Document:

Exhibit 10.3

 

August 9, 2022

 

Shift Technologies, Inc.

290 Division Street, Suite 400

San Francisco, CA 94103

 

CarLotz, Inc.

3301 West Moore Street

Richmond, VA 23230

 

CarLotz Group, Inc.

3301 West Moore Street

Richmond, VA 23230

 

Re: Amended and Restated Sponsor Letter Agreement

 

Ladies and Gentlemen:

 

This letter (this “Sponsor Letter
Agreement”) is being delivered to you in accordance with that certain Agreement and Plan of Merger dated as of the date
hereof (the “Merger Agreement”), by and among Shift Technologies, Inc., a Delaware corporation (“Parent”),
Shift Remarketing Operations, Inc., a Delaware corporation and wholly owned subsidiary of Parent (“Merger Sub”),
and CarLotz, Inc., a Delaware corporation (the “Company”), and hereby amends and restates in its entirety
that certain letter dated October 21, 2020 (the “Prior Letter Agreement”), from Acamar Partners Sponsor
I LLC, a Delaware limited liability company (the “Sponsor”) to the Company and CarLotz Group, Inc., a Delaware
corporation (“CarLotz OpCo”). Certain capitalized terms used herein are defined in paragraph 9 hereof. Capitalized
terms used but not otherwise defined herein shall have the respective meanings ascribed to such terms in the Merger Agreement. Pursuant
to the Merger Agreement (and subject to the terms and conditions set forth therein), Merger Sub will merge with and into the Company,
with the Company surviving the merger (the “Merger”).

 

The Sponsor is currently, and as of immediately
prior to the Closing will be, the record and beneficial owner of 3,819,665 shares of Company Common Stock that are subject to restrictions
on Transfer set forth in the Prior Letter Agreement (the “Restricted Founder Shares”), which Restricted Founder
Shares shall be exchanged for shares of Parent Common Stock issued as Merger Consideration in connection with the Closing of the Merger
(any shares of Parent Common Stock issued in respect of the Restricted Founder Shares, and any shares issued in respect thereof including
by means of or as a result of a stock dividend, stock split, recapitalization, combination, reclassification, exchange or change of such
shares, or upon exercise or conversion of any such securities, the “Restricted Parent Shares”).

 

In accordance with paragraph 2 and paragraph 20
of the Prior Letter Agreement, the Parties hereto intend to amend and restate the Prior Letter Agreement to give effect to the Merger,
and, intending to be legally bound, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Sponsor hereby agrees with the Company, Parent, Merger Sub and CarLotz OpCo as follows:

 

1. The Sponsor hereby agrees and acknowledges that (i) the
Company, Parent and Merger Sub would be irreparably injured in the event of a breach by the Sponsor of its obligations under paragraphs
2 and 4 of this Sponsor Letter Agreement, (ii) monetary damages may not be an adequate remedy for such breach and (iii) the
non-breaching party shall be entitled to injunctive relief, in addition to any other remedy that such party may have in law or in equity,
in the event of such breach.

 

2. The Sponsor agrees that it shall not Transfer any Restricted
Parent Shares until (collectively, the “Lock-up Period”):

 

		a.	with respect to 50% of such Restricted Parent Shares, the date on which the closing trading price of the Parent Common Stock has been
greater than a per-share amount equal to $12.50, divided by the Exchange Ratio (in each case, as equitably adjusted for stock splits,
stock dividends, special cash dividends, reorganizations, combinations, recapitalizations and similar transactions affecting the Parent
Common Stock) over any twenty (20) Trading Days within any thirty (30) Trading Day period from the Closing of the Merger; and

 

    

     

    

 

		b.	with respect to 50% of such Restricted Parent Shares, the date on which the closing trading price of the Parent Common Stock has been
greater than a per-share amount equal to $15.00, divided by the Exchange Ratio (in each case, as equitably adjusted for stock splits,
stock dividends, special cash dividends, reorganizations, combinations, recapitalizations and similar transactions affecting the Parent
Common Stock) over any twenty (20) Trading Days within any thirty (30) Trading Day period from the Closing of the Merger(the date on which
such condition is satisfied the “Final Release Date”).

