions
of and rules promulgated under Section 21F of the Securities Exchange Act of 1934, as amended, or Section 806 of the Sarbanes-Oxley Act
of 2002, or of any other whistleblower protection provisions of federal law or regulation, or (ii) require notification or prior approval
by the Company of any such report; provided that, the Employee is not authorized to disclose communications with counsel that were made
for the purpose of receiving legal advice or that contain legal advice or that are protected by the attorney work product or similar privilege.
Furthermore, the Employee shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure
of a trade secret that is made (i) in confidence to a federal, state or local government official, either directly or indirectly, or to
an attorney, in each case, solely for the purpose of reporting or investigating a suspected violation of law or (ii) in a complaint or
other document filed in a lawsuit or proceeding, if such filings are made under seal. Nothing herein regarding confidentiality shall prohibit
the Employee from contacting the EEOC, SEC, or other governmental agencies to report any violations of law or the Employee’s belief
as to such violations and no action shall be taken to retaliate against the Employee because of such reports or filings

 

    7

     

    

 

8.
Ownership of Intellectual Property.  Employee acknowledges that the Company Group shall be the sole owner of all the
results and products of the services Employee provides to the Company Group, and any and all inventions made, developed or created by
Employee (whether at the request or suggestion of the Company Group or otherwise, whether alone or in conjunction with others, and whether
during regular hours of work or otherwise) during the period of Employee’s employment by the Company, relating to or which may be
directly or indirectly useful to the Company Group’s business (collectively, the “Developments”). All right, title and
interest in the Developments shall be and remain the sole and exclusive property of the Company Group. Employee shall promptly disclose
any and all Developments to the Company and shall deliver to the Company all papers, data and other materials relating to any Developments
made, developed or created by Employee. Employee acknowledges that all copyrightable Developments shall be considered works “made
for hire” or commissioned works under the Federal Copyright Act. Employee hereby assigns all Developments to the Company and agrees
that Employee shall execute such documents and cooperate with the Company’s reasonable requests in connection with any copyright
or patent applications, and do all other acts as the Company reasonably deems necessary to establish, protect, enforce or defend the Employer’s
right, title and interest in such Developments. Finally, Employee acknowledges that the Company has the right to decide all issues relating
to the format, style or printing of Developments, the presentation, trademark, logo imprint or other identifying mark, the retail price
and all other matters relating to sale, distribution, advertising or promotion of Developments.

 

9.
Attorneys’ Fees. If any action at law or in equity (including arbitration) is necessary to enforce or interpret the
terms of any provision of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary
disbursements in addition to any other relief to which such party may be entitled pursuant to the underlying action.

 

10.
No Conflicts. Employee represents and warrants to the Company that the execution, delivery and performance by him of this
Agreement does not conflict with, or result in, a violation or breach of, or constitute (with or without the giving of notice or the lapse
of time or both) a default under any contract, agreement or understanding, whether oral or written, to which he is a party or by which
he is bound and that there are no restrictions, covenants, agreements or limitations on his right or ability to enter into and perform
the terms of this Agreement, and Employee agrees to indemnify and hold the Company harmless from any liability, cost or expense, including
attorney’s fees, based upon or arising out of any breach of this Section 10.

 

    8

     

    

 

11.
Waiver. The waiver by either party of any breach by the other party of any provision of this Agreement shall not operate
or be construed as a waiver of any subsequent breach by such party. No person acting other than pursuant to a resolution of the Company
shall have authority on behalf of the Company to agree to amend, modify, repeal, waive or extend any provision of this Agreement.

 

12.
Assignment. Neither this Agreement nor any of the Employee’s rights, powers, duties, or obligations hereunder may
be assigned by Employee. This Agreement shall be binding upon and inure to the benefit of the Employee and his or her heirs and legal
representatives and the Company and its successors. Successors of the Company shall include, without limitation, any company or companies
acquiring, directly or indirectly, all or substantially all of the assets of the Company, whether by merger, consolidation, purchase,
lease, or otherwise, and such successor shall thereafter be deemed “the Company” for the purpose hereof.

 

13.
 AGREEMENT TO ARBITRATE ALL CLAIMS. Any controversy or claim arising out of or relating to this Employment Agreement and
the Employee’s employment with the Company, shall be adjudicated and settled by binding arbitration, administered by the American
Arbitration Association under its Employment Arbitration Rules and Mediation Procedures at a location in the State of New Jersey. This
agreement to arbitrate includes all claims whether arising in tort or contract and whether arising under statute or common law including,
but not limited to, any claim of breach of contract, discrimination or harassment of any kind. In agreeing to submit all claims to
Arbitration, the Employee hereby acknowledges and agrees that he is VOLUNTARILY WAIVING AND RELINQUISHING HIS RIGHT TO A JURY TRIAL.
The judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. The Parties agree to
be bound by the decision of the arbitrator(s). The costs and expenses of the arbitrators shall be shared equally by the parties, which
each party responsible for its own costs and expenses in presenting the dispute for arbitration.