 

3. The certificates evidencing the Restricted Parent Shares
shall be stamped or otherwise imprinted with a legend in substantially the following form:

 

THE SECURITIES EVIDENCED HEREIN ARE SUBJECT TO RESTRICTIONS ON TRANSFER
AND CERTAIN OTHER AGREEMENTS, SET FORTH IN THE AMENDED AND RESTATED SPONSOR LETTER AGREEMENT DATED AS OF AUGUST 9, 2022, BY AND AMONG
THE HOLDER HEREOF AND THE OTHER PARTIES THERETO.

 

4. Notwithstanding the provisions set forth in paragraph
2, Transfers of the Restricted Parent Shares that are held by the Sponsor or any of its permitted transferees (that have complied with
this paragraph 4) are permitted (a) to Parent’s officers or directors, any affiliates and its employees or family member of
any of Parent’s officers or directors, (b) to any members of the Sponsor or any affiliates of the Sponsor; (c) in the
case of an individual, by gift to a member of the individual’s immediate family, to a trust, the beneficiary of which is a member
of the individual’s immediate family or an affiliate of such person, or to a charitable organization; (d) in the case of an
individual, by virtue of laws of descent and distribution upon death of the individual; (e) in the case of an individual, pursuant
to a qualified domestic relations order; (f) by private sales transfer made in connection with the consummation of the Merger; provided,
however, that in the case of clauses (a) through (f) these permitted transferees must enter into a written agreement
with Parent agreeing to be bound by the transfer restrictions in and other provisions contained in this Agreement.

 

6. Forfeiture of Restricted Parent Shares. In
the event of the failure to achieve the trading price threshold set forth in Section 2(a) on or prior to January 21, 2026
(the first Business Day following the end of such period, the “Forfeiture Date”), or the failure to achieve
the trading price threshold set forth in Section 2(b) on or prior to the Forfeiture Date, the portion of the Restricted Parent
Shares, the release of the lockup of which is subject to the achievement of the applicable threshold, shall be forfeited and transferred
to Parent by the holder that Beneficially Owns such Restricted Parent Shares without any consideration for such Transfer. For the avoidance
of doubt, prior to the Forfeiture Date, all of the holders of Restricted Parent Shares shall have the right to vote such shares and to
receive dividends with respect to such shares.

 

7. The Sponsor represents and warrants that it has never
been suspended or expelled from membership in any securities or commodities exchange or association or had a securities or commodities
license or registration denied, suspended or revoked. The Sponsor represents and warrants that it is not subject to, or a respondent in,
any legal action for any injunction, cease-and-desist order or order or stipulation to desist or refrain from any act or practice relating
to the offering of securities in any jurisdiction; it, he or she has never been convicted of, or pleaded guilty to, any crime (i) involving
fraud, (ii) relating to any financial transaction or handling of funds of another person or (iii) pertaining to any dealings
in any securities and it is not currently a defendant in any such criminal proceeding.

 

8. The Sponsor has full right and power, without violating
any agreement to which it is bound (including, without limitation, any non-competition or non-solicitation agreement with any employer
or former employer), to enter into this Sponsor Letter Agreement.

 

    

     

    

 

9. As used herein:

 

(i) “Beneficially Own” has
the meaning ascribed to it in Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”);

 

(ii) “Transfer” shall mean
the (a) direct or indirect transfer, sale of, offer to sell, contract or any agreement to sell, hypothecate, pledge, encumber grant
of any option to purchase or otherwise dispose of, either voluntarily or involuntarily, or any agreement to dispose of, directly or indirectly,
or establishment or increase of a put equivalent position or liquidation with respect to or decrease of a call equivalent position within
the meaning of Section 16 of the Exchange Act and the rules and regulations of the Commission promulgated thereunder with respect
to, any security, (b) entry into any swap or other arrangement that transfers to another, in whole or in part, any of the economic
consequences of ownership of any security, whether any such transaction is to be settled by delivery of such securities, in cash or otherwise,
or (c) public announcement of any intention to effect any transaction specified in clause (a) or (b).

 

10. This Sponsor Letter Agreement and the other agreements
referenced herein constitute the entire agreement and understanding of the parties hereto in respect of the subject matter hereof and
supersede all prior understandings, agreements, or representations by or among the parties hereto, written or oral, to the extent they
relate in any way to the subject matter hereof or the transactions contemplated hereby, including, without limitation, with respect to
the Sponsor, the Company and CarLotz Opco, the Prior Letter Agreement. This Sponsor Letter Agreement may not be changed, amended, modified
or waived (other than to correct a typographical error) as to any particular provision, except by a written instrument executed by the
Company and Parent, or after the Closing, by Parent, and the other parties charged with such change, amendment, modification or waiver.
In the event of any valid termination of the Merger Agreement, this Sponsor Letter Agreement shall be null and void and of no further
force or effect in accordance with Section 16.

 

11. No party hereto may, except as set forth herein, assign
either this Sponsor Letter Agreement or any of its rights, interests, or obligations hereunder without the prior written consent of the
other parties. Any purported assignment in violation of this paragraph shall be void and ineffectual and shall not operate to transfer
or assign any interest or title to the purported assignee. This Sponsor Letter Agreement shall be binding on, and inure to the benefit
of, the Sponsor, Parent, the Company and CarLotz OpCo and their respective successors, heirs, personal representatives and assigns and
permitted transferees.

 

12. This Sponsor Letter Agreement may be executed in any
number of original, electronic or facsimile counterparts and each of such counterparts shall for all purposes be deemed to be an original,
and all such counterparts shall together constitute but one and the same instrument.

 

13. This Sponsor Letter Agreement shall be deemed severable,
and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Sponsor
Letter Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision,
the parties hereto intend that there shall be added as a part of this Sponsor Letter Agreement a provision as similar in terms to such
invalid or unenforceable provision as may be possible and be valid and enforceable.

 

14. This Sponsor Letter Agreement, and all claims or causes
of action based upon, arising out of, or related to this Sponsor Letter Agreement or the transactions contemplated hereby, shall be governed
by, and construed in accordance with, the Applicable Laws of the State of Delaware, without giving effect to principles or rules of
conflict of laws to the extent such principles or rules would require or permit the application of Applicable Laws of another jurisdiction.
Any Legal Proceeding based upon, arising out of or related to this Sponsor Letter Agreement or the transactions contemplated hereby shall
be heard and determined exclusively in the Delaware Court of Chancery; provided, however, that if jurisdiction is not then
available in the Delaware Court of Chancery, then any such Legal Proceeding may be brought in any federal court located in the State of
Delaware or any other Delaware state court, and each of the parties irrevocably submits to the exclusive jurisdiction of each such court
in any such Legal Proceeding, waives any objection it may now or hereafter have to personal jurisdiction, venue or convenience of forum,
agrees that all claims in respect of the Legal Proceeding shall be heard and determined only in any such court, and agrees not to bring
any Legal Proceeding arising out of or relating to this Sponsor Letter Agreement or the transactions contemplated hereby in any other
court. Nothing herein contained shall be deemed to affect the right of any party to serve process in any manner permitted by Applicable
Law or to commence legal proceedings or otherwise proceed against any other party in any other jurisdiction, in each case, to enforce
judgments obtained in any Legal Proceeding brought pursuant to this paragraph. The prevailing party in any such Legal Proceeding (as determined
by a court of competent jurisdiction) shall be entitled to be reimbursed by the non-prevailing party for its reasonable expenses, including
reasonable attorneys’ fees, incurred with respect to such Legal Proceeding. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING BASED UPON, ARISING OUT OF OR RELATED TO THIS SPONSOR LETTER AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

 

    

     

    

 

15. Any notice, consent or request to be given in connection
with any of the terms or provisions of this Sponsor Letter Agreement shall be in writing and shall be sent or given in accordance with
the terms of Section 9.8 of the Merger Agreement to the applicable party at its principal place of business.