 

14.
Notices. All notices that are to be sent under this Agreement shall be done in writing and to be delivered via Certified
Mail (return receipt) to the following mailing addresses:

 

	If Notice To Company	 	If Notice to Employee
	
     

    PARTS iD, LLC.

    1 Corporate Drive, Suite C

    Cranbury, New Jersey 08512

    
	 	
     

    Mr. Ajay Roy

    31 River Court, Apartment #1805

    Jersey City, New Jersey 02474

 

The aforementioned addresses may be changed with
the act of either party providing written notice. Additionally, the parties may satisfy this requirement by email, by sending Notice to
legal@partsid.com and finance@partsid.com.

 

    9

     

    

 

15.
Construction of Agreement.

 

a.  Governing Law. This Agreement shall be governed under the laws in the State of New Jersey. EACH PARTY HERETO SPECIFICALLY
WAIVES ANY RIGHT IT MIGHT OTHERWISE HAVE TO A JURY TRIAL WITH RESPECT TO ANY MATTER ARISING UNDER THIS AGREEMENT.

 

b.
Severability. In the event that any one or more of the provisions of this Agreement shall be held to be invalid, illegal
or unenforceable, the validity, legality or enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

c.  Headings. The descriptive headings of the several paragraphs of this Agreement are inserted for the convenience of the reader,
for reference only, and shall not constitute a part of this Agreement.

 

d.
Section 409A. (i) If any provision of this Agreement (or of any award of compensation, including equity compensation or
benefits) would cause the Employee to incur any additional tax or interest under Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”) or any regulations or Treasury guidance promulgated thereunder, the Company shall reform such provision
to comply with Section 409A of the Code; provided, that the Company agrees to maintain, to the maximum extent practicable, the
original intent and economic benefit to the Employee of the applicable provision without violating the provisions of Section 409A of the
Code. (ii) Notwithstanding any provision to the contrary in this Agreement, if the date of any payment or the commencement of any installment
payments payable under this Agreement must be delayed for six months in order to meet the requirements of Section 409A(a)(2)(B) of the
Code applicable to “specified employees”, then any such payment or payments shall not be made or provided (subject to the
last sentence hereof) prior to the earlier of (A) the expiration of the six month period measured from the date of the Employee’s
“separation from service” (as such term is defined in Treasury Regulations issued under Code Section 409A) or (B) the date
of the Employee’s death (the “Delay Period”). Upon the expiration of the Delay Period, all payments and benefits delayed
pursuant to this Section 15(d) (whether they would have otherwise been payable in a single sum or in installments in the absence of such
delay) shall be paid or reimbursed to the Employee in a lump sum, and any remaining payments due under this Agreement shall be paid or
provided in accordance with the normal payment dates specified for them herein. (iii) A termination of employment shall not be deemed
to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits subject to Code
Section 409A upon or following a termination of employment unless such termination is also a “separation from service” within
the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,”
“termination of employment” or like terms shall mean “separation from service.” (iv) (a) All expenses or
other reimbursements as provided herein shall be payable in accordance with the Company’s policies in effect from time to time,
but in any event shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were
incurred by the Employee; (b) no such reimbursement or expenses eligible for reimbursement in any taxable year shall in any way affect
the expenses eligible for reimbursement in any other taxable year; and (c) the right to reimbursement or in-kind benefits shall not be
subject to liquidation or exchanged for another benefit. (v) For purposes of Code Section 409A, the Employee’s right to receive
any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments.
Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made
within thirty (30) days following the date of termination”), the actual date of payment within the specified period shall be within
the sole discretion of the Company.

 

e.  Voluntary Agreement. Employee hereby acknowledges that Employee (a) has read and understands the foregoing Agreement (b)
has been afforded the opportunity to consult with an attorney of Employee’s own choosing concerning the terms of this Agreement;
and (c) has affixed Employee’s signature hereto voluntarily and without coercion.

 

f.  Entire
Agreement. Other than as set forth herein, this Agreement contains the entire agreement of the parties concerning Employee’s
employment and all promises, representations, understandings, arrangements and prior agreements on such subject (including without limitation
the Original Agreement) are merged herein and superseded hereby.

 

    10

     

    

 

IN WITNESS WHEREOF, the Company has caused this Employment Agreement to be executed by its duly authorized officer and Employee has set
his hand, all as of the day and year first above written.

 

	AJAY ROY	 	PARTS iD, LLC
	/s/ Ajay Roy	 	/s/ Antonino
Ciappina
	(Signature)	 	(Signature)
	 	 	 
	Ajay Roy	 	
    Antonino Ciappina

    

	(Printed Name)	 	(Printed Name)
	 	 	 
	Chief Operating
Officer	 	CEO and Assistant
Corporate Secretary
	(Title)	 	(Title) 
	 	 	 
	
    

    (Date)
	 	
    

    (Date)

 

    11

     

    

 

 

 

EXHIBIT A

 

Prior Inventions: none

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