 

16. This Sponsor Letter Agreement shall terminate on the
earlier of (a) the Final Release Date occurring on or before the Forfeiture Date and (b) the Forfeiture Date. In the event of
a valid termination of the Merger Agreement, this Sponsor Letter Agreement shall be of no force and effect and shall revert to the Prior
Letter Agreement. No such termination or reversion shall relieve the Sponsor, Parent or the Company from any obligation accruing, or liability
resulting from a breach of this Sponsor Letter Agreement occurring prior to such termination or reversion.

 

17. The Sponsor hereby represents and warrants to Parent
and the Company as follows: (i) it is duly organized, validly existing and in good standing under the laws of the jurisdiction in
which it is organized, and the execution, delivery and performance of this Sponsor Letter Agreement and the consummation of the transactions
contemplated hereby are within the Sponsor’s limited liability company powers and have been duly authorized by all necessary limited
liability company actions on the part of the Sponsor; (ii) this Sponsor Letter Agreement has been duly executed and delivered by
the Sponsor and, assuming due authorization, execution and delivery by the other parties to this Sponsor Letter Agreement, this Sponsor
Letter Agreement constitutes a legally valid and binding obligation of the Sponsor, enforceable against the Sponsor in accordance with
the terms hereof (subject to Enforceability Exceptions); (iii) the execution and delivery of this Sponsor Letter Agreement by the
Sponsor does not, and the performance by the Sponsor of its obligations hereunder will not, (A) conflict with or result in a violation
of the organizational documents of the Sponsor, or (B) require any consent or approval that has not been given or other action that
has not been taken by any third party (including under any Contract binding upon the Sponsor or the Sponsor’s Restricted Founder
Shares or Restricted Parent Shares), in each case, to the extent such consent, approval or other action would prevent, enjoin or materially
delay the performance by the Sponsor of its obligations under this Sponsor Letter Agreement; (iv) there are no Legal Proceedings
pending against the Sponsor or, to the knowledge of the Sponsor, threatened against the Sponsor, before (or, in the case of threatened
Legal Proceedings, that would be before) any arbitrator or any Governmental Authority, which in any manner challenges or seeks to prevent,
enjoin or materially delay the performance by the Sponsor of its obligations under this Sponsor Letter Agreement; (v) no financial
advisor, investment banker, broker, finder or other similar intermediary is entitled to any fee or commission from the Sponsor, any of
its Subsidiaries or any of its respective Affiliates in connection with the Merger Agreement or this Sponsor Letter Agreement or any of
the respective transactions contemplated thereby and hereby, in each case, based upon any arrangement or agreement made by or, to the
knowledge of the Sponsor, on behalf of the Sponsor, for which Parent, the Company or any of their respective Affiliates would have any
obligations or liabilities of any kind or nature; (vi) the Sponsor has had the opportunity to read the Merger Agreement and this
Sponsor Letter Agreement and has had the opportunity to consult with its tax and legal advisors; (vii) the Sponsor has not entered
into, and shall not enter into, any agreement that would restrict, limit or interfere with the performance of the Sponsor’s obligations
hereunder; and (viii) the Sponsor has good title to all such Restricted Founder Shares.

 

    

     

    

 

18. If, and as often as, there are any changes in Parent
or the Restricted Parent Shares by way of stock split, stock dividend, combination or reclassification, or through merger, consolidation,
reorganization, recapitalization or business combination, or by any other means, equitable adjustment shall be made to the provisions
of this Sponsor Letter Agreement as may be required so that the rights, privileges, duties and obligations hereunder shall continue with
respect to Parent or Parent’s successor or the surviving entity of such transaction and the Restricted Parent Shares, each as so
changed. For avoidance of doubt, such equitable adjustment shall be made to the performance criteria set forth in paragraph 2.

 

19. Each of the parties hereto agrees to execute and deliver
hereafter any further document, agreement or instrument of assignment, transfer or conveyance as may be necessary or desirable to effectuate
the purposes hereof and as may be reasonably requested in writing by another party hereto.

 

[signature page follows]

 

    

     

    

 

	 	Sincerely,
	 	ACAMAR PARTNERS SPONSOR I LLC
	 	 
	 	 
	 	By:	/s/ Luis Solorzano
	 	 	Name: Luis Solorzano
	 	 	Title: Managing Member

 

    

     

    

 

	 	Acknowledged and Agreed:
	 	SHIFT TECHNOLOGIES, INC.
	 	 
	 	 
	 	By:	/s/ George Arison
	 	 	Name: George Arison
	 	 	Title: Chief Executive Officer
	 	 
	 	 
	 	Acknowledged and Agreed:
	 	CARLOTZ, INC.
	 	 
	 	 
	 	By:	/s/ Lev Peker
	 	 	Name: Lev Peker
	 	 	Title: Chief Executive Officer
	 	 
	 	 
	 	Acknowledged and Agreed:
	 	CARLOTZ GROUP, INC.
	 	 
	 	 
	 	By:	/s/ Lev Peker
	 	 	Name: Lev Peker
	 	 	Title: Chief Executive OfficerEX-10.1

 Exhibit 10.1 
  

 
 Vontier Employment Services LLC 

c/o 5438 Wade Park Blvd., Suite 600 

Raleigh, NC 27607 
 August 3, 2022 

Anshooman Aga 
 Dear Anshooman: 

I am delighted to offer you employment with Vontier Employment Services LLC (the “Company”). This is a very exciting time, and we are confident that
your background and experience will allow you to make major contributions to Vontier. As we discussed, your position will be Senior Vice President and Chief Financial Officer reporting to Mark Morelli, Chief Executive Officer, and will be based in
Raleigh, NC. 
 Please allow this letter to serve as documentation of the offer extended to you. 

Start Date: Your start date with the Company will be August 29, 2022. 

Base Salary: Your base salary will be paid at the annual rate of $625,000 subject to periodic review, and payable in accordance with the Company’s
usual payroll practices. 
 Signing Bonus: The Company will provide you a signing bonus equal to $600,000, less all taxes and
withholding, payable within thirty days following your Start Date. Payment of this bonus is conditioned on your execution of the enclosed Signing Bonus Repayment Agreement. 

Incentive Compensation: You are eligible to participate in the Vontier Incentive Compensation Plan (“ICP”) with a target bonus of 100% of
your annual base salary, subject to periodic review and governed by the terms of Vontier ICP. Your first eligibility for participation in the ICP will be in 2022. Any actual 2022 award will be prorated based on your hire date. Normally, ICP payments
are made during the first quarter of the following calendar year. You will be eligible for your first ICP payment during the first quarter of 2023. This bonus is based on a Company Financial Factor and a Personal Performance Factor which are
determined each year, and subject to review. 
 Annual Equity Award: Upon acceptance of this offer, and your commencement of employment, a
recommendation will be made to the Compensation and Management Development Committee of the Board of Directors to grant you an equity award as part of our annual equity compensation program at its meeting where annual equity is considered. Our
typical annual grant cycle is in February each year. The target award value of this annual grant for 2023 plan year is $1,500,000. 
 Any annual equity
awards will be solely governed by the terms and conditions set forth in the Vontier Corporation 2020 Stock Incentive Plan and in the particular form of award agreement required to be signed with respect to each award. The Company cannot guarantee
that any equity granted to you will ultimately have any particular value. 

			
	 Anshooman Aga
 August 3, 2022

 Page
 2

	  	

  

 You may be eligible for future equity awards, in accordance with the terms of Vontier Corporation 2020 Stock
Incentive program, at a target award value commensurate with your level. This does not guarantee awards will be granted in the future at this or different amount. Your participation and the specific terms of your participation in the Vontier
Corporation 2020 Stock Incentive Plan will be determined in the sole discretion of the Compensation and Management Development Committee of the Board of Directors. 

Special One Time Equity Award: A recommendation will be made to the Board or the Compensation Committee or their designee (as applicable)
of Vontier to grant you a one-time special equity award with a target value of $1,500,000. The grant will be made during the next scheduled quarterly grant when such grants are made. This grant will
be made in the form of RSUs with two-year ratable vesting. 
 Benefits: You will be eligible to participate
in any employee benefit plans that Vontier has adopted or may adopt, maintain, or contribute to for the benefit of its regular exempt employees generally, subject to satisfying any applicable eligibility requirements. You will be eligible to
participate in the Vontier 401(k) retirement plan subject to the applicable plan documents. 
 Other Compensation Elements: Starting in
2022, you will be eligible for an annual cash stipend of $10,000 per year to be applied for financial services and counseling. 
 Relocation: The
Company is pleased to provide relocation benefits through a third-party relocation services company. Once you have communicated to the Company that you have signed and returned both this offer letter and the enclosed Relocation Repayment Agreement,
the relocation services representative will contact you to explain the services, assistance and benefits provided under the Relocation Policy for Vontier and its Affiliates, coordinate your relocation coverage and answer any questions you may have.

 Vacation: You will be eligible for four (4) weeks of vacation annually, pro-rated based off your
start date. Your vacation allotment will accrue per pay period. In all other respects, your vacation benefits will be subject to Vontier’s policy as it may be amended from time to time. 

Floating Holidays: In addition to the Vontier paid holidays, you will be eligible for three (3) floating holidays annually pursuant to the Vontier
holiday policy, as it may be amended from time to time. Your initial floating holidays will be prorated based on the quarter in which you join Vontier. 

EDIP Program: You will be eligible to participate in the Executive Deferred Incentive Program (“EDIP”), an exclusive, non-qualified executive benefit designed to supplement retirement benefits that otherwise are limited by IRS regulations; and provide the opportunity for you to defer taxation on a portion of your current income
(base salary or bonus or both). You will be provided additional details prior to your first eligibility to participate in the program. 
 At-Will Employment: Nothing in this offer letter shall be construed as any agreement, express or implied, to employ you for any stated term. Your employment with the Company will be on an at-will basis, which means that either you or the Company can terminate the employment relationship at any time and for any reason (or no reason), with or without notice. 

Conditions of Employment Offer: This offer of employment is expressly conditioned on your being legally authorized to work in the U.S. and your
execution and return of the following documents no later than the date stated in the acknowledgment section below: 

  
 

 

			
	 Anshooman Aga
 August 3, 2022

 Page
 3

	  	

  

	 	•	 	 Agreement Regarding Competition and the Protection of Proprietary Interests and the terms contained therein

  

	 	•	 	 Certification of the Vontier Corporation Code of Conduct 

 

	 	•	 	 Certification of Compliance of Obligations to Prior Employers 

 

	 	•	 	 Relocation Repayment Agreement 

 

	 	•	 	 Sign-on repayment agreement 

We anticipate that you will make a very strong contribution to the success of the Company and believe this is an excellent professional opportunity for you.
We look forward to the opportunity to work with you as we pursue our very aggressive goals. 
 Sincerely yours, 

/s/ Amy Plasha 8/9/2022 
 Amy L. Plasha 

Chief Human Resources Officer 
 Acknowledgement

 Please acknowledge that you have read, understood and accept this offer of at will employment by signing and returning it to me, along with the
above-referenced signed documents no later than August 10, 2022. 
  

	
	 /s/ Anshooman Aga

	Signature
	
	 8/9/2022

	Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00347-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00347-of-00352.parquet"}]]